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 analyse the changes of A-H premium on 150 stocks over the last week. The average A-H premium was 102.8% as of Dec 6th.</li>
<li>The average A-H premium changed by -0.5ppt week-on-week, led by utilities, consumer discretionary, health care and offset by consumer staples, real estate, materials.</li>
<li>We highlight weekly changes in A-H premium for ZOOMLION, CanSinoBIO, GAC Group, Asymchem.</li>
</ul>


We analyse the changes of A-H premium on 150 stocks over the last week. The average A-H premium was 102.8% as of Dec 6th.
The average A-H premium changed by -0.5ppt week-on-week, led by utilities, consumer discretionary, health care and offset by consumer staples, real estate, materials.
We highlight weekly changes in A-H premium for ZOOMLION, CanSinoBIO, GAC Group, Asymchem.


A-H Premium Weekly (Dec 6th):ZOOMLION, CanSinoBIO, GAC Group, Asymchem

HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

Xinjiang Goldwind Science & Technology / Equity Bottom-Up

<ul>
<li>With a massive 125% rally YTD, <a href="https://www.smartkarma.com/entities/xinjiang-goldwind-science-technology-h" target="_blank" data-smartkarma-citation="entities:10112:1" rel="noopener">Xinjiang Goldwind Science &amp; Technology (2208 HK)</a> is no longer cheap. Its yield of 3.5% for FY25 cannot stand out as attractive.</li>
<li>Good 9M24 earnings growth is partly due to an extremely low base last year. However, the average bidding price of WTG suppliers is still 50% below that in early 2022. </li>
<li>Net operating cash outflow surged 37.8% YoY, adding pressure to its balance sheet. Its gearing has increased by 7pp over the last nine months.</li>
</ul>


With a massive 125% rally YTD, Xinjiang Goldwind Science &amp; Technology (2208 HK) is no longer cheap. Its yield of 3.5% for FY25 cannot stand out as attractive.
Good 9M24 earnings growth is partly due to an extremely low base last year. However, the average bidding price of WTG suppliers is still 50% below that in early 2022. 
Net operating cash outflow surged 37.8% YoY, adding pressure to its balance sheet. Its gearing has increased by 7pp over the last nine months.


Xinjiang Goldwind (2208 HK): We Should Be More Prudent

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

<ul>
<li>Hong Kong Alpha portfolio lost 2.9% in November, but has outperformed its benchmark by 4.9% since inception on October 1st.  It has outperformed HSI, HSCI and HSCEI by 9%.</li>
<li>Hong Kong Alpha has generated idiosyncratic returns during the market correction.  The portfolio has no exposure to energy, healthcare and property sectors. </li>
<li>We exit 4 positions at the end of the month and add positions in software, tech components, travel and restaurant sectors.</li>
</ul>


Hong Kong Alpha portfolio lost 2.9% in November, but has outperformed its benchmark by 4.9% since inception on October 1st.  It has outperformed HSI, HSCI and HSCEI by 9%.
Hong Kong Alpha has generated idiosyncratic returns during the market correction.  The portfolio has no exposure to energy, healthcare and property sectors. 
We exit 4 positions at the end of the month and add positions in software, tech components, travel and restaurant sectors.


HONG KONG ALPHA PORTFOLIO (November 2024)

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

Shandong Hi-Speed New Energy G / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shandong-hi-speed-new-energy-g" target="_blank" data-smartkarma-citation="entities:6927:1" rel="noopener">Shandong Hi-Speed New Energy G (1250 HK)</a> disclosed a possible mandatory unconditional offer from <a href="https://www.smartkarma.com/entities/shandong-hi-speed-holdings-gro" target="_blank" data-smartkarma-citation="entities:10356:1" rel="noopener">Shandong Hi-Speed Holdings Gro (412 HK)</a> at HK$1.78, a 7.2% premium to the undisturbed price.</li>
<li>The offer is conditional on SDHS completing a sale and purchase agreement (SPA) to acquire CITIC Securities' entire 13.52% stake at HK$1.78 per share.</li>
<li>The key precondition of the SPA is SDHS shareholder approval of an ordinary resolution relating to the SPA and the possible offer. The vote is a formality. </li>
</ul>



Shandong Hi-Speed New Energy G (1250 HK) disclosed a possible mandatory unconditional offer from Shandong Hi-Speed Holdings Gro (412 HK) at HK$1.78, a 7.2% premium to the undisturbed price.
The offer is conditional on SDHS completing a sale and purchase agreement (SPA) to acquire CITIC Securities' entire 13.52% stake at HK$1.78 per share.
The key precondition of the SPA is SDHS shareholder approval of an ordinary resolution relating to the SPA and the possible offer. The vote is a formality. 


Shandong Hi-Speed New Energy (1250 HK): Shandong Hi-Speed Holdings (412 HK) Possible MGO

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shandong-hi-speed-new-energy-g" target="_blank" data-smartkarma-citation="entities:6927:1" rel="noopener">Shandong Hi-Speed New Energy G (1250 HK)</a> entered a trading halt based on the Takeovers and Mergers Code. <a href="https://www.smartkarma.com/entities/shandong-hi-speed-holdings-gro" target="_blank" data-smartkarma-citation="entities:10356:1" rel="noopener">Shandong Hi-Speed Holdings Gro (412 HK)</a> also entered a trading halt. </li>
<li>It is likely that SDHS Group, representing 43.45% of outstanding shares, is seeking to privatise SDHS New Energy through a Cayman scheme. </li>
<li>Beijing Enterprises Group and CITIC Securities hold potentially blocking stakes and are likely seeking to exit. Our best guess is an offer with a 20%- 30% takeover premium.  </li>
</ul>



Shandong Hi-Speed New Energy G (1250 HK) entered a trading halt based on the Takeovers and Mergers Code. Shandong Hi-Speed Holdings Gro (412 HK) also entered a trading halt. 
It is likely that SDHS Group, representing 43.45% of outstanding shares, is seeking to privatise SDHS New Energy through a Cayman scheme. 
Beijing Enterprises Group and CITIC Securities hold potentially blocking stakes and are likely seeking to exit. Our best guess is an offer with a 20%- 30% takeover premium.  


Shandong Hi-Speed New Energy (1250 HK): Privatisation by Shandong Hi-Speed Holdings (412 HK)?

China

China Longyuan Power Group Corp Ltd designs, develops, manages, and operates wind farms.  The Company also sells the electricity generated by the wind farms.

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China Longyuan Power (916 HK)

A-H Premium Weekly (Dec 6th):ZOOMLION, CanSinoBIO, GAC Group, Asymchem

We analyzed A-H premium changes in the past week and highlight A-H premium changes for ZOOMLION, CanSinoBIO, GAC Group, Asymchem.

Ke Yan, CFA, FRM

Xinjiang Goldwind (2208 HK): We Should Be More Prudent

Goldwind's impressive YTD rally may not be sustainable as its yield is no longer attractive, with a surge in net operating cash outflow and...

Osbert Tang, CFA

HONG KONG ALPHA PORTFOLIO (November 2024)

Hong Kong Alpha portfolio continues to outperform during the market correction in HK/China stocks. We continue to like the consumer discretionary...

David Mudd

Shandong Hi-Speed New Energy (1250 HK): Shandong Hi-Speed Holdings (412 HK) Possible MGO

The key precondition of the SPA is SDHS shareholder approval of an ordinary resolution relating to the SPA and the possible offer. The vote is a...

Arun George

Shandong Hi-Speed New Energy (1250 HK): Privatisation by Shandong Hi-Speed Holdings (412 HK)?

It is likely that SDHS Group, representing 43.45% of outstanding shares, is seeking to privatise SDHS New Energy through a Cayman scheme.

Arun George

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)