APAC IPOs & Placements, Aequitas Research

Nicholas Tan

APAC 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

Paras Healthcare Limited / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/paras-healthcare-limited" target="_blank" data-smartkarma-citation="entities:43788:1" rel="noopener">Paras Healthcare Limited (0490145D IN)</a>  is looking to raise up to US$180m in its upcoming India IPO.</li>
<li>It is the fifth largest healthcare provider in India with a core focus on providing affordable and quality, specialized tertiary medical care in Tier 2 and 3 cities.</li>
<li>In this note, we look at the firm's past performance.</li>
</ul>



Paras Healthcare Limited (0490145D IN)  is looking to raise up to US$180m in its upcoming India IPO.
It is the fifth largest healthcare provider in India with a core focus on providing affordable and quality, specialized tertiary medical care in Tier 2 and 3 cities.
In this note, we look at the firm's past performance.


Paras Healthcare Pre-IPO: Increasing Efficiency but Patients Are Spending Less

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Event-Driven

Ping An Healthcare and Technology / Event-Driven

<ul>
<li>PAGD’s Special Dividend announcement made investors “unhappy”. PAGD's operation after IPO is a big failure, which is why there were large amounts of funds left that were not used.</li>
<li>Being a "vassal" of Ping An Group won’t bring high valuation due to limited growth potential. There’s still room for stock price/valuation to decline. Investors need not rush to buy.</li>
<li>The Special Dividend will be approved. Ping An's idea is to increase shareholding ratio by distributing dividends, which can also lower PAGD’s stock price, providing opportunity for a low-price privatization.</li>
</ul>


PAGD’s Special Dividend announcement made investors “unhappy”. PAGD's operation after IPO is a big failure, which is why there were large amounts of funds left that were not used.
Being a "vassal" of Ping An Group won’t bring high valuation due to limited growth potential. There’s still room for stock price/valuation to decline. Investors need not rush to buy.
The Special Dividend will be approved. Ping An's idea is to increase shareholding ratio by distributing dividends, which can also lower PAGD’s stock price, providing opportunity for a low-price privatization.


Ping An Healthcare and Technology (1833 HK) - About The Special Dividend and the Outlook

<ul>
<li>PAGD’s business model is problematic, leading to continuous shrinking revenue scale. As PAGD will entirely lose competitiveness in the future, the management wants to find a suitable way to "exit".</li>
<li>Privatizing PAGD at low price and integrating it into the Ping An Group's system is a good choice. In other words, Ping An hopes other shareholders to choose cash dividends.</li>
<li>Due to high tax, Hong Kong Stock Connect investors would prefer to sell in advance. Arbitrageurs can wait until stock price drops then make decisions based on new conversion price.</li>
</ul>


PAGD’s business model is problematic, leading to continuous shrinking revenue scale. As PAGD will entirely lose competitiveness in the future, the management wants to find a suitable way to "exit".
Privatizing PAGD at low price and integrating it into the Ping An Group's system is a good choice. In other words, Ping An hopes other shareholders to choose cash dividends.
Due to high tax, Hong Kong Stock Connect investors would prefer to sell in advance. Arbitrageurs can wait until stock price drops then make decisions based on new conversion price.


Ping An Healthcare and Technology (1833 HK) - Privatization Ahead?

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>Healthcare sector continues to gain momentum in Hong Kong market during pullback with materials and energy sectors lagging.</li>
<li>Value and Liquidity factors have outperformed since stimulus announcement in September.</li>
<li>
<a href="https://www.smartkarma.com/entities/anta-sports-products-ltd" target="_blank" data-smartkarma-citation="entities:10261:1" rel="noopener">Anta Sports Products (2020 HK)</a> , <a href="https://www.smartkarma.com/entities/jd-health-international-inc" target="_blank" data-smartkarma-citation="entities:29677:1" rel="noopener">JD Health International (6618 HK)</a> and <a href="https://www.smartkarma.com/entities/sands-china-ltd" target="_blank" data-smartkarma-citation="entities:182:1" rel="noopener">Sands China (1928 HK)</a> were rated as BUY as analysts turn toward China consumption plays as future winners.
</li>
</ul>


Healthcare sector continues to gain momentum in Hong Kong market during pullback with materials and energy sectors lagging.
Value and Liquidity factors have outperformed since stimulus announcement in September.

Anta Sports Products (2020 HK) , JD Health International (6618 HK) and Sands China (1928 HK) were rated as BUY as analysts turn toward China consumption plays as future winners.



BUY/SELL/HOLD: Hong Kong Stock Updates (October 15)

Quantitative Researcher, MRM Research

Nico Rosti

Quantitative Researcher

MRM Research

Quantitative Research

Equity Derivatives

<ul>
<li>In our <a href="https://www.smartkarma.com/insights/eqd-hsi-september-rally-what-s-next?slug=eqd-hsi-september-rally-what-s-next" target="_blank" rel="noopener">previous insight</a> about the <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">Hang Seng Index</a>'s we theorized a probable continuation of the rally in October, after some resistance, but the index just shoot up straight.</li>
<li>Resistance appeared last week, from an area considered a tail by our SHORT model, so it was not possible to make a forecast from there. </li>
<li>The question now is: can the index re-start to rally from here? Or will it pull back more this coming week?</li>
</ul>


In our previous insight about the Hang Seng Index's we theorized a probable continuation of the rally in October, after some resistance, but the index just shoot up straight.
Resistance appeared last week, from an area considered a tail by our SHORT model, so it was not possible to make a forecast from there. 
The question now is: can the index re-start to rally from here? Or will it pull back more this coming week?


EQD | The HSI Rally: Go LONG Now or Wait?

China

Alibaba Health Information Technology Limited is an integrated healthcare information and content service provider. The Company uses product identification, authentication, and tracking system data for its healthcare information.

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Alibaba Health Information Tec (241 HK)

Paras Healthcare Pre-IPO: Increasing Efficiency but Patients Are Spending Less

Paras Healthcare (PRH) is looking to raise up to US$180m in its upcoming India IPO. It is the fifth largest healthcare provider in India. In this...

Nicholas Tan

Ping An Healthcare and Technology (1833 HK) - About The Special Dividend and the Outlook

PAGD's post-IPO operation is a big failure, leaving large unused funds.It's only a matter of time before the valuation downturn.Ping An's plan for...

Xinyao (Criss) Wang

Ping An Healthcare and Technology (1833 HK) - Privatization Ahead?

Shrinking scale/poor outlook prompts management to seek "exit".Privatization at low price and integrating into Ping An Group is wise...

Xinyao (Criss) Wang

BUY/SELL/HOLD: Hong Kong Stock Updates (October 15)

Healthcare sector gains momentum in HK and materials and energy lag. Anta is appealing to the mass market with new megastores. JDH benefits from...

David Mudd

EQD | The HSI Rally: Go LONG Now or Wait?

The Hang Seng Index rally went vertical, then pulled back last week. Is this the right time to go in LONG? Or better wait for the index to pullback...

Nico Rosti

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