Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyse the changes of A/H premium on 135 stocks over the last week.</li>
<li>The average A/H premium changed by -0.9ppt week on week to 118.3%. </li>
<li>Biggest decline in A/H premium appeared in the Communication Services and Consumer Staples sector while the biggest increase was from the Real Estate sector</li>
</ul>


We analyse the changes of A/H premium on 135 stocks over the last week.
The average A/H premium changed by -0.9ppt week on week to 118.3%. 
Biggest decline in A/H premium appeared in the Communication Services and Consumer Staples sector while the biggest increase was from the Real Estate sector


A/H Premium Weekly: Decline in Com Service and Consumer Staple Offset by Real Estate

<ul>
<li>We analyse the changes of A/H premium on 135 stocks over the last week. </li>
<li>Top three sectors in terms of A/H premium increase were consumer stable, utilities and industrials.</li>
<li>Six industrial names appeared in the top 10 stocks with week-on-week A/H increases. </li>
</ul>


We analyse the changes of A/H premium on 135 stocks over the last week. 
Top three sectors in terms of A/H premium increase were consumer stable, utilities and industrials.
Six industrial names appeared in the top 10 stocks with week-on-week A/H increases. 


A/H Premium Weekly: Industrials Led Premium Increase

<ul>
<li>We analyse the changes of A/H premium on 134 stocks over the last week.</li>
<li>Consumer discretionary, consumer staple and health care sectors lower the overall A/H premium. </li>
<li>Real estate and industrials sectors are the only two sectors with WoW A/H premium increases.</li>
</ul>


We analyse the changes of A/H premium on 134 stocks over the last week.
Consumer discretionary, consumer staple and health care sectors lower the overall A/H premium. 
Real estate and industrials sectors are the only two sectors with WoW A/H premium increases.


A/H Premium Weekly: Consumer and Health Care Lowered A/H Premium

<ul>
<li>We analyse the changes of A/H premium on 134 stocks over the last week. </li>
<li>The sector with the biggest A/H premium increase was Health Care (ΔA/H premium=+8.1ppt).  The average A/H premium of the the Health Care sector was also at 52 week high. </li>
<li>This is due to the A/H premia of many Health Care stocks at 52 week high: Wuxi Apptec, Tigermed, Pharmaron, Hepalink, and the increase of A/H for Join Lab, Haohai. </li>
</ul>


We analyse the changes of A/H premium on 134 stocks over the last week. 
The sector with the biggest A/H premium increase was Health Care (ΔA/H premium=+8.1ppt).  The average A/H premium of the the Health Care sector was also at 52 week high. 
This is due to the A/H premia of many Health Care stocks at 52 week high: Wuxi Apptec, Tigermed, Pharmaron, Hepalink, and the increase of A/H for Join Lab, Haohai. 


A/H Premium Weekly: Health Care A/H Premium at 52W High

HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

<p>After reporting an 8.65x surge in profit in 1H21, we think there are three drivers that should bring better outlook for <a href="https://www.smartkarma.com/entities/zhejiang-expressway-co-h" target="_blank" data-smartkarma-citation="entities:2178:1" rel="noopener">Zhejiang Expressway Co H (576 HK)</a> (ZJEC) over the next twelve months. These positive factors include further rebound in traffic and toll revenue, additional contribution from new projects and good upside from profit of <a href="https://www.smartkarma.com/entities/zheshang-securities-co-ltd" target="_blank" data-smartkarma-citation="entities:29981:1" rel="noopener">Zheshang Securities Co Ltd (601878 CH)</a>. </p><p>YTD, share price of ZJEC increased by 10%, but we still see good upside potential given that it trades on only 0.9x P/B for FY21 and its ROE for 1H21 already reached 10.1% (before annualised). On earnings valuation, its 5.7x and 5.0x PER for FY21 and FY22, respectively, also appeared very attractive, in our view. </p>

After reporting an 8.65x surge in profit in 1H21, we think there are three drivers that should bring better outlook for Zhejiang Expressway Co H (576 HK) (ZJEC) over the next twelve months. These positive factors include further rebound in traffic and toll revenue, additional contribution from new projects and good upside from profit of Zheshang Securities Co Ltd (601878 CH). YTD, share price of ZJEC increased by 10%, but we still see good upside potential given that it trades on only 0.9x P/B for FY21 and its ROE for 1H21 already reached 10.1% (before annualised). On earnings valuation, its 5.7x and 5.0x PER for FY21 and FY22, respectively, also appeared very attractive, in our view. 

Zhejiang Expressway (576 HK): Drivers in Place for Robust Outlook

China

Sichuan Expressway Company Limited is primarily engaged in the investment, construction, operation, and management of highway infrastructure projects in the People's Republic of China, particularly in Sichuan Province. The company also diversifies into related businesses such as new energy technologies, transportation services, and logistics. It was incorporated in 1997 and is headquartered in Chengdu, People's Republic of China.

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52-week Range	0.00 - 0.00
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Sichuan Expressway (107 HK)

A/H Premium Weekly: Decline in Com Service and Consumer Staple Offset by Real Estate

Biggest decline in A/H premium appeared in the Communication Services and Consumer Staples sector while the biggest increase was from the Real...

Ke Yan, CFA, FRM

A/H Premium Weekly: Industrials Led Premium Increase

Top three sectors in terms of A/H premium increase were consumer stable, utilities and industrials. Six industrial names appeared in the top 10 A/H...

Ke Yan, CFA, FRM

A/H Premium Weekly: Consumer and Health Care Lowered A/H Premium

We highlight that the consumer discretionary, consumer staple and health care sectors are the biggest driver for lower A/H premium WoW.

Ke Yan, CFA, FRM

A/H Premium Weekly: Health Care A/H Premium at 52W High

We highlight that A/H premium of Health Care sector at 52 week high due to rumor of entity list inclusion, this is due to A/H premia of many...

Ke Yan, CFA, FRM

Zhejiang Expressway (576 HK): Drivers in Place for Robust Outlook

We believe sustained traffic and toll recovery, contribution from new project addition and positive outlook for Zheshang Securities will drive...

Osbert Tang, CFA

Price Gauge

52-week Range

Market Cap (USDm)

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