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 analyze the monthly Shanghai/Shenzhen northbound Connect flows with our data engine.</li>
<li>Industrials ($2,588 million worth of outflows), Financials ($1,109 million worth of outflows) led the outflows. </li>
<li>We highlight outflows from Moutai, CATL, Longi, Focus Media, Ping An Insurance.</li>
</ul>


We analyze the monthly Shanghai/Shenzhen northbound Connect flows with our data engine.
Industrials ($2,588 million worth of outflows), Financials ($1,109 million worth of outflows) led the outflows. 
We highlight outflows from Moutai, CATL, Longi, Focus Media, Ping An Insurance.


Northbound Flows Monthly (October): Three Months of Outflows

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>Will Semi announced better-than-expected 3Q results. Revenue came in at RMB6.2bn, representing 44.4% YoY growth and 37.6% QoQ growth, respectively.</li><li>3Q revenue marked the second-highest quarterly revenue in the company’s history. Net profit was RMB215mn, turning positive from 2Q.</li><li>We think the sound results were driven by: 1) better-than-expected recovery in consumer electronics, noticeably in domestic Android phone markets; and 2) strong growth in auto CIS as the company booked more orders across both existing and new manufacturers. </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.

Will Semi announced better-than-expected 3Q results. Revenue came in at RMB6.2bn, representing 44.4% YoY growth and 37.6% QoQ growth, respectively.3Q revenue marked the second-highest quarterly revenue in the company’s history. Net profit was RMB215mn, turning positive from 2Q.We think the sound results were driven by: 1) better-than-expected recovery in consumer electronics, noticeably in domestic Android phone markets; and 2) strong growth in auto CIS as the company booked more orders across both existing and new manufacturers. 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.

Willsemi (603501 CH) – Expect Strong 3Q Momentum to Continue; Upgrade to BUY

<ul>
<li>We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of October 13th.</li>
<li>We estimate the weekly outflows to be US$1,898.6 million, led by industrials, information technology, and offset by consumer discretionary, health care.</li>
<li>We highlight flows for Longi Green, China Tourism, Iflytek, Ping An Insurance.</li>
</ul>


We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of October 13th.
We estimate the weekly outflows to be US$1,898.6 million, led by industrials, information technology, and offset by consumer discretionary, health care.
We highlight flows for Longi Green, China Tourism, Iflytek, Ping An Insurance.


Northbound Flows (Oct 13th): Longi Green, China Tourism, Iflytek, Ping An Insurance

Thematic (Sector/Industry)

<ul><li>CIS market revenue was US$21.3bn in 2022, stagnated with 0.2% YoY decline, according to Yole.</li><li>The sales from mobile segment (US$13.5bn) remained flat. Auto CIS sales grew 13.7% YoY to US$2.2bn, surpassing Security CIS, which experienced significant decline (42.8% YoY) in the past year.</li><li>Domestic CIS players took a strong hit by 1) the weak mobile/security demand, 2) slower-thanexpected inventory digestion and 3) intensified competition among overseas and domestic peers. </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.

CIS market revenue was US$21.3bn in 2022, stagnated with 0.2% YoY decline, according to Yole.The sales from mobile segment (US$13.5bn) remained flat. Auto CIS sales grew 13.7% YoY to US$2.2bn, surpassing Security CIS, which experienced significant decline (42.8% YoY) in the past year.Domestic CIS players took a strong hit by 1) the weak mobile/security demand, 2) slower-thanexpected inventory digestion and 3) intensified competition among overseas and domestic peers. 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.

Semi – China CIS sector – Solid auto CIS growth offset by weak mobile CIS demand

<ul><li>Willsemi’s 1H23 revenue and net profit were RMB8.9bn and RMB153mn, down 20% and 93% YoY, respectively.</li><li>Margin continued to contract in 2Q23, suggesting the Company is marking efforts to digest inventory.</li><li>2Q NP was negative again, failing to continue its profitability from 1Q. </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.

Willsemi’s 1H23 revenue and net profit were RMB8.9bn and RMB153mn, down 20% and 93% YoY, respectively.Margin continued to contract in 2Q23, suggesting the Company is marking efforts to digest inventory.2Q NP was negative again, failing to continue its profitability from 1Q. 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.

China

Will Semiconductor Co.,Ltd. Shanghai manufactures image sensor products and semiconductor products. The Company produces and sells complementary metal oxide semiconductors, protecting devices, power devices, power management integrated circuits, radio frequency devices, microphone sensors, and more. Will Semiconductor Shanghai markets its products worldwide.

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Will Semiconductor (603501 CH)

Northbound Flows Monthly (October): Three Months of Outflows

We analyzed the Shanghai/Shenzhen Connect Scheme for October and highlight flows for Moutai, CATL, Longi, Focus Media, Ping An Insurance.

Ke Yan, CFA, FRM

Willsemi (603501 CH) – Expect Strong 3Q Momentum to Continue; Upgrade to BUY

Will Semi announced better-than-expected 3Q results. Revenue came in at RMB6.2bn, representing 44.4% YoY growth and 37.6% QoQ growth, respectively.

CMB International

Northbound Flows (Oct 13th): Longi Green, China Tourism, Iflytek, Ping An Insurance

We analyzed northbound Shanghai/Shenzhen connect flows in the past week and highlight flows for Longi Green, China Tourism, Iflytek, Ping An...

Ke Yan, CFA, FRM

Semi – China CIS sector – Solid auto CIS growth offset by weak mobile CIS demand

The sales from mobile segment (US$13.5bn) remained flat. Auto CIS sales grew 13.7% YoY to US$2.2bn, surpassing Security CIS, which experienced...

CMB International

Willsemi (603501 CH)

Margin continued to contract in 2Q23, suggesting the Company is marking efforts to digest inventory. 2Q NP was negative again, failing to continue...

CMB International

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