Listed Real Estate Asia, KT Capital Group

Jacob Cheng

Listed Real Estate Asia

KT Capital Group

Principal investments and advisory firm that focuses on connecting the CIS countries with East Asia.

Principal investments and advisory firm

Thematic (Sector/Industry)

<ul>
<li>HK stock market rebounded strongly due to a few reasons, mostly macro and policy-related.  Macro factors and policies become primary share price drivers</li>
<li>Investors can add more beta names (China Property Developers) and value plays (Hong Kong Developers) if they want to add exposure</li>
<li>Among the listed universe, 688 HK COLI, 17 HK NWD, 101 HK HLP are key names with attractive upside</li>
</ul>


HK stock market rebounded strongly due to a few reasons, mostly macro and policy-related.  Macro factors and policies become primary share price drivers
Investors can add more beta names (China Property Developers) and value plays (Hong Kong Developers) if they want to add exposure
Among the listed universe, 688 HK COLI, 17 HK NWD, 101 HK HLP are key names with attractive upside


Happy Friday & Strong HK Rebound! What to Chase? China Prop (High Beta) And HK Prop (Value Play)

Equity Bottom-Up

China Overseas Land & Investment / Equity Bottom-Up

<ul>
<li>In this insight, we explore the investment thesis and major share price drivers for 688 HK</li>
<li>COLI saw share price weakness, and is trading at 0.46x P/B.  Potential risks are 1) fail to meet 20% growth target 2) slower than expected land acquisition</li>
<li>We see value emerging from the stock, and recommend BUY as long as the stock trades below HKD20 (as a technical indicator)</li>
</ul>


In this insight, we explore the investment thesis and major share price drivers for 688 HK
COLI saw share price weakness, and is trading at 0.46x P/B.  Potential risks are 1) fail to meet 20% growth target 2) slower than expected land acquisition
We see value emerging from the stock, and recommend BUY as long as the stock trades below HKD20 (as a technical indicator)


COLI 688 HK – Value Emerging, the Only Pure Play in China Prop to Gain Mkt Share and Back to Growth

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 Hong Kong Connect flows with our data engine for holding position as of May 25th.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight flows for Tencent, China Mobile, Li Ning, China Construction Bank.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of May 25th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Tencent, China Mobile, Li Ning, China Construction Bank.


Hong Kong Connect Flows (May 25th): Tencent, China Mobile, Li Ning, China Construction Bank

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>The <a href="https://www.smartkarma.com/entities/yuexiu-property-co-ltd" target="_blank" data-smartkarma-citation="entities:18097:1" rel="noopener">Yuexiu Property (123 HK)</a> Rights start trading today. Last day is next Monday. There is a general pattern to the flows and it behooves investors to be aware.</li>
<li>There is a pattern to these trades which is worth understanding.</li>
<li>In this case, I expect it is worth going long Yuexiu Rights vs Short peer basket equity earlier in the cycle.</li>
</ul>


The Yuexiu Property (123 HK) Rights start trading today. Last day is next Monday. There is a general pattern to the flows and it behooves investors to be aware.
There is a pattern to these trades which is worth understanding.
In this case, I expect it is worth going long Yuexiu Rights vs Short peer basket equity earlier in the cycle.


<ul>
<li>Property agents say more government support is needed.  But historically timing and scale of policy is hard to predict</li>
<li>POEs are still under pressure with bond default.  Latest case is KWG missing debt payment and potential cross default</li>
<li>Sector's valuation is almost at all time low and big part of risk is priced in.  But stocks can stay cheap forever.  Monitor the HY bond market as key indicator.</li>
</ul>


Property agents say more government support is needed.  But historically timing and scale of policy is hard to predict
POEs are still under pressure with bond default.  Latest case is KWG missing debt payment and potential cross default
Sector's valuation is almost at all time low and big part of risk is priced in.  But stocks can stay cheap forever.  Monitor the HY bond market as key indicator.


Short Note: China Prop - When Is a Good Time to Revisit the Sector? Still No Light at the Tunnel

Hong Kong

China Overseas Land & Investment Limited provides real estate services. The Company develops, manages, and invests in commercial properties. China Overseas Land & Investment serves customers globally.

China Overseas Land & Investment (688 HK)

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

China Overseas Land & Investment (688 HK)

Happy Friday & Strong HK Rebound! What to Chase? China Prop (High Beta) And HK Prop (Value Play)

HK market strongly rebounded today due to a few macro and policy-related reasons. If investors want to add exposure, we recommend China (high beta...

Jacob Cheng

Hong Kong Connect Flows (May 25th): Tencent, China Mobile, Li Ning, China Construction Bank

We analyzed the Hong Kong Connect Scheme for last week and highlight flows for Tencent, China Mobile, Li Ning, China Construction Bank。

Ke Yan, CFA, FRM

Yuexiu Rights - The Trading Pattern Fits

Yuexiu Property (123 HK) Rights are trading today. The stock is trading down, as expected, as those who do not wish to re-up sell their rights. I...

Travis Lundy

Short Note: China Prop - When Is a Good Time to Revisit the Sector? Still No Light at the Tunnel

Short Note - when should we re-visit China property sector? There seems to be no light at the tunnel. POEs continue to suffer while SOEs shine. ...

Jacob Cheng

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Happy Friday & Strong HK Rebound! What to Chase? China Prop (High Beta) And HK Prop (Value Play)

HK market strongly rebounded today due to a few macro and policy-related reasons. If investors want to add exposure, we recommend China (high beta...

Jacob Cheng

COLI 688 HK – Value Emerging, the Only Pure Play in China Prop to Gain Mkt Share and Back to Growth

We view COLI 688 HK as a safe play with attractive valuation in the China Prop space. It is a SOE developer without liquidity and bankruptcy...

Jacob Cheng

Hong Kong Connect Flows (May 25th): Tencent, China Mobile, Li Ning, China Construction Bank

We analyzed the Hong Kong Connect Scheme for last week and highlight flows for Tencent, China Mobile, Li Ning, China Construction Bank。

Ke Yan, CFA, FRM

Yuexiu Rights - The Trading Pattern Fits

Yuexiu Property (123 HK) Rights are trading today. The stock is trading down, as expected, as those who do not wish to re-up sell their rights. I...

Travis Lundy

Short Note: China Prop - When Is a Good Time to Revisit the Sector? Still No Light at the Tunnel

Short Note - when should we re-visit China property sector? There seems to be no light at the tunnel. POEs continue to suffer while SOEs shine. ...

Jacob Cheng