Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Bottom-Up

<ul>
<li>The main competitor, Huawei Group, decided to sell one of its two smartphone brands.</li>
<li>Xiaomi took all the smartphone market share that Huawei Group left behind.</li>
<li>Xiaomi’s revenue growth rate jumped to 35% yoy in 3Q20 versus 3% yoy in 2Q20.</li>
<li>However, so far, we believe the company is slightly overvalued.</li>
</ul>


The main competitor, Huawei Group, decided to sell one of its two smartphone brands.
Xiaomi took all the smartphone market share that Huawei Group left behind.
Xiaomi’s revenue growth rate jumped to 35% yoy in 3Q20 versus 3% yoy in 2Q20.
However, so far, we believe the company is slightly overvalued.


Xiaomi (1810 HK): Taking Advantage of Huawei’s Sale of Smartphone Brand, But Overvalued

APAC IPOs & Placements

Zhen Zhou, Toh

Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/vesync" target="_blank" data-smartkarma-citation="entities:31067:1" rel="noopener">Vesync (2148 HK)</a> is looking to raise up to US$200mn in its Hong Kong IPO.</p><p>The company sells small home appliances mainly through Amazon’s e-commerce marketplace and its products range from home environment appliances to health monitoring devices. The company derived most of its revenue from North America</p><p>Overall, growth of Vesync has been strong as the company has adapted well by selling products that have been in demand during the California fires in 2018 - 2019 and COVID-19. Its vendor central program allowed the company to scale up quickly and sell in bulk to Amazon without having to incur fulfilment costs unlike products sold via seller central program.</p><p>In this note, we will look at the company’s business, revenue drivers, deal dynamics, assumptions, and share our thoughts on valuation.</p>

Vesync (2148 HK) is looking to raise up to US$200mn in its Hong Kong IPO.The company sells small home appliances mainly through Amazon’s e-commerce marketplace and its products range from home environment appliances to health monitoring devices. The company derived most of its revenue from North AmericaOverall, growth of Vesync has been strong as the company has adapted well by selling products that have been in demand during the California fires in 2018 - 2019 and COVID-19. Its vendor central program allowed the company to scale up quickly and sell in bulk to Amazon without having to incur fulfilment costs unlike products sold via seller central program.In this note, we will look at the company’s business, revenue drivers, deal dynamics, assumptions, and share our thoughts on valuation.

Vesync IPO - The Tale of Valuation Dichotomy

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

JS Global Lifestyle / Equity Capital Markets

<div>
<p><a href="https://www.smartkarma.com/entities/js-global-lifestyle-co-ltd" target="_blank" data-smartkarma-citation="entities:28155:1" rel="noopener">JS Global Lifestyle (1691 HK)</a> along with CDH is looking to raise upto US$167m in a mix of a top-up and a sell down by CDH. </p>
<p>The company was listed in Dec 2019 and my colleague, <a href="https://www.smartkarma.com/profiles/zhen-zhou-toh" target="_blank" data-smartkarma-citation="accounts:673" rel="noopener">Zhen Zhou, Toh,</a> covered the IPO extensively, links to his insight are below. The lock-up on the company and its shareholders expired in Jun 2020 and was covered in <a href="https://www.smartkarma.com/insights/js-global-lifestyle-js-lock-up-expiry-potential-sellers-at-a-fair-valuation" target="_blank" rel="noopener">JS Global Lifestyle (JS 环球生活) Lock-Up Expiry - Potential Sellers at a Fair Valuation.</a></p>
<p>With CDH starting its exit, there will be a whole lot more shares to come. In this insight, I'll run the deal through our ECM framework and talk about the deal dynamics.</p>
</div><p>Links to our previous coverage:</p><div><ul style="list-style-type: disc;">
<li>
<a href="https://www.smartkarma.com/insights/js-global-lifestyle-js-early-thoughts-declaring-us-470m-dividend-before-ipo" target="_blank" data-smartkarma-citation="insights:30871" rel="noopener">JS Global (JS 环球生活) Early Thoughts - Declaring US$470m Dividend Before IPO</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/js-global-lifestyle-js-quick-note-questions-about-corporate-structure-and-reorganization" target="_blank" data-smartkarma-citation="insights:30952" rel="noopener">JS Global (JS 环球生活) Quick Note - Questions About Corporate Structure and Reorganization</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/js-global-lifestyle-js-pre-ipo-review-sometimes-two-negatives-don-t-make-a-positive" target="_blank" data-smartkarma-citation="insights:32701" rel="noopener">JS Global (JS 环球生活) Pre-IPO Review - Sometimes, Two Negatives Don't Make a Positive</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/js-global-js-phip-updates-thoughts-on-valuation-paid-a-premium-for-a-good-brand" target="_blank" data-smartkarma-citation="insights:32870" rel="noopener">JS Global (JS 环球生活) PHIP Updates &amp; Thoughts on Valuation - Paid a Premium for a Good Brand</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/js-global-js-ipo-review-limited-upside-from-the-bottom-end" target="_blank" data-smartkarma-citation="insights:33293" rel="noopener">JS Global (JS 环球生活) IPO Review - Limited Upside from the Bottom-End</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/js-global-js-updates-before-ipo-relaunch-going-at-it-again" target="_blank" data-smartkarma-citation="insights:35102" rel="noopener">JS Global (JS 环球生活) Updates Before IPO Relaunch - Going at It Again</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/js-global-js-trading-low-adjusted-free-float-tightly-held-by-top-shareholders" target="_blank" data-smartkarma-citation="insights:35290" rel="noopener">JS Global (JS 环球生活) Trading - Low Adjusted Free-Float Tightly Held by Top Shareholders</a> </li>
</ul></div><div><p></p></div>


JS Global Lifestyle (1691 HK) along with CDH is looking to raise upto US$167m in a mix of a top-up and a sell down by CDH. 
The company was listed in Dec 2019 and my colleague, Zhen Zhou, Toh, covered the IPO extensively, links to his insight are below. The lock-up on the company and its shareholders expired in Jun 2020 and was covered in JS Global Lifestyle (JS 环球生活) Lock-Up Expiry - Potential Sellers at a Fair Valuation.
With CDH starting its exit, there will be a whole lot more shares to come. In this insight, I'll run the deal through our ECM framework and talk about the deal dynamics.
Links to our previous coverage:

JS Global (JS 环球生活) Early Thoughts - Declaring US$470m Dividend Before IPO 

JS Global (JS 环球生活) Quick Note - Questions About Corporate Structure and Reorganization 

JS Global (JS 环球生活) Pre-IPO Review - Sometimes, Two Negatives Don't Make a Positive 

JS Global (JS 环球生活) PHIP Updates &amp; Thoughts on Valuation - Paid a Premium for a Good Brand 

JS Global (JS 环球生活) IPO Review - Limited Upside from the Bottom-End 

JS Global (JS 环球生活) Updates Before IPO Relaunch - Going at It Again 

JS Global (JS 环球生活) Trading - Low Adjusted Free-Float Tightly Held by Top Shareholders 


JS Global Lifestyle (JS 环球生活) - Big Large Share Price Run-Up, Large Sell Down Overhang

<p><a href="https://www.smartkarma.com/entities/js-global-lifestyle-co-ltd" target="_blank" data-smartkarma-citation="entities:28155:1" rel="noopener">JS Global Lifestyle (1691 HK)</a>'s IPO lock-up expires on the 18th of June, 2020. We have covered the IPO extensively in:</p>
<ul>
<li>
<a href="https://www.smartkarma.com/insights/js-global-lifestyle-js-early-thoughts-declaring-us-470m-dividend-before-ipo" target="_blank" data-smartkarma-citation="insights:30871" rel="noopener">JS Global (JS 环球生活) Early Thoughts - Declaring US$470m Dividend Before IPO</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/js-global-lifestyle-js-quick-note-questions-about-corporate-structure-and-reorganization" target="_blank" data-smartkarma-citation="insights:30952" rel="noopener">JS Global (JS 环球生活) Quick Note - Questions About Corporate Structure and Reorganization</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/js-global-lifestyle-js-pre-ipo-review-sometimes-two-negatives-don-t-make-a-positive" target="_blank" data-smartkarma-citation="insights:32701" rel="noopener">JS Global (JS 环球生活) Pre-IPO Review - Sometimes, Two Negatives Don't Make a Positive</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/js-global-js-phip-updates-thoughts-on-valuation-paid-a-premium-for-a-good-brand" target="_blank" data-smartkarma-citation="insights:32870" rel="noopener">JS Global (JS 环球生活) PHIP Updates &amp; Thoughts on Valuation - Paid a Premium for a Good Brand</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/js-global-js-ipo-review-limited-upside-from-the-bottom-end" target="_blank" data-smartkarma-citation="insights:33293" rel="noopener">JS Global (JS 环球生活) IPO Review - Limited Upside from the Bottom-End</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/js-global-js-updates-before-ipo-relaunch-going-at-it-again" target="_blank" data-smartkarma-citation="insights:35102" rel="noopener">JS Global (JS 环球生活) Updates Before IPO Relaunch - Going at It Again</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/js-global-js-trading-low-adjusted-free-float-tightly-held-by-top-shareholders" target="_blank" data-smartkarma-citation="insights:35290" rel="noopener">JS Global (JS 环球生活) Trading - Low Adjusted Free-Float Tightly Held by Top Shareholders</a> </li>
</ul>
<p>In this note, we will look at the potential sellers upon lock-up expiry and updates of how the company has performed since listing.</p>

JS Global Lifestyle (1691 HK)'s IPO lock-up expires on the 18th of June, 2020. We have covered the IPO extensively in:


JS Global (JS 环球生活) Early Thoughts - Declaring US$470m Dividend Before IPO 

JS Global (JS 环球生活) Quick Note - Questions About Corporate Structure and Reorganization 

JS Global (JS 环球生活) Pre-IPO Review - Sometimes, Two Negatives Don't Make a Positive 

JS Global (JS 环球生活) PHIP Updates &amp; Thoughts on Valuation - Paid a Premium for a Good Brand 

JS Global (JS 环球生活) IPO Review - Limited Upside from the Bottom-End 

JS Global (JS 环球生活) Updates Before IPO Relaunch - Going at It Again 

JS Global (JS 环球生活) Trading - Low Adjusted Free-Float Tightly Held by Top Shareholders 

In this note, we will look at the potential sellers upon lock-up expiry and updates of how the company has performed since listing.

JS Global Lifestyle (JS 环球生活) Lock-Up Expiry - Potential Sellers at a Fair Valuation

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Index Rebalance

<p>After the market close on Feb 21st, Friday, Hang Seng announced the results of the index review for the 4Q2019. In our previous note (link<a href="https://www.smartkarma.com/insights/trade-idea-buy-the-candidates-of-hsci-review-and-hk-connect" target="_blank" rel="noopener"> here</a>), we recommend long a basket of stocks that have the potential to be included in the HSCI index, which will be followed by the inclusion into the Hong Kong Connect scheme in a matter of a few weeks' time. Hong Kong Connect Scheme allows mainland investors to purchase Chinese companies listed in Hong Kong without much capital control. We will provide an update of the list of stocks to be included in the HSCI and the trade idea.</p>

After the market close on Feb 21st, Friday, Hang Seng announced the results of the index review for the 4Q2019. In our previous note (link here), we recommend long a basket of stocks that have the potential to be included in the HSCI index, which will be followed by the inclusion into the Hong Kong Connect scheme in a matter of a few weeks' time. Hong Kong Connect Scheme allows mainland investors to purchase Chinese companies listed in Hong Kong without much capital control. We will provide an update of the list of stocks to be included in the HSCI and the trade idea.

Trade Idea (Update): What's Next After HSCI Review Announcement

Hong Kong

JS Global Lifestyle Company Limited designs, manufactures, and sells small household appliances globally, including cleaning, food preparation, and cooking products under brands like Joyoung, Shark, and Ninja. The company was founded in 1994 and is headquartered in Hong Kong.

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JS Global Lifestyle (1691 HK)

Xiaomi (1810 HK): Taking Advantage of Huawei’s Sale of Smartphone Brand, But Overvalued

The main competitor, Huawei Group, decided to sell one of its two smartphone brands. Xiaomi took all the smartphone market share that Huawei Group...

Ming Lu

Vesync IPO - The Tale of Valuation Dichotomy

Vesync sells small home appliances mainly through Amazon’s e-commerce marketplace and its products range from home environment appliances to health...

Zhen Zhou, Toh

JS Global Lifestyle (JS 环球生活) Lock-Up Expiry - Potential Sellers at a Fair Valuation

JS Global Lifestyle (1691 HK)'s IPO lock-up expires on the 18th of June, 2020. We have covered the IPO extensively in: JS Global (JS 环球生活) Early...

Zhen Zhou, Toh

Trade Idea (Update): What's Next After HSCI Review Announcement

After the market close on Feb 21st, Friday, Hang Seng announced the results of the index review for the 4Q2019. In our previous note (link here),...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Xiaomi (1810 HK): Taking Advantage of Huawei’s Sale of Smartphone Brand, But Overvalued

The main competitor, Huawei Group, decided to sell one of its two smartphone brands. Xiaomi took all the smartphone market share that Huawei Group...

Ming Lu

Vesync IPO - The Tale of Valuation Dichotomy

Vesync sells small home appliances mainly through Amazon’s e-commerce marketplace and its products range from home environment appliances to health...

Zhen Zhou, Toh

JS Global Lifestyle (JS 环球生活) - Big Large Share Price Run-Up, Large Sell Down Overhang

JS Global Lifestyle (JS 环球生活) Lock-Up Expiry - Potential Sellers at a Fair Valuation JS Global Lifestyle (1691 HK)'s IPO lock-up expires on the...

Sumeet Singh

JS Global Lifestyle (JS 环球生活) Lock-Up Expiry - Potential Sellers at a Fair Valuation

JS Global Lifestyle (1691 HK)'s IPO lock-up expires on the 18th of June, 2020. We have covered the IPO extensively in: JS Global (JS 环球生活) Early...

Zhen Zhou, Toh

Trade Idea (Update): What's Next After HSCI Review Announcement

After the market close on Feb 21st, Friday, Hang Seng announced the results of the index review for the 4Q2019. In our previous note (link here),...

Ke Yan, CFA, FRM