Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

An inquisitive investment analyst with background in both finance and computing. Covering ECM research, biotech, market data analytics.

Asia Pac IPO & Placement Research, China biotech

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Capital Markets

Greenland Hong Kong Holdings / Equity Capital Markets

Greenland&nbsp;is raising cUS$194m to fund its investment in property related internet finance. So far the company is the leader in this area. In its first product debut on April 13, RMB200m worth of investment product Dichanbao (地产宝) was sold in 30 minute, online. The investment product is&nbsp;sold via Alibaba's Ant finance platform (<a href="https://zhaocaibao.alipay.com/pf/productList.htm" target="_blank">招财宝</a>) and Greenland's subsidiary Guizhou Greenland Asset Exchange. This first product, back by slum area development in Nanchang, Jiangxi provinc and insured by <a href="http://www.anbanggroup.com/abic/english/" target="_blank">Anbang P&amp;C</a>, provides yield of 6.4% with term of one year. Greenland is ambitious in the property securitization market and riding the internet wave.Our framework rates the deal borderline, with the positive scores generally being driven by the strong out-performance vs the market in the recent past, combined with the spate of earnings upgrades in the recent past. However, the track record for the stock hasn't been so stellar while the valuations appear stretched vs. other real estate comps.Nonetheless, we think it is an opportunity for investors to have exposures in this fast growing niche market. As such,&nbsp;investor should be aware that the current valuation of Greenland has not accounted for potentials from the internet finance business. If Greenland continues to demonstrate its execution, the street will rerate the company with the valuation metrics of internet companies.

Greenland&nbsp;is raising cUS$194m to fund its investment in property related internet finance. So far the company is the leader in this area. In its first product debut on April 13, RMB200m worth of investment product Dichanbao (地产宝) was sold in 30 minute, online. The investment product is&nbsp;sold via Alibaba's Ant finance platform (招财宝) and Greenland's subsidiary Guizhou Greenland Asset Exchange. This first product, back by slum area development in Nanchang, Jiangxi provinc and insured by Anbang P&amp;C, provides yield of 6.4% with term of one year. Greenland is ambitious in the property securitization market and riding the internet wave.Our framework rates the deal borderline, with the positive scores generally being driven by the strong out-performance vs the market in the recent past, combined with the spate of earnings upgrades in the recent past. However, the track record for the stock hasn't been so stellar while the valuations appear stretched vs. other real estate comps.Nonetheless, we think it is an opportunity for investors to have exposures in this fast growing niche market. As such,&nbsp;investor should be aware that the current valuation of Greenland has not accounted for potentials from the internet finance business. If Greenland continues to demonstrate its execution, the street will rerate the company with the valuation metrics of internet companies.

Raising for internet finance, could be a game changer. However, impact remains far from clear