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 136 stocks over the last week.</li>
<li>A/H premium increase was led by consumer Staples and consumer discretionary and industrials sectors.</li>
<li>We highlight A/H premium at 52 week peak: BYD, Xinjiang Gold Wind, Ganfeng Lithium. </li>
</ul>


We analyse the changes of A/H premium on 136 stocks over the last week.
A/H premium increase was led by consumer Staples and consumer discretionary and industrials sectors.
We highlight A/H premium at 52 week peak: BYD, Xinjiang Gold Wind, Ganfeng Lithium. 


A/H Premium Weekly: BYD, Xinjiang Gold Wind, Ganfeng Lithium

HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

Cosco Shipping Energy Transportation Co. Ltd. (H) / Equity Bottom-Up

Cosco Shipping Energy Transportation Co. Ltd. (H)

<ul>
<li>US crude export growth is the positive driver while China import contraction is the negative for tanker ton-mile demand in last year which contraction 5.3% YoY.  </li>
<li>Significant room exists for a rebound in US oil export as oil majors announced plans to increase output. China's import growth will recover in the next 12-18 months as well. </li>
<li>US oil export to China needs 2x more VLCC than from Arabian Gulf. This bodes well for tanker rate, benefiting <a href="https://www.smartkarma.com/entities/cosco-shipping-energy-tran-h" target="_blank" data-smartkarma-citation="entities:646:1" rel="noopener">Cosco Shipping Energy (1138 HK)</a> in the medium term.</li>
</ul>


US crude export growth is the positive driver while China import contraction is the negative for tanker ton-mile demand in last year which contraction 5.3% YoY.  
Significant room exists for a rebound in US oil export as oil majors announced plans to increase output. China's import growth will recover in the next 12-18 months as well. 
US oil export to China needs 2x more VLCC than from Arabian Gulf. This bodes well for tanker rate, benefiting Cosco Shipping Energy (1138 HK) in the medium term.


COSCO Shipping Energy (1138 HK): US Crude Export and China Import the Wild Cards?

<ul>
<li>We think the FY21 massive losses of <a href="https://www.smartkarma.com/entities/cosco-shipping-energy-tran-h" target="_blank" data-smartkarma-citation="entities:646:1" rel="noopener">Cosco Shipping Energy Transportation Co. Ltd. (H) (1138 HK)</a> is a non-event, as reflected by the muted share price reaction following the pre-announcement. </li>
<li>The huge impairment charges have positive implications as vessel values are reduced and earnings expectations have trimmed. This will lower the hurdle for CSET in the next two years. </li>
<li>Focus should be on potential upside factors including recovery of tanker rate, higher LNG transportation contribution, rebound in vessel price and disposal gains and higher cost management incentives. </li>
</ul>


We think the FY21 massive losses of Cosco Shipping Energy Transportation Co. Ltd. (H) (1138 HK) is a non-event, as reflected by the muted share price reaction following the pre-announcement. 
The huge impairment charges have positive implications as vessel values are reduced and earnings expectations have trimmed. This will lower the hurdle for CSET in the next two years. 
Focus should be on potential upside factors including recovery of tanker rate, higher LNG transportation contribution, rebound in vessel price and disposal gains and higher cost management incentives. 


COSCO Shipping Energy (1138 HK): When All the Bad News Is Out...

<ul>
<li>We analyse the changes of A/H premium on 135 stocks over the last week.</li>
<li>Industrial, Energy and Communication Services were the top three sectors contributing to the A/H premium declines. </li>
<li>Yet 4 names are at 52 week high of A/H premium: Air China Ltd, Guangshen Railway, Shenzhen HepaLink, Beijing North Star.</li>
</ul>


We analyse the changes of A/H premium on 135 stocks over the last week.
Industrial, Energy and Communication Services were the top three sectors contributing to the A/H premium declines. 
Yet 4 names are at 52 week high of A/H premium: Air China Ltd, Guangshen Railway, Shenzhen HepaLink, Beijing North Star.


A/H Premium Weekly: Biggest A/H Premium Declines in a Year

<ul>
<li>VLCC rate has moved up in 4Q21 but share price has not - <a href="https://www.smartkarma.com/entities/cosco-shipping-energy-tran-h" target="_blank" data-smartkarma-citation="entities:646:1" rel="noopener">Cosco Shipping Energy Transportation Co. Ltd. (H) (1138 HK)</a> presents an interesting opportunity at just 0.4x P/B. </li>
<li>A bad 3Q21 result and a weak FY21 should be well reflected in the share price, but there are upside from things being less bad, fuelled by stronger oil demand.</li>
<li>CSET will also benefit from the structural trend of more oil export from US to China and the rise in scrapping of aged vessels in the medium term.</li>
</ul>


VLCC rate has moved up in 4Q21 but share price has not - Cosco Shipping Energy Transportation Co. Ltd. (H) (1138 HK) presents an interesting opportunity at just 0.4x P/B. 
A bad 3Q21 result and a weak FY21 should be well reflected in the share price, but there are upside from things being less bad, fuelled by stronger oil demand.
CSET will also benefit from the structural trend of more oil export from US to China and the rise in scrapping of aged vessels in the medium term.


COSCO Shipping Energy (1138 HK): Return Looks like Well Worth the Risk

China

COSCO SHIPPING Energy Transportation Co., Ltd. offers marine shipping services. The Company provides refined oil transportation, crude oil transportation, and other services. COSCO SHIPPING Energy Transportation also ships iron ores, dry bulks, coal, and other products.

Cosco Shipping Energy Transportation Co. Ltd. (H) (1138 HK)

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Cosco Shipping Energy Transportation Co. Ltd. (H) (1138 HK)

A/H Premium Weekly: BYD, Xinjiang Gold Wind, Ganfeng Lithium

We highlight A/H premium increase led by consumer Staples and consumer discretionary and industrials sectors, and stocks at 52 week high: BYD,...

Ke Yan, CFA, FRM

COSCO Shipping Energy (1138 HK): US Crude Export and China Import the Wild Cards?

CSET should benefit from ton-mile demand expansion driven by rise in US crude export and recovery in China import in the next 12-18 months. 1Q22...

Osbert Tang, CFA

COSCO Shipping Energy (1138 HK): When All the Bad News Is Out...

FY21 is a bad year for CSET, but we see the huge losses and impariments pave the way for better earnings going forward. Focus should be on the...

Osbert Tang, CFA

A/H Premium Weekly: Biggest A/H Premium Declines in a Year

The market average A/H premium registered the biggest declines in the past one year. We highlight top sectors by the decline of A/H premium, as...

Ke Yan, CFA, FRM

COSCO Shipping Energy (1138 HK): Return Looks like Well Worth the Risk

CSET's trough multiple seems to have factored in most of the bad news, but not the upturn in VLCC rates in 4Q21. We think return looks compelling...

Osbert Tang, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)