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 142 stocks over the last week. The average A-H premium was 127.4% as of Oct 21st.</li>
<li>The average A-H premium changed by -2.8ppt weeok on week, led by consumer staples, consumer discretionary, energy and offset by financials.</li>
<li>We highlight weekly changes in A-H premium for Remegen, Pharmaron, Flat Glass, Shanghai Fudan, GWM, China Life.</li>
</ul>


We analyse the changes of A-H premium on 142 stocks over the last week. The average A-H premium was 127.4% as of Oct 21st.
The average A-H premium changed by -2.8ppt weeok on week, led by consumer staples, consumer discretionary, energy and offset by financials.
We highlight weekly changes in A-H premium for Remegen, Pharmaron, Flat Glass, Shanghai Fudan, GWM, China Life.


A-H Premium Weekly (Oct 21st): Remegen, Pharmaron, Flat Glass, Shanghai Fudan, GWM, China Life

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Bottom-Up

Hisense Home Appliances Group Co., Ltd. H / Equity Bottom-Up

Hisense Home Appliances Group Co., Ltd. H

<ul>
<li>Back on the 21 October 2016, <strong><a href="https://www.smartkarma.com/entities/hisense-home-appliances-group-co-ltd-h" target="_blank" data-smartkarma-citation="entities:20107:1" rel="noopener">Hisense Home Appliances Group Co., Ltd. H (921 HK)</a></strong> <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2016/1021/ltn20161021068.pdf" target="_blank" rel="noopener">announced</a> it would invest  RMB1.7bn of "idle" funds into wealth management products, or ~HK$1.43/share.</li>
<li>Between 16 September 2022 and 8 October, Hisense <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2022/1009/2022100900031.pdf" target="_blank" rel="noopener">announced</a> it has invested HK$1.13bn of idle funds in wealth management products.</li>
<li>Hisense reckons the investment is <em>"beneficial for enhancing efficiency of use of idle self-owned funds</em>". But if truly idle, they should be returned to shareholders.</li>
</ul>


Back on the 21 October 2016, Hisense Home Appliances Group Co., Ltd. H (921 HK) announced it would invest  RMB1.7bn of "idle" funds into wealth management products, or ~HK$1.43/share.
Between 16 September 2022 and 8 October, Hisense announced it has invested HK$1.13bn of idle funds in wealth management products.
Hisense reckons the investment is "beneficial for enhancing efficiency of use of idle self-owned funds". But if truly idle, they should be returned to shareholders.


HK/China Equity Long-Short

Osbert Tang, CFA

<ul>
<li>Driven by recovery of Casarte after lockdown removed and premiumisation of product and pricing, <a href="https://www.smartkarma.com/entities/haier-smart-home-co-ltd-b3ef445f-0f54-4586-8c58-9073de98d60e" target="_blank" data-smartkarma-citation="entities:31105:1" rel="noopener">Haier Smart Home (6690 HK)</a> should see sustained healthy earnings growth in 2H22.</li>
<li>We expect room to improve gross margin sequentially as cost pressure subsides in 2H22. Meanwhile, overseas markets still present good expansion opportunities. </li>
<li>Premium valuations are justified by its brand strength, global presence and strong execution capability. Healthy 1H22 should clear market's concerns on impact of weak property market. </li>
</ul>


Driven by recovery of Casarte after lockdown removed and premiumisation of product and pricing, Haier Smart Home (6690 HK) should see sustained healthy earnings growth in 2H22.
We expect room to improve gross margin sequentially as cost pressure subsides in 2H22. Meanwhile, overseas markets still present good expansion opportunities. 
Premium valuations are justified by its brand strength, global presence and strong execution capability. Healthy 1H22 should clear market's concerns on impact of weak property market. 


Haier Smart Home (6690 HK): A Trusted Name that Delivers

<ul>
<li>We analyse the changes of A/H premium on 142 stocks over the last week. The average A/H premium of 142 A/H stocks are 116.5%, increased by 3.0ppt over last week.</li>
<li>The average A/H premium changed by 3.0ppt week on week, led by Real Estate, financials, and consumer discretionary sectors.</li>
<li>We highlight A/H premium changes of Great Wall Motor, Guangzhou Auto, Hisense Home, Tianqi Lithium, Jiangxi Copper, Angang Steel, Maanshan Iron, BBMG, Alcoa, Zoomlion, Cansino, Holly Futures, and ABC. </li>
</ul>


We analyse the changes of A/H premium on 142 stocks over the last week. The average A/H premium of 142 A/H stocks are 116.5%, increased by 3.0ppt over last week.
The average A/H premium changed by 3.0ppt week on week, led by Real Estate, financials, and consumer discretionary sectors.
We highlight A/H premium changes of Great Wall Motor, Guangzhou Auto, Hisense Home, Tianqi Lithium, Jiangxi Copper, Angang Steel, Maanshan Iron, BBMG, Alcoa, Zoomlion, Cansino, Holly Futures, and ABC. 


A-H Premium Weekly: Tianqi Lithium at New Low Post H-Share IPO

<ul>
<li>Besides as nationalistic consumption play, <a href="https://www.smartkarma.com/entities/haier-smart-home-co-ltd-b3ef445f-0f54-4586-8c58-9073de98d60e" target="_blank" data-smartkarma-citation="entities:31105:1" rel="noopener">Haier Smart Home (6690 HK)</a> also offers attractive investment theses with bright growth prospects. Despite share price rebound, valuations are still not yet reflecting fundamentals.</li>
<li>The surge in demand for refrigerators and freezers during the pandemic-led lockdowns has boosted HSH's business in 4M22 while it will also reap benefits from Rmb depreciation.</li>
<li>The government's support of healthy development of residential real estate market will be positive towards smart home appliance demand which HSH is set to gain from its leadership position. </li>
</ul>


Besides as nationalistic consumption play, Haier Smart Home (6690 HK) also offers attractive investment theses with bright growth prospects. Despite share price rebound, valuations are still not yet reflecting fundamentals.
The surge in demand for refrigerators and freezers during the pandemic-led lockdowns has boosted HSH's business in 4M22 while it will also reap benefits from Rmb depreciation.
The government's support of healthy development of residential real estate market will be positive towards smart home appliance demand which HSH is set to gain from its leadership position. 


China

Hisense Home Appliances Group Co., Ltd. manufactures and sells household appliances. The Company produces refrigerators, air conditioners, freezers, and other equipment. Hisense Home Appliances Group markets its products worldwide.

Hisense Home Appliances Group (000921 CH)

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Hisense Home Appliances Group (000921 CH)

A-H Premium Weekly (Oct 21st): Remegen, Pharmaron, Flat Glass, Shanghai Fudan, GWM, China Life

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Remegen, Pharmaron, Flat Glass, Shanghai Fudan, GWM, China...

Ke Yan, CFA, FRM

Hisense (921 HK/000921 CH) Nonsense

I would avoid Hisense. It has a steady, low-margin underlying business. But the fruits of their labour should be divvy-ed out to shareholders, not...

David Blennerhassett

Haier Smart Home (6690 HK): A Trusted Name that Delivers

Healthy profit growth should sustain into 2H22 with upside from better margin as cost pressure subsides sequentially. Premium valuations are...

Osbert Tang, CFA

Haier Smart Home (6690 HK): Smart Moves

Haier Smart Home has seen good refrigerators/freezers sales amid the lockdowns and it will also benefit from Rmb depreciation and the government's...

Osbert Tang, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

A-H Premium Weekly (Oct 21st): Remegen, Pharmaron, Flat Glass, Shanghai Fudan, GWM, China Life

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Remegen, Pharmaron, Flat Glass, Shanghai Fudan, GWM, China...

Ke Yan, CFA, FRM

Hisense (921 HK/000921 CH) Nonsense

I would avoid Hisense. It has a steady, low-margin underlying business. But the fruits of their labour should be divvy-ed out to shareholders, not...

David Blennerhassett

Haier Smart Home (6690 HK): A Trusted Name that Delivers

Healthy profit growth should sustain into 2H22 with upside from better margin as cost pressure subsides sequentially. Premium valuations are...

Osbert Tang, CFA

A-H Premium Weekly: Tianqi Lithium at New Low Post H-Share IPO

The average A/H premium changed by 3.0ppt wow with stock highlight for Great Wall Motor, Guangzhou Auto, Hisense Home, Tianqi Lithium, Jiangxi...

Ke Yan, CFA, FRM

Haier Smart Home (6690 HK): Smart Moves

Haier Smart Home has seen good refrigerators/freezers sales amid the lockdowns and it will also benefit from Rmb depreciation and the government's...

Osbert Tang, CFA