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

Bank Of Queensland / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/bank-of-queensland-ltd" target="_blank" data-smartkarma-citation="entities:16606:1" rel="noopener">Bank Of Queensland (BOQ AU)</a> plans to raise around US$276m (A$350m) via an institutional placement and another US$790m (A$1bn) via an entitlement offering to fund its purchase of ME bank. We have covered the prior placement as well in Nov 2019, <a href="https://www.smartkarma.com/insights/bank-of-queensland-placement-discount-looks-enticing-but-the-deal-appears-opportunistic" target="_blank" rel="noopener">Bank of Queensland Placement - Discount Looks Enticing but the Deal Appears Opportunistic.</a>

Bank Of Queensland (BOQ AU) plans to raise around US$276m (A$350m) via an institutional placement and another US$790m (A$1bn) via an entitlement offering to fund its purchase of ME bank. We have covered the prior placement as well in Nov 2019, Bank of Queensland Placement - Discount Looks Enticing but the Deal Appears Opportunistic.

Bank of Queensland Placement - Is Transformative but Might Not Be as Great in the Short-Term

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Quantitative Analysis

In this Insight, we look at Asian financial pairs that normally trade in a tight band versus each other and are now trading at levels that are close to an extreme, making it likely that there could be a short term reversal.These are all large cap financials that trade in excess of US$20m a day, so implementing the strategy should be possible using stock borrow or single stock futures.These ideas are based purely off the stock price history and we recommend investors use a fundamental overlay to determine if the price action is reflective of changes in the sector that benefit one company at the expense of the other, or benefit one company more than the other.

In this Insight, we look at Asian financial pairs that normally trade in a tight band versus each other and are now trading at levels that are close to an extreme, making it likely that there could be a short term reversal.These are all large cap financials that trade in excess of US$20m a day, so implementing the strategy should be possible using stock borrow or single stock futures.These ideas are based purely off the stock price history and we recommend investors use a fundamental overlay to determine if the price action is reflective of changes in the sector that benefit one company at the expense of the other, or benefit one company more than the other.

Equity L/S Analyst | Forensic Accounting | India, Yellowstone Equity

Ankit Agrawal, CFA

Equity L/S Analyst | Forensic Accounting | India

Since our Original on <a href="https://www.smartkarma.com/insights/asia-dividend-forecasting-the-rise-and-fall-of-dividends-across-asian-companies" target="_blank" data-smartkarma-citation="insights:43022" rel="noopener">Asia Dividend Forecasting | The Rise and Fall of Dividends Across Asian Companies</a>, published on Sep 30 2020, this is our first quarterly update. Our models take into account latest reported fiscal year-end financials to provide updated results. We also discuss companies where there is notable change in our conviction level based on updated data.
At the webinar in October, there was also a request for conducting price movement analysis corresponding to forward dividend growth/cut for our back-test results. This analysis is now available. Our results show a high correlation between price movements and dividend growth/cut, suggesting that users of our models will benefit from guiding their investment decisions based on dividend growth/cut outlook.

Since our Original on Asia Dividend Forecasting | The Rise and Fall of Dividends Across Asian Companies, published on Sep 30 2020, this is our first quarterly update. Our models take into account latest reported fiscal year-end financials to provide updated results. We also discuss companies where there is notable change in our conviction level based on updated data.
At the webinar in October, there was also a request for conducting price movement analysis corresponding to forward dividend growth/cut for our back-test results. This analysis is now available. Our results show a high correlation between price movements and dividend growth/cut, suggesting that users of our models will benefit from guiding their investment decisions based on dividend growth/cut outlook.

Asia Dividend Forecasting | Quarterly Update 1.0

Silver Point

Thomas J. Monaco

Independent Insight Provider

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

Equity Bottom-Up

*Interesting Strategic Move: On December 23, 2020, Challenger (CGF.AU) announced its intention to acquire MyLifeMyFinance (MLMF), an Australian savings &amp; loan (S&amp;L) for AUD 35 mn from MyLifeMyMoney Superannuation Fund (known as “Catholic Super”). Following the acquisition, Challenger will hold an Australian Prudential Regulation Authority (APRA) authorized deposit-taking institution (ADI) license. Unlike traditional Australian banks, Challenger will relay far less on home lending an rather focus its asset generation on existing investment activities;  and*But A Pricey Deal: While this is an interesting strategic transaction for Challenger, it was not cheap. Challenger paid 2.4x P/BV for MLMF based on 3Q20 figures – well above the commercial bank average in Australia. We infer from Challenger’s guidance for FY 2021 that MLMF generates approximately AUD 2 mn per annum – implying a P/E of 17.5x. Taking its 60 bp cover of stated loans, we are confident that MLMF is actually understating its full cost by between AUD 2-3 mn. It’s a good thing the absolute dollar value was tiny.

*Interesting Strategic Move: On December 23, 2020, Challenger (CGF.AU) announced its intention to acquire MyLifeMyFinance (MLMF), an Australian savings &amp; loan (S&amp;L) for AUD 35 mn from MyLifeMyMoney Superannuation Fund (known as “Catholic Super”). Following the acquisition, Challenger will hold an Australian Prudential Regulation Authority (APRA) authorized deposit-taking institution (ADI) license. Unlike traditional Australian banks, Challenger will relay far less on home lending an rather focus its asset generation on existing investment activities;  and*But A Pricey Deal: While this is an interesting strategic transaction for Challenger, it was not cheap. Challenger paid 2.4x P/BV for MLMF based on 3Q20 figures – well above the commercial bank average in Australia. We infer from Challenger’s guidance for FY 2021 that MLMF generates approximately AUD 2 mn per annum – implying a P/E of 17.5x. Taking its 60 bp cover of stated loans, we are confident that MLMF is actually understating its full cost by between AUD 2-3 mn. It’s a good thing the absolute dollar value was tiny. 

*Near-Term Pain: The Australian Prudential Regulatory Authority (APRA) completed its review of WestPac’s risk governance program and Westpac is now likely to enter into enforcement action and remediation. In addition, APRA has also announced that it had taken action against Westpac New Zealand due to the subsidiary’s breach of liquidity requirements; and*Small Gain: Management announced the widely anticipated sale of its general insurance business to Allianz (ALV.GR) in addition to an exclusive 20-year agreement to distribute general insurance products to Westpac customers for AUD 725 mn.

*Near-Term Pain: The Australian Prudential Regulatory Authority (APRA) completed its review of WestPac’s risk governance program and Westpac is now likely to enter into enforcement action and remediation. In addition, APRA has also announced that it had taken action against Westpac New Zealand due to the subsidiary’s breach of liquidity requirements; and*Small Gain: Management announced the widely anticipated sale of its general insurance business to Allianz (ALV.GR) in addition to an exclusive 20-year agreement to distribute general insurance products to Westpac customers for AUD 725 mn.

WestPac Banking – One Step Forward, Two Steps Back

Australia

Australia and New Zealand Banking Group Limited provides banking services. The Bank offers accounts checking, savings  deposits, money market, mortgage, and term loans services, as well as card facilities and Internet  banking services. Australia and New Zealand Banking Group serves customers in New Zealand and Australia.

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Australia & New Zealand Bankin (AN3 AU)

Bank of Queensland Placement - Is Transformative but Might Not Be as Great in the Short-Term

Bank Of Queensland (BOQ AU) plans to raise around US$276m via an institutional placement and another US$790m via an entitlement offering to fund...

Sumeet Singh

Pairs Trading Ideas - Asian Financials

We look at liquid and large cap pairs from the financials sector that exhibit mean-reversion and are currently trading at or near an extreme based...

Brian Freitas

Asia Dividend Forecasting | Quarterly Update 1.0

We incorporate latest reported financial data to provide updated results for our Asia Dividend Forecasting models. We also ran an insightful price...

Ankit Agrawal, CFA

Challenger - Big Opportunity

CHALLENGER LTD: Challenger announced its intention to acquire MyLifeMyFinance . This deal, while small, was not cheap - but no doubt will be...

Thomas J. Monaco

WestPac Banking – One Step Forward, Two Steps Back

WESTPAC BANKING: APRA Hits Westpac With Remediation For Risk Governance And New Zealand Liquidity Charges, While Allianz Buys Insurance Unit.

Thomas J. Monaco

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