IPO | Missing Ant? Experts count five eye-catching new stocks, Blue Moon has the strongest stir fry

Special interviews

Author: Zhai Ziqian

2020-11-18 07:30

Last update date: 2020-11-18 08:18

Ant Group (6688) lost its IPO, and the IPO market seems to be cooling off. However, during this "gap period", investors can prepare for the upcoming listing of new stocks to see which one has the most investment potential. .

Among the new shares that have been submitted and passed the listing hearing, there is no shortage of focus, such as China Evergrande (3333), which has raised funds or up to 3 billion US dollars of Evergrande properties; JD Health, spin-off by JD (9618); China Resources Land ( 1109) Spin-off of its property management business, China Resources Vientiane Life; the first brother of laundry detergent in the Mainland, known as the Blue Moon of China P&G.

As for the focus of new stocks that have not yet passed the hearing, there are also spotlights, including Kuaishou, which is regarded as Douyin's biggest competitor and valued as high as $50 billion.

Strategic investors of Evergrande Property attract attention

Evergrande Property, spun off by China Evergrande, has three main lines of business, including property management services, non-owner value-added services and community value-added services.

Among them, property management services, which accounted for 60% of the overall revenue, accounted for 98% of the parent company, which can be described as "the child is expensive for the mother."

In addition, Evergrande Real Estate’s strategic investors are strong, including Evergrande’s friendly, Huaren Property (0127) Executive Director Chen Kaiyun, "Xi Liu" Liu Luanhong’s Lifu International (1212), stock king Tencent (0700), and local Developer New World (017).

JD Health wins money

JD Health, a spin-off of JD Group, is China’s largest online medical and health platform and the largest online retail pharmacy. In addition to retail pharmacy business, JD Health also has online medical and health services.

It is worth noting that compared with the listed Ping An Good Doctor (1833) and Ali Health (241), JD Health is the only profitable company even though it has fewer active users than Ali Health.

From 2017 to 2019, the net profit of JD Health was 209 million yuan (RMB, the same below), 248 million yuan and 344 million yuan respectively.

China Resources Land was spun out of China Resources Vientiane Life, which is mainly engaged in property management business.

(Official website)

China Resources Vientiane Life's parent company is strong

China Resources Vientiane Life is also a spin-off of the listed company China Resources Land. It manages 502 residential and other property projects in China, with a total construction area of ​​97.5 million square meters under management.

According to Frost & Sullivan, the top ten companies in China's full-format property management and commercial operation service market accounted for approximately 15.3% of total market revenue in 2019, while China Resources Vientiane Life ranked seventh with a market share of 1.2%.

Different from Evergrande Real Estate, China Resources Vientiane has a diverse range of clients, including property developers, owners, owners' committees, residents and tenants.

For the six months ended at the end of June this year, China Resources Group and China Resources Land contributed 36% of revenue.

Blue Moon

has a "China P & G," said

Blue Moon submitted its listing application as early as the end of June this year and is still awaiting approval of the listing hearing by the Hong Kong Stock Exchange.

It is reported that Blue Moon had already conducted an informal roadshow before the National Day and met with many institutional investors. However, due to market reaction and avoidance of Ant Group's listing at the same time, the results are still to be watched.

Established in 1992, Blue Moon owns 73 products in three series: clothing cleaning care, personal cleaning care and household cleaning care, and is known as "China P&G".

From 2017 to 2019, the company's revenue compounded annual growth rate of 11.9%, and the gross profit margin of the three major products was as high as 65%.

Importantly, Hillhouse Capital, one of Asia’s largest private equity institutions, invested approximately US$45 million through its HCM as early as 2010 and holds 10% of Blue Moon.

Kuaishou Douyin's strongest opponent

Kuaishou can be regarded as Douyin's biggest competitor, and of course the "unicorn" of the short video live broadcast platform.

Kuaishou is mainly engaged in live broadcast business. In the past, the revenue from live broadcast business accounted for more than 80%, but still accounted for 68.5% in the first half of this year.

In addition, Kuaishou’s online marketing service revenue has increased significantly from 390 million yuan in 2017 to 7.4 billion yuan in 2019.

Kuaishou started its e-commerce business in 2018. According to iResearch, as of the end of June and the first half of this year, Kuaishou is the world's second largest live e-commerce platform in terms of total commodity transactions.

Kuaishou lost as much as 68 billion yuan in the first half of today, but among them, 61.2 billion yuan was a one-time change in the fair value of convertible redeemable preferred shares.

Excluding related factors, the actual loss was only 6.35 billion yuan, while Non-GAAP's adjusted profit during the same period last year was 1.23 billion yuan.

In addition, Kuaishou has strong early-stage investors, including Tencent, Hang Lung Family, Yunfeng Fund, Temasek, Sequoia Capital China, and Baidu.

It is worth noting that the "same share with different rights" system is divided into A and B shares. The voting power of A shares is ten times that of B shares. The A shares are held by the co-founders Su Hua and Cheng Yixiao.

Wen Jie, wealth management strategist at Everbright Sun Hung Kai, said that Nongfu Spring’s top-notch has driven domestic demand stock speculation, and Blue Moon could benefit.

﹙Profile Picture﹚

Wen Jie: Blue Moon is the most hyped factor

Everbright Sun Hung Kai Wealth Management Strategist Wen Jie said that among the above five new stocks, none of them have been priced. From the business and market sentiment, Blue Moon is the most hyped factor.

He believes that Nongfu Spring (9633) has benefited from the recent strong topping, reflecting that domestic demand stocks have a certain amount of room for speculation, and Blue Moon, as the mainland laundry detergent, can also match the market sentiment.

Independent stock commentator Nie Zhenbang also believes that on the basis of profitability, Blue Moon's profitability is the most "hard and net" among the five new stocks. Although Blue Moon's products are not advanced technology, they are precisely the necessities of life to meet the rigid demand of the mainland market. After listing, it is expected to follow the upward trend of Nongfu Spring.

The consultation draft issued by the State Food and Drug Administration may restrict online drug sales, reflecting that Internet medical services have policy risks in the short term.

(AP)

Nie Zhenbang: Kuaishou is like Weimeng and most of the speculation in the sector

As for the prospect of "unicorn" Kuaishou, Nie Zhenbang said frankly that it depends on how big the market is. It has always been a non-monopoly business. There are many live broadcast platforms in the Mainland, and there may be little room for profit growth.

He described Kuaishou’s post-listing trend as similar to Weimob (2013). When a large number of SaaS stocks speculate, they will follow suit.

Wen Jie is optimistic about Kuaishou and JD Health in the long run. JD Health has recorded profitability, and its profitability is better than peers Alibaba Health and Ping An Good Doctor. It is the first choice for Internet healthcare.

However, being affected by the earlier consultation draft issued by the State Food and Drug Administration may restrict drug online sales, reflecting that Internet medical care has policy risks in the short term.

Regarding the two property management stocks, both experts believe that the property management market atmosphere is not good, and there are many choices in the market, lacking the concept of speculation.

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