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

KWG Living Group / Equity Capital Markets

<div><a href="https://www.smartkarma.com/entities/kwg-living-group" target="_blank" data-smartkarma-citation="entities:29231:1" rel="noopener">KWG Living Group (3913 HK)</a> is a property management service provider in China. KWG accounted for 0.09% of the total GFA under management in the China property management market in 2019, according to JLL. At the proposed IPO price range of HK$7.00-8.13 per share, KWG will have a market cap of HK$14,124.7-16,404.8 million ($1.8-2.1 billion). At the mid-point of the IPO price range, KWG will raise net proceeds of HK$2,755.5 million ($356 million). </div><div>Eight cornerstone investors will subscribe for 32.09% of the offer shares at the mid-point of the IPO price range. The cornerstone investors are Hillhouse Capital, Orchid China, Harvest Fund Management, Snow Lake Capital, Valliance Asset Management, <a href="https://www.smartkarma.com/entities/china-lesso-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:11598:1" rel="noopener">China Lesso Group Holdings (2128 HK)</a>, OP Capital and Aspex Management. </div><div class="content-highlight">In <a href="https://www.smartkarma.com/insights/kwg-living-group-ipo-initiation-urban-living" target="_blank" rel="noopener">our initiation note</a>, we highlighted that KWG’s fundamentals over the track record period are attractive. Overall, we think that the valuation implied by the IPO price range is reasonable for KWG's growth potential. </div>

KWG Living Group (3913 HK) is a property management service provider in China. KWG accounted for 0.09% of the total GFA under management in the China property management market in 2019, according to JLL. At the proposed IPO price range of HK$7.00-8.13 per share, KWG will have a market cap of HK$14,124.7-16,404.8 million ($1.8-2.1 billion). At the mid-point of the IPO price range, KWG will raise net proceeds of HK$2,755.5 million ($356 million). Eight cornerstone investors will subscribe for 32.09% of the offer shares at the mid-point of the IPO price range. The cornerstone investors are Hillhouse Capital, Orchid China, Harvest Fund Management, Snow Lake Capital, Valliance Asset Management, China Lesso Group Holdings (2128 HK), OP Capital and Aspex Management. In our initiation note, we highlighted that KWG’s fundamentals over the track record period are attractive. Overall, we think that the valuation implied by the IPO price range is reasonable for KWG's growth potential. 

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

Global indexes including the MSCI ACWI and ACWI ex-US are following in the MSCI EM index’s footsteps by breaking to new highs. This is bullish and signals a new leg higher is underway. Additionally, the US dollar is showing signs of a breakdown, something we view as a positive for global risk sentiment as long as the decline continues to be orderly. Overall our outlook remains bullish and we suggest buying any dips. Growth remains long-term leadership -- remain overweight. Attractive growth Sectors highlighted in today’s report include: Health Care, Services, Technology, and Communications

Global indexes including the MSCI ACWI and ACWI ex-US are following in the MSCI EM index’s footsteps by breaking to new highs. This is bullish and signals a new leg higher is underway. Additionally, the US dollar is showing signs of a breakdown, something we view as a positive for global risk sentiment as long as the decline continues to be orderly. Overall our outlook remains bullish and we suggest buying any dips. Growth remains long-term leadership -- remain overweight. Attractive growth Sectors highlighted in today’s report include: Health Care, Services, Technology, and Communications

U.S. Dollar Breakdown: Bullish For Ex-U.S. Equities

Global Special Situations & Strategy, SR Services Ltd

David Lepper

Global Special Situations & Strategy

SR Services Ltd

SR Services provides Strategic Knowledge and Solutions services for Family Offices and Corporate Business. 

We deliver this via advisory services, strategic planning, opportunity analysis/sourcing, as well as solution implementation. 

Whilst, we create intellectual discipline and operational leverage for your projects or daily activities, our ultimate objective is to empower whilst enhancing your decision making. 

Strategic Knowledge and Solutions

Cross Asset Strategy

Growth as an investment style has remained prominent over the COVID-19 period, reinforcing its decade long dominance over the value. The key question remains:  with earnings and value set to be a key theme over H2 2020 when exactly is the value style expected to reverse its underperformance trend? Our data suggest a greater than 66% chance of reversal shortly. As the value style reversal looks increasingly assured, exposure to GARP style investing and the underlying stocks are set to become even more important as we move into the second half of 2020. We highlight 17 stocks who fit the criteria in Q2 2020.

Growth as an investment style has remained prominent over the COVID-19 period, reinforcing its decade long dominance over the value. The key question remains:  with earnings and value set to be a key theme over H2 2020 when exactly is the value style expected to reverse its underperformance trend? Our data suggest a greater than 66% chance of reversal shortly. As the value style reversal looks increasingly assured, exposure to GARP style investing and the underlying stocks are set to become even more important as we move into the second half of 2020. We highlight 17 stocks who fit the criteria in Q2 2020.

Screening the Silk Road: Q2-2020 Small-Mid Cap GARP (Zulu Warrior Screening)

Growth continues to dominate: In July 2019 (<a href="https://www.smartkarma.com/insights/screening-the-silk-road-q3-2019-small-mid-cap-garp-zulu-warrior-screening" target="_blank" rel="noopener">Screening the Silk Road: Q3-2019 Small-Mid Cap GARP (Zulu Warrior Screening)</a>, we re-examined the divide between value and growth stocks, citing expectation of growth remaining dominant in investment style. The pirouette in Central Bank policies continues to see a reversal being delayed. We expect the bias towards growth style stocks to remain as we enter 2020. However, our analysis suggests a reversal in 2020 is increasing in probabilities.Our GARP selection screening continued to work well in H2 2019: Our H2 2019 basket delivered an average return of +16.7% (similar to H1 2019’s 16.6%), versus the MSCI Asia Pacific’s (Inc. Japan) +8.6% over the same period.Our screen offers up 6 unique liquid names that offer good alpha generation opportunity. One stock remains in this list from our July review.Subscribe via Smartkarma (or utilise your subscription) to learn how this screening review identified value in one stock in January 2019, that returned shareholders +87% in 6-months and another in July that returned +70% and gain greater insight into which names hold strong potential to deliver returns.

Growth continues to dominate: In July 2019 (Screening the Silk Road: Q3-2019 Small-Mid Cap GARP (Zulu Warrior Screening), we re-examined the divide between value and growth stocks, citing expectation of growth remaining dominant in investment style. The pirouette in Central Bank policies continues to see a reversal being delayed. We expect the bias towards growth style stocks to remain as we enter 2020. However, our analysis suggests a reversal in 2020 is increasing in probabilities.Our GARP selection screening continued to work well in H2 2019: Our H2 2019 basket delivered an average return of +16.7% (similar to H1 2019’s 16.6%), versus the MSCI Asia Pacific’s (Inc. Japan) +8.6% over the same period.Our screen offers up 6 unique liquid names that offer good alpha generation opportunity. One stock remains in this list from our July review.Subscribe via Smartkarma (or utilise your subscription) to learn how this screening review identified value in one stock in January 2019, that returned shareholders +87% in 6-months and another in July that returned +70% and gain greater insight into which names hold strong potential to deliver returns.

Screening the Silk Road: Q1-2020 Small-Mid Cap GARP (Zulu Warrior Screening)

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

In our weekly HK Connect Snippet series, we aim to help our investors understand the flow of southbound trades via the Hong Kong Connect, as analyzed by our proprietary data engine, and highlight interesting observations. We split the stocks eligible for the Hong Kong Connect trade into three groups: HSCEI component stocks, stocks with a market capitalization between USD 1 billion and USD 5 billion, and stocks with a market capitalization between USD 500 million and USD 1 billion.In this insight, we will highlight the proposed changes to the Hong Kong Connect rule that signals a step forward for the inclusion of <a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi Corp (1810 HK)</a> and <a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan Dianping (3690 HK)</a> into the Hong Kong Connect that enables mainland investors to trade without strict capital control.

In our weekly HK Connect Snippet series, we aim to help our investors understand the flow of southbound trades via the Hong Kong Connect, as analyzed by our proprietary data engine, and highlight interesting observations. We split the stocks eligible for the Hong Kong Connect trade into three groups: HSCEI component stocks, stocks with a market capitalization between USD 1 billion and USD 5 billion, and stocks with a market capitalization between USD 500 million and USD 1 billion.In this insight, we will highlight the proposed changes to the Hong Kong Connect rule that signals a step forward for the inclusion of Xiaomi Corp (1810 HK) and Meituan Dianping (3690 HK) into the Hong Kong Connect that enables mainland investors to trade without strict capital control. 

HK Connect Ideas: One Step Closer to Xiaomi/Meituan Inclusion (2019-08-02)

China

China Lesso Group Holdings Limited manufactures home building materials. The Company produces plumbing products, holistic kitchen materials, PVC doors and window profiles, sanitary ware, and other related products. China Lesso offers its products around the world.

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

China Lesso Group Holdings (2128 HK)

KWG Living Group IPO: Valuation Insights

At the mid-point of the IPO price range, KWG will raise net proceeds of $356 million. Overall, we think that the valuation implied by the IPO price...

Arun George

U.S. Dollar Breakdown: Bullish For Ex-U.S. Equities

Global indexes including the MSCI ACWI and ACWI ex-US are following in the MSCI EM index’s footsteps by breaking to new highs. This is bullish and...

Vermilion Research

Screening the Silk Road: Q2-2020 Small-Mid Cap GARP (Zulu Warrior Screening)

Growth as an investment style has remained prominent over the COVID-19 period, reinforcing its decade long dominance over the value. The key...

David Lepper

Screening the Silk Road: Q1-2020 Small-Mid Cap GARP (Zulu Warrior Screening)

Growth continues to dominate: In July 2019 (Screening the Silk Road: Q3-2019 Small-Mid Cap GARP (Zulu Warrior Screening), we re-examined the divide...

David Lepper

HK Connect Ideas: One Step Closer to Xiaomi/Meituan Inclusion (2019-08-02)

In our weekly HK Connect Snippet series, we aim to help our investors understand the flow of southbound trades via the Hong Kong Connect, as...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)