APAC IPOs & Placements

Zhen Zhou, Toh

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

Ming Yuan Cloud Group / Equity Capital Markets

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<p><a href="https://www.smartkarma.com/entities/ming-yuan-cloud-group" target="_blank" data-smartkarma-citation="entities:29268:1" rel="noopener">Ming Yuan Cloud Group (909 HK)</a> (MYCG) raised US$796m at HK$16.50 per share, at the top-end of its IPO price range.</p>
<p>MYCG is a software solution provider in China with a focus on real estate. The company provides enterprise resource planning (ERP) solutions and SaaS products to property developers and other industry participants in the real estate value chain in China. As per Frost &amp; Sullivan (F&amp;S), the company is ranked first among software providers for property developers in China and has a dominant 24.6% market share in terms of contract value in 2019.</p>
<p>In this note, we will look at the deal dynamics and provide a table with implied valuation at different share price levels.</p>
<p>Our previous coverage of the IPO:</p>
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<p><a href="https://www.smartkarma.com/insights/ming-yuan-cloud-pre-ipo-leaning-on-regional-partners-for-growth-but-hefty-commissions-paid" target="_blank" data-smartkarma-citation="insights:42977" rel="noopener">Ming Yuan Cloud (明源云) Pre-IPO - Leaning on Regional Partners for Growth but Hefty Commissions Paid</a> </p>
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<a href="https://www.smartkarma.com/insights/ming-yuan-cloud-ipo-better-disclosure-and-a-leader-in-the-industry" target="_blank" data-smartkarma-citation="insights:43229" rel="noopener">Ming Yuan Cloud (明源云) IPO - Better Disclosure and a Leader in the Industry</a> </li>
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Ming Yuan Cloud Group (909 HK) (MYCG) raised US$796m at HK$16.50 per share, at the top-end of its IPO price range.
MYCG is a software solution provider in China with a focus on real estate. The company provides enterprise resource planning (ERP) solutions and SaaS products to property developers and other industry participants in the real estate value chain in China. As per Frost &amp; Sullivan (F&amp;S), the company is ranked first among software providers for property developers in China and has a dominant 24.6% market share in terms of contract value in 2019.
In this note, we will look at the deal dynamics and provide a table with implied valuation at different share price levels.
Our previous coverage of the IPO:




Ming Yuan Cloud (明源云) Pre-IPO - Leaning on Regional Partners for Growth but Hefty Commissions Paid 


Ming Yuan Cloud (明源云) IPO - Better Disclosure and a Leader in the Industry 



Ming Yuan Cloud (明源云) Trading - Max Clawback Triggered but Still Decent Amount Left for Insti

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<p>In this insight, we make the case of why Orion Corp should list its shares in the HK Stock Exchange. We also compare the steep valuations of Orion Corp versus the recently listed <a href="https://www.smartkarma.com/entities/nongfu-spring" target="_blank" data-smartkarma-citation="entities:28955:1" rel="noopener">Nongfu Spring (9633 HK)</a> and other major F&amp;B stocks in China.</p>
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<p>There are three major reasons why the company should its shares in the HK Stock Exchange:</p>
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<strong>First,</strong> a listing of the Orion Corp shares would raise the visibility of Orion Corp much more among both the institutional and retail investors that closely follow the Chinese stock markets.</li>
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<strong>Second, </strong>because nearly two-thirds of the company's revenues and operating profit are generated in China, Vietnam, and Russia right now, one could make a strong case of why the company should be listed on the HK Stock Exchange.</li>
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<strong>Third,</strong> there has been a great demand for high quality, China-related F&amp;B stocks as evidenced by the recent smashing IPO of <a href="https://www.smartkarma.com/entities/nongfu-spring" target="_blank" data-smartkarma-citation="entities:28955:1" rel="noopener">Nongfu Spring (9633 HK)</a>. </li>
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In this insight, we make the case of why Orion Corp should list its shares in the HK Stock Exchange. We also compare the steep valuations of Orion Corp versus the recently listed Nongfu Spring (9633 HK) and other major F&amp;B stocks in China.

There are three major reasons why the company should its shares in the HK Stock Exchange:


First, a listing of the Orion Corp shares would raise the visibility of Orion Corp much more among both the institutional and retail investors that closely follow the Chinese stock markets.

Second, because nearly two-thirds of the company's revenues and operating profit are generated in China, Vietnam, and Russia right now, one could make a strong case of why the company should be listed on the HK Stock Exchange.

Third, there has been a great demand for high quality, China-related F&amp;B stocks as evidenced by the recent smashing IPO of Nongfu Spring (9633 HK). 



Orion Corp - Time To List Its Shares In HK Stock Exchange? & A Comparison to Nongfu Spring

Equity Analyst, LightStream Research

Aqila Ali

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.

<p>As expected <a href="https://www.smartkarma.com/entities/nongfu-spring" target="_blank" data-smartkarma-citation="entities:28955:1" rel="noopener">Nongfu Spring (9633 HK)</a> had a successful IPO. Nongfu's stock opened at HKD 39.8 per share up 85% from its issue price. The stock ended the day at HKD 33.1 per share, 54% above the IPO price. The IPO was oversubscribed 1,148 times. The share price performance shows investor demand for defensive stocks amidst the ongoing COVID-19 crisis. <br>During the second day of trading, the share price increased another 2.3%, closing at HKD 34.1 per share. At the current share price (HKD 35.9), Nongfu is trading at FY+2 EV/EBIT and PE of 43.6x and 47.6x respectively. <br>The company’s valuation looks expensive – the question is, should you take profits, keep it in the radar to short, or hold on?<br>We go through the details below.</p>

As expected Nongfu Spring (9633 HK) had a successful IPO. Nongfu's stock opened at HKD 39.8 per share up 85% from its issue price. The stock ended the day at HKD 33.1 per share, 54% above the IPO price. The IPO was oversubscribed 1,148 times. The share price performance shows investor demand for defensive stocks amidst the ongoing COVID-19 crisis.  During the second day of trading, the share price increased another 2.3%, closing at HKD 34.1 per share. At the current share price (HKD 35.9), Nongfu is trading at FY+2 EV/EBIT and PE of 43.6x and 47.6x respectively.  The company’s valuation looks expensive – the question is, should you take profits, keep it in the radar to short, or hold on? We go through the details below.

Nongfu Spring’s Sparkling Debut: Opened 85% Up- Is It Time to Short?

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/nongfu-spring" target="_blank" data-smartkarma-citation="entities:28955:1" rel="noopener">Nongfu Spring (9633 HK)</a> is a leader in the packaged drinking water and beverage business in China. Nongfu had the leading market share in the packaged drinking water market in China for eight consecutive years from 2012 to 2019, according to Frost &amp; Sullivan. Nongfu will commence trading on Tuesday, 8 September. Nongfu priced its IPO at HK$21.50 per share, at the top end of the indicative price range of $19.50-21.50 per H share. Nongfu raised net proceeds of HK$8,149 million ($1.1 billion).</p></div><div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/nongfu-spring-ipo-initiation-still-or-sparkling" target="_blank" rel="noopener">our initiation note</a>, we stated that Nongfu is a play on the attractive growth of the Chinese soft beverage markets, which is underpinned by the increasing urbanisation rate, the growing health awareness and consumption upgrade. In <a href="https://www.smartkarma.com/insights/nongfu-spring-ipo-update-points-to-green-shoots-of-recovery" target="_blank" rel="noopener">our PHIP update note</a>, we opined that the key negative remains the large pre-IPO dividends with RMB7,800 million ($1.1 billion) cash dividend declared on 14 August. Overall, we continue to believe that Nongfu remains attractive at the IPO price due to a reasonable PEG valuation.</p></div></div></div>

Nongfu Spring (9633 HK) is a leader in the packaged drinking water and beverage business in China. Nongfu had the leading market share in the packaged drinking water market in China for eight consecutive years from 2012 to 2019, according to Frost &amp; Sullivan. Nongfu will commence trading on Tuesday, 8 September. Nongfu priced its IPO at HK$21.50 per share, at the top end of the indicative price range of $19.50-21.50 per H share. Nongfu raised net proceeds of HK$8,149 million ($1.1 billion).In our initiation note, we stated that Nongfu is a play on the attractive growth of the Chinese soft beverage markets, which is underpinned by the increasing urbanisation rate, the growing health awareness and consumption upgrade. In our PHIP update note, we opined that the key negative remains the large pre-IPO dividends with RMB7,800 million ($1.1 billion) cash dividend declared on 14 August. Overall, we continue to believe that Nongfu remains attractive at the IPO price due to a reasonable PEG valuation.

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

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<p><a href="https://www.smartkarma.com/entities/nongfu-spring" target="_blank" data-smartkarma-citation="entities:28955:1" rel="noopener">Nongfu Spring (NON HK)</a> raised around US$1bn in its Hong Kong listing. The company is the market leader in packaged drinking water in China.</p>
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<p>In my earlier notes, I spoke about the company, its past performance and undertook a peer comparison and valuation analysis:</p>
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<ul style="list-style-type: disc;">
<li><a href="https://www.smartkarma.com/insights/nongfu-spring-pre-ipo-the-positives-leaves-one-thirsty-for-more" target="_blank" rel="noopener">Nongfu Spring Pre-IPO - The Positives - Leaves One Thirsty for More</a></li>
<li><a href="https://www.smartkarma.com/insights/nongfu-spring-pre-ipo-the-negatives-doesn-t-need-to-list-or-expand-production-facilities" target="_blank" rel="noopener">Nongfu Spring Pre-IPO - The Negatives - Doesn’t Need to List or Expand Production Facilities</a></li>
<li><a href="https://www.smartkarma.com/insights/nongfu-spring-pre-ipo-peer-comparison-superior-margins-and-growth" target="_blank" rel="noopener">Nongfu Spring Pre-IPO - Peer Comparison - Superior Margins and Growth</a></li>
<li><a href="https://www.smartkarma.com/insights/nongfu-spring-pre-ipo-first-stab-at-valuation" target="_blank" rel="noopener">Nongfu Spring Pre-IPO - First Stab at Valuation</a></li>
<li><a href="https://www.smartkarma.com/insights/nongfu-spring-pre-ipo-phip-updates" target="_blank" rel="noopener">Nongfu Spring Pre-IPO - PHIP Updates</a></li>
<li><a href="https://www.smartkarma.com/insights/nongfu-spring-pre-ipo-updates-to-valuation" target="_blank" rel="noopener">Nongfu Spring Pre-IPO - Updates to Valuation</a></li>
<li><a href="https://www.smartkarma.com/insights/nongfu-spring-ipo-not-cheap-by-any-measure-but-is-a-quality-name" target="_blank" rel="noopener">Nongfu Spring IPO - Not Cheap by Any Measure but Is a Quality Name</a></li>
</ul>
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<div>In this note, I'll look at the deal dynamics and provide a table with implied valuation at different share price levels.</div>


Nongfu Spring (NON HK) raised around US$1bn in its Hong Kong listing. The company is the market leader in packaged drinking water in China.


In my earlier notes, I spoke about the company, its past performance and undertook a peer comparison and valuation analysis:



Nongfu Spring Pre-IPO - The Positives - Leaves One Thirsty for More
Nongfu Spring Pre-IPO - The Negatives - Doesn’t Need to List or Expand Production Facilities
Nongfu Spring Pre-IPO - Peer Comparison - Superior Margins and Growth
Nongfu Spring Pre-IPO - First Stab at Valuation
Nongfu Spring Pre-IPO - PHIP Updates
Nongfu Spring Pre-IPO - Updates to Valuation
Nongfu Spring IPO - Not Cheap by Any Measure but Is a Quality Name


In this note, I'll look at the deal dynamics and provide a table with implied valuation at different share price levels.

Nongfu Spring IPO Trading Update - Strong Subscription Levels, in a League of Its Own

China

Nongfu Spring Co. Ltd. supplies soft drinks. The Company develops, produces, and sells bottled mineral water, fruit juice, sports drinks, and tea drinks. Nongfu Spring also offers barreled mineral water door-to-door services.

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Nongfu Spring (9633 HK)

Ming Yuan Cloud (明源云) Trading - Max Clawback Triggered but Still Decent Amount Left for Insti

Our previous coverage of the IPO: Ming Yuan Cloud (明源云) Pre-IPO - Leaning on Regional Partners for Growth but Hefty Commissions Paid Ming...

Zhen Zhou, Toh

Orion Corp - Time To List Its Shares In HK Stock Exchange? & A Comparison to Nongfu Spring

A listing of the Orion Corp shares would raise the visibility of Orion Corp much more among both the institutional and retail investors that...

Douglas Kim

Nongfu Spring’s Sparkling Debut: Opened 85% Up- Is It Time to Short?

As expected Nongfu Spring had a successful IPO. Nongfu's stock opened at HKD 39.8 per share up 85% from its issue price. The stock ended the day at...

Aqila Ali

Nongfu Spring IPO: Trading Debut

Hangzhou Tigermed Consulting (H) (3347 HK) is a global contract research organisation (CRO). Tigermed is the largest clinical CRO in China with a...

Arun George

Nongfu Spring IPO Trading Update - Strong Subscription Levels, in a League of Its Own

Nongfu Spring (NON HK) is looking to raise up to US$1bn in its Hong Kong listing. The company is the market leader in packaged drinking water in...

Sumeet Singh

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