Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/dai-ichi-life-insurance" target="_blank" data-smartkarma-citation="entities:1109:1" rel="noopener"><strong>Dai Ichi Life (8750 JP)</strong></a> has the wherewithal, and probably the synergies to make a bump for <strong><a href="https://www.smartkarma.com/entities/benefit-one-inc" target="_blank" data-smartkarma-citation="entities:14502:1" rel="noopener">Benefit One (2412 JP)</a></strong> work. M3 is clearly not in the driver's seat.</li>
<li>
<strong><a href="https://www.smartkarma.com/entities/china-united-network-a" target="_blank" data-smartkarma-citation="entities:12620:1" rel="noopener">China United Network (600050 CH)</a></strong> is, for all intent and purpose, a pseudo-A to <strong><a href="https://www.smartkarma.com/entities/china-unicom-hong-kong-ltd" target="_blank" data-smartkarma-citation="entities:1016:1" rel="noopener">China Unicom (762 HK)</a></strong>. Go long Unicom, short United due to Unicom's significantly cheaper valuation.</li>
<li>
<a href="https://www.smartkarma.com/entities/zhejiang-expressway-co-h" target="_blank" data-smartkarma-citation="entities:2178:1" rel="noopener"><strong>Zhejiang Expressway (576 HK)</strong></a> has had a stonking run since its rights issue. Look to unwind this set-up and take the other side: short Expressway, long <strong><a href="https://www.smartkarma.com/entities/zheshang-securities-co-ltd" target="_blank" data-smartkarma-citation="entities:29981:1" rel="noopener">Zheshang Securities (601878 CH)</a>.</strong>
</li>
</ul>



Dai Ichi Life (8750 JP) has the wherewithal, and probably the synergies to make a bump for Benefit One (2412 JP) work. M3 is clearly not in the driver's seat.

China United Network (600050 CH) is, for all intent and purpose, a pseudo-A to China Unicom (762 HK). Go long Unicom, short United due to Unicom's significantly cheaper valuation.

Zhejiang Expressway (576 HK) has had a stonking run since its rights issue. Look to unwind this set-up and take the other side: short Expressway, long Zheshang Securities (601878 CH).



Last Week in Event SPACE: Benefit One, China Unicom, Zhejiang Expressway/ Zheshang Sec, Hollysys

<ul>
<li>I tally 46 - mostly firm, mostly Asia-Pac - transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.</li>
<li>Two new deals discussed this week on Smartkarma: <strong><a href="https://www.smartkarma.com/entities/genetron-holdings-ltd" target="_blank" data-smartkarma-citation="entities:28435:1" rel="noopener">Genetron Holdings Ltd (GTH US)</a></strong>'s take-private transaction; and<strong><a href="https://www.smartkarma.com/entities/medley-inc" target="_blank" data-smartkarma-citation="entities:31041:1" rel="noopener">Medley (4480 JP)</a></strong>'s buy out of <strong><a href="https://www.smartkarma.com/entities/guppy-s-inc" target="_blank" data-smartkarma-citation="entities:40692:1" rel="noopener">GUPPY's Inc (5127 JP)</a></strong>.</li>
<li>Key updates took place on: <strong><a href="https://www.smartkarma.com/entities/orecorp-ltd" target="_blank" data-smartkarma-citation="entities:8120:1" rel="noopener">Orecorp (ORR AU)</a></strong>, <strong><a href="https://www.smartkarma.com/entities/weiqiao-textile-co" target="_blank" data-smartkarma-citation="entities:3690:1" rel="noopener">Weiqiao Textile (2698 HK)</a></strong>, <strong><a href="https://www.smartkarma.com/entities/benefit-one-inc" target="_blank" data-smartkarma-citation="entities:14502:1" rel="noopener">Benefit One (2412 JP)</a></strong>, <strong><a href="https://www.smartkarma.com/entities/taisho-pharmaceutical-holdin" target="_blank" data-smartkarma-citation="entities:3774:1" rel="noopener">Taisho Pharmaceutical (4581 JP)</a></strong>, <strong><a href="https://www.smartkarma.com/entities/t-k-toka-co-ltd" target="_blank" data-smartkarma-citation="entities:18678:1" rel="noopener">T&amp;K Toka (4636 JP)</a></strong>, and <strong><a href="https://www.smartkarma.com/entities/hollysys-automation-technologies" target="_blank" data-smartkarma-citation="entities:26078:1" rel="noopener">Hollysys Automation Technologies (HOLI US)</a></strong>.</li>
</ul>


I tally 46 - mostly firm, mostly Asia-Pac - transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
Two new deals discussed this week on Smartkarma: Genetron Holdings Ltd (GTH US)'s take-private transaction; andMedley (4480 JP)'s buy out of GUPPY's Inc (5127 JP).
Key updates took place on: Orecorp (ORR AU), Weiqiao Textile (2698 HK), Benefit One (2412 JP), Taisho Pharmaceutical (4581 JP), T&amp;K Toka (4636 JP), and Hollysys Automation Technologies (HOLI US).


(Mostly) Asia-Pac Weekly Risk Arb Wrap: Genetron, Guppy, Weiqiao Textile, Taisho Pharma, T&K Toka

Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/burning-rock-biotech-ltd" target="_blank" data-smartkarma-citation="entities:28970:1" rel="noopener">Burning Rock Biotech (BNR US)</a> shares plunged 35% since I published bearish insight on the company in November. Weak Q3 results, slower recovery, and the U.S.-China conflict remained major overhangs.</li>
<li>However, the shares are now trading at two-week high, as the company received approval for its second NGS kit in China and reported slightly better-than-expected Q4 results.</li>
<li>Investors should continue to avoid Burning Rock shares for near-term and wait for COVID cases to subside in China and resolution of the U.S.-China conflict.</li>
</ul>



Burning Rock Biotech (BNR US) shares plunged 35% since I published bearish insight on the company in November. Weak Q3 results, slower recovery, and the U.S.-China conflict remained major overhangs.
However, the shares are now trading at two-week high, as the company received approval for its second NGS kit in China and reported slightly better-than-expected Q4 results.
Investors should continue to avoid Burning Rock shares for near-term and wait for COVID cases to subside in China and resolution of the U.S.-China conflict.


Burning Rock Biotech (BNR US): Attractive Growth Story Outshined by Surging COVID Cases in China

<ul>
<li>
<a href="https://www.smartkarma.com/entities/burning-rock-biotech-ltd" target="_blank" data-smartkarma-citation="entities:28970:1" rel="noopener">Burning Rock Biotech (BNR US) </a>is China’s leading NGS-based therapy selection testing company for late-stage cancer patients. Thus far, the company has completed more than 300,000 tissue and liquid-based tests.</li>
<li>The company is in a structural transition towards in-hospital business model, which is negatively impacting the blended ASP and profitability. Due to upcoming new product launch in next year and ongoing clinical studies, opex is now accounting for more than 230% of revenue, which is expected to continue.</li>
<li>Amid the recent spread of delta variant in China, this insight has analyzed near-term growth prospect of Burning Rock ahead of its Q3 results announcement on November 16.  </li>
</ul>



Burning Rock Biotech (BNR US) is China’s leading NGS-based therapy selection testing company for late-stage cancer patients. Thus far, the company has completed more than 300,000 tissue and liquid-based tests.
The company is in a structural transition towards in-hospital business model, which is negatively impacting the blended ASP and profitability. Due to upcoming new product launch in next year and ongoing clinical studies, opex is now accounting for more than 230% of revenue, which is expected to continue.
Amid the recent spread of delta variant in China, this insight has analyzed near-term growth prospect of Burning Rock ahead of its Q3 results announcement on November 16.  


Burning Rock Biotech (BNR US): Muted Near-Term Outlook on Resurgence of COVID-19 in China

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

Kindstar Globalgene Technology / Equity Capital Markets

<div><p><a href="https://www.smartkarma.com/entities/kindstar-globalgene-technology-inc" target="_blank" data-smartkarma-citation="entities:32175:1" rel="noopener">Kindstar Globalgene Technology (9960 HK)</a> is a leading independent esoteric clinical testing service provider in China. Kindstar provides full-spectrum testing services primarily to hospitals in various speciality areas, including hematology, genetic diseases and rare diseases, infectious diseases, oncology, neurology and maternity-related diseases. In 2020, Kindstar had a 4.1% revenue market share of the total esoteric testing market in China, according to Frost &amp; Sullivan. </p></div><div><p>At the proposed IPO price range of HK$8.60-9.78 per share, Kindstar will have a market cap of HK$7,788.3-8,857.0 ($1.0-1.1 billion). At the mid-point of the IPO price range, the total net proceeds are HK$1,931.1 million ($250 million). </p></div><div><p>Seven cornerstone investors will subscribe for $140 million of the offer shares (52.2% of the offer shares at the mid-point of the IPO price). The cornerstone investors include BlackRock, CPE, Snow Lake Capital, Carmignac Funds, Natixis Investment Managers, Athos Capital and IvyRock Asset Management.</p></div><div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/kindstar-globalgene-ipo-initiation-testing-testing" target="_blank" data-smartkarma-citation="insights:53731" rel="noopener">Kindstar Globalgene IPO Initiation: Testing, Testing</a>, we stated that the business has successfully overcome the negative impact of the COVID-19 pandemic, with most of its segments displaying either a return to growth or lower revenue declines in 4Q20 in comparison to 9M20. In combination, with solid operating leverage and cash generation, we think that the Kindstar IPO is worth a look. Overall, we would participate in the IPO due to an attractive IPO price range.</p></div></div></div>

Kindstar Globalgene Technology (9960 HK) is a leading independent esoteric clinical testing service provider in China. Kindstar provides full-spectrum testing services primarily to hospitals in various speciality areas, including hematology, genetic diseases and rare diseases, infectious diseases, oncology, neurology and maternity-related diseases. In 2020, Kindstar had a 4.1% revenue market share of the total esoteric testing market in China, according to Frost &amp; Sullivan. At the proposed IPO price range of HK$8.60-9.78 per share, Kindstar will have a market cap of HK$7,788.3-8,857.0 ($1.0-1.1 billion). At the mid-point of the IPO price range, the total net proceeds are HK$1,931.1 million ($250 million). Seven cornerstone investors will subscribe for $140 million of the offer shares (52.2% of the offer shares at the mid-point of the IPO price). The cornerstone investors include BlackRock, CPE, Snow Lake Capital, Carmignac Funds, Natixis Investment Managers, Athos Capital and IvyRock Asset Management.In Kindstar Globalgene IPO Initiation: Testing, Testing, we stated that the business has successfully overcome the negative impact of the COVID-19 pandemic, with most of its segments displaying either a return to growth or lower revenue declines in 4Q20 in comparison to 9M20. In combination, with solid operating leverage and cash generation, we think that the Kindstar IPO is worth a look. Overall, we would participate in the IPO due to an attractive IPO price range.

Kindstar Globalgene IPO: Valuation Insights

China

Genetron Holdings Limited operates as a biology company. The Company develops treatment for cancer. Genetron Holdings serves customers in China.

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Genetron Holdings Ltd (GTH US)

Last Week in Event SPACE: Benefit One, China Unicom, Zhejiang Expressway/ Zheshang Sec, Hollysys

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Genetron, Guppy, Weiqiao Textile, Taisho Pharma, T&K Toka

This insight provides a summary of gross/annualised spreads (on deals discussed on Smartkarma) across Asia-Pacific as at the last trading date, and...

David Blennerhassett

Burning Rock Biotech (BNR US): Attractive Growth Story Outshined by Surging COVID Cases in China

Burning Rock is well-positioned for long-term growth amid large market potential and new product launches. However, near-term outlook is murky due...

Tina Banerjee

Burning Rock Biotech (BNR US): Muted Near-Term Outlook on Resurgence of COVID-19 in China

Burning Rock shares have recovered 20% from lows. This insight has analyzed near-term growth prospect of Burning Rock ahead of its Q3 results...

Tina Banerjee

Kindstar Globalgene IPO: Valuation Insights

At the mid-point of the IPO price range, the total net proceeds are HK$1,931.1 million ($250 million). Overall, we would participate in the IPO due...

Arun George

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