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 the monthly Hong Kong Connect flows with our data engine.</li>
<li>We tabulate the top stocks by inflows, outlfows, and holding by mainland investors.</li>
<li>Inflows last month amounted to USD 5.7bn which marks sixth months of inflows. Top three stocks southbound investors bought were Meituan, CNOOC, and Tencent.</li>
</ul>


We analyze the monthly Hong Kong Connect flows with our data engine.
We tabulate the top stocks by inflows, outlfows, and holding by mainland investors.
Inflows last month amounted to USD 5.7bn which marks sixth months of inflows. Top three stocks southbound investors bought were Meituan, CNOOC, and Tencent.


Hong Kong Connect Flows Monthly (May): Meituan, CNOOC, Tencent

<ul>
<li>We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine.</li>
<li>Consumer staple, health care, and information technology led the outflows of USD 1.3bn last week.</li>
<li>We highlight flows of COSCO Shipping, SF Holding, Yangtze Power, CMB, Wuliangye, Moutai.</li>
</ul>


We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine.
Consumer staple, health care, and information technology led the outflows of USD 1.3bn last week.
We highlight flows of COSCO Shipping, SF Holding, Yangtze Power, CMB, Wuliangye, Moutai.


Northbound Flows: COSCO Shipping, SF Holding, Yangtze Power, CMB, Wuliangye, Moutai

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Inside is a recap of movements in the last week relating to the Hong Kong Stock-Shanghai and Shenzhen Northbound Connect facilities, broken down by company and industry. </li>
<li>Overall, net inflow was ~US$0.7bn, split between Shanghai (+US$1bn) and Shenzhen (-US$0.3bn)  </li>
<li>The largest inflows were into <a href="https://www.smartkarma.com/entities/china-yangtze-power-co-ltd" target="_blank" data-smartkarma-citation="entities:3210:1" rel="noopener">China Yangtze Power (600900 CH)</a> and <a href="https://www.smartkarma.com/entities/cosco-shipping-holdings-co-ltd-a" target="_blank" data-smartkarma-citation="entities:27590:1" rel="noopener">Cosco Shipping Holdings (601919 CH)</a>. The largest outflows were in <a href="https://www.smartkarma.com/entities/kweichow-moutai-co-ltd-a" target="_blank" data-smartkarma-citation="entities:1553:1" rel="noopener">Kweichow Moutai (600519 CH)</a>and <a href="https://www.smartkarma.com/entities/contemporary-amperex-techn-a" target="_blank" data-smartkarma-citation="entities:24404:1" rel="noopener">CATL (A) (300750 CH)</a>.</li>
</ul>


Inside is a recap of movements in the last week relating to the Hong Kong Stock-Shanghai and Shenzhen Northbound Connect facilities, broken down by company and industry. 
Overall, net inflow was ~US$0.7bn, split between Shanghai (+US$1bn) and Shenzhen (-US$0.3bn)  
The largest inflows were into China Yangtze Power (600900 CH) and Cosco Shipping Holdings (601919 CH). The largest outflows were in Kweichow Moutai (600519 CH)and CATL (A) (300750 CH).


Shanghai/​Shenzhen Northbound Connect: Weekly Moves (27 May 2022)

HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

Orient Overseas International / Equity Bottom-Up

<ul>
<li>While <a href="https://www.smartkarma.com/entities/orient-overseas-international" target="_blank" data-smartkarma-citation="entities:801:1" rel="noopener">Orient Overseas International (316 HK)</a> will welcome its inclusion in Hang Seng Index, there is risk that it will follow the pattern that new inclusions performed badly post entry.</li>
<li>Globally, many container shipping stocks have retreated from their peaks in Mar this year, but OOIL is still hovering around its peak level, making is susceptible to a correction.</li>
<li>Challenging factors include softening sequential momentum, peaking out of spot rates, weaker demand picture, increase in supply pressure and declining earnings trend are weighing on the industry and the company.</li>
</ul>


While Orient Overseas International (316 HK) will welcome its inclusion in Hang Seng Index, there is risk that it will follow the pattern that new inclusions performed badly post entry.
Globally, many container shipping stocks have retreated from their peaks in Mar this year, but OOIL is still hovering around its peak level, making is susceptible to a correction.
Challenging factors include softening sequential momentum, peaking out of spot rates, weaker demand picture, increase in supply pressure and declining earnings trend are weighing on the industry and the company.


Orient Overseas Intl (316 HK): Cursed by Index Inclusion?

Thematic (Sector/Industry)

<ul>
<li>The trend of Rmb depreciation is generally negative to China companies, but we think the shipping companies present an interesting angle given their USD revenue stream and partial Rmb costs.</li>
<li>
<a href="https://www.smartkarma.com/entities/china-cosco-holdings-h" target="_blank" data-smartkarma-citation="entities:286:1" rel="noopener">COSCO Shipping Holdings (1919 HK)</a>, <a href="https://www.smartkarma.com/entities/cosco-shipping-energy-tran-h" target="_blank" data-smartkarma-citation="entities:646:1" rel="noopener">Cosco Shipping Energy Transportation (H) (1138 HK)</a>, <a href="https://www.smartkarma.com/entities/sitc-international-holdings" target="_blank" data-smartkarma-citation="entities:15301:1" rel="noopener">SITC International (1308 HK)</a> and <a href="https://www.smartkarma.com/entities/pacific-basin-shipping-ltd" target="_blank" data-smartkarma-citation="entities:929:1" rel="noopener">Pacific Basin Shipping (2343 HK)</a> are some names that can realise benefits.<a href="https://www.smartkarma.com/entities/cosco-capital-inc" target="_blank" data-smartkarma-citation="entities:10665:1" rel="noopener"></a>
</li>
<li>We think <a href="https://www.smartkarma.com/entities/china-cosco-holdings-h" target="_blank" data-smartkarma-citation="entities:286:1" rel="noopener">COSCO Shipping Holdings (1919 HK)</a> is the most attractive one, given its USD revenue, partial Rmb cost base, reporting in Rmb, low net debt and potentially better volume. <a href="https://www.smartkarma.com/entities/cosco-shipping-holdings-co-ltd-a" target="_blank" data-smartkarma-citation="entities:27590:1" rel="noopener"></a>
</li>
</ul>


The trend of Rmb depreciation is generally negative to China companies, but we think the shipping companies present an interesting angle given their USD revenue stream and partial Rmb costs.

COSCO Shipping Holdings (1919 HK), Cosco Shipping Energy Transportation (H) (1138 HK), SITC International (1308 HK) and Pacific Basin Shipping (2343 HK) are some names that can realise benefits.

We think COSCO Shipping Holdings (1919 HK) is the most attractive one, given its USD revenue, partial Rmb cost base, reporting in Rmb, low net debt and potentially better volume. 



Rmb Depreciation: An Angle for the Shipping Names?

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.

Price Gauge
52-week Range	0.00 - 0.00
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COSCO Shipping Holdings (1919 HK)

Hong Kong Connect Flows Monthly (May): Meituan, CNOOC, Tencent

Inflows last month amounted to USD 5.7bn which marks sixth months of inflows. Top three stocks southbound investors bought were Meituan, CNOOC, and...

Ke Yan, CFA, FRM

Northbound Flows: COSCO Shipping, SF Holding, Yangtze Power, CMB, Wuliangye, Moutai

We highlight northbound Shanghai/Shenzhen Connect flows of COSCO Shipping, SF Holding, Yangtze Power, CMB, Wuliangye, Moutai.

Ke Yan, CFA, FRM

Shanghai/Shenzhen Northbound Connect: Weekly Moves (27 May 2022)

Overall, net inflow was ~US$0.7bn, split between Shanghai (+US$1bn) and Shenzhen (-US$0.3bn) The largest inflow was into China Yangtze (600900...

David Blennerhassett

Orient Overseas Intl (316 HK): Cursed by Index Inclusion?

While news of HSI inclusion is positive, OOIL is now open to the pattern of post-entry weakness. It is facing more challenges and outperformance...

Osbert Tang, CFA

Rmb Depreciation: An Angle for the Shipping Names?

Shipping companies present an interesting angle to look at under the current trend of Rmb depreciation. USD revenue stream and partial Rmb costs...

Osbert Tang, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Hong Kong Connect Flows Monthly (May): Meituan, CNOOC, Tencent

Inflows last month amounted to USD 5.7bn which marks sixth months of inflows. Top three stocks southbound investors bought were Meituan, CNOOC, and...

Ke Yan, CFA, FRM

Northbound Flows: COSCO Shipping, SF Holding, Yangtze Power, CMB, Wuliangye, Moutai

We highlight northbound Shanghai/Shenzhen Connect flows of COSCO Shipping, SF Holding, Yangtze Power, CMB, Wuliangye, Moutai.

Ke Yan, CFA, FRM

Shanghai/​Shenzhen Northbound Connect: Weekly Moves (27 May 2022)

Overall, net inflow was ~US$0.7bn, split between Shanghai (+US$1bn) and Shenzhen (-US$0.3bn) The largest inflow was into China Yangtze (600900...

David Blennerhassett

Orient Overseas Intl (316 HK): Cursed by Index Inclusion?

While news of HSI inclusion is positive, OOIL is now open to the pattern of post-entry weakness. It is facing more challenges and outperformance...

Osbert Tang, CFA

Rmb Depreciation: An Angle for the Shipping Names?

Shipping companies present an interesting angle to look at under the current trend of Rmb depreciation. USD revenue stream and partial Rmb costs...

Osbert Tang, CFA

Shanghai/Shenzhen Northbound Connect: Weekly Moves (27 May 2022)