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

<a href="https://www.smartkarma.com/entities/japan-airlines-co-ltd" target="_blank" data-smartkarma-citation="entities:1184:1" rel="noopener">Japan Airlines (9201 JP)</a> plans to raise around US$1.4bn in order to shore up its balance sheet and aid its longer term transformation.
The shares are down over 50% this year, after having corrected by another 10% today.
In this insight, I'll talk about the deal dynamics and run the deal through our ECM framework.

Japan Airlines (9201 JP) plans to raise around US$1.4bn in order to shore up its balance sheet and aid its longer term transformation.
The shares are down over 50% this year, after having corrected by another 10% today.
In this insight, I'll talk about the deal dynamics and run the deal through our ECM framework.

Japan Airlines Placement - Given the Uncertain Outlook, Might Need Further Correction

Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Tracking Traffic

Focusing on Asian logistics, transportation, and travel companies

Thematic (Sector/Industry)

Updated with air departure and hotel information on October 30, our Chinese travel tracker dashboard shows a couple of interesting data points this week:<ol>
<li>The pace of flight departure growth slowed at the four Mainland Chinese airports we track, while airports outside Mainland China showed solid improvement. This is the opposite of what we've seen in most periods since we launched this product in April 2020.</li>
<li>Average hotel room rates quoted by <a href="https://www.smartkarma.com/entities/trip-com-group-ltd" target="_blank" data-smartkarma-citation="entities:180:1" rel="noopener">Trip.com (TCOM US)</a> firmed dramatically, but we worry about a single data point that had an outsized impact on weighted average rates. Even putting this odd figure aside, however, hotel rates improved slightly versus a month ago.</li>
</ol>

Updated with air departure and hotel information on October 30, our Chinese travel tracker dashboard shows a couple of interesting data points this week:
The pace of flight departure growth slowed at the four Mainland Chinese airports we track, while airports outside Mainland China showed solid improvement. This is the opposite of what we've seen in most periods since we launched this product in April 2020.
Average hotel room rates quoted by Trip.com (TCOM US) firmed dramatically, but we worry about a single data point that had an outsized impact on weighted average rates. Even putting this odd figure aside, however, hotel rates improved slightly versus a month ago.


TRACKING TRAFFIC's Travel Tracker Dashboard (October 30): Air Traffic Ex-Mainland China Firms

Equity Bottom-Up

<section class="figure">
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/168/547/original/BANNER-TOURISM.png?1604062858" class="editor-image img-responsive" data-smartkarma-image-id="168547"></figure>
</section>
Outbound Chinese travel demand remained weak in September, despite Macau doubling Chinese inbound traffic (again). Activity from China into most regional destinations remained comatose.
Domestic Chinese travel demand continued its recovery in September, and one metric even showed a modest YoY improvement. Other measures showed activity still far below year-ago levels. 
However, data also show that average domestic air segment length remains depressed, and this suggests consumers remain cautious regarding leisure travel.
We continue to expect only a gradual recovery in tourism and travel demand over the next few months.




Outbound Chinese travel demand remained weak in September, despite Macau doubling Chinese inbound traffic (again). Activity from China into most regional destinations remained comatose.
Domestic Chinese travel demand continued its recovery in September, and one metric even showed a modest YoY improvement. Other measures showed activity still far below year-ago levels. 
However, data also show that average domestic air segment length remains depressed, and this suggests consumers remain cautious regarding leisure travel.
We continue to expect only a gradual recovery in tourism and travel demand over the next few months.

TRACKING TRAFFIC/Chinese Tourism: Outbound: Comatose | Domestic: Fewer, Shorter Trips = New Normal?

HK/China Equity Long-Short

Osbert Tang, CFA

China Southern Airlines / Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/china-southern-airlines-co-ltd" target="_blank" data-smartkarma-citation="entities:1078:1" rel="noopener">China Southern Airlines (1055 HK)</a> is the only of the Big Three Chinese airlines to record a profit in 3Q20, thanks to its domestic exposure, good cost management and exchange gain from Rmb/USD appreciation. It logged a profit of Rmb711m in the quarter, significantly ahead of losses of Rmb671m for Air China and Rmb563m for CEA. We believe CSA's solid performance can extend into 4Q20, sustaining its outperformance against these two peers.Both CEA and Air China will continue to be weighted down by their international routes, with Air China further suffers from the burden from <a href="https://www.smartkarma.com/entities/cathay-pacific-airways-ltd" target="_blank" data-smartkarma-citation="entities:243:1" rel="noopener">Cathay Pacific Airways (293 HK)</a>. At 0.75x P/B, CSA stays firmly as our top pick in the Chinese airlines sector.

China Southern Airlines (1055 HK) is the only of the Big Three Chinese airlines to record a profit in 3Q20, thanks to its domestic exposure, good cost management and exchange gain from Rmb/USD appreciation. It logged a profit of Rmb711m in the quarter, significantly ahead of losses of Rmb671m for Air China and Rmb563m for CEA. We believe CSA's solid performance can extend into 4Q20, sustaining its outperformance against these two peers.Both CEA and Air China will continue to be weighted down by their international routes, with Air China further suffers from the burden from Cathay Pacific Airways (293 HK). At 0.75x P/B, CSA stays firmly as our top pick in the Chinese airlines sector.   

China Southern Airlines (1055 HK): Profit, Profit, Profit in 3Q20

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Last Week in Event SPACE: Coca Cola Amatil, Shimachu, AMP, Hitachi, Jardines, Evergrande

Hong Kong

Cathay Pacific Airways Limited operates scheduled airline services. The Company also provides related services, including airline catering, aircraft handling, and engineering.

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Cathay Pacific Airways (293 HK)

Japan Airlines Placement - Given the Uncertain Outlook, Might Need Further Correction

Japan Airlines (9201 JP) plans to raise around US$1.4bn in order to shore up its balance sheet and aid its longer term transformation.

Sumeet Singh

TRACKING TRAFFIC's Travel Tracker Dashboard (October 30): Air Traffic Ex-Mainland China Firms

Air traffic and hotel room rate data from October 30 show an improvement in activity outside Mainland China (albeit from a low base) and improved...

Tracking Traffic

TRACKING TRAFFIC/Chinese Tourism: Outbound: Comatose | Domestic: Fewer, Shorter Trips = New Normal?

September numbers show almost non-existent outbound travel but a continued gradual recovery in domestic travel demand. Shorter average domestic air...

Tracking Traffic

China Southern Airlines (1055 HK): Profit, Profit, Profit in 3Q20

CSA is the only of the Big Three to record a profit in 3Q20, thanks to its domestic exposure, good cost management and exchange gain from Rmb/USD...

Osbert Tang, CFA

Last Week in Event SPACE: Coca Cola Amatil, Shimachu, AMP, Hitachi, Jardines, Evergrande

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

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