ECM Weekly (2 August 2020) - ByteDance KE Holdings, Tigermed, Jinke Svcs, Li Auto

307 Views02 Aug 2020 11:04

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

For Hong Kong IPOs, Nongfu Spring (NON HK) got approved from the China Securities Regulatory Commission (CSRC) to launch its IPO. Sumeet Singh and Ming Lu have already covered the company in detail:

As for next week, there will only be the Hangzhou Tigermed Consulting (H) (3347 HK)'s H-share listing which Ke Yan, CFA, FRM shared his thoughts on valuation and A-H premium.

There were also news reporting that WeDoctor (1737089D HK) is likely to delay its HK IPO to early next year and is considering a private fundraising round before the IPO whereas Wumart has just picked bankers and it is looking complete its US$1 - 2bn IPO, possibly before the end of this year. Our coverage of other upcoming IPOs this week:

In the U.S., China ADR listing pipeline is still looking busy. This week, Li Auto Inc. (LI US) closed its books early and started trading on Thursday, a day ahead of its stipulated timetable. The company traded well, closing 43% above its IPO price on the first day, and managed to hold onto the gains as of Friday's close. We shared our thoughts on valuation:

Coincidentally, various news sources were also reporting that Xpeng Motors, another Chinese EV car maker, is looking to list in the US in August and will likely be looking to raise up to US$700m. Sumeet Singh also shared this thoughts on another large (~US$2bn) upcoming US IPO, KE Holdings Inc (BEKE US), the owner and operator of Lianjia and Beike.

Last, but not least, we will also be keeping a close eye on REIT listings in Philippines and India. Mindspace Business Parks REIT (MBP IN) and Areit (AREIT PM) will debut in about two weeks' time and these listings will go on to set the stage for future REIT listings in their respective countries. In fact, in India, we are already hearing that Brookfield Asset Management is planning a US$500m India REIT listing.

Placement coverage this week:

Accuracy Rate:

Our overall accuracy rate is 73% for IPOs and 65.9% for Placements

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

No new IPO filings this week

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

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 (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


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

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

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
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
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
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
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
MindspaceMindspace Business Parks REIT Pre-IPO - Decent Growth but Not All Assets Are Equal
MindspaceMindspace Business Parks REIT Pre-IPO - Updates Aren't so Great
Mrs. BectorMrs. 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
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 Asset Management Company Pre-IPO - Well past Its Remote Glory Days

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
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
Li AutoLi Auto (理想汽车) Pre-IPO - Taking the Long Way Around
Li AutoLi Auto (理想汽车): Visit Li Auto Store and Find Out License Game
Li AutoLi Auto (理想汽车) Pre-IPO - Peer Comparison - Margins May Look like BYD, but Sells like NIO
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