Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

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 Capital Markets

<a href="https://www.smartkarma.com/entities/dingdong-maicia" target="_blank" data-smartkarma-citation="entities:33461:1" rel="noopener">Dingdong Maicia (DDL US)</a>, a groceries on-demand e-commerce company, aims to raise up to US$500m via a US listing. It is backed by Tiger Global, General Atlantic and Softbank.Dingdong Maicai (DM) is an on-demand e-commerce company in China which provides users and households with fresh produce, meat and seafood and other daily necessities via its self-operated frontline fulfillment grid. As of 1Q21, DM had 6.9m monthly transacting users, who had placed 69.7m orders during the quarter. Its FY20 gross merchandise value was RMB13bn, representing a 10%+ market share for the on-demand ecommerce fresh groceries and daily necessities market.Its core product category is fresh groceries and it procures most of its products directly and offers to deliver them to customers within 30mins of having received an order.

Dingdong Maicia (DDL US), a groceries on-demand e-commerce company, aims to raise up to US$500m via a US listing. It is backed by Tiger Global, General Atlantic and Softbank.Dingdong Maicai (DM) is an on-demand e-commerce company in China which provides users and households with fresh produce, meat and seafood and other daily necessities via its self-operated frontline fulfillment grid. As of 1Q21, DM had 6.9m monthly transacting users, who had placed 69.7m orders during the quarter. Its FY20 gross merchandise value was RMB13bn, representing a 10%+ market share for the on-demand ecommerce fresh groceries and daily necessities market.Its core product category is fresh groceries and it procures most of its products directly and offers to deliver them to customers within 30mins of having received an order.

Dingdong Maicai Pre-IPO - Increasing Market Share, Fast Growth but No Signs of Profit

Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Tracking Traffic

Focusing on Asian logistics, transportation, and travel companies

Equity Bottom-Up

Chinese super app <a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a> reported Q320 results earlier this week. Total revenue increased by 29% YoY in the period, but core Operating Profit declined by around 23% YoY, mainly due to growing losses in Meituan's New Initiatives segment. Meanwhile, Meituan's largest operating segment, Food Delivery, reported a 33% YoY jump in revenue, driven in part by a 61% increase in advertising and other revenue. However, margins on actual food delivery activity fell sharply compared to both Q319 and Q220. The reasons for the sharp dip in food delivery margins in Q320 are still unclear to us, but this crucial source of profits deserves close attention from investors, in our view. We also worry investors may be growing impatient with outsized losses in the New Initiatives segment.

Chinese super app Meituan (3690 HK) reported Q320 results earlier this week. Total revenue increased by 29% YoY in the period, but core Operating Profit declined by around 23% YoY, mainly due to growing losses in Meituan's New Initiatives segment. Meanwhile, Meituan's largest operating segment, Food Delivery, reported a 33% YoY jump in revenue, driven in part by a 61% increase in advertising and other revenue. However, margins on actual food delivery activity fell sharply compared to both Q319 and Q220. The reasons for the sharp dip in food delivery margins in Q320 are still unclear to us, but this crucial source of profits deserves close attention from investors, in our view. We also worry investors may be growing impatient with outsized losses in the New Initiatives segment.

Meituan: 'Delivery Margin' Dipped in Q3 | How Patient Will Investors Be with 'New Initiatives'?

US-based online food delivery company <a href="https://www.smartkarma.com/entities/doordash-inc" target="_blank" data-smartkarma-citation="entities:28881:1" rel="noopener">DoorDash Inc (0881510D US)</a> has filed to go public. In this note we describe the company's operations and compare its scale and efficiency to other online food delivery companies in the US and around the globe. 
Intensely focused and increasingly dominant in its home market, DoorDash has made admirable progress toward profitability by focusing on smaller cities and suburban areas in the US. This approach is the opposite of conventional wisdom, which suggests that only a handful of large US cities can generate the order density necessary to make online food delivery economically viable. 
DoorDash is seeking growth from new market segments adjacent to its core operation even as it faces the threat of a large, disruptive new entrant in US online food delivery. Last valued at US$16 bn in June 2020, we believe DoorDash's unorthodox approach deserves to be thoroughly understood by investors. We will write more about DoorDash as the IPO process moves forward.

US-based online food delivery company DoorDash Inc (0881510D US) has filed to go public. In this note we describe the company's operations and compare its scale and efficiency to other online food delivery companies in the US and around the globe. 
Intensely focused and increasingly dominant in its home market, DoorDash has made admirable progress toward profitability by focusing on smaller cities and suburban areas in the US. This approach is the opposite of conventional wisdom, which suggests that only a handful of large US cities can generate the order density necessary to make online food delivery economically viable. 
DoorDash is seeking growth from new market segments adjacent to its core operation even as it faces the threat of a large, disruptive new entrant in US online food delivery. Last valued at US$16 bn in June 2020, we believe DoorDash's unorthodox approach deserves to be thoroughly understood by investors. We will write more about DoorDash as the IPO process moves forward.

DoorDash IPO Context: What It Is & How It Compares to Online Food Delivery Universe

Quantitative Equity Analyst, DMA

Charlotte van Tiddens, CFA

Quantitative Equity Analyst

Technology-First Company

DMA is a technology-first company that provides an end-to-end SaaS solution to institutional investors. DMA enables regulated entities like asset managers, wealth managers, investment managers and financial advisors to connect their front and back office, break silos and reduce headcount.

Event-Driven

<ul>
<li>Yesterday morning, Prosus announced the acquisition of Just Eat Takeaway for $4.3bn.</li>
<li>Naspers and Prosus sold off sharply on the news, ending the day down 7.7% and 7.8%, respectively.</li>
<li>Naspers’ discount widened by 2.8 percentage points to 44.2% and Prosus’ discount widened by 3.1 percentage points to 39.8%.</li>
</ul>


Yesterday morning, Prosus announced the acquisition of Just Eat Takeaway for $4.3bn.
Naspers and Prosus sold off sharply on the news, ending the day down 7.7% and 7.8%, respectively.
Naspers’ discount widened by 2.8 percentage points to 44.2% and Prosus’ discount widened by 3.1 percentage points to 39.8%.


Naspers & Prosus Sell off on JET Acquisition, Discounts Oversold Lifting Buyback Accretion

Netherlands

Just Eat Takeaway.com is a Dutch multinational online food ordering and delivery company that operates a global marketplace connecting consumers with restaurants and retail partners. The company facilitates food, grocery, and retail item deliveries through its apps and websites in multiple countries. It is headquartered in Amsterdam, the Netherlands, and was founded in 2000.

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Just Eat Takeaway.com (JET LN)

Meituan: 'Delivery Margin' Dipped in Q3 | How Patient Will Investors Be with 'New Initiatives'?

Meituan posted strong top-line growth in Q320, but core profitability dipped. We are concerned about 'delivery margin' and wonder how long...

Tracking Traffic

DoorDash IPO Context: What It Is & How It Compares to Online Food Delivery Universe

US-based on-demand food delivery company DoorDash plans to list soon. In this note we show investors how DoorDash differs from some of its peers in...

Tracking Traffic

Naspers & Prosus Sell off on JET Acquisition, Discounts Oversold Lifting Buyback Accretion

Naspers and Prosus sold off sharply on the news of the JET acquisition yesterday morning. Both discounts widened, following a notable recovery...

DMA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Dingdong Maicai Pre-IPO - Increasing Market Share, Fast Growth but No Signs of Profit

Dingdong Maicia (DDL US), a groceries on-demand e-commerce company, aims to raise up to US$500m via a US listing. It is backed by Tiger Global,...

Sumeet Singh

Meituan: 'Delivery Margin' Dipped in Q3 | How Patient Will Investors Be with 'New Initiatives'?

Meituan posted strong top-line growth in Q320, but core profitability dipped. We are concerned about 'delivery margin' and wonder how long...

Tracking Traffic

DoorDash IPO Context: What It Is & How It Compares to Online Food Delivery Universe

US-based on-demand food delivery company DoorDash plans to list soon. In this note we show investors how DoorDash differs from some of its peers in...

Tracking Traffic

Naspers & Prosus Sell off on JET Acquisition, Discounts Oversold Lifting Buyback Accretion

Naspers and Prosus sold off sharply on the news of the JET acquisition yesterday morning. Both discounts widened, following a notable recovery...

DMA