Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

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

Foshan Haitian Flavouring & Food / Equity Capital Markets

Foshan Haitian Flavouring & Food (603288 CH)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/foshan-haitian-flavouring-food-co-ltd" target="_blank" data-smartkarma-citation="entities:15577:1" rel="noopener">Foshan Haitian Flavouring &amp; Food (603288 CH)</a> (FHCC), China’s leading condiments company, now aims to raise around US$1bn in its H-share listing.</li>
<li>FHCC is China’s leading condiments company within its main product categories of soy sauce, oyster sauce, flavored sauce, specialty condiment products and other products.</li>
<li>We have looked at the past performance in our earlier note. In this note we talk about the PHIP updates and likely A/H premium.</li>
</ul>



Foshan Haitian Flavouring &amp; Food (603288 CH) (FHCC), China’s leading condiments company, now aims to raise around US$1bn in its H-share listing.
FHCC is China’s leading condiments company within its main product categories of soy sauce, oyster sauce, flavored sauce, specialty condiment products and other products.
We have looked at the past performance in our earlier note. In this note we talk about the PHIP updates and likely A/H premium.


Foshan Haitian Flavouring A/H Listing - PHIP Updates and Thoughts on A/H Premium

<ul>
<li>
<a href="https://www.smartkarma.com/entities/foshan-haitian-flavouring-food-co-ltd" target="_blank" data-smartkarma-citation="entities:15577:1" rel="noopener">Foshan Haitian Flavouring &amp; Food (603288 CH)</a> (FHCC), China’s leading condiments company, aims to raise around US$1.5bn in its H-share listing.</li>
<li>FHCC is China’s leading condiments company within its main product categories of soy sauce, oyster sauce, flavored sauce, specialty condiment products and other products.</li>
<li>In this note, we look at its past performance and other deal dynamics that might impact the listing.</li>
</ul>



Foshan Haitian Flavouring &amp; Food (603288 CH) (FHCC), China’s leading condiments company, aims to raise around US$1.5bn in its H-share listing.
FHCC is China’s leading condiments company within its main product categories of soy sauce, oyster sauce, flavored sauce, specialty condiment products and other products.
In this note, we look at its past performance and other deal dynamics that might impact the listing.


Foshan Haitian Flavouring A/H Listing - Strong Brand but Sales Have Been Slowing Down

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>As expected, <a href="https://www.smartkarma.com/entities/bloks-group-limited" target="_blank" data-smartkarma-citation="entities:43648:1" rel="noopener">Bloks Group (325 HK)</a>, <a href="https://www.smartkarma.com/entities/guming-holdings-limited" target="_blank" data-smartkarma-citation="entities:40622:1" rel="noopener">Guming Holdings (1364 HK)</a> and <a href="https://www.smartkarma.com/entities/mixue-group" target="_blank" data-smartkarma-citation="entities:40623:1" rel="noopener">Mixue Group (2097 HK)</a> will be added to the Hang Seng Composite Index (HSCI) in June.</li>
<li>The HSCI inclusion will result in the stocks being added to Southbound Stock Connect from the open of trading on 9 June and that could result in sizeable inflows.</li>
<li>Use stock price spikes to trim positions in <a href="https://www.smartkarma.com/entities/bloks-group-limited" target="_blank" data-smartkarma-citation="entities:43648:1" rel="noopener">Bloks Group (325 HK)</a> ahead of lock-up expiry in July, and in <a href="https://www.smartkarma.com/entities/guming-holdings-limited" target="_blank" data-smartkarma-citation="entities:40622:1" rel="noopener">Guming Holdings (1364 HK)</a> ahead of lock-up expiry in August.</li>
</ul>


As expected, Bloks Group (325 HK), Guming Holdings (1364 HK) and Mixue Group (2097 HK) will be added to the Hang Seng Composite Index (HSCI) in June.
The HSCI inclusion will result in the stocks being added to Southbound Stock Connect from the open of trading on 9 June and that could result in sizeable inflows.
Use stock price spikes to trim positions in Bloks Group (325 HK) ahead of lock-up expiry in July, and in Guming Holdings (1364 HK) ahead of lock-up expiry in August.


HSCI Index Rebalance: Bloks (325 HK), Guming (1364 HK) & MIXUE (2097 HK) Added

A Value Investing Journal, Acid Investments

Acid Investments

A Value Investing Journal

I love stonks and I love rambling. Sometimes, I feel it unfair to subject those around me with the inundation of my thoughts, so I tweet and I spill ink on here. Jokes aside, I love investing and edgy ideas; I hope to become a better investor and this is my journal to that end. I will be sharing value/special situations I come across organically or through other blogs/13F and I hope to provide a variant analytical view to said situations. I hope to receive constructive feedback and let’s grab some of dem benjamins together!

Equity Bottom-Up

<ul><li>Last week, I wrote a quick article flagging the seemingly absurd valuation discrepancy of Chagee vis-a-vis beverage peers on the HK stock exchange i.e. Mixue and Guming, as well as Luckin Coffee on the OTC markets.</li><li>Chagee currently trades around ~31 (doing extremely poorly on a good day), and at the bottom of its recent trading range; there is no analyst coverage and the firm has yet to report its Q1 25 results so it’s just really stuck in no-man’s land.</li><li>I postulated then that delisting risk was an overhang on Chagee, a Chinese ADR, but lo and behold, it appears that the market has shrugged off a large portion of it for the large cap Chinese tech companies.</li></ul>

Last week, I wrote a quick article flagging the seemingly absurd valuation discrepancy of Chagee vis-a-vis beverage peers on the HK stock exchange i.e. Mixue and Guming, as well as Luckin Coffee on the OTC markets.Chagee currently trades around ~31 (doing extremely poorly on a good day), and at the bottom of its recent trading range; there is no analyst coverage and the firm has yet to report its Q1 25 results so it’s just really stuck in no-man’s land.I postulated then that delisting risk was an overhang on Chagee, a Chinese ADR, but lo and behold, it appears that the market has shrugged off a large portion of it for the large cap Chinese tech companies.

Part 2: What Could Go Wrong at Chagee (CHA)

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>The core reason for the success of Chagee lies in the Company finding an effective "shortcut" of business model – “minimalism”, but this model does not imply a high moat.</li>
<li>A likely situation is Chagee's future growth in domestic market would be limited, and the overseas expansion could be unsatisfactory.So, we recommend investors to be cautious about the valuation prospects.</li>
<li>If domestic competition intensifies or overseas expansion falls short of expectations, it is highly likely that the stock price will fall back to the range of US$25-30/share or even lower.</li>
</ul>


The core reason for the success of Chagee lies in the Company finding an effective "shortcut" of business model – “minimalism”, but this model does not imply a high moat.
A likely situation is Chagee's future growth in domestic market would be limited, and the overseas expansion could be unsatisfactory.So, we recommend investors to be cautious about the valuation prospects.
If domestic competition intensifies or overseas expansion falls short of expectations, it is highly likely that the stock price will fall back to the range of US$25-30/share or even lower.


Chagee Holdings - Debut Is the Peak, and Then It Wanes?

China

MIXUE Group is a leading company specializing in the development, production, and franchise operation of freshly-made ice cream and tea beverages, including fruit drinks and coffee, under its Mixue and Lucky Cup brands. The company also supplies ingredients, packaging materials, and equipment to its extensive franchisee network. MIXUE Group was founded in 1997 and is headquartered in Zhengzhou, China.

Price Gauge
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MIXUE (2097 HK)

Foshan Haitian Flavouring A/H Listing - PHIP Updates and Thoughts on A/H Premium

Foshan Haitian Flavouring & Food (603288 CH), China’s leading condiments company, now aims to raise around US$1bn in its H-share listing. In this...

Sumeet Singh

Foshan Haitian Flavouring A/H Listing - Strong Brand but Sales Have Been Slowing Down

Foshan Haitian flavouring is now said to be looking to raise around US$1bn in its H-share listing. We had looked at it past performance earlier and...

Sumeet Singh

HSCI Index Rebalance: Bloks (325 HK), Guming (1364 HK) & MIXUE (2097 HK) Added

Bloks, Guming and MIXUE will be added to the HSCI on 6 June and then to Southbound Stock Connect from the open on 9 June. Use stock price jumps to...

Brian Freitas

Part 2: What Could Go Wrong at Chagee (CHA)

Chagee currently trades around ~31 (doing extremely poorly on a good day), and at the bottom of its recent trading range; there is no analyst...

Acid Investments

Chagee Holdings - Debut Is the Peak, and Then It Wanes?

Chagee's success is attributed to a minimalist business model, but caution is advised for investors due to limited growth potential/uncertain...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Foshan Haitian Flavouring A/H Listing - PHIP Updates and Thoughts on A/H Premium

Foshan Haitian Flavouring & Food (603288 CH), China’s leading condiments company, now aims to raise around US$1bn in its H-share listing. In this...

Sumeet Singh

Foshan Haitian Flavouring A/H Listing - Strong Brand but Sales Have Been Slowing Down

Foshan Haitian flavouring is now said to be looking to raise around US$1bn in its H-share listing. We had looked at it past performance earlier and...

Sumeet Singh

HSCI Index Rebalance: Bloks (325 HK), Guming (1364 HK) & MIXUE (2097 HK) Added

Bloks, Guming and MIXUE will be added to the HSCI on 6 June and then to Southbound Stock Connect from the open on 9 June. Use stock price jumps to...

Brian Freitas

Part 2: What Could Go Wrong at Chagee (CHA)

Chagee currently trades around ~31 (doing extremely poorly on a good day), and at the bottom of its recent trading range; there is no analyst...

Acid Investments

Chagee Holdings - Debut Is the Peak, and Then It Wanes?

​Chagee's success is attributed to a minimalist business model, but caution is advised for investors due to limited growth potential/uncertain...

Xinyao (Criss) Wang

Chagee's success is attributed to a minimalist business model, but caution is advised for investors due to limited growth potential/uncertain...