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.

Equity Capital Markets

Nanjing Leads Biolabs / Equity Capital Markets

<ul>
<li>Leads Biolabs raised HKD 1290m (USD 166m) from its global offering and will list on the Hong Kong Stock Exchange on Friday, July 24th.</li>
<li>In our previous note, we looked at the company's operation, management track records and discussed the IPO valuation.</li>
<li>In this note, we provide an update for the IPO before trading debut.</li>
</ul>


Leads Biolabs raised HKD 1290m (USD 166m) from its global offering and will list on the Hong Kong Stock Exchange on Friday, July 24th.
In our previous note, we looked at the company's operation, management track records and discussed the IPO valuation.
In this note, we provide an update for the IPO before trading debut.


Leads Biolabs (维立志生物) Trading Update

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

52TOYS Development / Equity Capital Markets

<ul>
<li>For IP toy, the ability to provide a variety of categories is valuable,which means brands have access to diverse/creative designs/production based on IP characteristics, highlighting/interpreting the core of each IP.</li>
<li>Driven by top-tier licensed IPs, 52TOYS achieved solid growth, but its revenue scale/profit margin are inferior to peers. Due to intense competition, 52TOYS's market share may be further squeezed.</li>
<li>The post-money valuation after Series C+ Financing is RMB4.27 billion. Based on the analysis, we think valuation of 52TOYS should be lower than <a href="https://www.smartkarma.com/entities/pop-mart-international-group-l" target="_blank" data-smartkarma-citation="entities:29016:1" rel="noopener">Pop Mart (9992 HK), </a><a href="https://www.smartkarma.com/entities/bloks-group-limited" target="_blank" data-smartkarma-citation="entities:43648:1" rel="noopener">Bloks (325 HK)</a>.</li>
</ul>


For IP toy, the ability to provide a variety of categories is valuable,which means brands have access to diverse/creative designs/production based on IP characteristics, highlighting/interpreting the core of each IP.
Driven by top-tier licensed IPs, 52TOYS achieved solid growth, but its revenue scale/profit margin are inferior to peers. Due to intense competition, 52TOYS's market share may be further squeezed.
The post-money valuation after Series C+ Financing is RMB4.27 billion. Based on the analysis, we think valuation of 52TOYS should be lower than Pop Mart (9992 HK), Bloks (325 HK).


Pre-IPO 52TOYS Development - The Business Model and the Concerns Behind

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<ul>
<li>We remain near-term bullish since our 4/22/25 Compass, when we discussed that 5110-5120 on the S&amp;P 500 (SPX) was a bounce spot and a level to trade [long] against.</li>
<li>We'll maintain our bullish view as long as market dynamics remain healthy and SPX and ACWI-US are above 5500 and $115; we would be buyers on pullbacks to these levels.</li>
<li>We would also be buyers at 5700-5785 on SPX and $120-$121 on ACWI-US, which are shorter-term supports.</li>
</ul>


We remain near-term bullish since our 4/22/25 Compass, when we discussed that 5110-5120 on the S&amp;P 500 (SPX) was a bounce spot and a level to trade [long] against.
We'll maintain our bullish view as long as market dynamics remain healthy and SPX and ACWI-US are above 5500 and $115; we would be buyers on pullbacks to these levels.
We would also be buyers at 5700-5785 on SPX and $120-$121 on ACWI-US, which are shorter-term supports.


MSCI ACWI (ACWI-US) Testing All-Time Highs; Buy Pullbacks to $120-$121 or $115 Supports. Many Buys

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>As expected, <a href="https://www.smartkarma.com/entities/bloks-group-limited" target="_blank" data-smartkarma-citation="entities:43648:1" rel="noopener">Bloks Group (325 HK)</a>, <a href="https://www.smartkarma.com/entities/guming-holdings-limited" target="_blank" data-smartkarma-citation="entities:40622:1" rel="noopener">Guming Holdings (1364 HK)</a> and <a href="https://www.smartkarma.com/entities/mixue-group" target="_blank" data-smartkarma-citation="entities:40623:1" rel="noopener">Mixue Group (2097 HK)</a> will be added to the Hang Seng Composite Index (HSCI) in June.</li>
<li>The HSCI inclusion will result in the stocks being added to Southbound Stock Connect from the open of trading on 9 June and that could result in sizeable inflows.</li>
<li>Use stock price spikes to trim positions in <a href="https://www.smartkarma.com/entities/bloks-group-limited" target="_blank" data-smartkarma-citation="entities:43648:1" rel="noopener">Bloks Group (325 HK)</a> ahead of lock-up expiry in July, and in <a href="https://www.smartkarma.com/entities/guming-holdings-limited" target="_blank" data-smartkarma-citation="entities:40622:1" rel="noopener">Guming Holdings (1364 HK)</a> ahead of lock-up expiry in August.</li>
</ul>


As expected, Bloks Group (325 HK), Guming Holdings (1364 HK) and Mixue Group (2097 HK) will be added to the Hang Seng Composite Index (HSCI) in June.
The HSCI inclusion will result in the stocks being added to Southbound Stock Connect from the open of trading on 9 June and that could result in sizeable inflows.
Use stock price spikes to trim positions in Bloks Group (325 HK) ahead of lock-up expiry in July, and in Guming Holdings (1364 HK) ahead of lock-up expiry in August.


HSCI Index Rebalance: Bloks (325 HK), Guming (1364 HK) & MIXUE (2097 HK) Added

<ul>
<li>Kayou’s business model revolves around IP licensing+blind box+multi-category expansion.With trading cards as the core traffic entry point, Kayou expands to other products, forming a synergistic effect of "card revenue+derivative products".</li>
<li>Kayou mainly relies on licensed IPs to drive growth, Its revenue are highly concentrated on limited number of IPs. The expiration of IP license agreements is “The Sword of Damocles”</li>
<li>Valuation could be lower than peers as the core risks are concentrated on IP renewal and the government's supervision of minors, which would negatively affect the sustainability of future growth.</li>
</ul>


Kayou’s business model revolves around IP licensing+blind box+multi-category expansion.With trading cards as the core traffic entry point, Kayou expands to other products, forming a synergistic effect of "card revenue+derivative products".
Kayou mainly relies on licensed IPs to drive growth, Its revenue are highly concentrated on limited number of IPs. The expiration of IP license agreements is “The Sword of Damocles”
Valuation could be lower than peers as the core risks are concentrated on IP renewal and the government's supervision of minors, which would negatively affect the sustainability of future growth.


Pre-IPO Kayou - The Strength of Business Model and the Potential Risks Behind

China

Bloks Group Limited designs toys. The Company develops and manufactures characters toys, assembly toys, and other products. Bloks Group markets its products throughout China.

Price Gauge
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Bloks Group (325 HK)

Leads Biolabs (维立志生物) Trading Update

Leads Biolabs raises $166m in global offering, set to list on Hong Kong Stock Exchange on July 26th with updated IPO details.

Ke Yan, CFA, FRM

Pre-IPO 52TOYS Development - The Business Model and the Concerns Behind

52TOYS had lower revenue scale and profit margin than peers. The model of relying on product social value and scarcity to drive repeat purchases...

Xinyao (Criss) Wang

MSCI ACWI (ACWI-US) Testing All-Time Highs; Buy Pullbacks to $120-$121 or $115 Supports. Many Buys

MSCI $ACWI Testing All-Time Highs; Buy Pullbacks to $120-$121 or $115 Supports; Bullish Outlook Intact. Discussed Thursday pre-market that a...

Vermilion Research

HSCI Index Rebalance: Bloks (325 HK), Guming (1364 HK) & MIXUE (2097 HK) Added

Bloks, Guming and MIXUE will be added to the HSCI on 6 June and then to Southbound Stock Connect from the open on 9 June. Use stock price jumps to...

Brian Freitas

Pre-IPO Kayou - The Strength of Business Model and the Potential Risks Behind

Kayou's business model relies on IP licensing and blind box strategy, with revenue concentrated on limited IPs. Valuation may be lower due to...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Leads Biolabs (维立志生物) Trading Update

​Leads Biolabs raises $166m in global offering, set to list on Hong Kong Stock Exchange on July 26th with updated IPO details.

Ke Yan, CFA, FRM

Pre-IPO 52TOYS Development - The Business Model and the Concerns Behind

52TOYS had lower revenue scale and profit margin than peers. The model of relying on product social value and scarcity to drive repeat purchases...

Xinyao (Criss) Wang

MSCI ACWI (ACWI-US) Testing All-Time Highs; Buy Pullbacks to $120-$121 or $115 Supports. Many Buys

MSCI $ACWI Testing All-Time Highs; Buy Pullbacks to $120-$121 or $115 Supports; Bullish Outlook Intact. Discussed Thursday pre-market that a...

Vermilion Research

HSCI Index Rebalance: Bloks (325 HK), Guming (1364 HK) & MIXUE (2097 HK) Added

Bloks, Guming and MIXUE will be added to the HSCI on 6 June and then to Southbound Stock Connect from the open on 9 June. Use stock price jumps to...

Brian Freitas

Pre-IPO Kayou - The Strength of Business Model and the Potential Risks Behind

​Kayou's business model relies on IP licensing and blind box strategy, with revenue concentrated on limited IPs. Valuation may be lower due to...

Xinyao (Criss) Wang

Leads Biolabs raises $166m in global offering, set to list on Hong Kong Stock Exchange on July 26th with updated IPO details.

Kayou's business model relies on IP licensing and blind box strategy, with revenue concentrated on limited IPs. Valuation may be lower due to...