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

Zhejiang Leapmotor Technologie / Equity Capital Markets

<ul>
<li>Leapmotor (LM) aims to raise around US$1bn in its Hong Kong IPO. LM is a smart EV company based in China, founded in 2015.</li>
<li>It focuses on the mid- to high-end segment in China’s NEV market with a price range of RMB150,000-300,000. As of end FY21, it had delivered a total of 52,832 cars.</li>
<li>In this note, we talk about the not so positive aspects of the deal.</li>
</ul>


Leapmotor (LM) aims to raise around US$1bn in its Hong Kong IPO. LM is a smart EV company based in China, founded in 2015.
It focuses on the mid- to high-end segment in China’s NEV market with a price range of RMB150,000-300,000. As of end FY21, it had delivered a total of 52,832 cars.
In this note, we talk about the not so positive aspects of the deal.


Leapmotor Pre-IPO - The Negatives - Related Party Sanctions, Lags Peers

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<ul>
<li>We believe there is an attractive pair trade of going long on LG Chem and going short on LG Energy Solution at current levels. </li>
<li>Main reasons why we like this pair trade include large shares that could be sold after 6 months lockup for LGES, LG Chem's attractive valuation, and shift to value stocks.</li>
<li>In the past one month, LG Energy Solution is down 5.3% whereas LG Chem is up 2.4%. We believe this gap could widen in the next several months. </li>
</ul>


We believe there is an attractive pair trade of going long on LG Chem and going short on LG Energy Solution at current levels. 
Main reasons why we like this pair trade include large shares that could be sold after 6 months lockup for LGES, LG Chem's attractive valuation, and shift to value stocks.
In the past one month, LG Energy Solution is down 5.3% whereas LG Chem is up 2.4%. We believe this gap could widen in the next several months. 


A Pair Trade Between LG Chem & LG Energy Solution

<ul>
<li>The US President Joe Biden is planning to visit South Korea on 20 to 22 May to meet the new South Korean President Yoon Suk-Yeol.</li>
<li>Hyundai Motor is likely to announce investments of nearly $7 billion for building a mega EV facility in Georgia which was leaked in the media in the last few days.</li>
<li>Hyundai Motor is aggressively penetrating the global EV markets and it is becoming an increasing threat against Tesla. Hyundai Motor has outperformed Tesla in the past 6 months.</li>
</ul>


The US President Joe Biden is planning to visit South Korea on 20 to 22 May to meet the new South Korean President Yoon Suk-Yeol.
Hyundai Motor is likely to announce investments of nearly $7 billion for building a mega EV facility in Georgia which was leaked in the media in the last few days.
Hyundai Motor is aggressively penetrating the global EV markets and it is becoming an increasing threat against Tesla. Hyundai Motor has outperformed Tesla in the past 6 months.


Joe Biden's Visit to South Korea: Hyundai Motor Ready to Announce $7 Billion Investment in EVs in US

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

<ul>
<li>FY 22 Q1 result was good although not unexpected thanks to mgt guidance. </li>
<li>Cash on hand may be reduced but it counts a very big Korean EV battery makers as the top customers thus some safety is in place. </li>
<li>
<a href="https://www.smartkarma.com/entities/w-scope-corp" target="_blank" data-smartkarma-citation="entities:8597:1" rel="noopener">W Scope Corp (6619 JP)</a> should be able to expand its customer base beyond the big Korean battery maker. </li>
</ul>


FY 22 Q1 result was good although not unexpected thanks to mgt guidance. 
Cash on hand may be reduced but it counts a very big Korean EV battery makers as the top customers thus some safety is in place. 

W Scope Corp (6619 JP) should be able to expand its customer base beyond the big Korean battery maker. 


Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

<ul>
<li>We cannot completely rule out the possibility that Solactive will announce a correction disclosure for the LG Energy Inclusion/LG Chem Exclusion 2 to 3 trading days before May 11th.</li>
<li>LG Energy can expect an inflow of 0.85x ADTV (0.16% of SO). On the other hand, LG Chem will face an outflow of -1.76x ADTV (0.52% of SO).</li>
<li>Considering the correction disclosure uncertainty and the passive flow size, we should approach this as a day trading event after watching the results by this Friday (or the following Monday).</li>
</ul>


We cannot completely rule out the possibility that Solactive will announce a correction disclosure for the LG Energy Inclusion/LG Chem Exclusion 2 to 3 trading days before May 11th.
LG Energy can expect an inflow of 0.85x ADTV (0.16% of SO). On the other hand, LG Chem will face an outflow of -1.76x ADTV (0.52% of SO).
Considering the correction disclosure uncertainty and the passive flow size, we should approach this as a day trading event after watching the results by this Friday (or the following Monday).


LG Energy/LG Chem Flow Trading on Solactive Lithium Index Rebalancing

South Korea

LG Energy Solution produces and sells batteries. The Company manufactures and sells automobile batteries, small batteries, energy storage system batteries, and other products. LG Energy Solution markets its products worldwide.

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LG Energy Solution (373220 KS)

A Pair Trade Between LG Chem & LG Energy Solution

Main reasons why we like this pair trade (long LG Chem & short LGES) include large shares that could be sold after 6 months lockup for LGES, LG...

Douglas Kim

Joe Biden's Visit to South Korea: Hyundai Motor Ready to Announce $7 Billion Investment in EVs in US

Hyundai Motor is likely to announce investments of nearly $7 billion for building a mega EV facility in Georgia which was leaked in the media in...

Douglas Kim

W Scope (6619): More yet to Come

W Scope Korea and W Scope Japan for new coating lines and given its track record, it is not impossible that the company will carry on recording...

Henry Soediarko

LG Energy/LG Chem Flow Trading on Solactive Lithium Index Rebalancing

This post examines the trading event of LG Energy Solution and LG Chem amid the Solactive Lithium Battery Index rebalancing in May.

Sanghyun Park

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Leapmotor Pre-IPO - The Negatives - Related Party Sanctions, Lags Peers

Leapmotor (LM) aims to raise around US$1bn in its Hong Kong IPO. LM is a smart EV company based in China, founded in 2015. In this note, we talk...

Sumeet Singh

A Pair Trade Between LG Chem & LG Energy Solution

Main reasons why we like this pair trade (long LG Chem & short LGES) include large shares that could be sold after 6 months lockup for LGES, LG...

Douglas Kim

Joe Biden's Visit to South Korea: Hyundai Motor Ready to Announce $7 Billion Investment in EVs in US

Hyundai Motor is likely to announce investments of nearly $7 billion for building a mega EV facility in Georgia which was leaked in the media in...

Douglas Kim

W Scope (6619): More yet to Come

W Scope Korea and W Scope Japan for new coating lines and given its track record, it is not impossible that the company will carry on recording...

Henry Soediarko

LG Energy/LG Chem Flow Trading on Solactive Lithium Index Rebalancing

This post examines the trading event of LG Energy Solution and LG Chem amid the Solactive Lithium Battery Index rebalancing in May.

Sanghyun Park