HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

Shenzhen Expressway Co H / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shenzhen-expressway-co-h" target="_blank" data-smartkarma-citation="entities:2875:1" rel="noopener">Shenzhen Expressway Co H (548 HK)</a> guided that many drivers are presented for the rest of the year to support growth, after a 24% YoY decline in 1Q22 net profit. </li>
<li>Toll road business should benefit from organic growth and project completions, while clean energy and waste treatment businesses will experience astronomical growth from capacity acquisitions. </li>
<li>There exists room to leverage up for growth as liabilities-to-asset ratio is still 11pp below its tolerance level of 65%. Besides below-average PERs, FY22F yield of 10% is attractive too.</li>
</ul>



Shenzhen Expressway Co H (548 HK) guided that many drivers are presented for the rest of the year to support growth, after a 24% YoY decline in 1Q22 net profit. 
Toll road business should benefit from organic growth and project completions, while clean energy and waste treatment businesses will experience astronomical growth from capacity acquisitions. 
There exists room to leverage up for growth as liabilities-to-asset ratio is still 11pp below its tolerance level of 65%. Besides below-average PERs, FY22F yield of 10% is attractive too.


Shenzhen Expressway (548 HK): Cautiously Optimistic

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

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyse the changes of A/H premium on 135 stocks over the last week.</li>
<li>We highlight three sectors that contributed to the A/H premium decline: consumer staple, consumer discretionary, and information technology.</li>
<li>We highlight A/H premium increase of China Communication Construction (1800 HK), and China Eastern Air (670 HK). </li>
</ul>


We analyse the changes of A/H premium on 135 stocks over the last week.
We highlight three sectors that contributed to the A/H premium decline: consumer staple, consumer discretionary, and information technology.
We highlight A/H premium increase of China Communication Construction (1800 HK), and China Eastern Air (670 HK). 


A/H Premium Weekly: China Comm Construction, China Eastern Air

<ul>
<li>We analyse the changes of A/H premium on 135 stocks over the last week.</li>
<li>Industrial, Energy and Communication Services were the top three sectors contributing to the A/H premium declines. </li>
<li>Yet 4 names are at 52 week high of A/H premium: Air China Ltd, Guangshen Railway, Shenzhen HepaLink, Beijing North Star.</li>
</ul>


We analyse the changes of A/H premium on 135 stocks over the last week.
Industrial, Energy and Communication Services were the top three sectors contributing to the A/H premium declines. 
Yet 4 names are at 52 week high of A/H premium: Air China Ltd, Guangshen Railway, Shenzhen HepaLink, Beijing North Star.


A/H Premium Weekly: Biggest A/H Premium Declines in a Year

<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

China

Sichuan Expressway Company Limited develops, invests in, and operates infrastructure projects including toll roads, bridges, tunnels, and ancillary facilities.

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Sichuan Expressway Co H (107 HK)

Shenzhen Expressway (548 HK): Cautiously Optimistic

SZEX is expected to gain earnings momentum over the next few quarters as toll traffic recovers, clean energy and waste management capacity...

Osbert Tang, CFA

A/H Premium Weekly: China Comm Construction, China Eastern Air

We highlight three sectors that contributed to the WOW A/H premium decline: consumer staple, consumer discretionary, and information technology,...

Ke Yan, CFA, FRM

A/H Premium Weekly: Biggest A/H Premium Declines in a Year

The market average A/H premium registered the biggest declines in the past one year. We highlight top sectors by the decline of A/H premium, as...

Ke Yan, CFA, FRM

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

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52-week Range

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