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 143 stocks over the last week. The average A-H premium was 111.9% as of Mar 3rd.</li>
<li>The average A-H premium changed by 0.3ppt week on week, led by communication services, consumer discretionary, financials and offset by real estate, information technology, industrials.</li>
<li>We highlight weekly changes in A-H premium for Xinjiang Goldwind, ZTE, China Southern, CRRC, GWM, China Telecom, CCCC, China Oilfield.</li>
</ul>


We analyse the changes of A-H premium on 143 stocks over the last week. The average A-H premium was 111.9% as of Mar 3rd.
The average A-H premium changed by 0.3ppt week on week, led by communication services, consumer discretionary, financials and offset by real estate, information technology, industrials.
We highlight weekly changes in A-H premium for Xinjiang Goldwind, ZTE, China Southern, CRRC, GWM, China Telecom, CCCC, China Oilfield.


A-H Premium Weekly (Mar 3rd): Xinjiang Goldwind, ZTE, China Southern, CRRC, GWM, China Telecom

<ul>
<li>We analyse the changes of A-H premium on 143 stocks over the last week. The average A-H premium was 111.6% as of Feb 24th.</li>
<li>The average A-H premium changed by 2.0ppt week on week, led by utilities, health care, financials and offset by information technology, industrials.</li>
<li>We highlight weekly changes in A-H premium for Xinjiang Gold Wind, China Shenhua, CICC, GWM, Shanghai Fudan.</li>
</ul>


We analyse the changes of A-H premium on 143 stocks over the last week. The average A-H premium was 111.6% as of Feb 24th.
The average A-H premium changed by 2.0ppt week on week, led by utilities, health care, financials and offset by information technology, industrials.
We highlight weekly changes in A-H premium for Xinjiang Gold Wind, China Shenhua, CICC, GWM, Shanghai Fudan.


A-H Premium Weekly (Feb 24th): Xinjiang Gold Wind, China Shenhua, CICC, GWM, Shanghai Fudan

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Thematic (Sector/Industry)

<ul><li>Major aerial work platform (AWP) manufacturers (Terex, Oshkosh) and rental company (United Rentals) in the US provide bullish guidance on 2023E outlook after reporting their 2022 results.</li><li>Key takeaways: (1) AWP manufacturers saw strong order flow with backlog visibility of &gt;12 months; (2) The mega projects, which are less macro reliant, will provide both rental companies and AWP manufacturers with growth certainty over the coming years; (3) manufacturers’ margin improvement trend will continue despite the fact that supply chain will remain a constraint this year, suggesting strong pricing power.</li><li>All these reaffirm our positive stance on the AWP sector this year. </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.

Major aerial work platform (AWP) manufacturers (Terex, Oshkosh) and rental company (United Rentals) in the US provide bullish guidance on 2023E outlook after reporting their 2022 results.Key takeaways: (1) AWP manufacturers saw strong order flow with backlog visibility of &gt;12 months; (2) The mega projects, which are less macro reliant, will provide both rental companies and AWP manufacturers with growth certainty over the coming years; (3) manufacturers’ margin improvement trend will continue despite the fact that supply chain will remain a constraint this year, suggesting strong pricing power.All these reaffirm our positive stance on the AWP sector this year. 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.

China Construction Machinery – Upbeat Guidance from US AWP Manufacturers

<ul><li>What is new? The 24% YoY decline in excavator sales in 2022 (for the industry as a whole) is largely in line with our expectation.</li><li>Meanwhile, Jiangsu Hengli’s scheduled production of excavator cylinders in Jan 2023 drops &gt;20% YoY, likely due to (1) the pandemic impact and (2) base effect of CNY.</li><li>On the back of reopening and easing liquidity, we expect demand for excavator to pick up moderately in Feb/Mar and we maintain our forecast of 10% YoY increase in the industry demand in 2023E (China: +15%, export: +5%).</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.

What is new? The 24% YoY decline in excavator sales in 2022 (for the industry as a whole) is largely in line with our expectation.Meanwhile, Jiangsu Hengli’s scheduled production of excavator cylinders in Jan 2023 drops &gt;20% YoY, likely due to (1) the pandemic impact and (2) base effect of CNY.On the back of reopening and easing liquidity, we expect demand for excavator to pick up moderately in Feb/Mar and we maintain our forecast of 10% YoY increase in the industry demand in 2023E (China: +15%, export: +5%).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.

China Construction Machinery – Prefer AWP to excavator in the near term

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>The data in this insight is collated from the "shareholding disclosure" link on the HKEx website.</li>
<li>Often there is a corresponding HKEx announcement on the increase - or decrease - in the shareholding by directors. However, such disclosures are by no means an absolute. </li>
<li>These insights may flag those companies where shares have been pledged. Stocks mentioned include: <a href="https://www.smartkarma.com/entities/perfect-medical-health-management" target="_blank" data-smartkarma-citation="entities:3639:1" rel="noopener">Perfect Medical Health (1830 HK)</a>, <a href="https://www.smartkarma.com/entities/hong-kong-aerospace-technology-group-limited" target="_blank" data-smartkarma-citation="entities:33813:1" rel="noopener">Hong Kong Aerospace Technology (1725 HK)</a>, and <a href="https://www.smartkarma.com/entities/esr-group-limited" target="_blank" data-smartkarma-citation="entities:27983:1" rel="noopener">ESR Group (1821 HK)</a>.</li>
</ul>


The data in this insight is collated from the "shareholding disclosure" link on the HKEx website.
Often there is a corresponding HKEx announcement on the increase - or decrease - in the shareholding by directors. However, such disclosures are by no means an absolute. 
These insights may flag those companies where shares have been pledged. Stocks mentioned include: Perfect Medical Health (1830 HK), Hong Kong Aerospace Technology (1725 HK), and ESR Group (1821 HK).


Hong Kong CEO & Director Dealings (2 Dec): Perfect Medical, Hong Kong Aerospace, ESR Group, Tian An

China

CIMC Vehicles (Group) Co., Ltd. operates as a semi trailers and truck bodies manufacturer. The Company produces chassis trailers, flatbed trailers, fence trailers, tank trailers, refrigerated trailers, van trailers, and other equipment. CIMC Vehicles (Group) markets its products worldwide.

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CIMC Vehicle Group Co Ltd (1839 HK)

A-H Premium Weekly (Mar 3rd): Xinjiang Goldwind, ZTE, China Southern, CRRC, GWM, China Telecom

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Xinjiang Goldwind, ZTE, China Southern, CRRC, GWM, China...

Ke Yan, CFA, FRM

A-H Premium Weekly (Feb 24th): Xinjiang Gold Wind, China Shenhua, CICC, GWM, Shanghai Fudan

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Xinjiang Gold Wind, China Shenhua, CICC, GWM, Shanghai Fudan.

Ke Yan, CFA, FRM

China Construction Machinery – Upbeat Guidance from US AWP Manufacturers

Major aerial work platform (AWP) manufacturers (Terex, Oshkosh) and rental company (United Rentals) in the US provide bullish guidance on 2023E...

CMB International

China Construction Machinery – Prefer AWP to excavator in the near term

What is new? The 24% YoY decline in excavator sales in 2022 (for the industry as a whole) is largely in line with our expectation.

CMB International

Hong Kong CEO & Director Dealings (2 Dec): Perfect Medical, Hong Kong Aerospace, ESR Group, Tian An

The data in this insight is collated from the "shareholding disclosure" link on the HKEx website. These insights also flag those companies where...

David Blennerhassett

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52-week Range

Market Cap (USDm)

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