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

Global markets are holding at support levels and we reiterate, our neutral but constructive outlook . In today’s report we highlight actionable stocks within countries that are displaying bullish price and relative strength trends, including Japan, Hong Kong, Italy and Norway.

Global markets are holding at support levels and we reiterate, our neutral but constructive outlook . In today’s report we highlight actionable stocks within countries that are displaying bullish price and relative strength trends, including Japan, Hong Kong, Italy and Norway.

Global Equity Strategy: Overweight TOPIX, Hang Seng

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

Thematic (Sector/Industry)

<ul><li>Most private school operators are also property developers.</li><li>Schools provide stable cash inflows, so that some developers stopped property investment to focus on schools.</li><li>The 1st risk: Property developers may borrow money from schools. They did that before.</li><li>The 2nd risk: Property developers are schools’ landlords and the lease contracts will be based on re-negotiations between relatives.  This raises corporate governance issues.</li><li>In general, we are still optimistic about private schools.</li></ul>

Most private school operators are also property developers.Schools provide stable cash inflows, so that some developers stopped property investment to focus on schools.The 1st risk: Property developers may borrow money from schools. They did that before.The 2nd risk: Property developers are schools’ landlords and the lease contracts will be based on re-negotiations between relatives.  This raises corporate governance issues.In general, we are still optimistic about private schools.

Key Risk to Private Schools: Property Developers Standing Behind

<ul><li>Shanghai Bureau of Education (SBE) distributes selective high schools’ enrolments to non-selective middle school students.</li><li>We believe the new policy provide opportunities for after-school tutoring and private schools, due to the mismatch between students and schools.</li><li>Listed schools, impacted by cancellation of Mathematical Olympiad tests (See <a href="https://www.smartkarma.com/insights/tal-education-tal-us-chaos-in-junior-high-school-application-in-shanghai" target="_blank" data-smartkarma-citation="insights:17836">TAL Education (TAL US) - Chaos in Junior High School Application in Shanghai</a>), should shift classrooms from elementary school pupils to high school students.</li></ul>

Shanghai Bureau of Education (SBE) distributes selective high schools’ enrolments to non-selective middle school students.We believe the new policy provide opportunities for after-school tutoring and private schools, due to the mismatch between students and schools.Listed schools, impacted by cancellation of Mathematical Olympiad tests (See TAL Education (TAL US) - Chaos in Junior High School Application in Shanghai), should shift classrooms from elementary school pupils to high school students.

High School Enrolment Reform at Shanghai Pushing Students to Tutoring and Private Schools

Asia Ex-J Consumer/ Transport analyst

Valerie Law, CFA

2017 was a fantastic year for many China-based companies who listed in Hong Kong and/or US. Most of the IPOs I covered were In-The-Money on a 1-month or 3-month basis. Calls had lower accuracy on a one-week basis, probably due to the huge volatility during the first week of trading. The best performer I covered had to be <a href="https://www.smartkarma.com/entities/24388" target="_blank" data-smartkarma-citation="entities:24388:1">China Literature Ltd (772 HK)</a>, up &gt;80% within the first week of listing. Out of the ten IPO Deals I covered and successfully listed last year, seven were in the education sector. In this article, I provide a summary table of my calls on IPOs and listed companies for 2017, and actions to take for 2018.

2017 was a fantastic year for many China-based companies who listed in Hong Kong and/or US. Most of the IPOs I covered were In-The-Money on a 1-month or 3-month basis. Calls had lower accuracy on a one-week basis, probably due to the huge volatility during the first week of trading. The best performer I covered had to be China Literature Ltd (772 HK), up &gt;80% within the first week of listing. Out of the ten IPO Deals I covered and successfully listed last year, seven were in the education sector. In this article, I provide a summary table of my calls on IPOs and listed companies for 2017, and actions to take for 2018.

A Summary of 2017 IPOs, Stock Calls, and Actions for 2018

Four education companies that were listed between January to April this year announced that they have been included in several Hang Seng family of indices (see table below). These stocks rose between 2.5% to 6.2% intraday.<ul>
<li>The significance is not so much their inclusion within Hang Seng indices, but the fact that these stocks are selected means that they are HK-connect eligible (ie. becoming eligible for south-bound monies). </li>
<li>For example, <a href="https://www.smartkarma.com/entities/23624" target="_blank" data-smartkarma-citation="entities:23624:1">Minsheng Education Group (1569 HK)</a> (MSE) is mainly owned by…</li>
</ul>

Four education companies that were listed between January to April this year announced that they have been included in several Hang Seng family of indices (see table below). These stocks rose between 2.5% to 6.2% intraday.
The significance is not so much their inclusion within Hang Seng indices, but the fact that these stocks are selected means that they are HK-connect eligible (ie. becoming eligible for south-bound monies). 
For example, Minsheng Education Group (1569 HK) (MSE) is mainly owned by…


Inclusion in Hang Seng Family of Indexes Boosts Newly-Listed Education Stocks – Top Pick 2001 HK

China

China Maple Leaf Educational Systems operates bilingual private and preschools, offering K-12 education with A-level, International Baccalaureate, and Maple Leaf World School curriculums. The company also provides educational consultancy, school uniforms, educational books, and catering services. It was founded in 1995 and is headquartered in Shenzhen, China.

China Maple Leaf Educational Systems (1317 HK)

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China Maple Leaf Educational Systems (1317 HK)

Global Equity Strategy: Overweight TOPIX, Hang Seng

Global markets are holding at support levels and we reiterate, our neutral but constructive outlook . In today’s report we highlight actionable...

Vermilion Research

Key Risk to Private Schools: Property Developers Standing Behind

Most private school operators are also property developers. Schools provide stable cash inflows, so that some developers stopped property...

Ming Lu

High School Enrolment Reform at Shanghai Pushing Students to Tutoring and Private Schools

Shanghai Bureau of Education (SBE) distributes selective high schools’ enrolments to non-selective middle school students. We believe the new...

Ming Lu

A Summary of 2017 IPOs, Stock Calls, and Actions for 2018

2017 was a fantastic year for many China-based companies who listed in Hong Kong and/or US. Most of the IPOs I covered were In-The-Money on a...

Valerie Law, CFA

Inclusion in Hang Seng Family of Indexes Boosts Newly-Listed Education Stocks – Top Pick 2001 HK

Four education companies that were listed between January to April this year announced that they have been included in several Hang Seng family of...

Valerie Law, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)