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 monthly Hong Kong Connect flows with our data engine.</li>
<li>We tabulate the top stocks by inflows, outflows, and holding by mainland investors.</li>
<li>We highlight inflows into Meituan, Wuxi Biologics, SMIC, GWM, HKEX.</li>
</ul>


We analyze the monthly Hong Kong Connect flows with our data engine.
We tabulate the top stocks by inflows, outflows, and holding by mainland investors.
We highlight inflows into Meituan, Wuxi Biologics, SMIC, GWM, HKEX.


Hong Kong Connect Flows (October): Four Months of Inflows

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>This is the somewhat brand-spanking-new Quiddity HK Connect SOUTHBOUND Monitor. We work off the same presentation as the A/H Premium Monitor and Mainland Connect NORTHBOUND Monitor.</li>
<li>Last week, China Mobile (941), SMIC (981) and CNOOC (883) all saw total SOUTHBOUND turnover top 75% of value traded on a gross basis, indicating huge participation. </li>
<li>Meituan was again the top SOUTHBOUND inflow, now net inflow every day for more than a month. Total Net Inflows at HK$6.9bn now 14 weeks straight in the positive column.</li>
</ul>


This is the somewhat brand-spanking-new Quiddity HK Connect SOUTHBOUND Monitor. We work off the same presentation as the A/H Premium Monitor and Mainland Connect NORTHBOUND Monitor.
Last week, China Mobile (941), SMIC (981) and CNOOC (883) all saw total SOUTHBOUND turnover top 75% of value traded on a gross basis, indicating huge participation. 
Meituan was again the top SOUTHBOUND inflow, now net inflow every day for more than a month. Total Net Inflows at HK$6.9bn now 14 weeks straight in the positive column.


Quiddity HK Connect SOUTHBOUND (To 27-Oct-23); Meituan & Tech IN, High Div SOEs OUT, Financials MIA

Analyst

Steve

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/li-ning-co-ltd" target="_blank" data-smartkarma-citation="entities:6047:1" rel="noopener">Li Ning (2331 HK)</a> is trading down 18% today due to a bad 3Q23 operational date. </li>
<li>Retail sales grew by only mid-single-digit yoy, while same-store-sales recorded a mid-single-digit decline yoy. </li>
<li>Given the operational update, FY23 earnings should be revised down, to likely flat or low-single-digit growth.</li>
</ul>



Li Ning (2331 HK) is trading down 18% today due to a bad 3Q23 operational date. 
Retail sales grew by only mid-single-digit yoy, while same-store-sales recorded a mid-single-digit decline yoy. 
Given the operational update, FY23 earnings should be revised down, to likely flat or low-single-digit growth.


Li Ning (2331 HK):  Bearish Thesis Playing Out

HK/China Equity Long-Short

Osbert Tang, CFA

<ul>
<li>
<a href="https://www.smartkarma.com/entities/anta-sports-products-ltd" target="_blank" data-smartkarma-citation="entities:10261:1" rel="noopener">Anta Sports Products (2020 HK)</a> achieved a decent 3Q23 with sales performance of major brands outperformed. With a low comparison base, 4Q23 sales will be even more impressive. </li>
<li>Indications are that sales for the Golden Week are satisfactory and "double-11" sales are optimistic. The acquisition of MAIA ACTIVE will further add to its product portfolio.</li>
<li>Amer's IPO is another catalyst and reports are that this has been filed in the US. Anta Sports' stake may be valued at US$4bn, almost 12% of its market cap.</li>
</ul>



Anta Sports Products (2020 HK) achieved a decent 3Q23 with sales performance of major brands outperformed. With a low comparison base, 4Q23 sales will be even more impressive. 
Indications are that sales for the Golden Week are satisfactory and "double-11" sales are optimistic. The acquisition of MAIA ACTIVE will further add to its product portfolio.
Amer's IPO is another catalyst and reports are that this has been filed in the US. Anta Sports' stake may be valued at US$4bn, almost 12% of its market cap.


Anta Sports (2020 HK): Bucking the Challenging Trend

<ul>
<li>Since my bearish insight on August 11 (<a href="https://www.smartkarma.com/insights/li-ning-2331-hk-low-quality-earnings-beat" target="_blank" data-smartkarma-citation="insights:110159" rel="noopener">Li Ning (2331 HK):  Low Quality Earnings Beat</a>), Li Ning's share price has declined by 27% in less than 2 months.</li>
<li>Anta's share price on the other hand has been flat during the same time frame (<a href="https://www.smartkarma.com/insights/anta-sports-2020-hk-most-resilient-in-industry-down-cycles" target="_blank" data-smartkarma-citation="insights:111097" rel="noopener">Anta Sports (2020 HK):  Most Resilient In Industry Down-Cycles</a>).</li>
<li>In this insight, we look at if there are now any positive catalysts on the name, given the steep share price decline.</li>
</ul>


Since my bearish insight on August 11 (Li Ning (2331 HK):  Low Quality Earnings Beat), Li Ning's share price has declined by 27% in less than 2 months.
Anta's share price on the other hand has been flat during the same time frame (Anta Sports (2020 HK):  Most Resilient In Industry Down-Cycles).
In this insight, we look at if there are now any positive catalysts on the name, given the steep share price decline.


Li Ning (2331 HK):  No Positive Catalysts In Sight

China

Li Ning Company Limited researches, designs, manufactures, distributes, and retails sports footwear, apparel and accessories for sport and leisure use.

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Li Ning (2331 HK)

Hong Kong Connect Flows (October): Four Months of Inflows

We analyzed the Hong Kong Connect Scheme for October and highlight flows for Meituan, Wuxi Biologics, SMIC, Great Wall Motor, HKEX.

Ke Yan, CFA, FRM

Quiddity HK Connect SOUTHBOUND (To 27-Oct-23); Meituan & Tech IN, High Div SOEs OUT, Financials MIA

SOUTHBOUND saw net buying. Again. HK$6.9bn over four days. The oil and telecom SOEs continue to see outflows. Meituan continues to see inflows....

Travis Lundy

Li Ning (2331 HK): Bearish Thesis Playing Out

Li Ning (2331 HK) stock dropped 18% after disappointing 3Q23 operational results, with retail sales growing only mid-single-digit YoY and same...

Steve

Anta Sports (2020 HK): Bucking the Challenging Trend

Anta Sports had a solid 3Q23, with major brand sales outperforming. 4Q23 sales are expected to be even better. Acquisition of MAIA ACTIVE and...

Osbert Tang, CFA

Li Ning (2331 HK): No Positive Catalysts In Sight

The share price of Li Ning has declined by 27% in less than 2 months, while Anta's share price has remained flat. We look at if there are any...

Steve

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Hong Kong Connect Flows (October): Four Months of Inflows

We analyzed the Hong Kong Connect Scheme for October and highlight flows for Meituan, Wuxi Biologics, SMIC, Great Wall Motor, HKEX.

Ke Yan, CFA, FRM

Quiddity HK Connect SOUTHBOUND (To 27-Oct-23); Meituan & Tech IN, High Div SOEs OUT, Financials MIA

SOUTHBOUND saw net buying. Again. HK$6.9bn over four days. The oil and telecom SOEs continue to see outflows. Meituan continues to see inflows....

Travis Lundy

Li Ning (2331 HK): Bearish Thesis Playing Out

​Li Ning (2331 HK) stock dropped 18% after disappointing 3Q23 operational results, with retail sales growing only mid-single-digit YoY and same...

Steve

Anta Sports (2020 HK): Bucking the Challenging Trend

​Anta Sports had a solid 3Q23, with major brand sales outperforming. 4Q23 sales are expected to be even better. Acquisition of MAIA ACTIVE and...

Osbert Tang, CFA

Li Ning (2331 HK): No Positive Catalysts In Sight

​The share price of Li Ning has declined by 27% in less than 2 months, while Anta's share price has remained flat. We look at if there are any...

Steve

Li Ning (2331 HK) stock dropped 18% after disappointing 3Q23 operational results, with retail sales growing only mid-single-digit YoY and same...

Anta Sports had a solid 3Q23, with major brand sales outperforming. 4Q23 sales are expected to be even better. Acquisition of MAIA ACTIVE and...

The share price of Li Ning has declined by 27% in less than 2 months, while Anta's share price has remained flat. We look at if there are any...