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

WM Tech Corporation / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/wm-tech-corporation" target="_blank" data-smartkarma-citation="entities:32976:1" rel="noopener">WM Tech Corporation (WMT HK)</a> is looking to raise US$1bn in its upcoming Hong Kong IPO. WM Tech (WMT) is a fresh food and FMCG retailer in China. The company operates its business primarily through two brands, Wumart (物美) and Metro (麦德龙). The Metro brand belonged to Metro China in which WMT acquired an 80% stake in and started consolidating in April 2020.In this note, we have  compared WMT to other supermarket operators.We have previously covered the IPO in:<ul>
<li>
<a href="https://www.smartkarma.com/insights/wm-tech-pre-ipo-digitalization-efforts-coming-through-but-not-well-substantiated" target="_blank" data-smartkarma-citation="insights:52007" rel="noopener">WM Tech Pre-IPO - Digitalization Efforts Coming Through but Not Well Substantiated</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/wm-tech-pre-ipo-wumart-as-main-brand-marginalized-on-the-ground" target="_blank" data-smartkarma-citation="insights:52273" rel="noopener">WM Tech Pre-IPO: Wumart as Main Brand, Marginalized on the Ground</a> </li>
</ul>

WM Tech Corporation (WMT HK) is looking to raise US$1bn in its upcoming Hong Kong IPO. WM Tech (WMT) is a fresh food and FMCG retailer in China. The company operates its business primarily through two brands, Wumart (物美) and Metro (麦德龙). The Metro brand belonged to Metro China in which WMT acquired an 80% stake in and started consolidating in April 2020.In this note, we have  compared WMT to other supermarket operators.We have previously covered the IPO in:

WM Tech Pre-IPO - Digitalization Efforts Coming Through but Not Well Substantiated 

WM Tech Pre-IPO: Wumart as Main Brand, Marginalized on the Ground 


WM Tech Pre-IPO - Peer Comparison and Pre-IPO Valuation - Some Signs of Advantage

IPO and L/S equity, 2015 Starmine top stock picker, Global Equity Research Ltd

Rickin Thakrar

IPO and L/S equity, 2015 Starmine top stock picker

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.

Equity Bottom-Up

For the first time in months, our EBIT and EPS forecasts are not dramatically lower than consensus and while we see scope for moderate EBIT downgrades, we believe any weakness in the shares would present a robust buying opportunity.

For the first time in months, our EBIT and EPS forecasts are not dramatically lower than consensus and while we see scope for moderate EBIT downgrades, we believe any weakness in the shares would present a robust buying opportunity.

Alibaba – Have Consensus Forecasts Finally Bottomed?

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

<ul>
<li>Dingdong has the most app active users among all fresh food retailers.</li>
<li>Frontline warehouses are closer to customers, but fresh food have low gross margin.</li>
<li>Competition also came from new retail and O2O retailers.</li>
</ul>


Dingdong has the most app active users among all fresh food retailers.
Frontline warehouses are closer to customers, but fresh food have low gross margin.
Competition also came from new retail and O2O retailers.


Dingdong (叮咚买菜): Fresh Food Competition in and Outside of Frontline Warehouse

<ul>
<li>Here in Shanghai Wumart convenience stores have already been closed.</li>
<li>Wumart supermarkets do not have advantageous locations.</li>
<li>We have not seen home delivery business in one of its supermarkets.</li>
<li>Also see <a href="https://www.smartkarma.com/insights/wm-tech-pre-ipo-digitalization-efforts-coming-through-but-not-well-substantiated" target="_blank" data-smartkarma-citation="insights:52007" rel="noopener">WM Tech Pre-IPO - Digitalization Efforts Coming Through but Not Well Substantiated</a> by <a href="https://www.smartkarma.com/profiles/zhen-zhou-toh" target="_blank" data-smartkarma-citation="accounts:673" rel="noopener">Zhen Zhou, Toh</a>. </li>
</ul>


Here in Shanghai Wumart convenience stores have already been closed.
Wumart supermarkets do not have advantageous locations.
We have not seen home delivery business in one of its supermarkets.
Also see WM Tech Pre-IPO - Digitalization Efforts Coming Through but Not Well Substantiated by Zhen Zhou, Toh. 


WM Tech Pre-IPO: Wumart as Main Brand, Marginalized on the Ground

<ul>
<li>Revenue accelerated in 4Q21, even excluding the acquisition of Sun Art.</li>
<li>Operating profit increased YoY after adding back the anti-monopoly fine.</li>
<li>The stock price has fallen significantly from its high this year.</li>
<li>We set an upside of 18%.</li>
</ul>Our previous coverage on Alibaba:<ul>
<li>
<a href="https://www.smartkarma.com/insights/alibaba-baba-opens-store-in-tencent-wechat-a-surrender" target="_blank" data-smartkarma-citation="insights:50590" rel="noopener">Alibaba (BABA): Opens Store in Tencent WeChat - A Surrender</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/alibaba-baba-fined-2-78-billion-for-either-or-but-impact-is-neither-big-nor-long-term" target="_blank" data-smartkarma-citation="insights:50213" rel="noopener">Alibaba (BABA): Fined $2.78 Billion for “Either Or”, But Impact Is Neither Big Nor Long Term</a> </li>
</ul>


Revenue accelerated in 4Q21, even excluding the acquisition of Sun Art.
Operating profit increased YoY after adding back the anti-monopoly fine.
The stock price has fallen significantly from its high this year.
We set an upside of 18%.
Our previous coverage on Alibaba:

Alibaba (BABA): Opens Store in Tencent WeChat - A Surrender 

Alibaba (BABA): Fined $2.78 Billion for “Either Or”, But Impact Is Neither Big Nor Long Term 


Alibaba (BABA): 4Q21 Result, Not as Bad as It Looks

China

Sun Art Retail Group operates hypermarkets, superstores, and membership stores under the RT-Mart, RT-Super, and M-Club brands, alongside online sales channels in the People's Republic of China. The company also provides consulting, investment, procurement, wholesaling, and retailing services. The Group was established on December 13, 2000, and is headquartered in Hong Kong.

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Sun Art Retail Group (6808 HK)

WM Tech Pre-IPO - Peer Comparison and Pre-IPO Valuation - Some Signs of Advantage

WM Tech (WMT) is a fresh food and FMCG retailer in China. The company operates its business primarily through two brands, Wumart (物美) and Metro (麦德龙).

Zhen Zhou, Toh

Alibaba – Have Consensus Forecasts Finally Bottomed?

For the first time in months, our EBIT and EPS forecasts are not dramatically lower than consensus and while we see scope for some EBIT downgrades,...

Rickin Thakrar

Dingdong (叮咚买菜): Fresh Food Competition in and Outside of Frontline Warehouse

Dingdong has the most app active users among all fresh food retailers. Frontline warehouses are closer to customers, but have low margin....

Ming Lu

WM Tech Pre-IPO: Wumart as Main Brand, Marginalized on the Ground

Here in Shanghai Wumart convenience stores have already been closed.Wumart supermarkets do not have advantageous locations.We have not seen home...

Ming Lu

Alibaba (BABA): 4Q21 Result, Not as Bad as It Looks

Revenue accelerated in 4Q21, even excluding the acquisition of Sun Art. Operating profit increased YoY after adding back the anti-monopoly fine.

Ming Lu

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