APAC IPOs & Placements

Zhen Zhou, Toh

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

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<p><a href="https://www.smartkarma.com/entities/cheerwin" target="_blank" data-smartkarma-citation="entities:31314:1" rel="noopener">Cheerwin (6601 HK)</a> raised US$395m in its Hong Kong IPO, priced at HK$9.20 per share, the top-end of its initial IPO price range.</p>
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<p>Cheerwin is a home, personal, and pet care product platform. The company sells products such as air care, insecticides, repellants, household cleaners, and etc. As per CIC, the company is ranked first among domestic companies for the past five years (from 2015 - 2019) and had a market share of 9.4% in 2019 in terms of retail sales value.</p>
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<p>In this note, we discuss how Cheerwin's bookbuild demand compare to recent IPOs and update peer valuation table.</p>
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<p>We have previously covered the company in:</p>
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<ul style="list-style-type: disc;">
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<a href="https://www.smartkarma.com/insights/cheerwin-pre-ipo-monetizing-a-mature-business" target="_blank" data-smartkarma-citation="insights:47223" rel="noopener">Cheerwin (朝云集团) Pre-IPO - Monetizing a Mature Business</a> </li>
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<a href="https://www.smartkarma.com/insights/cheerwin-pre-ipo-9m20-results-product-review" target="_blank" data-smartkarma-citation="insights:48399" rel="noopener">Cheerwin (朝云集团) Pre-IPO - 9M20 Results + Product Review</a> </li>
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<a href="https://www.smartkarma.com/insights/cheerwin-pre-ipo-peer-analysis-and-thoughts-valuation" target="_blank" data-smartkarma-citation="insights:48493" rel="noopener">Cheerwin (朝云集团) Pre-IPO - Peer Analysis and Thoughts Valuation</a> </li>
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<a href="https://www.smartkarma.com/insights/cheerwin-ipo-not-the-right-price" target="_blank" data-smartkarma-citation="insights:48609" rel="noopener">Cheerwin (朝云集团) IPO - Not the Right Price</a> </li>
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Cheerwin (6601 HK) raised US$395m in its Hong Kong IPO, priced at HK$9.20 per share, the top-end of its initial IPO price range.


Cheerwin is a home, personal, and pet care product platform. The company sells products such as air care, insecticides, repellants, household cleaners, and etc. As per CIC, the company is ranked first among domestic companies for the past five years (from 2015 - 2019) and had a market share of 9.4% in 2019 in terms of retail sales value.


In this note, we discuss how Cheerwin's bookbuild demand compare to recent IPOs and update peer valuation table.


We have previously covered the company in:




Cheerwin (朝云集团) Pre-IPO - Monetizing a Mature Business 

Cheerwin (朝云集团) Pre-IPO - 9M20 Results + Product Review 

Cheerwin (朝云集团) Pre-IPO - Peer Analysis and Thoughts Valuation 

Cheerwin (朝云集团) IPO - Not the Right Price 



Cheerwin (朝云集团) IPO - Good Bookbuild Demand but Still Below Average

Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/archosaur-games" target="_blank" data-smartkarma-citation="entities:28948:1" rel="noopener">Archosaur Games (9990 HK)</a> (AG) is a mobile game developer in China with a focus on mobile massively multiplayer online role-playing game (MMORPGs). The company is backed by <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a> and <a href="https://www.smartkarma.com/entities/perfect-world-co-ltd-china" target="_blank" data-smartkarma-citation="entities:28923:1" rel="noopener">Perfect World (002624 CH)</a>. It has a track record of developing and publishing popular MMORPGs which include Dragon Raja (龙族幻想), Fantasy Zhuxian (梦幻诛仙), and Loong Craft (六龙争霸).</p>
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<p>AG was listed on the 15th of July, 2020, and it has traded well since then, still holding onto its 110% gain since IPO. But in October, share price dipped on the back of the rise in popularity of Genshin Impact. But we think that AG still offers one of the best exposure to mobile MMORPG game development given the track record of the company.</p>
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Archosaur Games (9990 HK) (AG) is a mobile game developer in China with a focus on mobile massively multiplayer online role-playing game (MMORPGs). The company is backed by Tencent Holdings (700 HK) and Perfect World (002624 CH). It has a track record of developing and publishing popular MMORPGs which include Dragon Raja (龙族幻想), Fantasy Zhuxian (梦幻诛仙), and Loong Craft (六龙争霸).

AG was listed on the 15th of July, 2020, and it has traded well since then, still holding onto its 110% gain since IPO. But in October, share price dipped on the back of the rise in popularity of Genshin Impact. But we think that AG still offers one of the best exposure to mobile MMORPG game development given the track record of the company.


2021 High Conviction - Archosaur Games (祖龙娱乐) - A Bet on the Mobile RPG Boom

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

<p>Member of the Hang Seng Composite Index (HSCI) are included in the Southbound Stock Connect program if their market cap exceeds HK$5bn. However, Secondary Listings and Biotech stocks that listed under Chapter 18A of the Listing Rules were excluded from the Stock Connect program.</p><p>This headline "*H.K. TO INCLUDE SECONDARY-LISTED COS IN STOCK CONNECT: SING TAO" could drive stocks that are HSCI members but not a part of Stock Connect higher. If Chapter 18A listed Biotech stocks are added to Stock Connect, they could run even more.</p><p>In this Insight, we take a look at stocks that are a part of the HSCI or are expected to join the HSCI in the next review and could be eligible to be included in the Stock Connect program.</p>

Member of the Hang Seng Composite Index (HSCI) are included in the Southbound Stock Connect program if their market cap exceeds HK$5bn. However, Secondary Listings and Biotech stocks that listed under Chapter 18A of the Listing Rules were excluded from the Stock Connect program.This headline "*H.K. TO INCLUDE SECONDARY-LISTED COS IN STOCK CONNECT: SING TAO" could drive stocks that are HSCI members but not a part of Stock Connect higher. If Chapter 18A listed Biotech stocks are added to Stock Connect, they could run even more.In this Insight, we take a look at stocks that are a part of the HSCI or are expected to join the HSCI in the next review and could be eligible to be included in the Stock Connect program.

Stock Connect - Secondary Listings and Biotech Stocks to Become Eligible?

Index Rebalance

Shimao Services Holdings Limited / Index Rebalance

<p>Hang Seng Indexes Company (HSIL) reviews the constituents of the Hang Seng Composite Index (HSCI) on a half yearly basis in March and September with data cut-off dates as of the end of December and June. The review announcement for the March 2021 review should be made on 12 February and will be effective after the close of trading on 5 March.</p><p>Although there are almost no assets indexed to the HSCI, the index forms the basis of stocks that are eligible for Southbound Stock Connect. Stocks that are included in the HSCI and subsequently included in the Stock Connect program get inflows from mainland investors.</p><p>Secondary Listings and Biotech stocks listed under Chapter 18A of the Listing Rules are not eligible for inclusion in the Stock Connect program.</p><p>There are a lot of stocks that will join the HSCI and subsequently included as a part of the Southbound Stock Connect program - these stocks will see buying from mainland investors and could outperform their peers and the market.</p><p>There are stocks that will be deleted from the HSCI and consequently deleted from the Southbound Stock Connect buy list. There are other stocks that will remain a part of the HSCI but will be removed from the Southbound Stock Connect buy list since their average market cap drops below HKD 5bn.</p><p>Read on for more details and stocks affected by the changes.</p>

Hang Seng Indexes Company (HSIL) reviews the constituents of the Hang Seng Composite Index (HSCI) on a half yearly basis in March and September with data cut-off dates as of the end of December and June. The review announcement for the March 2021 review should be made on 12 February and will be effective after the close of trading on 5 March.Although there are almost no assets indexed to the HSCI, the index forms the basis of stocks that are eligible for Southbound Stock Connect. Stocks that are included in the HSCI and subsequently included in the Stock Connect program get inflows from mainland investors.Secondary Listings and Biotech stocks listed under Chapter 18A of the Listing Rules are not eligible for inclusion in the Stock Connect program.There are a lot of stocks that will join the HSCI and subsequently included as a part of the Southbound Stock Connect program - these stocks will see buying from mainland investors and could outperform their peers and the market.There are stocks that will be deleted from the HSCI and consequently deleted from the Southbound Stock Connect buy list. There are other stocks that will remain a part of the HSCI but will be removed from the Southbound Stock Connect buy list since their average market cap drops below HKD 5bn.Read on for more details and stocks affected by the changes.

HSCI Index Rebalance and Stock Connect: Early Look at Potential Changes

<p>The Hang Seng Indexes Company Limited (HSIL) announced the results of its review of the Hang Seng Family of Indexes post market close on 13 November. The constituent changes will be effective after the close of trading on 4 December.</p><p>For the Hang Seng TECH Index, there are 2 inclusions and 2 exclusions.</p><p>The inclusions are <a href="https://www.smartkarma.com/entities/ming-yuan-cloud-group" target="_blank" data-smartkarma-citation="entities:29268:1" rel="noopener">Ming Yuan Cloud Group (909 HK)</a> and <a href="https://www.smartkarma.com/entities/archosaur-games" target="_blank" data-smartkarma-citation="entities:28948:1" rel="noopener">Archosaur Games (9990 HK)</a>, while the deletions are <a href="https://www.smartkarma.com/entities/hengten-networks-group-ltd" target="_blank" data-smartkarma-citation="entities:3296:1" rel="noopener">HengTen Ltd (136 HK)</a> and <a href="https://www.smartkarma.com/entities/netdragon-websoft-inc" target="_blank" data-smartkarma-citation="entities:3703:1" rel="noopener">Netdragon Websoft (777 HK)</a>.</p><p> One way turnover is 7.97% due to the inclusions/ exclusions, capping, and free float changes.</p><p>Both inclusions have 0.67 days of ADV to buy, <a href="https://www.smartkarma.com/entities/hengten-networks-group-ltd" target="_blank" data-smartkarma-citation="entities:3296:1" rel="noopener">HengTen Ltd (136 HK)</a> has 0.6 days of ADV to sell, while <a href="https://www.smartkarma.com/entities/netdragon-websoft-inc" target="_blank" data-smartkarma-citation="entities:3703:1" rel="noopener">Netdragon Websoft (777 HK)</a> has 1 day of ADV to sell.</p>

The Hang Seng Indexes Company Limited (HSIL) announced the results of its review of the Hang Seng Family of Indexes post market close on 13 November. The constituent changes will be effective after the close of trading on 4 December.For the Hang Seng TECH Index, there are 2 inclusions and 2 exclusions.The inclusions are Ming Yuan Cloud Group (909 HK) and Archosaur Games (9990 HK), while the deletions are HengTen Ltd (136 HK) and Netdragon Websoft (777 HK). One way turnover is 7.97% due to the inclusions/ exclusions, capping, and free float changes.Both inclusions have 0.67 days of ADV to buy, HengTen Ltd (136 HK) has 0.6 days of ADV to sell, while Netdragon Websoft (777 HK) has 1 day of ADV to sell.

Hang Seng TECH Index Rebalance: Two Changes as Assets Continue to Grow

Hong Kong

Archosaur Games Inc. operates as a game development company. The Company provides mobile game development, production, marketing, and other services. Archosaur Games markets its products throughout China.

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Archosaur Games (9990 HK)

Cheerwin (朝云集团) IPO - Good Bookbuild Demand but Still Below Average

Cheerwin (6601 HK) IPO was priced at HK$9.20 per share. In this note, we discuss how Cheerwin's bookbuild demand compare to recent IPOs and update...

Zhen Zhou, Toh

2021 High Conviction - Archosaur Games (祖龙娱乐) - A Bet on the Mobile RPG Boom

AG was listed on the 15th of July, 2020, and it has traded well since then. AG offers one of the best exposure to mobile MMORPG game development...

Zhen Zhou, Toh

Stock Connect - Secondary Listings and Biotech Stocks to Become Eligible?

A rule change that admits Secondary listings and Chapter 18A listed Biotech stocks to the Southbound Stock Connect could see Alibaba, JD and...

Brian Freitas

HSCI Index Rebalance and Stock Connect: Early Look at Potential Changes

While the HSCI does not have assets benchmarked to it, the index review is closely watched since the index forms the basis of stocks that are a...

Brian Freitas

Hang Seng TECH Index Rebalance: Two Changes as Assets Continue to Grow

The first review of the Hang Seng TECH index has 2 inclusions and 2 deletions. Assets benchmarked to the index are north of US$1.1bn and will...

Brian Freitas

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