Asia Ex-J Consumer/ Transport analyst

Valerie Law, CFA

Thematic (Sector/Industry)

<p>This is the 16<sup>th</sup> issue of 'The Week that Was in Greater China@Smartkarma' which covers the week of August 27 – Sep 2 and features a selection of the week's insights on China, Macau, Hong Kong and Taiwan. This is a collaborative report compiled by <a href="https://www.smartkarma.com/profiles/820" target="_blank">Scott Laprise/ 乐天虎</a>, <a href="https://www.smartkarma.com/profiles/803" target="_blank">Valerie Law, CFA</a>, <a href="https://www.smartkarma.com/profiles/9" target="_blank">Ke Yan, CFA, FRM</a>, and <a href="https://www.smartkarma.com/profiles/605" target="_blank" data-smartkarma-citation="accounts:605">Daniel Hellberg</a> on a rotating basis. Please let us know if you would like to be included in this collaborative effort.</p>

This is the 16th issue of 'The Week that Was in Greater China@Smartkarma' which covers the week of August 27 – Sep 2 and features a selection of the week's insights on China, Macau, Hong Kong and Taiwan. This is a collaborative report compiled by Scott Laprise/ 乐天虎, Valerie Law, CFA, Ke Yan, CFA, FRM, and Daniel Hellberg on a rotating basis. Please let us know if you would like to be included in this collaborative effort.

The Week that Was in Greater China@Smartkarma: Storm, Steel, and Stocks at a Steal

<p>Four education companies that were listed between January to April this year announced that they have been included in several Hang Seng family of indices (see table below). These stocks rose between 2.5% to 6.2% intraday.</p><ul>
<li>The significance is not so much their inclusion within Hang Seng indices, but the fact that these stocks are selected means that they are HK-connect eligible (ie. becoming eligible for south-bound monies). </li>
<li>For example, <a href="https://www.smartkarma.com/entities/23624" target="_blank" data-smartkarma-citation="entities:23624:1">Minsheng Education Group (1569 HK)</a> (MSE) is mainly owned by…</li>
</ul>

Four education companies that were listed between January to April this year announced that they have been included in several Hang Seng family of indices (see table below). These stocks rose between 2.5% to 6.2% intraday.
The significance is not so much their inclusion within Hang Seng indices, but the fact that these stocks are selected means that they are HK-connect eligible (ie. becoming eligible for south-bound monies). 
For example, Minsheng Education Group (1569 HK) (MSE) is mainly owned by…


Inclusion in Hang Seng Family of Indexes Boosts Newly-Listed Education Stocks – Top Pick 2001 HK

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

Minsheng Education Group / Equity Bottom-Up

<ul>
<li>Minsheng Education (1569 HK) is a highly undervalued Chinese education stock with high dividend yields. Market cap of the company has declined by nearly 90% from Jun 2018 to today. </li>
<li>Minsheng Education's dividend yield averaged 5.1% from 2020 to 2022. Estimated dividend yield is 14.6% in 2023.   </li>
<li>Minsheng Education mainly provides educational services in China. The company is one of the leaders of China's private higher education industry.</li>
</ul>


Minsheng Education (1569 HK) is a highly undervalued Chinese education stock with high dividend yields. Market cap of the company has declined by nearly 90% from Jun 2018 to today. 
Minsheng Education's dividend yield averaged 5.1% from 2020 to 2022. Estimated dividend yield is 14.6% in 2023.   
Minsheng Education mainly provides educational services in China. The company is one of the leaders of China's private higher education industry.


APAC IPOs & Placements

Zhen Zhou, Toh

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.

Equity Capital Markets

Zhihu Technology / Equity Capital Markets

<div><p><a href="https://www.smartkarma.com/entities/zhihu-technology-ltd" target="_blank" data-smartkarma-citation="entities:32185:1" rel="noopener">Zhihu Technology (ZH US)</a> raised US$773m at the bottom-end of the IPO price range (including the US$250m concurrent placement).</p></div><div><p>In this note, we will discuss what is circulating in the market and share our thoughts on how it impacts Zhihu.</p></div><div><p>Our previous coverage of Zhihu:</p></div><div><ul style="list-style-type: disc;">
<li>
<a href="https://www.smartkarma.com/insights/zhihu-pre-ipo-in-the-early-stages-of-monetization" target="_blank" data-smartkarma-citation="insights:49157" rel="noopener">Zhihu (知乎) Pre-IPO - In the Early Stages of Monetization</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/zhihu-censorship-as-top-risk-may-follow-fate-of-weibo" target="_blank" data-smartkarma-citation="insights:49184" rel="noopener">Zhihu (知乎): Censorship as Top Risk, May Follow Fate of Weibo</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/zhihu-ipo-monetizing-curiosity" target="_blank" data-smartkarma-citation="insights:49467" rel="noopener">Zhihu (知乎) IPO - Monetizing Curiosity</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/zhihu-ipo-trading-peers-have-corrected-significantly-but-still-has-a-modest-upside" target="_blank" data-smartkarma-citation="insights:49684" rel="noopener">Zhihu (知乎) IPO Trading - Peers Have Corrected Significantly but Still Has a Modest Upside</a> </li>
</ul></div>

Zhihu Technology (ZH US) raised US$773m at the bottom-end of the IPO price range (including the US$250m concurrent placement).In this note, we will discuss what is circulating in the market and share our thoughts on how it impacts Zhihu.Our previous coverage of Zhihu:

Zhihu (知乎) Pre-IPO - In the Early Stages of Monetization 

Zhihu (知乎): Censorship as Top Risk, May Follow Fate of Weibo 

Zhihu (知乎) IPO - Monetizing Curiosity 

Zhihu (知乎) IPO Trading - Peers Have Corrected Significantly but Still Has a Modest Upside 


Zhihu (知乎) IPO Trading Update - Peers Took Another Leg Down on the Back of Rumored Document

Quality-first, Business-perspective, Long-term, Urbem (HK) Limited

Urbem Capital

Quality-first, Business-perspective, Long-term

China Maple Leaf Educational Systems / Equity Bottom-Up

China Maple Leaf Educational Systems (1317 HK)

<ul class="">
<li>Maple Leaf Educational Systems caught our attention for its low price multiples and consistently decent returns on capital;</li>
<li>Both the financial track record and the current valuation look favorable, especially compared to peers.</li>
<li>We examine the business fundamentals with our proprietary framework in search of any value trap.</li>
</ul>


Maple Leaf Educational Systems caught our attention for its low price multiples and consistently decent returns on capital;
Both the financial track record and the current valuation look favorable, especially compared to peers.
We examine the business fundamentals with our proprietary framework in search of any value trap.


Maple Leaf Educational Systems: Deep Value or Value Trap?

China

Minsheng Education Group is an investment holding company that provides educational services in the People's Republic of China, operating through its On-campus Education and Online Education segments. The company offers higher academic continuing education, vocational education, and international education services, managing several colleges and vocational schools. It was founded in 1998 and is headquartered in Beijing, China.

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Minsheng Education Group (1569 HK)

The Week that Was in Greater China@Smartkarma: Storm, Steel, and Stocks at a Steal

This is the 16th issue of 'The Week that Was in Greater China@Smartkarma' which covers the week of August 27 – Sep 2 and features a selection...

Valerie Law, CFA

Inclusion in Hang Seng Family of Indexes Boosts Newly-Listed Education Stocks – Top Pick 2001 HK

Four education companies that were listed between January to April this year announced that they have been included in several Hang Seng family of...

Valerie Law, CFA

Asian Dividend Gems: Minsheng Education

Minsheng Education (1569 HK) is a highly undervalued Chinese private education stock with high dividend yields. Market cap of the company has...

Douglas Kim

Zhihu (知乎) IPO Trading Update - Peers Took Another Leg Down on the Back of Rumored Document

We think the drop is overdone. Sure, Zhihu is sort of an educational website but it is nowhere close to what the techedu companies are doing.

Zhen Zhou, Toh

Maple Leaf Educational Systems: Deep Value or Value Trap?

With an all-time-low valuation and decent financial track records, does Maple Leaf Educational Systems offers a long-term alpha opportunity?

Urbem Capital

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