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 157 stocks over the last week. The average A-H premium was 58.9% as of Aug 8th.</li>
<li>The average A-H premium changed by -2.3ppt week-on-week, led by materials, health care, utilities.</li>
<li>We highlight weekly changes in A-H premium for Metallurgical Corporation Of China, Shandong Gold Mining, China Shenhua Energy, Tianqi Lithium.</li>
</ul>


We analyse the changes of A-H premium on 157 stocks over the last week. The average A-H premium was 58.9% as of Aug 8th.
The average A-H premium changed by -2.3ppt week-on-week, led by materials, health care, utilities.
We highlight weekly changes in A-H premium for Metallurgical Corporation Of China, Shandong Gold Mining, China Shenhua Energy, Tianqi Lithium.


A-H Premium Weekly (Aug 8th): Metallurgical Corporation Of China, Shandong Gold Mining

<ul>
<li>We analyse the changes of A-H premium on 156 stocks over the last week. The average A-H premium was 69.4% as of Jul 4th.</li>
<li>The average A-H premium changed by -0.5ppt week-on-week, led by consumer staples, real estate, consumer discretionary and offset by utilities, financials.</li>
<li>We highlight weekly changes in A-H premium for ICBC, Angang Steel, Datang Intl Power Gen, CMB, China Zheshang Bank, China Everbright Bank.</li>
</ul>


We analyse the changes of A-H premium on 156 stocks over the last week. The average A-H premium was 69.4% as of Jul 4th.
The average A-H premium changed by -0.5ppt week-on-week, led by consumer staples, real estate, consumer discretionary and offset by utilities, financials.
We highlight weekly changes in A-H premium for ICBC, Angang Steel, Datang Intl Power Gen, CMB, China Zheshang Bank, China Everbright Bank.


A-H Premium Weekly (Jul 4th): ICBC, Angang Steel, Datang Intl Power Gen, CMB, China Zheshang Bank

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Equity Capital Markets

Hainan Drinda Automotive Trim / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hainan-drinda-automotive-trim" target="_blank" data-smartkarma-citation="entities:29412:1" rel="noopener">Hainan Drinda Automotive Trim (002865 CH)</a> (HDNET) raised around US$180m via its A/H listing.</li>
<li>HDNET is a specialized manufacturer of PV cells which are used in making PV modules.</li>
<li>We have looked at the company’s past performance and other deal dynamics, in our earlier notes. In this note, we talk about the trading dynamics.</li>
</ul>



Hainan Drinda Automotive Trim (002865 CH) (HDNET) raised around US$180m via its A/H listing.
HDNET is a specialized manufacturer of PV cells which are used in making PV modules.
We have looked at the company’s past performance and other deal dynamics, in our earlier notes. In this note, we talk about the trading dynamics.


Hainan Drinda New Energy (A/H IPO) Trading - Tepid Demand, No Over-Allotment

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hainan-drinda-automotive-trim" target="_blank" data-smartkarma-citation="entities:29412:1" rel="noopener">Hainan Drinda Automotive Trim (002865 CH)</a> plans to raise up to US$234m via its A/H listing.</li>
<li>HDNET is a specialized manufacturer of PV cells which are used in making PV modules.</li>
<li>In this note, we look at the company’s recent performance and other deal dynamics, as well as valuations.</li>
</ul>



Hainan Drinda Automotive Trim (002865 CH) plans to raise up to US$234m via its A/H listing.
HDNET is a specialized manufacturer of PV cells which are used in making PV modules.
In this note, we look at the company’s recent performance and other deal dynamics, as well as valuations.


Hainan Drinda New Energy (A/H IPO) - Business Was Acquired for 1/3rd the Price, Three Years Ago

HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>Our list of HK-listed industrial companies indicated that the US generated an average of 22.9% of sales. With diversified production bases, higher tariffs may only affect ~10% of revenue.</li>
<li>
<a href="https://www.smartkarma.com/entities/vesync" target="_blank" data-smartkarma-citation="entities:31067:1" rel="noopener">Vesync (2148 HK)</a>, <a href="https://www.smartkarma.com/entities/chervon-holdings-limited" target="_blank" data-smartkarma-citation="entities:35309:1" rel="noopener">Chervon Holdings (2285 HK)</a>, and <a href="https://www.smartkarma.com/entities/aac-technologies-holdings-inc" target="_blank" data-smartkarma-citation="entities:6544:1" rel="noopener">AAC Technologies Holdings (2018 HK)</a> are more exposed given their significant US sales yet most production is still in China. </li>
<li>While the US generated over 50% of the revenue of <a href="https://www.smartkarma.com/entities/techtronic-industries-co-ltd" target="_blank" data-smartkarma-citation="entities:4561:1" rel="noopener">Techtronic Industries (669 HK)</a> and <a href="https://www.smartkarma.com/entities/nexteer-automotive-group-ltd" target="_blank" data-smartkarma-citation="entities:15483:1" rel="noopener">Nexteer Automotive (1316 HK)</a>, they are less exposed given their worldwide manufacturing presence. </li>
</ul>


Our list of HK-listed industrial companies indicated that the US generated an average of 22.9% of sales. With diversified production bases, higher tariffs may only affect ~10% of revenue.

Vesync (2148 HK), Chervon Holdings (2285 HK), and AAC Technologies Holdings (2018 HK) are more exposed given their significant US sales yet most production is still in China. 
While the US generated over 50% of the revenue of Techtronic Industries (669 HK) and Nexteer Automotive (1316 HK), they are less exposed given their worldwide manufacturing presence. 


China & HK Strategy: Stocks Exposed to the US and Higher Tariffs

China

Flat Glass Group Co., Ltd is a PV glass manufacturer. The Company also markets float glass, household glass and architectural glass.

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Flat Glass (6865 HK)

A-H Premium Weekly (Aug 8th): Metallurgical Corporation Of China, Shandong Gold Mining

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Metallurgical Corporation Of China, Shandong Gold Mining,...

Ke Yan, CFA, FRM

A-H Premium Weekly (Jul 4th): ICBC, Angang Steel, Datang Intl Power Gen, CMB, China Zheshang Bank

We analyzed A-H premium changes in the past week and highlight A-H premium changes for ICBC, Angang Steel, Datang Intl Power Gen, CMB, China...

Ke Yan, CFA, FRM

Hainan Drinda New Energy (A/H IPO) Trading - Tepid Demand, No Over-Allotment

Hainan Drinda Automotive Trim (002865 CH) (HDNET) raised around US$180m via its A/H listing. In this note, we talk about the trading dynamics.

Sumeet Singh

Hainan Drinda New Energy (A/H IPO) - Business Was Acquired for 1/3rd the Price, Three Years Ago

Hainan Drinda Automotive Trim (002865 CH) plans to raise up to US$234m via its A/H listing. In this note, we look at the past performance and talk...

Sumeet Singh

China & HK Strategy: Stocks Exposed to the US and Higher Tariffs

With the Trump administration announcing global reciprocal tariffs, even companies with manufacturing presence in other countries will suffer...

Osbert Tang, CFA

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