Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

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<p>This week in StubWorld ...</p>
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<p>Three days after raising HK$4bn via a top-up placement, <strong><a href="https://www.smartkarma.com/entities/evergrande-health-industry-group-ltd" target="_blank" data-smartkarma-citation="entities:713:1" rel="noopener">Evergrande Auto (708 HK)</a> </strong>("EA") also officially known as <strong>China Evergrande New Energy Vehicle Group</strong> announces an intention to list on Shanghai's Sci-Tech Board (also know as the "STAR Market").</p>
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<p>Preceding my comments on <strong>EA</strong> <em>and </em><a href="https://www.smartkarma.com/entities/asm-pacific-technology-ltd" target="_blank" data-smartkarma-citation="entities:15061:1" rel="noopener">Asm Pacific Technology (522 HK)</a>, are at the top of the weekly setup/unwind tables for Asia-Pacific Holdcos.</p>
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<p>These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent - of at least 20%.</p>
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This week in StubWorld ...



Three days after raising HK$4bn via a top-up placement, Evergrande Auto (708 HK) ("EA") also officially known as China Evergrande New Energy Vehicle Group announces an intention to list on Shanghai's Sci-Tech Board (also know as the "STAR Market").



Preceding my comments on EA and Asm Pacific Technology (522 HK), are at the top of the weekly setup/unwind tables for Asia-Pacific Holdcos.





These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent - of at least 20%.




StubWorld: Evergrande Auto (708 HK) Tapping All & Sundry; ASM Pacific Going Private?

Founder & CEO Bond Angle, LLC, Bond Angle, LLC

Vicki Bryan

Founder & CEO Bond Angle, LLC

Bond Angle, LLC

Insightful commentary and analysis on bond markets and market movers, including financial, economic, and industry catalysts and management shenanigans. 

High yield market investment research

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<p><a href="https://www.smartkarma.com/entities/tesla-motors-inc" target="_blank" data-smartkarma-citation="entities:20279:1" rel="noopener"><strong>Tesla Motors (TSLA US)</strong></a> could send a message to embattled <strong><a href="https://www.smartkarma.com/entities/nikola-corp" target="_blank" data-smartkarma-citation="entities:29029:1" rel="noopener">Nikola Corp (NKLA US)</a></strong>: <strong>been there, done that</strong>.</p><p><strong>Nikola's founder and CEO Trevor Milton has stepped down</strong> after he and his company have been <a href="https://hindenburgresearch.com/nikola/" target="_blank" rel="noopener">accused</a> of <a href="https://www.bloomberg.com/news/articles/2020-09-12/nikola-s-history-of-discrepancies-has-been-hiding-in-plain-sight?sref=Q1XEaVVD" target="_blank" rel="noopener">seemingly everything</a> from <strong>dicey accounting</strong> to promoting <strong>technology the company doesn't have</strong> to <strong>fake product demos</strong> designed to <strong>deliberately mislead investors—</strong>charges now being investigated by the <strong>US Securities and Exchange Commission (SEC)</strong> and <strong>Department of Justice (DOJ)</strong>.</p><p><strong>Every single allegation and more, plus the spectre of <a href="https://www.wsj.com/articles/tesla-faces-deepening-criminal-probe-over-whether-it-misstated-production-figures-1540576636" target="_blank" rel="noopener">ongoing investigations </a>by <a href="https://www.washingtonpost.com/technology/2020/02/13/tesla-sec/" target="_blank" rel="noopener">the SEC</a> and <a href="https://www.wsj.com/articles/tesla-faces-deepening-criminal-probe-over-whether-it-misstated-production-figures-1540576636" target="_blank" rel="noopener">the DOJ</a>, also describe Tesla as run by CEO Elon Musk.</strong></p><p>Keep this in mind as <strong>we await what he and Tesla may promise</strong> tomorrow in the company's eagerly awaited <strong>"<a href="https://www.tesla.com/2020shareholdermeeting" target="_blank" rel="noopener">Battery Day</a>"</strong> presentation to investors.</p><div class="content-highlight"><p><em>Full Bond Angle report <strong>continues</strong>...</em></p></div>

Tesla Motors (TSLA US) could send a message to embattled Nikola Corp (NKLA US): been there, done that.Nikola's founder and CEO Trevor Milton has stepped down after he and his company have been accused of seemingly everything from dicey accounting to promoting technology the company doesn't have to fake product demos designed to deliberately mislead investors—charges now being investigated by the US Securities and Exchange Commission (SEC) and Department of Justice (DOJ).Every single allegation and more, plus the spectre of ongoing investigations by the SEC and the DOJ, also describe Tesla as run by CEO Elon Musk.Keep this in mind as we await what he and Tesla may promise tomorrow in the company's eagerly awaited "Battery Day" presentation to investors.Full Bond Angle report continues...

Nikola's Troubles And Tesla's History Shadow Battery Day

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<p>In this insight, we provide our thoughts on the resignation of <a href="https://www.smartkarma.com/entities/nikola-corp" target="_blank" data-smartkarma-citation="entities:29029:1" rel="noopener">Nikola Corp (NKLA US)</a> founder Trevor Milton, who will be replaced by Stephen Girsky, a former GM executive who already sits on Nikola Corp's board. On 10 September, a firm called  Hindenburg Research published a<a href="https://hindenburgresearch.com/nikola/" target="_blank" rel="noopener"> report</a> that harshly criticized the company. We are interested in Nikola mainly because a Korean company called <a href="https://www.smartkarma.com/entities/hanwha-solutions" target="_blank" data-smartkarma-citation="entities:8656:1" rel="noopener">Hanwha Solutions (009830 KS)'s </a>stock price has been highly impacted by Nikola's share price recently.</p><p>In our view, Hindenburg Research makes legitimate criticism of Nikola Corp and its founder Trevor Milton. Nikola Corp has come out with a rebuttal but we do not believe this is enough to calm investors and customers. Regarding Nikola Corp, it all comes down to whether or not the company has its own unique hydrogen-based technology which it claims it does. Nikola Corp needs to hire a well-respected third party agent and give sufficient proof that its technology really works. </p><p>Investors are waiting for the confirmation of an independent third party test of its technology. If the company is unwilling to provide such tests and continues to delay such tests, we believe this could have a further negative impact on Nikola Corp and its major investors including Hanwha Solutions. </p>

In this insight, we provide our thoughts on the resignation of Nikola Corp (NKLA US) founder Trevor Milton, who will be replaced by Stephen Girsky, a former GM executive who already sits on Nikola Corp's board. On 10 September, a firm called  Hindenburg Research published a report that harshly criticized the company. We are interested in Nikola mainly because a Korean company called Hanwha Solutions (009830 KS)'s stock price has been highly impacted by Nikola's share price recently.In our view, Hindenburg Research makes legitimate criticism of Nikola Corp and its founder Trevor Milton. Nikola Corp has come out with a rebuttal but we do not believe this is enough to calm investors and customers. Regarding Nikola Corp, it all comes down to whether or not the company has its own unique hydrogen-based technology which it claims it does. Nikola Corp needs to hire a well-respected third party agent and give sufficient proof that its technology really works. Investors are waiting for the confirmation of an independent third party test of its technology. If the company is unwilling to provide such tests and continues to delay such tests, we believe this could have a further negative impact on Nikola Corp and its major investors including Hanwha Solutions. 

Nikola's Founder Resigns - The Next Enron?

<p>In this insight, we compare <a href="https://www.smartkarma.com/entities/lg-chem-ltd" target="_blank" data-smartkarma-citation="entities:3583:1" rel="noopener">LG Chem Ltd (051910 KS)</a>'s carve-out and <a href="https://www.smartkarma.com/entities/sk-innovation-co-ltd" target="_blank" data-smartkarma-citation="entities:1268:1" rel="noopener">SK Innovation (096770 KS)</a>'s spin-off of their rechargeable battery businesses. Interestingly, the formal announcements of the IPOs of these two businesses resulted in different price reactions of their parent companies. </p><p><strong>Why Are the Share Price Reactions of LG Chem &amp; SK Innovation So Different? </strong></p><ul>
<li><strong>Tesla Effect</strong></li>
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<strong>Uncertainty in the post carve-out </strong><strong>dilution</strong>
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<li><strong>Valuations of high vs low multiples business units </strong></li>
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In this insight, we compare LG Chem Ltd (051910 KS)'s carve-out and SK Innovation (096770 KS)'s spin-off of their rechargeable battery businesses. Interestingly, the formal announcements of the IPOs of these two businesses resulted in different price reactions of their parent companies. Why Are the Share Price Reactions of LG Chem &amp; SK Innovation So Different? 
Tesla Effect

Uncertainty in the post carve-out dilution

Valuations of high vs low multiples business units 


Comparison of LG Chem's Carve-Out & SK Innovation's Spin-Off of Rechargeable Battery Businesses

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

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.

Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/ganfeng-lithium-co-ltd" target="_blank" data-smartkarma-citation="entities:26795:1" rel="noopener">Ganfeng Lithium (1772 HK)</a> aims to raise around US$191m to fund its capacity expansion plans. </p><p>We have covered the H-shares listing in 2018, <a href="https://www.smartkarma.com/insights/ganfeng-lithium-ipo-falling-lithium-prices-weigh-on-the-leading-producer" target="_blank" data-smartkarma-citation="insights:24529" rel="noopener">Ganfeng Lithium IPO (赣锋锂业): Falling Lithium Prices Weigh on the Leading Producer.</a></p><p>The shares have more than doubled on YTD basis, even though earnings have far from kept pace. However, analyst continue to be positive on the stock and are building in much faster growth ahead.</p>

Ganfeng Lithium (1772 HK) aims to raise around US$191m to fund its capacity expansion plans. We have covered the H-shares listing in 2018, Ganfeng Lithium IPO (赣锋锂业): Falling Lithium Prices Weigh on the Leading Producer.The shares have more than doubled on YTD basis, even though earnings have far from kept pace. However, analyst continue to be positive on the stock and are building in much faster growth ahead.

Ganfeng Lithium Placement - Momentum Play

United States

Tesla Inc. operates as a multinational automotive and clean energy company. The Company designs and manufactures electric vehicles, battery energy storage from home to grid-scale, solar panels and solar roof tiles, and related products and services. Tesla owns its sales and service network and sells electric power train components to other automobile manufacturers.

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Tesla (TSLA US)

StubWorld: Evergrande Auto (708 HK) Tapping All & Sundry; ASM Pacific Going Private?

This week in StubWorld ... Shareholders are the big loser as the US, UK and China turn HSBC Holdings (5 HK) into a political...

David Blennerhassett

Nikola's Troubles And Tesla's History Shadow Battery Day

what to expect

Vicki Bryan

Nikola's Founder Resigns - The Next Enron?

In our view, Hindenburg Research makes legitimate criticism of Nikola Corp and its founder Trevor Milton. Nikola Corp has come out with a rebuttal...

Douglas Kim

Comparison of LG Chem's Carve-Out & SK Innovation's Spin-Off of Rechargeable Battery Businesses

In this insight, we compare the spin-offs and IPOs of LG Chem Ltd (051910 KS) and SK Innovation (096770 KS)'s rechargeable battery business units....

Douglas Kim

Ganfeng Lithium Placement - Momentum Play

Ganfeng Lithium IPO (赣锋锂业): Falling Lithium Prices Weigh on the Leading Producer

Sumeet Singh

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