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 analyzed the changes in short interest of Bursa stocks as of Sep 19th. The aggregated short interest is USD377m.</li>
<li>We tabulate league tables for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We highlight short interest changes in CIMB, Gamuda, Sime Darby, VS Industry, Telekom Malaysia.</li>
</ul>


We analyzed the changes in short interest of Bursa stocks as of Sep 19th. The aggregated short interest is USD377m.
We tabulate league tables for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We highlight short interest changes in CIMB, Gamuda, Sime Darby, VS Industry, Telekom Malaysia.


Bursa Short Interest Weekly (Sep 19th): CIMB, Gamuda, Sime Darby, VS Industry, Telekom Malaysia

<ul>
<li>We analyzed the changes in short interest of Bursa stocks as of Jul 25th. The aggregated short interest is USD397m.</li>
<li>We tabulate league tables for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We highlight short interest changes in Supermax, PPB, Sunway Construction, IJM, Cahya Mata Sarawak.</li>
</ul>


We analyzed the changes in short interest of Bursa stocks as of Jul 25th. The aggregated short interest is USD397m.
We tabulate league tables for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We highlight short interest changes in Supermax, PPB, Sunway Construction, IJM, Cahya Mata Sarawak.


Bursa Short Interest Weekly (Jul 25th): Supermax, PPB, Sunway Construction, IJM, Cahya Mata Sarawak

External broker reports(aggregated public sources), JF Apex Securities Berhad

JF Apex Securities Bhd

External broker reports(aggregated public sources)

Equity Bottom-Up

<div class="content-highlight"><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></div>

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.

On track to meet sales and earnings targets

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Zhuhai Holdings Investment / Event-Driven

<p>Back on the 22 January, <a href="https://www.smartkarma.com/entities/zhuhai-holdings-investment-group-ltd" target="_blank" data-smartkarma-citation="entities:17863:1" rel="noopener">Zhuhai Holdings Investment (908 HK)</a> <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0122/2021012201252.pdf" target="_blank" rel="noopener">announced</a> a pre-conditional privatisation by way of a Scheme from Zhuhai SASAC's Longway Services Group<strong>.</strong></p>
<p>The Offer price was HK$3.06/share, a 37.84% premium to last close, a 52.39% premium to the average closing price over the previous 30 trading days, and a lifetime high. The Offer price will not be increased. No dividend is expected to be declared during the Offer period. </p>
<div>
<p>Pre-conditions from NDRC, MoC, and SAFE were satisfied by the <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0322/2021032200507.pdf" target="_blank" rel="noopener">22 March</a>. </p>
</div>
<div>The <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0420/2021042001483.pdf" target="_blank" rel="noopener">Scheme Document</a> is now out, with the Court Meeting/SGM will be held on the 18 May. The IFA says fair &amp; reasonable.</div>
<div></div>
<div>
<p>As always, more below the fold. </p>
</div>

Back on the 22 January, Zhuhai Holdings Investment (908 HK) announced a pre-conditional privatisation by way of a Scheme from Zhuhai SASAC's Longway Services Group.
The Offer price was HK$3.06/share, a 37.84% premium to last close, a 52.39% premium to the average closing price over the previous 30 trading days, and a lifetime high. The Offer price will not be increased. No dividend is expected to be declared during the Offer period. 

Pre-conditions from NDRC, MoC, and SAFE were satisfied by the 22 March. 

The Scheme Document is now out, with the Court Meeting/SGM will be held on the 18 May. The IFA says fair &amp; reasonable.


As always, more below the fold. 


Zhuhai Holdings (908 HK): SGM On The 18 May

<p>On the 21 January 2020, <a href="https://www.smartkarma.com/entities/zhuhai-holdings-investment-group-ltd" target="_blank" data-smartkarma-citation="entities:17863:1" rel="noopener">Zhuhai Holdings Investment (908 HK)</a> (ZHI) <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0122/2020012200085.pdf" target="_blank" rel="noopener">announced</a> Longway Services Group Limited (the Offeror and wholly-owned by Zhuhai SASAC), and a 25.73% shareholder of ZHI, had entered into a SPA with <a href="https://www.smartkarma.com/entities/lbs-bina-group-bhd" target="_blank" data-smartkarma-citation="entities:12060:1" rel="noopener">Lbs Bina Group (LBS MK)</a>, to acquire LBS' 5.53% stake in ZHI. The sale price was $1.21/share, a 0.83% premium to last close. Upon the completion of the SPA, the Concert Group (including ZJ Holdings' direct stake of 16.47%) would own 47.95%, up from 42.42%. This would trigger a mandatory conditional cash offer by the Concert Group under Rule 26.1 of the Takeovers Code. The Offer was discussed in <em><a href="https://skr.ma/1eyKn" target="_blank" rel="noopener">Zhuhai Holdings: SOE Offer For Tourist Play</a></em>.</p>
<p>The SPA was completed on the <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0122/2020012200940.pdf" target="_blank" rel="noopener">22 January</a> and became a <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0330/2020033002505.pdf" target="_blank" rel="noopener">mandatory unconditional offer</a> after the Offeror acquired further shares in the market, taking the collective holding above 50%. The Composite Doc was issued on the <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0417/2020041700077.pdf" target="_blank" rel="noopener">17 April</a> last year, with the IFA saying the Offer was fair and reasonable. The Offer <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0508/2020050801074.pdf" target="_blank" rel="noopener">closed</a> on the 8 May with Zhuhai SASAC controlling 61.5%, and public shareholders holding  21.33%. The public float was restored above 25% on <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0528/2020052800911.pdf" target="_blank" rel="noopener">the 28 May</a>. </p>
<h3><strong>The New News</strong></h3>
<div>
<p>After ZHI's shares were <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0118/2021011800105.pdf" target="_blank" rel="noopener">suspended</a> ahead of trading on the 18 January "<em>pursuant to The Codes on Takeovers and Mergers which constitute inside information of the Company</em>". ZHI has now <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0122/2021012201252.pdf" target="_blank" rel="noopener">announced</a> a pre-conditional privatisation by way of Scheme from Zhuhai SASAC's Longway Services Group.</p>
</div>
<div>
<p>The Offer price is HK$3.06/share, a 37.84% premium to last close, a 52.39% premium to the average closing price over the previous 30 trading days, and a life-time high. The Offer price will not be increased. No dividend has been declared, nor is one expected to be declared during the Offer period. </p>
<p>Pre-conditions include signs offs from NDRC, MoC, and SAFE. As an SOE is making the Offer, these approvals should be rubber-stamped. </p>
<p>The shareholding into ZHI remains unchanged since the float was restored last May. Zhuhai SASAC indirectly holds 61.5% of shares out. Scheme shareholders comprise 549.6mn shares or 38.5% of shares out. </p>
</div>
<div>
<p>Key Scheme conditions include at least 75% of Independent Scheme Shares voting FOR &amp; not more than 10% of the votes attached to ALL the Independent Scheme Shares against. Therefore the blocking stake is 49.6mn shares, or 3.85% of shares out. No single shareholder has declared such a stake. No irrevocables have been given.</p>
</div>
<div>
<p>The headcount test applies as ZHI is Bermuda-incorporated. </p>
</div>
<div>
<p>This deal looks done.</p>
</div>
<div>
<p>As always, more below the fold. </p>
</div>

On the 21 January 2020, Zhuhai Holdings Investment (908 HK) (ZHI) announced Longway Services Group Limited (the Offeror and wholly-owned by Zhuhai SASAC), and a 25.73% shareholder of ZHI, had entered into a SPA with Lbs Bina Group (LBS MK), to acquire LBS' 5.53% stake in ZHI. The sale price was $1.21/share, a 0.83% premium to last close. Upon the completion of the SPA, the Concert Group (including ZJ Holdings' direct stake of 16.47%) would own 47.95%, up from 42.42%. This would trigger a mandatory conditional cash offer by the Concert Group under Rule 26.1 of the Takeovers Code. The Offer was discussed in Zhuhai Holdings: SOE Offer For Tourist Play.
The SPA was completed on the 22 January and became a mandatory unconditional offer after the Offeror acquired further shares in the market, taking the collective holding above 50%. The Composite Doc was issued on the 17 April last year, with the IFA saying the Offer was fair and reasonable. The Offer closed on the 8 May with Zhuhai SASAC controlling 61.5%, and public shareholders holding  21.33%. The public float was restored above 25% on the 28 May. 
The New News

After ZHI's shares were suspended ahead of trading on the 18 January "pursuant to The Codes on Takeovers and Mergers which constitute inside information of the Company". ZHI has now announced a pre-conditional privatisation by way of Scheme from Zhuhai SASAC's Longway Services Group.


The Offer price is HK$3.06/share, a 37.84% premium to last close, a 52.39% premium to the average closing price over the previous 30 trading days, and a life-time high. The Offer price will not be increased. No dividend has been declared, nor is one expected to be declared during the Offer period. 
Pre-conditions include signs offs from NDRC, MoC, and SAFE. As an SOE is making the Offer, these approvals should be rubber-stamped. 
The shareholding into ZHI remains unchanged since the float was restored last May. Zhuhai SASAC indirectly holds 61.5% of shares out. Scheme shareholders comprise 549.6mn shares or 38.5% of shares out. 


Key Scheme conditions include at least 75% of Independent Scheme Shares voting FOR &amp; not more than 10% of the votes attached to ALL the Independent Scheme Shares against. Therefore the blocking stake is 49.6mn shares, or 3.85% of shares out. No single shareholder has declared such a stake. No irrevocables have been given.


The headcount test applies as ZHI is Bermuda-incorporated. 


This deal looks done.


As always, more below the fold. 


Zhuhai Holdings (908 HK): Zhuhai SASAC Reloads With Scheme Offer

Malaysia

LBS Bina Group Berhad is a management and investment holding company.  The Company, through its subsidiaries, operates property development and investment. LBS also provides project management and contractor services for property development, turf and landscaping contracting, insurance services, sells motor vehicles, and trades building materials.

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LBS Bina Group (LBS MK)

Bursa Short Interest Weekly (Sep 19th): CIMB, Gamuda, Sime Darby, VS Industry, Telekom Malaysia

We analyzed Bursa Malaysia short interest report for the past week and highlighted short interest changes in CIMB, Gamuda, Sime Darby, VS Industry,...

Ke Yan, CFA, FRM

Bursa Short Interest Weekly (Jul 25th): Supermax, PPB, Sunway Construction, IJM, Cahya Mata Sarawak

We analyzed Bursa Malaysia short interest report for the past week and highlighted short interest changes in Supermax, PPB, Sunway Construction,...

Ke Yan, CFA, FRM

On track to meet sales and earnings targets

Buy Lbs Bina Group Berhad: On track to meet sales and earnings targets. - By: JF Apex Securities Bhd

JF Apex Securities Bhd

Zhuhai Holdings (908 HK): SGM On The 18 May

A solid premium to last close and a life-time high. The revised NAV was to be expected. I don't see that uplift in the NAV as a basis for...

David Blennerhassett

Zhuhai Holdings (908 HK): Zhuhai SASAC Reloads With Scheme Offer

A solid premium to last close and a life-time high - this is priced to complete. I'd buy up to around HK$2.92/share - or ~4.8%/~15.0% gross...

David Blennerhassett

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