Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

In this edition of the Smartkarma North Asia Weekly, it summarizes some of the top insights on Smartkarma in the past week covering Japan, HK/China, and the Korean stock markets. The top topics are below:1) POTUS Executive Order: Updated List of Chinese Stocks to Be Deleted by Major Indices2) Kanzhun IPO3) Angelalign IPO 4) China: Allows Families to Have Three Children5) HYBE Rights Offering6) China Infrastructure REITs7) Aihuishou IPO8) Full Truck Alliance IPO9) Enjin IPO10) Xpeng: Positive Momentum Back11) Tesla China Losing Market Share12) CStone Pharma (2616.HK) - Time for a Revaluation13) JD Health Lock-Up Expiration14) Passive Money Tracking KOSPI15) SK IE Tech KOSPI 200 Fast-Entry16) DL Holdings with Recent Tender’s Increased Shares: Index Treatment 17) WH Group (288 HK)

In this edition of the Smartkarma North Asia Weekly, it summarizes some of the top insights on Smartkarma in the past week covering Japan, HK/China, and the Korean stock markets. The top topics are below:1) POTUS Executive Order: Updated List of Chinese Stocks to Be Deleted by Major Indices2) Kanzhun IPO3) Angelalign IPO 4) China: Allows Families to Have Three Children5) HYBE Rights Offering6) China Infrastructure REITs7) Aihuishou IPO8) Full Truck Alliance IPO9) Enjin IPO10) Xpeng: Positive Momentum Back11) Tesla China Losing Market Share12) CStone Pharma (2616.HK) - Time for a Revaluation13) JD Health Lock-Up Expiration14) Passive Money Tracking KOSPI15) SK IE Tech KOSPI 200 Fast-Entry16) DL Holdings with Recent Tender’s Increased Shares: Index Treatment 17) WH Group (288 HK)

Smartkarma North Asia Weekly: POTUS Order, Kanzhun, Angelalign, & 3 Children Policy in China

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.

Hygeia Healthcare / Equity Capital Markets

Warburg Pincus aims to raise around US$216m via selling 3.2% of Hygeia Healthcare. This won’t be the first selldown by Warburg. Despite having been listed just around a year ago, the stock has already seen two placements, both in Jan 2021, just after the lock-up expiry. Both the past deals did well. However, the stock was trading a whole lot lower at that time.In this note, we will run the deal through our ECM framework and talk about the deal dynamics.<div><h2>Our previous coverage on Hygeia</h2></div><div><ul style="list-style-type: disc;">
<li dir="ltr"><a href="https://www.smartkarma.com/insights/hygeia-healthcare-pre-ipo-the-making-of-jinxin-in-the-oncology-segment" target="_blank" rel="noopener">Hygeia Healthcare (海吉亚) Pre-IPO: The making of Jinxin in the oncology segment</a></li>
<li dir="ltr"><a href="https://www.smartkarma.com/insights/hygeia-healthcare-pre-ipo-phip-updates-and-thoughts-on-valuation" target="_blank" rel="noopener">Hygeia Healthcare (海吉亚) Pre-IPO: PHIP Updates and Thoughts on Valuation</a></li>
<li dir="ltr"><a href="https://www.smartkarma.com/insights/hygeia-healthcare-ipo-hot-deal-but-expect-tiny-allocation" target="_blank" rel="noopener">Hygeia Healthcare (海吉亚) IPO: Hot Deal but Expect Tiny Allocation</a></li>
<li dir="ltr"><a href="https://www.smartkarma.com/insights/hygeia-healthcare-ipo-trading-upside-might-take-time-to-crystalize" target="_blank" rel="noopener">Hygeia Healthcare (海吉亚) IPO Trading: Upside Might Take Time to Crystalize</a></li>
</ul></div>

Warburg Pincus aims to raise around US$216m via selling 3.2% of Hygeia Healthcare. This won’t be the first selldown by Warburg. Despite having been listed just around a year ago, the stock has already seen two placements, both in Jan 2021, just after the lock-up expiry. Both the past deals did well. However, the stock was trading a whole lot lower at that time.In this note, we will run the deal through our ECM framework and talk about the deal dynamics.Our previous coverage on Hygeia
Hygeia Healthcare (海吉亚) Pre-IPO: The making of Jinxin in the oncology segment
Hygeia Healthcare (海吉亚) Pre-IPO: PHIP Updates and Thoughts on Valuation
Hygeia Healthcare (海吉亚) IPO: Hot Deal but Expect Tiny Allocation
Hygeia Healthcare (海吉亚) IPO Trading: Upside Might Take Time to Crystalize


Hygeia Healthcare Placement - Past Deals Have Done Well but the Shares Are Now Very Expensive

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Equity Bottom-Up

China's Politburo hosted a meeting on May 31st to review the population policy (关于优化生育政策促进人口长期均衡发展的决定, hereafter Decision). The meeting pointed out that allowing couples to have third child will improve the demographic structure of China to counter the aging population. The meeting also mentioned that the government will start to implement policies to encourage the third child, with social and economic support. In this note, I take a brief look at the China's past child birth policy changes and three beneficiaries of the new birth policy. I am of the view that the benefit of the new policy will be marginal but the direction is plausible.

China's Politburo hosted a meeting on May 31st to review the population policy (关于优化生育政策促进人口长期均衡发展的决定, hereafter Decision). The meeting pointed out that allowing couples to have third child will improve the demographic structure of China to counter the aging population. The meeting also mentioned that the government will start to implement policies to encourage the third child, with social and economic support. In this note, I take a brief look at the China's past child birth policy changes and three beneficiaries of the new birth policy. I am of the view that the benefit of the new policy will be marginal but the direction is plausible. 

China: 3rd Child Policy and 3 Beneficiaries

<div>
Jinxin Fertility reported its results over the weekend and hosted a conference call in the morning today. We attended the conference call with positive takeaways. While the results fell below the consensus estimates, we believe that its long-term fundamentals are intact. The company's business will fire in all cylinders after international travel restrictions are lifted. We believe that the recent share weakness was mainly due to the risk-off sentiment in the market, particularly by the Chinese southbound investors. We believe that the demands for IVF services are secular and the moat is wide. We will accumulate the stock as a long-term holding.
<div><h2>Our previous coverage on Jinxin Fertility</h2></div>
<div><ul style="list-style-type: disc;">
<li><a href="https://www.smartkarma.com/insights/jinxin-fertility-pre-ipo-strong-foothold-in-sichuan-but-weak-sentiment-for-sector" target="_blank" rel="noopener">Jinxin Fertility (锦欣生殖) Pre-IPO: Strong Foothold in Sichuan but Weak Sentiment for Sector</a></li>
<li><a href="https://www.smartkarma.com/insights/jinxin-fertility-ipo-worth-a-look-given-the-sector-existing-shareholders-and-cornerstone" target="_blank" rel="noopener">Jinxin Fertility (锦欣生殖) IPO - Worth a Look Given the Sector, Existing Shareholders and Cornerstone</a></li>
<li><a href="https://www.smartkarma.com/insights/jinxin-fertility-post-ipo-trading-fairly-valued" target="_blank" rel="noopener">Jinxin Fertility (锦欣生殖) Post-IPO Trading: Fairly Valued</a></li>
<li><a href="https://www.smartkarma.com/insights/jinxin-fertility-placement-a-good-point-of-entry" target="_blank" rel="noopener">Jinxin Fertility (锦欣生殖) Placement - A Good Point of Entry</a></li>
<li><a href="https://www.smartkarma.com/insights/bottom-fishing-idea-jinxin-fertility-ivf-story-intact" target="_blank" rel="noopener">Bottom Fishing Idea - Jinxin Fertility: IVF Story Intact</a></li>
</ul></div>
</div>


Jinxin Fertility reported its results over the weekend and hosted a conference call in the morning today. We attended the conference call with positive takeaways. While the results fell below the consensus estimates, we believe that its long-term fundamentals are intact. The company's business will fire in all cylinders after international travel restrictions are lifted. We believe that the recent share weakness was mainly due to the risk-off sentiment in the market, particularly by the Chinese southbound investors. We believe that the demands for IVF services are secular and the moat is wide. We will accumulate the stock as a long-term holding.
Our previous coverage on Jinxin Fertility

Jinxin Fertility (锦欣生殖) Pre-IPO: Strong Foothold in Sichuan but Weak Sentiment for Sector
Jinxin Fertility (锦欣生殖) IPO - Worth a Look Given the Sector, Existing Shareholders and Cornerstone
Jinxin Fertility (锦欣生殖) Post-IPO Trading: Fairly Valued
Jinxin Fertility (锦欣生殖) Placement - A Good Point of Entry
Bottom Fishing Idea - Jinxin Fertility: IVF Story Intact



Jinxin Fertility: Long Term IVF Story Intact Despite Potential Post Results De-Rating

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Since 2016, the number of new births in China has continued to decline, raising public debate on whether the population policy needs to be adjusted. The National Health Commission has made a clear response recently, saying that Northeast China "can explore" to take the lead in fully liberalizing birth restrictions, and <a href="https://www.smartkarma.com/entities/jinxin-fertility-group-ltd" target="_blank" data-smartkarma-citation="entities:28003:1" rel="noopener">Jinxin Fertility Co Ltd (1951 HK)</a>, a leading ARS provider in China and the United States, is undoubtedly one of the beneficiaries of related policy. Recently, Jinxin reached a record high of HK$23.65, with a current market value of about HK$57.8 billion, and the stock has been increased about 45% this year.

Since 2016, the number of new births in China has continued to decline, raising public debate on whether the population policy needs to be adjusted. The National Health Commission has made a clear response recently, saying that Northeast China "can explore" to take the lead in fully liberalizing birth restrictions, and Jinxin Fertility Co Ltd (1951 HK), a leading ARS provider in China and the United States, is undoubtedly one of the beneficiaries of related policy. Recently, Jinxin reached a record high of HK$23.65, with a current market value of about HK$57.8 billion, and the stock has been increased about 45% this year.

Jinxin Fertility (1951.HK) - The New Policy, the Logic and the Risk Factors

China

Jinxin Fertility Group is a leading international provider of assisted reproductive services (ARS) and assisted reproductive technology (ART). Its core offerings include In Vitro Fertilization (IVF), Intrauterine Insemination (IUI), egg retrieval, embryo transfer, and genetic screening, alongside a range of women's health services. The company is headquartered in Chengdu, China, and was founded in 1951.

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Jinxin Fertility (1951 HK)

Smartkarma North Asia Weekly: POTUS Order, Kanzhun, Angelalign, & 3 Children Policy in China

In this edition of the Smartkarma North Asia Weekly, it summarizes some of the top insights on Smartkarma in the past week covering Japan, HK...

Douglas Kim

Hygeia Healthcare Placement - Past Deals Have Done Well but the Shares Are Now Very Expensive

Warburg Pincus aims to raise around US$216m via selling 3.2% of Hygeia Healthcare. This won’t be the first selldown by Warburg.

Sumeet Singh

China: 3rd Child Policy and 3 Beneficiaries

I take a brief look at the China's past child birth policy changes and three beneficiaries of the exposure to the new birth policy.

Ke Yan, CFA, FRM

Jinxin Fertility: Long Term IVF Story Intact Despite Potential Post Results De-Rating

We believe that the recent share weakness was mainly due to the risk-off sentiment in the market. Demands for IVF services are secular and the moat...

Ke Yan, CFA, FRM

Jinxin Fertility (1951.HK) - The New Policy, the Logic and the Risk Factors

This article analyzed Jinxin Fertility in terms of the industry characteristics (entry barrier), business model (expansion mode, talent, merger and...

Xinyao (Criss) Wang

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