Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, 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

<div>
<p><a href="https://www.smartkarma.com/entities/zai-lab-ltd" target="_blank" data-smartkarma-citation="entities:25877:1" rel="noopener">Zai Lab Ltd (ZLAB US)</a> raised around US$850m in its secondary listing in Hong Kong. I have covered the background of the deal in <a href="https://www.smartkarma.com/insights/zai-lab-hk-secondary-listing-large-deal-to-digest-but-past-deals-have-done-well" target="_blank" rel="noopener">Zai Lab HK Secondary Listing - Large Deal to Digest but past Deals Have Done Well.</a></p>
<p>In this note, I'll talk about the deal dynamics and updates over the past week.</p>
<p></p>
</div><div><p>We have also covered the company's listing and some of its prior deals in:</p></div><div><ul style="list-style-type: disc;">
<li><a href="https://www.smartkarma.com/insights/zai-lab-ipo-experienced-team-promising-in-licensing-drug-pipeline-part-1" target="_blank" rel="noopener">Zai Lab IPO: Experienced Team, Promising In-Licensing Drug Pipeline (Part 1)</a></li>
<li><a href="https://www.smartkarma.com/insights/zai-lab-ipo-thoughts-on-valuation-risks-and-upsides-part-2" target="_blank" rel="noopener">Zai Lab IPO: Thoughts on Valuation, Risks and Upsides (Part 2)</a></li>
<li><a href="https://www.smartkarma.com/insights/zai-lab-placement-beware-of-performance-of-last-deal-despite-decent-fundamentals" target="_blank" rel="noopener">Zai Lab Placement: Beware of Performance of Last Deal Despite Decent Fundamentals</a></li>
<li><a href="https://www.smartkarma.com/insights/zai-lab-placement-positive-development-bodes-well-for-the-deal" target="_blank" rel="noopener">Zai Lab Placement: Positive Development Bodes Well for the Deal</a></li>
</ul></div>


Zai Lab Ltd (ZLAB US) raised around US$850m in its secondary listing in Hong Kong. I have covered the background of the deal in Zai Lab HK Secondary Listing - Large Deal to Digest but past Deals Have Done Well.
In this note, I'll talk about the deal dynamics and updates over the past week.

We have also covered the company's listing and some of its prior deals in:
Zai Lab IPO: Experienced Team, Promising In-Licensing Drug Pipeline (Part 1)
Zai Lab IPO: Thoughts on Valuation, Risks and Upsides (Part 2)
Zai Lab Placement: Beware of Performance of Last Deal Despite Decent Fundamentals
Zai Lab Placement: Positive Development Bodes Well for the Deal


Zai Lab HK Trading - Interest and Behaviour in Line with Huazhu, Highest Concentration so Far

Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Tracking Traffic

Focusing on Asian logistics, transportation, and travel companies

Equity Bottom-Up

<p>Leading Chinese online travel agency <a href="https://www.smartkarma.com/entities/trip-com-group-ltd" target="_blank" data-smartkarma-citation="entities:180:1" rel="noopener">Trip.com (TCOM US)</a> will report Q220 (June) results after the US markets close this Thursday, September 24th (Friday morning Hong Kong time).</p>
<p>In this note we talk about what to expect in the Q2 numbers and ask whether Trip.com can match or beat its own downbeat guidance, which the company issued in late May. </p>
<p>To answer that question, we look at what other companies and organizations in the Chinese travel sector have already reported about Q2 demand. For now we retain our Hold rating on Trip.com.</p>

Leading Chinese online travel agency Trip.com (TCOM US) will report Q220 (June) results after the US markets close this Thursday, September 24th (Friday morning Hong Kong time).
In this note we talk about what to expect in the Q2 numbers and ask whether Trip.com can match or beat its own downbeat guidance, which the company issued in late May. 
To answer that question, we look at what other companies and organizations in the Chinese travel sector have already reported about Q2 demand. For now we retain our Hold rating on Trip.com.

Can Trip.com Meet (Or Beat) Its Own Downbeat Revenue Guidance? Q220 Earnings Preview

Equity Analyst, LightStream Research

Oshadhi Kumarasiri

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<p>Texas-based short seller <a target="_blank">Bonitas </a>Research accused <a href="https://www.smartkarma.com/entities/huazhu-group-ltd" target="_blank" data-smartkarma-citation="entities:17527:1" rel="noopener">Huazhu Group (HTHT US)</a>, the second-largest hotel chain in China and the ninth largest in the world, of lying about the ownership of its hotel portfolio to produce fake financials.</p><p>Bonitas made the accusation yesterday, (21<sup>st</sup> Sept 2020) a day prior to the commencement of trading of the secondary shares on the Hong Kong stock exchange.</p><p>The accusation came in the form of a 32 page <a href="https://www.bonitasresearch.com/wp-content/uploads/dlm_uploads/2020/09/BonitasResearch-Short-Huazhu-Nasdaq_HTHT-HKEX_1179-September_21_2020.pdf" target="_blank" rel="noopener">report</a> published on the Bonitas website, which highlighted the following concerns;</p><ul>
<li>The company secretly provided for the operating costs of franchisee hotels owned by undisclosed current Huazhu employees &amp; other undisclosed related parties.</li>
<li>Understated the number of <a target="_blank">leased and owned hotels and overstated manachised &amp; franchised hotels</a>
</li>
<li>Understated the employee count by a minimum of 16%.</li>
<li>Inflated profits by RMB 2.0 billion ($300m) through classifying operating expenses as Capex.</li>
</ul>

Texas-based short seller Bonitas Research accused Huazhu Group (HTHT US), the second-largest hotel chain in China and the ninth largest in the world, of lying about the ownership of its hotel portfolio to produce fake financials.Bonitas made the accusation yesterday, (21st Sept 2020) a day prior to the commencement of trading of the secondary shares on the Hong Kong stock exchange.The accusation came in the form of a 32 page report published on the Bonitas website, which highlighted the following concerns;
The company secretly provided for the operating costs of franchisee hotels owned by undisclosed current Huazhu employees &amp; other undisclosed related parties.
Understated the number of leased and owned hotels and overstated manachised &amp; franchised hotels

Understated the employee count by a minimum of 16%.
Inflated profits by RMB 2.0 billion ($300m) through classifying operating expenses as Capex.


Huazhu Group: Damning Allegations by Short Seller Bonitas

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.

<div><p><a href="https://www.smartkarma.com/entities/huazhu-group-ltd" target="_blank" data-smartkarma-citation="entities:17527:1" rel="noopener">Huazhu Group (HTHT US)</a> will commence trading in Hong Kong on Tuesday, 22 September. Huazhu priced its Hong Kong secondary listing at HK$297 per share. Huazhu raised net proceeds of HK$5,924.8 million ($0.8 billion).</p></div><div><div class="content-highlight"><p><a href="https://www.smartkarma.com/profiles/rickin-thakrar" target="_blank" data-smartkarma-citation="accounts:1486" rel="noopener">Rickin Thakrar</a> outlined his views on the fundamentals and valuation in <a href="https://www.smartkarma.com/insights/huazhu-secondary-listing-hotel-motel-hanting-hotel" target="_blank" data-smartkarma-citation="insights:43241" rel="noopener">Huazhu Secondary Listing: Hotel, Motel, Hanting Hotel</a>. At the 18 September close price of $42.02 per ADS, the H-share offer price of HK$297 implies a 8.8% discount. We believe that the H-share will likely trade to a slight premium to the ADS on average, broadly similar to the overall median of previous secondary listings.</p></div></div>

Huazhu Group (HTHT US) will commence trading in Hong Kong on Tuesday, 22 September. Huazhu priced its Hong Kong secondary listing at HK$297 per share. Huazhu raised net proceeds of HK$5,924.8 million ($0.8 billion).Rickin Thakrar outlined his views on the fundamentals and valuation in Huazhu Secondary Listing: Hotel, Motel, Hanting Hotel. At the 18 September close price of $42.02 per ADS, the H-share offer price of HK$297 implies a 8.8% discount. We believe that the H-share will likely trade to a slight premium to the ADS on average, broadly similar to the overall median of previous secondary listings.

Huazhu Group Secondary Listing: Trading Debut

<div><p><a href="https://www.smartkarma.com/entities/huazhu-group-ltd" target="_blank" data-smartkarma-citation="entities:17527:1" rel="noopener">Huazhu Group (HTHT US)</a> raised around US$900m in its secondary listing in Hong Kong.</p></div><div><p>I have covered the background of the deal in my earlier notes, <a href="https://www.smartkarma.com/insights/huazhu-hk-secondary-listing-early-look-needs-the-cash-more-than-most-secondary-candidates" target="_blank" rel="noopener">Huazhu HK Secondary Listing - Early Look - Needs the Cash More than Most Secondary Candidates</a> and <a href="https://www.smartkarma.com/insights/huazhu-hk-secondary-listing-needs-the-money-but-looks-toppish" target="_blank" rel="noopener">Huazhu HK Secondary Listing - Needs the Money but Looks Toppish.</a></p></div><div><p>In this insight, I'll talk about the deal dynamics and updates over the past week.</p></div>

Huazhu Group (HTHT US) raised around US$900m in its secondary listing in Hong Kong.I have covered the background of the deal in my earlier notes, Huazhu HK Secondary Listing - Early Look - Needs the Cash More than Most Secondary Candidates and Huazhu HK Secondary Listing - Needs the Money but Looks Toppish.In this insight, I'll talk about the deal dynamics and updates over the past week.

Huazhu HK Secondary Listing Trading - Lowest Coverage, Biggest Correction, Highest Concentration

China

Huazhu Group Limited operates a hotel operator and franchisor. The Company provides hotel leasing, directly hotel operation, and co-development services. Huazhu Group mainly conducts businesses in China.

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Huazhu Group (HTHT US)

Zai Lab HK Trading - Interest and Behaviour in Line with Huazhu, Highest Concentration so Far

Zai Lab Ltd (ZLAB US) plans to raise around US$1bn in its secondary listing in Hong Kong. We have covered the company's listing and some of its...

Sumeet Singh

Can Trip.com Meet (Or Beat) Its Own Downbeat Revenue Guidance? Q220 Earnings Preview

Leading Chinese online travel agency Trip.com (TCOM US) will report Q2

Tracking Traffic

Huazhu Group: Damning Allegations by Short Seller Bonitas

Texas-based short seller Bonitas Research accused $huazhu, the second-largest hotel chain in China and the ninth largest in the world, of lying...

Oshadhi Kumarasiri

Huazhu Group Secondary Listing: Trading Debut

Yum China Holdings Inc (9987 HK) will commence trading in Hong Kong on Thursday, 10 September. Yum China Holdings, Inc (YUMC US) priced its Hong...

Arun George

Huazhu HK Secondary Listing Trading - Lowest Coverage, Biggest Correction, Highest Concentration

Huazhu Group (HTHT US) raised around US$900m in its secondary listing in Hong Kong. I have covered the background of the deal in my earlier...

Sumeet Singh

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