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 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

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.

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

<ul>
<li>We analyse the changes of A-H premium on 142 stocks over the last week. The average A-H premium was 113.9% as of Sep 16th.</li>
<li>The average A-H premium changed by -4.6ppt weeok on week, led by financials,  communication services, health care, and offset by consumer staples, consumer discretionary, utilities.</li>
<li>We highlight weekly changes in A-H premium for Angang, CIMC, Zoomlion, Huatai securities, Tianqi Lithium, China Telecom.</li>
</ul>


We analyse the changes of A-H premium on 142 stocks over the last week. The average A-H premium was 113.9% as of Sep 16th.
The average A-H premium changed by -4.6ppt weeok on week, led by financials,  communication services, health care, and offset by consumer staples, consumer discretionary, utilities.
We highlight weekly changes in A-H premium for Angang, CIMC, Zoomlion, Huatai securities, Tianqi Lithium, China Telecom.


A-H Premium Weekly (Sep 16th): Angang, CIMC, Zoomlion, Huatai, Tianqi Lithium

<ul>
<li>We analyse the changes of A-H premium on 142 stocks over the last week. The average A-H premium was 112.0% as of Aug 26th.</li>
<li>The average A-H premium changed by 0.4ppt, led by Financials, Utilities and offset by Information Technology, Real Estate, Consumer Discretionary. </li>
<li>We highlight weekly changes in A-H premium for China Telecom, China Life, Huaneng Power, Chongqing Iron, CICC.</li>
</ul>


We analyse the changes of A-H premium on 142 stocks over the last week. The average A-H premium was 112.0% as of Aug 26th.
The average A-H premium changed by 0.4ppt, led by Financials, Utilities and offset by Information Technology, Real Estate, Consumer Discretionary. 
We highlight weekly changes in A-H premium for China Telecom, China Life, Huaneng Power, Chongqing Iron, CICC.


A-H Premium Weekly (Aug 26th): China Telecom, China Life, Huaneng Power, Chongqing Iron, CICC

<ul><li>We initiate coverage on the three Chinese telcos following their impressive 1H22 results.</li><li>We rate all three as BUYs with China Unicom (762 HK, BUY) and China Telecom (728 HK, BUY) as our top picks.</li><li>Despite their outperformance YTD, all three are still attractive in PE valuation with a range of 5.6-7.5x FY23 earnings and div yld of 9.5- 9.9%.</li></ul>

We initiate coverage on the three Chinese telcos following their impressive 1H22 results.We rate all three as BUYs with China Unicom (762 HK, BUY) and China Telecom (728 HK, BUY) as our top picks.Despite their outperformance YTD, all three are still attractive in PE valuation with a range of 5.6-7.5x FY23 earnings and div yld of 9.5- 9.9%.

TMT – Chinese Telcos - Growth Momentum Sustained

China

China Tower Corporation Limited operates as a telecommunication company. The Company provides telecommunication towers construction, towers maintenance, ancillary facilities management, and other services. China Tower provides its services throughout China.

China Communications Services Corporation Limited provides specialized telecommunications support services to telecommunications operators.  The Company offers telecommunications infrastructure services, including design, construction and project supervision and management, business process outsourcing services , and applications, content and other services.

China Communications Services Corp Ltd. (552 HK)

263 Network Communications Co Ltd provides internet services and modern communication technology.  The Company's products include anti spam e-mail service, telephone conference system, and business messenger software.

Hangzhou Huaxing Chuangye Communication Technology Co., Ltd researches, produces and sells test optimization system.  The Company also provides census, assessments and, optimization services of mobile communication network.

China United Network Communications Limited provides a variety of telecommunication services, including GSM and CDMA wireless telecommunication services, international and domestic long distance communication services, data communication and Internet services, as well as paging services.

Dr. Peng Telecom & Media Group Co., Ltd. provides value-added telecommunications services. The company offers Internet access, e-government, Internet data center, and private network and operations services, as well as network security monitoring, city surveillance, toll-shunt, and other value-added network services.

NetEase, Inc. is an Internet technology company that develops applications, services and other Internet technologies in China. The Company's core businesses consist of email service, web portal and online entertainment, including online gaming services. NetEase also offers online advertising, search, mobile applications and e-commerce.

Beijing Bewinner Communications Co., Ltd. provides telecommunications services to mobile communication users.

Beijing Bewinner Communications Co., (002148 CH)

Kunlun Tech Co., Ltd. offers comprehensive Internet value-added services. The Company focuses on social network interactive and online game fields. Kunlun Tech also provides localized translation outsourcing and agency advertising services.

Bilibili Inc. provides online entertainment services. The Company offers a platform that covers a wide array of genres and media formats, including videos, live broadcasting, mobile games, animation, and comics. Bilibili serves customers in China.

Singapore Telecommunications Limited wireless telecommunication services. The Company offers diverse range of services including fixed, mobile, data, internet, TV,  and digital solutions. Singapore Telecommunications serves customers worldwide.

Telstra Corporation Limited is a full service domestic and international telecommunications provider for Australia.  The Company provides telephone exchange lines to homes and businesses, supplying local, long distance and international telephone calls and supplying mobile telecommunications services. Telstra also provides data, internet, on-line services and directory services.

Swisscom AG operates public telecommunications networks and offers network application services.  The Company provides local, long-distance, and mobile telephone services, integrated voice and data digital services, network solutions to national and international telecommunications operators, and Internet access services, and owns and operates pay telephones.

BCE Inc., provides a full range of communication services to residential and business customers in Canada.  The Company's services includes local, long distance and wireless phone services, high speed and wireless Internet access, IP-broadband services, value-added business solutions and direct-to-home satellite and VDSL television services.

Nippon Telegraph and Telephone Corporation provides a variety of telecommunication services, including telephone, telegraph, leased circuits, data communication, terminal equipment sales, and related services. The Company provides both local and long distance telephone services within Japan.

NTT (Nippon Telegraph & Telephone) (9432 JP)

China Unicom (Hong Kong) Limited, through its subsidiaries, provides telecommunications services in the People's Republic of China.  The Company's services include cellular, paging, long distance, data, and Internet services.

Chunghwa Telecom Co., Ltd. provides local, domestic, and international long distance services. The Company also offers wireless telecommunication, paging, and Internet services.

SBA Communications Corporation owns and operates wireless communications infrastructure in the United States. The Company offers site leasing and development, construction, and consulting services. SBA Communications leases antenna space on its multi-tenant towers to a variety of wireless service providers under long-term lease contracts.

Cellnex Telecom S.A.U. is an independent operator of wireless telecommunications infrastructure and broadcast infrastructure. The Company's sites are located in Spain and Italy.

Telefonica S.A. provides telecommunications services mainly to countries in Europe and Latin America.  The Company offers fixed-line and mobile telephone, Internet, and data transmission services to residential and corporate customers.

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 (H) (728 HK)

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

A-H Premium Weekly (Sep 16th): Angang, CIMC, Zoomlion, Huatai, Tianqi Lithium

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Angang, CIMC, Zoomlion, Huatai securities, Tianqi Lithium,...

Ke Yan, CFA, FRM

A-H Premium Weekly (Aug 26th): China Telecom, China Life, Huaneng Power, Chongqing Iron, CICC

We analyzed A-H premium last week and highlight weekly changes in A-H premium for China Telecom, China Life, Huaneng Power, Chongqing Iron, CICC.

Ke Yan, CFA, FRM

TMT – Chinese Telcos - Growth Momentum Sustained

Despite their outperformance YTD, all three are still attractive in PE valuation with a range of 5.6-7.5x FY23 earnings and div yld of 9.5- 9.9%.

Quam Securities

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