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.

Event-Driven

<p>In our previous note (link <a href="https://www.smartkarma.com/insights/kingsoft-stub-trade-record-low-since-office-software-listing" target="_blank" rel="noopener">here</a>), we highlighted that the stub value of Kingsoft (3888 HK) reached a record low since the listing of its main subsidiary <a href="https://www.smartkarma.com/entities/beijing-kingsoft-office-so-a" target="_blank" data-smartkarma-citation="entities:28842:1" rel="noopener">Beijing Kingsoft Office So-A (688111 CH)</a>. The Beijing Kingsoft Office has been outperforming the A-share market by a big margin recently, thanks to the work-from-home trend due to the coronavirus outbreak. Since our last note on Feb 6th, Beijing Kingsoft returned 22.65% whereas Kingsoft (3888 HK) only returned -1.7% over the same period. </p>
<p>As the Kingsoft's Cloud business will be listed on the US exchange soon, we believe that the valuation for the holding company, Kingsoft (3888 HK) will become more transparent for investors. We think there will be at least a 30% upside from Kingsoft's current share price and would go long Kingsoft. </p>

In our previous note (link here), we highlighted that the stub value of Kingsoft (3888 HK) reached a record low since the listing of its main subsidiary Beijing Kingsoft Office So-A (688111 CH). The Beijing Kingsoft Office has been outperforming the A-share market by a big margin recently, thanks to the work-from-home trend due to the coronavirus outbreak. Since our last note on Feb 6th, Beijing Kingsoft returned 22.65% whereas Kingsoft (3888 HK) only returned -1.7% over the same period. 
As the Kingsoft's Cloud business will be listed on the US exchange soon, we believe that the valuation for the holding company, Kingsoft (3888 HK) will become more transparent for investors. We think there will be at least a 30% upside from Kingsoft's current share price and would go long Kingsoft. 

Kingsoft Trade Idea Update: Cloud Listing to Crystalize the Value

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Bottom-Up

Jardine Matheson Holdings / Equity Bottom-Up

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<p>A double-dose of StubWorld this week ...</p>
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<p><a href="https://www.smartkarma.com/entities/jardine-matheson-hldgs-ltd" target="_blank" data-smartkarma-citation="entities:19718:1" rel="noopener">Jardine Matheson Hldgs (JM SP)</a>'s discount to NAV - stand-alone and relative to <a href="https://www.smartkarma.com/entities/jardine-strategic-hldgs-ltd" target="_blank" data-smartkarma-citation="entities:15081:1" rel="noopener">Jardine Strategic Hldgs (JS SP)</a> - is at one-year lows. The simple ratio - JM/JS -  is well above the long-term average.</p>
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<p>Preceding my comments on Jardines and <a href="https://www.smartkarma.com/entities/kingsoft-corp-ltd" target="_blank" data-smartkarma-citation="entities:492:1" rel="noopener">Kingsoft Corp (3888 HK)</a> are the latest setup/unwind tables for Asia-Pacific Holdcos.</p>
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<p>These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent - of at least 20%.</p>
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A double-dose of StubWorld this week ...



Jardine Matheson Hldgs (JM SP)'s discount to NAV - stand-alone and relative to Jardine Strategic Hldgs (JS SP) - is at one-year lows. The simple ratio - JM/JS -  is well above the long-term average.



Preceding my comments on Jardines and Kingsoft Corp (3888 HK) are the latest setup/unwind tables for Asia-Pacific Holdcos.



These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent - of at least 20%.



StubWorld: Matheson Nudging Extreme Levels As Buybacks Continue

China

Beijing Kingsoft Office Software, Inc. develops and distributes software products. The Company develops anti virus software, office software, and other products. Beijing Kingsoft Office Software also provides cloud computing, system integration, and other services.

Beijing Kingsoft Office Softwa (688111 CH)

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Beijing Kingsoft Office Softwa (688111 CH)

Kingsoft Trade Idea Update: Cloud Listing to Crystalize the Value

In our previous note (link here), we highlighted that the stub value of Kingsoft (3888 HK) reached a record low since the listing of its main...

Ke Yan, CFA, FRM

StubWorld: Matheson Nudging Extreme Levels As Buybacks Continue

A double-dose of StubWorld this week ... Jardine Matheson Hldgs (JM SP)'s discount to NAV - stand-alone and relative to Jardine Strategic Hldgs...

David Blennerhassett

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