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 weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of June 2nd.</li>
<li>We estimate the weekly inflows to be US$899.7 million, led by information technology, materials, health care sectors, and offset by financials, consumer staples.</li>
<li>We highlight flows for Nantong Fujitsu Microelectronics, Xinjiang Daqo New Energy, Zhejiang Dahua Technology, Moutai, Wuliangye, China Tourism, Ping An Insurance, Sany Heavy Industry, Foxconn Industrial Internet, Haitian Flavouring.</li>
</ul>


We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of June 2nd.
We estimate the weekly inflows to be US$899.7 million, led by information technology, materials, health care sectors, and offset by financials, consumer staples.
We highlight flows for Nantong Fujitsu Microelectronics, Xinjiang Daqo New Energy, Zhejiang Dahua Technology, Moutai, Wuliangye, China Tourism, Ping An Insurance, Sany Heavy Industry, Foxconn Industrial Internet, Haitian Flavouring.


Northbound Flows (Jun 2nd): Moutai, Wuliangye, China Tourism, Ping An Insurance, Sany Heavy

<ul>
<li>We analyse the changes of A-H premium on 143 stocks over the last week. The average A-H premium was 113.6% as of May 26th.</li>
<li>The average A-H premium changed by 2.3ppt week on week, led by information technology, utilities, consumer discretionary and offset by financials.</li>
<li>We highlight weekly changes in A-H premium for Shandong Gold, China Longyuan, BYD, Shenhua, China Minsheng, CSSC Offshore, Shanghai Fudan, China Life, Flat Glass, CCCC.</li>
</ul>


We analyse the changes of A-H premium on 143 stocks over the last week. The average A-H premium was 113.6% as of May 26th.
The average A-H premium changed by 2.3ppt week on week, led by information technology, utilities, consumer discretionary and offset by financials.
We highlight weekly changes in A-H premium for Shandong Gold, China Longyuan, BYD, Shenhua, China Minsheng, CSSC Offshore, Shanghai Fudan, China Life, Flat Glass, CCCC.


A-H Premium Weekly (May 26th): Shandong Gold, China Longyuan, BYD, Shenhua, China Minsheng

<ul>
<li>We analyse the changes of A-H premium on 143 stocks over the last week. The average A-H premium was 111.6% as of May 12th.</li>
<li>The average A-H premium changed by 0.4ppt week on week, led by real estate, financials, utilities and offset by consumer staples, consumer discretionary, energy.</li>
<li>We highlight weekly changes in A-H premium for CCB, BoC, China Shenhua, Yankuang Energy, CHina Life.</li>
</ul>


We analyse the changes of A-H premium on 143 stocks over the last week. The average A-H premium was 111.6% as of May 12th.
The average A-H premium changed by 0.4ppt week on week, led by real estate, financials, utilities and offset by consumer staples, consumer discretionary, energy.
We highlight weekly changes in A-H premium for CCB, BoC, China Shenhua, Yankuang Energy, CHina Life.


A-H Premium Weekly (May 12th): CCB, BoC, China Shenhua, Yankuang Energy, CHina Life

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Thematic (Sector/Industry)

<ul><li>We untangle the “household excess saving” enigma.</li><li>Instead of a silver bullet, we consider it a status-quo in which consumers are confident enough to spend (or invest) beyond their pre-pandemic budgets by tapping into their savings accumulated during the pandemic, after they first normalize their spending to prepandemic level.</li><li>In other words, we believe the use of “excess saving” would predominantly kick-in upon a full-fledged consumption recovery. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We untangle the “household excess saving” enigma.Instead of a silver bullet, we consider it a status-quo in which consumers are confident enough to spend (or invest) beyond their pre-pandemic budgets by tapping into their savings accumulated during the pandemic, after they first normalize their spending to prepandemic level.In other words, we believe the use of “excess saving” would predominantly kick-in upon a full-fledged consumption recovery. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Consumer – From Reopening to Recovery

Equity Bottom-Up

China Tourism Group Duty Free Corp Ltd / Equity Bottom-Up

<ul><li>CTGDF’s shares have been a laggard and are c.30% behind its re-opening peers, on an assumption that international travel is set to recover and likely takes the wallet shares from domestic travelers.</li><li>With year-to-date overseas travel recovery tracking c.30% of that in 2019, however, we think year-end recovery rate should reasonably reach 70%+, slightly lower than a 90% ballpark estimates from talks we held with investors.</li><li>Meanwhile, despite a just-in-line 1Q results, we think GPM should continue to improve sequentially, driven by 1) an increasing higher-margin airport sales mix, 2) a better inventory mix with sufficient stocks on popular hardluxury/ fashion items, and 3) a consistently well-disciplined discount policy. Beyond these, during the earnings call, management remains upbeat on the outlook, and discussed a few positive operation updates.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

CTGDF’s shares have been a laggard and are c.30% behind its re-opening peers, on an assumption that international travel is set to recover and likely takes the wallet shares from domestic travelers.With year-to-date overseas travel recovery tracking c.30% of that in 2019, however, we think year-end recovery rate should reasonably reach 70%+, slightly lower than a 90% ballpark estimates from talks we held with investors.Meanwhile, despite a just-in-line 1Q results, we think GPM should continue to improve sequentially, driven by 1) an increasing higher-margin airport sales mix, 2) a better inventory mix with sufficient stocks on popular hardluxury/ fashion items, and 3) a consistently well-disciplined discount policy. Beyond these, during the earnings call, management remains upbeat on the outlook, and discussed a few positive operation updates.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

CTGDF (601888 CH) – Overseas Travel a Lingering Headwind to Valuation

China

China Tourism Group Duty Free Corporation Limited engages in sales of duty free goods and tax goods. The Company sells tobacco, wine and spirits, perfume, cosmetics, fashion and accessories, watches, jewelry, food, luggage products,and other products. China Tourism Group Duty Free also engages in investment and development of tourism destination commercial complexes.

China Tourism Group Duty Free Corp Ltd (601888 CH)

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

China Tourism Group Duty Free Corp Ltd (601888 CH)

Northbound Flows (Jun 2nd): Moutai, Wuliangye, China Tourism, Ping An Insurance, Sany Heavy

We analyzed northbound Shanghai/Shenzhen connect flows in the past week and highlight flows for Moutai, Wuliangye, China Tourism, Ping An...

Ke Yan, CFA, FRM

A-H Premium Weekly (May 26th): Shandong Gold, China Longyuan, BYD, Shenhua, China Minsheng

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Shandong Gold, China Longyuan, BYD, Shenhua, China Minsheng.

Ke Yan, CFA, FRM

A-H Premium Weekly (May 12th): CCB, BoC, China Shenhua, Yankuang Energy, CHina Life

We analyzed A-H premium changes in the past week and highlight A-H premium changes for CCB, BoC, China Shenhua, Yankuang Energy, CHina Life.

Ke Yan, CFA, FRM

China Consumer – From Reopening to Recovery

In other words, we believe the use of “excess saving” would predominantly kick-in upon a full-fledged consumption recovery.

CMB International

CTGDF (601888 CH) – Overseas Travel a Lingering Headwind to Valuation

With year-to-date overseas travel recovery tracking c.30% of that in 2019, however, we think year-end recovery rate should reasonably reach 70%+

CMB International

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)