Insurance, Fintech & EM-focused Analyst, KT Capital Group, KT Capital Group

Alec Tseung

Insurance, Fintech & EM-focused Analyst, KT Capital Group

Equity Bottom-Up

Lifenet Insurance Company / Equity Bottom-Up

We have discussed the more detailed investment thesis and financial analysis in our previous note (<a href="https://www.smartkarma.com/insights/lifenet-a-rejuvenated-insurtech-story-in-japan" target="_blank" data-smartkarma-citation="insights:53842" rel="noopener">Lifenet: A Rejuvenated InsurTech Story in Japan)</a>. In this brief note, we will focus more on its recent partnership and “platformization” strategy and why this could be a future catalyst.

We have discussed the more detailed investment thesis and financial analysis in our previous note (Lifenet: A Rejuvenated InsurTech Story in Japan). In this brief note, we will focus more on its recent partnership and “platformization” strategy and why this could be a future catalyst.

Lifenet: "Platformization" To Potentially Drive the Next Phase of Growth

APAC IPOs & Placements, Aequitas Research

Clarence Chu

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

<a href="https://www.smartkarma.com/entities/uju-holding" target="_blank" data-smartkarma-citation="entities:34824:1" rel="noopener">Uju Holding (1948 HK)</a> is looking to raise up to US$141m in its Hong Kong IPO.Uju Holding is a one-stop cross media online marketing solutions provider that works with media partners to market its advertiser customer’s products and/or services. Incorporated in 2018, the firm contributed approximately 1.1% of the total marketing gross billing of China’s online marketing market in 2020, as per iResearch. For FY20 and 4M21, the firm had worked with 1,028 and 651 advertiser customers and 32 and 21 media partners, respectively. During its track period, Uju Holding has recorded strong growth in its operating numbers and topline has followed closely as well. Its U-Engine platform, launched in 2020 could change the dynamics with its advertiser customers and improve efficiency. Cornerstones are also noteworthy and could aid sentiment but isn’t a large amount nonetheless. However, margins have been falling and the firm’s business model centers around a small number of participants. Combined with operating in a fragmented market, margins could be further compressed.

Uju Holding (1948 HK) is looking to raise up to US$141m in its Hong Kong IPO.Uju Holding is a one-stop cross media online marketing solutions provider that works with media partners to market its advertiser customer’s products and/or services. Incorporated in 2018, the firm contributed approximately 1.1% of the total marketing gross billing of China’s online marketing market in 2020, as per iResearch. For FY20 and 4M21, the firm had worked with 1,028 and 651 advertiser customers and 32 and 21 media partners, respectively. During its track period, Uju Holding has recorded strong growth in its operating numbers and topline has followed closely as well. Its U-Engine platform, launched in 2020 could change the dynamics with its advertiser customers and improve efficiency. Cornerstones are also noteworthy and could aid sentiment but isn’t a large amount nonetheless. However, margins have been falling and the firm’s business model centers around a small number of participants. Combined with operating in a fragmented market, margins could be further compressed.

Uju Holding IPO - Asking Valuation Is a Stretch

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

PB Fintech (PBF), India’s largest online platform for insurance and lending products, aims to raise up to US$793m via selling a mix of primary and secondary shares in its India IPO. The company is backed by a strong set of investors including Info Edge, Tencent, Temasek, Tiger Global and Softbank.The company operates two platforms: Policybazaar operates in India’s online insurance product and service industry; and Paisabazaar platform operates in India’s online credit industry. As per Frost &amp; Sullivan, the company is a leader in the online sphere in both segments. Despite Paisabazaar having taken a hit due to COVID-19, the company has managed to grow its revenue by 80% over FY19-21. In addition, it has been able to rein in expenses as well leading to an improvement in margins. Although, it was still making losses in FY21. On the flip side, its growth has come on the back of large ad spending and given the transactional nature of both of its platforms combined with the increase in competition, its ad spending will probably remain high. We have covered most aspects of the deal in our previous notes,  <a href="https://www.smartkarma.com/insights/pb-fintech-policybazaar-pre-ipo-the-positives-fast-growth" target="_blank" rel="noopener">PB Fintech (Policybazaar) Pre-IPO - The Positives - Fast Growth</a> and <a href="https://www.smartkarma.com/insights/pb-fintech-policybazaar-pre-ipo-the-negatives-patchy-data-strategy-missteps" target="_blank" rel="noopener">PB Fintech (Policybazaar) Pre-IPO - The Negatives - Patchy Data, Strategy Missteps</a>.In this note, we will talk about updates since our last note and valuations.

PB Fintech (PBF), India’s largest online platform for insurance and lending products, aims to raise up to US$793m via selling a mix of primary and secondary shares in its India IPO. The company is backed by a strong set of investors including Info Edge, Tencent, Temasek, Tiger Global and Softbank.The company operates two platforms: Policybazaar operates in India’s online insurance product and service industry; and Paisabazaar platform operates in India’s online credit industry. As per Frost &amp; Sullivan, the company is a leader in the online sphere in both segments. Despite Paisabazaar having taken a hit due to COVID-19, the company has managed to grow its revenue by 80% over FY19-21. In addition, it has been able to rein in expenses as well leading to an improvement in margins. Although, it was still making losses in FY21. On the flip side, its growth has come on the back of large ad spending and given the transactional nature of both of its platforms combined with the increase in competition, its ad spending will probably remain high. We have covered most aspects of the deal in our previous notes,  PB Fintech (Policybazaar) Pre-IPO - The Positives - Fast Growth and PB Fintech (Policybazaar) Pre-IPO - The Negatives - Patchy Data, Strategy Missteps.In this note, we will talk about updates since our last note and valuations.

PB Fintech (Policybazaar) IPO - Increasing Competition Will Keep Ad Spending High

Li Ning aims to raise around US$1bn via a top-up placement in Hong Kong. The company has been doing well over the past year and most of the past deals in the name have done well too.We have covered the previous placements in:<ul>
<li dir="ltr" aria-level="1">
<a href="https://www.smartkarma.com/insights/li-ning-placement-viva-china-selling-small-deal-size-and-overhang-is-manageable" target="_blank" data-smartkarma-citation="insights:37995" rel="noopener">Li Ning Placement - Viva China Selling - Small Deal Size and Overhang Is Manageable</a> </li>
<li dir="ltr" aria-level="1"><a href="https://www.smartkarma.com/insights/li-ning-placement-expectations-adjusted-overhang-removed" target="_blank" data-smartkarma-citation="insights:11323" rel="noopener">Li Ning Placement - Expectations Adjusted, Overhang Removed</a></li>
<li dir="ltr" aria-level="1"><a href="https://www.smartkarma.com/insights/li-ning-just-the-start-of-tpg-exit" target="_blank" data-smartkarma-citation="insights:8239" rel="noopener">Li Ning - Just the Start of TPG Exit</a></li>
</ul>

Li Ning aims to raise around US$1bn via a top-up placement in Hong Kong. The company has been doing well over the past year and most of the past deals in the name have done well too.We have covered the previous placements in:

Li Ning Placement - Viva China Selling - Small Deal Size and Overhang Is Manageable 
Li Ning Placement - Expectations Adjusted, Overhang Removed
Li Ning - Just the Start of TPG Exit


Li Ning Placement - Momentum Remains Strong. Past Deals Have Done Well.

FSN E-Commerce Ventures (Nykaa) / Equity Capital Markets

FSN E-commerce (Nykaa) aims to raise around US$720m, via selling a mix of primary and secondary shares in its Indian IPO. Nykaa is a lifestyle focussed e-commerce platform and consumer brand offering a portfolio of beauty, personal care and fashion products, including its own branded products. As per RedSeer, it was the largest Specialty Beauty and Personal Care Platform in India in terms of value of products sold in FY21.As of March 21, it had 43.7m cumulative downloads across all its mobile applications. Its offline channel comprises 73 physical stores across 38 cities in India. It reported a gross merchandise value (GMV) of INR40,459.8m (around US$550m) in FY21. Nykaa’s GMV, revenue and gross profit have more than doubled over FY19-21, even though the company suffered from a drop in orders due to COVID-19 in 4Q20 and 1Q21. Overall, GMV grew by 62.7% in FY20 and 50.7% in FY21. Revenue growth has broadly kept pace with GMV growth while the company has managed to turn a profit in FY21. We have looked at various aspects of the deal in our previous note,<a href="https://www.smartkarma.com/insights/fsn-e-commerce-nykaa-pre-ipo-mixed-bag-fashion-growing-beauty-slowing" target="_blank" rel="noopener"> FSN E-Commerce (Nykaa) Pre-IPO - Mixed bag - Fashion growing, beauty slowing</a>. In this note, we will talk about valuations.

FSN E-commerce (Nykaa) aims to raise around US$720m, via selling a mix of primary and secondary shares in its Indian IPO. Nykaa is a lifestyle focussed e-commerce platform and consumer brand offering a portfolio of beauty, personal care and fashion products, including its own branded products. As per RedSeer, it was the largest Specialty Beauty and Personal Care Platform in India in terms of value of products sold in FY21.As of March 21, it had 43.7m cumulative downloads across all its mobile applications. Its offline channel comprises 73 physical stores across 38 cities in India. It reported a gross merchandise value (GMV) of INR40,459.8m (around US$550m) in FY21. Nykaa’s GMV, revenue and gross profit have more than doubled over FY19-21, even though the company suffered from a drop in orders due to COVID-19 in 4Q20 and 1Q21. Overall, GMV grew by 62.7% in FY20 and 50.7% in FY21. Revenue growth has broadly kept pace with GMV growth while the company has managed to turn a profit in FY21. We have looked at various aspects of the deal in our previous note, FSN E-Commerce (Nykaa) Pre-IPO - Mixed bag - Fashion growing, beauty slowing. In this note, we will talk about valuations.

FSN E-Commerce (Nykaa) IPO - Beauty Showing Signs of Improvement but Its Too Expensive for Our Taste

China

Tencent Holdings Limited operates as an investment holding company. The Company, through its subsidiaries, provides Internet and mobile value-added services (VAS), online advertising, and e-commerce transactions. Tencent Holdings offers services to users worldwide.

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Tencent Holdings (ADR) (TCEHY US)

Lifenet: "Platformization" To Potentially Drive the Next Phase of Growth

Lifenet's "platformization" strategy could supplement its current business model and drive future growth as global Fintech development moves into a...

Alec Tseung

Uju Holding IPO - Asking Valuation Is a Stretch

Uju Holding (1948 HK) is looking to raise up to US$141m in its Hong Kong IPO. Uju Holding is a cross media online marketing solutions provider that...

Clarence Chu

PB Fintech (Policybazaar) IPO - Increasing Competition Will Keep Ad Spending High

PB Fintech, India’s largest online platform for insurance and lending products, aims to raise up to US$793m in its India IPO. The company is backed...

Sumeet Singh

Li Ning Placement - Momentum Remains Strong. Past Deals Have Done Well.

Li Ning aims to raise around US$1bn via a top-up placement in Hong Kong. The company has been doing well over the past year and most of the past...

Sumeet Singh

FSN E-Commerce (Nykaa) IPO - Beauty Showing Signs of Improvement but Its Too Expensive for Our Taste

FSN E-commerce (Nykaa) aims to raise around US$720m in its Indian IPO. In this note, we will look at the recent updates and valuation.

Sumeet Singh

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