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 October 14th.</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 (700 HK), and Li Auto (2015 HK). </li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of October 14th.
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 (700 HK), and Li Auto (2015 HK). 


Hong Kong Connect Flows (Oct 14th): Tencent, Li Auto

HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/tao-heung" target="_blank" data-smartkarma-citation="entities:2668:1" rel="noopener">Tao Heung (573 HK)</a>, a Chinese cuisine restaurant operator, has lost significant shop-days in 1H22 due to the pandemic. However, this is behind us and 2H22 outlook is better.</li>
<li>The recovery of Hong Kong operations will be supported by further relaxation of social distancing measures while, for mainland China, business has rebounded following removal of lockdowns.   </li>
<li>Its Chairman has upped his stake, signaling a vote of confidence. The stock's valuations are not expensive, but given low turnover, there will be potential share price volatility.</li>
</ul>



Tao Heung (573 HK), a Chinese cuisine restaurant operator, has lost significant shop-days in 1H22 due to the pandemic. However, this is behind us and 2H22 outlook is better.
The recovery of Hong Kong operations will be supported by further relaxation of social distancing measures while, for mainland China, business has rebounded following removal of lockdowns.   
Its Chairman has upped his stake, signaling a vote of confidence. The stock's valuations are not expensive, but given low turnover, there will be potential share price volatility.


APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC IPOs & Placements

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/gushengtang-cayman-ltd" target="_blank" data-smartkarma-citation="entities:33503:1" rel="noopener">Gushengtang (GUS HK)</a> is looking to raise US$150m in its Hong Kong IPO.</li>
<li>Gushengtang is a traditional chinese medicine (TCM) healthcare service provider in China. It provides TCM healthcare services and products via its offline medical institutions and online healthcare platforms.</li>
<li>As of the LPD, the firm provided services to customers across 31 provinces via its medical service network, and had 19,203 physicians practicing as of Jun 2021.</li>
</ul>



Gushengtang (GUS HK) is looking to raise US$150m in its Hong Kong IPO.
Gushengtang is a traditional chinese medicine (TCM) healthcare service provider in China. It provides TCM healthcare services and products via its offline medical institutions and online healthcare platforms.
As of the LPD, the firm provided services to customers across 31 provinces via its medical service network, and had 19,203 physicians practicing as of Jun 2021.


Gushengtang Pre-IPO - The Positives - Resilient Financials and Could Ride on Industry Tailwind

<a href="https://www.smartkarma.com/entities/kk-technology" target="_blank" data-smartkarma-citation="entities:34979:1" rel="noopener">KK Technology (KK HK)</a> is looking to raise around US$500m in its upcoming Hong Kong IPO. The deal will be run by Morgan Stanley and Credit Suisse. KK Technology is a specialty retailer operating under its core brands KKV, The COLORIST, X11 and KK Guan. As per Frost &amp; Sullivan, the firm is one of the top three specialty retailers by GMV in 2020 and the fastest-growing specialty retailer among the top 10 players in China. As of the Latest Practicable Date (LPD, 31 Oct 2021), the firm has 680 stores under its network, covering 169 cities in 31 provinces in China, and one city in Indonesia.

KK Technology (KK HK) is looking to raise around US$500m in its upcoming Hong Kong IPO. The deal will be run by Morgan Stanley and Credit Suisse. KK Technology is a specialty retailer operating under its core brands KKV, The COLORIST, X11 and KK Guan. As per Frost &amp; Sullivan, the firm is one of the top three specialty retailers by GMV in 2020 and the fastest-growing specialty retailer among the top 10 players in China. As of the Latest Practicable Date (LPD, 31 Oct 2021), the firm has 680 stores under its network, covering 169 cities in 31 provinces in China, and one city in Indonesia.

<a href="https://www.smartkarma.com/entities/uju-holding" target="_blank" data-smartkarma-citation="entities:34824:1" rel="noopener">Uju Holding (1948 HK)</a> raised around US$103m after pricing its IPO at HKD6.70/share, at the bottom end of the IPO price range.Uju Holding is a one-stop cross media online marketing solutions provider that works with media partners to market its advertiser customer’s products and/or services. In this note, we will look at deal dynamics, and discuss its current valuation against peers. Our previous coverage on the IPO:<ul>
<li><a href="https://www.smartkarma.com/insights/uju-holding-ipo-margin-compression-looks-to-persist" target="_blank" data-smartkarma-citation="insights:59644" rel="noopener">Uju Holding IPO - Margin Compression Looks to Persist</a></li>
<li><a href="https://www.smartkarma.com/insights/uju-holding-ipo-asking-valuation-is-a-stretch" target="_blank" data-smartkarma-citation="insights:59668" rel="noopener">Uju Holding IPO - Asking Valuation Is a Stretch</a></li>
</ul>

Uju Holding (1948 HK) raised around US$103m after pricing its IPO at HKD6.70/share, at the bottom end of the IPO price range.Uju Holding is a one-stop cross media online marketing solutions provider that works with media partners to market its advertiser customer’s products and/or services. In this note, we will look at deal dynamics, and discuss its current valuation against peers. Our previous coverage on the IPO:
Uju Holding IPO - Margin Compression Looks to Persist
Uju Holding IPO - Asking Valuation Is a Stretch


Uju Holding IPO Trading - Downside Seems Imminent

China

Helens International Holdings Company Limited operates bar chain networks. The Company provides craft beer, fruit beer, milk beer, and others. Helens International Holdings provides its services throughout China.

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Helens International Holdings (9869 HK)

Hong Kong Connect Flows (Oct 14th): Tencent, Li Auto

We analyzed the Hong Kong Connect Scheme for last week and highlight flows for Tencent Holding (700 HK), and Li Auto (2015 HK).

Ke Yan, CFA, FRM

Tao Heung (573 HK): Bon Appetit

Tao Heung should have a better 2H22 given recovery of Hong Kong operations as consumer spending improves. Also, mainland China market is not...

Osbert Tang, CFA

Gushengtang Pre-IPO - The Positives - Resilient Financials and Could Ride on Industry Tailwind

Gushengtang (GUS HK) is looking to raise US$150m in its Hong Kong IPO. The firm is a traditional chinese medicine (TCM) healthcare service provider...

Clarence Chu

KK Technology Pre-IPO Tearsheet

KK Technology (KK HK) is looking to raise around US$500m in its upcoming Hong Kong IPO. The deal will be run by Morgan Stanley and Credit Suisse.

Clarence Chu

Uju Holding IPO Trading - Downside Seems Imminent

Uju Holding (1948 HK) raised around US$106m after pricing its IPO at HKD6.90/share, at the bottom end of the IPO price range.

Clarence Chu

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