Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Yunnan Energy New Material  / Event-Driven

<ul>
<li>Inside is a recap of movements in the last week relating to the Hong Kong Stock Exchange -Shanghai and Shenzhen Northbound Connect facilities, broken down by company and industry.</li>
<li>Overall, net outflow over the past week was ~US$1.83bn, split between Shanghai (-US$1.3bn) and Shenzhen (-US$0.5bn).</li>
<li>The largest inflows were into <a href="https://www.smartkarma.com/entities/yunnan-chuangxin-new-material" target="_blank" data-smartkarma-citation="entities:27135:1" rel="noopener">Yunnan Chuangxin New (002812 CH)</a> and <a href="https://www.smartkarma.com/entities/shanghai-baosight-software-co" target="_blank" data-smartkarma-citation="entities:28228:1" rel="noopener">Shanghai Baosight (600845 CH)</a>. The largest outflows were in <a href="https://www.smartkarma.com/entities/sungrow-power-supply-co-ltd" target="_blank" data-smartkarma-citation="entities:4255:1" rel="noopener">Sungrow Power (300274 CH)</a> and <a href="https://www.smartkarma.com/entities/ping-an-bank-co-ltd-a" target="_blank" data-smartkarma-citation="entities:681:1" rel="noopener">Ping An Bank (000001 CH)</a>.</li>
</ul>


Inside is a recap of movements in the last week relating to the Hong Kong Stock Exchange -Shanghai and Shenzhen Northbound Connect facilities, broken down by company and industry.
Overall, net outflow over the past week was ~US$1.83bn, split between Shanghai (-US$1.3bn) and Shenzhen (-US$0.5bn).
The largest inflows were into Yunnan Chuangxin New (002812 CH) and Shanghai Baosight (600845 CH). The largest outflows were in Sungrow Power (300274 CH) and Ping An Bank (000001 CH).


Shanghai/​​​​​​​​​Shenzhen Northbound Connect: Weekly Moves (22 July 2022)

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 analyze the monthly Shanghai/Shenzhen northbound Connect flows with our data engine.</li>
<li>We estimate that inflows for June was USD 11bn, led by consumer staple and financial sectors.</li>
<li>We highlight monthly inflows into Moutai, Yili, East Money, Tongwei, and Inovance.</li>
</ul>


We analyze the monthly Shanghai/Shenzhen northbound Connect flows with our data engine.
We estimate that inflows for June was USD 11bn, led by consumer staple and financial sectors.
We highlight monthly inflows into Moutai, Yili, East Money, Tongwei, and Inovance.


Northbound Flows Monthly (June): $11bn Inflows

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

Imeik Technology Development C / Equity Bottom-Up

<ul>
<li>Imeik keeps its outstanding financial performance in 2021/2022Q1. On the surface, it looks prosperous, but its development strategy, product layout and resilience in front of risks would bring many uncertainties.</li>
<li>Considering the pandemic/lockdown and a slowing economy in China, the revenue growth in 2022 could fall to about 50%, then to about 40% and 30% in 2023 and 2024 respectively.</li>
<li>Imeik’s valuation is “unreasonably high”, which is expected to be lower than Bloomage in the future. Anything that deviates from fundamentals would inevitably return to the origin. </li>
</ul>


Imeik keeps its outstanding financial performance in 2021/2022Q1. On the surface, it looks prosperous, but its development strategy, product layout and resilience in front of risks would bring many uncertainties.
Considering the pandemic/lockdown and a slowing economy in China, the revenue growth in 2022 could fall to about 50%, then to about 40% and 30% in 2023 and 2024 respectively.
Imeik’s valuation is “unreasonably high”, which is expected to be lower than Bloomage in the future. Anything that deviates from fundamentals would inevitably return to the origin. 


Imeik Technology Development (300896.CH) - Superficial Prosperity Hardly Masks Underlying Risks

Bloomage Biotechnology  Lt / Equity Bottom-Up

<ul>
<li>Botanee has outstanding performance at the current stage, but WINONA alone is not enough to establish a high moat. Its weak R&amp;D/innovation in raw materials/products would cast doubts on outlook.</li>
<li>Bloomage is more R&amp;D oriented and characterized by integration of industrial chain. Its advanced synthetic biology will bring more possibilities for future development.The collagen would be a new growth point.</li>
<li>Although with lower net profit margin, Bloomage is expected to have better outlook than Botanee. So, we think Bloomage could have higher valuation than Botanee in the future.  </li>
</ul>


Botanee has outstanding performance at the current stage, but WINONA alone is not enough to establish a high moat. Its weak R&amp;D/innovation in raw materials/products would cast doubts on outlook.
Bloomage is more R&amp;D oriented and characterized by integration of industrial chain. Its advanced synthetic biology will bring more possibilities for future development.The collagen would be a new growth point.
Although with lower net profit margin, Bloomage is expected to have better outlook than Botanee. So, we think Bloomage could have higher valuation than Botanee in the future.  


Bloomage Biotechnology Vs Yunnan Botanee Bio-Technology - Accumulate Richly and Break Forth Vastly

Shanghai Haohai Biological Tec / Equity Bottom-Up

<ul>
<li>Haohai's development is fuelled by a series of acquisitions, which help Haohai establish the existing diversified businesses, but we haven’t seen any growth point with high certainty.</li>
<li>Compared with Bloomage and Imeik, Haohai has no competitive advantage in the field of medical aesthetics. It’s also difficult for Haohai to make a substantial breakthrough without obvious product advantages.</li>
<li>Although Haohai’s PE/TTM is significantly lower than its peers, due to centralized procurement, Haohai’s valuation could be further lower. Considering the risks, we choose to stay cautious on Haohai.</li>
</ul>


Haohai's development is fuelled by a series of acquisitions, which help Haohai establish the existing diversified businesses, but we haven’t seen any growth point with high certainty.
Compared with Bloomage and Imeik, Haohai has no competitive advantage in the field of medical aesthetics. It’s also difficult for Haohai to make a substantial breakthrough without obvious product advantages.
Although Haohai’s PE/TTM is significantly lower than its peers, due to centralized procurement, Haohai’s valuation could be further lower. Considering the risks, we choose to stay cautious on Haohai.


Shanghai Haohai Biological Technology (688366CH)- Diversified Business Layout Doesn't Secure Outlook

China

Bloomage Biotechnology Corporation Limited develops and manufactures medical products. The Company produces fillers, mesotherapy products, bio reactive hyaluronic acids, repair soothing skin care products, and other products. Bloomage Biotechnology supplies its products in medicine, cosmetics, food manufacturing companies, medical institutions, and other fields.

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Bloomage Biotechnology Lt (688363 CH)

Shanghai/Shenzhen Northbound Connect: Weekly Moves (22 July 2022)

Overall, net outflow over the past week in the HK -Shanghai-Shenzhen Northbound Connect facilities was ~US$1.83bn, split between Shanghai (...

David Blennerhassett

Northbound Flows Monthly (June): $11bn Inflows

We estimate $11bn inflow into A-share market through northbound in June and highlight monthly inflows into Moutai, Yili, East Money, Tongwei, and...

Ke Yan, CFA, FRM

Imeik Technology Development (300896.CH) - Superficial Prosperity Hardly Masks Underlying Risks

Imeik’s valuation is unreasonably high. The risks related to development strategy, product layout, R&D, etc. will bring many uncertainties.There's...

Xinyao (Criss) Wang

Bloomage Biotechnology Vs Yunnan Botanee Bio-Technology - Accumulate Richly and Break Forth Vastly

Botanee takes the lead in performance due to WINONA, but Bloomage's strong R&D/industrial chain integration/collagen/synthetic biology indicate...

Xinyao (Criss) Wang

Shanghai Haohai Biological Technology (688366CH)- Diversified Business Layout Doesn't Secure Outlook

Haohai builds diversified business via M&A,but none is growth point with high certainty. Its medical aesthetics has no obvious advantage and the...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Shanghai/​​​​​​​​​Shenzhen Northbound Connect: Weekly Moves (22 July 2022)

Overall, net outflow over the past week in the HK -Shanghai-Shenzhen Northbound Connect facilities was ~US$1.83bn, split between Shanghai (...

David Blennerhassett

Northbound Flows Monthly (June): $11bn Inflows

We estimate $11bn inflow into A-share market through northbound in June and highlight monthly inflows into Moutai, Yili, East Money, Tongwei, and...

Ke Yan, CFA, FRM

Imeik Technology Development (300896.CH) - Superficial Prosperity Hardly Masks Underlying Risks

Imeik’s valuation is unreasonably high. The risks related to development strategy, product layout, R&D, etc. will bring many uncertainties.There's...

Xinyao (Criss) Wang

Bloomage Biotechnology Vs Yunnan Botanee Bio-Technology - Accumulate Richly and Break Forth Vastly

Botanee takes the lead in performance due to WINONA, but Bloomage's strong R&D/industrial chain integration/collagen/synthetic biology indicate...

Xinyao (Criss) Wang

Shanghai Haohai Biological Technology (688366CH)- Diversified Business Layout Doesn't Secure Outlook

Haohai builds diversified business via M&A,but none is growth point with high certainty. Its medical aesthetics has no obvious advantage and the...

Xinyao (Criss) Wang

Shanghai/Shenzhen Northbound Connect: Weekly Moves (22 July 2022)