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.

Event-Driven

Sichuan Baicha Baidao Industrial / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sichuan-baicha-baidao-industrial-co-ltd" target="_blank" data-smartkarma-citation="entities:40029:1" rel="noopener">Sichuan Baicha Baidao Industrial (2555 HK)</a> raised around US$330m in its Hong Kong IPO, in April 2024. The lockup on its pre-IPO investors is set to expire soon</li>
<li>SBBI sells new-style tea drinks through its ChaPanda stores. According to F&amp;S, SBBI ranked third in China’s new-style tea shop market in 2023, with a market share of 6.8%</li>
<li>In this note, we will talk about the lockup dynamics and possible placement.</li>
</ul>



Sichuan Baicha Baidao Industrial (2555 HK) raised around US$330m in its Hong Kong IPO, in April 2024. The lockup on its pre-IPO investors is set to expire soon
SBBI sells new-style tea drinks through its ChaPanda stores. According to F&amp;S, SBBI ranked third in China’s new-style tea shop market in 2023, with a market share of 6.8%
In this note, we will talk about the lockup dynamics and possible placement.


Sichuan Baicha Baidao Industrial IPO Lockup - Steep Losses for Pre-IPO Investors

HK/China Equity Long-Short

Osbert Tang, CFA

Equity Capital Markets

Auntea Jenny (Shanghai) Industrial / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/auntea-jenny-shanghai-industrial-co-ltd" target="_blank" data-smartkarma-citation="entities:40891:1" rel="noopener">Auntea Jenny (Shanghai) Industrial (2589 HK)</a>'s IPO price is set at HK$113.12, which is aggressive based on its financial and operational metrics. </li>
<li>At 29.3x FY25F PER, Auntea Jenny's multiple is close to <a href="https://www.smartkarma.com/entities/mixue-group" target="_blank" data-smartkarma-citation="entities:40623:1" rel="noopener">Mixue Group (2097 HK)</a> and <a href="https://www.smartkarma.com/entities/guming-holdings-limited" target="_blank" data-smartkarma-citation="entities:40622:1" rel="noopener">Guming Holdings (1364 HK)</a>, but it is significantly smaller in scale and lower in profitability. </li>
<li>Our fair value of 25x PER and 5.3x P/B for FY25 means a share price of HK$94.70-96.68. Initial euphoria may inflate its debut, but we will exit on the rally.</li>
</ul>



Auntea Jenny (Shanghai) Industrial (2589 HK)'s IPO price is set at HK$113.12, which is aggressive based on its financial and operational metrics. 
At 29.3x FY25F PER, Auntea Jenny's multiple is close to Mixue Group (2097 HK) and Guming Holdings (1364 HK), but it is significantly smaller in scale and lower in profitability. 
Our fair value of 25x PER and 5.3x P/B for FY25 means a share price of HK$94.70-96.68. Initial euphoria may inflate its debut, but we will exit on the rally.


Auntea Jenny (2589 HK): What Is the Fair Value?

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

Equity Bottom-Up

<ul>
<li>We recently visited Guangzhou city, a tier one city in China, on a vacation trip. </li>
<li>One of the malls that we visited happened to have several listed tea chain stores.</li>
<li>We took a snapshot of the shop traffic and noted the difference in locations of various stores. We also ordered tea drinks from two of these stores.</li>
</ul>


We recently visited Guangzhou city, a tier one city in China, on a vacation trip. 
One of the malls that we visited happened to have several listed tea chain stores.
We took a snapshot of the shop traffic and noted the difference in locations of various stores. We also ordered tea drinks from two of these stores.


Chinese Tea Chain: An Impromptu Snapshot Visit at Sunac Mall - Mixue, Chagee, Goodme, ChaPanda

Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy Research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Thematic (Sector/Industry)

<ul>
<li>Macro: Central Government Focuses on Improving People's Livelihoods to Stimulate Consumption, But Short-term Impact Unlikely(+)</li>
<li>Macro: Our Take on the Chinese Government Housing Provident Fund 2024 Annual Report(/)</li>
<li>1211 HK/LI US/ NIO US/XPEV US/1810 HK: 2025 June 2 – June 8 NEV Delivery Rankings(/)</li>
</ul>


Macro: Central Government Focuses on Improving People's Livelihoods to Stimulate Consumption, But Short-term Impact Unlikely(+)
Macro: Our Take on the Chinese Government Housing Provident Fund 2024 Annual Report(/)
1211 HK/LI US/ NIO US/XPEV US/1810 HK: 2025 June 2 – June 8 NEV Delivery Rankings(/)


[Blue Lotus Daily]:1211 HK/LI US/ NIO US/XPEV US/1810 HK/CHA US/2589 HK/2555 HK/Macro

<ul>
<li>Despite some disgruntled investors, the privatisation of <a href="https://www.smartkarma.com/entities/tam-jai-international-co-ltd" target="_blank" data-smartkarma-citation="entities:34227:1" rel="noopener">Tam Jai International (2217 HK)</a> is appealing. If it is successful, payment will be made on or before 26 Aug. </li>
<li>The proposed price of HK$1.58 equals a 24% premium to the peer CY25F PER. The poor reported peer results and earnings downgrades are the reasons for a narrower premium.</li>
<li>Since the announcement of privatisation, the sector has retreated by 7.8%, vs. a 5.2% gain in HSI, reflecting the industry's tough operating environment. It remains wise to exit. </li>
</ul>


Despite some disgruntled investors, the privatisation of Tam Jai International (2217 HK) is appealing. If it is successful, payment will be made on or before 26 Aug. 
The proposed price of HK$1.58 equals a 24% premium to the peer CY25F PER. The poor reported peer results and earnings downgrades are the reasons for a narrower premium.
Since the announcement of privatisation, the sector has retreated by 7.8%, vs. a 5.2% gain in HSI, reflecting the industry's tough operating environment. It remains wise to exit. 


Tam Jai Intl (2217 HK): Privatisation Stays Appealing Despite...

Hong Kong

Sichuan Baicha Baidao Industrial Co., Ltd. manufactures and distributes tea drink products. The Company produces seasonal tea drinks, local tea, and other products. Sichuan Baicha Baidao Industrial also offers enterprise management, supply chain management, and other services.

Sichuan Baicha Baidao Industrial (2555 HK)

Price Gauge
52-week Range	0.00 - 0.00
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Sichuan Baicha Baidao Industrial (2555 HK)

Sichuan Baicha Baidao Industrial IPO Lockup - Steep Losses for Pre-IPO Investors

Sichuan Baicha Baidao Industrial (2555 HK) raised around US$330m in its Hong Kong IPO, in April 2024. The lockup on its pre-IPO investors is set to...

Sumeet Singh

Auntea Jenny (2589 HK): What Is the Fair Value?

Auntea Jenny's IPO price of HK$113.12 is aggressive based on financial and operational metrics. We arrive at a fair value estimate of HK$94.70...

Osbert Tang, CFA

Chinese Tea Chain: An Impromptu Snapshot Visit at Sunac Mall - Mixue, Chagee, Goodme, ChaPanda

We recently visited stores of 4 listed tea chains in a mall, noting the differentiation of the stores in terms of their positioning.

Ke Yan, CFA, FRM

[Blue Lotus Daily]:1211 HK/LI US/ NIO US/XPEV US/1810 HK/CHA US/2589 HK/2555 HK/Macro

Central government focuses on improving livelihoods to boost consumption, but short-term impact unlikely. Our analysis of Chinese government...

Blue Lotus Research Institute

Tam Jai Intl (2217 HK): Privatisation Stays Appealing Despite...

Some investors may be unhappy, but Tam Jai's privatisation is attractive at HK$1.58, offering a 24% PER premium to peers. Given sector challenges,...

Osbert Tang, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Sichuan Baicha Baidao Industrial IPO Lockup - Steep Losses for Pre-IPO Investors

Sichuan Baicha Baidao Industrial (2555 HK) raised around US$330m in its Hong Kong IPO, in April 2024. The lockup on its pre-IPO investors is set to...

Sumeet Singh

Auntea Jenny (2589 HK): What Is the Fair Value?

​Auntea Jenny's IPO price of HK$113.12 is aggressive based on financial and operational metrics. We arrive at a fair value estimate of HK$94.70...

Osbert Tang, CFA

Chinese Tea Chain: An Impromptu Snapshot Visit at Sunac Mall - Mixue, Chagee, Goodme, ChaPanda

We recently visited stores of 4 listed tea chains in a mall, noting the differentiation of the stores in terms of their positioning.

Ke Yan, CFA, FRM

[Blue Lotus Daily]:1211 HK/LI US/ NIO US/XPEV US/1810 HK/CHA US/2589 HK/2555 HK/Macro

​Central government focuses on improving livelihoods to boost consumption, but short-term impact unlikely. Our analysis of Chinese government...

Blue Lotus Research Institute

Tam Jai Intl (2217 HK): Privatisation Stays Appealing Despite...

Some investors may be unhappy, but Tam Jai's privatisation is attractive at HK$1.58, offering a 24% PER premium to peers. Given sector challenges,...

Osbert Tang, CFA

Auntea Jenny's IPO price of HK$113.12 is aggressive based on financial and operational metrics. We arrive at a fair value estimate of HK$94.70...

Central government focuses on improving livelihoods to boost consumption, but short-term impact unlikely. Our analysis of Chinese government...