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 Hong Kong Connect flows with our data engine for holding position as of July 12th.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We estimate the inflows to be USD 580m and highlight flows for ICBC (1398 HK).</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of July 12th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We estimate the inflows to be USD 580m and highlight flows for ICBC (1398 HK).


Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>The Toyota Group cross-holding ecosystem is in flux. They started with a small announcement by <a href="https://www.smartkarma.com/entities/aisin-corp" target="_blank" data-smartkarma-citation="entities:11809:1" rel="noopener">Aisin (7259 JP)</a> but moves have come fast and furious.</li>
<li>Apparently minorities are grumbling to the SFC about the low-balled Offer for <a href="https://www.smartkarma.com/entities/asia-cement-china-holdings" target="_blank" data-smartkarma-citation="entities:3374:1" rel="noopener">Asia Cement China (743 HK)</a>. And for good reason. The best course of action? Vote against the Scheme.</li>
<li>
<a href="https://www.smartkarma.com/entities/hanwha-corporation" target="_blank" data-smartkarma-citation="entities:10619:1" rel="noopener">Hanwha Corporation (000880 KS)</a> is trading at a steep NAV discount. And the controlling family is making  a partial Offer to gain majority control. </li>
</ul>


The Toyota Group cross-holding ecosystem is in flux. They started with a small announcement by Aisin (7259 JP) but moves have come fast and furious.
Apparently minorities are grumbling to the SFC about the low-balled Offer for Asia Cement China (743 HK). And for good reason. The best course of action? Vote against the Scheme.

Hanwha Corporation (000880 KS) is trading at a steep NAV discount. And the controlling family is making  a partial Offer to gain majority control. 


Last Week in Event SPACE: Toyota, Asia Cement, Hanwha Corp, Kokusai Electric, Keisei Electric

Blue Lotus Research Institute

Andy Fu

China growth and global non-US Internet equities

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Thematic (Sector/Industry)

<ul>
<li>Counting of consumption differs among different countries. Chinese definition of consumption (social retail sales) leave out many categories that are included in the definition of consumption of Japan and US;</li>
<li>If we trim the consumption of Japan and US by adopting China's definition, China actually over-consumes, both by GDP and by individual categories;</li>
<li>If we expand and align China, Japan and US to consist the same categories, the conclusion of China underconsumption becomes true. The categories belong to an older and wealthy society. </li>
</ul>


Counting of consumption differs among different countries. Chinese definition of consumption (social retail sales) leave out many categories that are included in the definition of consumption of Japan and US;
If we trim the consumption of Japan and US by adopting China's definition, China actually over-consumes, both by GDP and by individual categories;
If we expand and align China, Japan and US to consist the same categories, the conclusion of China underconsumption becomes true. The categories belong to an older and wealthy society. 


How to Stimulate China's Consumption? Part I

Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

News from Caixin

Cross Asset Strategy

<ul>
<li>Securities / In Depth: China’s securities firms rein in pay packets as pressures mount</li>
<li>Personnel /: Veteran diplomat appointed deputy head of Communist Party’s international liaison arm</li>
<li>Disclosure /: CSRC probes information disclosure consultancies amid tightening stock market oversight</li>
</ul>


Securities / In Depth: China’s securities firms rein in pay packets as pressures mount
Personnel /: Veteran diplomat appointed deputy head of Communist Party’s international liaison arm
Disclosure /: CSRC probes information disclosure consultancies amid tightening stock market oversight


CX Daily: China’s Securities Firms Rein In Pay Packets as Pressures Mount 

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

China Resources Beverage / Equity Capital Markets

<ul>
<li>Over 92% of CR Beverage’s revenue is from packaged drinking water products, but YoY growth this business is already below industry CAGR, raising concerns about whether future growth will stall.</li>
<li>The revenue scale/profitability of CR Beverage are far inferior to <a href="https://www.smartkarma.com/entities/nongfu-spring-co-ltd" target="_blank" data-smartkarma-citation="entities:28955:1" rel="noopener">Nongfu Spring</a>. In terms of cost control, operational efficiency and the strength of supply chain, CR Beverage is lagging behind.</li>
<li>For low-priced packaging water, the nationwide expansion is not a simple task, which will lead to significant cash outflow. Valuation of CR Beverage should be lower than that of peers. </li>
</ul>


Over 92% of CR Beverage’s revenue is from packaged drinking water products, but YoY growth this business is already below industry CAGR, raising concerns about whether future growth will stall.
The revenue scale/profitability of CR Beverage are far inferior to Nongfu Spring. In terms of cost control, operational efficiency and the strength of supply chain, CR Beverage is lagging behind.
For low-priced packaging water, the nationwide expansion is not a simple task, which will lead to significant cash outflow. Valuation of CR Beverage should be lower than that of peers. 


Pre-IPO China Resources Beverage - Here Are the Concerns and the Risks Behind

China

Nongfu Spring Co. Ltd. supplies soft drinks. The Company develops, produces, and sells bottled mineral water, fruit juice, sports drinks, and tea drinks. Nongfu Spring also offers barreled mineral water door-to-door services.

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Nongfu Spring (9633 HK)

Hong Kong Connect Flows (Jul 12th): ICBC

We analyzed southbound Hong Kong connect flows in the past week. We estimate that there were inflows of USD 580.9 million and highlight flows for...

Ke Yan, CFA, FRM

Last Week in Event SPACE: Toyota, Asia Cement, Hanwha Corp, Kokusai Electric, Keisei Electric

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

How to Stimulate China's Consumption? Part I

The myth of China underconsumption depends on how you count it. China under-consumes in certain consumption categories associated with an older and...

Blue Lotus Research Institute

CX Daily: China’s Securities Firms Rein In Pay Packets as Pressures Mount

Securities / In Depth: China’s securities firms rein in pay packets as pressures mount Personnel /: Veteran diplomat appointed deputy head of...

Caixin Global

Pre-IPO China Resources Beverage - Here Are the Concerns and the Risks Behind

CR Beverage is growing steadily but the momentum/profitability far inferior to peers. Growth rate of packaged water business is lower than the...

Xinyao (Criss) Wang

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