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.

Equity Capital Markets

<section><div id="ember4448">
<div><p><a href="https://www.smartkarma.com/entities/ant-financial-services-group" target="_blank" data-smartkarma-citation="entities:24240:1" rel="noopener">Ant Financial (1051260D CH)</a> plans to raise up to USD30bn (now said to be US$35bn) via a dual listing on both Hong Kong Exchange and Shanghai STAR board. </p></div>
<div><p>Ant Group is not only the largest third-party payment player in China, it is also the no.1 independent player in each of the three non-payment segments by key operating metrics. </p></div>
<div>
<p>We have provided our thoughts on Ant Group from as early as 2018. We have since looked at the company’s past performance, individual segments, some of the regulatory issues and compared its major segments to its peers.</p>
<p>In this insight, I'll run through my earnings forecast and talk about valuations.</p>
<p></p>
</div>
<div><div><h3>Our previous coverage on Ant Group</h3></div></div>
<div><ul style="list-style-type: disc;">
<li dir="ltr"><p><a href="https://www.smartkarma.com/insights/ant-financial-ipo-early-thought-what-s-new-about-the-listing-news" target="_blank" rel="noopener">Ant Financial IPO Early Thought: Understand the Fintech Empire, Growth and Risk Factors</a></p></li>
<li dir="ltr"><p><a href="https://www.smartkarma.com/insights/ant-financial-ipo-early-thought-understand-the-fintech-empire-growth-and-risk-factors" target="_blank" rel="noopener">Ant Financial (蚂蚁金服) IPO Early Thought: What’s New About the Listing News</a></p></li>
<li dir="ltr"><a href="https://www.smartkarma.com/insights/ant-group-ipo-first-take-no-1-fintech-from-all-angles" target="_blank" rel="noopener">Ant Group (蚂蚁集团) IPO First-Take: No. 1 Fintech from All Angles</a></li>
<li dir="ltr"><a href="https://www.smartkarma.com/insights/ant-group-ipo-numbers-suggest-it-s-more-tech-than-financials" target="_blank" rel="noopener">Ant Group (蚂蚁集团) IPO: Numbers Suggest It’s More Tech than Financials</a></li>
<li dir="ltr"><a href="https://www.smartkarma.com/insights/ant-group-pre-ipo-things-to-clarify-questions-to-ask-falling-fees-margins-cash-flow" target="_blank" rel="noopener">Ant Group (蚂蚁集团) Pre-IPO: Things to Clarify/​Questions to Ask - Falling Fees, Margins, Cash Flow</a></li>
<li dir="ltr"><a href="https://www.smartkarma.com/insights/ant-group-pre-ipo-dual-listing-makes-early-index-inclusion-tricky" target="_blank" rel="noopener">Ant Group (蚂蚁集团) Pre-IPO: Dual Listing Makes Early Index Inclusion Tricky</a></li>
<li><a href="https://www.smartkarma.com/insights/alipay-s-advantage-over-wechat-pay-in-physical-stores" target="_blank" rel="noopener">AliPay’s Advantage over WeChat Pay in Physical Stores</a></li>
</ul></div>
<div><ul style="list-style-type: disc;">
<li><a href="https://www.smartkarma.com/insights/ant-group-running-neck-and-neck-with-tencent-in-direct-financial-services" target="_blank" rel="noopener">Ant Group (蚂蚁集团) Running Neck and Neck with Tencent in Direct Financial Services</a></li>
<li><a href="https://www.smartkarma.com/insights/ant-group-pre-ipo-impact-assessment-of-the-new-rule-for-financial-holding-companies" target="_blank" rel="noopener">Ant Group (蚂蚁集团) Pre-IPO: Impact Assessment of the New Rule for Financial Holding Companies</a></li>
<li><a href="https://www.smartkarma.com/insights/ant-group-pre-ipo-peer-comparison-payments-baffling-scale-small-tweaks-for-large-profits" target="_blank" rel="noopener">Ant Group Pre-IPO: Peer Comparison - Payments - Baffling Scale, Small Tweaks for Large Profits</a></li>
<li><a href="https://www.smartkarma.com/insights/ant-group-pre-ipo-peer-comparison-credittech-larger-scale-similar-growth-lower-credit-risk" target="_blank" rel="noopener">Ant Group Pre-IPO: Peer Comparison - CreditTech - Larger Scale, Similar Growth, Lower Credit Risk</a></li>
</ul></div>
</div></section>


Ant Financial (1051260D CH) plans to raise up to USD30bn (now said to be US$35bn) via a dual listing on both Hong Kong Exchange and Shanghai STAR board. 
Ant Group is not only the largest third-party payment player in China, it is also the no.1 independent player in each of the three non-payment segments by key operating metrics. 

We have provided our thoughts on Ant Group from as early as 2018. We have since looked at the company’s past performance, individual segments, some of the regulatory issues and compared its major segments to its peers.
In this insight, I'll run through my earnings forecast and talk about valuations.


Our previous coverage on Ant Group

Ant Financial IPO Early Thought: Understand the Fintech Empire, Growth and Risk Factors
Ant Financial (蚂蚁金服) IPO Early Thought: What’s New About the Listing News
Ant Group (蚂蚁集团) IPO First-Take: No. 1 Fintech from All Angles
Ant Group (蚂蚁集团) IPO: Numbers Suggest It’s More Tech than Financials
Ant Group (蚂蚁集团) Pre-IPO: Things to Clarify/​Questions to Ask - Falling Fees, Margins, Cash Flow
Ant Group (蚂蚁集团) Pre-IPO: Dual Listing Makes Early Index Inclusion Tricky
AliPay’s Advantage over WeChat Pay in Physical Stores


Ant Group (蚂蚁集团) Running Neck and Neck with Tencent in Direct Financial Services
Ant Group (蚂蚁集团) Pre-IPO: Impact Assessment of the New Rule for Financial Holding Companies
Ant Group Pre-IPO: Peer Comparison - Payments - Baffling Scale, Small Tweaks for Large Profits
Ant Group Pre-IPO: Peer Comparison - CreditTech - Larger Scale, Similar Growth, Lower Credit Risk



Ant Group Pre-IPO: First Stab at Valuation

ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN Insight Provider

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

Private Capital Markets

GoTo Gojek Tokopedia Tbk PT / Private Capital Markets

<p>Recent news suggests that <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab (0967655D SP)</a> and <a href="https://www.smartkarma.com/entities/gojek" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">Gojek (1379371D IJ)</a> have restarted discussions on a possible merger backed by SoftBank CEO and founder Masayoshi Son. Our view is that it seems this ride-hailing mega-merger becomes less-likely should <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba Group (BABA US)</a> take a stake in <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab (0967655D SP)</a>. It was recently reported that it would invest US$3bn into the ride-hailing company, with some of this stake potentially coming out of <a href="https://www.smartkarma.com/entities/uber-technologies-inc" target="_blank" data-smartkarma-citation="entities:430:1" rel="noopener">Uber (UBER US).</a></p>
<p>Quite apart from the fact that <a href="https://www.smartkarma.com/entities/gojek" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">Gojek (1379371D IJ)</a> has only recently received investment from <a href="https://www.smartkarma.com/entities/facebook-inc-a" target="_blank" data-smartkarma-citation="entities:665:1" rel="noopener">Facebook Inc A (FB US)</a> and <a href="https://www.smartkarma.com/entities/paypal-holdings-inc" target="_blank" data-smartkarma-citation="entities:4747:1" rel="noopener">Paypal Holdings (PYPL US),</a> the company is also viewed as a  national champion in Indonesia, with high-profile shareholders such as <a href="https://www.smartkarma.com/entities/astra-international-tbk-pt" target="_blank" data-smartkarma-citation="entities:46:1" rel="noopener">Astra International (ASII IJ)</a> and Djarum Group, who may object to the deal, under which <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab (0967655D SP)</a> may come out on top being the bigger company currently, in terms of recent valuations. </p>
<p>There has been much debate surrounding the incessant competition between so-called Super Apps Indonesia-based <a href="https://www.smartkarma.com/entities/gojek" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">Gojek (1379371D IJ)</a> and Singapore headquartered <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab (0967655D SP),</a> as they vie for position in the former's home market and across the rest of South-East Asia.  Although originally both App-based ride-hailing companies, both now offer a much wider variety of services including food-delivery and crucially, digital payments, and other financial services. Gojek through Go-Pay and Grab through GrabPay regionally, and OVO in Indonesia, where it has a stake. </p>
<p><a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a> backed <a href="https://www.smartkarma.com/entities/gojek" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">Gojek (1379371D IJ)</a> dominates in its home market of Indonesia, which makes up 90% of its revenues but it is also presenting some challenges to Grab in Singapore, Thailand, and Vietnam and possibly soon to be the Philippines and even Malaysia. </p>
<p><a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab (0967655D SP)</a> has been making in-roads into the App-based motorcycle and taxi business in Indonesia, as well as the food-delivery business through GrabFood with the use of heavy promotions and subsidies. Given a more recent focus on profitability plus the impact of COVID-19 PSBB (large scale social distancing) measures on all businesses, especially ride-hailing, it is undoubtedly feeling the pressure in Indonesia.</p>
<p>Both companies have formidable funding war chests, with <a href="https://www.smartkarma.com/entities/gojek" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">Gojek (1379371D IJ)</a> managing to complete its latest US$2.5bn round in the midst of the pandemic and topping this up again only a couple of months ago. Grab raised a whopping US$4.5bn in its last round and potentially another US$3bn round from <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba Group (BABA US)</a> though some of this may be existing shares. </p>
<p>In some ways, money is not the issue and it is the winning strategy that counts. <a href="https://www.smartkarma.com/entities/gojek" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">Gojek (1379371D IJ)</a> has a history of frugality but has made a number of missteps in the last year, withdrawing some of its GoLife services, withdrawing GoMart, and a failed attempt at entering the Philippines. <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab (0967655D SP)</a> has been very aggressive in providing subsidies in its food businesses in Indonesia to gain share. It remains to be seen how this approach will pan out in the longer-term, especially in light of COVID-19, which has hit ride-hailing hard.</p>
<p>Future funding is another longer-term issue, despite the recent amounts that have been raised. In this respect, <a href="https://www.smartkarma.com/entities/gojek" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">Gojek (1379371D IJ)</a> is better positioned after its very recent funding round, which brought in <a href="https://www.smartkarma.com/entities/facebook-inc-a" target="_blank" data-smartkarma-citation="entities:665:1" rel="noopener">Facebook Inc A (FB US)</a> and <a href="https://www.smartkarma.com/entities/paypal-holdings-inc" target="_blank" data-smartkarma-citation="entities:4747:1" rel="noopener">Paypal Holdings (PYPL US)</a>. For <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab (0967655D SP)</a>, it was less certain until recently, at a time when Softbank is reeling from the WeWork and OYO experiences. Valuations of global comparable such as <a href="https://www.smartkarma.com/entities/uber-technologies-inc" target="_blank" data-smartkarma-citation="entities:430:1" rel="noopener">Uber (UBER US)</a> and <a href="https://www.smartkarma.com/entities/lyft-inc" target="_blank" data-smartkarma-citation="entities:24423:1" rel="noopener">Lyft Inc (LYFT US)</a> have also come under pressure, which suggests that we could see some markdown on <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab (0967655D SP),</a> especially with its higher exposure to ride-hailing. </p>

Recent news suggests that Grab (0967655D SP) and Gojek (1379371D IJ) have restarted discussions on a possible merger backed by SoftBank CEO and founder Masayoshi Son. Our view is that it seems this ride-hailing mega-merger becomes less-likely should Alibaba Group (BABA US) take a stake in Grab (0967655D SP). It was recently reported that it would invest US$3bn into the ride-hailing company, with some of this stake potentially coming out of Uber (UBER US).
Quite apart from the fact that Gojek (1379371D IJ) has only recently received investment from Facebook Inc A (FB US) and Paypal Holdings (PYPL US), the company is also viewed as a  national champion in Indonesia, with high-profile shareholders such as Astra International (ASII IJ) and Djarum Group, who may object to the deal, under which Grab (0967655D SP) may come out on top being the bigger company currently, in terms of recent valuations. 
There has been much debate surrounding the incessant competition between so-called Super Apps Indonesia-based Gojek (1379371D IJ) and Singapore headquartered Grab (0967655D SP), as they vie for position in the former's home market and across the rest of South-East Asia.  Although originally both App-based ride-hailing companies, both now offer a much wider variety of services including food-delivery and crucially, digital payments, and other financial services. Gojek through Go-Pay and Grab through GrabPay regionally, and OVO in Indonesia, where it has a stake. 
Tencent Holdings (700 HK) backed Gojek (1379371D IJ) dominates in its home market of Indonesia, which makes up 90% of its revenues but it is also presenting some challenges to Grab in Singapore, Thailand, and Vietnam and possibly soon to be the Philippines and even Malaysia. 
Grab (0967655D SP) has been making in-roads into the App-based motorcycle and taxi business in Indonesia, as well as the food-delivery business through GrabFood with the use of heavy promotions and subsidies. Given a more recent focus on profitability plus the impact of COVID-19 PSBB (large scale social distancing) measures on all businesses, especially ride-hailing, it is undoubtedly feeling the pressure in Indonesia.
Both companies have formidable funding war chests, with Gojek (1379371D IJ) managing to complete its latest US$2.5bn round in the midst of the pandemic and topping this up again only a couple of months ago. Grab raised a whopping US$4.5bn in its last round and potentially another US$3bn round from Alibaba Group (BABA US) though some of this may be existing shares. 
In some ways, money is not the issue and it is the winning strategy that counts. Gojek (1379371D IJ) has a history of frugality but has made a number of missteps in the last year, withdrawing some of its GoLife services, withdrawing GoMart, and a failed attempt at entering the Philippines. Grab (0967655D SP) has been very aggressive in providing subsidies in its food businesses in Indonesia to gain share. It remains to be seen how this approach will pan out in the longer-term, especially in light of COVID-19, which has hit ride-hailing hard.
Future funding is another longer-term issue, despite the recent amounts that have been raised. In this respect, Gojek (1379371D IJ) is better positioned after its very recent funding round, which brought in Facebook Inc A (FB US) and Paypal Holdings (PYPL US). For Grab (0967655D SP), it was less certain until recently, at a time when Softbank is reeling from the WeWork and OYO experiences. Valuations of global comparable such as Uber (UBER US) and Lyft Inc (LYFT US) have also come under pressure, which suggests that we could see some markdown on Grab (0967655D SP), especially with its higher exposure to ride-hailing. 

Gojek and Grab - A Merger of the Super Apps on the Offing? We Think Not.

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<section>
<div id="ember8709">
<div>
<p>On the 27 August, Leyou <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0827/2020082701826.pdf" target="_blank" rel="noopener">announced</a> a Scheme from <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a> at $3.3219/share.</p>
</div>
<div>
<p>The Offer Price represents a 30.27% premium over the closing price of HK$2.55/share on 19 September 2019, which was the last trading day prior to Leyou's <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0525/2020052501310.pdf" target="_blank" rel="noopener">announcing</a> it was in preliminary discussions with various independent potential investors.</p>
</div>
<div>
<p>Irrevocables in favour of the Scheme total 70.02% of shares out - primarily comprising Charles Yuk's stake - and the Scheme is conditional on 75% of shares out voting in favour of the Scheme.  Disinterested Shareholders comprise <em>all </em>shares out. Therefore the blocking stake at the Scheme Meeting is 308.5mn shares or 10% of shares out. No single shareholder has such a blocking stake. The headcount test applies as Leyou is Cayman-incorporated. </p>
</div>
<div>
<p>This looks done.</p>
<p>But politics can be a fickle beast. Social media app WeChat was in Trump's crosshairs over what is deemed a possible risk to the national security of the US, concerning personal information making its way to China.  That perceived data risk has now spilled over into gaming platforms operating in the US.</p>
<p>Leyou's shares wobbled a little after gaming companies were asked by Committee on Foreign Investment in the United States (CFIUS) on their security protocols in handling Americans' personal data.</p>
</div>
<div>
<p>Shares have now righted themselves - and indeed  - trade closer to terms. </p>
<p>As always, more below the fold.</p>
</div>
</div>
</section>




On the 27 August, Leyou announced a Scheme from Tencent Holdings (700 HK) at $3.3219/share.


The Offer Price represents a 30.27% premium over the closing price of HK$2.55/share on 19 September 2019, which was the last trading day prior to Leyou's announcing it was in preliminary discussions with various independent potential investors.


Irrevocables in favour of the Scheme total 70.02% of shares out - primarily comprising Charles Yuk's stake - and the Scheme is conditional on 75% of shares out voting in favour of the Scheme.  Disinterested Shareholders comprise all shares out. Therefore the blocking stake at the Scheme Meeting is 308.5mn shares or 10% of shares out. No single shareholder has such a blocking stake. The headcount test applies as Leyou is Cayman-incorporated. 


This looks done.
But politics can be a fickle beast. Social media app WeChat was in Trump's crosshairs over what is deemed a possible risk to the national security of the US, concerning personal information making its way to China.  That perceived data risk has now spilled over into gaming platforms operating in the US.
Leyou's shares wobbled a little after gaming companies were asked by Committee on Foreign Investment in the United States (CFIUS) on their security protocols in handling Americans' personal data.


Shares have now righted themselves - and indeed  - trade closer to terms. 
As always, more below the fold.




Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

<ul>
<li>Two misunderstandings about JD Digits are widely spread.</li>
<li>JD Digits is controlled by JD.com’s founder, but is not a subsidiary of JD.com.</li>
<li>JD Digits is a B2C company, but not a B2B company, no matter how the company describes itself.</li>
</ul>


Two misunderstandings about JD Digits are widely spread.
JD Digits is controlled by JD.com’s founder, but is not a subsidiary of JD.com.
JD Digits is a B2C company, but not a B2B company, no matter how the company describes itself.


JD Digits: Wide Misunderstandings About Financial Partner of JD.com

<div><p><a href="https://www.smartkarma.com/entities/ant-financial-services-group" target="_blank" data-smartkarma-citation="entities:24240:1" rel="noopener">Ant Financial (1051260D CH)</a> plans to raise up to USD30bn (now said to be US$35bn) via a dual listing on both Hong Kong Exchange and Shanghai STAR board. </p></div><div><p>Ant Group is not only the largest third-party payment player in China, it is also the no.1 independent player in each of the three non-payment segments by key operating metrics. </p></div><div>
<p>We have provided our thoughts on Ant Group from as early as 2018. We have since looked at the company’s past performance, individual segments and some of the regulatory issues.</p>
<p>In my previous note, <a href="https://www.smartkarma.com/insights/ant-group-pre-ipo-peer-comparison-payments-baffling-scale-small-tweaks-for-large-profits" target="_blank" rel="noopener">Ant Group Pre-IPO: Peer Comparison - Payments - Baffling Scale, Small Tweaks for Large Profits</a>, I compared Ant's payment segment with some of the listed international players. In this note, I’ll compare the company with some of its peers in the CreditTech segment. </p>
<p></p>
</div><div><div><h3>Our previous coverage on Ant Group</h3></div></div><div><ul style="list-style-type: disc;">
<li dir="ltr"><p><a href="https://www.smartkarma.com/insights/ant-financial-ipo-early-thought-what-s-new-about-the-listing-news" target="_blank" rel="noopener">Ant Financial IPO Early Thought: Understand the Fintech Empire, Growth and Risk Factors</a></p></li>
<li dir="ltr"><p><a href="https://www.smartkarma.com/insights/ant-financial-ipo-early-thought-understand-the-fintech-empire-growth-and-risk-factors" target="_blank" rel="noopener">Ant Financial (蚂蚁金服) IPO Early Thought: What’s New About the Listing News</a></p></li>
<li dir="ltr"><a href="https://www.smartkarma.com/insights/ant-group-ipo-first-take-no-1-fintech-from-all-angles" target="_blank" rel="noopener">Ant Group (蚂蚁集团) IPO First-Take: No. 1 Fintech from All Angles</a></li>
<li dir="ltr"><a href="https://www.smartkarma.com/insights/ant-group-ipo-numbers-suggest-it-s-more-tech-than-financials" target="_blank" rel="noopener">Ant Group (蚂蚁集团) IPO: Numbers Suggest It’s More Tech than Financials</a></li>
<li dir="ltr"><a href="https://www.smartkarma.com/insights/ant-group-pre-ipo-things-to-clarify-questions-to-ask-falling-fees-margins-cash-flow" target="_blank" rel="noopener">Ant Group (蚂蚁集团) Pre-IPO: Things to Clarify/​Questions to Ask - Falling Fees, Margins, Cash Flow</a></li>
<li dir="ltr"><a href="https://www.smartkarma.com/insights/ant-group-pre-ipo-dual-listing-makes-early-index-inclusion-tricky" target="_blank" rel="noopener">Ant Group (蚂蚁集团) Pre-IPO: Dual Listing Makes Early Index Inclusion Tricky</a></li>
<li><a href="https://www.smartkarma.com/insights/alipay-s-advantage-over-wechat-pay-in-physical-stores" target="_blank" rel="noopener">AliPay’s Advantage over WeChat Pay in Physical Stores</a></li>
</ul></div><div><ul style="list-style-type: disc;">
<li><a href="https://www.smartkarma.com/insights/ant-group-running-neck-and-neck-with-tencent-in-direct-financial-services" target="_blank" rel="noopener">Ant Group (蚂蚁集团) Running Neck and Neck with Tencent in Direct Financial Services</a></li>
<li><a href="https://www.smartkarma.com/insights/ant-group-pre-ipo-impact-assessment-of-the-new-rule-for-financial-holding-companies" target="_blank" rel="noopener">Ant Group (蚂蚁集团) Pre-IPO: Impact Assessment of the New Rule for Financial Holding Companies</a></li>
<li><a href="https://www.smartkarma.com/insights/ant-group-pre-ipo-peer-comparison-payments-baffling-scale-small-tweaks-for-large-profits" target="_blank" rel="noopener">Ant Group Pre-IPO: Peer Comparison - Payments - Baffling Scale, Small Tweaks for Large Profits</a></li>
</ul></div>

Ant Financial (1051260D CH) plans to raise up to USD30bn (now said to be US$35bn) via a dual listing on both Hong Kong Exchange and Shanghai STAR board. Ant Group is not only the largest third-party payment player in China, it is also the no.1 independent player in each of the three non-payment segments by key operating metrics. 
We have provided our thoughts on Ant Group from as early as 2018. We have since looked at the company’s past performance, individual segments and some of the regulatory issues.
In my previous note, Ant Group Pre-IPO: Peer Comparison - Payments - Baffling Scale, Small Tweaks for Large Profits, I compared Ant's payment segment with some of the listed international players. In this note, I’ll compare the company with some of its peers in the CreditTech segment. 

Our previous coverage on Ant Group
Ant Financial IPO Early Thought: Understand the Fintech Empire, Growth and Risk Factors
Ant Financial (蚂蚁金服) IPO Early Thought: What’s New About the Listing News
Ant Group (蚂蚁集团) IPO First-Take: No. 1 Fintech from All Angles
Ant Group (蚂蚁集团) IPO: Numbers Suggest It’s More Tech than Financials
Ant Group (蚂蚁集团) Pre-IPO: Things to Clarify/​Questions to Ask - Falling Fees, Margins, Cash Flow
Ant Group (蚂蚁集团) Pre-IPO: Dual Listing Makes Early Index Inclusion Tricky
AliPay’s Advantage over WeChat Pay in Physical Stores

Ant Group (蚂蚁集团) Running Neck and Neck with Tencent in Direct Financial Services
Ant Group (蚂蚁集团) Pre-IPO: Impact Assessment of the New Rule for Financial Holding Companies
Ant Group Pre-IPO: Peer Comparison - Payments - Baffling Scale, Small Tweaks for Large Profits


Ant Group Pre-IPO: Peer Comparison - CreditTech - Larger Scale, Similar Growth, Lower Credit Risk

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)

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Ant Group Pre-IPO: Peer Comparison - CreditTech - Larger Scale, Similar Growth, Lower Credit Risk

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Sumeet Singh

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