ChinaDaily Briefs

China: Ant Financial, Chindata and more

By September 13, 2020 No Comments

In today’s briefing:

  • ECM Weekly (13 September 2020) – Ant Group, Joy Spreader, Chindata, Huazhu Secondary, Converge ICT
  • Chindata Group Holdings Pre-IPO – Patchy Data but Is Growing Fast in a Hot Sector

ECM Weekly (13 September 2020) – Ant Group, Joy Spreader, Chindata, Huazhu Secondary, Converge ICT

By Zhen Zhou, Toh

Aequitas Research puts out a weekly update on the deals that have been covered by the team recently along with updates for upcoming IPOs.

Hong Kong IPO activity is still looking busy. Joy Spreader Interactive Technology (6988 HK) and Huazhu Group (HTHT US) launched their respective US$225m and US$900m bookbuilds this week. 

On top of that, there were news reports that ZTO Express, Zai Lab and Baozun, Ming Yuan Cloud Group, and, Genor Biopharma, have gotten approval from HKEx. The first three names are secondary listings and, out of them, two have already filed their PHIP with HKEx as of Friday. We are also hearing that Genor Biopharma (0883276D CH) is looking to kickstart pre-marketing next week for its US$300m IPO.

We continued our coverage of Ant Group. This week, Sumeet Singh looked into implications of dual listing on index inclusion. There were also news reporting that Temasek and GIC are looking to participate in Ant Group’s IPO. 

In other parts of Asia, there seemed to be a wave of IPOs coming. We continue to look at Converge ICT Solutions Inc (ITC PM), this time, comparing the company with established peers in the Philippines. 

We are also hearing that, in India, UTI Asset Management (UTIAMC IN) and Computer Age Management Services (CAMS IN) are looking to launch their IPO next week. We have earlier covered the companies in:

Last, but not least, there were a handful of China ADR filings with the SEC. We took a look at Bain Capital-backed Chindata (CD US)‘s potential US$400m IPO.

Also, as mentioned last week, MR D.I.Y. Group (1706769D MK) is returning to market and it was pre-marketing during the week, likely to seek up to US$400m and, in Thailand, there were reports that SCG Packaging (SCGP TB) is targeting to launch its US$1.5bn IPO next month.

For placements, we share updates on Softbank Corp (9434 JP)‘s mega selldown by Softbank Group (9984 JP) which is looking to price on Monday.

Accuracy Rate:

Our overall accuracy rate is 73.0% for IPOs and 66.1% for Placements 

(Performance measurement criteria is explained at the end of the note)

New IPO filings this week

  • SciClone Pharma (Hong Kong, ~US$500m)
  • Sino-Ocean Services (Hong Kong, >US$100m)
  • Chindata Group (the U.S., US$400m)
  • Boqii (the U.S., US$115m)
  • iHuman (the U.S., US$100m)

Below is a snippet of our IPO tool showing upcoming events for the next week. The IPO tool is designed to provide readers with timely information on all IPO related events (Book open/closing, listing, initiation, lock-up expiry, etc) for all the deals that we have worked on. You can access the tool here or through the tools menu.

News on Upcoming IPOs

Analysis on Upcoming IPOs

Name Insight
Hong Kong
Ant Group Ant Group (蚂蚁集团) IPO First-Take: No. 1 Fintech from All Angles 
Ant Group Ant Group (蚂蚁集团) IPO: Numbers Suggest It’s More Tech than Financials 
Ant Group Ant Group (蚂蚁集团) Pre-IPO: Things to Clarify/Questions to Ask – Falling Fees, Margins, Cash Flow 
Ant Group Ant Financial IPO Early Thought: Understand Fintech Empire, Growth & Risk Factors
Ant Group Ant Financial (蚂蚁金服) IPO Early Thought: What’s New About the Listing News 
Ant Group Ant Group – Index Inclusion Possibilities & Timeline 
Blue Moon

Blue Moon Group Pre-IPO – The Positives – Dominant Market Share, Strong Online Sales 

Blue Moon

Blue Moon Group Pre-IPO – The Negatives – Flagging Offline Sales, Not Really a Primary Raising 

Blue Moon

Blue Moon: No. 1 But No Exclusive Advantage, Observation on the Ground 

Blue Moon

Blue Moon Group Pre-IPO – Online Reviews and Peer Comparison 


ByteDance (字节跳动) IPO: How Jinri Toutiao Paves The Way for a Bigger Empire (Part 1)


ByteDance (字节跳动) Pre-IPO: Why Facebook Should Worry About TikTok 


ByteDance (字节跳动) IPO: Tiktok the No.1 Short Video App for a Good Reason (Part 2)


ByteDance (字节跳动) Pre-IPO: How Has It Done in 1H? 


ByteDance: The Unlisted Company’s Video Apps Leading the Market and Threatening Internet Giants 


ByteDance (字节跳动) Pre-IPO: Why Facebook Should Worry About TikTok 


ByteDance (字节跳动) Pre-IPO – Globally the Most Downloaded App for Jan 2020 Driven by India 


ByteDance (字节跳动) Pre-IPO: Global Ambition Meets Regulatory Challenges 

E-Star Comm

E-Star Commercial Management Pre-IPO – Better Disclosure in New Prospectus 

E-Star Comm

E-Star Commercial Management Pre-IPO – Still Largely Reliant on Galaxy, Poor Disclosure Doesn’t Help 

Excellence Comm

Excellence Commercial Property (卓越商企服务) Pre-IPO – Diversifying Away from Excellence Group 

Everest Med

Everest Medicines (云顶新耀) Pre-IPO: License-In Specialist Led by Biotech Investors 


Genor (嘉和生物) Pre-IPO: Slow R&D Progress in the past but that Might Change 


Huazhu HK Secondary Listing – Early Look – Needs the Cash More than Most Secondary Candidates 

Jiayuan Svcs

Jiayuan Services (佳源服务) Pre-IPO – Another Small Property Management Company 

Jinke Svcs

Jinke Smart Services (金科智慧服务) Pre-IPO – GFA Growth at the Expense of Fees 


Kilcoy Global Foods Pre-IPO – Rapid Earnings Growth on the Back of Margin Improvement 


Kilcoy Global Foods Pre-IPO – A Lot of Things Still Remain Unexplained 

KWG Living

KWG Living (合景悠活) Pre-IPO – Strong Growth and Margin Expansion but Overly Reliant on KWG Group 

Megvii Megvii (旷视) Pre-IPO – Remarkable Growth (Part 1) 
Megvii Megvii (旷视) Pre-IPO – A Bet on the Future – Segments, Revenue Drivers and Growth Potential 
Megvii Megvii (旷视) Pre-IPO – The Real Race Is in Research – Founders’ Profile and Talent 
Megvii Megvii (旷视) Pre-IPO – Competitive Landscape and Peer Analysis 
Megvii Megvii (旷视) Pre-IPO –  Initial Thoughts on Valuation 
MIngyuan Cloud Ming Yuan Cloud (明源云) Pre-IPO – Leaning on Regional Partners for Growth but Hefty Commissions Paid 
Neusoft Neusoft Edu (东软教育) Pre-IPO: Long Established Name on IT Education 
Ocumension Ocumension (欧康维视) Pre-IPO: All Ready for a Great Listing Except a Block Buster 
Pop Mart Pop Mart Pre-IPO – The Negatives – Is It a Brand Owner or Just a Retailer? 
Pop Mart Pop Mart Pre-IPO – The Positives – Expanding Portfolio+Wider Distribution= Explosive Earnings Growth 
Pop Mart Pop Mart Pre-IPO – Peer Set and Valuation 
Pop Mart Pop Mart Pre-IPO Quick Note – On the Ground – Pop-Up Stores Are Effective 
Radiance Radiance Holdings (金辉控股) Pre-IPO – Property Mgt Svc Sold Out at a Ridiculously Cheap Valuation 
Shimao Svcs Shimao Services (世茂服务) Pre-IPO – Community VAS Segment Is the Star 
Sunac Svcs Sunac Services (融创服务) Pre-IPO – Promising Growth & Diversifying Away from Sunac Via Acquisitions 
RemeGen RemeGen (荣昌生物) Pre-IPO: Thoughts on Valuation of RC18 and RC48 
Simcere Simcere (先声制药) Pre-IPO: Long History but Products Concentrated 
Toplist Toplist China Pre-IPO – Overwhelmingly More Negatives than Positives 
Tasly Tasly Biopharm (天士力生物) IPO: Visible Growth from Approved Drug but Lacks Blockbusters 
Weihai Bank Weihai City Commercial Bank Pre-IPO – More of an Asset Manager Rather than a Lender 
WeDoctor WeDoctor (微医) Pre-IPO -App Walk Through – The Online Medical Directory and More 
WeDoctor WeDoctor (微医) Pre-IPO – A More Focused Online Medical Svc Provider than Ping An Good Doctor 
ASK ASK Investment Managers Pre-IPO – Riding on a Wave of Wealth 
Anmol Ind Anmol Industries Pre-IPO Quick Take – No Growth, Generous Payments to Founders
Bharat Hotel

Bharat Hotels Pre-IPO – Catching up with Peers 

Burger King

Burger King India Pre-IPO – Has Been Growing Fast and Plans to Grow Even Faster 

Burger King

Burger King India Pre-IPO – Peer Comparison Yields Interesting Nuggets on Profitability and Capex 

Bajaj En

Bajaj Energy Pre-IPO – Supposed to Deliver Steady Performance if Only Its Sole Client Would Let It 

CAMS CAMS Pre-IPO – Quasi Monopoly Status Muddled by Inconsistent Performance 
CMS Info CMS Info Systems Pre-IPO – When a PE Sells to Another PE… Only One Gets the Timing Right
Crystal Crop Crystal Crop Protection Pre-IPO – DRHP Raises More Questions than in Answers
ESAF SFB ESAF Small Finance Bank Pre-IPO – Growing Fast but Remains Highly Dependant on a Related Party 
Equitas SFB Equitas Small Finance Bank Pre-IPO – Another Forced Small Finance Bank Listing 
Equitas SFB Equitas Small Finance Bank Pre-IPO – Another Forced Small Finance Bank Listing 
Flemingo  Flemingo Travel Retail Pre-IPO – Its a Different Business in Every Country
Emami Cem Emami Cement Pre-IPO – Still in Ramp Up Phase but Shares Pledge Might Lead to an Early IPO 
IRFC Indian Railway Finance Pre-IPO – Low Risk, Low Margin Business 
NSE NSE IPO Preview- Not Only Fast..its Risky and Expensive
NSE National Stock Exchange Pre-IPO Review – Bigger, Better, Stronger but a Little Too Fast for Some
Mazagon Mazagon Dock IPO Preview: A Monopoly Submarine Yard in India with Captive Navy Spending
Mrs. Bector Mrs. Bectors Food Specialities Pre-IPO Quick Take – Sales for Its Main Segment Have Been Sta


Life Insurance Corporation of India Pre-IPO – Early Take on India’s Largest IPO 


Lodha Developers Pre-IPO – Second Time Lucky but Not Really that Much Affordable
Lodha Lodha Developers IPO: Presence in Affordable Segment Saves Lodha the Blushes in a Sluggish Mkt
Penna Cem Penna Cement – Aggressive Expansion Plans Even Though Past Performance Has Been Tepid 
PNB Met PNB Metlife Pre-IPO Quick Take – Doesn’t Stack up Well Versus Its Larger Peers
Samhi Hotels Samhi Hotels Pre-IPO – Assets and Borrowings Are Growing, but Earnings Haven’t Kept Pace 

UTI Asset Management Company Pre-IPO – Well past Its Remote Glory Days 

Mr DIY Mr D.I.Y. Pre-IPO – Largest Home Improvement Retailer in Malaysia 
Mr DIY Mr D.I.Y. Pre-IPO – Store Walk-Through and Thoughts on Value Proposition 
Mr DIY Mr D.I.Y. Pre-IPO – Peer Comparison – Small Stores with Dominant Market Share  
Mr DIY Mr D.I.Y. Pre-IPO – Assumptions and Thoughts on Valuation 
QSR QSR Brands Pre-IPO – As Healthy as Fast Food
PTTOR PTT Oil and Retail IPO – F&B Business Is the Profit Driver 
SCGP SCGP Pre-IPO – Shift to Packaging Has Been Aiding Margins but Acquisition Drove up Leverage 
The U.S
CDP CDP Holdings Pre-IPO Review – Highly Reliant on Best Inc. 
CloudMinds CloudMinds Inc Early Thoughts – Still Nascent
Kioxia Kioxia IPO Early Thought: Inventor of the NAND Flash 

Chindata Group Holdings Pre-IPO – Patchy Data but Is Growing Fast in a Hot Sector

By Sumeet Singh

Chindata Group Holdings aims to raise around US$400m in its US listing. Chindata is a data centre solution provider in Asia-Pacific with a focus on China. It currently operates six data centers in China and one in Malaysia and has numerous more data centers under construction.

The company is backed by Bain Capital and is almost like a startup, in the sense that it was recently formed via the merger of a China and Asia-Pac entity. Given the relative freshness of the firm, the company has taken the liberty of providing financials just for the past 18 months, which of course show rapid growth. Also, it doesn’t provide a whole lot of details about its individual assets. Furthermore, its two large clients account for a huge chunk of its revenue, one of which is Bytedance, the other being Wangsu.

On the positive side, Chindata has plans to more than double its capacity by the end of 2021, which will ensure that growth remains strong. Moreover, its Chairman and founder appear to have ample experience in the sector. It operates in a sector which has only seen investor demand increase during COVID-19 and hence, despite its lack of financials will probably still be hot. 

In this note, I’ll talk about the company’s background, its past performance and the above issues.

Before it’s here, it’s on Smartkarma