Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Equity Bottom-Up

<ul>
<li>China-Based vaccine biopharmaceutical company Ab&amp;B is looking to raise at least US$100 million via a Hong Kong listing.</li>
<li>In this note, we look at the story that the company is trying to market.</li>
<li>We are of the view that the potential of its core flu vaccine product is not that rosy. Its pre-IPO investors and founders are of mediocre quality.</li>
</ul>


China-Based vaccine biopharmaceutical company Ab&amp;B is looking to raise at least US$100 million via a Hong Kong listing.
In this note, we look at the story that the company is trying to market.
We are of the view that the potential of its core flu vaccine product is not that rosy. Its pre-IPO investors and founders are of mediocre quality.


Ab&B Bio-Tech (中慧生物) Pre-IPO: A Shaky Story of Flu Vaccine Rising Star

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>Post market close on Friday, Hang Seng Indexes will announce the changes for the <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">Hang Seng Index (HSI INDEX)</a> that will be implemented at the close on 7 March.</li>
<li>With no constituent changes, one-way turnover will be 2.75% with 3 stocks being capped downward. This gives the index committee the opportunity to add more stocks without significantly increasing turnover.</li>
<li>The return of the high and medium probability inclusions has matched the performance of the <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">Hang Seng Index</a> over the last few months, Shorts have climbed in some names.</li>
</ul>


Post market close on Friday, Hang Seng Indexes will announce the changes for the Hang Seng Index (HSI INDEX) that will be implemented at the close on 7 March.
With no constituent changes, one-way turnover will be 2.75% with 3 stocks being capped downward. This gives the index committee the opportunity to add more stocks without significantly increasing turnover.
The return of the high and medium probability inclusions has matched the performance of the Hang Seng Index over the last few months, Shorts have climbed in some names.


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

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>Due to disappointing performance in 24Q1-Q3, both revenue and net profit attributable to the parent company in 2024 could face negative growth, but 2025 is expected to have positive growth.</li>
<li>As pharmaceutical distribution business can just maintain stable but medical device distribution business and retail pharmacies cannot contribute high growth, the overall performance of Sinopharm has lost growth momentum.</li>
<li>Due to longer payment cycles from hospitals and its business characteristics, Sinopharm is facing significant demands for working capital. Insufficient cash flow makes it difficult to increase the dividend rate.  </li>
</ul>


Due to disappointing performance in 24Q1-Q3, both revenue and net profit attributable to the parent company in 2024 could face negative growth, but 2025 is expected to have positive growth.
As pharmaceutical distribution business can just maintain stable but medical device distribution business and retail pharmacies cannot contribute high growth, the overall performance of Sinopharm has lost growth momentum.
Due to longer payment cycles from hospitals and its business characteristics, Sinopharm is facing significant demands for working capital. Insufficient cash flow makes it difficult to increase the dividend rate.  


Sinopharm Group Co Ltd (1099.HK) - Performance May Continue to Miss Expectations

Equity Derivatives and Volatility Specialist, Clifton Derivatives

John Ley

Equity Derivatives and Volatility Specialist

Clifton Derivatives

Independent derivative and volatility research firm focusing on events/catalysts, earnings, relative value and cross asset volatility strategies.

Equity Derivatives

<ul>
<li>Top Ten most active contracts for the week all traded on Monday. Most of the active contracts were Calls with December expiries.</li>
<li>
<a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi Corp (1810 HK)</a> makes the Top Ten non-Tencent most active contracts with both Puts and Call active – likely stock replacement and hedges following torrid run higher.</li>
<li>Tencent implied vols trading at their lowest levels of the past year.</li>
</ul>


Top Ten most active contracts for the week all traded on Monday. Most of the active contracts were Calls with December expiries.

Xiaomi Corp (1810 HK) makes the Top Ten non-Tencent most active contracts with both Puts and Call active – likely stock replacement and hedges following torrid run higher.
Tencent implied vols trading at their lowest levels of the past year.


EQD | Hong Kong Single Stock Options Weekly December 09 – 13

Healthcare Equity Analyst - Emerging & Dev Markets, daaimon

Avien Pillay

Healthcare Equity Analyst - Emerging & Dev Markets

daaimon

daaimon is an independent research company focusing on healthcare and consumer sectors across developed and emerging markets. We produce insightful research which challenges conventional thinking. In particular, we look for new ideas by testing consensus forecasts and markets expectations.

<ul>
<li>Sinopharm will benefit from the strong expected growth in China’s healthcare spend.</li>
<li>There is scope to increase its distribution which will continue to shield the company from short-term volatility.</li>
<li>Pricing pressure in drug prices creates opportunity to optimise range and improve profitability.</li>
</ul>


Sinopharm will benefit from the strong expected growth in China’s healthcare spend.
There is scope to increase its distribution which will continue to shield the company from short-term volatility.
Pricing pressure in drug prices creates opportunity to optimise range and improve profitability.


Sinopharm (1099 HK) - A Compelling Investment Case

China

Sinopharm Group is a leading Chinese distributor and retailer of pharmaceutical and healthcare products, medical devices, and a supply chain service provider. The company also engages in the production and sale of pharmaceutical products, chemical reagents, and laboratory supplies. It was incorporated in January 2003 and is headquartered in Shanghai, China.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Sinopharm Group (1099 HK)

Ab&B Bio-Tech (中慧生物) Pre-IPO: A Shaky Story of Flu Vaccine Rising Star

China's Ab&B seeks to raise $100 million through Hong Kong listing, but concerns arise over the potential of its flu vaccine product and the...

Ke Yan, CFA, FRM

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

We highlight 9 potential inclusions to the HSI in March. Downward capping on Tencent and Alibaba gives the index committee an opportunity to add...

Brian Freitas

Sinopharm Group Co Ltd (1099.HK) - Performance May Continue to Miss Expectations

Sinopharm's disappointing results in 2024Q1-Q3 may see negative growth for the whole year, but 2025 is expected to rebound. Pain points lies in...

Xinyao (Criss) Wang

EQD | Hong Kong Single Stock Options Weekly December 09 – 13

Top Ten most active contracts traded on Monday, mostly Calls with December expiries. Xiaomi Corp makes most active contracts list with Puts and...

John Ley

Sinopharm (1099 HK) - A Compelling Investment Case

Sinopharm is well positioned to benefit from China’s expected strong growth in healthcare spend. The investment case is further strengthened by a...

daaimon

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Ab&B Bio-Tech (中慧生物) Pre-IPO: A Shaky Story of Flu Vaccine Rising Star

​China's Ab&B seeks to raise $100 million through Hong Kong listing, but concerns arise over the potential of its flu vaccine product and the...

Ke Yan, CFA, FRM

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

We highlight 9 potential inclusions to the HSI in March. Downward capping on Tencent and Alibaba gives the index committee an opportunity to add...

Brian Freitas

Sinopharm Group Co Ltd (1099.HK) - Performance May Continue to Miss Expectations

​Sinopharm's disappointing results in 2024Q1-Q3 may see negative growth for the whole year, but 2025 is expected to rebound. Pain points lies in...

Xinyao (Criss) Wang

EQD | Hong Kong Single Stock Options Weekly December 09 – 13

​Top Ten most active contracts traded on Monday, mostly Calls with December expiries. Xiaomi Corp makes most active contracts list with Puts and...

John Ley

Sinopharm (1099 HK) - A Compelling Investment Case

Sinopharm is well positioned to benefit from China’s expected strong growth in healthcare spend. The investment case is further strengthened by a...

daaimon

China's Ab&B seeks to raise $100 million through Hong Kong listing, but concerns arise over the potential of its flu vaccine product and the...

Sinopharm's disappointing results in 2024Q1-Q3 may see negative growth for the whole year, but 2025 is expected to rebound. Pain points lies in...

Top Ten most active contracts traded on Monday, mostly Calls with December expiries. Xiaomi Corp makes most active contracts list with Puts and...