Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

<ul>
<li>In this insight, we take a look at the potential index changes and the resultant capping flows for HSCEI in September 2023.</li>
<li>Based on the latest available data, I expect two ADDs and two DELs for HSCEI in the September 2023 Rebalance.</li>
<li>I estimate one-way flow to be US$276mn. Only the two ADDs and two DELs involved in the index changes are likely to have more than one day to trade. </li>
</ul>


In this insight, we take a look at the potential index changes and the resultant capping flows for HSCEI in September 2023.
Based on the latest available data, I expect two ADDs and two DELs for HSCEI in the September 2023 Rebalance.
I estimate one-way flow to be US$276mn. Only the two ADDs and two DELs involved in the index changes are likely to have more than one day to trade. 


Quiddity HSCEI Sep 23 Flow Expectations: Two Changes Likely, US$276mn One-Way

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>Nine new-energy vehicle (NEV) brands including BYD, NIO, Xpeng, Li Auto, Zeekr, Aion, Aito, Neta and Leap reported their May 2023 sales volumes on 1 Jun 2023.</li><li>Sales volume of the nine brands combined rose 88% YoY (ranged from -26% to +146%) and 13% MoM (ranged from -8% to 38%) in May 2023.</li><li>Li Auto’s May sales more than doubled NIO and Xpeng combined.</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.

Nine new-energy vehicle (NEV) brands including BYD, NIO, Xpeng, Li Auto, Zeekr, Aion, Aito, Neta and Leap reported their May 2023 sales volumes on 1 Jun 2023.Sales volume of the nine brands combined rose 88% YoY (ranged from -26% to +146%) and 13% MoM (ranged from -8% to 38%) in May 2023.Li Auto’s May sales more than doubled NIO and Xpeng combined.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 Auto Sector – May NEV likely to hit second highest in history

APAC IPOs & Placements, Aequitas Research

Ethan Aw

APAC 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

iMotion Automotive Technology / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/imotion-automotive-technology" target="_blank" data-smartkarma-citation="entities:36900:1" rel="noopener">IMotion Automotive Technology (1812706D CH)</a> is looking to raise about US$300m in its upcoming HK IPO. </li>
<li>The company possesses advanced full-stack R&amp;D capabilities including self-developed algorithms and hardware-software co-design capabilities. It provides two AD domain controller product lines, and the self-designed iDC series. </li>
<li>In this note, we talk about the not-so-positive aspects of the deal.</li>
</ul>



IMotion Automotive Technology (1812706D CH) is looking to raise about US$300m in its upcoming HK IPO. 
The company possesses advanced full-stack R&amp;D capabilities including self-developed algorithms and hardware-software co-design capabilities. It provides two AD domain controller product lines, and the self-designed iDC series. 
In this note, we talk about the not-so-positive aspects of the deal.


IMotion Automotive Technology Pre-IPO - The Negatives - But Profitability Still a Black Box

<ul>
<li>
<a href="https://www.smartkarma.com/entities/imotion-automotive-technology" target="_blank" data-smartkarma-citation="entities:36900:1" rel="noopener">IMotion Automotive Technology (1812706D CH)</a> is looking to raise about US$300m in its upcoming HK IPO. </li>
<li>The company possesses advanced full-stack R&amp;D capabilities including self-developed algorithms and hardware-software co-design capabilities. It provides two AD domain controller product lines, and the self-designed iDC series. </li>
<li>In this note, we talk about the positive aspects of the deal.</li>
</ul>



IMotion Automotive Technology (1812706D CH) is looking to raise about US$300m in its upcoming HK IPO. 
The company possesses advanced full-stack R&amp;D capabilities including self-developed algorithms and hardware-software co-design capabilities. It provides two AD domain controller product lines, and the self-designed iDC series. 
In this note, we talk about the positive aspects of the deal.


IMotion Automotive Technology Pre-IPO - The Positives - Strong Growth Ahead with Some Big Names

Equity Bottom-Up

<ul><li>We downgrade Meidong to HOLD from Buy despite its superb management execution, as we believe it still faces strong industry headwinds in the short term and may lack catalysts amid its high valuation.</li><li>We think the weak earnings in 2H22 could extend into 1H23E.</li><li>Key metrics in 2H22 trailing peers. Porsche’s new-car GPM at Meidong narrowed to a historical-low of 3.2% in 2H22.</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 downgrade Meidong to HOLD from Buy despite its superb management execution, as we believe it still faces strong industry headwinds in the short term and may lack catalysts amid its high valuation.We think the weak earnings in 2H22 could extend into 1H23E.Key metrics in 2H22 trailing peers. Porsche’s new-car GPM at Meidong narrowed to a historical-low of 3.2% in 2H22.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 Meidong Auto (1268 HK) – Lingering industry headwinds amid high valuation

China

China Meidong Auto Holdings Limited is an automobile dealership and maintenance group in China.

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China MeiDong Auto (1268 HK)

Quiddity HSCEI Sep 23 Flow Expectations: Two Changes Likely, US$276mn One-Way

I see BeiGene Ltd (6160 HK) and Trip.com (9961 HK) as ADDs and Country Garden Services (6098 HK) and Zhongsheng Group (881 HK) as DELs.

Janaghan Jeyakumar, CFA

China Auto Sector – May NEV likely to hit second highest in history

Nine new-energy vehicle (NEV) brands including BYD, NIO, Xpeng, Li Auto, Zeekr, Aion, Aito, Neta and Leap reported their May 2023 sales volumes on...

CMB International

IMotion Automotive Technology Pre-IPO - The Negatives - But Profitability Still a Black Box

IMotion Automotive Technology (1812706D CH) is looking to raise about US$300m in its upcoming HK IPO. In this note, we talk about the not-so...

Ethan Aw

IMotion Automotive Technology Pre-IPO - The Positives - Strong Growth Ahead with Some Big Names

IMotion Automotive Technology (1812706D CH) is looking to raise about US$300m in its upcoming HK IPO. In this note, we talk about the positive...

Ethan Aw

China Meidong Auto (1268 HK) – Lingering industry headwinds amid high valuation

We think the weak earnings in 2H22 could extend into 1H23E. Key metrics in 2H22 trailing peers. Porsche’s new-car GPM at Meidong narrowed to a...

CMB International

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