Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Equity Capital Markets

<ul>
<li>Kayou Inc., early-mover in the trading card industry in China, filed for an IPO in Hong Kong. The company sells trading cards, toys, figures, badges, pens, and notebooks, among others.</li>
<li>Kayou Inc. received capital of ~$135M from HongShan Capital and Tencent Holdings in 2022. Mr. Li Qibin founded trading card and collectible toy firm in 2011.</li>
<li>Founder led company has delivered 250%+ growth and FCF of $500M+ in 2024. The market opportunity is large enough to support sustained high growth for Kayou for several years.</li>
</ul>


Kayou Inc., early-mover in the trading card industry in China, filed for an IPO in Hong Kong. The company sells trading cards, toys, figures, badges, pens, and notebooks, among others.
Kayou Inc. received capital of ~$135M from HongShan Capital and Tencent Holdings in 2022. Mr. Li Qibin founded trading card and collectible toy firm in 2011.
Founder led company has delivered 250%+ growth and FCF of $500M+ in 2024. The market opportunity is large enough to support sustained high growth for Kayou for several years.


Kayou IPO Preview: 250%+ Growth + FCF of $500M+ in 2024, Leader in the Trading Card Sector in China

Chief Executive Officer, Emmer Capital Partners Limited

Manishi Raychaudhuri

Chief Executive Officer

Emmer Capital Partners Limited

Emmer Capital Partners is an Asia Pacific focused financial advisory firm engaging in strategic financial asset allocation advice, bespoke thematic research and advising early-stage companies and connecting them to investors. Emmer Capital provides macro-economic and multi-asset investment strategy inputs to institutions, family offices, private wealth managers, private equity, and corporate boards directly and through independent research platforms. Emmer Capital also advises a wide range of startup companies on fund raising and business strategy. Emmer Capital's active engagement with the print and electronic media reaches a broad spectrum of investors across the globe.

Cross Asset Strategy

<ul>
<li>The USD is moderating, not just against developed market currencies, but also against Asian currencies. Usually, Asian currency revival is a lead indicator of acceleration of FII flows in Asia. </li>
<li>Our analysis of cumulative FII sales as proportion of market cap shows that Korea and Indonesia are oversold. India is almost there, but not quite. HK/China is still under-owned. </li>
<li>Taiwan and Thailand, despite large FII selling over an extended period, are still not oversold. Both markets face risks from the tariff war and could face more FII selling pressure.</li>
</ul>


The USD is moderating, not just against developed market currencies, but also against Asian currencies. Usually, Asian currency revival is a lead indicator of acceleration of FII flows in Asia. 
Our analysis of cumulative FII sales as proportion of market cap shows that Korea and Indonesia are oversold. India is almost there, but not quite. HK/China is still under-owned. 
Taiwan and Thailand, despite large FII selling over an extended period, are still not oversold. Both markets face risks from the tariff war and could face more FII selling pressure.


Asian Equities: The Currency Tailwind - Where Would FII Flows Gravitate?

Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet research

China growth and global non-US Internet equities

Blue Lotus Research Institute

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>AI Sector Update: AI Sector Update: DeepSeek R2 Technical Parameters Leaked with Significant Price Reduction(+)</li>
<li>700 HK: WeChat Gift Feature Integrated into Official Account Lottery Function (+)</li>
<li>TME US: Reports indicate Tencent Music Entertainment is in acquisition talks with Chinese audiobook app Ximalaya (+)</li>
</ul>


AI Sector Update: AI Sector Update: DeepSeek R2 Technical Parameters Leaked with Significant Price Reduction(+)
700 HK: WeChat Gift Feature Integrated into Official Account Lottery Function (+)
TME US: Reports indicate Tencent Music Entertainment is in acquisition talks with Chinese audiobook app Ximalaya (+)


[Blue Lotus Daily-TMT Update]:700 HK/TME US/PDD US/BIDU US/AI Sector Update

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.

Hainan Drinda Automotive Trim / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hainan-drinda-automotive-trim" target="_blank" data-smartkarma-citation="entities:29412:1" rel="noopener">Hainan Drinda Automotive Trim (002865 CH)</a> plans to raise up to US$234m via its A/H listing.</li>
<li>HDNET is a specialized manufacturer of PV cells which are used in making PV modules.</li>
<li>In this note, we look at the company’s recent performance and other deal dynamics, as well as valuations.</li>
</ul>



Hainan Drinda Automotive Trim (002865 CH) plans to raise up to US$234m via its A/H listing.
HDNET is a specialized manufacturer of PV cells which are used in making PV modules.
In this note, we look at the company’s recent performance and other deal dynamics, as well as valuations.


Hainan Drinda New Energy (A/H IPO) - Business Was Acquired for 1/3rd the Price, Three Years Ago

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

Quantitative Analysis

<ul>
<li>We analyzed the latest HK SFC report for aggregate short position as of Apr 17th.</li>
<li>Top short increases and decreases were tabulated for one week and four week period.</li>
<li>We highlight short changes in Anta Sports, Pop Mart, Baba, Trip.Com, HSBC.</li>
</ul>


We analyzed the latest HK SFC report for aggregate short position as of Apr 17th.
Top short increases and decreases were tabulated for one week and four week period.
We highlight short changes in Anta Sports, Pop Mart, Baba, Trip.Com, HSBC.


HK Short Interest Weekly: Anta Sports, Pop Mart, Baba, Trip.Com, HSBC

China

Tencent Holdings Limited operates as an investment holding company. The Company, through its subsidiaries, provides Internet and mobile value-added services (VAS), online advertising, and e-commerce transactions. Tencent Holdings offers services to users worldwide.

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Tencent Holdings (ADR) (TCEHY US)

Kayou IPO Preview: 250%+ Growth + FCF of $500M+ in 2024, Leader in the Trading Card Sector in China

Shanghai-based Kayou Inc., a Chinese trading card and collectible toy company, is seeking to raise capital in Hong Kong. Kayou Inc. has delivered...

Andrei Zakharov

Asian Equities: The Currency Tailwind - Where Would FII Flows Gravitate?

US$ continues to moderate, notwithstanding last week’s moderate bounce. We think Asia’s currency tailwind shall continue to drive foreign flows...

Manishi Raychaudhuri

[Blue Lotus Daily-TMT Update]:700 HK/TME US/PDD US/BIDU US/AI Sector Update

AI company DeepSeek R2's technical details leaked, WeChat integrates gift feature, Tencent Music in talks to acquire Ximalaya audiobook app.

Blue Lotus Research Institute

Hainan Drinda New Energy (A/H IPO) - Business Was Acquired for 1/3rd the Price, Three Years Ago

Hainan Drinda Automotive Trim (002865 CH) plans to raise up to US$234m via its A/H listing. In this note, we look at the past performance and talk...

Sumeet Singh

HK Short Interest Weekly: Anta Sports, Pop Mart, Baba, Trip.Com, HSBC

We analyzed the latest HK SFC report for aggregate short position as of Apr 17th and highlight short interest changes in Anta Sports, Pop Mart,...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Kayou IPO Preview: 250%+ Growth + FCF of $500M+ in 2024, Leader in the Trading Card Sector in China

Shanghai-based Kayou Inc., a Chinese trading card and collectible toy company, is seeking to raise capital in Hong Kong. Kayou Inc. has delivered...

Andrei Zakharov

Asian Equities: The Currency Tailwind - Where Would FII Flows Gravitate?

US$ continues to moderate, notwithstanding last week’s moderate bounce. We think Asia’s currency tailwind shall continue to drive foreign flows...

Manishi Raychaudhuri

[Blue Lotus Daily-TMT Update]:700 HK/TME US/PDD US/BIDU US/AI Sector Update

​AI company DeepSeek R2's technical details leaked, WeChat integrates gift feature, Tencent Music in talks to acquire Ximalaya audiobook app.

Blue Lotus Research Institute

Hainan Drinda New Energy (A/H IPO) - Business Was Acquired for 1/3rd the Price, Three Years Ago

Hainan Drinda Automotive Trim (002865 CH) plans to raise up to US$234m via its A/H listing. In this note, we look at the past performance and talk...

Sumeet Singh

HK Short Interest Weekly: Anta Sports, Pop Mart, Baba, Trip.Com, HSBC

We analyzed the latest HK SFC report for aggregate short position as of Apr 17th and highlight short interest changes in Anta Sports, Pop Mart,...

Ke Yan, CFA, FRM

AI company DeepSeek R2's technical details leaked, WeChat integrates gift feature, Tencent Music in talks to acquire Ximalaya audiobook app.