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

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Bilibili plans to raise around US$3bn in its secondary listing in Hong Kong, as per media reports. The company is said to have filed confidentially in Jan 2021 and is aiming for a listing in March 2021.
We have covered the background of the deal in our earlier note, <a href="https://www.smartkarma.com/insights/bilibili-secondary-listing-early-look-will-probably-be-more-like-jd-and-netease" target="_blank" rel="noopener">Bilibili Secondary Listing Early Look - Will Probably Be More like JD and NetEase</a>.
Bilibili reported its 4Q20 results today morning. As these are likely to be the last set of results before the company goes in for its secondary listing, in this note we take a quick look at the results. 
</div>


Bilibili plans to raise around US$3bn in its secondary listing in Hong Kong, as per media reports. The company is said to have filed confidentially in Jan 2021 and is aiming for a listing in March 2021.
We have covered the background of the deal in our earlier note, Bilibili Secondary Listing Early Look - Will Probably Be More like JD and NetEase.
Bilibili reported its 4Q20 results today morning. As these are likely to be the last set of results before the company goes in for its secondary listing, in this note we take a quick look at the results. 


Bilibili Secondary Listing Early Look - 4Q20 Results Quick Note

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

China Resources Beer Holdings / Event-Driven

Last evening, Hang Seng Indexes announced that the conclusions of the <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">Hong Kong Hang Seng Index (HSI INDEX)</a> market consultation will be released on 1 March. This means that the implementation of the changes using the new methodology will begin at the June 2021 review and conclude at the March 2022 review.With the results of the March 2021 review scheduled to be announced post market close tomorrow (26 February), the review will follow the current methodology. But with the leeway afforded to the index committee to decide on the stocks to be included/ excluded, stocks could be selected based on whether they will make the cut for inclusion based on the future methodology. This will also reduce the turnover at future reviews.The <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">Hong Kong Hang Seng Index (HSI INDEX)</a> already has 52 constituents and we expect this to increase further at the March review. We expect only inclusions and the number of stocks in the index could increase to 55-56. This too will reduce the turnover at future reviews. The stocks included at the March review will see a big impact since they will be included in one shot, as opposed to stocks included at the June review where the implementation will most likely occur in 4 tranches.Potential inclusions are <a href="https://www.smartkarma.com/entities/enn-energy-holdings-ltd" target="_blank" data-smartkarma-citation="entities:316:1" rel="noopener">ENN Energy (2688 HK)</a>, <a href="https://www.smartkarma.com/entities/china-resources-beer-holdings" target="_blank" data-smartkarma-citation="entities:399:1" rel="noopener">China Resources Beer Holdings (291 HK)</a>, <a href="https://www.smartkarma.com/entities/country-garden-services-holdings-company-limited" target="_blank" data-smartkarma-citation="entities:27343:1" rel="noopener">Country Garden Services Holdings (6098 HK)</a>. Outside possibilities are <a href="https://www.smartkarma.com/entities/haidilao-international-holding-ltd" target="_blank" data-smartkarma-citation="entities:27044:1" rel="noopener">Haidilao (6862 HK)</a>, <a href="https://www.smartkarma.com/entities/china-gas-holdings-ltd" target="_blank" data-smartkarma-citation="entities:14315:1" rel="noopener">China Gas Holdings (384 HK)</a> and <a href="https://www.smartkarma.com/entities/longfor-properties" target="_blank" data-smartkarma-citation="entities:8149:1" rel="noopener">Longfor Properties (960 HK)</a>.

Last evening, Hang Seng Indexes announced that the conclusions of the Hong Kong Hang Seng Index (HSI INDEX) market consultation will be released on 1 March. This means that the implementation of the changes using the new methodology will begin at the June 2021 review and conclude at the March 2022 review.With the results of the March 2021 review scheduled to be announced post market close tomorrow (26 February), the review will follow the current methodology. But with the leeway afforded to the index committee to decide on the stocks to be included/ excluded, stocks could be selected based on whether they will make the cut for inclusion based on the future methodology. This will also reduce the turnover at future reviews.The Hong Kong Hang Seng Index (HSI INDEX) already has 52 constituents and we expect this to increase further at the March review. We expect only inclusions and the number of stocks in the index could increase to 55-56. This too will reduce the turnover at future reviews. The stocks included at the March review will see a big impact since they will be included in one shot, as opposed to stocks included at the June review where the implementation will most likely occur in 4 tranches.Potential inclusions are ENN Energy (2688 HK), China Resources Beer Holdings (291 HK), Country Garden Services Holdings (6098 HK). Outside possibilities are Haidilao (6862 HK), China Gas Holdings (384 HK) and Longfor Properties (960 HK).

HSI March Index Rebalance Preview - Last One Before New Methodology Kicks In

Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

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.

Kuaishou Technology / Equity Capital Markets

The Chinese short-video and livestreaming platform <a href="https://www.smartkarma.com/entities/beijing-kuaishou-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:29725:1" rel="noopener">Kuaishou Technology (1024 HK)</a>  started trading on the Hong Kong Stock Exchange on the 05th February 2021. The company set its final IPO pricing at HK$115 per share, the upper end of the IPO price range of HK$105-115 per share and raised net proceeds of HK$41.28bn (approx. 5.32bn).Kuaishou’s shares opened strong at its debut at HK$338 per share, about 194% higher than the final IPO pricing of HK$115 per share. The company’s shares closed at HK$300 per share at the end of its first day of trading, still at a whopping premium of 161% to the final IPO price. The company’s shares closed at HK$415 per share (at the end of Wednesday’s trading), almost HK$300 more than the IPO price of HK$115 per share.Following the company’s successful listing on 5th of February, FTSE Russell announced that Kuaishou will be added to FTSE China 50 Index effective 17th February 2021 (start of trading).At the end of trading on 8th February, it was announced that the company will be included in the Hang Seng China Enterprise Index (HSCEI), Hang Seng Tech Index (HSTECH Index) and Hang Seng Composite Index (HSCI) after market close on February 22nd.

The Chinese short-video and livestreaming platform Kuaishou Technology (1024 HK)  started trading on the Hong Kong Stock Exchange on the 05th February 2021. The company set its final IPO pricing at HK$115 per share, the upper end of the IPO price range of HK$105-115 per share and raised net proceeds of HK$41.28bn (approx. 5.32bn).Kuaishou’s shares opened strong at its debut at HK$338 per share, about 194% higher than the final IPO pricing of HK$115 per share. The company’s shares closed at HK$300 per share at the end of its first day of trading, still at a whopping premium of 161% to the final IPO price. The company’s shares closed at HK$415 per share (at the end of Wednesday’s trading), almost HK$300 more than the IPO price of HK$115 per share.Following the company’s successful listing on 5th of February, FTSE Russell announced that Kuaishou will be added to FTSE China 50 Index effective 17th February 2021 (start of trading).At the end of trading on 8th February, it was announced that the company will be included in the Hang Seng China Enterprise Index (HSCEI), Hang Seng Tech Index (HSTECH Index) and Hang Seng Composite Index (HSCI) after market close on February 22nd.

Kuaishou IPO Trading Update: Further Upside Seems Limited; We Are Looking for Exit Points

<a href="https://www.smartkarma.com/entities/coupang" target="_blank" data-smartkarma-citation="entities:28425:1" rel="noopener">Coupang (CPNG US)</a> , the largest product e-commerce player in Korea, aims to raise around US$3bn in its US listing via a mix of selling primary and secondary shares. As per media reports, the company has earlier obtained investments from Sequoia, Softbank, Blackrock and Fidelity.Coupang offers its 14.8m customers a wide range of owned-inventory selection. In addition, on its marketplace it also offers millions of SKUs sourced from over 200,000 merchants. Apart from normal e-commerce operation, it also provides its customers with: grocery offering, Rocket Fresh; logistics food delivery offering, Coupang Eats; and digital financial services, Coupang Pay.In this insight, we'll talk about the positive aspects of the deal.

Coupang (CPNG US) , the largest product e-commerce player in Korea, aims to raise around US$3bn in its US listing via a mix of selling primary and secondary shares. As per media reports, the company has earlier obtained investments from Sequoia, Softbank, Blackrock and Fidelity.Coupang offers its 14.8m customers a wide range of owned-inventory selection. In addition, on its marketplace it also offers millions of SKUs sourced from over 200,000 merchants. Apart from normal e-commerce operation, it also provides its customers with: grocery offering, Rocket Fresh; logistics food delivery offering, Coupang Eats; and digital financial services, Coupang Pay.In this insight, we'll talk about the positive aspects of the deal.

Coupang Pre-IPO - The Positives - Fast Growth, Sticky Customers

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

Equity Bottom-Up

<ul>
<li>The growth rate of short video time on site accelerated in China in 2020.</li>
<li>In 4Q20, short video has the longest time on site among all online entertainments.</li>
<li>In 2020, short video shares more online advertising budgets.</li>
<li>However, we believe it is not a good idea to pay users for introducing new users.</li>
</ul>


The growth rate of short video time on site accelerated in China in 2020.
In 4Q20, short video has the longest time on site among all online entertainments.
In 2020, short video shares more online advertising budgets.
However, we believe it is not a good idea to pay users for introducing new users.


Kuaishou (1024 HK): Short Video Market Expanding, But Express Version Not Profitable

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)

Bilibili Secondary Listing Early Look - 4Q20 Results Quick Note

Bilibili plans to raise around US$3bn in its secondary listing in HK, as per media reports. The company is said to have filed confidentially in Jan...

Sumeet Singh

HSI March Index Rebalance Preview - Last One Before New Methodology Kicks In

HSIL will announce the changes to the HSI post market close tomorrow. With the conclusions of the market consultation being announced on 1 March,...

Brian Freitas

Kuaishou IPO Trading Update: Further Upside Seems Limited; We Are Looking for Exit Points

Kuaishou’s shares opened strong at its debut at HK$338 per share, about 194% higher than the final IPO pricing of HK$115 per share. The company’s...

Shifara Samsudeen, ACMA, CGMA

Coupang Pre-IPO - The Positives - Fast Growth, Sticky Customers

Coupang (CPNG US) , the largest product e-commerce player in Korea, aims to raise around US$3bn in its US listing via a mix of selling primary and...

Sumeet Singh

Kuaishou (1024 HK): Short Video Market Expanding, But Express Version Not Profitable

The growth rate of short video time on site accelerated in China in 2020. In 4Q20, short video has the longest time on site among all online...

Ming Lu

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