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>China just announced game approval for September batch. More games were approved in September compared to July, June and August.</li>
<li>Pace of China game approval continued to pick up albeit at a much slower pace than pre-tightening.</li>
<li>Tencent continue to score zero and Netease managed to get one game approved in 14 months. </li>
</ul>


China just announced game approval for September batch. More games were approved in September compared to July, June and August.
Pace of China game approval continued to pick up albeit at a much slower pace than pre-tightening.
Tencent continue to score zero and Netease managed to get one game approved in 14 months. 


Tencent/Netease: September Batch of Game Approval & Thoughts on Trading

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<ul>
<li>NetDragon Websoft announced that it has appointed Ms. Tang Wu (a virtual humanoid robot powered by AI) as its new CEO which would be the first ever in the world. </li>
<li>The company's education revenue increased by 71.2% YoY to reach 2.4 billion RMB in 1H 2022. Profitability of the edtech business is also improving.</li>
<li>Despite the company's lower valuation multiples than its peers combined with catalysts including improving edtech business, we are cautious on its shares mainly due to the overall market related risks. </li>
</ul>


NetDragon Websoft announced that it has appointed Ms. Tang Wu (a virtual humanoid robot powered by AI) as its new CEO which would be the first ever in the world. 
The company's education revenue increased by 71.2% YoY to reach 2.4 billion RMB in 1H 2022. Profitability of the edtech business is also improving.
Despite the company's lower valuation multiples than its peers combined with catalysts including improving edtech business, we are cautious on its shares mainly due to the overall market related risks. 


Netdragon Websoft - Ms Tang Yu Becomes World's First Virtual Humanoid Robot CEO

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>There are 24 adds and 14 deletes for the Hang Seng Composite Index (HSCI) at the September rebalance to take the number of index constituents up to 518.</li>
<li>19 of the 24 HSCI inclusions will be added to Southbound Stock Connect, while 12 of the 14 HSCI deletions will be removed from Southbound Stock Connect.</li>
<li>Five of the HSCI constituents could be removed from Southbound Stock Connect only since the average market cap over the last year is less than HK$5bn.</li>
</ul>


There are 24 adds and 14 deletes for the Hang Seng Composite Index (HSCI) at the September rebalance to take the number of index constituents up to 518.
19 of the 24 HSCI inclusions will be added to Southbound Stock Connect, while 12 of the 14 HSCI deletions will be removed from Southbound Stock Connect.
Five of the HSCI constituents could be removed from Southbound Stock Connect only since the average market cap over the last year is less than HK$5bn.


HSCI Index Rebalance: 24 Adds, 14 Deletes & Changes to Stock Connect

<ul>
<li>China just announced game approval for August batch. More games were approved in August compared to July and June.</li>
<li>Pace of China game approval continued to pick up albeit at a much slower pace than pre-tightening.</li>
<li>Both Tencent and Netease will be under increasing pressure as the duo continue to score zero in August, making it the fourth time with no games approved since resumption . </li>
</ul>


China just announced game approval for August batch. More games were approved in August compared to July and June.
Pace of China game approval continued to pick up albeit at a much slower pace than pre-tightening.
Both Tencent and Netease will be under increasing pressure as the duo continue to score zero in August, making it the fourth time with no games approved since resumption . 


Tencent/Netease: Increasing Pressure with Zero Approval in August Batch & Thoughts on Trading

<ul>
<li>China just announced game approval for July batch. More games were approved in July compared to June and May.</li>
<li>Pace of China game approval has picked up albeit at a much slower pace than pre-tightening.</li>
<li>Tencent and Netease will be under pressure as they continue to score zero in July domestic game approval. </li>
</ul>


China just announced game approval for July batch. More games were approved in July compared to June and May.
Pace of China game approval has picked up albeit at a much slower pace than pre-tightening.
Tencent and Netease will be under pressure as they continue to score zero in July domestic game approval. 


Tencent/Netease: Under Pressure with No Game Approval in July

China

iDreamSky Technology Holdings Limited operates as a holding company. The Company, through its subsidiaries, designs, develops, and distributes video games for mobile, consoles, PC, and tablets, as well as offers live gaming services. iDreamSky Technology Holdings serves customers worldwide.

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iDreamsky Technology Limited (1119 HK)

Tencent/Netease: September Batch of Game Approval & Thoughts on Trading

We analyzed latest game approval for China mobile game players and we highlight that Tencent continue to score zero and Netease managed to get one...

Ke Yan, CFA, FRM

Netdragon Websoft - Ms Tang Yu Becomes World's First Virtual Humanoid Robot CEO

NetDragon Websoft announced that it has appointed Ms. Tang Wu (a virtual humanoid robot powered by AI) as its new CEO which would be the first ever...

Douglas Kim

HSCI Index Rebalance: 24 Adds, 14 Deletes & Changes to Stock Connect

There are 24 adds and 14 deletes for the HSCI at the September rebalance. 19 stocks will be added to Stock Connect and 12 will be removed. Some of...

Brian Freitas

Tencent/Netease: Increasing Pressure with Zero Approval in August Batch & Thoughts on Trading

We analyzed the August batch of game approval. We note that Tencent and Netease continued to score zero in this batch, for the 4th consecutive...

Ke Yan, CFA, FRM

Tencent/Netease: Under Pressure with No Game Approval in July

China regulator released July batch of game approval. Tencent and Netease will be under pressure as they continue to score zero.

Ke Yan, CFA, FRM

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