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

Liuliu Orchard Group / Equity Capital Markets

<ul>
<li>Liuliu adopts a light asset model for cost control. Through OEM production model, Liuliu has avoided the risk of heavy asset investment, so its gross margin is higher than peers. </li>
<li>In the context of fierce competition, how to keep high performance growth while maintain profit margin is not easy.We’re not optimistic about Liuliu’s  "single product category + marketing/promotion driven" business model.</li>
<li>Sequoia ceased to be Liuliu’s Shareholder in 2025, right before this IPO, which is not a good signal. In our view, valuation of Liuliu should be lower than peers.</li>
</ul>


Liuliu adopts a light asset model for cost control. Through OEM production model, Liuliu has avoided the risk of heavy asset investment, so its gross margin is higher than peers. 
In the context of fierce competition, how to keep high performance growth while maintain profit margin is not easy.We’re not optimistic about Liuliu’s  "single product category + marketing/promotion driven" business model.
Sequoia ceased to be Liuliu’s Shareholder in 2025, right before this IPO, which is not a good signal. In our view, valuation of Liuliu should be lower than peers.


Pre-IPO Liuliu Orchard - Hard to Achieve High Growth Due to the Lack of Product Competitiveness

<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

Equity Analyst - Asia Consumer Sector, Investory

Devi Subhakesan

Equity Analyst - Asia Consumer Sector

ASIA CONSUMER: INSIGHTS AND INVESTMENT IDEAS

Investory

Investory is a Singapore-based boutique independent equity research firm founded in January 2017 with a primary focus on consumption themes across Asia-Pacific.

We aim to generate investible ideas based on consumption trends and outlook. We screen our ideas on several parameters - product potential, long-term growth and management commitment being the most critical.  We follow a fundamental analysis approach in our stock selection process and are not restricted by market cap.

We aspire to grow into a leading source of unbiased research, free of conflict of interest, for investors yearning for independent and disciplined analysis. 

We also undertake bespoke research mandates to support our Institutional clients’ investment needs.

Our team comprises of professionals with extensive experience in the Asian equity markets, in areas ranging from research, servicing institutional clients and investment management.

Anjoy Foods Group / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/anjoy-foods-group" target="_blank" data-smartkarma-citation="entities:44280:1" rel="noopener">Anjoy Foods Group (2648 HK)</a>, already listed in Shanghai, is offering 40 million shares in Hong Kong to raise up to HKD2.6 billion (USD335 million); Offer closes today, June 30th.</li>
<li>HK offer is priced at a decent discount to A share price and at valuation multiples that are aligned with its peer group and business fundamentals.</li>
<li>With limited organic growth and little evidence of a strategic pivot to higher-value offerings, Anjoy Foods lacks a compelling long term investment case.</li>
</ul>



Anjoy Foods Group (2648 HK), already listed in Shanghai, is offering 40 million shares in Hong Kong to raise up to HKD2.6 billion (USD335 million); Offer closes today, June 30th.
HK offer is priced at a decent discount to A share price and at valuation multiples that are aligned with its peer group and business fundamentals.
With limited organic growth and little evidence of a strategic pivot to higher-value offerings, Anjoy Foods lacks a compelling long term investment case.


Anjoy Foods Group HK Offer: Value Stock or Value Trap? Key Facts, Financials and Valuation

HK/China Equity Long-Short

Osbert Tang, CFA

Foshan Haitian Flavouring and Food / Equity Capital Markets

Foshan Haitian Flavouring and Food (3288 HK)

<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 (300783 CH)

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 Liuliu Orchard - Hard to Achieve High Growth Due to the Lack of Product Competitiveness

Liuliu's light asset model boost profit margin,but concerns on growth sustainability/Sequoia's exit raise question about IPO outlook.Valuation...

Xinyao (Criss) Wang

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

Anjoy Foods Group HK Offer: Value Stock or Value Trap? Key Facts, Financials and Valuation

Low margins, weak return metrics, and a lack of product innovation reflect Anjoy's structural challenges in a crowded, commoditized segment. The...

Devi Subhakesan

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 Liuliu Orchard - Hard to Achieve High Growth Due to the Lack of Product Competitiveness

​Liuliu's light asset model boost profit margin,but concerns on growth sustainability/Sequoia's exit raise question about IPO outlook.Valuation...

Xinyao (Criss) Wang

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

Anjoy Foods Group HK Offer: Value Stock or Value Trap? Key Facts, Financials and Valuation

Low margins, weak return metrics, and a lack of product innovation reflect Anjoy's structural challenges in a crowded, commoditized segment. The...

Devi Subhakesan

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

Liuliu's light asset model boost profit margin,but concerns on growth sustainability/Sequoia's exit raise question about IPO outlook.Valuation...

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