IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/yuexiu-property-co-ltd" target="_blank" data-smartkarma-citation="entities:18097:1" rel="noopener">Yuexiu Property (123 HK)</a> will raise US$1.1bn through a rights offering - 30 rights shares for every 100 existing shares. The subscription price is HK$9.00, a 23.3% discount to TERP.</li>
<li>As Yuexiu is in no danger of breaching the three red lines, the rights issue is an opportunistic play on capitalising on the strong share price run.</li>
<li>Rights shares will be entitled to the final and special dividend announced on 15 March. Shares go ex-rights on 2 May and the rights start trading on 15 May.</li>
</ul>



Yuexiu Property (123 HK) will raise US$1.1bn through a rights offering - 30 rights shares for every 100 existing shares. The subscription price is HK$9.00, a 23.3% discount to TERP.
As Yuexiu is in no danger of breaching the three red lines, the rights issue is an opportunistic play on capitalising on the strong share price run.
Rights shares will be entitled to the final and special dividend announced on 15 March. Shares go ex-rights on 2 May and the rights start trading on 15 May.


Yuexiu Property (123 HK): US$1.1bn Dilutive and Unnecessary Rights Issue

Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

High Yield Experts

Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

Credit

Yuexiu Property's (YXP) FY 2022 results appear to have surpassed most of its peers' and exceeded our expectations, given the industry's weakness and the impact of pandemic-related measures. We expect the company to keep outperforming the industry, with growth driven by its good relationship with the Guangzhou municipal government, prudent financial management and sound credit profile, as well as resilient sales performance, thanks to effective marketing strategies and a high-quality land bank. Going forward, we believe that YXP could be one of the property players with steady growth in operating results and a strong financial position to benefit from the rebounding industry economy and market sentiment. We move our recommendation to "Buy" from "Hold" on the YUEXIU curve.

  Yuexiu Property's (YXP) FY 2022 results appear to have surpassed most of its peers' and exceeded our expectations, given the industry's weakness and the impact of pandemic-related measures. We expect the company to keep outperforming the industry, with growth driven by its good relationship with the Guangzhou municipal government, prudent financial management and sound credit profile, as well as resilient sales performance, thanks to effective marketing strategies and a high-quality land bank.   Going forward, we believe that YXP could be one of the property players with steady growth in operating results and a strong financial position to benefit from the rebounding industry economy and market sentiment.   We move our recommendation to "Buy" from "Hold" on the YUEXIU curve. 

Yuexiu Property - Earnings Flash - FY 2022 Results - Lucror Analytics

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.

Country Garden Holdings / Equity Capital Markets

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<li>
<a href="https://www.smartkarma.com/entities/country-garden-holdings-co" target="_blank" data-smartkarma-citation="entities:5225:1" rel="noopener">Country Garden Holdings Co (2007 HK)</a>  aims to raise around US$500m via a primary placement</li>
<li>This will be the third placement by the company this year and the second one within a month’s time.</li>
<li>In this note, we will run the deal through our ECM framework and talk about the recent updates.</li>
</ul>



Country Garden Holdings Co (2007 HK)  aims to raise around US$500m via a primary placement
This will be the third placement by the company this year and the second one within a month’s time.
In this note, we will run the deal through our ECM framework and talk about the recent updates.


Country Garden Placement - Hot on the Heels of the Last Deal, Momentum Has Shifted

Lucror Analytics' ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable). We assess Yuexiu Property's ESG as "Adequate", in line with its "Adequate" Environmental, Social and Governance scores. Controversies are "Immaterial" and Disclosure is "Adequate".

Lucror Analytics' ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).  We assess Yuexiu Property's ESG as "Adequate", in line with its "Adequate" Environmental, Social and Governance scores. Controversies are "Immaterial" and Disclosure is "Adequate". 

Yuexiu Property - ESG Report - Lucror Analytics

Yuexiu Property​ (YXP) has released satisfactory FY 2021 results, given the weakness in the industry. Leverage edged up slightly, due to the issuance of new bonds in FY 2021. That said, the company continues to have access to external funding, thanks to its SOE status. In addition, a high proportion of its cash balance is freely available, with only 24% restricted under escrow accounts. We believe YXP has adequate liquidity and manageable refinancing risk.

 Yuexiu Property​ (YXP) has released satisfactory FY 2021 results, given the weakness in the industry. Leverage edged up slightly, due to the issuance of new bonds in FY 2021. That said, the company continues to have access to external funding, thanks to its SOE status. In addition, a high proportion of its cash balance is freely available, with only 24% restricted under escrow accounts. We believe YXP has adequate liquidity and manageable refinancing risk.

Yuexiu Property - Earnings Flash - FY 2021 Results - Lucror Analytics

Hong Kong

Yuexiu Property is a comprehensive real estate developer engaged in property development, investment, and management across residential, commercial, and industrial sectors. The company develops and sells residential properties, operates and leases commercial spaces, and provides property management services. Headquartered in Guangzhou, Guangdong, China, it was established in 1983.

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Yuexiu Property (123 HK)