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

China Merchants Energy A / Index Rebalance

<ul>
<li>There are 9 changes for the <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-index" target="_blank" data-smartkarma-citation="entities:22906:1" rel="noopener">Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX)</a> at the upcoming rebalance that will be implemented at the close of trading on 9 June.</li>
<li>While nearly all the changes are in line with forecasts, there are some stocks that have not been added or deleted as the index committee has used discretion.</li>
<li>The Energy sector is the biggest gainer in terms of index spots, while the Consumer Discretionary and Health Care sectors lose two index spots each.</li>
</ul>


There are 9 changes for the Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX) at the upcoming rebalance that will be implemented at the close of trading on 9 June.
While nearly all the changes are in line with forecasts, there are some stocks that have not been added or deleted as the index committee has used discretion.
The Energy sector is the biggest gainer in terms of index spots, while the Consumer Discretionary and Health Care sectors lose two index spots each.


CSI300 Index Rebalance: 9 Changes as Discretion Used

APAC IPOs & Placements, Aequitas Research

Ethan Aw

APAC 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

<ul>
<li>
<a href="https://www.smartkarma.com/entities/adicon-holdings-limited" target="_blank" data-smartkarma-citation="entities:33786:1" rel="noopener">ADICON Holdings Limited (ADI HK)</a>  is looking to raise about US$400m in its upcoming HK IPO. </li>
<li>Adicon Holdings is one of the top three independent clinical laboratory (ICL) service providers in China in terms of total revenue during the Track Record Period, according to F&amp;S.</li>
<li>In this note, we talk about our thoughts on valuation. </li>
</ul>



ADICON Holdings Limited (ADI HK)  is looking to raise about US$400m in its upcoming HK IPO. 
Adicon Holdings is one of the top three independent clinical laboratory (ICL) service providers in China in terms of total revenue during the Track Record Period, according to F&amp;S.
In this note, we talk about our thoughts on valuation. 


Adicon Holdings Pre-IPO - Thoughts on Valuation

Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sinopharm-group-co-ltd-h" target="_blank" data-smartkarma-citation="entities:32:1" rel="noopener">Sinopharm Group Co Ltd H (1099 HK)</a> reported strong 2022 results, with annual revenue exceeding RMB550B and net profit achieving 10% YoY growth. Growth was driven by pharmaceutical distribution business.</li>
<li>EPS increased 10% YoY to RMB2.73, ahead of consensus of RMB2.64. The company has increased its final dividend to RMB0.82 per share from RMB0.75 per share in the prior year.</li>
<li>With favorable industry tailwind and China reopening, consensus expects Sinopharm to report double-digit revenue and EPS growth through 2025.</li>
</ul>



Sinopharm Group Co Ltd H (1099 HK) reported strong 2022 results, with annual revenue exceeding RMB550B and net profit achieving 10% YoY growth. Growth was driven by pharmaceutical distribution business.
EPS increased 10% YoY to RMB2.73, ahead of consensus of RMB2.64. The company has increased its final dividend to RMB0.82 per share from RMB0.75 per share in the prior year.
With favorable industry tailwind and China reopening, consensus expects Sinopharm to report double-digit revenue and EPS growth through 2025.


Sinopharm Group (1099 HK): Strong 2022 Results; Double-Digit Top and Bottom-Line Growth to Continue

<ul>
<li>Over 85% of the way through the review period, we see 14 potential index changes at the June rebalance that will be implemented at the close on 9 June.</li>
<li>We estimate a one-way turnover of 2.28% at the June rebalance leading to a one-way trade of CNY 5.95bn.</li>
<li>The potential adds have outperformed the <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-index" target="_blank" data-smartkarma-citation="entities:22906:1" rel="noopener">CSI 300 Index</a> over the last two months but have underperformed the potential deletes. The gap has been narrowing recently.</li>
</ul>


Over 85% of the way through the review period, we see 14 potential index changes at the June rebalance that will be implemented at the close on 9 June.
We estimate a one-way turnover of 2.28% at the June rebalance leading to a one-way trade of CNY 5.95bn.
The potential adds have outperformed the CSI 300 Index over the last two months but have underperformed the potential deletes. The gap has been narrowing recently.


CSI300 Index Rebalance Preview: Narrowing the Gap

Shanghai Pharmaceuticals / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shanghai-pharmaceuticals-holding" target="_blank" data-smartkarma-citation="entities:228:1" rel="noopener">Shanghai Pharmaceuticals Holding (2607 HK)</a> received approval to produce anticoagulant bivalirudin injection, which is mainly used in PTCA and for patients undergoing PCI.</li>
<li>In December 2022, SPH received approval for salbutamol sulphate, indicated for the treatment of respiratory diseases including chronic bronchospasm and severe acute asthma attacks unresponsive to traditional treatment.</li>
<li>SPH signed an exclusive license agreement with Shionogi for import and distribution of Ensitrelvir Fumaric Acid, an anti-viral drug for COVID-19, in mainland China.</li>
</ul>



Shanghai Pharmaceuticals Holding (2607 HK) received approval to produce anticoagulant bivalirudin injection, which is mainly used in PTCA and for patients undergoing PCI.
In December 2022, SPH received approval for salbutamol sulphate, indicated for the treatment of respiratory diseases including chronic bronchospasm and severe acute asthma attacks unresponsive to traditional treatment.
SPH signed an exclusive license agreement with Shionogi for import and distribution of Ensitrelvir Fumaric Acid, an anti-viral drug for COVID-19, in mainland China.


Shanghai Pharmaceuticals (2607 HK/601607 CH): Portfolio Expansion & China Reopening to Drive Growth

China

Shanghai Pharmaceuticals Holding Co., Ltd manufactures pharmaceuticals. The Company develops and sells chemical and Chinese traditional medicines, healthcare products, and other products. Shanghai Pharmaceuticals Holding markets its products throughout China.

Shanghai Pharmaceuticals Holding (601607 CH)

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Shanghai Pharmaceuticals Holding (601607 CH)

CSI300 Index Rebalance: 9 Changes as Discretion Used

There are 9 changes for the CSI300 Index in June. Nearly all changes were forecast. Some stocks are conspicuous by their non-addition/deletion. The...

Brian Freitas

Adicon Holdings Pre-IPO - Thoughts on Valuation

ADICON Holdings Limited (ADI HK) is looking to raise about US$400m in its upcoming HK IPO. In this note, we talk about our thoughts on valuation.

Ethan Aw

Sinopharm Group (1099 HK): Strong 2022 Results; Double-Digit Top and Bottom-Line Growth to Continue

Sinopharm reported 6% revenue and 10% EPS growth in 2022, driven by pharmaceutical distribution business. Favorable industry tailwind and China...

Tina Banerjee

CSI300 Index Rebalance Preview: Narrowing the Gap

Nearing the end of the review period, we see 14 potential changes. We estimate a one-way turnover of 2.28% leading to a one-way trade of CNY...

Brian Freitas

Shanghai Pharmaceuticals (2607 HK/601607 CH): Portfolio Expansion & China Reopening to Drive Growth

SPH received approvals for couple of new generic drugs in China and US. With a massive distribution network across the nation, the company is well...

Tina Banerjee

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52-week Range

Market Cap (USDm)

P/E

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