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

<ul>
<li>
<a href="https://www.smartkarma.com/entities/pony-ai-inc" target="_blank" data-smartkarma-citation="entities:44035:1" rel="noopener">Pony AI (PONY US)</a>, an autonomous mobility solutions provider, is looking to raise up to US$300m in its US IPO.</li>
<li>As per Frost &amp; Sullivan, Pony AI was among the first companies in China to obtain licenses to operate fully driverless robotaxis in all four Tier-1 cities in China.</li>
<li>In this note, we talk about the not-so-positive aspects of the deal.</li>
</ul>



Pony AI (PONY US), an autonomous mobility solutions provider, is looking to raise up to US$300m in its US IPO.
As per Frost &amp; Sullivan, Pony AI was among the first companies in China to obtain licenses to operate fully driverless robotaxis in all four Tier-1 cities in China.
In this note, we talk about the not-so-positive aspects of the deal.


Pony AI Pre-IPO - The Negatives - No Signs of Growth, Valuation Has Already Been Cut by 50%+

<ul>
<li>
<a href="https://www.smartkarma.com/entities/pony-ai-inc" target="_blank" data-smartkarma-citation="entities:44035:1" rel="noopener">Pony AI (PONY US)</a>  an autonomous mobility solutions provider, is looking to raise up to US$300m in its US IPO. </li>
<li>As per Frost &amp; Sullivan, Pony AI was among the first companies in China to obtain licenses to operate fully driverless robotaxis in all four Tier-1 cities in China.</li>
<li>In this note, we talk about the positive aspects of the deal.</li>
</ul>



Pony AI (PONY US)  an autonomous mobility solutions provider, is looking to raise up to US$300m in its US IPO. 
As per Frost &amp; Sullivan, Pony AI was among the first companies in China to obtain licenses to operate fully driverless robotaxis in all four Tier-1 cities in China.
In this note, we talk about the positive aspects of the deal.


Pony AI Pre-IPO - The Positives - Scaling up Robotaxi & Robotrucks

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Thematic (Sector/Industry)

<ul><li>The HK market had a strong run over the past two weeks following the dramatic policy changes announced by the Chinese government.</li><li>In order to have a closer look at the sources of buying forces, we analysed ~13,000 data points of shareholdings over the past nine settlement days (23 Sep - 4 Oct on T+2 basis) for four HK-listed names under our coverage, namely Weichai PowerH (2338 HK, BUY), Zoomlion-H (1157 HK, BUY), SANYI (631 HK, BUY) and Sinotruk (3808 HK, HOLD). Our analysis is based on CCASS data, which represented brokers’ holdings on behalf of clients.</li><li>We divided ~380 brokers into six categories: (1) Hong Kong, (2) the Chinese mainland, (3) Stock connect, (4) the US, (5) Europe and (6) other foreign brokers (excluding the US and Europe). </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

The HK market had a strong run over the past two weeks following the dramatic policy changes announced by the Chinese government.In order to have a closer look at the sources of buying forces, we analysed ~13,000 data points of shareholdings over the past nine settlement days (23 Sep - 4 Oct on T+2 basis) for four HK-listed names under our coverage, namely Weichai PowerH (2338 HK, BUY), Zoomlion-H (1157 HK, BUY), SANYI (631 HK, BUY) and Sinotruk (3808 HK, HOLD). Our analysis is based on CCASS data, which represented brokers’ holdings on behalf of clients.We divided ~380 brokers into six categories: (1) Hong Kong, (2) the Chinese mainland, (3) Stock connect, (4) the US, (5) Europe and (6) other foreign brokers (excluding the US and Europe). Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Capital Goods - Who Are Buying/Selling the Sector?

HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

<ul>
<li>Industry wheel loader sales rose 15.2% in Aug, continuing the healthy momentum. A low base in 2H24 will be another favourable factor, and <a href="https://www.smartkarma.com/entities/lonking-holdings-ltd" target="_blank" data-smartkarma-citation="entities:3944:1" rel="noopener">Lonking Holdings (3339 HK)</a> is well placed.   </li>
<li>Forklift outlook will stay strong and serve as a growth engine. There is also a significant pick-up in demand for industry excavator sales in Jul and Aug.</li>
<li>Net cash amounted to 81% of the share price. Including investments, it will increase to 118%. Conservative FY24 consensus earnings forecast means potential upside surprise.</li>
</ul>


Industry wheel loader sales rose 15.2% in Aug, continuing the healthy momentum. A low base in 2H24 will be another favourable factor, and Lonking Holdings (3339 HK) is well placed.   
Forklift outlook will stay strong and serve as a growth engine. There is also a significant pick-up in demand for industry excavator sales in Jul and Aug.
Net cash amounted to 81% of the share price. Including investments, it will increase to 118%. Conservative FY24 consensus earnings forecast means potential upside surprise.


Lonking (3339 HK): Small and Beautiful, Net Cash Equal 81% of Share Price

<ul><li>We revise down our 2024E-26E earnings forecast by 9-13% to reflect lower growth of mining trucks and oil &amp; gas equipment segments.</li><li>That said, we are encouraged by SANYI’s decision to slow the pace of solar manufacturing business expansion.</li><li>With potentially less capex and better profit contribution from solar farm disposal, we are now less concerned on the balance sheet pressure. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We revise down our 2024E-26E earnings forecast by 9-13% to reflect lower growth of mining trucks and oil &amp; gas equipment segments.That said, we are encouraged by SANYI’s decision to slow the pace of solar manufacturing business expansion.With potentially less capex and better profit contribution from solar farm disposal, we are now less concerned on the balance sheet pressure. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

SANY International (631 HK) - Scale-Down of Solar Power Expansion Plan a Positive Move

China

Sany Heavy Equipment International Holdings Co Ltd. manufactures coal mining equipment, including roadheaders.

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Sany Heavy Equipment (631 HK)

Pony AI Pre-IPO - The Negatives - No Signs of Growth, Valuation Has Already Been Cut by 50%+

Pony AI (PONY US), an autonomous mobility solutions provider, is looking to raise up to US$300m in its US IPO. In this note, we talk about the not...

Sumeet Singh

Pony AI Pre-IPO - The Positives - Scaling up Robotaxi & Robotrucks

Pony AI (PONY US) an autonomous mobility solutions provider, is looking to raise up to US$300m in its US IPO. In this note, we talk about the...

Sumeet Singh

Capital Goods - Who Are Buying/Selling the Sector?

The HK market had a strong run over the past two weeks following the dramatic policy changes announced by the Chinese government.

CMB International

SANY International (631 HK) - Scale-Down of Solar Power Expansion Plan a Positive Move

We revise down our 2024E-26E earnings forecast by 9-13% to reflect lower growth of mining trucks and oil & gas equipment segments.

CMB International

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Pony AI Pre-IPO - The Negatives - No Signs of Growth, Valuation Has Already Been Cut by 50%+

Pony AI (PONY US), an autonomous mobility solutions provider, is looking to raise up to US$300m in its US IPO. In this note, we talk about the not...

Sumeet Singh

Pony AI Pre-IPO - The Positives - Scaling up Robotaxi & Robotrucks

Pony AI (PONY US) an autonomous mobility solutions provider, is looking to raise up to US$300m in its US IPO. In this note, we talk about the...

Sumeet Singh

Capital Goods - Who Are Buying/Selling the Sector?

The HK market had a strong run over the past two weeks following the dramatic policy changes announced by the Chinese government.

CMB International

Lonking (3339 HK): Small and Beautiful, Net Cash Equal 81% of Share Price

​Industry wheel loader sales surged in Jul-Aug and the forklift outlook is strong. Current forecasts for Lonking are conservative with an upside...

Osbert Tang, CFA

SANY International (631 HK) - Scale-Down of Solar Power Expansion Plan a Positive Move

We revise down our 2024E-26E earnings forecast by 9-13% to reflect lower growth of mining trucks and oil & gas equipment segments.

CMB International

Industry wheel loader sales surged in Jul-Aug and the forklift outlook is strong. Current forecasts for Lonking are conservative with an upside...