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 analyse the changes of A-H premium on 147 stocks over the last week. The average A-H premium was 106.3% as of May 17th.</li>
<li>The average A-H premium changed by -7.7ppt week-on-week, led by consumer staples, real estate, utilities.</li>
<li>We highlight weekly changes in A-H premium for China Shenhua, Sinopec, PetroChina, China Telecom, CICC, GWM.</li>
</ul>


We analyse the changes of A-H premium on 147 stocks over the last week. The average A-H premium was 106.3% as of May 17th.
The average A-H premium changed by -7.7ppt week-on-week, led by consumer staples, real estate, utilities.
We highlight weekly changes in A-H premium for China Shenhua, Sinopec, PetroChina, China Telecom, CICC, GWM.


A-H Premium Weekly (May 17th): 44 Stocks at 52 Week High

<ul>
<li>We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of May 17th.</li>
<li>We estimate the weekly inflows to be US$1,460.9 million, led by financials, information technology, industrials sectors, and offset by utilities, communication services, energy.</li>
<li>We highlight flows for Luxshare Precision, China Merchants Bank, Midea.</li>
</ul>


We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of May 17th.
We estimate the weekly inflows to be US$1,460.9 million, led by financials, information technology, industrials sectors, and offset by utilities, communication services, energy.
We highlight flows for Luxshare Precision, China Merchants Bank, Midea.


Northbound Flows (May 17th): Luxshare Precision, CMB, Midea

<ul>
<li>We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of May 10th.</li>
<li>We estimate the weekly inflows to be US$1,023.9 million, led by consumer staples, materials, financials sectors, and offset by information technology, communication services, consumer discretionary.</li>
<li>We highlight flows for Moutai, CMB, Shenzhen Inovance Technology, Haier Smart Home, Luxshare Precision, Nari Technology, Shanghai Putailai New Energy Technology, Midea, Focus Media.</li>
</ul>


We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of May 10th.
We estimate the weekly inflows to be US$1,023.9 million, led by consumer staples, materials, financials sectors, and offset by information technology, communication services, consumer discretionary.
We highlight flows for Moutai, CMB, Shenzhen Inovance Technology, Haier Smart Home, Luxshare Precision, Nari Technology, Shanghai Putailai New Energy Technology, Midea, Focus Media.


Northbound Flows (May 10th): Moutai, CMB, Inovance, Haier Smart Home, Luxshare Precision, Nari

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>While Weichai Power (Weichai)’s revenue growth of 6% YoY in 1Q24 is below our expectation, net profit of RMB2.6bn (+40% YoY) accounted for 21.4% of our full-year estimates (run rate in 1Q23: 20.5%), which is still in line with our expectation.</li><li>The earnings growth was driven by margin expansion on both core business and KION Group (KGX GR, NR).</li><li>We maintain Weichai as our sector top pick, given (1) the large gas/diesel price gap will continue to drive natural gas engine demand, where Weichai has &gt;60% market share in; (2) high-speed large-bore engines will serve as a structural growth driver on the back of construction of more data centres. </li></ul><p><em>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.</em></p>

While Weichai Power (Weichai)’s revenue growth of 6% YoY in 1Q24 is below our expectation, net profit of RMB2.6bn (+40% YoY) accounted for 21.4% of our full-year estimates (run rate in 1Q23: 20.5%), which is still in line with our expectation.The earnings growth was driven by margin expansion on both core business and KION Group (KGX GR, NR).We maintain Weichai as our sector top pick, given (1) the large gas/diesel price gap will continue to drive natural gas engine demand, where Weichai has &gt;60% market share in; (2) high-speed large-bore engines will serve as a structural growth driver on the back of construction of more data centres. 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.

Weichai Power (000338 CH) - 1Q24 Net Profit +40% YoY in Line; Solid Growth Outlook

<ul>
<li>We analyse the changes of A-H premium on 147 stocks over the last week. The average A-H premium was 132.0% as of Apr 19th.</li>
<li>The average A-H premium changed by 2.7ppt week-on-week, led by consumer staples, financials, materials and offset by communication services, energy.</li>
<li>We highlight weekly changes in A-H premium for Fosun Pharma, China Southern Air, CICC, Ganfeng Lithium, Joinn Lab.</li>
</ul>


We analyse the changes of A-H premium on 147 stocks over the last week. The average A-H premium was 132.0% as of Apr 19th.
The average A-H premium changed by 2.7ppt week-on-week, led by consumer staples, financials, materials and offset by communication services, energy.
We highlight weekly changes in A-H premium for Fosun Pharma, China Southern Air, CICC, Ganfeng Lithium, Joinn Lab.


A-H Premium Weekly (Apr 19th): Fosun Pharma, China Southern Air, CICC, Ganfeng Lithium, Joinn Lab

China

Weichai Power Co., Ltd. specializes in the research and development, manufacturing and sales of diesel engines. The company's products are applicable to markets such as, heavy-duty vehicles, coaches, construction machines, vessels and power generator.

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Weichai Power Co Ltd H (2338 HK)

A-H Premium Weekly (May 17th): 44 Stocks at 52 Week High

We analyzed A-H premium changes in the past week and highlight A-H premium changes for China Shenhua, Sinopec, PetroChina, China Telecom, CICC, GWM.

Ke Yan, CFA, FRM

Northbound Flows (May 17th): Luxshare Precision, CMB, Midea

We analyzed northbound Shanghai/Shenzhen connect flows in the past week and highlight flows for Luxshare Precision, CMB, Midea.

Ke Yan, CFA, FRM

Northbound Flows (May 10th): Moutai, CMB, Inovance, Haier Smart Home, Luxshare Precision, Nari

We analyzed northbound Shanghai/Shenzhen connect flows in the past week and highlight flows for Moutai, CMB, Inovance, Haier Smart Home, Luxshare...

Ke Yan, CFA, FRM

Weichai Power (000338 CH) - 1Q24 Net Profit +40% YoY in Line; Solid Growth Outlook

While Weichai Power (Weichai)’s revenue growth of 6% YoY in 1Q24 is below our expectation, net profit of RMB2.6bn (+40% YoY) accounted for 21.4% of...

CMB International

A-H Premium Weekly (Apr 19th): Fosun Pharma, China Southern Air, CICC, Ganfeng Lithium, Joinn Lab

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Fosun Pharma, China Southern Air, CICC, Ganfeng Lithium,...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

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Dividend (Yield)