APAC IPOs & Placements, Aequitas Research

Ethan Aw

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/oasis-corp-of-korea" target="_blank" data-smartkarma-citation="entities:36074:1" rel="noopener">OASIS Corp (370190 KS)</a> is looking to raise up to US$166m in its upcoming Korea IPO.</li>
<li>Oasis Corporation is an early morning delivery service business that delivers fresh food to consumers. It runs an e-commerce platform named ‘Oasis Market’ as well as offline stores.</li>
<li>In our previous notes, we looked at the company’s past performance. In this note, we talk about peer comparison.</li>
</ul>



OASIS Corp (370190 KS) is looking to raise up to US$166m in its upcoming Korea IPO.
Oasis Corporation is an early morning delivery service business that delivers fresh food to consumers. It runs an e-commerce platform named ‘Oasis Market’ as well as offline stores.
In our previous notes, we looked at the company’s past performance. In this note, we talk about peer comparison.


Oasis Corporation IPO - Peer Comparison - Smallest in Scale but Largest in Profitability

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

With the ever-increasing COVID-19 cases in Indonesia, combined with the slow action to inoculate the citizens either due to the lack of vaccines supply or due to public distrust of the vaccine or COVID-19 itself, demand for medication is at an all-time high. Amid the ongoing “second wave” of COVID-19, some people have started taking it upon themselves to fend off the ever-looming threat of the coronavirus with unproven do-it-yourself (DIY) remedies and self-medication tips spreading rampantly on social media platforms, such as WhatsApp and Facebook, creating extra demand for a legitimate medicine sold in a licensed pharmacy.The YTD share price weakness and the recent knee jerk reaction from the delay of paid vaccination drive provides a better entry point for investors as the Indonesian government just released a rule to permit certain COVID-19 medications to be sold in licensed pharmacies in Indonesia and <a href="https://www.smartkarma.com/entities/kimia-farma-persero-tbk-pt" target="_blank" data-smartkarma-citation="entities:8524:1" rel="noopener">Kimia Farma Persero (KAEF IJ)</a> is the only listed SOE pharmacy in Indonesia with more than 1000 outlets across the country.

With the ever-increasing COVID-19 cases in Indonesia, combined with the slow action to inoculate the citizens either due to the lack of vaccines supply or due to public distrust of the vaccine or COVID-19 itself, demand for medication is at an all-time high. Amid the ongoing “second wave” of COVID-19, some people have started taking it upon themselves to fend off the ever-looming threat of the coronavirus with unproven do-it-yourself (DIY) remedies and self-medication tips spreading rampantly on social media platforms, such as WhatsApp and Facebook, creating extra demand for a legitimate medicine sold in a licensed pharmacy.The YTD share price weakness and the recent knee jerk reaction from the delay of paid vaccination drive provides a better entry point for investors as the Indonesian government just released a rule to permit certain COVID-19 medications to be sold in licensed pharmacies in Indonesia and Kimia Farma Persero (KAEF IJ) is the only listed SOE pharmacy in Indonesia with more than 1000 outlets across the country. 

<a href="https://www.smartkarma.com/entities/sheng-siong-group-ltd" target="_blank" data-smartkarma-citation="entities:6824:1" rel="noopener">Sheng Siong (SSG SP)</a> online expansion could be a little late as other players already have established their strong footprint but there are many smaller players that specialize in certain products only. Sheng Siong offers a wholistic product offering to its customers and should be able to compete with the big boys league such as NTUC, Cold Storage and Red Mart. <div class="content-highlight">The nature of online business typically allows a higher net margin compared to the brick and mortar business where property rent and depreciation are major burdens to the net income. The most conservative scenario still allows investors to make 19% while the normal scenario sees a potential upside of 100% from the online foray and some re-rating potential. Much to like on this new venture!</div>

Sheng Siong (SSG SP) online expansion could be a little late as other players already have established their strong footprint but there are many smaller players that specialize in certain products only. Sheng Siong offers a wholistic product offering to its customers and should be able to compete with the big boys league such as NTUC, Cold Storage and Red Mart. The nature of online business typically allows a higher net margin compared to the brick and mortar business where property rent and depreciation are major burdens to the net income. The most conservative scenario still allows investors to make 19% while the normal scenario sees a potential upside of 100% from the online foray and some re-rating potential. Much to like on this new venture!

The SGD 100 Discover Singapore vouchers that were handed out since 1st December 2020 to its citizens have provided the much-needed sparks in Singapore's hospitality industry that also benefits the Singapore transport sector. <a href="https://www.smartkarma.com/entities/comfortdelgro-corp-ltd" target="_blank" data-smartkarma-citation="entities:497:1" rel="noopener">Comfortdelgro Corp (CD SP)</a>captures this in two angles; higher revenue in public transport as well as in the taxi segment. The taxi segment has a historically higher gross profit margin compared to public transport although of late, the online ride-hailing app has challenged the former's dominance. 
Although Phase 3 is unlikely to happen today after PM Lee's speech, today's speech will highlight more positives rather than negative news on the COVID-19 development for Singapore and will help to increase higher mobility in Singapore that benefits ComfortDelgro. There will be an increase in group size on phase 3 and capacity limits in public places and events including weddings. Borders will also be slowly reopened that invite more tourists to come to Singapore. 
Although Hong Kong is still juggling with more pandemic cases compared to Singapore, <a href="https://www.smartkarma.com/entities/mtr-corp" target="_blank" data-smartkarma-citation="entities:13289:1" rel="noopener">MTR Corp (66 HK)</a> share price has held up far better compared to <a href="https://www.smartkarma.com/entities/comfortdelgro-corp-ltd" target="_blank" data-smartkarma-citation="entities:497:1" rel="noopener">Comfortdelgro Corp (CD SP)</a> . Thus ComfortDelgro's share price should play a catch-up. 
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/178/308/original/image_74960535931607934386271.png?1607934386" class="editor-image img-responsive" data-smartkarma-image-id="178308"></figure>
<div class="content-remarks">
source: Capital IQ
</div>

The SGD 100 Discover Singapore vouchers that were handed out since 1st December 2020 to its citizens have provided the much-needed sparks in Singapore's hospitality industry that also benefits the Singapore transport sector. Comfortdelgro Corp (CD SP)captures this in two angles; higher revenue in public transport as well as in the taxi segment. The taxi segment has a historically higher gross profit margin compared to public transport although of late, the online ride-hailing app has challenged the former's dominance. 
Although Phase 3 is unlikely to happen today after PM Lee's speech, today's speech will highlight more positives rather than negative news on the COVID-19 development for Singapore and will help to increase higher mobility in Singapore that benefits ComfortDelgro. There will be an increase in group size on phase 3 and capacity limits in public places and events including weddings. Borders will also be slowly reopened that invite more tourists to come to Singapore. 
Although Hong Kong is still juggling with more pandemic cases compared to Singapore, MTR Corp (66 HK) share price has held up far better compared to Comfortdelgro Corp (CD SP) . Thus ComfortDelgro's share price should play a catch-up. 


source: Capital IQ


ComfortDelgro (CD): Re-Discover Singapore

<a href="https://www.smartkarma.com/entities/sheng-siong-group-ltd" target="_blank" data-smartkarma-citation="entities:6824:1" rel="noopener">Sheng Siong (SSG SP)</a> has been the stocks to benefit from the COVID-19 induced lockdown as Singaporeans are allowed to WFH instead of WFO thus they do more grocery shopping and also stockpiled in case of the reduced food supply due to the longer than expected pandemic. The company has recorded a substantial and never-seen-before YoY revenue growth (Q1: 30.7%, Q2: 75.8%, and Q3: 28.9%). 
The tides seemed to have turned though:
<ul>
<li>Singapore statistics bureau reported that the revenue increase from supermarkets and convenience stores has slowed down while F&amp;B sales have grown from SGD 397 million to SGD 629 million QoQ, reflecting the change in consumers' behavior to start going out again. </li>
</ul>
Although its valuation has peaked in Q2, Sheng Siong's share price has not decreased by much thus it is the right time book profit as the large revenues growth is unlikely to sustain going forward. 
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/171/873/original/image_38476675561605505587235.png?1605505587" class="editor-image img-responsive" data-smartkarma-image-id="171873"></figure>

Sheng Siong (SSG SP) has been the stocks to benefit from the COVID-19 induced lockdown as Singaporeans are allowed to WFH instead of WFO thus they do more grocery shopping and also stockpiled in case of the reduced food supply due to the longer than expected pandemic. The company has recorded a substantial and never-seen-before YoY revenue growth (Q1: 30.7%, Q2: 75.8%, and Q3: 28.9%). 
The tides seemed to have turned though:

Singapore statistics bureau reported that the revenue increase from supermarkets and convenience stores has slowed down while F&amp;B sales have grown from SGD 397 million to SGD 629 million QoQ, reflecting the change in consumers' behavior to start going out again. 

Although its valuation has peaked in Q2, Sheng Siong's share price has not decreased by much thus it is the right time book profit as the large revenues growth is unlikely to sustain going forward. 


Sheng Siong (SSG): Sustainable High Growth?

Singapore

Sheng Siong Group Ltd. operates a chain of supermarket retail stores, offering a wide assortment of live, fresh, and chilled produce, pantry staples, packaged foods, and household merchandise. The company also engages in general trading, wholesale import and export, and operates an online grocery platform. Sheng Siong was founded in 1985 and is headquartered in Singapore.

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Sheng Siong (SSG SP)

Oasis Corporation IPO - Peer Comparison - Smallest in Scale but Largest in Profitability

OASIS Corp (370190 KS) is looking to raise up to US$166m in its upcoming Korea IPO. In our previous notes, we looked at the company’s past...

Ethan Aw

Kimia Farma (KAEF): Legitimate Pharmacy

ID government just released a rule to permit certain COVID-19 medications to be sold in pharmacies in Indonesia and Kimia Farma is the only listed...

Henry Soediarko

Sheng Siong: E-Groceries

Sheng Siong (SSG SP) foray into the online grocery market is exciting albeit it could be a little late therefore potential market share that it can...

Henry Soediarko

ComfortDelgro (CD): Re-Discover Singapore

Phase 3 is to happen soon and the speech highlighted more positives than negative news on COVID-19 development in SG and help to raise higher...

Henry Soediarko

Sheng Siong (SSG): Sustainable High Growth?

Singapore statistics reported that the revenue increase from supermarkets, CSs has slowed down while F&B sales have grown 60% QoQ, reflecting a...

Henry Soediarko

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