bullish

KE Holdings

ECM Weekly (16 August 2020) - RemeGen, Neusoft Edu, Huazhu HK, Xpeng Motors, KE Holdings

394 Views16 Aug 2020 09:15
SUMMARY

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's IPO pipeline is looking like it will be packed with blockbuster IPOs comprising of China ADRs' homecoming and unicorns looking to dual list in Hong Kong and China. This week, it was reported Vipshop is the newest US-listed Chinese company to make a move to list closer to home.

Beyond that, Ant Financial has made preparatory filing with China Securities Regulatory Commission (CSRC) which will get the company ready for its dual listing in Hong Kong and STAR market as mentioned by the company last month. SenseTime was also said to be considering a dual listing in Hong Kong and China. Nongfu Spring (NON HK) got approved by HKEX this week to move forward with its IPO and will be pre-marketing next week.

Our coverage for upcoming Hong Kong IPOs and secondary listings this week:

Earlier coverage on Nongfu Spring (NON HK):

IPO pipeline in other Southeast Asia markets seem to be warming up finally as MR D.I.Y. Group (1706769D MK) was said to be reviving its IPO plans next month after it delayed its IPO due to COVID-19. Glove maker Harps is also jumping on the bandwagon as it just hired banks to push forward with an IPO likely in the first half of 2021.

In Philippines, Areit (AREIT PM) performance was disappointing as it broke IPO price on debut and closed the week 10% lower. There were reports that some brokers were unaware of a special licence required to trade REITS which had resulted in the lack of retail orders.

Lastly, in the U.S., KE Holdings Inc (BEKE US) debut did exceedingly well, closing 87% higher on the first day before retracing on Friday to close out the week with still about 65% up from IPO price. The strong performance could continue to spur more China ADRs to list despite the homecoming efforts by existing companies. Xpeng Motors (XPEV US) filed last week whereas Lufax has filed confidentially that could raise about US$2-3bn.

Placements coverage this week:


Accuracy Rate:

Our overall accuracy rate is 73% for IPOs and 66.2% for Placements

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

New IPO filings this week

  • JW Therapeutics (Hong Kong, >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

NameInsight
Hong Kong
Ant FinancialAnt Financial IPO Early Thought: Understand Fintech Empire, Growth & Risk Factors
Ant FinancialAnt Financial (蚂蚁金服) IPO Early Thought: What's New About the Listing News
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

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

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

Everest Med

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

Genor

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

Huazhu

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

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

Kilcoy

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

MegviiMegvii (旷视) Pre-IPO - Remarkable Growth (Part 1)
MegviiMegvii (旷视) Pre-IPO - A Bet on the Future - Segments, Revenue Drivers and Growth Potential
MegviiMegvii (旷视) Pre-IPO - The Real Race Is in Research - Founders' Profile and Talent
MegviiMegvii (旷视) Pre-IPO - Competitive Landscape and Peer Analysis
MegviiMegvii (旷视) Pre-IPO - Initial Thoughts on Valuation
NeusoftNeusoft Edu (东软教育) Pre-IPO: Long Established Name on IT Education
NongfuNongfu Spring Pre-IPO - The Positives - Leaves One Thirsty for More
NongfuNongfu Spring Pre-IPO - The Negatives - Doesn't Need to List or Expand Production Facilities
NongfuNongfu Spring Pre-IPO - Peer Comparison - Superior Margins and Growth
NongfuNongfu Spring (农夫山泉) IPO: Beverage for the Young, In-Store Photos
OcumensionOcumension (欧康维视) Pre-IPO: All Ready for a Great Listing Except a Block Buster
Pop MartPop Mart Pre-IPO - The Negatives - Is It a Brand Owner or Just a Retailer?
Pop MartPop Mart Pre-IPO - The Positives - Expanding Portfolio+Wider Distribution= Explosive Earnings Growth
Pop MartPop Mart Pre-IPO - Peer Set and Valuation
RadianceRadiance Holdings (金辉控股) Pre-IPO - Property Mgt Svc Sold Out at a Ridiculously Cheap Valuation
Shimao SvcsShimao Services (世茂服务) Pre-IPO - Community VAS Segment Is the Star
RemeGenRemeGen (荣昌生物) Pre-IPO: Thoughts on Valuation of RC18 and RC48
SimcereSimcere (先声制药) Pre-IPO: Long History but Products Concentrated
ToplistToplist China Pre-IPO - Overwhelmingly More Negatives than Positives
TaslyTasly Biopharm (天士力生物) IPO: Visible Growth from Approved Drug but Lacks Blockbusters
Weihai BankWeihai City Commercial Bank Pre-IPO - More of an Asset Manager Rather than a Lender
WeDoctorWeDoctor (微医) Pre-IPO -App Walk Through - The Online Medical Directory and More
WeDoctorWeDoctor (微医) Pre-IPO - A More Focused Online Medical Svc Provider than Ping An Good Doctor
India
ASKASK Investment Managers Pre-IPO - Riding on a Wave of Wealth
Anmol IndAnmol 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

CAMSCAMS Pre-IPO - Quasi Monopoly Status Muddled by Inconsistent Performance
CMS InfoCMS Info Systems Pre-IPO - When a PE Sells to Another PE... Only One Gets the Timing Right
Crystal CropCrystal Crop Protection Pre-IPO - DRHP Raises More Questions than in Answers
ESAF SFBESAF Small Finance Bank Pre-IPO - Growing Fast but Remains Highly Dependant on a Related Party
Equitas SFBEquitas Small Finance Bank Pre-IPO - Another Forced Small Finance Bank Listing
Equitas SFBEquitas 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 CemEmami Cement Pre-IPO - Still in Ramp Up Phase but Shares Pledge Might Lead to an Early IPO
IRFCIndian Railway Finance Pre-IPO - Low Risk, Low Margin Business
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
MazagonMazagon Dock IPO Preview: A Monopoly Submarine Yard in India with Captive Navy Spending
Mrs. BectorMrs. Bectors Food Specialities Pre-IPO Quick Take - Sales for Its Main Segment Have Been Sta

LIC

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

Lodha

Lodha Developers Pre-IPO - Second Time Lucky but Not Really that Much Affordable
LodhaLodha Developers IPO: Presence in Affordable Segment Saves Lodha the Blushes in a Sluggish Mkt
Penna CemPenna 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
Samhi HotelsSamhi Hotels Pre-IPO - Assets and Borrowings Are Growing, but Earnings Haven’t Kept Pace
UTI AMC

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

Malaysia
Mr DIYMr D.I.Y. Pre-IPO - Largest Home Improvement Retailer in Malaysia
Mr DIYMr D.I.Y. Pre-IPO - Store Walk-Through and Thoughts on Value Proposition
Mr DIYMr D.I.Y. Pre-IPO - Peer Comparison - Small Stores with Dominant Market Share
Mr DIYMr D.I.Y. Pre-IPO - Assumptions and Thoughts on Valuation
QSRQSR Brands Pre-IPO - As Healthy as Fast Food
Thailand
PTTORPTT Oil and Retail IPO - F&B Business Is the Profit Driver
SCGPSCGP Pre-IPO - Shift to Packaging Has Been Aiding Margins but Acquisition Drove up Leverage
The U.S
CDPCDP Holdings Pre-IPO Review - Highly Reliant on Best Inc.
CloudMindsCloudMinds Inc Early Thoughts - Still Nascent
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