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$4,463.8 million, led by information technology, materials, industrials sectors.</li>
<li>We highlight flows for Midea, Moutai, Chongqing Sokon Industry Group Stock, CATL, Naura 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$4,463.8 million, led by information technology, materials, industrials sectors.
We highlight flows for Midea, Moutai, Chongqing Sokon Industry Group Stock, CATL, Naura Technology.


Northbound Flows (Mar 1st): Midea, Moutai, Chongqing Sokon Industry Group, CATL, Naura Technology

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.

Thematic (Sector/Industry)

<ul>
<li>Apple reported FY1Q24 (CY4Q23) revenue of US$119.6bn (+2% YoY) and EPS of US$2.18 (+16% YoY), which are in line and 4% above consensus, mainly due to a favourable product mix and better leverage, despite weak China sales (- 12.9% YoY) and one less week of sales compared with last year.</li>
<li>For FY2Q24E, mgmt. expected overall revenue and iPhone sales to be both US$5bn less YoY due to a high base in CY1Q23 caused by iPhone supply constraints, while the service segment revenue should increase YoY at a similar double-digit growth rate compared with the Dec quarter.</li>
<li>Given Huawei’s comeback in China and a lack of foldable phones in 2024, we believe iPhone shipments will face challenges in the near term, and Apple may focus on improving its shipment mix towards higherend Pro models. </li>
</ul>
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.


Apple reported FY1Q24 (CY4Q23) revenue of US$119.6bn (+2% YoY) and EPS of US$2.18 (+16% YoY), which are in line and 4% above consensus, mainly due to a favourable product mix and better leverage, despite weak China sales (- 12.9% YoY) and one less week of sales compared with last year.
For FY2Q24E, mgmt. expected overall revenue and iPhone sales to be both US$5bn less YoY due to a high base in CY1Q23 caused by iPhone supply constraints, while the service segment revenue should increase YoY at a similar double-digit growth rate compared with the Dec quarter.
Given Huawei’s comeback in China and a lack of foldable phones in 2024, we believe iPhone shipments will face challenges in the near term, and Apple may focus on improving its shipment mix towards higherend Pro models. 

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.

Technology - Apple FY1Q24 Beat on Better Margins and Resilient Service Revenue

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>The Quiddity Mainland Connect NORTHBOUND Monitor. Like the A/H Premium Monitor and HK Connect SOUTHBOUND Monitor. Lots of Flows/Position Tables and Charts with which to play.</li>
<li>Last week saw NORTHBOUND net SELL RMB 2.4bn of A-shares on decent average activity. </li>
<li>Renewables and <a href="https://www.smartkarma.com/entities/kweichow-moutai-co-ltd-a" target="_blank" data-smartkarma-citation="entities:1553:1" rel="noopener">Kweichow Moutai (600519 CH)</a> were the big net sells on the week.</li>
</ul>


The Quiddity Mainland Connect NORTHBOUND Monitor. Like the A/H Premium Monitor and HK Connect SOUTHBOUND Monitor. Lots of Flows/Position Tables and Charts with which to play.
Last week saw NORTHBOUND net SELL RMB 2.4bn of A-shares on decent average activity. 
Renewables and Kweichow Moutai (600519 CH) were the big net sells on the week.


Mainland Connect NORTHBOUND Flows (To 12 Jan 2024): Renewable Energy-Related Names Sold

<ul>
<li>We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of January 12th.</li>
<li>We estimate the weekly outflows to be US$374.5 million, led by financials, consumer staples, and offset by consumer discretionary, information technology, industrials.</li>
<li>We highlight northbound connect flows for Moutai and Longi Green.</li>
</ul>


We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of January 12th.
We estimate the weekly outflows to be US$374.5 million, led by financials, consumer staples, and offset by consumer discretionary, information technology, industrials.
We highlight northbound connect flows for Moutai and Longi Green.


Northbound Flows (Jan 12th): Moutai, Longi Green

Equity Bottom-Up

Luxshare Precision Industry / Equity Bottom-Up

<ul><li>Based on filings of Pegatron (iPhone OEM) on 28 Dec, Luxshare is expected to invest RMB 2.1bn for 62.5% stake of Pegatron’s iPhone assembly plant in Kunshan.</li><li>After the deal close, Luxshare will become the 2 nd largest iPhone assembler with 35%+ share after Foxconn, and Pegatron will target to reallocate resources and regional production capacity.</li><li>Despite recent macro headwinds and iPhone’s pressure from Huawei’s comeback, we believe Luxshare is wellpositioned for further share gain across Apple’s iPhone/ Watch /AirPods/Vision Pro supply chain in FY24/25E. </li></ul>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.

Based on filings of Pegatron (iPhone OEM) on 28 Dec, Luxshare is expected to invest RMB 2.1bn for 62.5% stake of Pegatron’s iPhone assembly plant in Kunshan.After the deal close, Luxshare will become the 2 nd largest iPhone assembler with 35%+ share after Foxconn, and Pegatron will target to reallocate resources and regional production capacity.Despite recent macro headwinds and iPhone’s pressure from Huawei’s comeback, we believe Luxshare is wellpositioned for further share gain across Apple’s iPhone/ Watch /AirPods/Vision Pro supply chain in FY24/25E. 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.

Luxshare – Acquisition of Pegatron’s Kunshan Plant to Further Boost IPhone Assembly Share Gain

China

Luxshare Precision Industry Co., Ltd. researches, manufactures and sells connectors. The Company's products are widely used in computers, communication devices, consumer electronics products and automobiles.

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Luxshare Precision Industry (002475 CH)

Northbound Flows (Mar 1st): Midea, Moutai, Chongqing Sokon Industry Group, CATL, Naura Technology

We analyzed northbound Shanghai/Shenzhen connect flows in the past week and highlight flows for Midea, Moutai, Chongqing Sokon Industry Group,...

Ke Yan, CFA, FRM

Technology - Apple FY1Q24 Beat on Better Margins and Resilient Service Revenue

Apple reported FY1Q24 (CY4Q23) revenue of US$119.6bn (+2% YoY) and EPS of US$2.18 (+16% YoY), which are in line and 4% above consensus

CMB International

Northbound Flows (Jan 12th): Moutai, Longi Green

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

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Northbound Flows (Mar 1st): Midea, Moutai, Chongqing Sokon Industry Group, CATL, Naura Technology

We analyzed northbound Shanghai/Shenzhen connect flows in the past week and highlight flows for Midea, Moutai, Chongqing Sokon Industry Group,...

Ke Yan, CFA, FRM

Technology - Apple FY1Q24 Beat on Better Margins and Resilient Service Revenue

Apple reported FY1Q24 (CY4Q23) revenue of US$119.6bn (+2% YoY) and EPS of US$2.18 (+16% YoY), which are in line and 4% above consensus

CMB International

Mainland Connect NORTHBOUND Flows (To 12 Jan 2024): Renewable Energy-Related Names Sold

NORTHBOUND saw net selling. Again. This past week it was Kweichow Moutai tops and then a host of renewables names following.

Travis Lundy

Northbound Flows (Jan 12th): Moutai, Longi Green

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

Ke Yan, CFA, FRM

Luxshare – Acquisition of Pegatron’s Kunshan Plant to Further Boost IPhone Assembly Share Gain

Based on filings of Pegatron (iPhone OEM) on 28 Dec, Luxshare is expected to invest RMB 2.1bn for 62.5% stake of Pegatron’s iPhone assembly plant...

CMB International