APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC IPOs & Placements

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.

Equity Capital Markets

Dekon Food and Agriculture Group / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/dekon-food-and-agriculture-group" target="_blank" data-smartkarma-citation="entities:36756:1" rel="noopener">Dekon Food and Agriculture Group (DFAG CH)</a> is looking to raise up to US$128m in its Hong Kong IPO.</li>
<li>Dekon Food and Agriculture Group (DFAG) is a vertically integrated livestock farming enterprise in China.</li>
<li>In this note, we will look at past performance, and share our thoughts on valuation.</li>
</ul>



Dekon Food and Agriculture Group (DFAG CH) is looking to raise up to US$128m in its Hong Kong IPO.
Dekon Food and Agriculture Group (DFAG) is a vertically integrated livestock farming enterprise in China.
In this note, we will look at past performance, and share our thoughts on valuation.


Dekon Food and Agriculture Group IPO - Ebbs and Flows of Cycle Have Hurt Profitability

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>With 1 trading day left in the review period, we forecast 10 changes for the <a href="https://www.smartkarma.com/entities/chinext-price-index" target="_blank" data-smartkarma-citation="entities:25483:1" rel="noopener">Chinext Price Index (SZ399006 INDEX)</a> and 5 changes for the ChiNext 50 Index in June.</li>
<li>Passive trackers are estimated to trade around +/-0.5 days ADV on most of the potential adds/deletes, though there are some deletes that will have over 1 day ADV to sell.</li>
<li>The potential inclusion to one or both indices have outperformed the potential deletes by a huge margin in the last month. We'd be inclined to trim positions.</li>
</ul>


With 1 trading day left in the review period, we forecast 10 changes for the Chinext Price Index (SZ399006 INDEX) and 5 changes for the ChiNext 50 Index in June.
Passive trackers are estimated to trade around +/-0.5 days ADV on most of the potential adds/deletes, though there are some deletes that will have over 1 day ADV to sell.
The potential inclusion to one or both indices have outperformed the potential deletes by a huge margin in the last month. We'd be inclined to trim positions.


ChiNext/​​ChiNext50 Index Rebalance Preview: Outperformance Maintained

<ul>
<li>Three quarters of the way through the review period, we forecast 10 changes for the <a href="https://www.smartkarma.com/entities/chinext-price-index" target="_blank" data-smartkarma-citation="entities:25483:1" rel="noopener">Chinext Price Index (SZ399006 INDEX)</a> and 5 changes for the ChiNext 50 Index in June.</li>
<li>Passive trackers will need to buy +/-0.5 days of ADV for most inclusions and exclusions from the indices. On average, the impact on the potential deletions is higher.</li>
<li>The potential adds have outperformed the potential deletes over the last six months, and there has been a sharp widening of the gap over the last few weeks.</li>
</ul>


Three quarters of the way through the review period, we forecast 10 changes for the Chinext Price Index (SZ399006 INDEX) and 5 changes for the ChiNext 50 Index in June.
Passive trackers will need to buy +/-0.5 days of ADV for most inclusions and exclusions from the indices. On average, the impact on the potential deletions is higher.
The potential adds have outperformed the potential deletes over the last six months, and there has been a sharp widening of the gap over the last few weeks.


ChiNext/​ChiNext50 Index Rebalance Preview: Overlapping Stocks & Recent Outperformance

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

Quantitative Analysis

<ul>
<li>We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of December 23rd. </li>
<li>We estimate the weekly inflows to be US$680.7 million, led by consumer staples, health care, financials sectors, and offset by information technology, materials.</li>
<li>We highlight flows for Wulianye, Moutai, Sichuan Swell, Ping An, Yiling, China Tourism, CATL, Goertek, BYD.</li>
</ul>


We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of December 23rd. 
We estimate the weekly inflows to be US$680.7 million, led by consumer staples, health care, financials sectors, and offset by information technology, materials.
We highlight flows for Wulianye, Moutai, Sichuan Swell, Ping An, Yiling, China Tourism, CATL, Goertek, BYD.


Northbound Flows (Dec 23rd): Inflows into Liquor Names

Hubei Feilihua Quartz Glass  / Event-Driven

<ul>
<li>At the end of the review period, we forecast 10 changes for the <a href="https://www.smartkarma.com/entities/chinext-price-index" target="_blank" data-smartkarma-citation="entities:25483:1" rel="noopener">Chinext Price Index (SZ399006 INDEX)</a> and 5 changes for the ChiNext 50 Index in December.</li>
<li>Passive trackers will need to buy +/-0.5 days of ADV for most inclusions and exclusions from the indices. The impact on the potential deletions is higher on average.</li>
<li>The potential adds have outperformed the potential deletes over the last six months, though there has been a sharp narrowing of the gap over the last few weeks.</li>
</ul>


At the end of the review period, we forecast 10 changes for the Chinext Price Index (SZ399006 INDEX) and 5 changes for the ChiNext 50 Index in December.
Passive trackers will need to buy +/-0.5 days of ADV for most inclusions and exclusions from the indices. The impact on the potential deletions is higher on average.
The potential adds have outperformed the potential deletes over the last six months, though there has been a sharp narrowing of the gap over the last few weeks.


ChiNext/ChiNext50 Index Rebalance Preview: Overlapping Stocks & Mean Reversion

China

Wens Foodstuff Group Co., Ltd. produces meat products. The Company produces, processes, and sells chicken, duck, pork, and other related products. Guangdong Wens Foodstuffs Group also manufactures and markets cooked meat and frozen meat.

Wens Foodstuff Group Co., Ltd. (300498 CH)

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Wens Foodstuff Group Co., Ltd. (300498 CH)

Dekon Food and Agriculture Group IPO - Ebbs and Flows of Cycle Have Hurt Profitability

Dekon Food and Agriculture Group (DFAG CH) is looking to raise up to US$128m in its Hong Kong IPO. In this note, we will look at past performance,...

Clarence Chu

ChiNext/ChiNext50 Index Rebalance Preview: Outperformance Maintained

We forecast 10 changes for the Chinext and 5 for the Chinext50. Impact is not large but these are liquid stocks that are moving. The potential adds...

Brian Freitas

ChiNext/ChiNext50 Index Rebalance Preview: Overlapping Stocks & Recent Outperformance

We forecast 10 changes to the ChiNext & 5 changes to the ChiNext50 in June. There are a few overlapping stocks & the potential adds have...

Brian Freitas

Northbound Flows (Dec 23rd): Inflows into Liquor Names

We analyzed northbound Shanghai/Shenzhen connect flows in the past week and highlight flows for Wulianye, Moutai, Sichuan Swell, Ping An, Yiling,...

Ke Yan, CFA, FRM

ChiNext/ChiNext50 Index Rebalance Preview: Overlapping Stocks & Mean Reversion

We forecast 10 changes to the ChiNext & 5 changes to the ChiNext50 in Dec. There are a few overlapping stocks and the potential adds have...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Dekon Food and Agriculture Group IPO - Ebbs and Flows of Cycle Have Hurt Profitability

Dekon Food and Agriculture Group (DFAG CH) is looking to raise up to US$128m in its Hong Kong IPO. In this note, we will look at past performance,...

Clarence Chu

ChiNext/​​ChiNext50 Index Rebalance Preview: Outperformance Maintained

We forecast 10 changes for the Chinext and 5 for the Chinext50. Impact is not large but these are liquid stocks that are moving. The potential adds...

Brian Freitas

ChiNext/​ChiNext50 Index Rebalance Preview: Overlapping Stocks & Recent Outperformance

We forecast 10 changes to the ChiNext & 5 changes to the ChiNext50 in June. There are a few overlapping stocks & the potential adds have...

Brian Freitas

Northbound Flows (Dec 23rd): Inflows into Liquor Names

We analyzed northbound Shanghai/Shenzhen connect flows in the past week and highlight flows for Wulianye, Moutai, Sichuan Swell, Ping An, Yiling,...

Ke Yan, CFA, FRM

ChiNext/ChiNext50 Index Rebalance Preview: Overlapping Stocks & Mean Reversion

We forecast 10 changes to the ChiNext & 5 changes to the ChiNext50 in Dec. There are a few overlapping stocks and the potential adds have...

Brian Freitas

ChiNext/ChiNext50 Index Rebalance Preview: Outperformance Maintained

ChiNext/ChiNext50 Index Rebalance Preview: Overlapping Stocks & Recent Outperformance