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 analyse the changes of A-H premium on 147 stocks over the last week. The average A-H premium was 114.0% as of May 10th.</li>
<li>The average A-H premium changed by -7.0ppt week-on-week, led by energy, utilities, communication services and offset by consumer staples, consumer discretionary.</li>
<li>We highlight weekly changes in A-H premium for Petrochina, CGN Power, Hua Hong Semi, Huaneng Power, Cansino, Pharmaron.</li>
</ul>


We analyse the changes of A-H premium on 147 stocks over the last week. The average A-H premium was 114.0% as of May 10th.
The average A-H premium changed by -7.0ppt week-on-week, led by energy, utilities, communication services and offset by consumer staples, consumer discretionary.
We highlight weekly changes in A-H premium for Petrochina, CGN Power, Hua Hong Semi, Huaneng Power, Cansino, Pharmaron.


A-H Premium Weekly (May 10th): 19 Stocks at 52w Low

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

China International Capital Corporation / Event-Driven

<ul>
<li>The New/Better A-H Premium Tracker has tables, charts, measures galore to track A/H premium positioning, southbound and northbound positioning/volatility in pairs over time, etc.</li>
<li>SOUTHBOUND's buy streak was interrupted again this past week, but they still net bought, as did NORTHBOUND. HK stocks continued bouncing VERY hard. Hs outperformed As very strongly.</li>
<li>As had a chance to catch up. Did not. Liquid Hs outperformed their As by 4.8% from 30-April through 10-May. Wide premia narrowed more than narrow premia.</li>
</ul>


The New/Better A-H Premium Tracker has tables, charts, measures galore to track A/H premium positioning, southbound and northbound positioning/volatility in pairs over time, etc.
SOUTHBOUND's buy streak was interrupted again this past week, but they still net bought, as did NORTHBOUND. HK stocks continued bouncing VERY hard. Hs outperformed As very strongly.
As had a chance to catch up. Did not. Liquid Hs outperformed their As by 4.8% from 30-April through 10-May. Wide premia narrowed more than narrow premia.


A/H Premium Tracker (To 10 May 2024):  Excellent Quiddity Portfolio Gains as Hs Rally Huge Vs As

Asia L/S Equity PM/Macro/Thematic Idea Generation

Rikki Malik

Equity Bottom-Up

Tracker Fund of Hong Kong  / Equity Bottom-Up

<ul>
<li>If a sustainable bottom was made in January, which sectors are best to invest?</li>
<li>China State Owned Enterprises fit the current uncertain investment climate</li>
<li>The Hang Seng China Affiliated Index (red chips) provides some good ideas</li>
</ul>


If a sustainable bottom was made in January, which sectors are best to invest?
China State Owned Enterprises fit the current uncertain investment climate
The Hang Seng China Affiliated Index (red chips) provides some good ideas


Further Opportunities in the Hong Kong Market

HK/China Equity Long-Short

Osbert Tang, CFA

China Communications Construction / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/china-communications-construction-co-ltd" target="_blank" data-smartkarma-citation="entities:265:1" rel="noopener">China Communications Construction (1800 HK)</a> maintained healthy earnings growth at 10% in 1Q24, ahead of the consensus expectation of 7.3% for full-year FY24.</li>
<li>A 0.2pp gross margin expansion and positive swing in credit and asset impairments are the drivers, though higher finance costs have offset some of their benefits.</li>
<li>1Q24 new contracts were up 10.8%, and we estimate backlog equals 4.5x FY24F revenue. Despite YTD outperformance, it is still cheap at 2.4x PER and 0.2x P/B.</li>
</ul>



China Communications Construction (1800 HK) maintained healthy earnings growth at 10% in 1Q24, ahead of the consensus expectation of 7.3% for full-year FY24.
A 0.2pp gross margin expansion and positive swing in credit and asset impairments are the drivers, though higher finance costs have offset some of their benefits.
1Q24 new contracts were up 10.8%, and we estimate backlog equals 4.5x FY24F revenue. Despite YTD outperformance, it is still cheap at 2.4x PER and 0.2x P/B.


China Comm Const (1800 HK): Continue to Deliver

<ul>
<li>
<a href="https://www.smartkarma.com/entities/china-communications-construction-co-ltd" target="_blank" data-smartkarma-citation="entities:265:1" rel="noopener">China Communications Construction (1800 HK)</a> believes its FY24 new contracts and revenue growth can be faster than FY23, particularly fuelled by strategic new industries and overseas. </li>
<li>Its end-FY23 contract backlog of Rmb3.45trn (+1.8% YoY) translates into coverage of 4.1x of FY24F revenue, providing a secured stream of revenue over the next few years.</li>
<li>Its improving cash flow allows for a 1pp increase in the payout ratio. Efforts in realising underlying asset value should narrow its 82% discount to book value.</li>
</ul>



China Communications Construction (1800 HK) believes its FY24 new contracts and revenue growth can be faster than FY23, particularly fuelled by strategic new industries and overseas. 
Its end-FY23 contract backlog of Rmb3.45trn (+1.8% YoY) translates into coverage of 4.1x of FY24F revenue, providing a secured stream of revenue over the next few years.
Its improving cash flow allows for a 1pp increase in the payout ratio. Efforts in realising underlying asset value should narrow its 82% discount to book value.


China Comm Const (1800 HK): A Nice Surprise

China

China Railway Construction Corporation Limited provides transportation infrastructure construction services. The Company constructs railway, highway, urban track, and other infrastructure. China Railway Construction also provides real estate development and materials trading services.

China Railway Construction Cor (601186 CH)

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

China Railway Construction Cor (601186 CH)

A-H Premium Weekly (May 10th): 19 Stocks at 52w Low

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Petrochina, CGN Power, Hua Hong Semi, Huaneng Power,...

Ke Yan, CFA, FRM

A/H Premium Tracker (To 10 May 2024): Excellent Quiddity Portfolio Gains as Hs Rally Huge Vs As

AH Premia narrowed significantly. As an average, they are down near 52wk lows, with most of the move having taken place in the last 3 weeks. Some...

Travis Lundy

Further Opportunities in the Hong Kong Market

As global and emerging market funds return to Hong Kong, some underperforming index names will attract flows. Seeing good technical action, volume...

Rikki Malik

China Comm Const (1800 HK): Continue to Deliver

Gross margin expansion and reversal of impairments are drivers behind CCCC's 10% earnings growth in 1Q24, ahead of consensus forecast. We estimate...

Osbert Tang, CFA

China Comm Const (1800 HK): A Nice Surprise

CCCC expects faster new contract and revenue growth for FY24, driven by strategic industries and overseas markets. With a strong contract backlog...

Osbert Tang, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

A-H Premium Weekly (May 10th): 19 Stocks at 52w Low

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Petrochina, CGN Power, Hua Hong Semi, Huaneng Power,...

Ke Yan, CFA, FRM

A/H Premium Tracker (To 10 May 2024): Excellent Quiddity Portfolio Gains as Hs Rally Huge Vs As

AH Premia narrowed significantly. As an average, they are down near 52wk lows, with most of the move having taken place in the last 3 weeks. Some...

Travis Lundy

Further Opportunities in the Hong Kong Market

As global and emerging market funds return to Hong Kong, some underperforming index names will attract flows. Seeing good technical action, volume...

Rikki Malik

China Comm Const (1800 HK): Continue to Deliver

​Gross margin expansion and reversal of impairments are drivers behind CCCC's 10% earnings growth in 1Q24, ahead of consensus forecast. We estimate...

Osbert Tang, CFA

China Comm Const (1800 HK): A Nice Surprise

CCCC expects faster new contract and revenue growth for FY24, driven by strategic industries and overseas markets. With a strong contract backlog...

Osbert Tang, CFA

Gross margin expansion and reversal of impairments are drivers behind CCCC's 10% earnings growth in 1Q24, ahead of consensus forecast. We estimate...