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

Belle Fashion Group / Equity Capital Markets

<ul>
<li>Belle Fashion (BF) aims to raise up to US$1bn in its Hong Kong listing. The company recently refiled its application proof after a gap of two years.</li>
<li>As per F&amp;S, it was the largest player in China’s fashion footwear market with a 12.3% market share, based on 2022 retail sales.</li>
<li>We have looked at the company’s past performance based on its earlier filings in 2022. In this note, we talk about the updates from its recent filings.</li>
</ul>


Belle Fashion (BF) aims to raise up to US$1bn in its Hong Kong listing. The company recently refiled its application proof after a gap of two years.
As per F&amp;S, it was the largest player in China’s fashion footwear market with a 12.3% market share, based on 2022 retail sales.
We have looked at the company’s past performance based on its earlier filings in 2022. In this note, we talk about the updates from its recent filings.


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.

Equity Bottom-Up

<ul><li>4Q results were a beat to us and consensus, with the quarter’s net revenue expanding by cFX +18.1%.</li><li>The strength was mainly driven by 82% growth in Miu Miu (vs CMBIe 50%+).</li><li>All regions marked robust growth, especially Japan (cFX +38%) and APAC (cFX +32%), when the US continued to record sequential improvement as we had expected. </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.

4Q results were a beat to us and consensus, with the quarter’s net revenue expanding by cFX +18.1%.The strength was mainly driven by 82% growth in Miu Miu (vs CMBIe 50%+).All regions marked robust growth, especially Japan (cFX +38%) and APAC (cFX +32%), when the US continued to record sequential improvement as we had expected. 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.

Prada SpA (1913 HK) - 4Q23 CFX Revenue +18%; Miu Miu Overshot

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

Event-Driven

<ul>
<li>At 82 index constituents currently, we expect the index committee to progress towards reaching 100 constituents. We are (highly) unlikely to reach the target this calendar year though.</li>
<li>We highlight nine stocks that have a decent chance at being added to the index over the next couple of rebalances. All companies are profitable and meet inclusion requirements.</li>
<li>The market consultation on proposed changes to the Hang Seng Industry Classification System (HSICS) could lead to more inclusions from the Information Technology sector from the June rebalance.</li>
</ul>


At 82 index constituents currently, we expect the index committee to progress towards reaching 100 constituents. We are (highly) unlikely to reach the target this calendar year though.
We highlight nine stocks that have a decent chance at being added to the index over the next couple of rebalances. All companies are profitable and meet inclusion requirements.
The market consultation on proposed changes to the Hang Seng Industry Classification System (HSICS) could lead to more inclusions from the Information Technology sector from the June rebalance.


Hang Seng Index (HSI) Rebalance Preview: Inclusion Candidates for March

Equity Long-Short

Mo Aziz

China Tourism Group Duty Free Corp Ltd / Equity Bottom-Up

China Tourism Group Duty Free Corp Ltd (601888 CH)

<ul>
<li>European luxury goods maker enjoyed its best week in the past 52 weeks, spurred by better-than-expected results by LVMH, the industry leader and widely viewed as the bellwether  </li>
<li>China's market was cited as resilient and very strong in certain categories, defying the general market perception that Chinese demand is soft</li>
<li>The key European luxury goods share price has risen by an average of 8.2% YTD, China Tourism Group share price performance has lagged. Good buying opportunity    </li>
</ul>


European luxury goods maker enjoyed its best week in the past 52 weeks, spurred by better-than-expected results by LVMH, the industry leader and widely viewed as the bellwether  
China's market was cited as resilient and very strong in certain categories, defying the general market perception that Chinese demand is soft
The key European luxury goods share price has risen by an average of 8.2% YTD, China Tourism Group share price performance has lagged. Good buying opportunity    


LVMH & Richemont Said Chinese Demand for Luxury Goods Is Strong; POSITIVE for China Tourism Group

<ul><li>We envisage that Prada will deliver another solid quarter with 12% cFX Group sales growth to EUR1.3bn, thanks to comparable growth in the retail segment, which, in our view, will regain its momentum by lapping on a sequentially easier comp of the quarter.</li><li>By region, Asia again is a major driver with cFX 20%+ growth supported by China’s recovering outbound tourism.</li><li>The same should also benefit Japan, which simultaneously enjoys tailwind from a favourable currency and sets to deliver cFX 35% sales growth. </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.

We envisage that Prada will deliver another solid quarter with 12% cFX Group sales growth to EUR1.3bn, thanks to comparable growth in the retail segment, which, in our view, will regain its momentum by lapping on a sequentially easier comp of the quarter.By region, Asia again is a major driver with cFX 20%+ growth supported by China’s recovering outbound tourism.The same should also benefit Japan, which simultaneously enjoys tailwind from a favourable currency and sets to deliver cFX 35% sales growth. 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.

Prada SpA (1913 HK) – 4Q Preview: CFX/Reported Sales +12.1%/6.4%

Italy

Prada designs, manufactures, and distributes luxury goods, including leather goods, footwear, ready-to-wear apparel, and accessories under brands like Prada, Miu Miu, Church's, Car Shoe, and Marchesi 1824. The company also operates in the eyewear and fragrance sectors through licensing agreements. Prada S.p.A. was founded in 1913 in Milan, Italy.

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Prada (1913 HK)

Belle Fashion Pre-IPO - Refiling Updates

Belle Fashion (BF) aims to raise up to US$1bn in its Hong Kong listing. The company recently refiled its application proof after a gap of two years.

Sumeet Singh

Prada SpA (1913 HK) - 4Q23 CFX Revenue +18%; Miu Miu Overshot

All regions marked robust growth, especially Japan (cFX +38%) and APAC (cFX +32%), when the US continued to record sequential improvement as we had...

CMB International

Hang Seng Index (HSI) Rebalance Preview: Inclusion Candidates for March

The announcement of the inclusions to the HSI at the March rebalance will be made post market close today. Most stocks are trading lower which is...

Brian Freitas

LVMH & Richemont Said Chinese Demand for Luxury Goods Is Strong; POSITIVE for China Tourism Group

European luxury goods producers performing well and attributed to Chinese consumers. China Tourism Group is the primary beneficiary of Chinese...

Mo Aziz

Prada SpA (1913 HK) – 4Q Preview: CFX/Reported Sales +12.1%/6.4%

We envisage that Prada will deliver another solid quarter with 12% cFX Group sales growth to EUR1.3bn, thanks to comparable growth in the retail...

CMB International

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Belle Fashion Pre-IPO - Refiling Updates

Belle Fashion (BF) aims to raise up to US$1bn in its Hong Kong listing. The company recently refiled its application proof after a gap of two years.

Sumeet Singh

Prada SpA (1913 HK) - 4Q23 CFX Revenue +18%; Miu Miu Overshot

All regions marked robust growth, especially Japan (cFX +38%) and APAC (cFX +32%), when the US continued to record sequential improvement as we had...

CMB International

Hang Seng Index (HSI) Rebalance Preview: Inclusion Candidates for March

The announcement of the inclusions to the HSI at the March rebalance will be made post market close today. Most stocks are trading lower which is...

Brian Freitas

LVMH & Richemont Said Chinese Demand for Luxury Goods Is Strong; POSITIVE for China Tourism Group

​European luxury goods producers performing well and attributed to Chinese consumers. China Tourism Group is the primary beneficiary of Chinese...

Mo Aziz

Prada SpA (1913 HK) – 4Q Preview: CFX/Reported Sales +12.1%/6.4%

We envisage that Prada will deliver another solid quarter with 12% cFX Group sales growth to EUR1.3bn, thanks to comparable growth in the retail...

CMB International

European luxury goods producers performing well and attributed to Chinese consumers. China Tourism Group is the primary beneficiary of Chinese...