Daily BriefsTMT/Internet

TMT: Match Group Inc, Tuya Inc, Info Edge India, Sea Ltd and more

In today’s briefing:

  • Apple’s App Store Price Cut Beneficiaries
  • Tuya (涂鸦智能) Lock-Up Expiry – Sanction Just as Lock-Up Is Expiring Is Not a Good Place to Be
  • The grand job-wedding-housewarming party is here!
  • ECM Weekly (12th September 2021) – Sea, Simplex, PHC Holdings, Kakaopay, Novotech, Airdoc, K Car

Apple’s App Store Price Cut Beneficiaries

By Aaron Gabin

Apple’s quasi loss in the Epic lawsuit regarding app store take rates makes us all the more bullish on one of our favorite longs…Match Group. And also more bullish on Roblox (another long recommendation) and ATVI (less a beneficiary, but still a good entry point. We think Spotify and Netflix’s benefits are overstated. Spotify has run too much on the news, and we think its potentially another good short entry point.


Tuya (涂鸦智能) Lock-Up Expiry – Sanction Just as Lock-Up Is Expiring Is Not a Good Place to Be

By Zhen Zhou, Toh

Tuya Inc (TUYA US) was listed in the U.S. on 18th March, 2021 and its IPO lock-up will expire on 14th September, 2021. The IPO was priced at US$21 per ADS, at the top-end of its price range. 

Tuya is a Platform as a Service (PaaS) and Software as a Service (SaaS) provider to businesses and developers with a focus on IoT. The company’s IoT PaaS enables businesses and developers to easily develop, launch, manage, and monetize software-enabled devices and services while its Industry SaaS helps businesses deploy, connect, and manage a large number and different types of smart devices.

In this note, we will look into the shares that may come to market after IPO lock-up expires.

We have previously covered the company in:


The grand job-wedding-housewarming party is here!

By ICICI Securities Limited

As we anticipated in mid-Jun-21 (link), hiring across sectors has witnessed a robust pickup. Net EPFO additions in Jun-21 were ~85% higher than the pre-covid run-rate. RBI’s Aug-21 State of the economy’ report (link) hints at up to ~38% YoY salary hikes across sectors the best in 15 years. Resignations and voluntary retirements too are surging in line with global trends. Rethinking of work’ by employees is driving massive supply-demand mismatch across industries further boosting the need for search’ platforms like Naukri.

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ECM Weekly (12th September 2021) – Sea, Simplex, PHC Holdings, Kakaopay, Novotech, Airdoc, K Car

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.

Events next week:

We kicked off the publication of tearsheets to keep investors apprised of the basic information of new IPO filings. The effort will be led by our new analyst, Clarence Chu , who joined us this month. Feel free to drop us a message if there are any things that you would like to be included in the tearsheet.

MREIT and Simplex launched their IPOs this week. The former raised US$272m at the bottom end of its IPO price range after books closed on Thursday while the latter’s shareholders will be selling US$304m worth of shares. Simplex’s books closed on Friday and it was simply reported that books were covered. MREIT and Simplex will debut on 30th and 22nd September, respectively.

Similarly, K Car will open books on Friday and look to debut on 13th October. We covered peer comparison and valuation in this week’s note.

On the other hand, Kakaopay’s IPO hit a bump when FSC and FSS put out a press release stating that online financial platforms, namely Naver Pay and Kakao Pay, aren’t acting as simple advertising agencies and have violated regulations. We discussed the likely impact on the company and our expectations heading into bookbuild which was stipulated to open on 23rd September.

In Japan, Phc Holdings (6523 JP) is looking to raise about US$1.6bn from selling a mix of primary and secondary shares. The company is backed by KKR, Mistui, Life Science Institute, and Panasonic.

Back in Hong Kong, Helen’s closed 23% above its IPO price on debut, exceeding our expectations. We also revisited Novotech’s IPO as the company will likely launch its books soon, following its approval from HKEX.

We initiated on Beijing Airdoc, an AI-based medical device company with a focus on AI-empowered retina-based early detection, diagnosis and health risk assessment solutions. The company was earlier reported to be seeking approval this month. 

Last, but not least, it was a fairly active week in the placement space. Sea Ltd tested limits with its jumbo US$6bn equity combo. The deal was priced at a decent 7.3% discount from undisturbed price and it was reported to have drawn strong demand from investors. 

Accuracy Rate:

Our overall accuracy rate is 74% for IPOs and 67.8% for Placements 

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

New IPO filings this week

  • TDCX Inc. (US, US$400m)
  • Healthium Medtech (India, US$491m)
  • Tamilnad Mercantile Bank (India, US$137m) 

News on Upcoming IPOs

Hong Kong/China

US/China ADRs

India

Japan/Korea

Others

Analysis on Upcoming IPOs

NameInsight
Hong Kong
APM Monaco

APM Monaco Pre-IPO – China’s Resilience Shines 

Airdoc

Beijing Airdoc (北京鹰瞳科技) Pre-IPO – A Niche Field with Merits but Can It Sell? 

Anjuke

Anjuke Pre-IPO – Mixed (Positive and Negative) Developments 

Ambio

AmbioPharm (昂博制药) Pre-IPO: Peptide CDMO Leader Turning Licensor 

Biel Crystal

Biel Crystal (伯恩光学) Pre-IPO – Cash Flow Generative Business but Underlying Trend Is Worrying 

Broncus

Broncus (堃博医疗) Pre-IPO: Big Potential to Be Tested 

ByteDance

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

ByteDance

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

ByteDance

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

ByteDance

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

ByteDance

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

ByteDance

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

ByteDance

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

ByteDance

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

Cloud Village

Cloud Village (NetEase Music) Pre-IPO – Mixed PHIP Update, Updated Thoughts on Valuation 

Cloud Village

Cloud Village (NetEase Music) Pre-IPO – Initial Thoughts on Valuation 

Cloud Village

Cloud Village (NetEase Music) Pre-IPO – Tencent Music Peer Comp, Regulatory Impact 

Cloud Village

Cloud Village (NetEase Music) Pre-IPO – Was in the Slow Stream, Playing Catch-Up 

Edda 

EDDA Healthcare Pre-IPO – RoboDoc – Has Been Around for a While but Is Just Getting the Robo Going 

Dingdang

Dingdang Health Tech (叮当健康) Pre-IPO – Impressive Growth but Not Without Concerns 

Intco Med

Intco Medical (英科医疗) A+H: From China No.1 to Global No. 1 

Imeik

Imeik Tech (爱美客) A/H Pre-IPO – Dermal Filler Leader Capitalizing on Its Valuation 

Jenscare

Jenscare (宁波健世科技) Pre-IPO: Differentiated Heart Valve Portfolio 

MicroPort Medbot

MicroPort MedBot Pre-IPO – RoboDoc – Pre-Revenue, Has a Large Competitor but a Large Market as Well 

NewMed

NewMed (纽脉医疗) Pre-IPO: Uphill Battle for TAVR but Leads the TMVR 

Neusoft Xikang

Neusoft Xikang (东软熙康) Pre-IPO: A Long Way to Profit 

Neusoft Med

Neusoft Medical Systems (东软医疗系统) Pre-IPO: Unattractive Fundamentals 

Novotech

Novotech Pre-IPO: Biotech Focused CRO at Hefty Pre-IPO Valuation 

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 
WeDoctor We Doctor (微医) Pre-IPO – Peer Comparison – Picking Its Battles Wisely 
WeDoctor We Doctor (微医) Pre-IPO – Forecasts, Early Thoughts on Valuation, and Acquisition Gripes 
Weilong Weilong Delicious Global Pre-IPO – The Positives – Fast Growth, Strong Backers 
Weilong Weilong Delicious Global Pre-IPO – The Negatives – Spicy Valuation 
WM Tech WM Tech Pre-IPO – Peer Comparison and Pre-IPO Valuation – Some Signs of Advantage 
WM Tech WM Tech Pre-IPO – Digitalization Efforts Coming Through but Not Well Substantiated 
India
Aadhar Housing Aadhar Housing Finance Pre-IPO – Decent past Growth but Comes with Weird Disclosures 
Aditya AMC Aditya Birla Sun Life AMC Pre-IPO – Strong Profit Growth but It’s Losing Market Share 
Anmol IndAnmol Industries Pre-IPO Quick Take – No Growth, Generous Payments to Founders
Bharat Hotel

Bharat Hotels Pre-IPO – Catching up with Peers 

Bajaj En

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

Crystal CropCrystal 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 
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 
NSENSE IPO Preview- Not Only Fast..its Risky and Expensive
NSENational Stock Exchange Pre-IPO Review – Bigger, Better, Stronger but a Little Too Fast for Some

LIC

Life Insurance Corporation of India Pre-IPO – Early Take on India’s Largest IPO 
Penna Cem Penna Cement – Aggressive Expansion Plans Even Though Past Performance Has Been Tepid 
PNB MetPNB Metlife Pre-IPO Quick Take – Doesn’t Stack up Well Versus Its Larger Peers
Malaysia
QSRQSR Brands Pre-IPO – As Healthy as Fast Food
Philippines
MREIT MREIT Pre-IPO – Mediocre Performance, Convoluted Lease, Low Asset Yield 

Before it’s here, it’s on Smartkarma