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.

Equity Bottom-Up

<ul>
<li>China announced game approval for the June batch. The number of games approved remained at a higher level than 2023.</li>
<li>The pace of China game approval appears to have accelerated to the same level as pre-tightening. Of companies that we are monitoring, none got any approval.</li>
<li>China's CADPA published a semi-annual report pointing to flattish growth of gaming revenue in the first half. </li>
</ul>


China announced game approval for the June batch. The number of games approved remained at a higher level than 2023.
The pace of China game approval appears to have accelerated to the same level as pre-tightening. Of companies that we are monitoring, none got any approval.
China's CADPA published a semi-annual report pointing to flattish growth of gaming revenue in the first half. 


Tencent/Netease: Zero for Major Names; Industry Revenue Growth Flattish in First Half

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>
<a href="https://www.smartkarma.com/entities/asm-pacific-technology-ltd" target="_blank" data-smartkarma-citation="entities:15061:1" rel="noopener">ASM Pacific Technology (522 HK)</a> is expected to replace <a href="https://www.smartkarma.com/entities/ping-an-healthcare-and-technol" target="_blank" data-smartkarma-citation="entities:27008:1" rel="noopener">Ping An Healthcare and Technol (1833 HK)</a> in the <a href="https://www.smartkarma.com/entities/hang-seng-tech-index" target="_blank" data-smartkarma-citation="entities:31367:1" rel="noopener">Hang Seng TECH Index (HSTECH INDEX)</a> at the September rebalance.</li>
<li>Constituent changes and capping changes will result in a one-way turnover of 3.7% and that will result in a round-trip trade of HK$7.8bn (US$1bn).</li>
<li>Short interest is near the lows on both stocks but there has been a recent tick higher for <a href="https://www.smartkarma.com/entities/asm-pacific-technology-ltd" target="_blank" data-smartkarma-citation="entities:15061:1" rel="noopener">ASM Pacific Technology (522 HK)</a>.</li>
</ul>



ASM Pacific Technology (522 HK) is expected to replace Ping An Healthcare and Technol (1833 HK) in the Hang Seng TECH Index (HSTECH INDEX) at the September rebalance.
Constituent changes and capping changes will result in a one-way turnover of 3.7% and that will result in a round-trip trade of HK$7.8bn (US$1bn).
Short interest is near the lows on both stocks but there has been a recent tick higher for ASM Pacific Technology (522 HK).


HSTECH Index Rebalance Preview: ASM Pacific (522) Could Replace Ping An Health (1833); US$1bn Trade

Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Thematic (Sector/Industry)

<ul>
<li>3690 HK/TCOM US: Online catering is robust in 2Q24, while online tourism diminishing quickly（+/-）</li>
<li>1024 HK: Source said Kuaishou's video generation LLM, Kling AI, has surpassed one million total application users.（+）</li>
<li>3690 HK:Meituan may launch food delivery service in Riyadh in September or October this year (+)</li>
</ul>


3690 HK/TCOM US: Online catering is robust in 2Q24, while online tourism diminishing quickly（+/-）
1024 HK: Source said Kuaishou's video generation LLM, Kling AI, has surpassed one million total application users.（+）
3690 HK:Meituan may launch food delivery service in Riyadh in September or October this year (+)


[Blue Lotus Daily-TMT Update]:3690 HK/TCOM US/1024 HK/BIDU US/PDD US/AMZN US/NTES US/700 HK/BABA US

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.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/zhihu-technology-ltd" target="_blank" data-smartkarma-citation="entities:32185:1" rel="noopener">Zhihu Technology (ZH US)</a> has launched a conditional share buyback offer to acquire a maximum of 46.9m Class A ordinary shares (15.93% of outstanding shares) at HK$9.11 (US$3.50 per ADS).</li>
<li>The offer is conditional on shareholder approval by a majority of votes cast at the EGM. There is no minimum acceptance condition. The EGM vote is done due to irrevocables. </li>
<li>Zhihu’s share buyback returns 19% of cash not subject to government controls, below <a href="https://www.smartkarma.com/entities/douyu-international-hold-adr" target="_blank" data-smartkarma-citation="entities:28045:1" rel="noopener">Douyu International Holdings (DOYU US)</a>’s comparable 34%. The minimum pro-ration is expected to be around 34%. </li>
</ul>



Zhihu Technology (ZH US) has launched a conditional share buyback offer to acquire a maximum of 46.9m Class A ordinary shares (15.93% of outstanding shares) at HK$9.11 (US$3.50 per ADS).
The offer is conditional on shareholder approval by a majority of votes cast at the EGM. There is no minimum acceptance condition. The EGM vote is done due to irrevocables. 
Zhihu’s share buyback returns 19% of cash not subject to government controls, below Douyu International Holdings (DOYU US)’s comparable 34%. The minimum pro-ration is expected to be around 34%. 


Zhihu (ZH US/2390 HK): Negative EV Play Launches a Share Buyback at HK$9.11/US$3.50

Analyst - Media&Entertainment Sector, Blue Lotus Research Institute

Stan Zhao

Analyst - Media&Entertainment Sector

<ul>
<li>The popularity of &lt;DnF Mobile&gt; and &lt;Arena Breakout&gt; continues to rise. As a result, we are increasing the gross billings estimation for these games by 10% and 15% respectively.</li>
<li>
&lt;Need For Speed Mobile&gt; had an impressive first day, topping the iOS download charts and ranking  15th on the grossing chart. We are raising the expected gross billings by 25%.</li>
<li>Due to the game's lifecycle, &lt;Eggy Party&gt; has experienced a slight decline in revenue. Therefore, we are adjusting the forecast down by 10%. Conversely, &lt;Identity V&gt; continues to perform strongly.</li>
</ul>


The popularity of &lt;DnF Mobile&gt; and &lt;Arena Breakout&gt; continues to rise. As a result, we are increasing the gross billings estimation for these games by 10% and 15% respectively.

&lt;Need For Speed Mobile&gt; had an impressive first day, topping the iOS download charts and ranking  15th on the grossing chart. We are raising the expected gross billings by 25%.
Due to the game's lifecycle, &lt;Eggy Party&gt; has experienced a slight decline in revenue. Therefore, we are adjusting the forecast down by 10%. Conversely, &lt;Identity V&gt; continues to perform strongly.


China

Kuaishou Technology operates as a content community and social platform. The Company helps users create, upload and watch short videos on mobile devices. Kuaishou Technology offers services worldwide.

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Kuaishou Technology (1024 HK)

Tencent/Netease: Zero for Major Names; Industry Revenue Growth Flattish in First Half

We analyzed the July China game approval data. Though China is approving games at an speed that is upbeat for investors, concerns remains as to...

Ke Yan, CFA, FRM

HSTECH Index Rebalance Preview: ASM Pacific (522) Could Replace Ping An Health (1833); US$1bn Trade

ASMPT is down a LOT today following results that were weaker than expected and guidance that was lower than projected earlier. With potential...

Brian Freitas

[Blue Lotus Daily-TMT Update]:3690 HK/TCOM US/1024 HK/BIDU US/PDD US/AMZN US/NTES US/700 HK/BABA US

Online catering is thriving, while online tourism is declining. Kuaishou's video generation AI has over one million users. Meituan may expand food...

Blue Lotus Research Institute

Online Game Monitor: July 2-15, 2024

Gross billing estimates for popular mobile games like Tencent's <dnf mobile>, and Bilibili's <three kingdom> are being adjusted due to rising...

Blue Lotus Research Institute

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Tencent/Netease: Zero for Major Names; Industry Revenue Growth Flattish in First Half

We analyzed the July China game approval data. Though China is approving games at an speed that is upbeat for investors, concerns remains as to...

Ke Yan, CFA, FRM

HSTECH Index Rebalance Preview: ASM Pacific (522) Could Replace Ping An Health (1833); US$1bn Trade

ASMPT is down a LOT today following results that were weaker than expected and guidance that was lower than projected earlier. With potential...

Brian Freitas

[Blue Lotus Daily-TMT Update]:3690 HK/TCOM US/1024 HK/BIDU US/PDD US/AMZN US/NTES US/700 HK/BABA US

​Online catering is thriving, while online tourism is declining. Kuaishou's video generation AI has over one million users. Meituan may expand food...

Blue Lotus Research Institute

Zhihu (ZH US/2390 HK): Negative EV Play Launches a Share Buyback at HK$9.11/US$3.50

Zhihu aims to return 19% of cash not subject to PRC government control, below Douyu’s comparable return of 34%. Expect more cash-rich US-China...

Arun George

Online Game Monitor: July 2-15, 2024

​Gross billing estimates for popular mobile games like Tencent's <dnf mobile>, and Bilibili's <three kingdom> are being adjusted due to rising...

Blue Lotus Research Institute

Online catering is thriving, while online tourism is declining. Kuaishou's video generation AI has over one million users. Meituan may expand food...

Gross billing estimates for popular mobile games like Tencent's <dnf mobile>, and Bilibili's <three kingdom> are being adjusted due to rising...