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 analyze statistics on top repurchases over one week, one month, one quarter and one year periods ended on Mar 28th based on HKEx daily reports.</li>
<li>In the past 7 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), Kuaishou (1024 HK), Cosco Shipping (1919 HK).</li>
<li>In the past 30 days, the top 3 companies that repurchased the most shares from the market were CNBM (3323 HK), Tencent (700 HK), Kuaishou (1024 HK).</li>
</ul>


We analyze statistics on top repurchases over one week, one month, one quarter and one year periods ended on Mar 28th based on HKEx daily reports.
In the past 7 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), Kuaishou (1024 HK), Cosco Shipping (1919 HK).
In the past 30 days, the top 3 companies that repurchased the most shares from the market were CNBM (3323 HK), Tencent (700 HK), Kuaishou (1024 HK).


Hong Kong Buybacks Weekly (Mar 28th): Tencent, Kuaishou, Cosco Shipping

HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/china-merchants-port-holdings-company-ltd" target="_blank" data-smartkarma-citation="entities:15155:1" rel="noopener">China Merchants Port (144 HK)</a> may potentially play a role in <a href="https://www.smartkarma.com/entities/ck-hutchison-holdings-ltd" target="_blank" data-smartkarma-citation="entities:132:1" rel="noopener">CK Hutchison Holdings (1 HK)</a>'s port portfolio disposal should the mainland government want to step in. </li>
<li>While CMPH's size is small relative to the port portfolio, its parent China Merchants Group and sister <a href="https://www.smartkarma.com/entities/china-merchants-bank-co-ltd-3388a037-4214-4997-b45d-520518cfdb57" target="_blank" data-smartkarma-citation="entities:10987:1" rel="noopener">China Merchants Bank H (3968 HK)</a> can easily facilitate such a transaction.</li>
<li>Having the portfolio in the hands of mainland company is desirable to the Chinese government. Even if CMPH has no role, its 7.6x PER and 6% yield are attractive.</li>
</ul>



China Merchants Port (144 HK) may potentially play a role in CK Hutchison Holdings (1 HK)'s port portfolio disposal should the mainland government want to step in. 
While CMPH's size is small relative to the port portfolio, its parent China Merchants Group and sister China Merchants Bank H (3968 HK) can easily facilitate such a transaction.
Having the portfolio in the hands of mainland company is desirable to the Chinese government. Even if CMPH has no role, its 7.6x PER and 6% yield are attractive.


China Merchants Port (144 HK): Will It Have a Role in CKH's Port Sale?

<ul>
<li>We analyze statistics on top repurchases over one week, one month, one quarter and one year periods ended on Mar 21st based on HKEx daily reports.</li>
<li>In the past 7 days, the top 3 companies that repurchased the most shares from the market were China Hongqiao (1378 HK), Swire Pacific (19 HK), Samsonite (1910 HK).</li>
<li>In the past 30 days, the top 3 companies that repurchased the most shares from the market were CNBM (3323 HK), Swire Pacific (19 HK), China Hongqiao (1378 HK).</li>
</ul>


We analyze statistics on top repurchases over one week, one month, one quarter and one year periods ended on Mar 21st based on HKEx daily reports.
In the past 7 days, the top 3 companies that repurchased the most shares from the market were China Hongqiao (1378 HK), Swire Pacific (19 HK), Samsonite (1910 HK).
In the past 30 days, the top 3 companies that repurchased the most shares from the market were CNBM (3323 HK), Swire Pacific (19 HK), China Hongqiao (1378 HK).


Hong Kong Buybacks Weekly (Mar 21st): China Hongqiao, Swire Pacific, Samsonite

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>On 13 March, Ta Kung Pao, a Hong Kong newspaper owned by the Chinese government and Communist Party, denounced <a href="https://www.smartkarma.com/entities/ck-hutchison-holdings-ltd" target="_blank" data-smartkarma-citation="entities:132:1" rel="noopener">CK Hutchison Holdings (1 HK)</a>’s planned port transaction.</li>
<li>The <a href="https://www.tkww.hk/a/202503/14/AP67d37c94e4b0fbda9a1257d5.html" target="_blank" rel="noopener">opinion piece</a> is mainly political rhetoric, as even if China managed to block the deal, it would still not address the underlying concerns expressed in the article. </li>
<li>In the near term, the shares will likely be under pressure from a nationalistic backlash. Nevertheless, deal or no deal, the valuation remains undemanding. </li>
</ul>


On 13 March, Ta Kung Pao, a Hong Kong newspaper owned by the Chinese government and Communist Party, denounced CK Hutchison Holdings (1 HK)’s planned port transaction.
The opinion piece is mainly political rhetoric, as even if China managed to block the deal, it would still not address the underlying concerns expressed in the article. 
In the near term, the shares will likely be under pressure from a nationalistic backlash. Nevertheless, deal or no deal, the valuation remains undemanding. 


CK Hutchison (1 HK): Political Turbulence

<ul>
<li>Following <a href="https://www.smartkarma.com/entities/ck-hutchison-holdings-ltd" target="_blank" data-smartkarma-citation="entities:132:1" rel="noopener">CK Hutchison Holdings (1 HK)</a>'s port disposal, <a href="https://www.smartkarma.com/entities/cosco-shipping-ports-ltd" target="_blank" data-smartkarma-citation="entities:360:1" rel="noopener">Cosco Shipping Ports (1199 HK)</a> looks interesting, given its portfolio of port projects, which spans globally.</li>
<li>Overseas ports accounted for 38.9% of its noncurrent assets. A disposal of half of such portfolio will generate HK$15.2bn of cash flow, equalling almost 89% of its market capitalisation. </li>
<li>Even without corporate activities, its 6.4x PER, 6.7% dividend yield, and 11.8x EV/EBITDA are inexpensive. The 0.36x P/B for FY25 also deeply undervalued its assets.</li>
</ul>


Following CK Hutchison Holdings (1 HK)'s port disposal, Cosco Shipping Ports (1199 HK) looks interesting, given its portfolio of port projects, which spans globally.
Overseas ports accounted for 38.9% of its noncurrent assets. A disposal of half of such portfolio will generate HK$15.2bn of cash flow, equalling almost 89% of its market capitalisation. 
Even without corporate activities, its 6.4x PER, 6.7% dividend yield, and 11.8x EV/EBITDA are inexpensive. The 0.36x P/B for FY25 also deeply undervalued its assets.


COSCO Shipping Ports (1199 HK): What's Interesting After the CKH Port Sale?

China

COSCO SHIPPING Holdings Co., Ltd offers marine freight transportation services.  The Company offers container shipping, dry bulk shipping, logistics services, freight forwarding, and terminal and container leasing services internationally.  COSCO SHIPPING Holdings Co., Ltd operates container ships and terminals, and manufactures shipping containers.

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COSCO Shipping Holdings (1919 HK)

Hong Kong Buybacks Weekly (Mar 28th): Tencent, Kuaishou, Cosco Shipping

We analyzed the Hong Kong buyback data in the past week and highlight the top 3 companies that repurchased the most shares were Tencent (700 HK),...

Ke Yan, CFA, FRM

China Merchants Port (144 HK): Will It Have a Role in CKH's Port Sale?

China Merchants Port may play a role in CK Hutchison's port portfolio disposal if the government intervenes. A mainland ownership of the ports is...

Osbert Tang, CFA

Hong Kong Buybacks Weekly (Mar 21st): China Hongqiao, Swire Pacific, Samsonite

We analyzed the Hong Kong buyback data in the past week and highlight the top 3 companies that repurchased the most shares were China Hongqiao...

Ke Yan, CFA, FRM

CK Hutchison (1 HK): Political Turbulence

The Ta Kung Pao piece is mainly political rhetoric, as even if China managed to block the deal, it would still not address the underlying concerns...

Arun George

COSCO Shipping Ports (1199 HK): What's Interesting After the CKH Port Sale?

CK Hutchison's port disposal makes COSCO Shipping Ports look attractive, given its global port portfolio, potential cash flow if projects are...

Osbert Tang, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Hong Kong Buybacks Weekly (Mar 28th): Tencent, Kuaishou, Cosco Shipping

We analyzed the Hong Kong buyback data in the past week and highlight the top 3 companies that repurchased the most shares were Tencent (700 HK),...

Ke Yan, CFA, FRM

China Merchants Port (144 HK): Will It Have a Role in CKH's Port Sale?

​China Merchants Port may play a role in CK Hutchison's port portfolio disposal if the government intervenes. A mainland ownership of the ports is...

Osbert Tang, CFA

Hong Kong Buybacks Weekly (Mar 21st): China Hongqiao, Swire Pacific, Samsonite

We analyzed the Hong Kong buyback data in the past week and highlight the top 3 companies that repurchased the most shares were China Hongqiao...

Ke Yan, CFA, FRM

CK Hutchison (1 HK): Political Turbulence

The Ta Kung Pao piece is mainly political rhetoric, as even if China managed to block the deal, it would still not address the underlying concerns...

Arun George

COSCO Shipping Ports (1199 HK): What's Interesting After the CKH Port Sale?

​CK Hutchison's port disposal makes COSCO Shipping Ports look attractive, given its global port portfolio, potential cash flow if projects are...

Osbert Tang, CFA

China Merchants Port may play a role in CK Hutchison's port portfolio disposal if the government intervenes. A mainland ownership of the ports is...

CK Hutchison's port disposal makes COSCO Shipping Ports look attractive, given its global port portfolio, potential cash flow if projects are...