Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Inside is a recap of movements in the last week relating to the Hong Kong Stock Exchange -Shanghai and Shenzhen Northbound Connect facilities, broken down by company and industry.</li>
<li>Overall, net outflow over the past week was ~US$0.15bn, split between Shanghai (+US$0.05bn) and Shenzhen (-US$0.20bn).</li>
<li>The largest inflows were into <a href="https://www.smartkarma.com/entities/kweichow-moutai-co-ltd-a" target="_blank" data-smartkarma-citation="entities:1553:1" rel="noopener">Kweichow Moutai (600519 CH)</a> and <a href="https://www.smartkarma.com/entities/zhejiang-huayou-cobalt-co-ltd" target="_blank" data-smartkarma-citation="entities:25048:1" rel="noopener">Zhejiang Huayou Cobalt (603799 CH)</a>. The largest outflows were in <a href="https://www.smartkarma.com/entities/longi-green-energy-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:12703:1" rel="noopener">LONGi Green Energy Technology (601012 CH)</a> and <a href="https://www.smartkarma.com/entities/contemporary-amperex-techn-a" target="_blank" data-smartkarma-citation="entities:24404:1" rel="noopener">CATL (300750 CH)</a>.</li>
</ul>


Inside is a recap of movements in the last week relating to the Hong Kong Stock Exchange -Shanghai and Shenzhen Northbound Connect facilities, broken down by company and industry.
Overall, net outflow over the past week was ~US$0.15bn, split between Shanghai (+US$0.05bn) and Shenzhen (-US$0.20bn).
The largest inflows were into Kweichow Moutai (600519 CH) and Zhejiang Huayou Cobalt (603799 CH). The largest outflows were in LONGi Green Energy Technology (601012 CH) and CATL (300750 CH).


Shanghai/​​​​​​​​​​​​​​​Shenzhen Northbound Connect: Weekly Moves (7 October 2022)

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.

Equity Capital Markets

<ul>
<li>WCP raised around US$314m via selling a mix of primary and secondary shares in its Korean IPO.</li>
<li>WCP designs, manufactures, and sells separators, which are one of the four core materials for secondary Lithium-ion batteries.</li>
<li>In this note, we will talk about the demand for the deal and other trading dynamics.</li>
</ul>


WCP raised around US$314m via selling a mix of primary and secondary shares in its Korean IPO.
WCP designs, manufactures, and sells separators, which are one of the four core materials for secondary Lithium-ion batteries.
In this note, we will talk about the demand for the deal and other trading dynamics.


WCP IPO Trading - Peer Correction Means Price Cut Still Wasn’t Enough

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.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/wcp-co-ltd" target="_blank" data-smartkarma-citation="entities:36076:1" rel="noopener">WCP (WCP KS)</a>, a lithium-ion batteries separator company, has set its IPO price at KRW60,000 per share, a hefty 25-40% discount on the "desired" IPO price range of KRW80,000-100,000. </li>
<li>The target raise has declined from KRW720-900 billion (US$517-646 million) to KRW432 billion (US$310 million) due to the lower IPO price and offer shares.</li>
<li>While the final IPO price is now reasonable, the process smacks desperation and calls into question the credibility of the syndicate's forecasts. This is still an avoid.</li>
</ul>



WCP (WCP KS), a lithium-ion batteries separator company, has set its IPO price at KRW60,000 per share, a hefty 25-40% discount on the "desired" IPO price range of KRW80,000-100,000. 
The target raise has declined from KRW720-900 billion (US$517-646 million) to KRW432 billion (US$310 million) due to the lower IPO price and offer shares.
While the final IPO price is now reasonable, the process smacks desperation and calls into question the credibility of the syndicate's forecasts. This is still an avoid.


WCP IPO: Final IPO Price Set, Still an Avoid

<ul>
<li>
<a href="https://www.smartkarma.com/entities/wcp-co-ltd" target="_blank" data-smartkarma-citation="entities:36076:1" rel="noopener">WCP (WCP KS)</a>, a lithium-ion batteries separator company, is set to launch its IPO of KRW900 billion (US$692 million). </li>
<li>We last discussed the IPO in <a href="https://www.smartkarma.com/insights/wcp-ipo-updated-prospectus-solid-1h22-unchanged-and-unattractive-price-range" target="_blank" data-smartkarma-citation="insights:79052" rel="noopener">WCP IPO: Updated Prospectus, Solid 1H22, Unchanged and Unattractive Price Range</a>.</li>
<li>Although the de-rating of peer multiples resulted in a decline in the syndicate's intrinsic value, the IPO price range of KRW80,000-100,000 remains unchanged. The IPO price range is unattractive.</li>
</ul>



WCP (WCP KS), a lithium-ion batteries separator company, is set to launch its IPO of KRW900 billion (US$692 million). 
We last discussed the IPO in WCP IPO: Updated Prospectus, Solid 1H22, Unchanged and Unattractive Price Range.
Although the de-rating of peer multiples resulted in a decline in the syndicate's intrinsic value, the IPO price range of KRW80,000-100,000 remains unchanged. The IPO price range is unattractive.


Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyze the monthly Shanghai/Shenzhen northbound Connect flows with our data engine.</li>
<li>We estimate that the inflows were USD 2,169.3 million last month, led by consumer staples and industrials.</li>
<li>We highlight flows for CATL, Longi Green, Yunnan Energy New Material, Yili, Moutai, Sanhua, Sungrow, Tbea, CMB, Beijing Oriental Yuhong. </li>
</ul>


We analyze the monthly Shanghai/Shenzhen northbound Connect flows with our data engine.
We estimate that the inflows were USD 2,169.3 million last month, led by consumer staples and industrials.
We highlight flows for CATL, Longi Green, Yunnan Energy New Material, Yili, Moutai, Sanhua, Sungrow, Tbea, CMB, Beijing Oriental Yuhong. 


Northbound Flows Monthly (August): CATL, Longi, Yunnan Energy New Material

China

Yunnan Energy New Material Co., Ltd. manufactures paper packaging materials. The Company produces and sells printing packages, packing boxes, liquid wrapping papers, high-grade wrapping papers, and other related products. Yunnan Energy New Material also produces and sells biaxially oriented polypropylen films.

Price Gauge
52-week Range	0.00 - 0.00
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Yunnan Energy New Material (002812 CH)

Shanghai/Shenzhen Northbound Connect: Weekly Moves (7 October 2022)

Overall, net outflow over the past week in the HK -Shanghai-Shenzhen Northbound Connect facilities was ~US$0.15bn, split between Shanghai...

David Blennerhassett

WCP IPO Trading - Peer Correction Means Price Cut Still Wasn’t Enough

WCP raised around US$314m via selling a mix of primary and secondary shares in its Korean IPO. In this note, we talk about the trading dynamics.

Sumeet Singh

WCP IPO: Final IPO Price Set, Still an Avoid

While the final IPO price is now reasonable, the process smacks desperation and calls into question the credibility of the syndicate's forecasts....

Arun George

WCP IPO: Valuation Uncompelling

Although the de-rating of peer multiples resulted in a decline in the syndicate's intrinsic value, the IPO price range of KRW80,000-100,000 remains...

Arun George

Northbound Flows Monthly (August): CATL, Longi, Yunnan Energy New Material

We estimate $2.2bn northbound inflows into A-share in August and highlight flows for CATL, Longi Green, Yunnan Energy New Material, Yili, Moutai,...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Shanghai/​​​​​​​​​​​​​​​Shenzhen Northbound Connect: Weekly Moves (7 October 2022)

Overall, net outflow over the past week in the HK -Shanghai-Shenzhen Northbound Connect facilities was ~US$0.15bn, split between Shanghai...

David Blennerhassett

WCP IPO Trading - Peer Correction Means Price Cut Still Wasn’t Enough

WCP raised around US$314m via selling a mix of primary and secondary shares in its Korean IPO. In this note, we talk about the trading dynamics.

Sumeet Singh

WCP IPO: Final IPO Price Set, Still an Avoid

While the final IPO price is now reasonable, the process smacks desperation and calls into question the credibility of the syndicate's forecasts....

Arun George

WCP IPO: Valuation Uncompelling

Although the de-rating of peer multiples resulted in a decline in the syndicate's intrinsic value, the IPO price range of KRW80,000-100,000 remains...

Arun George

Northbound Flows Monthly (August): CATL, Longi, Yunnan Energy New Material

We estimate $2.2bn northbound inflows into A-share in August and highlight flows for CATL, Longi Green, Yunnan Energy New Material, Yili, Moutai,...

Ke Yan, CFA, FRM

Shanghai/Shenzhen Northbound Connect: Weekly Moves (7 October 2022)