Equity Analyst, LightStream Research

Shifara Samsudeen, FCMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/ane-logistics" target="_blank" data-smartkarma-citation="entities:34119:1" rel="noopener">ANE Logistics (1292621D CH)</a> has announced the terms for its IPO where it plans to sell 80.2m shares (6.9% of the total outstanding shares) at an indicative IPO price range of HK$13.88-16.88 per share. At the midpoint of the IPO price range of HK$15.38 per share, ANE will raise net proceeds of HK$1,124.1m (US$114.5m) at a market capitalisation of HK$17.9bn and a post-money enterprise value of HK$16.3bn. Bloomberg previously reported that the company plans to raise net proceeds of US$500m through the IPO, however, the offer was significantly downsized.</p><p>The company plans to use approx. 40.0% of the net IPO proceeds on building, upgrading and potential acquisitions of 5-10 key transit hubs in strategic locations over the next 24-36 months. ANE plans to allocate 30.0% of the net IPO proceeds for investing in its line-haul truck fleet and another 20% for technology innovations.</p><p>The company has entered into cornerstone investment agreement with Harvest International Premium Value Fund SPC for an aggregate of US$12.5m (approx. HK$97.23m) which represents about 7.88% of the offer shares at the midpoint of the IPO price range.</p>

ANE Logistics (1292621D CH) has announced the terms for its IPO where it plans to sell 80.2m shares (6.9% of the total outstanding shares) at an indicative IPO price range of HK$13.88-16.88 per share. At the midpoint of the IPO price range of HK$15.38 per share, ANE will raise net proceeds of HK$1,124.1m (US$114.5m) at a market capitalisation of HK$17.9bn and a post-money enterprise value of HK$16.3bn. Bloomberg previously reported that the company plans to raise net proceeds of US$500m through the IPO, however, the offer was significantly downsized.The company plans to use approx. 40.0% of the net IPO proceeds on building, upgrading and potential acquisitions of 5-10 key transit hubs in strategic locations over the next 24-36 months. ANE plans to allocate 30.0% of the net IPO proceeds for investing in its line-haul truck fleet and another 20% for technology innovations.The company has entered into cornerstone investment agreement with Harvest International Premium Value Fund SPC for an aggregate of US$12.5m (approx. HK$97.23m) which represents about 7.88% of the offer shares at the midpoint of the IPO price range.

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<div>
<p><a href="https://www.smartkarma.com/entities/ane-logistics" target="_blank" data-smartkarma-citation="entities:34119:1" rel="noopener">ANE Logistics (1292621D CH)</a> operates a leading express freight network in China’s less-than-truckload (LTL) market. ANE operated the largest express freight network in China as measured by annual total freight volume in each of 2017, 2018, 2019 and 2020, according to iResearch. ANE’s shareholders include Centurium, Carlyle, CDH, CPE, NWS, Ping An, Goldman Sachs and Yili.</p>
<p>At the proposed IPO price range of HK$13.88-16.88 per share, ANE will have a market cap of HK$16,137-19,625 million ($2.1-2.5 billion). At the mid-point of the IPO price range, the net proceeds are HK$1,124.1 million ($144 million), materially below the rumoured target of $500 million.</p>
<p>A single cornerstone investor, Harvest Prosperity SP, will purchase $12.5 million worth of the offer shares (7.88% of the offer shares at the mid-point of the IPO price range). </p>
</div><div><p>In <a href="https://www.smartkarma.com/insights/ane-logistics-ipo-initiation-home-delivery" target="_blank" data-smartkarma-citation="insights:57807" rel="noopener">ANE Logistics IPO Initiation: Home Delivery</a>, we stated that ANE is a play on China’s LTL market which offers substantial opportunities for market consolidation as the top 10 LTL operators in China had a market share of 5.7% by shipper spend in 2020, according to iResearch. As the largest (by freight volume), fastest-growing and most profitable player, ANE is well-positioned to be a market consolidator. We concluded that ANE’s fundamentals are solid. </p></div><div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/ane-ipo-the-freight-debate" target="_blank" data-smartkarma-citation="insights:57957" rel="noopener">ANE IPO: The Freight Debate</a>, we stated that the PHIP continues to support our view that the ANE IPO is worth a look for investors willing to brave the current weak sentiment on HKEx IPOs. Our valuation analysis, suggests that the IPO price range is attractive particularly at the low-end.</p></div></div></div>


ANE Logistics (1292621D CH) operates a leading express freight network in China’s less-than-truckload (LTL) market. ANE operated the largest express freight network in China as measured by annual total freight volume in each of 2017, 2018, 2019 and 2020, according to iResearch. ANE’s shareholders include Centurium, Carlyle, CDH, CPE, NWS, Ping An, Goldman Sachs and Yili.
At the proposed IPO price range of HK$13.88-16.88 per share, ANE will have a market cap of HK$16,137-19,625 million ($2.1-2.5 billion). At the mid-point of the IPO price range, the net proceeds are HK$1,124.1 million ($144 million), materially below the rumoured target of $500 million.
A single cornerstone investor, Harvest Prosperity SP, will purchase $12.5 million worth of the offer shares (7.88% of the offer shares at the mid-point of the IPO price range). 
In ANE Logistics IPO Initiation: Home Delivery, we stated that ANE is a play on China’s LTL market which offers substantial opportunities for market consolidation as the top 10 LTL operators in China had a market share of 5.7% by shipper spend in 2020, according to iResearch. As the largest (by freight volume), fastest-growing and most profitable player, ANE is well-positioned to be a market consolidator. We concluded that ANE’s fundamentals are solid. In ANE IPO: The Freight Debate, we stated that the PHIP continues to support our view that the ANE IPO is worth a look for investors willing to brave the current weak sentiment on HKEx IPOs. Our valuation analysis, suggests that the IPO price range is attractive particularly at the low-end.

<p><a href="https://www.smartkarma.com/entities/ane-logistics" target="_blank" data-smartkarma-citation="entities:34119:1" rel="noopener">ANE Logistics (1292621D CH)</a> operates a leading express freight network in China’s less-than-truckload (LTL) market. ANE operated the largest express freight network in China as measured by annual total freight volume in each of 2017, 2018, 2019 and 2020, according to iResearch.</p><p>ANE is pre-marketing an HKEx IPO to raise up to $500 million, according to press reports. ANE’s shareholders include Centurium, Carlyle, CDH, CPE, NWS, Ping An, Goldman Sachs and Yili.</p><p>In <a href="https://www.smartkarma.com/insights/ane-logistics-ipo-initiation-home-delivery" target="_blank" data-smartkarma-citation="insights:57807" rel="noopener">ANE Logistics IPO Initiation: Home Delivery</a>, we stated that ANE is a play on China’s LTL market which offers substantial opportunities for market consolidation as the top 10 LTL operators in China had a market share of 5.7% by shipper spend in 2020, according to iResearch. As the largest (by freight volume), fastest-growing and most profitable player, ANE is well-positioned to be a market consolidator. We concluded that ANE’s fundamentals are solid. </p><div class="content-highlight"><p>In this note, we look at the PHIP which discloses the 4M21 results and recent developments. The PHIP continues to support our view that the ANE IPO is worth a look for investors willing to brave the current weak sentiment on HKEx IPOs.</p></div>

ANE Logistics (1292621D CH) operates a leading express freight network in China’s less-than-truckload (LTL) market. ANE operated the largest express freight network in China as measured by annual total freight volume in each of 2017, 2018, 2019 and 2020, according to iResearch.ANE is pre-marketing an HKEx IPO to raise up to $500 million, according to press reports. ANE’s shareholders include Centurium, Carlyle, CDH, CPE, NWS, Ping An, Goldman Sachs and Yili.In ANE Logistics IPO Initiation: Home Delivery, we stated that ANE is a play on China’s LTL market which offers substantial opportunities for market consolidation as the top 10 LTL operators in China had a market share of 5.7% by shipper spend in 2020, according to iResearch. As the largest (by freight volume), fastest-growing and most profitable player, ANE is well-positioned to be a market consolidator. We concluded that ANE’s fundamentals are solid. In this note, we look at the PHIP which discloses the 4M21 results and recent developments. The PHIP continues to support our view that the ANE IPO is worth a look for investors willing to brave the current weak sentiment on HKEx IPOs.

<p><a href="https://www.smartkarma.com/entities/ane-logistics" target="_blank" data-smartkarma-citation="entities:34119:1" rel="noopener">ANE Logistics (1292621D CH)</a> operates a leading express freight network in China’s less-than-truckload (LTL) market. ANE operated the largest express freight network in China as measured by annual total freight volume in each of 2017, 2018, 2019 and 2020, according to iResearch.</p><p>ANE passed its HKEx listing committee hearing and will start pre-marketing to raise up to $500 million, according to press reports. ANE’s shareholders include Centurium, <a href="https://www.smartkarma.com/entities/carlyle-group-inc" target="_blank" data-smartkarma-citation="entities:33402:1" rel="noopener">Carlyle Group Inc (CG US)</a>, CDH, CPE, <a href="https://www.smartkarma.com/entities/nws-holdings-ltd" target="_blank" data-smartkarma-citation="entities:3350:1" rel="noopener">Nws Holdings (659 HK)</a>, Ping An, <a href="https://www.smartkarma.com/entities/goldman-sachs-group-inc" target="_blank" data-smartkarma-citation="entities:785:1" rel="noopener">Goldman Sachs Group (GS US)</a> and <a href="https://www.smartkarma.com/entities/inner-mongolia-yili-indus-a" target="_blank" data-smartkarma-citation="entities:3220:1" rel="noopener">Inner Mongolia Yili Industrial Group (A) (600887 CH)</a>.</p><div class="content-highlight"><p>ANE is a play on China’s LTL market which offers substantial opportunities for market consolidation as the top 10 LTL operators in China had a market share of 5.7% by shipper spend in 2020, according to iResearch. As the largest (by freight volume), fastest-growing and most profitable player, ANE is well-positioned to be a market consolidator. On balance, we think that ANE’s fundamentals are solid and the IPO is worth a look for investors willing to brave the current weak sentiment on HKEx IPOs. </p></div>

ANE Logistics (1292621D CH) operates a leading express freight network in China’s less-than-truckload (LTL) market. ANE operated the largest express freight network in China as measured by annual total freight volume in each of 2017, 2018, 2019 and 2020, according to iResearch.ANE passed its HKEx listing committee hearing and will start pre-marketing to raise up to $500 million, according to press reports. ANE’s shareholders include Centurium, Carlyle Group Inc (CG US), CDH, CPE, Nws Holdings (659 HK), Ping An, Goldman Sachs Group (GS US) and Inner Mongolia Yili Industrial Group (A) (600887 CH).ANE is a play on China’s LTL market which offers substantial opportunities for market consolidation as the top 10 LTL operators in China had a market share of 5.7% by shipper spend in 2020, according to iResearch. As the largest (by freight volume), fastest-growing and most profitable player, ANE is well-positioned to be a market consolidator. On balance, we think that ANE’s fundamentals are solid and the IPO is worth a look for investors willing to brave the current weak sentiment on HKEx IPOs. 

ANE Logistics IPO Initiation: Home Delivery

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<p>The Partial Offer for <a href="https://www.smartkarma.com/entities/kerry-logistics-network-ltd" target="_blank" data-smartkarma-citation="entities:367:1" rel="noopener">Kerry Logistics Network (636 HK)</a>, <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0210/2021021000043.pdf" target="_blank" rel="noopener">announced</a> on the 9 February, closes on the <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0902/2021090202054.pdf" target="_blank" rel="noopener">16 September</a>.</p>
<p>The record date for the interim dividend (HK$0.211/share) was the 13 September. The record date for the special dividend (HK$7.28/share) is the 15 September.</p>
<p>Shares are now trading ex- both dividends.</p>
<p>You can still tender into the Offer - but not buy and tender.</p>
<p>If you tender, you still receive the special dividend.</p>
<p>But if you intend to tender into the Offer, with a minimum pro-ration of 76.02%, you should simply sell in the market here at HK$18.60 and get 100% filled.</p>
<p>More below the fold.</p>

The Partial Offer for Kerry Logistics Network (636 HK), announced on the 9 February, closes on the 16 September.
The record date for the interim dividend (HK$0.211/share) was the 13 September. The record date for the special dividend (HK$7.28/share) is the 15 September.
Shares are now trading ex- both dividends.
You can still tender into the Offer - but not buy and tender.
If you tender, you still receive the special dividend.
But if you intend to tender into the Offer, with a minimum pro-ration of 76.02%, you should simply sell in the market here at HK$18.60 and get 100% filled.
More below the fold.

Kerry Logistics (636 HK): Sell Here As Opposed To Tendering

China

S.F. Holding Co., Ltd operates as a holding company. The Company, through its subsidiaries, provides logistics, order tracking, supply chain management, and warehousing services. S.F. Holding operates worldwide.

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S.F. Holding (002352 CH)

ANE IPO: Forecasts and Valuation

At the midpoint, ANE will raise US$114.5m, a significant downsize of its offer. Our valuation suggests ANE's IPO pricing is expensive and absence...

Shifara Samsudeen, FCMA, CGMA

ANE IPO: Valuation Insights

At the proposed IPO price range of HK$13.88-16.88 per share, the net proceeds are $144 m. Our valuation analysis, suggests that the IPO price range...

Arun George

ANE IPO: The Freight Debate

ANE is pre-marketing an HKEx IPO to raise up to $500 m. The PHIP continues to support our view that the ANE is worth a look for investors willing...

Arun George

ANE Logistics IPO Initiation: Home Delivery

ANE will start pre-marketing an HKEx IPO to raise up to $500 m. We think that ANE’s fundamentals are solid and the IPO is worth a look for...

Arun George

Kerry Logistics (636 HK): Sell Here As Opposed To Tendering

If your intention is to tender into the Offer -you still get the special dividend if you do so. But if you sell into the market, you will be 100%...

David Blennerhassett

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