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 analyse the changes of A-H premium on 149 stocks over the last week. The average A-H premium was 98.6% as of Nov 1st.</li>
<li>The average A-H premium changed by 2.7ppt week-on-week, led by utilities, information technology, materials.</li>
<li>We highlight weekly changes in A-H premium for Chalco, ZOOMLION, FDZJ, FLAT GROUP, RemeGen, CanSinoBIO.</li>
</ul>


We analyse the changes of A-H premium on 149 stocks over the last week. The average A-H premium was 98.6% as of Nov 1st.
The average A-H premium changed by 2.7ppt week-on-week, led by utilities, information technology, materials.
We highlight weekly changes in A-H premium for Chalco, ZOOMLION, FDZJ, FLAT GROUP, RemeGen, CanSinoBIO.


A-H Premium Weekly (Nov 1st):Chalco, ZOOMLION, FDZJ, FLAT GROUP, RemeGen, CanSinoBIO

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Datang International Power Generation Company Limited develops and operates power plants, sells electricity, repairs and maintains power equipment, and provides power-related technical services.

<ul>
<li>Huge volumes continue to be traded on the mainland share markets. SOUTHBOUND volumes are dropping fast (down 28%wow, down 60-65% vs peak a few weeks ago).</li>
<li>AH premia expanded on average. Liquid H/A pairs saw the H underperform the A in the pair by 1.52% last week. </li>
<li>Continuing differences in opinion between onshore and offshore opinion regarding the vibe of Chinese stimulus will continue to lead to interesting dispersion. Identify the trend and jump in.</li>
</ul>


Huge volumes continue to be traded on the mainland share markets. SOUTHBOUND volumes are dropping fast (down 28%wow, down 60-65% vs peak a few weeks ago).
AH premia expanded on average. Liquid H/A pairs saw the H underperform the A in the pair by 1.52% last week. 
Continuing differences in opinion between onshore and offshore opinion regarding the vibe of Chinese stimulus will continue to lead to interesting dispersion. Identify the trend and jump in.


A/H Premium Tracker (To 1 Nov 2024): AH Premia Higher as A-Share Tech Underperforms

External broker reports(aggregated public sources), Topline Securities

Topline Securities

External broker reports(aggregated public sources)

Topline Securities is one of the fastest growing brokerage houses in Pakistan. It has strong equity brokerage, economic / equity research, mutual fund distribution, commodity trading and corporate finance & advisory functions. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

K-Electric Limited is a state-controlled power producer, which transmits and distributes electricity.

<ul><li>KEL has managed to obtain IPPs type tariff for its power generation segment compared to earlier model which was a bit different. In new MYT FY24-30, company has obtained "take or pay" structure for its power generation units with US$ ROE of 14% (against demand of 15%).</li><li>This new tariff will be unbundled in 3 different segments, i.e. (1) Generation, (2) Transmission and (3) Distribution (network/supply) Tariff. Earlier, company use to have a single tariff for all business segments. While as of now NEPRA has announced just Generation tariff for KEL for control period of 7 years or useful life of the plant, whichever is lower, except for BQS III which is allowed this tariff for 11 years, till completion of its debt servicing period.</li><li>KEL has in total 6 power generation plants/sites, and NEPRA has assigned separate tariff for each, in line with other IPPs.</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.

KEL has managed to obtain IPPs type tariff for its power generation segment compared to earlier model which was a bit different. In new MYT FY24-30, company has obtained "take or pay" structure for its power generation units with US$ ROE of 14% (against demand of 15%).This new tariff will be unbundled in 3 different segments, i.e. (1) Generation, (2) Transmission and (3) Distribution (network/supply) Tariff. Earlier, company use to have a single tariff for all business segments. While as of now NEPRA has announced just Generation tariff for KEL for control period of 7 years or useful life of the plant, whichever is lower, except for BQS III which is allowed this tariff for 11 years, till completion of its debt servicing period.KEL has in total 6 power generation plants/sites, and NEPRA has assigned separate tariff for each, in line with other IPPs.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.

K-Electric (KEL): $ ROE and take or pay allowed

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

PT Pertamina Geothermal Energy is a green energy company. The Company offers geothermal generation services. Pertamina Geothermal Energy serves clients in Indonesia.

<ul>
<li>In today's Morning Views publication we comment on developments of the following high yield issuers: Pertamina Geothermal, Pan Brothers, ABM Investama</li>
<li>
Market Comment: In the US, Q3/24 annualised GDP growth came in marginally below estimates at 2.8% q-o-q (2.9% e / 3.0% p).</li>
<li>The improvement was driven by stronger than expected personal consumption of 3.7% (3.3% e / 2.8% p), which contributed almost 2.5 ppts to the GDP increase. </li>
</ul>


In today's Morning Views publication we comment on developments of the following high yield issuers: Pertamina Geothermal, Pan Brothers, ABM Investama

Market Comment: In the US, Q3/24 annualised GDP growth came in marginally below estimates at 2.8% q-o-q (2.9% e / 3.0% p).
The improvement was driven by stronger than expected personal consumption of 3.7% (3.3% e / 2.8% p), which contributed almost 2.5 ppts to the GDP increase. 


The Hub Power Company Limited owns, operates and maintains an oil fired power station in Pakistan.  The Company delivers electricity for distribution to industrial, commerce, agricultural, and domestic customers.  Hub's clients include The Water and Power Development Authority.

<ul><li>Hub Power Company (HUBC) announced its 1QFY25 result wherein company reported earnings of Rs19bn (EPS of Rs14.74), up 12% YoY while down 7% QoQ.</li><li>HUBC did not declare a dividend for 1QFY25, falling short of industry expectations. This could be due base plants early expiration and focus on expansions, in our view.</li><li>Topline decreased by 5% YoY and 9% QoQ to Rs32bn in 1QFY25 primarily due to lower load factor on Narowal plant, China Hub Power Generation (CPHGC) and Thar Energy Limited (TEL).</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.

Hub Power Company (HUBC) announced its 1QFY25 result wherein company reported earnings of Rs19bn (EPS of Rs14.74), up 12% YoY while down 7% QoQ.HUBC did not declare a dividend for 1QFY25, falling short of industry expectations. This could be due base plants early expiration and focus on expansions, in our view.Topline decreased by 5% YoY and 9% QoQ to Rs32bn in 1QFY25 primarily due to lower load factor on Narowal plant, China Hub Power Generation (CPHGC) and Thar Energy Limited (TEL).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.

Hub Power Company (HUBC): 1QFY25 EPS at Rs14.74, up 12% YoY While Down 7% QoQ

Utilities
Insights in the Utilities Space

A-H Premium Weekly (Nov 1st):Chalco, ZOOMLION, FDZJ, FLAT GROUP, RemeGen, CanSinoBIO

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Chalco, ZOOMLION, FDZJ, FLAT GROUP, RemeGen, CanSinoBIO.

Ke Yan, CFA, FRM

K-Electric (KEL): $ ROE and take or pay allowed

KEL has managed obtained IPPs type tariff for its power generation segment compared to earlier model which was a bit different. In new...

Topline Securities

Lucror Analytics - Morning Views Asia

In today's Morning Views publication we comment on developments of the following high yield issuers: Pertamina Geothermal, Pan Brothers, ABM Investama

Lucror Analytics

Hub Power Company (HUBC): 1QFY25 EPS at Rs14.74, up 12% YoY While Down 7% QoQ

Hub Power Company (HUBC) announced its 1QFY25 result wherein company reported earnings of Rs19bn (EPS of Rs14.74), up 12% YoY while down 7%...

Topline Securities

A-H Premium Weekly (Nov 1st):Chalco, ZOOMLION, FDZJ, FLAT GROUP, RemeGen, CanSinoBIO

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Chalco, ZOOMLION, FDZJ, FLAT GROUP, RemeGen, CanSinoBIO.

Ke Yan, CFA, FRM

A/H Premium Tracker (To 1 Nov 2024): AH Premia Higher as A-Share Tech Underperforms

AH premia widened this week with liquid spreads widening more than average spreads. The premium curve was inconsistent. Opportunistic reversion...

Travis Lundy

K-Electric (KEL): $ ROE and take or pay allowed

KEL has managed obtained IPPs type tariff for its power generation segment compared to earlier model which was a bit different. In new...

Topline Securities

Lucror Analytics - Morning Views Asia

In today's Morning Views publication we comment on developments of the following high yield issuers: Pertamina Geothermal, Pan Brothers, ABM Investama

Lucror Analytics

Hub Power Company (HUBC): 1QFY25 EPS at Rs14.74, up 12% YoY While Down 7% QoQ

Hub Power Company (HUBC) announced its 1QFY25 result wherein company reported earnings of Rs19bn (EPS of Rs14.74), up 12% YoY while down 7%...

Topline Securities