Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Greatview Aseptic Packaging / Event-Driven

<ul>
<li>Back on the 1 January, <a href="https://www.smartkarma.com/entities/shandong-xinjufeng-technology-packaging-co-ltd" target="_blank" data-smartkarma-citation="entities:36744:1" rel="noopener">Shandong Xinjufeng Technology Packaging (301296 CH)</a> sought to acquire <a href="https://www.smartkarma.com/entities/jardine-matheson-holdings-ltd" target="_blank" data-smartkarma-citation="entities:19718:1" rel="noopener">Jardine Matheson Holdings (JM SP)</a>'s 28.22% stake in <a href="https://www.smartkarma.com/entities/greatview-aseptic-packaging" target="_blank" data-smartkarma-citation="entities:10802:1" rel="noopener">Greatview Aseptic Packaging (468 HK)</a> at HK$2.65/share.</li>
<li>It was hardly a knockout price. However, Mathson had been itching to exit. Even if it involved selling its stake to one of Greatview's competitor. </li>
<li>Greatview's board is unimpressed, and now reckons Matheson's initial buy-in may be in breach of PRC anti-monopoly laws. </li>
</ul>


Back on the 1 January, Shandong Xinjufeng Technology Packaging (301296 CH) sought to acquire Jardine Matheson Holdings (JM SP)'s 28.22% stake in Greatview Aseptic Packaging (468 HK) at HK$2.65/share.
It was hardly a knockout price. However, Mathson had been itching to exit. Even if it involved selling its stake to one of Greatview's competitor. 
Greatview's board is unimpressed, and now reckons Matheson's initial buy-in may be in breach of PRC anti-monopoly laws. 


Greatview (468 HK): Bickering And Stalling

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 Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of May 5th.</li>
<li>We estimate the weekly outflows to be US$75.1 million, led by information technology, materials, and offset by financials, consumer staples, health care.</li>
<li>We highlight flows for Kweichow Moutai, Foxconn Industrial Internet, Gree Electric Appliances.</li>
</ul>


We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of May 5th.
We estimate the weekly outflows to be US$75.1 million, led by information technology, materials, and offset by financials, consumer staples, health care.
We highlight flows for Kweichow Moutai, Foxconn Industrial Internet, Gree Electric Appliances.


Northbound Flows (May 5th): Kweichow Moutai, Foxconn Industrial Internet, Gree Electric Appliances

HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>We believe the recent underperformance of A-share consumer staples is unjustified. Their 1Q23 results are generally decent despite negative impact from the pandemic in Jan 2023.</li>
<li>Both <a href="https://www.smartkarma.com/entities/shanxi-xinghuacun-fen-wine-factory-co" target="_blank" data-smartkarma-citation="entities:9288:1" rel="noopener">Shanxi Xinghuacun Fen Wine Factory Co (600809 CH)</a> and <a href="https://www.smartkarma.com/entities/fu-jian-anjoy-foods-co-ltd" target="_blank" data-smartkarma-citation="entities:30110:1" rel="noopener">Fu Jian Anjoy Foods Co Ltd (603345 CH)</a> witnessed good revenue growth and margin expansion. </li>
<li>
<a href="https://www.smartkarma.com/entities/foshan-haitian-flavouring-food-co-ltd" target="_blank" data-smartkarma-citation="entities:15577:1" rel="noopener">Foshan Haitian Flavouring &amp; Food (603288 CH)</a> and <a href="https://www.smartkarma.com/entities/inner-mongolia-yili-indus-a" target="_blank" data-smartkarma-citation="entities:3220:1" rel="noopener">Inner Mongolia Yili Industrial Group (600887 CH)</a> have less satisfactory revenue and margin. Nonetheless, all four companies exhibited good operating cost control. </li>
</ul>


We believe the recent underperformance of A-share consumer staples is unjustified. Their 1Q23 results are generally decent despite negative impact from the pandemic in Jan 2023.
Both Shanxi Xinghuacun Fen Wine Factory Co (600809 CH) and Fu Jian Anjoy Foods Co Ltd (603345 CH) witnessed good revenue growth and margin expansion. 

Foshan Haitian Flavouring &amp; Food (603288 CH) and Inner Mongolia Yili Industrial Group (600887 CH) have less satisfactory revenue and margin. Nonetheless, all four companies exhibited good operating cost control. 


China A-Share Consumer Staples: Depressed Share Price Cannot Reflect Decent Earnings

Equity Analyst

Xin Yu, CFA

Equity Bottom-Up

Inner Mongolia Yili Industrial Group (A) / Equity Bottom-Up

<ul>
<li>4Q22 result beat and 1Q23 result was roughly in line</li>
<li>Revenue growth to accelerate and margin to improve in 2023</li>
<li>Long-Term targets remain unchanged and the valuation becomes attractive now</li>
</ul>


4Q22 result beat and 1Q23 result was roughly in line
Revenue growth to accelerate and margin to improve in 2023
Long-Term targets remain unchanged and the valuation becomes attractive now


<ul>
<li>We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of April 14th.</li>
<li>We estimate the weekly inflows to be US$770.1 million, led by materials, industrials, utilities sectors, and offset by financials, consumer staples.</li>
<li>We highlight flows for Kweichow Moutai, Ping An Insurance, Wuxi Apptec.</li>
</ul>


We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of April 14th.
We estimate the weekly inflows to be US$770.1 million, led by materials, industrials, utilities sectors, and offset by financials, consumer staples.
We highlight flows for Kweichow Moutai, Ping An Insurance, Wuxi Apptec.


Northbound Flows (Apr 14th): Kweichow Moutai, Ping An Insurance, Wuxi Apptec

China

Inner Mongolia Yili Industrial Group Co., Ltd. produces milk, powdered milk, ice cream, and other dairy products.  The Company also produces frozen food and noodles.

Inner Mongolia Yili Industrial Group (A) (600887 CH)

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

Inner Mongolia Yili Industrial Group (A) (600887 CH)

Greatview (468 HK): Bickering And Stalling

Greatview is inexpensive, trading 29% below the SPA terms. Cash on hand accounts for 29% of its market cap. For now, I'd cautiously get involved here.

David Blennerhassett

Northbound Flows (May 5th): Kweichow Moutai, Foxconn Industrial Internet, Gree Electric Appliances

We analyzed northbound Shanghai/Shenzhen connect flows in the past week and highlight flows for Kweichow Moutai, Foxconn Industrial Internet, Gree...

Ke Yan, CFA, FRM

Yili: 4Q22 and 1Q23 Results - Buy

4Q22 result beat and 1Q23 result in line. Revenue growth to accelerate and margin to improve in 2023. Attractive valuation.

Xin Yu, CFA

Northbound Flows (Apr 14th): Kweichow Moutai, Ping An Insurance, Wuxi Apptec

We analyzed northbound Shanghai/Shenzhen connect flows in the past week and highlight flows for Kweichow Moutai, Ping An Insurance, Wuxi Apptec.

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Greatview (468 HK): Bickering And Stalling

Greatview is inexpensive, trading 29% below the SPA terms. Cash on hand accounts for 29% of its market cap. For now, I'd cautiously get involved here.

David Blennerhassett

Northbound Flows (May 5th): Kweichow Moutai, Foxconn Industrial Internet, Gree Electric Appliances

We analyzed northbound Shanghai/Shenzhen connect flows in the past week and highlight flows for Kweichow Moutai, Foxconn Industrial Internet, Gree...

Ke Yan, CFA, FRM

China A-Share Consumer Staples: Depressed Share Price Cannot Reflect Decent Earnings

Recent underperformace of A-share consumer staples are not justified, given their generally solid 1Q23 results. All of them achieved good operating...

Osbert Tang, CFA

Yili: 4Q22 and 1Q23 Results - Buy

4Q22 result beat and 1Q23 result in line. Revenue growth to accelerate and margin to improve in 2023. Attractive valuation.

Xin Yu, CFA

Northbound Flows (Apr 14th): Kweichow Moutai, Ping An Insurance, Wuxi Apptec

We analyzed northbound Shanghai/Shenzhen connect flows in the past week and highlight flows for Kweichow Moutai, Ping An Insurance, Wuxi Apptec.

Ke Yan, CFA, FRM