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>There have been 14 new listings on the Main Board of the <a href="https://www.smartkarma.com/entities/hong-kong-exchanges-clearing" target="_blank" data-smartkarma-citation="entities:490:1" rel="noopener">HKEX</a> in Q1. One listing is a transfer from the GEM Board and one is a De-SPAC.</li>
<li>Of the 14 stocks, we see <a href="https://www.smartkarma.com/entities/mixue-group" target="_blank" data-smartkarma-citation="entities:40623:1" rel="noopener">Mixue Group (2097 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/bloks-group" target="_blank" data-smartkarma-citation="entities:43648:1" rel="noopener">Bloks Group (1850960D CH)</a> as potential HSCI inclusions in June.</li>
<li>There are no lock-up expiries in the stocks ahead of inclusion in Southbound Stock Connect and the low float could take the stocks higher ahead of the index inclusion announcement.</li>
</ul>


There have been 14 new listings on the Main Board of the HKEX in Q1. One listing is a transfer from the GEM Board and one is a De-SPAC.
Of the 14 stocks, we see Mixue Group (2097 HK), Guming Holdings (1364 HK) and Bloks Group (1850960D CH) as potential HSCI inclusions in June.
There are no lock-up expiries in the stocks ahead of inclusion in Southbound Stock Connect and the low float could take the stocks higher ahead of the index inclusion announcement.


HSCI Index Rebalance Preview: Three Hot Inclusions to Stock Connect in June

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

BrainAurora Medical Technology / Equity Capital Markets

<ul>
<li>Although DTx is considered a promising field, the industry is still in the early stages of trial and error development, and there is still a long distance from mature commercialization.</li>
<li>BrainAurora’s revenue YoY growth rate declined significantly. Considering the small revenue scale and slowdown in revenue growth, is it possible for BrainAurora to experience stagnant growth in the near future?</li>
<li>BrainAurora’s products haven’t been widely recognized in China’s hospitals/medical system, nor has it established a solid profit model.High valuation isn’t justified. We doubt if this field could bring good return.</li>
</ul>


Although DTx is considered a promising field, the industry is still in the early stages of trial and error development, and there is still a long distance from mature commercialization.
BrainAurora’s revenue YoY growth rate declined significantly. Considering the small revenue scale and slowdown in revenue growth, is it possible for BrainAurora to experience stagnant growth in the near future?
BrainAurora’s products haven’t been widely recognized in China’s hospitals/medical system, nor has it established a solid profit model.High valuation isn’t justified. We doubt if this field could bring good return.


Pre-IPO BrainAurora Medical Technology - Weak Growth Prospects Cannot Support High Valuation

<ul>
<li>If the System or this treatment method is really effective and accepted by hospitals/doctors, under the coverage of medical insurance catalog already, why BrainAurora’s revenue scale is still so small?</li>
<li>CSRC questioned BrainAurora’s high selling expenses. Since either SG&amp;A or R&amp;D expenses already exceed revenue, BrainAurora would continue to suffer from losses. The Company hasn’t established a solid profit model.</li>
<li>BrainAurora completed a total of 7 rounds of financing, with a post investment valuation of RMB2.7 billion. However, it is difficult for BrainAurora to match this high valuation after IPO.</li>
</ul>


If the System or this treatment method is really effective and accepted by hospitals/doctors, under the coverage of medical insurance catalog already, why BrainAurora’s revenue scale is still so small?
CSRC questioned BrainAurora’s high selling expenses. Since either SG&amp;A or R&amp;D expenses already exceed revenue, BrainAurora would continue to suffer from losses. The Company hasn’t established a solid profit model.
BrainAurora completed a total of 7 rounds of financing, with a post investment valuation of RMB2.7 billion. However, it is difficult for BrainAurora to match this high valuation after IPO.


Pre-IPO BrainAurora Medical Technology (PHIP Updates) - Some Points Worth the Attention

<ul>
<li>DTx industry is still in the early stages of development. The establishment of a matching operation/service system is a very difficult task. There is a long distance from mature commercialization. </li>
<li>BrainAurora’s sales scale is small because its products haven’t received widespread recognition from medical system in China. Internationalization is challenging because it requires cross-border transfer of personal or scientific data.</li>
<li>BrainAurora’s business prospects is still unclear.As the attitude of capital market towards DTx has become more rational, investors have begun to doubt if this field could really bring good return.</li>
</ul>


DTx industry is still in the early stages of development. The establishment of a matching operation/service system is a very difficult task. There is a long distance from mature commercialization. 
BrainAurora’s sales scale is small because its products haven’t received widespread recognition from medical system in China. Internationalization is challenging because it requires cross-border transfer of personal or scientific data.
BrainAurora’s business prospects is still unclear.As the attitude of capital market towards DTx has become more rational, investors have begun to doubt if this field could really bring good return.


Pre-IPO BrainAurora Medical Technology - The Outlook Is Highly Uncertain

China

BrainAurora Medical Technology provides system integral software solutions and medical-grade digital therapy (DTx) products for cognitive impairment to hospitals and research projects in Mainland China. The company offers assessment and intervention for cognitive impairments caused by vascular diseases, neurodegenerative diseases, psychological disorders, and child development deficiencies, with its main product being the Brain Function Information Management Platform software system. BrainAurora Medical Technology was founded in 2012 and is headquartered in Shaoxing, China.

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BrainAurora Medical Technology (6681 HK)

HSCI Index Rebalance Preview: Three Hot Inclusions to Stock Connect in June

There could be 3 adds to the HSCI and Southbound Stock Connect in June. There are no lock-up expiries in the stocks prior to June and the low float...

Brian Freitas

Pre-IPO BrainAurora Medical Technology - Weak Growth Prospects Cannot Support High Valuation

BrainAurora’s products haven’t been widely recognized in China’s hospital market/medical system, nor has the Company established a solid profit...

Xinyao (Criss) Wang

Pre-IPO BrainAurora Medical Technology (PHIP Updates) - Some Points Worth the Attention

BrainAurora's small revenue scale indicates its products haven't been recognized as an effective treatment method by hospitals. Business prospects...

Xinyao (Criss) Wang

Pre-IPO BrainAurora Medical Technology - The Outlook Is Highly Uncertain

BrainAurora's products haven't received widespread recognition, leading to small revenue scale. Due to lack of commercialization path, Investors...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)