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

Hong Kong Exchange publishes share repurchases by listed companies on a daily basis. In our weekly note, we will provide statistics on top repurchases over one week, one month, one quarter and one year periods ended on Jun 4th.In the past 7 days, the top 3 companies that repurchased the most shares from the market were Sea Holdings (251 HK) (HKD 132.3 million worth of buybacks), China Gas Holdings Limited (384 HK) (HKD 76.0 million worth of buybacks), Haier Smart Home Co., Ltd. (6690 HK) (HKD 40.7 million worth of buybacks).

Hong Kong Exchange publishes share repurchases by listed companies on a daily basis. In our weekly note, we will provide statistics on top repurchases over one week, one month, one quarter and one year periods ended on Jun 4th.In the past 7 days, the top 3 companies that repurchased the most shares from the market were Sea Holdings (251 HK) (HKD 132.3 million worth of buybacks), China Gas Holdings Limited (384 HK) (HKD 76.0 million worth of buybacks), Haier Smart Home Co., Ltd. (6690 HK) (HKD 40.7 million worth of buybacks).

Hong Kong Buybacks: Sea Holdings, China Gas, Haier Smart Home

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

Smoore International Holdings / Event-Driven

Hang Seng Indexes should announce the results of the September 2021 review of the Hang Seng Family of Indexes on 13 August. The constituent changes will be effective after the close of trading on 3 September.The review period for the September rebalance ends on 30 June and stocks that have at least 3 month of trading history by the review meeting date are eligible for inclusion in the <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">Hong Kong Hang Seng Index (HSI INDEX)</a>.With the major capping changes scheduled to be completed at the June rebalance tomorrow, there could be up to 8 inclusions at the September review while still keeping the one-way index turnover lower than 5%. The actual number of inclusions could be lower to spread the turnover over the next few reviews.We see <a href="https://www.smartkarma.com/entities/jd-health-international-inc" target="_blank" data-smartkarma-citation="entities:29677:1" rel="noopener">JD Health (6618 HK)</a>, <a href="https://www.smartkarma.com/entities/hansoh-pharmaceutical-group" target="_blank" data-smartkarma-citation="entities:23675:1" rel="noopener">Hansoh Pharmaceutical (3692 HK)</a>, <a href="https://www.smartkarma.com/entities/smoore-international" target="_blank" data-smartkarma-citation="entities:28241:1" rel="noopener">Smoore International (6969 HK)</a>, <a href="https://www.smartkarma.com/entities/fosun-international-ltd" target="_blank" data-smartkarma-citation="entities:433:1" rel="noopener">Fosun International (656 HK)</a> and <a href="https://www.smartkarma.com/entities/evergrande-property-services" target="_blank" data-smartkarma-citation="entities:30921:1" rel="noopener">Evergrande Property Services (6666 HK)</a> as higher probability inclusions in the index, while there is a lower probability of <a href="https://www.smartkarma.com/entities/jd-com-inc" target="_blank" data-smartkarma-citation="entities:29043:1" rel="noopener">JD.com Inc. (9618 HK)</a>, <a href="https://www.smartkarma.com/entities/nongfu-spring" target="_blank" data-smartkarma-citation="entities:28955:1" rel="noopener">Nongfu Spring (9633 HK)</a> and <a href="https://www.smartkarma.com/entities/xinyi-glass-holdings-ltd" target="_blank" data-smartkarma-citation="entities:11940:1" rel="noopener">Xinyi Glass Holdings (868 HK)</a> being included in the <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">Hong Kong Hang Seng Index (HSI INDEX)</a>.<a href="https://www.smartkarma.com/entities/china-gas-holdings-ltd" target="_blank" data-smartkarma-citation="entities:14315:1" rel="noopener">China Gas Holdings (384 HK)</a> could be added to increase the coverage of Group 5 where Utilities are a part. This is less of a priority though with the market cap coverage of the group in excess of 60% as compared to the other groups that are much lower.There may not be any deletions at the current time. If the Index Committee decides to delete stocks, the two names most at risk are <a href="https://www.smartkarma.com/entities/china-life-insurance-co-ltd-9f877d22-7cf7-4b00-b525-cec71139f369" target="_blank" data-smartkarma-citation="entities:5794:1" rel="noopener">China Life Insurance Co H (2628 HK)</a> and <a href="https://www.smartkarma.com/entities/hengan-intl-group-co-ltd" target="_blank" data-smartkarma-citation="entities:29:1" rel="noopener">Hengan Intl Group (1044 HK)</a>.These changes will increase the market cap coverage of the index from 60.1% to 64.3% and the turnover coverage from 53.75% to 57.75%. One-way index turnover is estimated at 4.79% and would result in a one-way trade of HK$9.2bn.

Hang Seng Indexes should announce the results of the September 2021 review of the Hang Seng Family of Indexes on 13 August. The constituent changes will be effective after the close of trading on 3 September.The review period for the September rebalance ends on 30 June and stocks that have at least 3 month of trading history by the review meeting date are eligible for inclusion in the Hong Kong Hang Seng Index (HSI INDEX).With the major capping changes scheduled to be completed at the June rebalance tomorrow, there could be up to 8 inclusions at the September review while still keeping the one-way index turnover lower than 5%. The actual number of inclusions could be lower to spread the turnover over the next few reviews.We see JD Health (6618 HK), Hansoh Pharmaceutical (3692 HK), Smoore International (6969 HK), Fosun International (656 HK) and Evergrande Property Services (6666 HK) as higher probability inclusions in the index, while there is a lower probability of JD.com Inc. (9618 HK), Nongfu Spring (9633 HK) and Xinyi Glass Holdings (868 HK) being included in the Hong Kong Hang Seng Index (HSI INDEX).China Gas Holdings (384 HK) could be added to increase the coverage of Group 5 where Utilities are a part. This is less of a priority though with the market cap coverage of the group in excess of 60% as compared to the other groups that are much lower.There may not be any deletions at the current time. If the Index Committee decides to delete stocks, the two names most at risk are China Life Insurance Co H (2628 HK) and Hengan Intl Group (1044 HK).These changes will increase the market cap coverage of the index from 60.1% to 64.3% and the turnover coverage from 53.75% to 57.75%. One-way index turnover is estimated at 4.79% and would result in a one-way trade of HK$9.2bn.

HSI Index Rebalance Preview: Potential Inclusions in September

Hong Kong Exchange publishes share repurchases by listed companies on a daily basis. In our weekly note, we will provide statistics on top repurchases over one week, one month, one quarter and one year periods ended on May 28.In the past 7 days, the top 3 companies that repurchased the most shares from the market were China Gas Holdings Limited (384 HK) (HKD 321.6 million worth of buybacks), Nissin Foods Company Limited (1475 HK) (HKD 28.5 million worth of buybacks), Want Want China Holdings Limited (151 HK) (HKD 8.7 million worth of buybacks).

Hong Kong Exchange publishes share repurchases by listed companies on a daily basis. In our weekly note, we will provide statistics on top repurchases over one week, one month, one quarter and one year periods ended on May 28.In the past 7 days, the top 3 companies that repurchased the most shares from the market were China Gas Holdings Limited (384 HK) (HKD 321.6 million worth of buybacks), Nissin Foods Company Limited (1475 HK) (HKD 28.5 million worth of buybacks), Want Want China Holdings Limited (151 HK) (HKD 8.7 million worth of buybacks).

Hong Kong Buybacks: China Gas, Nissin Foods, Want Want

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

This is a warning insight. It is not actionable per se. It is designed to be informative. The dividend payment ex-dates are confusing. Some people are confusing. This insight hopes to put that right in the safest way possible so investors do not make an error on what will be a one-time 30% dividend.

This is a warning insight. It is not actionable per se. It is designed to be informative. The dividend payment ex-dates are confusing. Some people are confusing. This insight hopes to put that right in the safest way possible so investors do not make an error on what will be a one-time 30% dividend. 

Kunlun Energy (135) - Be Careful Of The Special Div Dates

Last year, the major gas pipeline companies owned by the SOEs all announced they were selling their intercity infrastructure and port offloading and storage operations to a new SOE called PipeChina. A few SOEs signed Sale and Purchase agreements in mid-2020. <a href="https://www.smartkarma.com/entities/kunlun-energy-co-ltd" target="_blank" data-smartkarma-citation="entities:10054:1" rel="noopener">Kunlun Energy (135 HK)</a> signed theirs in December. For Kunlun, that agreement went through at the end of March. The bulk of the payment should have gone through at the end of April, and When Kunlun reported its earnings in late March, it reported full-year on an ongoing basis with the Discontinued Assets representing a different set of numbers. At that point, Kunlun became an energy distribution company which was primarily a city gas company, and a big pile of cash. As <a href="https://www.smartkarma.com/profiles/osbert-tang-cfa" target="_blank" data-smartkarma-citation="accounts:3879" rel="noopener">Osbert Tang, CFA</a> discussed in <a href="https://www.smartkarma.com/insights/kunlun-energy-135-hk-a-fantastic-1q21-at-kunlun-gas" target="_blank" data-smartkarma-citation="insights:50930" rel="noopener">Kunlun Energy (135 HK): A Fantastic 1Q21 at Kunlun Gas</a> the largest contributor to the remaining business had a "fantastic Q1". Year-on-year results this year were always going to be "good" simply because of the growth from start of year to end of year in 2020. Straightline serial no-growth in 2021 would still have resulted in year-on-year growth, which itself seemed not to be in the minds of analysts looking at the pro-forma post-sale Kunlun. Surprisingly, since the announcement in December that the trade had been done, while Kunlun is up, because others are up just as much, the relative cheapness of Kunlun vs peers has actually increased.Below are data/visualizations suggesting how to look at Kunlun today.

Last year, the major gas pipeline companies owned by the SOEs all announced they were selling their intercity infrastructure and port offloading and storage operations to a new SOE called PipeChina. A few SOEs signed Sale and Purchase agreements in mid-2020. Kunlun Energy (135 HK) signed theirs in December. For Kunlun, that agreement went through at the end of March. The bulk of the payment should have gone through at the end of April, and When Kunlun reported its earnings in late March, it reported full-year on an ongoing basis with the Discontinued Assets representing a different set of numbers. At that point, Kunlun became an energy distribution company which was primarily a city gas company, and a big pile of cash. As Osbert Tang, CFA discussed in Kunlun Energy (135 HK): A Fantastic 1Q21 at Kunlun Gas the largest contributor to the remaining business had a "fantastic Q1". Year-on-year results this year were always going to be "good" simply because of the growth from start of year to end of year in 2020. Straightline serial no-growth in 2021 would still have resulted in year-on-year growth, which itself seemed not to be in the minds of analysts looking at the pro-forma post-sale Kunlun. Surprisingly, since the announcement in December that the trade had been done, while Kunlun is up, because others are up just as much, the relative cheapness of Kunlun vs peers has actually increased.Below are data/visualizations suggesting how to look at Kunlun today. 

Kunlun Energy (135 HK) Approaching The Special Div - Still The Wrong Price

Hong Kong

Zhongyu Gas Holdings Limited operates in exploration, exploitation, development and production of coal bed methane and the sale of coalbed methane in the PRC. It also develops, constructs and operates natural gas projects in PRC, which include design and construction of natural gas pipeline network and ancillary facilities, and sale and maintenance of natural gas and its appliances.

China Resources Gas Group Ltd distributes natural gas and petroleum gas in the cities of Chengdu, Fuyang, Huaibei, Linhai, Suzhou and Wuxi in the PRC. The Company also operates compressed natural gas filling stations in Chengdu, Nanjing and Wuxi. The group also is involved in bottled liquefied petroleum gas distribution in cities of Fuyang, Suzhou and Wuxi.

Towngas China Company Ltd. distributes and markets gas.  The Company sells LPG (liquefied petroleum gas) in  bulk and in cylinder, provides piped LPG and natural gas, constructs gas pipelines, operates city gas-pipeline networks and gas stations, and sells LPG  and natural gas household appliances.

Binhai Investment Company Ltd, through its subsidiaries, operates gas businesses.  The Company constructs gas pipeline networks, provides piped gas to customers in mainland China, wholesales and retails liquefied petroleum gas (LPG) by way of refueling gas cylinders or tanks for domestic, industrial and commercial customers, and sell LPG equipment and domestic gas appliances.

China Power International Development Limited, through its subsidiaries, develops, constructs, owns, manages, and operates large power plants in China.

HK Electric Investments and HK Electric Investments Limited is a fixed single investment trust in Hong Kong with a focus on the power industry. The Trust is a vertically integrated power utility and its operations comprise the generation, transmission, distribution, and supply of electricity to Hong Kong Island and Lamma Island.

Guangdong Investment Limited, through its subsidiaries, operates water supply, power and electricity, and infrastructure businesses.  The Company also invests in and develops real estate properties, operates department stores, and provides financial services.

China Oil and Gas Group Ltd. is engaged in the investments in, and the operation and management of the natural gas and energy related business. Gas operations include city piped gas business, natural gas vehicle refilling stations, pipeline construction and operation, as well as transportation, delivery and distribution of compressed natural gas (CNG) and liquefied natural gas (LNG).

Beijing Gas Blue Sky Holdings Limited operates as an integrated natural gas provider, distributor, and operator. The Company offers natural gas transportation, trading, and distribution services. Beijing Gas Blue Sky Holdings serves customers in Hong Kong.

Beijing Enterprises Water Group Limited, through its subsidiaries, develops water treatment systems.  The Group specializes in water services and environmental protection businesses, with waste water treatment as its core business segment.

Southwest Gas Corporation purchases, transports, and distributes natural gas to residential, commercial, and industrial customers in portions of Arizona, Nevada, and California.  The Company also provides construction services to utility companies, including trenching and installation, replacement, and maintenance services for energy distribution systems.

National Fuel Gas Company is an integrated natural gas company with operations in all segments of the natural gas industry, including utility, pipeline and storage, exploration and production, and marketing operations.  The Company operates across the United States.

Indraprastha Gas Limited processes and distributes compressed natural gas and liquefied petroleum gas. The Company has been jointly promoted by Bharat Petroleum Corporation and Gas Authority of India.

UGI Corporation distributes and markets energy products and services.  The Company is a domestic and international distributor of propane.  UGI also distributes and markets natural gas and electricity, and sells related products and services in the Middle Atlantic region of the United States.

New Jersey Resources Corporation provides retail and wholesale energy services to customers in New Jersey and in states from the Gulf Coast to New England, and Canada.  The Company's principal subsidiary, New Jersey Natural Gas Co., is a local distribution company serving customers in central and northern New Jersey.

Gujarat Gas Limited provides natural gas. The Company supplies piped natural gas to residential, commercial, and industrial customers. Gujarat Gas serves customers in India.

ONE Gas, Inc. is a regulated natural gas utility. The Company distributes natural gas to customers in Oklahoma, Kansas and Texas. ONE Gas serves the residential, commercial, industrial, transportation, and wholesale industries.

Spire Inc. is a public utility company involved in the retail distribution of natural gas. The Company serves an area in eastern Missouri and parts of several other counties. Spire also operates underground natural gas storage fields and transports and stores liquid propane.

Enagas SA imports, stores, and transports natural gas. The Company imports liquid natural gas on methane carriers and operates regasification plants in Barcelona, Huelva, and Cartagena. Enagas also receives natural gas through pipelines over the Pyrenees Mountains and across the Strait of Gibraltar. The Company transports gas throughout Spain through its high-pressure pipelines.

Italgas S.p.A. provides gas distribution services. The Company offers delivery points management, pressure reduction plants, withdrawal cabins, fault reporting, and laboratory testing services. Italgas conducts its business in Italy.

China Gas Holdings Ltd. invests in, operates and manages natural gas distribution pipelines.  The Company distributes and sells natural gas to residential, commercial and industrial users, and bottles and sells compressed natural gas.  China Gas also constructs and operates gas stations.

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China Gas Holdings (384 HK)

Hong Kong Buybacks: Sea Holdings, China Gas, Haier Smart Home

We highlight the top 3 companies that repurchased the most shares from the market In the past 7 days were Sea Holdings (251 HK), China Gas...

Ke Yan, CFA, FRM

HSI Index Rebalance Preview: Potential Inclusions in September

There could be 8 additions to the HSI at the September review to take the index members up to 66. Turnover will be less than 5% and there are a lot...

Brian Freitas

Hong Kong Buybacks: China Gas, Nissin Foods, Want Want

We highlight that in the past 7 days, the top 3 companies that repurchased the most shares from the market were China Gas Holdings (384 HK), Nissin...

Ke Yan, CFA, FRM

Kunlun Energy (135) - Be Careful Of The Special Div Dates

Kunlun's Special Div is upon us. BE CAREFUL OF YOUR DATES. There appears to be some confusion out there. Check and double check the docs and your...

Travis Lundy

Kunlun Energy (135 HK) Approaching The Special Div - Still The Wrong Price

Kunlun has outperformed its peers since the announcement of the disposal of its pipeline business. There is one week til the ex-date of the special...

Travis Lundy

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