Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>Hang Seng Indexes has started a consultation on the eligibility of Foreign Companies in the <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">Hang Seng Index</a>, a review of the seven Industry Groups and number of HK constituents.</li>
<li>We agree that foreign companies should be added to the index, no change needed to the Industry Groups, and the cap on the number of HK constituents should be removed.</li>
<li>There are a few potential adds due to the removal of the cap on HK companies, while there are potential foreign company additions later this year or in 2024.</li>
</ul>


Hang Seng Indexes has started a consultation on the eligibility of Foreign Companies in the Hang Seng Index, a review of the seven Industry Groups and number of HK constituents.
We agree that foreign companies should be added to the index, no change needed to the Industry Groups, and the cap on the number of HK constituents should be removed.
There are a few potential adds due to the removal of the cap on HK companies, while there are potential foreign company additions later this year or in 2024.


HSI Market Consultation: Foreign Companies, Industry Groups, HK Companies

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

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.

Equity Capital Markets

Lalatech Holdings Co Ltd / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/lalatech-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:36848:1" rel="noopener">Lalatech Holdings Co Ltd (LALA HK)</a> is looking to raise about US$1bn in its upcoming HK IPO.</li>
<li>Lalatech operates via a marketplace model serving merchants and carriers. Its platform facilitates closed-loop transactions from online shipping order booking to intelligent order matching, and automated dispatching to after-sale services.</li>
<li>We have looked at the company’s past performance in our earlier notes, in this note we will undertake a peer comparison.</li>
</ul>



Lalatech Holdings Co Ltd (LALA HK) is looking to raise about US$1bn in its upcoming HK IPO.
Lalatech operates via a marketplace model serving merchants and carriers. Its platform facilitates closed-loop transactions from online shipping order booking to intelligent order matching, and automated dispatching to after-sale services.
We have looked at the company’s past performance in our earlier notes, in this note we will undertake a peer comparison.


Lalatech Holdings Limited Pre-IPO - Peer Comparison - Not the Largest but Pulling Its Weight

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

Equity Bottom-Up

<ul>
<li>Alibaba's new chairman decides to provide logistics service to outside customers.</li>
<li>We believe Alibaba is following JD Logistics, as both companies have large retailer bases.</li>
<li>We suggest buying JD Logistics the role model instead of Alibaba the follower.</li>
</ul>


Alibaba's new chairman decides to provide logistics service to outside customers.
We believe Alibaba is following JD Logistics, as both companies have large retailer bases.
We suggest buying JD Logistics the role model instead of Alibaba the follower.


Alibaba (9988 HK): Buy JD Logistics as the Business Model Alibaba Begins to Follow

China/Asia TMT

Shawn Yang

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Thematic (Sector/Industry)

<ul>
<li>2618.HK/002352.CH: Cainiao launching its own national express delivery network (-/-)</li>
<li>3690.HK/PDD: Meituan planning to launch “Summer War” in community group buying (-/-)</li>
<li>BEKE: Beike is planning to extend business to real estate upstream, exploiting extra value beyond new home sales channel(-)</li>
</ul>


2618.HK/002352.CH: Cainiao launching its own national express delivery network (-/-)
3690.HK/PDD: Meituan planning to launch “Summer War” in community group buying (-/-)
BEKE: Beike is planning to extend business to real estate upstream, exploiting extra value beyond new home sales channel(-)


China TMT Update-2618.HK/2352.CH/3690.HK/PDD/BEKE-Cainiao Launching Express Delivery Network

J&T Global Express  / Equity Capital Markets

<ul>
<li>J&amp;T’s China growth will slow from a lack of (1) M&amp;A targets, and (2) cash to sustain a price war. SEA’s growth will slow, and profit margin decline due to</li>
<li> (1) Shopee in-sourcing of high-profit parcels(2) PE-backed rivals using price wars to gain market share. Lower penetration of China supply-chain platforms will stunt J&amp;T’s growth in New Markets, we expect.</li>
<li>In our base case we value J&amp;T at US$ 10 bn, which is (25%) vs. J&amp;T’s valuation in its latest round of funding.</li>
</ul>


J&amp;T’s China growth will slow from a lack of (1) M&amp;A targets, and (2) cash to sustain a price war. SEA’s growth will slow, and profit margin decline due to
 (1) Shopee in-sourcing of high-profit parcels(2) PE-backed rivals using price wars to gain market share. Lower penetration of China supply-chain platforms will stunt J&amp;T’s growth in New Markets, we expect.
In our base case we value J&amp;T at US$ 10 bn, which is (25%) vs. J&amp;T’s valuation in its latest round of funding.


Blue Lotus IPO Outlook/J&T Express: Cash Crunch as Prices Slump, Overseas Volume Ramps

China

JD Logistics, Inc. offers logistics services. The Company provides cargo transportation, cargo distribution, warehousing, and other services. JD Logistics is located in China.

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JD Logistics (2618 HK)

HSI Market Consultation: Foreign Companies, Industry Groups, HK Companies

The conclusions of the market consultation have been announced. Primary-listed foreign companies will be eligible for inclusion in the HSI and...

Brian Freitas

Lalatech Holdings Limited Pre-IPO - Peer Comparison - Not the Largest but Pulling Its Weight

Lalatech Holdings Co Ltd (LALA HK) is looking to raise about US$1bn in its upcoming HK IPO. In this note, we undertake a peer comparison.

Sumeet Singh

Alibaba (9988 HK): Buy JD Logistics as the Business Model Alibaba Begins to Follow

Alibaba decides to provide logistics service to outside customers. We believe Alibaba is following JD Logistics. We suggest buying JD Logistics the...

Ming Lu

China TMT Update-2618.HK/2352.CH/3690.HK/PDD/BEKE-Cainiao Launching Express Delivery Network

2618.HK/352.CH: Cainiao launching own national express delivery network；3690.HK/PDD: Meituan planning to launch “Summer War” in CGB；BEKE: Beike is...

Blue Lotus Research Institute

Blue Lotus IPO Outlook/J&T Express: Cash Crunch as Prices Slump, Overseas Volume Ramps

We expect that J&T’s China and SEA’s growth will slow down. we value J&T at US$ 10 bn, which is (25%) vs. J&T’s valuation in its latest round of...

Blue Lotus Research Institute

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