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

Zhou Liu Fu Jewellery / Equity Capital Markets

<ul>
<li>
<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> is looking to raise up to $143m in its upcoming Hong Kong IPO.</li>
<li>It is a leading and fast growing jewellery franchise in China offering a diverse range of products through offline and online sales channels.</li>
<li>In this note, we examine the IPO dynamics, and look at the firm’s valuation.</li>
</ul>



Zhou Liu Fu Jewellery Co., Ltd. (1716396D CH) is looking to raise up to $143m in its upcoming Hong Kong IPO.
It is a leading and fast growing jewellery franchise in China offering a diverse range of products through offline and online sales channels.
In this note, we examine the IPO dynamics, and look at the firm’s valuation.


Zhou Liu Fu Pre-IPO: Not Blindingly Cheap but Peer Momentum Is Strong

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>The performance slowdown and decrease in number of newly opened stores from 2023 to 2024 was due to the rapid surge in gold prices,which would put franchise model at risk.</li>
<li>Future performance of Zhou Liu Fu may not be benefit from the high gold prices, but could be under pressure due to rising raw material costs and reduced customer demand.</li>
<li>Valuation of Zhou Liu Fu could be lower than peers and the industry average. A comfortable P/E range could be 10-15x if based on 2025 net profit.</li>
</ul>


The performance slowdown and decrease in number of newly opened stores from 2023 to 2024 was due to the rapid surge in gold prices,which would put franchise model at risk.
Future performance of Zhou Liu Fu may not be benefit from the high gold prices, but could be under pressure due to rising raw material costs and reduced customer demand.
Valuation of Zhou Liu Fu could be lower than peers and the industry average. A comfortable P/E range could be 10-15x if based on 2025 net profit.


Pre-IPO Zhou Liu Fu Jewellery (PHIP Updates) - Some Points Worth the Attention

<ul>
<li>
<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> is looking to raise $US200m in its upcoming Hong Kong IPO. </li>
<li>It is a leading and fast growing jewellery franchise in China offering a diverse range of products through offline and online sales channels.</li>
<li>In this note, we provide updates on the firm’s past performance.</li>
</ul>



Zhou Liu Fu Jewellery Co., Ltd. (1716396D CH) is looking to raise $US200m in its upcoming Hong Kong IPO. 
It is a leading and fast growing jewellery franchise in China offering a diverse range of products through offline and online sales channels.
In this note, we provide updates on the firm’s past performance.


Zhou Liu Fu Pre-IPO: Business Is Deteriorating Despite Rosy Gold Prices

<ul>
<li>Zhou Liu Fu's fundamentals would not significantly improve due to the surge in gold prices, but would deteriorate instead due to rising raw material costs and reduced customer demand.</li>
<li>The franchise model and declining profit margins have always been the issues. Zhou Liu Fu also has faced dual competition from traditional jewelry companies and emerging jewelry brands.</li>
<li>We are not optimistic about Zhou Liu Fu’s performance outlook. Valuation of Zhou Liu Fu could be lower than peers and the industry average.</li>
</ul>


Zhou Liu Fu's fundamentals would not significantly improve due to the surge in gold prices, but would deteriorate instead due to rising raw material costs and reduced customer demand.
The franchise model and declining profit margins have always been the issues. Zhou Liu Fu also has faced dual competition from traditional jewelry companies and emerging jewelry brands.
We are not optimistic about Zhou Liu Fu’s performance outlook. Valuation of Zhou Liu Fu could be lower than peers and the industry average.


Pre-IPO Zhou Liu Fu Jewellery - It Is Hard to Capitalise on the Soaring Gold Price

Guangdong Chj Industry Co A / Equity Capital Markets

<ul>
<li>CHJ’s business model integrates franchise stores and self-operated stores. Franchising as the main approach is beneficial for achieving rapid expansion, while self-operation as a supplement helps to enhance brand image.</li>
<li>Due to increasing competition, future growth of CHJ may not be benefit from the high gold prices, but may be under pressure due to rising raw material costs/reduced customer demand.</li>
<li>We think valuation of CHJ should be lower than Laopu, but could be higher than <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 (6168 HK)</a> due to CHJ’s higher performance growth in the short term.  </li>
</ul>


CHJ’s business model integrates franchise stores and self-operated stores. Franchising as the main approach is beneficial for achieving rapid expansion, while self-operation as a supplement helps to enhance brand image.
Due to increasing competition, future growth of CHJ may not be benefit from the high gold prices, but may be under pressure due to rising raw material costs/reduced customer demand.
We think valuation of CHJ should be lower than Laopu, but could be higher than Zhou Liu Fu (6168 HK) due to CHJ’s higher performance growth in the short term.  


Pre-IPO Guangdong CHJ Industry - The Business Model, the Concerns and the Outlook

China

Zhou Liu Fu Jewellery Co., Ltd. manufactures jewelry products. The Company designs and sells gold jewelry, platinum jewelry, jewelry jade, crafts, watches, gold and silver coins, and other products. Zhou Liu Fu Jewellery markets its products throughout China.

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Zhou Liu Fu Jewellery (6168 HK)

Zhou Liu Fu Pre-IPO: Not Blindingly Cheap but Peer Momentum Is Strong

Zhou Liu Fu is looking to raise up to $143m in its upcoming Hong Kong IPO. In this note, we examine the IPO dynamics, and look at the firm’s...

Nicholas Tan

Pre-IPO Zhou Liu Fu Jewellery (PHIP Updates) - Some Points Worth the Attention

Rapid surge in gold prices poses risk to Zhou Liu Fu's franchise model. The future performance may suffer from rising raw material costs and...

Xinyao (Criss) Wang

Zhou Liu Fu Pre-IPO: Business Is Deteriorating Despite Rosy Gold Prices

Zhou Liu Fu Jewellery is looking to raise $US200m in its upcoming Hong Kong IPO. In this note, we provide updates on the firm’s past performance.

Nicholas Tan

Pre-IPO Zhou Liu Fu Jewellery - It Is Hard to Capitalise on the Soaring Gold Price

Zhou Liu Fu's fundamentals could deteriorate despite a surge in gold prices due to rising costs and reduced demand. Competition/declining profit...

Xinyao (Criss) Wang

Pre-IPO Guangdong CHJ Industry - The Business Model, the Concerns and the Outlook

CHJ's business model combine franchise and self-operated store for rapid expansion/brand image enhancement.Future growth may be impacted by...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Zhou Liu Fu Pre-IPO: Not Blindingly Cheap but Peer Momentum Is Strong

Zhou Liu Fu is looking to raise up to $143m in its upcoming Hong Kong IPO. In this note, we examine the IPO dynamics, and look at the firm’s...

Nicholas Tan

Pre-IPO Zhou Liu Fu Jewellery (PHIP Updates) - Some Points Worth the Attention

​Rapid surge in gold prices poses risk to Zhou Liu Fu's franchise model. The future performance may suffer from rising raw material costs and...

Xinyao (Criss) Wang

Zhou Liu Fu Pre-IPO: Business Is Deteriorating Despite Rosy Gold Prices

Zhou Liu Fu Jewellery is looking to raise $US200m in its upcoming Hong Kong IPO. In this note, we provide updates on the firm’s past performance.

Nicholas Tan

Pre-IPO Zhou Liu Fu Jewellery - It Is Hard to Capitalise on the Soaring Gold Price

​Zhou Liu Fu's fundamentals could deteriorate despite a surge in gold prices due to rising costs and reduced demand. Competition/declining profit...

Xinyao (Criss) Wang

Pre-IPO Guangdong CHJ Industry - The Business Model, the Concerns and the Outlook

​CHJ's business model combine franchise and self-operated store for rapid expansion/brand image enhancement.Future growth may be impacted by...

Xinyao (Criss) Wang

Rapid surge in gold prices poses risk to Zhou Liu Fu's franchise model. The future performance may suffer from rising raw material costs and...

Zhou Liu Fu's fundamentals could deteriorate despite a surge in gold prices due to rising costs and reduced demand. Competition/declining profit...

CHJ's business model combine franchise and self-operated store for rapid expansion/brand image enhancement.Future growth may be impacted by...