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 weekly Hong Kong Connect flows with our data engine for holding position as of January 13th.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight flows for China Mobile, Simcere Pharmaceutical, Tencent, Geely Automobile.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of January 13th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for China Mobile, Simcere Pharmaceutical, Tencent, Geely Automobile.


Hong Kong Connect Flows (Jan 13th): Tencent Profit Taking

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of November 18th.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight inflows into Tencent, HKEx, Country Garden and outflows from Meituan.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of November 18th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight inflows into Tencent, HKEx, Country Garden and outflows from Meituan.


Hong Kong Connect Flows (Nov 18th): Tencent, HKEx, Country Garden, Meituan

HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

<ul>
<li>China's ambition to build into a strong manufacturing country as revealed in 20th Party Congress should place <a href="https://www.smartkarma.com/entities/dongfang-electric-corporation-limited" target="_blank" data-smartkarma-citation="entities:1251:1" rel="noopener">Dongfang Electric (1072 HK)</a> and <a href="https://www.smartkarma.com/entities/cimc-enric-holdings-ltd" target="_blank" data-smartkarma-citation="entities:47:1" rel="noopener">CIMC Enric Holdings (3899 HK)</a> in excellent positions.</li>
<li>The leadership in power and new energy equipment industry, improving gross margin outlook, well-covered order book and undemanding multiples are the key merits of <a href="https://www.smartkarma.com/entities/dongfang-electric-corporation-limited" target="_blank" data-smartkarma-citation="entities:1251:1" rel="noopener">Dongfang Electric (1072 HK)</a>. </li>
<li>
<a href="https://www.smartkarma.com/entities/cimc-enric-holdings-ltd" target="_blank" data-smartkarma-citation="entities:47:1" rel="noopener">CIMC Enric Holdings (3899 HK)</a>'s good presence in clean energy, chemical/environmental and liquid food segments, global product competitiveness, secured order backlog and net cash position are its major edges. </li>
</ul>


China's ambition to build into a strong manufacturing country as revealed in 20th Party Congress should place Dongfang Electric (1072 HK) and CIMC Enric Holdings (3899 HK) in excellent positions.
The leadership in power and new energy equipment industry, improving gross margin outlook, well-covered order book and undemanding multiples are the key merits of Dongfang Electric (1072 HK). 

CIMC Enric Holdings (3899 HK)'s good presence in clean energy, chemical/environmental and liquid food segments, global product competitiveness, secured order backlog and net cash position are its major edges. 


Dongfang Electric (1072 HK) And CIMC Enric (3899 HK): Two Stocks for the Next Five Years

<ul>
<li>
<a href="https://www.smartkarma.com/entities/cimc-enric-holdings-ltd" target="_blank" data-smartkarma-citation="entities:47:1" rel="noopener">CIMC Enric Holdings (3899 HK)</a> has a steady 3Q22 with good revenue growth for the chemical &amp; environmental and liquid food segments. Management also said margin has expanded YoY.</li>
<li>Overall order backlog of Rmb13.7bn is generally sufficient to cover individual segment's revenue over the next 6-15 months, comfortably securing the growth prospects. </li>
<li>With significant overseas revenue, it is benefiting from depreciation of Rmb against the USD. It also anticipates a pick-up in domestic clean energy segment growth in FY23.</li>
</ul>



CIMC Enric Holdings (3899 HK) has a steady 3Q22 with good revenue growth for the chemical &amp; environmental and liquid food segments. Management also said margin has expanded YoY.
Overall order backlog of Rmb13.7bn is generally sufficient to cover individual segment's revenue over the next 6-15 months, comfortably securing the growth prospects. 
With significant overseas revenue, it is benefiting from depreciation of Rmb against the USD. It also anticipates a pick-up in domestic clean energy segment growth in FY23.


CIMC Enric (3899 HK): Maintaining a Solid Trend

<ul>
<li>We see the positive share price reaction of <a href="https://www.smartkarma.com/entities/cimc-enric-holdings-ltd" target="_blank" data-smartkarma-citation="entities:47:1" rel="noopener">CIMC Enric Holdings (3899 HK)</a> after posting a 34.5% 1H22 core profit growth not yet enough to reflect its encouraging earnings outlook.</li>
<li>Good order backlog, recovery at clean energy and increase in liquid food demand will add to the strength at chemical and environment segment as CIMC Enric's drivers.</li>
<li>Hydrogen energy business made impressive contribution growth and it should benefit from local governments' hydrogen initiatives. The stock's high PERs are just reflection of huge long-term potential. </li>
</ul>


We see the positive share price reaction of CIMC Enric Holdings (3899 HK) after posting a 34.5% 1H22 core profit growth not yet enough to reflect its encouraging earnings outlook.
Good order backlog, recovery at clean energy and increase in liquid food demand will add to the strength at chemical and environment segment as CIMC Enric's drivers.
Hydrogen energy business made impressive contribution growth and it should benefit from local governments' hydrogen initiatives. The stock's high PERs are just reflection of huge long-term potential. 


CIMC Enric (3899 HK): Growth Outlook Supported by Multiple Engines

Hong Kong

CIMC Enric Holdings Ltd. designs, manufactures, and markets gas equipment.  The Company produces compressors, pressure vessels, gas refueling station trailers, and other gas equipment, as well as transportation equipment such as containers, trailers, tank equipments and airport equipments.

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CIMC Enric Holdings (3899 HK)

Hong Kong Connect Flows (Jan 13th): Tencent Profit Taking

We analyzed southbound Hong Kong connect flows in the past week and highlight flows for China Mobile, Simcere Pharmaceutical, Tencent, Geely...

Ke Yan, CFA, FRM

Hong Kong Connect Flows (Nov 18th): Tencent, HKEx, Country Garden, Meituan

We analyzed the Hong Kong Connect Scheme for last week and highlight flows for Tencent, Hong Kong Exchange and Clearing, Country Garden, Meituan.

Ke Yan, CFA, FRM

Dongfang Electric (1072 HK) And CIMC Enric (3899 HK): Two Stocks for the Next Five Years

Dongfang Electric and CIMC Enric are well-placed to benefit from China's plan to build into a strong manufacturing country. Their leadership...

Osbert Tang, CFA

CIMC Enric (3899 HK): Maintaining a Solid Trend

CIMC Enric has stable revenue growth in 3Q22 while there is YoY gross margin expansion. Outstanding backlog is good enough to cover 6-15 months'...

Osbert Tang, CFA

CIMC Enric (3899 HK): Growth Outlook Supported by Multiple Engines

Recovery in clean energy and liquid food segments in 2H22 will bring encouraging earnings outlook. Its 41.7% increase in order backlog showed...

Osbert Tang, CFA

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