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 146 stocks over the last week. The average A-H premium was 104.9% as of Jun 28th.</li>
<li>The average A-H premium changed by 1.3ppt week-on-week, led by materials, consumer discretionary, energy and offset by real estate, health care, consumer staples.</li>
<li>We highlight weekly changes in A-H premium for China Tourism, Ganfeng Lithium, Air China, PetroChina, China Telecom.</li>
</ul>


We analyse the changes of A-H premium on 146 stocks over the last week. The average A-H premium was 104.9% as of Jun 28th.
The average A-H premium changed by 1.3ppt week-on-week, led by materials, consumer discretionary, energy and offset by real estate, health care, consumer staples.
We highlight weekly changes in A-H premium for China Tourism, Ganfeng Lithium, Air China, PetroChina, China Telecom.


A-H Premium Weekly (Jun 28th): China Tourism, Ganfeng Lithium, Air China, PetroChina, China Telecom

HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>There is no immediate impact of termination of 2M Alliance between <a href="https://www.smartkarma.com/entities/ap-moller-maersk-a-s" target="_blank" data-smartkarma-citation="entities:24755:1" rel="noopener">Ap Moller - Maersk A/S (MAERSKA DC)</a> and Mediterranean Shipping Company in 2025, but there are some long-term implications.</li>
<li>The change in competitive landscape will add uncertain operating variables to <a href="https://www.smartkarma.com/entities/china-cosco-holdings-h" target="_blank" data-smartkarma-citation="entities:286:1" rel="noopener">COSCO Shipping Holdings (1919 HK)</a> and <a href="https://www.smartkarma.com/entities/orient-overseas-international" target="_blank" data-smartkarma-citation="entities:801:1" rel="noopener">Orient Overseas International (316 HK)</a> as there is possibility of stiffer industry competition. </li>
<li>Port companies like <a href="https://www.smartkarma.com/entities/cosco-shipping-ports-ltd" target="_blank" data-smartkarma-citation="entities:360:1" rel="noopener">Cosco Shipping Ports (1199 HK)</a> and <a href="https://www.smartkarma.com/entities/china-merchants-port-holdings-company-ltd" target="_blank" data-smartkarma-citation="entities:15155:1" rel="noopener">China Merchants Port (144 HK)</a> may see improvement in their relative bargaining power, with potentially lower bulk volume discounts offered. </li>
</ul>


There is no immediate impact of termination of 2M Alliance between Ap Moller - Maersk A/S (MAERSKA DC) and Mediterranean Shipping Company in 2025, but there are some long-term implications.
The change in competitive landscape will add uncertain operating variables to COSCO Shipping Holdings (1919 HK) and Orient Overseas International (316 HK) as there is possibility of stiffer industry competition. 
Port companies like Cosco Shipping Ports (1199 HK) and China Merchants Port (144 HK) may see improvement in their relative bargaining power, with potentially lower bulk volume discounts offered. 


China Shipping Sector: Impacts of the Termination of 2M Alliance

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Bottom-Up

Singamas Container Holdings / Equity Bottom-Up

The conflation of a global pandemic, marginal air freight capacity, the Suez Canal blockage, Chinese port productivity curtailment due to Covid restrictions, a ten-fold increase in freight rates, and skyrocketing steel prices, has culminated in the mother-of-all sub-optimisation recipes.  
I've discussed this situation in <a href="https://skr.ma/SjpKV" target="_blank" rel="noopener">Game Of Ports: China's "Suez Blockage" Disruption</a>, <a href="https://skr.ma/dft2W" target="_blank" rel="noopener">Squeeze Box: The Port Congestion Contagion</a>, and <a href="https://skr.ma/GGQfY" target="_blank" rel="noopener">Yang Ming Marine (2609 TT): Cargo Shipping In First Class</a>.
<a href="https://www.smartkarma.com/entities/singamas-container-hldgs" target="_blank" data-smartkarma-citation="entities:13602:1" rel="noopener">Singamas Container Hldgs (716 HK)</a> is the only listed pure-play container manufacturer.  The company announced a positive profit alert on the <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0312/2021031201050.pdf" target="_blank" rel="noopener">12 March</a> for FY20, followed by a further profit positive alert on the <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0630/2021063001235.pdf" target="_blank" rel="noopener">30 June</a> for its first half financials. The most recent announcement flagged net profit not less than US$50mn compared to Singamas' then market cap of ~US$180mn.
Shares are up 35% in the last month and 169% in the past twelve months.
This week I had a chat with the Singamas' CFO to get a better understand of the dynamics currently at work, and what to expect going forward.

The conflation of a global pandemic, marginal air freight capacity, the Suez Canal blockage, Chinese port productivity curtailment due to Covid restrictions, a ten-fold increase in freight rates, and skyrocketing steel prices, has culminated in the mother-of-all sub-optimisation recipes.  
I've discussed this situation in Game Of Ports: China's "Suez Blockage" Disruption, Squeeze Box: The Port Congestion Contagion, and Yang Ming Marine (2609 TT): Cargo Shipping In First Class.
Singamas Container Hldgs (716 HK) is the only listed pure-play container manufacturer.  The company announced a positive profit alert on the 12 March for FY20, followed by a further profit positive alert on the 30 June for its first half financials. The most recent announcement flagged net profit not less than US$50mn compared to Singamas' then market cap of ~US$180mn.
Shares are up 35% in the last month and 169% in the past twelve months.
This week I had a chat with the Singamas' CFO to get a better understand of the dynamics currently at work, and what to expect going forward.

<ul>
<li>We analyse the changes of A-H premium on 146 stocks over the last week. The average A-H premium was 103.3% as of Jun 21st.</li>
<li>The average A-H premium changed by -1.5ppt week-on-week, led by real estate, communication services, consumer staples and offset by utilities, information technology.</li>
<li>We highlight weekly changes in A-H premium for China Tourism, Shenhua, China Telecom, CNOOC, Hua Hong Semi, YOFC, Huadian.</li>
</ul>


We analyse the changes of A-H premium on 146 stocks over the last week. The average A-H premium was 103.3% as of Jun 21st.
The average A-H premium changed by -1.5ppt week-on-week, led by real estate, communication services, consumer staples and offset by utilities, information technology.
We highlight weekly changes in A-H premium for China Tourism, Shenhua, China Telecom, CNOOC, Hua Hong Semi, YOFC, Huadian.


A-H Premium Weekly (Jun 21st): China Tourism, Shenhua, China Telecom, CNOOC, Hua Hong Semi, YOFC

<ul>
<li>We analyse the changes of A-H premium on 146 stocks over the last week. The average A-H premium was 105.3% as of Jun 14th.</li>
<li>The average A-H premium changed by 1.6ppt week-on-week, led by consumer discretionary, information technology, financials and offset by consumer staples, utilities, real estate.</li>
<li>We highlight weekly changes in A-H premium for  China Tourism, CGN Power, Huadian Power, Hua Hong Semi, Huaneng Power.</li>
</ul>


We analyse the changes of A-H premium on 146 stocks over the last week. The average A-H premium was 105.3% as of Jun 14th.
The average A-H premium changed by 1.6ppt week-on-week, led by consumer discretionary, information technology, financials and offset by consumer staples, utilities, real estate.
We highlight weekly changes in A-H premium for  China Tourism, CGN Power, Huadian Power, Hua Hong Semi, Huaneng Power.


A-H Premium Weekly (Jun 14th): China Tourism, CGN Power, Huadian Power, Hua Hong Semi, Huaneng Power

China

Cosco Shipping Development Co., Ltd is a container shipping company based in China.  The Company owns, charters, and operates container vessels for the provision of international and domestic container marine transportation services.

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Cosco Shipping Development (2866 HK)

A-H Premium Weekly (Jun 28th): China Tourism, Ganfeng Lithium, Air China, PetroChina, China Telecom

We analyzed A-H premium changes in the past week and highlight A-H premium changes for China Tourism, Ganfeng Lithium, Air China, PetroChina, China...

Ke Yan, CFA, FRM

China Shipping Sector: Impacts of the Termination of 2M Alliance

Termination of 2M Alliance may mean stiffer competition to be faced by Cosco Holdings and OOIL. Meanwhile, port companies like Cosco Shipping Port...

Osbert Tang, CFA

Singamas (716 HK): Q&A With The CFO

Even assuming Singamas makes a conservative US$50mn for FY22E, and applying an 8x PER multiple, its average over a four-year period in 2011-2014, I...

David Blennerhassett

A-H Premium Weekly (Jun 21st): China Tourism, Shenhua, China Telecom, CNOOC, Hua Hong Semi, YOFC

We analyzed A-H premium changes in the past week and highlight A-H premium changes for China Tourism, Shenhua, China Telecom, CNOOC, Hua Hong Semi,...

Ke Yan, CFA, FRM

A-H Premium Weekly (Jun 14th): China Tourism, CGN Power, Huadian Power, Hua Hong Semi, Huaneng Power

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

Ke Yan, CFA, FRM

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