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 March 1st.</li>
<li>We estimate the weekly inflows to be US$560.9 million, led by information technology, financials, communication services sectors, and offset by materials, energy.</li>
<li>We estimate that the inflows was USD 561m and highlight flows for Longi Green Energy Technology.</li>
</ul>


We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of March 1st.
We estimate the weekly inflows to be US$560.9 million, led by information technology, financials, communication services sectors, and offset by materials, energy.
We estimate that the inflows was USD 561m and highlight flows for Longi Green Energy Technology.


Northbound Flows (Mar 1st): Longi Green Energy Technology

<ul>
<li>We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of February 24th.</li>
<li>We estimate the weekly outflows to be US$582.6 million, led by information technology, health care, and offset by industrials, materials, consumer staples.</li>
<li>We highlight flows for Muyuan Foods, Shaanxi Coal Industry, Byd, Ping An Insurance.</li>
</ul>


We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of February 24th.
We estimate the weekly outflows to be US$582.6 million, led by information technology, health care, and offset by industrials, materials, consumer staples.
We highlight flows for Muyuan Foods, Shaanxi Coal Industry, Byd, Ping An Insurance.


Northbound Flows (Feb 24th): Muyuan Foods, Shaanxi Coal Industry, Byd, Ping An Insurance

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

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

<ul><li>We see trading opportunity on Yili into results season.</li><li>This would mainly be underpinned by 1) an easy and stabilizing earnings expectation (for both 4Q22 and 2023E), when we see subdued downside risk to current consensus estimates, and 2) a lagging valuation to peers who have already been re-rated on reopening sentiment.</li><li>We argue the stock could play near term catch-up, when a likely in line 4Q could relieve market sentiment. </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

We see trading opportunity on Yili into results season.This would mainly be underpinned by 1) an easy and stabilizing earnings expectation (for both 4Q22 and 2023E), when we see subdued downside risk to current consensus estimates, and 2) a lagging valuation to peers who have already been re-rated on reopening sentiment.We argue the stock could play near term catch-up, when a likely in line 4Q could relieve market sentiment. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Yili Industrial (600887 CH) – Shares could rally in relief on back of an in line 4Q22

<ul>
<li>We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of February 3rd.</li>
<li>We estimate the weekly inflows to be US$5,078.8 million, led by industrials, financials, information technology sectors, and offset by utilities, real estate.</li>
<li>We highlight flows for CATL, CMB, Longi Green, Ping An Insurance, Byd, Kweichow Moutai.</li>
</ul>


We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of February 3rd.
We estimate the weekly inflows to be US$5,078.8 million, led by industrials, financials, information technology sectors, and offset by utilities, real estate.
We highlight flows for CATL, CMB, Longi Green, Ping An Insurance, Byd, Kweichow Moutai.


Northbound Flows (Feb 3rd): CATL, CMB, Longi Green, Ping An Insurance, Byd, Kweichow Moutai

HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>With an average gain of 26.3%, China's A-share consumer staples outperformed the Shanghai Composite Index by significant margins in the last three months.</li>
<li>
<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> both issued express announcement on decent 4Q22 and FY22 results.</li>
<li>Both <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 (A) (600887 CH)</a> are likely to have weak 4Q22, but outlook for FY23 should improve.</li>
</ul>


With an average gain of 26.3%, China's A-share consumer staples outperformed the Shanghai Composite Index by significant margins in the last three months.

Shanxi Xinghuacun Fen Wine Factory Co (600809 CH) and Fu Jian Anjoy Foods Co Ltd (603345 CH) both issued express announcement on decent 4Q22 and FY22 results.
Both Foshan Haitian Flavouring &amp; Food (603288 CH) and Inner Mongolia Yili Industrial Group (A) (600887 CH) are likely to have weak 4Q22, but outlook for FY23 should improve.


China A-Share Consumer Staples: Good Outperformance

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

Northbound Flows (Mar 1st): Longi Green Energy Technology

We analyzed northbound Shanghai/Shenzhen connect flows in the past week and highlight flows for Longi Green Energy Technology.

Ke Yan, CFA, FRM

Northbound Flows (Feb 24th): Muyuan Foods, Shaanxi Coal Industry, Byd, Ping An Insurance

We analyzed northbound Shanghai/Shenzhen connect flows in the past week and highlight flows for Muyuan Foods, Shaanxi Coal Industry, Byd, Ping An...

Ke Yan, CFA, FRM

Yili Industrial (600887 CH) – Shares could rally in relief on back of an in line 4Q22

We forecast 4Q revenue to grow 6% YoY to RMB27bn. Momentum in October and November has been weak, and a more obvious recovery has kicked-in in...

CMB International

Northbound Flows (Feb 3rd): CATL, CMB, Longi Green, Ping An Insurance, Byd, Kweichow Moutai

We analyzed northbound Shanghai/Shenzhen connect flows in the past week and highlight flows for CATL, CMB, Longi Green, Ping An Insurance, Byd,...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Northbound Flows (Mar 1st): Longi Green Energy Technology

We analyzed northbound Shanghai/Shenzhen connect flows in the past week and highlight flows for Longi Green Energy Technology.

Ke Yan, CFA, FRM

Northbound Flows (Feb 24th): Muyuan Foods, Shaanxi Coal Industry, Byd, Ping An Insurance

We analyzed northbound Shanghai/Shenzhen connect flows in the past week and highlight flows for Muyuan Foods, Shaanxi Coal Industry, Byd, Ping An...

Ke Yan, CFA, FRM

Yili Industrial (600887 CH) – Shares could rally in relief on back of an in line 4Q22

We forecast 4Q revenue to grow 6% YoY to RMB27bn. Momentum in October and November has been weak, and a more obvious recovery has kicked-in in...

CMB International

Northbound Flows (Feb 3rd): CATL, CMB, Longi Green, Ping An Insurance, Byd, Kweichow Moutai

We analyzed northbound Shanghai/Shenzhen connect flows in the past week and highlight flows for CATL, CMB, Longi Green, Ping An Insurance, Byd,...

Ke Yan, CFA, FRM

China A-Share Consumer Staples: Good Outperformance

China's A-share consumer staples outperformed the Shanghai Composite Index by significant margins in the last three months; and we expect their...

Osbert Tang, CFA