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.

Thematic (Sector/Industry)

There are a handful of property management services companies that were listed in Hong Kong in the past one year. With the strong outperformance of their share price (as seen in the chart below vs. HSCEI Index), other property developers are looking to list their respective property management arms. These companies include the already filed, <a href="https://www.smartkarma.com/entities/zhenro-services-group" target="_blank" data-smartkarma-citation="entities:28869:1" rel="noopener">Zhenro Services (ZS HK)</a>, CR Land and Shimao property management arm, which have yet to file.We see that managing GFA from parent/affiliated property developers have been generally more profitable as they have favorable (higher) average fees than those secured from independent developers. Hence, companies with strong heritage tend to have a larger contracted GFA (under management and reserved GFA). In this insight, we will look at the industry landscape, compare between the listed property management companies on various key metrics, and evaluate where upcoming IPOs should trade at.

There are a handful of property management services companies that were listed in Hong Kong in the past one year. With the strong outperformance of their share price (as seen in the chart below vs. HSCEI Index), other property developers are looking to list their respective property management arms. These companies include the already filed, Zhenro Services (ZS HK), CR Land and Shimao property management arm, which have yet to file.We see that managing GFA from parent/affiliated property developers have been generally more profitable as they have favorable (higher) average fees than those secured from independent developers. Hence, companies with strong heritage tend to have a larger contracted GFA (under management and reserved GFA). In this insight, we will look at the industry landscape, compare between the listed property management companies on various key metrics, and evaluate where upcoming IPOs should trade at.

Property Management Services Industry - Landscape, Peer Comparison, and Valuation

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>On the 11th March, SOE-backed <a href="https://www.smartkarma.com/entities/cimc-vehicles-group-co-ltd" target="_blank" data-smartkarma-citation="entities:28012:1" rel="noopener">CIMC Vehicle Group Co Ltd (1839 HK)</a> announced a firm Offer at HK$7.50/H-share from its major shareholder, CIMC Group. Terms are final. </li>
<li>CIMC Group holds 74.24% of the H-shares and will abstain from voting at the H-share class meeting. 14.21% of the remaining 25.76% H-shares have given irrevocables supporting the Offer.</li>
<li>The Circular is now <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0326/2024032600780.pdf" target="_blank" rel="noopener">out</a>. The shareholder vote is the 18th April. Payment is the 13th May, IF unconditional on the first close. This looks done.</li>
</ul>


On the 11th March, SOE-backed CIMC Vehicle Group Co Ltd (1839 HK) announced a firm Offer at HK$7.50/H-share from its major shareholder, CIMC Group. Terms are final. 
CIMC Group holds 74.24% of the H-shares and will abstain from voting at the H-share class meeting. 14.21% of the remaining 25.76% H-shares have given irrevocables supporting the Offer.
The Circular is now out. The shareholder vote is the 18th April. Payment is the 13th May, IF unconditional on the first close. This looks done.


CIMC (1839 HK): 18th April Shareholder Vote

Lanzhou Zhuangyuan Pasture / Event-Driven

<ul>
<li>On the 25 April, PRC dairy farmer <a href="https://www.smartkarma.com/entities/lanzhou-zhuangyuan-pasture-co-ltd" target="_blank" data-smartkarma-citation="entities:10174:1" rel="noopener">Lanzhou Zhuangyuan Pasture (1533 HK)</a> announced a Conditional Cash Offer for all its H-shares at $10.89/share. </li>
<li>This two-step voluntary cash offer incorporated a Scheme-like vote and a 90% tendering condition. </li>
<li>Shareholders voted for the transaction on the 29 June. The tendering condition has now been satisfied. The last day of trading is on the 1 August.  </li>
</ul>


On the 25 April, PRC dairy farmer Lanzhou Zhuangyuan Pasture (1533 HK) announced a Conditional Cash Offer for all its H-shares at $10.89/share. 
This two-step voluntary cash offer incorporated a Scheme-like vote and a 90% tendering condition. 
Shareholders voted for the transaction on the 29 June. The tendering condition has now been satisfied. The last day of trading is on the 1 August.  


Zhuangyuan Pasture (1533 HK): Offer Now Unconditional

<ul>
<li>Back on the 25 April, PRC dairy farmer <a href="https://www.smartkarma.com/entities/lanzhou-zhuangyuan-pasture-co-ltd" target="_blank" data-smartkarma-citation="entities:10174:1" rel="noopener">Lanzhou Zhuangyuan Pasture (1533 HK)</a> announced a Conditional Cash Offer for all its H-shares at $10.89/share. The Offer Doc is now out.</li>
<li>This two-step voluntary cash offer involves a Scheme-like vote and a 90% tendering condition. The EGM will be held on the 29 June. </li>
<li>This transaction could potentially be wrapped up late-July. The FY21 dividend should also be added to the Offer terms.</li>
</ul>


Back on the 25 April, PRC dairy farmer Lanzhou Zhuangyuan Pasture (1533 HK) announced a Conditional Cash Offer for all its H-shares at $10.89/share. The Offer Doc is now out.
This two-step voluntary cash offer involves a Scheme-like vote and a 90% tendering condition. The EGM will be held on the 29 June. 
This transaction could potentially be wrapped up late-July. The FY21 dividend should also be added to the Offer terms.


Zhuangyuan Pasture (1533 HK): 29th June EGM For H-Share Offer

<ul>
<li>On the 21 May, <a href="https://www.smartkarma.com/entities/jinke-property-group-co-ltd" target="_blank" data-smartkarma-citation="entities:13291:1" rel="noopener">Jinke Property (000656 CH)</a> announced the forced sale of shares by its controlling shareholder. One day later, <a href="https://www.smartkarma.com/entities/jiayuan-international-group" target="_blank" data-smartkarma-citation="entities:22631:1" rel="noopener">Jiayuan International (2768 HK)</a> announced a similar event. </li>
<li>Jinke's 52.3%-owned <a href="https://www.smartkarma.com/entities/jinke-smart-services-group-co" target="_blank" data-smartkarma-citation="entities:29214:1" rel="noopener">Jinke Smart (9666 HK)</a> has now announced an agreement to acquire Jiayuan International's 73.56% stake in property service play <a href="https://www.smartkarma.com/entities/jiayuan-services-holdings-limited" target="_blank" data-smartkarma-citation="entities:29205:1" rel="noopener">Jiayuan Services Holdings (1153 HK)</a>. No price was announced.</li>
<li>In the past month, Jinke Property is down 24%, Jinke Smart 23%, Jiayuan International 54% and Jiayuan Services 80%. Jiayuan International and Jiayuan Services remain suspended.</li>
</ul>


On the 21 May, Jinke Property (000656 CH) announced the forced sale of shares by its controlling shareholder. One day later, Jiayuan International (2768 HK) announced a similar event. 
Jinke's 52.3%-owned Jinke Smart (9666 HK) has now announced an agreement to acquire Jiayuan International's 73.56% stake in property service play Jiayuan Services Holdings (1153 HK). No price was announced.
In the past month, Jinke Property is down 24%, Jinke Smart 23%, Jiayuan International 54% and Jiayuan Services 80%. Jiayuan International and Jiayuan Services remain suspended.


Jinke & Jiayuan: Pledged Shares And Leveraged Property Developers

China

Sichuan Languang Justbon Services is a property management service provider primarily engaged in property management and commercial operations. The company offers services for various real estate types, including residential, commercial, office, urban complexes, headquarters bases, and tourism properties, along with consultancy and community value-added services. It was founded on December 7, 2000, and its headquarters are located in Chengdu, Sichuan Province, PRC.

Sichuan Languang Justbon Services (2606 HK)

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Sichuan Languang Justbon Services (2606 HK)

Property Management Services Industry - Landscape, Peer Comparison, and Valuation

There are a handful of property management services companies that were listed in Hong Kong in the past one year. With the strong outperformance of...

Zhen Zhou, Toh

CIMC (1839 HK): 18th April Shareholder Vote

Trading at a gross/annualised spread of 3.3%/28.7% assuming late-May. I might pay up to HK$7.35-7.38. Below that would be preferable. This insight...

David Blennerhassett

Zhuangyuan Pasture (1533 HK): Offer Now Unconditional

The gross spread has narrowed to 0.5%. The Offer is now unconditional in all respects. This is not a super liquid arb situation. If not in, I'd be...

David Blennerhassett

Jinke & Jiayuan: Pledged Shares And Leveraged Property Developers

With Jiayuan Services suspended, there is currently no trade. Jinke Smart is trading and is shortable but I don't have a firm opinion. Expect more...

David Blennerhassett

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Property Management Services Industry - Landscape, Peer Comparison, and Valuation

There are a handful of property management services companies that were listed in Hong Kong in the past one year. With the strong outperformance of...

Zhen Zhou, Toh

CIMC (1839 HK): 18th April Shareholder Vote

Trading at a gross/annualised spread of 3.3%/28.7% assuming late-May. I might pay up to HK$7.35-7.38. Below that would be preferable. This insight...

David Blennerhassett

Zhuangyuan Pasture (1533 HK): Offer Now Unconditional

The gross spread has narrowed to 0.5%. The Offer is now unconditional in all respects. This is not a super liquid arb situation. If not in, I'd be...

David Blennerhassett

Zhuangyuan Pasture (1533 HK): 29th June EGM For H-Share Offer

Currently trading at gross/annualised spread of 8.6%/52.8%, incl. the final divi. That looks attractive. Although recent deal structures have...

David Blennerhassett

Jinke & Jiayuan: Pledged Shares And Leveraged Property Developers

With Jiayuan Services suspended, there is currently no trade. Jinke Smart is trading and is shortable but I don't have a firm opinion. Expect more...

David Blennerhassett