APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC 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

<ul>
<li>
<a href="https://www.smartkarma.com/entities/one-store-4672b817-5076-408e-bcad-1a3e48b03c2a" target="_blank" data-smartkarma-citation="entities:35800:1" rel="noopener">ONE Store (ONE KS)</a> is looking to raise up to US$228m in its Korean IPO.</li>
<li>One Store is a mobile app market platform, formed by a cooperation between South Korea’s three telecom carriers, together with Naver Corp, an internet firm in South Korea.</li>
<li>Given the lack of direct comparables, one way to look at valuation would be to compare the firm to its historical asking valuations.</li>
</ul>



ONE Store (ONE KS) is looking to raise up to US$228m in its Korean IPO.
One Store is a mobile app market platform, formed by a cooperation between South Korea’s three telecom carriers, together with Naver Corp, an internet firm in South Korea.
Given the lack of direct comparables, one way to look at valuation would be to compare the firm to its historical asking valuations.


One Store IPO - Outpaced Industry, Bottom-End Seems Justified

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sre-holdings-corp" target="_blank" data-smartkarma-citation="entities:29672:1" rel="noopener">SRE Holdings Corp (2980 JP)</a> last week announced an offering of new shares and a secondary share sale by <a href="https://www.smartkarma.com/entities/z-holdings-corp" target="_blank" data-smartkarma-citation="entities:19603:1" rel="noopener">Z Holdings (4689 JP)</a> of the bulk of its holdings.</li>
<li>The Z Holdings sale coincides with a "new business alliance" between SRE and Yahoo. At first glance, it appears as if both sides have decided to rejig what they do.</li>
<li>SRE has an interesting business model which is quite growthy. It is growthier than it planned and others expected, but the stock has fallen 70% in 3mos. It's a buy.</li>
</ul>



SRE Holdings Corp (2980 JP) last week announced an offering of new shares and a secondary share sale by Z Holdings (4689 JP) of the bulk of its holdings.
The Z Holdings sale coincides with a "new business alliance" between SRE and Yahoo. At first glance, it appears as if both sides have decided to rejig what they do.
SRE has an interesting business model which is quite growthy. It is growthier than it planned and others expected, but the stock has fallen 70% in 3mos. It's a buy.


SRE Holdings (2980 JP) Offering - New Higher Growth at New Lower Multiple

Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

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 Bottom-Up

<ul>
<li>Mercari opened down 11.7% and has now recovered to be down “only” 8.5%. </li>
<li>While our impression of results yesterday was negative the intensity of the move is overdone in our view. </li>
<li>We still believe that momentum is likely to be muted for a while but the current price is not unattractive.</li>
</ul>


Mercari opened down 11.7% and has now recovered to be down “only” 8.5%. 
While our impression of results yesterday was negative the intensity of the move is overdone in our view. 
We still believe that momentum is likely to be muted for a while but the current price is not unattractive.


<ul>
<li>We got this wrong, expecting a beat on margins in spite of weak GMV, whereas Mercari actually fell into the red for the first time in six quarters. </li>
<li>The culprit is extremely aggressive promotional spend which looks to have hit all time highs in both Japan and the US. </li>
<li>The shift to an investment stance is not in and of itself a bad thing but the growth relative to the spend is disappointing so far.</li>
</ul>


We got this wrong, expecting a beat on margins in spite of weak GMV, whereas Mercari actually fell into the red for the first time in six quarters. 
The culprit is extremely aggressive promotional spend which looks to have hit all time highs in both Japan and the US. 
The shift to an investment stance is not in and of itself a bad thing but the growth relative to the spend is disappointing so far.


Telco/Internet specialist

Kirk Boodry

Redex Research

<ul>
<li>Q3 21 in-line for revenue but well ahead for EBITDA on solid advertising growth leading to an upgrade in management's full-year EBITDA target.</li>
<li>Operational results were encouraging with double-digit gains in ad sales and 7% eCommerce growth despite strong year-ago comps.</li>
<li>Impairment losses for equity associate Demae-Can sting but the overall story is positive.</li>
</ul>


Q3 21 in-line for revenue but well ahead for EBITDA on solid advertising growth leading to an upgrade in management's full-year EBITDA target.
Operational results were encouraging with double-digit gains in ad sales and 7% eCommerce growth despite strong year-ago comps.
Impairment losses for equity associate Demae-Can sting but the overall story is positive.


Z Holdings (Buy) Q3 21 Results Reaction: Mostly Positive as Ad Sales Continues to Impress

Japan

Mercari, Inc. operates as an electronic commercial company. The Company offers electronic commercial software, operation management, marketing planning, and other marketplace services. Mercari serves customers worldwide.

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Mercari (4385 JP)

One Store IPO - Outpaced Industry, Bottom-End Seems Justified

ONE Store (ONE KS) is looking to raise up to US$228m in its Korean IPO. Given the lack of direct peers, one way to look at valuation would be to...

Clarence Chu

SRE Holdings (2980 JP) Offering - New Higher Growth at New Lower Multiple

SRE and Yahoo are re-jigging their business tie-up, and Yahoo is selling most of its shares in SRE. Shares are down 70% from 14 weeks ago. That's...

Travis Lundy

Mercari – Don’t Panic Sell

Mercari opened down 11.7% and has now recovered to be down “only” 8.5%. While our impression of results yesterday was negative the intensity of the...

Mio Kato

Mercari – Margin Miss Not Beat

We got this wrong, expecting a beat on margins whereas Mercari actually fell into the red. A shift to an investment stance is not bad but the...

Mio Kato

Z Holdings (Buy) Q3 21 Results Reaction: Mostly Positive as Ad Sales Continues to Impress

This was a good quarter with better-than-expected growth in eCommerce, ad sales and cashless payments and an upgrade to the full-year EBITDA target...

Kirk Boodry

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