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.

Event-Driven

<ul>
<li>Giant Biogene raised around US$70m in its Hong Kong IPO, after having downsized the deal and priced it at the low-end. Its six-month lockup will expire soon.</li>
<li>GB is a leader in the bioactive ingredient-based professional skin treatment product industry in China.</li>
<li>In this note, we will talk about the lock-up dynamics and updates since our last note.</li>
</ul>


Giant Biogene raised around US$70m in its Hong Kong IPO, after having downsized the deal and priced it at the low-end. Its six-month lockup will expire soon.
GB is a leader in the bioactive ingredient-based professional skin treatment product industry in China.
In this note, we will talk about the lock-up dynamics and updates since our last note.


Giant Biogene IPO Lock-Up - US$1.7bn Lockup Release Will Increase Free Float by 14x

Pan-Asia Index Rebalances/Events/Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/Events/Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Shandong Zhongji Electrical Eqpnt / Event-Driven

<ul>
<li>With 1 trading day left in the review period, we forecast 10 changes for the <a href="https://www.smartkarma.com/entities/chinext-price-index" target="_blank" data-smartkarma-citation="entities:25483:1" rel="noopener">Chinext Price Index (SZ399006 INDEX)</a> and 5 changes for the ChiNext 50 Index in June.</li>
<li>Passive trackers are estimated to trade around +/-0.5 days ADV on most of the potential adds/deletes, though there are some deletes that will have over 1 day ADV to sell.</li>
<li>The potential inclusion to one or both indices have outperformed the potential deletes by a huge margin in the last month. We'd be inclined to trim positions.</li>
</ul>


With 1 trading day left in the review period, we forecast 10 changes for the Chinext Price Index (SZ399006 INDEX) and 5 changes for the ChiNext 50 Index in June.
Passive trackers are estimated to trade around +/-0.5 days ADV on most of the potential adds/deletes, though there are some deletes that will have over 1 day ADV to sell.
The potential inclusion to one or both indices have outperformed the potential deletes by a huge margin in the last month. We'd be inclined to trim positions.


ChiNext/​​ChiNext50 Index Rebalance Preview: Outperformance Maintained

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

Shanghai Chicmax Cosmetic / Equity Bottom-Up

<ul>
<li>Chicmax’s 2022 performance was ugly, which was mainly due to the weak sales growth in online channels. Without obvious improvement in sales channels, Chicmax would easily reach a growth bottleneck.</li>
<li>If Chicmax cannot transform from a marketing-driven low-end brand to a brand with growth potential that adheres to long-term principles,emphasizes equally on R&amp;D and marketing, it would lose investment value.</li>
<li>Chicmax is overvalued. Its valuation should be lower than that of Bloomage and Botanee. If things go badly in the future, its valuation could be lower than <a href="https://www.smartkarma.com/entities/shanghai-jahwa-united-co-a" target="_blank" data-smartkarma-citation="entities:4266:1" rel="noopener">Shanghai Jahwa</a>.</li>
</ul>


Chicmax’s 2022 performance was ugly, which was mainly due to the weak sales growth in online channels. Without obvious improvement in sales channels, Chicmax would easily reach a growth bottleneck.
If Chicmax cannot transform from a marketing-driven low-end brand to a brand with growth potential that adheres to long-term principles,emphasizes equally on R&amp;D and marketing, it would lose investment value.
Chicmax is overvalued. Its valuation should be lower than that of Bloomage and Botanee. If things go badly in the future, its valuation could be lower than Shanghai Jahwa.


Shanghai Chicmax Cosmetic (2145.HK) - Start to Enter a Vicious Cycle

<ul>
<li>Three quarters of the way through the review period, we forecast 10 changes for the <a href="https://www.smartkarma.com/entities/chinext-price-index" target="_blank" data-smartkarma-citation="entities:25483:1" rel="noopener">Chinext Price Index (SZ399006 INDEX)</a> and 5 changes for the ChiNext 50 Index in June.</li>
<li>Passive trackers will need to buy +/-0.5 days of ADV for most inclusions and exclusions from the indices. On average, the impact on the potential deletions is higher.</li>
<li>The potential adds have outperformed the potential deletes over the last six months, and there has been a sharp widening of the gap over the last few weeks.</li>
</ul>


Three quarters of the way through the review period, we forecast 10 changes for the Chinext Price Index (SZ399006 INDEX) and 5 changes for the ChiNext 50 Index in June.
Passive trackers will need to buy +/-0.5 days of ADV for most inclusions and exclusions from the indices. On average, the impact on the potential deletions is higher.
The potential adds have outperformed the potential deletes over the last six months, and there has been a sharp widening of the gap over the last few weeks.


ChiNext/​ChiNext50 Index Rebalance Preview: Overlapping Stocks & Recent Outperformance

Giant Biogene Holding   / Equity Bottom-Up

<ul>
<li>Giant Biogene has been added to Hong Kong Stock Connect.There’s also positive sentiment driven by the consumption recovery after China reopens. But the Company is overvalued if compared with peers.</li>
<li>The subsequent product pipeline progress is relatively slow, with a gap of nearly two years in the middle. So, Giant Biogene's stock price performance may be relatively weak after 2024.</li>
<li>Due to various restrictions, the actual market space of collagen in the future may not be as large as expected. This is a point investors need to be aware of.</li>
</ul>


Giant Biogene has been added to Hong Kong Stock Connect.There’s also positive sentiment driven by the consumption recovery after China reopens. But the Company is overvalued if compared with peers.
The subsequent product pipeline progress is relatively slow, with a gap of nearly two years in the middle. So, Giant Biogene's stock price performance may be relatively weak after 2024.
Due to various restrictions, the actual market space of collagen in the future may not be as large as expected. This is a point investors need to be aware of.


Giant Biogene Holding (2367.HK) - The Situation May Not Be as Rosy as It Looks

China

Yunnan Botanee Bio-Technology Group Co. LTD manufactures and sells skin care and cosmetics. The Company produces masks, toners, hand creams, and other cosmetics. Yunnan Botanee Bio-Technology Group also develops new biology technologies.

Yunnan Botanee Bio-Technology (300957 CH)

52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Yunnan Botanee Bio-Technology (300957 CH)

Giant Biogene IPO Lock-Up - US$1.7bn Lockup Release Will Increase Free Float by 14x

Giant Biogene raised around US$70m in its Hong Kong IPO, after having downsized the deal and priced it at the low-end. Its six-month lockup will...

Sumeet Singh

ChiNext/ChiNext50 Index Rebalance Preview: Outperformance Maintained

We forecast 10 changes for the Chinext and 5 for the Chinext50. Impact is not large but these are liquid stocks that are moving. The potential adds...

Brian Freitas

Shanghai Chicmax Cosmetic (2145.HK) - Start to Enter a Vicious Cycle

After Chicmax released the ugly 2022 results, it seems to have enter a vicious cycle. If Chicmax cannot transform into a visionary R&D driven...

Xinyao (Criss) Wang

ChiNext/ChiNext50 Index Rebalance Preview: Overlapping Stocks & Recent Outperformance

We forecast 10 changes to the ChiNext & 5 changes to the ChiNext50 in June. There are a few overlapping stocks & the potential adds have...

Brian Freitas

Giant Biogene Holding (2367.HK) - The Situation May Not Be as Rosy as It Looks

After Giant Biogene has been added to Hong Kong Stock Connect, liquidity would improve a lot. But lower-than-expected market space, competition and...

Xinyao (Criss) Wang

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Giant Biogene IPO Lock-Up - US$1.7bn Lockup Release Will Increase Free Float by 14x

Giant Biogene raised around US$70m in its Hong Kong IPO, after having downsized the deal and priced it at the low-end. Its six-month lockup will...

Sumeet Singh

ChiNext/​​ChiNext50 Index Rebalance Preview: Outperformance Maintained

We forecast 10 changes for the Chinext and 5 for the Chinext50. Impact is not large but these are liquid stocks that are moving. The potential adds...

Brian Freitas

Shanghai Chicmax Cosmetic (2145.HK) - Start to Enter a Vicious Cycle

After Chicmax released the ugly 2022 results, it seems to have enter a vicious cycle. If Chicmax cannot transform into a visionary R&D driven...

Xinyao (Criss) Wang

ChiNext/​ChiNext50 Index Rebalance Preview: Overlapping Stocks & Recent Outperformance

We forecast 10 changes to the ChiNext & 5 changes to the ChiNext50 in June. There are a few overlapping stocks & the potential adds have...

Brian Freitas

Giant Biogene Holding (2367.HK) - The Situation May Not Be as Rosy as It Looks

After Giant Biogene has been added to Hong Kong Stock Connect, liquidity would improve a lot. But lower-than-expected market space, competition and...

Xinyao (Criss) Wang

ChiNext/ChiNext50 Index Rebalance Preview: Outperformance Maintained

ChiNext/ChiNext50 Index Rebalance Preview: Overlapping Stocks & Recent Outperformance