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

<p><a href="https://www.smartkarma.com/entities/venus-medtech-hangzhou-inc" target="_blank" data-smartkarma-citation="entities:28257:1" rel="noopener">Venus MedTech Hangzhou Inc (1392140D CH)</a> is a leading transcatheter heart valve medical device company in China. VenusA-Valve, a self-developed product, was launched in August 2017 and is the first TAVR (transcatheter aortic heart valve replacement) product to be commercialised in China. According to a Bloomberg article in August 2018, Venus is seeking to raise $300-500 million.</p><div class="content-highlight"><p>Although Venus falls under HKEX’s definition of a biotech company, it generates meaningful revenue from VenusA-Valve. With a large addressable market opportunity and first-mover advantage in China, we believe that Venus’s fundamentals are heading in the right direction</p></div>

Venus MedTech Hangzhou Inc (1392140D CH) is a leading transcatheter heart valve medical device company in China. VenusA-Valve, a self-developed product, was launched in August 2017 and is the first TAVR (transcatheter aortic heart valve replacement) product to be commercialised in China. According to a Bloomberg article in August 2018, Venus is seeking to raise $300-500 million.Although Venus falls under HKEX’s definition of a biotech company, it generates meaningful revenue from VenusA-Valve. With a large addressable market opportunity and first-mover advantage in China, we believe that Venus’s fundamentals are heading in the right direction

Venus Medtech IPO Initiation: The Heart of the Business

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<p>The S&amp;P 500 made a new all-time closing high following the largely as-expected U.S.-China trade cease-fire agreement, but it did so unconvincingly. We would not call it a breakout as the market closed well off of the opening highs and not one cyclical Sector is decisively in new high territory. Overall, the market is sending mixed signals. Barring additional positive developments we believe upside is likely to be muted from here. In today’s report we highlight attractive Groups and stocks within Health Care, Services, and Technology: Diagnostic Imaging, Construction &amp; Engineering, Large-Cap, and Solar Energy.</p>

The S&amp;P 500 made a new all-time closing high following the largely as-expected U.S.-China trade cease-fire agreement, but it did so unconvincingly. We would not call it a breakout as the market closed well off of the opening highs and not one cyclical Sector is decisively in new high territory. Overall, the market is sending mixed signals. Barring additional positive developments we believe upside is likely to be muted from here. In today’s report we highlight attractive Groups and stocks within Health Care, Services, and Technology: Diagnostic Imaging, Construction &amp; Engineering, Large-Cap, and Solar Energy.

Event-Driven

<p>Frustration on the slow progress of the LTAP bid came to a head at the recent AGM, where shareholders registered what appeared to be protest votes aimed at <a href="https://www.smartkarma.com/entities/18531" target="_blank" data-smartkarma-citation="entities:18531:1">Graincorp Ltd A (GNC AU)</a>’s director elections and remuneration. The Board has currently three options to unlock shareholder value – achieve a binding LTAP bid, commence the portfolio review driven sale process or adopt the Tanarra Capital proposal.</p><div class="content-highlight"><p>The option with the highest potential to unlock shareholder value remains the LTAP bid. However, the Board’s dithering and pursual of unattractive alternative options have given LTAP more justification to lower than bump its bid, in our view.</p></div>

Frustration on the slow progress of the LTAP bid came to a head at the recent AGM, where shareholders registered what appeared to be protest votes aimed at Graincorp Ltd A (GNC AU)’s director elections and remuneration. The Board has currently three options to unlock shareholder value – achieve a binding LTAP bid, commence the portfolio review driven sale process or adopt the Tanarra Capital proposal.The option with the highest potential to unlock shareholder value remains the LTAP bid. However, the Board’s dithering and pursual of unattractive alternative options have given LTAP more justification to lower than bump its bid, in our view.

GrainCorp (GNC AU): Pressure Mounts, Diminishing the Prospects of a Bump to the LTAP Bid

Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

Cross Asset Strategy

<p>We analyse the holdings of the world's largest banks by the 255 global equity funds in our analysis. For each region (America/EMEA/Asia), we have selected the 6 largest banks by total assets, as defined by the S&amp;P Global Market Intelligence Report, 2018.</p><p>We find that overall, holdings in these banks are on the decline, and in some cases, investor flight has been acute.  Only 2 of the 18 banks are held overweight by global investors, with <a href="https://www.smartkarma.com/entities/279" target="_blank" data-smartkarma-citation="entities:279:1">Citigroup Inc (C US)</a> and <a href="https://www.smartkarma.com/entities/525" target="_blank" data-smartkarma-citation="entities:525:1">Bnp Paribas (BNP FP)</a> seeing the biggest exodus through 2018.</p>

We analyse the holdings of the world's largest banks by the 255 global equity funds in our analysis. For each region (America/EMEA/Asia), we have selected the 6 largest banks by total assets, as defined by the S&amp;P Global Market Intelligence Report, 2018.We find that overall, holdings in these banks are on the decline, and in some cases, investor flight has been acute.  Only 2 of the 18 banks are held overweight by global investors, with Citigroup Inc (C US) and Bnp Paribas (BNP FP) seeing the biggest exodus through 2018.

Big Banks - A Crisis of Investor Confidence

<p><a href="https://www.smartkarma.com/entities/18531" target="_blank" data-smartkarma-citation="entities:18531:1">Graincorp Ltd A (GNC AU)</a> revealed that it received a non-binding indicative offer from the Long Term Asset Partners (LTAP) consortium. The all-cash offer of A$10.42 per share represents a 43% premium to the Friday closing price.</p><div class="content-highlight"><p>Overall, we believe that it will be in the best interest of shareholders for the GainCorp board to accept the bid. </p></div>

Graincorp Ltd A (GNC AU) revealed that it received a non-binding indicative offer from the Long Term Asset Partners (LTAP) consortium. The all-cash offer of A$10.42 per share represents a 43% premium to the Friday closing price.Overall, we believe that it will be in the best interest of shareholders for the GainCorp board to accept the bid. 

GrainCorp (GNC AU): Hard to Say No to LTAP

United States

The Goldman Sachs Group, Inc., a bank holding company, is a global investment banking and securities firm specializing in investment banking, trading and principal investments, asset management and securities services.  The Company provides services to corporations, financial institutions, governments, and high-net worth individuals.

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Goldman Sachs Group (GS US)

Venus Medtech IPO Initiation: The Heart of the Business

Venus MedTech Hangzhou Inc (1392140D CH) is a leading transcatheter heart valve medical device company in China. VenusA-Valve, a self-developed...

Arun George

All-Time Closing Highs Fails To Impress

The S&P 500 made a new all-time closing high following the largely as-expected U.S.-China trade cease-fire agreement, but it did so...

Vermilion Research

GrainCorp (GNC AU): Pressure Mounts, Diminishing the Prospects of a Bump to the LTAP Bid

Frustration on the slow progress of the LTAP bid came to a head at the recent AGM, where shareholders registered what appeared to be protest votes...

Arun George

Big Banks - A Crisis of Investor Confidence

We analyse the holdings of the world's largest banks by the 255 global equity funds in our analysis. For each region (America/EMEA/Asia), we have...

Steven Holden

GrainCorp (GNC AU): Hard to Say No to LTAP

Graincorp Ltd A (GNC AU) revealed that it received a non-binding indicative offer from the Long Term Asset Partners (LTAP) consortium. The all-cash...

Arun George

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