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

In our Discover HK Connect series, we aim to help our investors understand the flow of southbound trades via the Hong Kong Connect, as analyzed by our proprietary data engine. We will discuss the stocks that experienced the most inflow and outflow by mainlanders in the past seven days.
We split the stocks eligible for the Hong Kong Connect trade into three groups: those with a market capitalization of above USD 5 billion, those with a market capitalization between USD 1 billion and USD 5 billion, and those with a market capitalization between USD 500 million and USD 1 billion.

In our Discover HK Connect series, we aim to help our investors understand the flow of southbound trades via the Hong Kong Connect, as analyzed by our proprietary data engine. We will discuss the stocks that experienced the most inflow and outflow by mainlanders in the past seven days.
We split the stocks eligible for the Hong Kong Connect trade into three groups: those with a market capitalization of above USD 5 billion, those with a market capitalization between USD 1 billion and USD 5 billion, and those with a market capitalization between USD 500 million and USD 1 billion.

Discover HK Connect: Mainlanders Were Buying Pharma and Property Managers in December

Founder and Strategist, Entext Economics & Strategy

Sean Maher

Founder and Strategist

Entext Economics & Strategy

Entext provides institutional investors with distinctive, actionable asset allocation and thematic research, which typically challenges the market consensus. Our clients range from credit, equity and multi-asset hedge and pension funds to family offices and sovereign funds. 
 
We focus on identifying key inflection points in macro data and relative asset performance amid the 'groupthink'  and confirmation bias that characterizes most investment bank analysis.

Macro Driven Investment Insight

Thematic (Sector/Industry)

I began my recent Asia trip speaking at an investor conference in Vietnam, where I focused on the shift in the EM development model toward value added services as ubiquitous smartphones and broadband created a ‘leapfrog’ effect plugging infrastructure deficits (not just physical, but also including weak institutions). Services only came to dominate growth in developed economies from the 1970s as manufacturing share declined at a relatively high level of per capita income, but for today’s EMs it is happening at a much lower threshold and that trend has been very apparent at the granular level on my week-long China visit and should be borne in mind when parsing the macro data. As covered previously, it seems very likely that services activity is being systematically underestimated in the China GDP data given its ‘kick the tyres’ statistical bias.

I began my recent Asia trip speaking at an investor conference in Vietnam, where I focused on the shift in the EM development model toward value added services as ubiquitous smartphones and broadband created a ‘leapfrog’ effect plugging infrastructure deficits (not just physical, but also including weak institutions). Services only came to dominate growth in developed economies from the 1970s as manufacturing share declined at a relatively high level of per capita income, but for today’s EMs it is happening at a much lower threshold and that trend has been very apparent at the granular level on my week-long China visit and should be borne in mind when parsing the macro data. As covered previously, it seems very likely that services activity is being systematically underestimated in the China GDP data given its ‘kick the tyres’ statistical bias.

China Trip Notes - Education Spend On Korean Path…

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

Equity Bottom-Up

China Maple Leaf Educational Systems / Equity Bottom-Up

Shares of all Hong Kong listed Chinese private schools plunged on Monday, August 13, with some of them plummeted more than 30% in a day. 
What had happened? The draft for comment of “the Implementation Rules on the Promotion of Private School (Draft for Amendment) (Draft for Approval)” was posted on the website of the Ministry of Justice of China (MOJ) <a href="http://www.moj.gov.cn/government_public/content/2018-08/10/tzwj_38279.html" target="_blank">http://www.moj.gov.cn/government_public/content/2018-08/10/tzwj_38279.html</a> on August 10, last Friday.
Abnormal Re-comment
The legal jargon in the…

Shares of all Hong Kong listed Chinese private schools plunged on Monday, August 13, with some of them plummeted more than 30% in a day. 
What had happened? The draft for comment of “the Implementation Rules on the Promotion of Private School (Draft for Amendment) (Draft for Approval)” was posted on the website of the Ministry of Justice of China (MOJ) http://www.moj.gov.cn/government_public/content/2018-08/10/tzwj_38279.html on August 10, last Friday.
Abnormal Re-comment
The legal jargon in the…

Maple Leaf (1317) – Private Schools Plunged Due to Proposed Law

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

YTD sideways congestion for the MSCI ACWI ex-US and an intact downtrend for the MSCI EM index continue to point to a risk-off environment for international equity markets, and supports our neutral outlook. We continue to recommend avoiding broad indexed exposure in favor of selectivity. In today’s report we highlight actionable country- and Sector-specific themes within Norway, India, Japan and Australia.

YTD sideways congestion for the MSCI ACWI ex-US and an intact downtrend for the MSCI EM index continue to point to a risk-off environment for international equity markets, and supports our neutral outlook. We continue to recommend avoiding broad indexed exposure in favor of selectivity. In today’s report we highlight actionable country- and Sector-specific themes within Norway, India, Japan and Australia.

Global Ex-U.S. & EM Continue to Point to Risk-Off Environment

APAC IPOs & Placements

Zhen Zhou, Toh

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Capital Markets

<a href="https://www.smartkarma.com/entities/27137" target="_blank" data-smartkarma-citation="entities:27137:1">Puxin Ltd (NEW US)</a> is looking to raise up to US$144m in its upcoming IPO. Proceeds will be mostly used for strategic acquisitions with any remaining cash used for general corporate purposes.Adding up all the acquisitions that the company has made since 2015 implies that the company is asking for an IPO valuation that is 4.9x of its total acquisition costs. Even if we assume that the acquisitions from 2015 and 2016 have grown by 5x, investors are essentially paying for a valuation that implies that Puxin can grow its FY2017 acquisitions by 4.8x which seems to be a stretch given the limited track record of the company.In this insight, we will be looking at the company's overall financial performance, examine its acquisitions, compare the company against listed education peers. As usual, we will also run the deal through our ECM framework.

Puxin Ltd (NEW US) is looking to raise up to US$144m in its upcoming IPO. Proceeds will be mostly used for strategic acquisitions with any remaining cash used for general corporate purposes.Adding up all the acquisitions that the company has made since 2015 implies that the company is asking for an IPO valuation that is 4.9x of its total acquisition costs. Even if we assume that the acquisitions from 2015 and 2016 have grown by 5x, investors are essentially paying for a valuation that implies that Puxin can grow its FY2017 acquisitions by 4.8x which seems to be a stretch given the limited track record of the company.In this insight, we will be looking at the company's overall financial performance, examine its acquisitions, compare the company against listed education peers. As usual, we will also run the deal through our ECM framework.

Puxin Education IPO Review - Asking for 4.9x of Company's Total Acquisition Cost Since 2015

China

China Maple Leaf Educational Systems Limited is a Chinese international school operator. The Company operates high schools, middle schools and elementary schools across various Chinese cities.

China Maple Leaf Educational Systems (1317 HK)

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China Maple Leaf Educational Systems (1317 HK)

Discover HK Connect: Mainlanders Were Buying Pharma and Property Managers in December

In our Discover HK Connect series, we aim to help our investors understand the flow of southbound trades via the Hong Kong Connect, as analyzed by...

Ke Yan, CFA, FRM

China Trip Notes - Education Spend On Korean Path…

I began my recent Asia trip speaking at an investor conference in Vietnam, where I focused on the shift in the EM development model toward value...

Sean Maher

Maple Leaf (1317) – Private Schools Plunged Due to Proposed Law

Shares of all Hong Kong listed Chinese private schools plunged on Monday, August 13, with some of them plummeted more than 30% in a day. What had...

Ming Lu

Global Ex-U.S. & EM Continue to Point to Risk-Off Environment

YTD sideways congestion for the MSCI ACWI ex-US and an intact downtrend for the MSCI EM index continue to point to a risk-off environment for...

Vermilion Research

Puxin Education IPO Review - Asking for 4.9x of Company's Total Acquisition Cost Since 2015

Puxin Ltd (NEW US) is looking to raise up to US$144m in its upcoming IPO. Proceeds will be mostly used for strategic acquisitions with any...

Zhen Zhou, Toh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)