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 analyse the changes of A-H premium on 157 stocks over the last week. The average A-H premium was 57.0% as of Sep 19th.</li>
<li>The average A-H premium changed by -0.8ppt week-on-week, led by industrials, energy, health care and offset by real estate, consumer staples, utilities.</li>
<li>We highlight weekly changes in A-H premium for Zmj, Yankuang Energy, Liaoning Port, Haier Smart Home, Qingdao Port, China Minsheng Banking.</li>
</ul>


We analyse the changes of A-H premium on 157 stocks over the last week. The average A-H premium was 57.0% as of Sep 19th.
The average A-H premium changed by -0.8ppt week-on-week, led by industrials, energy, health care and offset by real estate, consumer staples, utilities.
We highlight weekly changes in A-H premium for Zmj, Yankuang Energy, Liaoning Port, Haier Smart Home, Qingdao Port, China Minsheng Banking.


A-H Premium Weekly (Sep 19th): Zmj, Yankuang Energy, Liaoning Port, Haier Smart Home, Qingdao Port

<ul>
<li>We analyse the changes of A-H premium on 157 stocks over the last week. The average A-H premium was 57.8% as of Sep 12th.</li>
<li>The average A-H premium changed by -2.5ppt week-on-week, led by information technology, consumer staples, financials and offset by consumer discretionary.</li>
<li>We highlight weekly changes in A-H premium for China Longyuan Power, Fudan Microelectronics, Zijin Mining, CSSC O&amp;M Engineering, Baiyunshan Pharma, SMIC.</li>
</ul>


We analyse the changes of A-H premium on 157 stocks over the last week. The average A-H premium was 57.8% as of Sep 12th.
The average A-H premium changed by -2.5ppt week-on-week, led by information technology, consumer staples, financials and offset by consumer discretionary.
We highlight weekly changes in A-H premium for China Longyuan Power, Fudan Microelectronics, Zijin Mining, CSSC O&amp;M Engineering, Baiyunshan Pharma, SMIC.


A-H Premium Weekly (Sep 12th): China Longyuan Power, Fudan Microelectronics, Zijin Mining

<ul>
<li>We analyse the changes of A-H premium on 157 stocks over the last week. The average A-H premium was 60.1% as of Sep 5th.</li>
<li>The average A-H premium changed by -0.9ppt week-on-week, led by utilities, energy, health care and offset by real estate, consumer discretionary.</li>
<li>We highlight weekly changes in A-H premium for China Zheshang Bank, China Communications Construction, Goldwind, Weichai Power.</li>
</ul>


We analyse the changes of A-H premium on 157 stocks over the last week. The average A-H premium was 60.1% as of Sep 5th.
The average A-H premium changed by -0.9ppt week-on-week, led by utilities, energy, health care and offset by real estate, consumer discretionary.
We highlight weekly changes in A-H premium for China Zheshang Bank, China Communications Construction, Goldwind, Weichai Power.


A-H Premium Weekly (Sep 5th): China Zheshang Bank, China Communications Construction, Goldwind

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

<ul>
<li>AUX mainly relies on low-price strategy to compete in the industry and has maintained robust growth in revenue/net profit.However, there's already a significant gap in scale compared with leading peers</li>
<li>Due to higher growth, AUX’s valuation could be higher than that of Midea and Gree. However, due to risks such as high debt and weak R&amp;D, valuation premium is limited.</li>
<li>A high valuation (e.g. P/E &gt;15x) can be justified only if the transition to a technology-driven value model can be completed before the cash flow of low-price model dries up.</li>
</ul>


AUX mainly relies on low-price strategy to compete in the industry and has maintained robust growth in revenue/net profit.However, there's already a significant gap in scale compared with leading peers
Due to higher growth, AUX’s valuation could be higher than that of Midea and Gree. However, due to risks such as high debt and weak R&amp;D, valuation premium is limited.
A high valuation (e.g. P/E &gt;15x) can be justified only if the transition to a technology-driven value model can be completed before the cash flow of low-price model dries up.


Pre-IPO Aux Electric Co (PHIP Updates) - Concerns About Business Model and Valuation Outlook

APAC IPOs & Placements, Aequitas Research

Nicholas Tan

APAC IPOs & Placements

<ul>
<li>
<a href="https://www.smartkarma.com/entities/aux-electric-co-ltd" target="_blank" data-smartkarma-citation="entities:45549:1" rel="noopener">Aux Electric (2580 HK)</a>  raised around US$532m in its Hong Kong IPO.</li>
<li>It is one of the global top five air conditioner providers. </li>
<li>We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.</li>
</ul>



Aux Electric (2580 HK)  raised around US$532m in its Hong Kong IPO.
It is one of the global top five air conditioner providers. 
We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.


Aux Electric IPO Trading: Decent Insti Demand; Is Cheap

China

Midea Group Co., Ltd. manufactures and distributes home appliances. The Company produces water heaters, air conditioners, ventilation equipment, and consumer appliances. Midea Group also develops robotics and automation systems.

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Midea Group (300 HK)

A-H Premium Weekly (Sep 19th): Zmj, Yankuang Energy, Liaoning Port, Haier Smart Home, Qingdao Port

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Zmj, Yankuang Energy, Liaoning Port, Haier Smart Home,...

Ke Yan, CFA, FRM

A-H Premium Weekly (Sep 12th): China Longyuan Power, Fudan Microelectronics, Zijin Mining

We analyzed A-H premium changes in the past week and highlight A-H premium changes for China Longyuan Power, Fudan Microelectronics, Zijin Mining,...

Ke Yan, CFA, FRM

A-H Premium Weekly (Sep 5th): China Zheshang Bank, China Communications Construction, Goldwind

We analyzed A-H premium changes in the past week and highlight A-H premium changes for China Zheshang Bank, China Communications Construction,...

Ke Yan, CFA, FRM

Pre-IPO Aux Electric Co (PHIP Updates) - Concerns About Business Model and Valuation Outlook

AUX's IPO debut revealed market concerns about its fundamentals, such as above 80% asset liability ratio, weak R&D capabilities/shortcomings in...

Xinyao (Criss) Wang

Aux Electric IPO Trading: Decent Insti Demand; Is Cheap

Aux Electric raised around US$532m in its Hong Kong IPO. In this note, we will talk about the demand and trading dynamics.

Nicholas Tan

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)