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 weekly Hong Kong Connect flows with our data engine for holding position as of April 26th.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight flows for Bank Of China, Tencent, China Mobile, HKEx, Zto Express, Meituan, HSBC.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of April 26th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Bank Of China, Tencent, China Mobile, HKEx, Zto Express, Meituan, HSBC.


Hong Kong Connect Flows (Apr 26th): BOC, Tencent, China Mobile, HKEx, ZTO, Meituan, HSBC

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Event-Driven

<ul>
<li>PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US listed China companies.</li>
<li>The Hong Kong visit was on the back of the 26th Aug 2022 announcement by PCAOB and CSRC that they had entered into an agreement with US authorities for access.</li>
<li>In this note, we'll talk about the latest developments, possible outcomes and implications.</li>
</ul>


PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US listed China companies.
The Hong Kong visit was on the back of the 26th Aug 2022 announcement by PCAOB and CSRC that they had entered into an agreement with US authorities for access.
In this note, we'll talk about the latest developments, possible outcomes and implications.


China ADRs Delisting - Friday Could Be Judgment Day for over US$800bn Mcap of Stocks

China Specialist, Auto and Industrial Specialist

Victoria Li

Equity Bottom-Up

<ul>
<li>After a 86% decline on share price YTD, we believe it’s time to revisit Xpeng.</li>
<li>Having gone through all the negatives which led to Xpeng’s underperforming vs peers, we believe the market has overreacted, while the company’s advantages/technology improvements have been ignored.</li>
<li>After 4 months of sales decline, company fundamentals would bottom out from November onwards with G9 starting to speak for itself. </li>
</ul>


After a 86% decline on share price YTD, we believe it’s time to revisit Xpeng.
Having gone through all the negatives which led to Xpeng’s underperforming vs peers, we believe the market has overreacted, while the company’s advantages/technology improvements have been ignored.
After 4 months of sales decline, company fundamentals would bottom out from November onwards with G9 starting to speak for itself. 


Xpeng (9868.HK, XPEV): Painful Year, but Payoffs for Technology Improvements Ahead

<ul>
<li>Short term interruption from chips and LFP battery shortage would be eased in 2H2022.</li>
<li>Xpeng’s monthly delivery would ramp up to 30,000 cars with the launch of G9 in 3Q2022.</li>
<li>We estimate Xpeng’s net profit will turn positive at the end of 2022, which would trigger further re-rating of the stock to HK$300 (or US$77).</li>
</ul>


Short term interruption from chips and LFP battery shortage would be eased in 2H2022.
Xpeng’s monthly delivery would ramp up to 30,000 cars with the launch of G9 in 3Q2022.
We estimate Xpeng’s net profit will turn positive at the end of 2022, which would trigger further re-rating of the stock to HK$300 (or US$77).


Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

<ul>
<li>It's time to revisit the network of Alibaba's ( <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd-d7b798e2-202d-4e01-9a1e-799e2ae8f0c7" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group Holding (9988 HK)</a> ) affiliated listed companies for near term investment opportunities</li>
<li>After investing in an ecosystem of online and offline companies over the last 10 years, Alibaba is rapidly restructuring its businesses to refocus on its most profitable opportunities</li>
<li>
<a href="https://www.smartkarma.com/entities/sun-art-retail-group-ltd" target="_blank" data-smartkarma-citation="entities:401:1" rel="noopener">Sun Art Retail (6808 HK)</a> will benefit from the synergies of Baba's restructuring</li>
</ul>


It's time to revisit the network of Alibaba's ( Alibaba Group Holding (9988 HK) ) affiliated listed companies for near term investment opportunities
After investing in an ecosystem of online and offline companies over the last 10 years, Alibaba is rapidly restructuring its businesses to refocus on its most profitable opportunities

Sun Art Retail (6808 HK) will benefit from the synergies of Baba's restructuring


BABA's Babies: They're All Grown Up Now! Sun Art Retail: A Restructuring Opportunity

China

XPeng Inc. designs, produces, and distributes electric vehicles. The Company designs, develops, manufactures and markets smart smart electric vehicles, as well as finance, parts, and maintenance services. XPeng serves customers in China.

XPeng (9868 HK)

Hong Kong Connect Flows (Apr 26th): BOC, Tencent, China Mobile, HKEx, ZTO, Meituan, HSBC

We analyzed southbound Hong Kong connect flows in the past week and highlight flows for Bank Of China, Tencent, China Mobile, HKEx, Zto Express,...

Ke Yan, CFA, FRM

China ADRs Delisting - Friday Could Be Judgment Day for over US$800bn Mcap of Stocks

PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US...

Sumeet Singh

Xpeng (9868.HK, XPEV): Painful Year, but Payoffs for Technology Improvements Ahead

After a 86% decline on share price YTD, we believe it’s time to revisit Xpeng. We believe the market has overreacted, while the company’s...

Victoria Li

Xpeng: Milestone Year Ahead

Short term interruption from chips and LFP battery shortage would be eased in 2H2022.Xpeng’s monthly delivery would ramp up to 30,000 cars with the...

Victoria Li

BABA's Babies: They're All Grown Up Now! Sun Art Retail: A Restructuring Opportunity

Alibaba's subsidiary Sun Art Retail stands to benefit from its parent's restructuring initiative, unlocking value for shareholders

David Mudd