APAC IPOs & Placements, Aequitas Research

Nicholas Tan

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

<ul>
<li>
<a href="https://www.smartkarma.com/entities/three-squirrels" target="_blank" data-smartkarma-citation="entities:45113:1" rel="noopener">Three Squirrels (TRS HK)</a> is looking to raise around US$200m in its upcoming H-share listing.</li>
<li>It began selling nuts through e-commerce channels. Over the years, it had evolved significantly, growing from a single category nut brand into the largest domestic snack company in China.</li>
<li>In this note, we look at its past performance and other deal dynamics that might impact the listing.</li>
</ul>



Three Squirrels (TRS HK) is looking to raise around US$200m in its upcoming H-share listing.
It began selling nuts through e-commerce channels. Over the years, it had evolved significantly, growing from a single category nut brand into the largest domestic snack company in China.
In this note, we look at its past performance and other deal dynamics that might impact the listing.


Three Squirrels A/H Listing: Heavy Price Competition; Thin Margins

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>As the traffic dividend of e-commerce fades, Three Squirrels is facing challenges.The offline predicament is essentially a conflict between the online traffic thinking mode and the logic of physical retail. </li>
<li>Three Squirrels hasn’t built a true moat, and the high selling expenses would continue to erode the transformation space, leading to rely more on online channels and quick customer traffic.</li>
<li>We have concerns on the expansion outlook and growth sustainability. Our forecast is CAGR could be 15% in 2025-2027. Valuation may not meet expectations if growth continues to slow down.</li>
</ul>


As the traffic dividend of e-commerce fades, Three Squirrels is facing challenges.The offline predicament is essentially a conflict between the online traffic thinking mode and the logic of physical retail. 
Three Squirrels hasn’t built a true moat, and the high selling expenses would continue to erode the transformation space, leading to rely more on online channels and quick customer traffic.
We have concerns on the expansion outlook and growth sustainability. Our forecast is CAGR could be 15% in 2025-2027. Valuation may not meet expectations if growth continues to slow down.


Pre-IPO Three Squirrels - Pain Points of the Business Model and the Performance Outlook

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

<ul>
<li>Busy Ming Group, a founder-led food and beverage chain retailer in China with strong presence in third- and lower-tier cities, filed the updated Application Proof in October.</li>
<li>In the six months ended Jun-25, the company’s revenue was ~RMB28,124m, representing a year-over-year growth of ~87%. LTM net profit was ~RMB2,025m.</li>
<li>Busy Ming Group enjoys superior growth profile coupled with improving gross profit margins. The company ended Aug-25 with RMB3,393m net cash on the balance sheet.  </li>
</ul>


Busy Ming Group, a founder-led food and beverage chain retailer in China with strong presence in third- and lower-tier cities, filed the updated Application Proof in October.
In the six months ended Jun-25, the company’s revenue was ~RMB28,124m, representing a year-over-year growth of ~87%. LTM net profit was ~RMB2,025m.
Busy Ming Group enjoys superior growth profile coupled with improving gross profit margins. The company ended Aug-25 with RMB3,393m net cash on the balance sheet.  


Busy Ming IPO Update: Cash-Generating Machine With Improving Gross Margins, IPO Is on the Horizon

HK/China Equity Long-Short

Osbert Tang, CFA

Foshan Haitian Flavouring & Food Company / Equity Capital Markets

<ul>
<li>Hong Kong's IPO market has gathered momentum lately, especially with the overwhelming response to <a href="https://www.smartkarma.com/entities/contemporary-amperex-technology-catl-co-limited" target="_blank" data-smartkarma-citation="entities:45179:1" rel="noopener">CATL (3750 HK)</a>. Consumer IPOs are the next ones to gather interest. </li>
<li>
<a href="https://www.smartkarma.com/entities/foshan-haitian-flavouring-food-company" target="_blank" data-smartkarma-citation="entities:44279:1" rel="noopener">Foshan Haitian Flavouring &amp; Food Co (FHF HK)</a> is the most imminent one, potentially seeking up to US$1bn. Without significant peers in Hong Kong, it should attract good attention.</li>
<li>The other interesting ones include <a href="https://www.smartkarma.com/entities/zhou-liu-fu-jewellery-co-ltd" target="_blank" data-smartkarma-citation="entities:43706:1" rel="noopener">Zhou Liu Fu Jewellery Co., Ltd. (1716396D CH)</a>, <a href="https://www.smartkarma.com/entities/three-squirrels" target="_blank" data-smartkarma-citation="entities:45113:1" rel="noopener">Three Squirrels (TRS HK)</a>, and <a href="https://www.smartkarma.com/entities/eastroc-beverage-group-co-ltd-f3283290-a611-4cb4-8857-93101786e283" target="_blank" data-smartkarma-citation="entities:45048:1" rel="noopener">Eastroc Beverage Group (EBG HK)</a>. </li>
</ul>


Hong Kong's IPO market has gathered momentum lately, especially with the overwhelming response to CATL (3750 HK). Consumer IPOs are the next ones to gather interest. 

Foshan Haitian Flavouring &amp; Food Co (FHF HK) is the most imminent one, potentially seeking up to US$1bn. Without significant peers in Hong Kong, it should attract good attention.
The other interesting ones include Zhou Liu Fu Jewellery Co., Ltd. (1716396D CH), Three Squirrels (TRS HK), and Eastroc Beverage Group (EBG HK). 


HK Strategy: Some Consumer IPO Pipelines and Their Proxies

China

Three Squirrels Inc. manufactures and distributes food products. The Company produces roasted food products, nuts, candied fruits, and other products. Three Squirrels also provides daily necessities, office supplies, plastics, craft gifts, electronic products, and other products.

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Three Squirrels (TRS HK)

Three Squirrels A/H Listing: Heavy Price Competition; Thin Margins

Three Squirrels is looking to raise around US$200m in its upcoming H-share listing. In this note, we look at its past performance and other deal...

Nicholas Tan

Pre-IPO Three Squirrels - Pain Points of the Business Model and the Performance Outlook

Three Squirrels face challenges as e-commerce traffic declines, struggling to adapt offline.Concerns about growth sustainability remains.Valuation...

Xinyao (Criss) Wang

Busy Ming IPO Update: Cash-Generating Machine With Improving Gross Margins, IPO Is on the Horizon

Busy Ming Group is expected to IPO in Hong Kong soon. In my insight, I discuss in-depth analysis of business and operating metrics, IPO valuation...

Andrei Zakharov

HK Strategy: Some Consumer IPO Pipelines and Their Proxies

HK's IPO market gains momentum with CATL leading the way. Consumer IPOs like Foshan Haitian are next in line, attracting attention. Others include...

Osbert Tang, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Three Squirrels A/H Listing: Heavy Price Competition; Thin Margins

Three Squirrels is looking to raise around US$200m in its upcoming H-share listing. In this note, we look at its past performance and other deal...

Nicholas Tan

Pre-IPO Three Squirrels - Pain Points of the Business Model and the Performance Outlook

​Three Squirrels face challenges as e-commerce traffic declines, struggling to adapt offline.Concerns about growth sustainability remains.Valuation...

Xinyao (Criss) Wang

Busy Ming IPO Update: Cash-Generating Machine With Improving Gross Margins, IPO Is on the Horizon

Busy Ming Group is expected to IPO in Hong Kong soon. In my insight, I discuss in-depth analysis of business and operating metrics, IPO valuation...

Andrei Zakharov

HK Strategy: Some Consumer IPO Pipelines and Their Proxies

HK's IPO market gains momentum with CATL leading the way. Consumer IPOs like Foshan Haitian are next in line, attracting attention. Others include...

Osbert Tang, CFA

Three Squirrels face challenges as e-commerce traffic declines, struggling to adapt offline.Concerns about growth sustainability remains.Valuation...