Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

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 Bottom-Up

<ul>
<li>Tencent and Alibaba are rumored to be acquired by state-owned companies.</li>
<li>Tencent charges for originally free function and JD.com re-organized to cut cost.</li>
<li>Autohome’s revenue stopped declining in 3Q22 and it is time to accumulate.</li>
</ul>


Tencent and Alibaba are rumored to be acquired by state-owned companies.
Tencent charges for originally free function and JD.com re-organized to cut cost.
Autohome’s revenue stopped declining in 3Q22 and it is time to accumulate.


China Internet Weekly (7Nov2022): Tencent, Alibaba, Kuaishou, JD.com, Autohome, China Unicom

Research from Quam Securities, Quam Securities

Quam Securities Research

Research from Quam Securities

Quam Securities

Since its inception in 1986, Quam Securities Limited (Quam Securities) has grown to become one of the few mid-tier securities brokerages in Hong Kong with global execution capabilities for both private and institutional clients. It boasts a well-established network in Greater China including Taiwan and in major world markets through the Global Alliance Partners (GAP). Quam Securities is well-positioned not only to harness and drive business within the China Tonghai International Financial Limited but also between China and the world markets.

<ul><li>Although China Telecom’s (CT) 3Q results slightly disappointed, which was due to slower growth in mobile and industrial digitization, we believe the underlying growth momentum remains on the back of steady 5G growth in the industry.</li><li>We have lowered our earnings forecasts and TP (HK$3.80), which reflects both slower than expected revenue growth as well as a lowered FX assumption for the RMB.</li><li>However, we believe the company’s valuation and dividend yld remains attractive and justify our BUY call with a potential upside of 37%. </li></ul>

Although China Telecom’s (CT) 3Q results slightly disappointed, which was due to slower growth in mobile and industrial digitization, we believe the underlying growth momentum remains on the back of steady 5G growth in the industry.We have lowered our earnings forecasts and TP (HK$3.80), which reflects both slower than expected revenue growth as well as a lowered FX assumption for the RMB.However, we believe the company’s valuation and dividend yld remains attractive and justify our BUY call with a potential upside of 37%. 

China Telecom (728 HK) - Earnings Revision - A Slight Disappointment in 3Q

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

Quantitative Analysis

<ul>
<li>We analyse the changes of A-H premium on 142 stocks over the last week. The average A-H premium was 127.4% as of Oct 21st.</li>
<li>The average A-H premium changed by -2.8ppt weeok on week, led by consumer staples, consumer discretionary, energy and offset by financials.</li>
<li>We highlight weekly changes in A-H premium for Remegen, Pharmaron, Flat Glass, Shanghai Fudan, GWM, China Life.</li>
</ul>


We analyse the changes of A-H premium on 142 stocks over the last week. The average A-H premium was 127.4% as of Oct 21st.
The average A-H premium changed by -2.8ppt weeok on week, led by consumer staples, consumer discretionary, energy and offset by financials.
We highlight weekly changes in A-H premium for Remegen, Pharmaron, Flat Glass, Shanghai Fudan, GWM, China Life.


A-H Premium Weekly (Oct 21st): Remegen, Pharmaron, Flat Glass, Shanghai Fudan, GWM, China Life

<ul>
<li>We analyse the changes of A-H premium on 142 stocks over the last week. The average A-H premium was 125.5% as of Sep 30th.</li>
<li>The average A-H premium changed by 6.5ppt weeok on week, led by consumer staples, industrials, communication services.</li>
<li>We highlight weekly changes in A-H premium for Ping An, Bankcomm, Angang Steel, Remegen, Qingdao Port, China Tourism, Asymchem Lab, Flat Glass.</li>
</ul>


We analyse the changes of A-H premium on 142 stocks over the last week. The average A-H premium was 125.5% as of Sep 30th.
The average A-H premium changed by 6.5ppt weeok on week, led by consumer staples, industrials, communication services.
We highlight weekly changes in A-H premium for Ping An, Bankcomm, Angang Steel, Remegen, Qingdao Port, China Tourism, Asymchem Lab, Flat Glass.


A-H Premium Weekly (Sep 30th): China Tourism at New Low Since Listing

Thematic (Sector/Industry)

<ul><li>MIIT recently released Aug operating data for the telecoms industry in China. On items related to revenues, MIIT reported on YTD basis and, for 8M22, telecoms industry revenue grew 8.2% y/y, which slowed marginally from 8.3% for 7M22.</li><li>Mobile data traffic revenue, which is the single biggest item and accounted for 40.9% of total industry revenue in 8M22, edged up 0.5% y/y.</li><li>Revenue of new businesses, which include IPTV, IDC, big data, cloud and IoT, continued to be the star performer with YTD y/y growth of 34.1%.</li></ul>

MIIT recently released Aug operating data for the telecoms industry in China. On items related to revenues, MIIT reported on YTD basis and, for 8M22, telecoms industry revenue grew 8.2% y/y, which slowed marginally from 8.3% for 7M22.Mobile data traffic revenue, which is the single biggest item and accounted for 40.9% of total industry revenue in 8M22, edged up 0.5% y/y.Revenue of new businesses, which include IPTV, IDC, big data, cloud and IoT, continued to be the star performer with YTD y/y growth of 34.1%.

Tactical Trade Ideas – Telecoms-A Small Step in Revenue Growth, a Giant Leap in Sentiment

China

China Telecom Corporation Limited, through its subsidiaries, provides wireline telephone, data, and Internet, as well as leased line services in China.

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China Telecom Corp Ltd (Adr) (CHA US)

China Internet Weekly (7Nov2022): Tencent, Alibaba, Kuaishou, JD.com, Autohome, China Unicom

Tencent and Alibaba are rumored to be acquired by state-owned companies. Tencent charges for more functions and JD.com re-organized to cut cost....

Ming Lu

China Telecom (728 HK) - Earnings Revision - A Slight Disappointment in 3Q

We have lowered our earnings forecasts and TP (HK$3.80), which reflects both slower than expected revenue growth as well as a lowered FX assumption...

Quam Securities

A-H Premium Weekly (Oct 21st): Remegen, Pharmaron, Flat Glass, Shanghai Fudan, GWM, China Life

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Remegen, Pharmaron, Flat Glass, Shanghai Fudan, GWM, China...

Ke Yan, CFA, FRM

A-H Premium Weekly (Sep 30th): China Tourism at New Low Since Listing

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Ping An, Bankcomm, Angang Steel, Remegen, Qingdao Port,...

Ke Yan, CFA, FRM

Tactical Trade Ideas – Telecoms-A Small Step in Revenue Growth, a Giant Leap in Sentiment

Mobile data traffic revenue, which is the single biggest item and accounted for 40.9% of total industry revenue in 8M22, edged up 0.5% y/y.

Quam Securities

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