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

Belle Fashion Group / Equity Capital Markets

<ul>
<li>Belle Fashion (BF) aims to raise up to US$1bn in its Hong Kong listing. The company recently refiled its application proof after a gap of two years.</li>
<li>As per F&amp;S, it was the largest player in China’s fashion footwear market with a 12.3% market share, based on 2022 retail sales.</li>
<li>We have looked at the company’s past performance based on its earlier filings in 2022. In this note, we talk about the updates from its recent filings.</li>
</ul>


Belle Fashion (BF) aims to raise up to US$1bn in its Hong Kong listing. The company recently refiled its application proof after a gap of two years.
As per F&amp;S, it was the largest player in China’s fashion footwear market with a 12.3% market share, based on 2022 retail sales.
We have looked at the company’s past performance based on its earlier filings in 2022. In this note, we talk about the updates from its recent filings.


European Event-Driven Analyst

Jesus Rodriguez Aguilar

Event-Driven

<ul>
<li>The Della Valles and LVMH-backed L Catterton announced an agreement to launch a voluntary tender offer to buy 36% of Italian luxury group <a href="https://www.smartkarma.com/entities/tod-s-spa" target="_blank" data-smartkarma-citation="entities:21231:1" rel="noopener">Tod's SpA (TOD IM)</a> at €43/share to take it private.</li>
<li>In spite of the 31% premium to the 3-month VWAP, and the loss of brand equity by Tod's the offer seems cheap on a multiples basis, considering turnaround potential.</li>
<li>Considering a 95% squeeze-out threshold, 80.4% of the float must tender, which is high. A sweetening may be needed, although the offeror threatens with a merger with itself to delist.</li>
</ul>


The Della Valles and LVMH-backed L Catterton announced an agreement to launch a voluntary tender offer to buy 36% of Italian luxury group Tod's SpA (TOD IM) at €43/share to take it private.
In spite of the 31% premium to the 3-month VWAP, and the loss of brand equity by Tod's the offer seems cheap on a multiples basis, considering turnaround potential.
Considering a 95% squeeze-out threshold, 80.4% of the float must tender, which is high. A sweetening may be needed, although the offeror threatens with a merger with itself to delist.


Analyst

Steve

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shiseido-co-ltd" target="_blank" data-smartkarma-citation="entities:5718:1" rel="noopener">Shiseido Company (4911 JP)</a> relies heavily on Japan and China, each making up over one quarter of sales. </li>
<li>The long thesis is simple - I expect improvement in both regions in the near future, and the valuation is very attractive.</li>
<li>Blackstone just announced a potential bid for <a href="https://www.smartkarma.com/entities/l-occitane-international-sa" target="_blank" data-smartkarma-citation="entities:6772:1" rel="noopener">L'Occitane (973 HK)</a>, which I have written extensively about.  We could potentially see a pickup in interest in the sector.</li>
</ul>



Shiseido Company (4911 JP) relies heavily on Japan and China, each making up over one quarter of sales. 
The long thesis is simple - I expect improvement in both regions in the near future, and the valuation is very attractive.
Blackstone just announced a potential bid for L'Occitane (973 HK), which I have written extensively about.  We could potentially see a pickup in interest in the sector.


Shiseido (4911 JP):  This Fallen Angel Is Fixable

Equity Long-Short

Mo Aziz

China Tourism Group Duty Free Corp Ltd / Equity Bottom-Up

China Tourism Group Duty Free Corp Ltd (601888 CH)

<ul>
<li>European luxury goods maker enjoyed its best week in the past 52 weeks, spurred by better-than-expected results by LVMH, the industry leader and widely viewed as the bellwether  </li>
<li>China's market was cited as resilient and very strong in certain categories, defying the general market perception that Chinese demand is soft</li>
<li>The key European luxury goods share price has risen by an average of 8.2% YTD, China Tourism Group share price performance has lagged. Good buying opportunity    </li>
</ul>


European luxury goods maker enjoyed its best week in the past 52 weeks, spurred by better-than-expected results by LVMH, the industry leader and widely viewed as the bellwether  
China's market was cited as resilient and very strong in certain categories, defying the general market perception that Chinese demand is soft
The key European luxury goods share price has risen by an average of 8.2% YTD, China Tourism Group share price performance has lagged. Good buying opportunity    


LVMH & Richemont Said Chinese Demand for Luxury Goods Is Strong; POSITIVE for China Tourism Group

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

LVMH Moet Hennessy Louis Vuitton SE / Equity Bottom-Up

LVMH Moet Hennessy Louis Vuitton SE (MC FP)

<ul>
<li>In this insight, we provide the income statement comparisons of the eight largest global luxury brand Korea operations including Louis Vuitton Korea, Prada Korea, Ralph Lauren Korea, and Moncler Korea.</li>
<li>In 2022, Korea spent $16.8 billion in luxury goods, representing per capita consumption of $325 per person, surpassing the United States ($280 per person) and China ($55 per person). </li>
<li>Luxury brand spending in Korea is often a leading indicator of global luxury brand spending. Luxury brand spending in Korea has been weak this year and this continued in 3Q23.</li>
</ul>


In this insight, we provide the income statement comparisons of the eight largest global luxury brand Korea operations including Louis Vuitton Korea, Prada Korea, Ralph Lauren Korea, and Moncler Korea.
In 2022, Korea spent $16.8 billion in luxury goods, representing per capita consumption of $325 per person, surpassing the United States ($280 per person) and China ($55 per person). 
Luxury brand spending in Korea is often a leading indicator of global luxury brand spending. Luxury brand spending in Korea has been weak this year and this continued in 3Q23.


Income Statement Analysis of Global Luxury Brand Korea Operations and Luxury Brand Spending Slowdown

France

LVMH Moet Hennessy Louis Vuitton SE is a diversified luxury goods group. The Company produces and sells wine, cognac, perfumes, cosmetics, luggage, and watches and jewelry.

Price Gauge
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LVMH Moet Hennessy Louis Vuitton SE (MC FP)

Belle Fashion Pre-IPO - Refiling Updates

Belle Fashion (BF) aims to raise up to US$1bn in its Hong Kong listing. The company recently refiled its application proof after a gap of two years.

Sumeet Singh

Second Time Around

The Della Valles and LVMH-backed L Catterton announced an agreement to launch a voluntary tender offer to buy 36% of Italian luxury group Tod's at...

Jesus Rodriguez Aguilar

Shiseido (4911 JP): This Fallen Angel Is Fixable

Shiseido heavily relies on Japan and China for sales, and with expected improvements in these regions, the company's attractive valuation makes it...

Steve

LVMH & Richemont Said Chinese Demand for Luxury Goods Is Strong; POSITIVE for China Tourism Group

European luxury goods producers performing well and attributed to Chinese consumers. China Tourism Group is the primary beneficiary of Chinese...

Mo Aziz

Income Statement Analysis of Global Luxury Brand Korea Operations and Luxury Brand Spending Slowdown

In this insight, we provide income statement comparisons of the eight largest global luxury brand Korea operations including Louis Vuitton Korea,...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Belle Fashion Pre-IPO - Refiling Updates

Belle Fashion (BF) aims to raise up to US$1bn in its Hong Kong listing. The company recently refiled its application proof after a gap of two years.

Sumeet Singh

Second Time Around

The Della Valles and LVMH-backed L Catterton announced an agreement to launch a voluntary tender offer to buy 36% of Italian luxury group Tod's at...

Jesus Rodriguez Aguilar

Shiseido (4911 JP): This Fallen Angel Is Fixable

​Shiseido heavily relies on Japan and China for sales, and with expected improvements in these regions, the company's attractive valuation makes it...

Steve

LVMH & Richemont Said Chinese Demand for Luxury Goods Is Strong; POSITIVE for China Tourism Group

​European luxury goods producers performing well and attributed to Chinese consumers. China Tourism Group is the primary beneficiary of Chinese...

Mo Aziz

Income Statement Analysis of Global Luxury Brand Korea Operations and Luxury Brand Spending Slowdown

In this insight, we provide income statement comparisons of the eight largest global luxury brand Korea operations including Louis Vuitton Korea,...

Douglas Kim

Shiseido heavily relies on Japan and China for sales, and with expected improvements in these regions, the company's attractive valuation makes it...

European luxury goods producers performing well and attributed to Chinese consumers. China Tourism Group is the primary beneficiary of Chinese...