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.

Quantitative Analysis

<ul>
<li>We analyzed the latest HK SFC report for aggregate short position as of Oct 25th.</li>
<li>Top short increases and decreases were tabulated for one week and four week period. </li>
<li>We highlight short changes in Li Auto, Xiaomi, Xinyi Solar, Geely Auto, Trip.Com.</li>
</ul>


We analyzed the latest HK SFC report for aggregate short position as of Oct 25th.
Top short increases and decreases were tabulated for one week and four week period. 
We highlight short changes in Li Auto, Xiaomi, Xinyi Solar, Geely Auto, Trip.Com.


HK Short Interest Weekly: Li Auto, Xiaomi, Xinyi Solar, Geely Auto, Trip.Com

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>SOUTHBOUND had a small up week in 28% lower gross week on week. SOUTHBOUND activity is now the lowest in many weeks, not keeping up with mainland volumes.</li>
<li>ETFs were net sold, and high-div SOEs (China Mobile, CNOOC) were sold yet again. BABA, Xiaomi, Tencent, GCL were bought. </li>
<li>The buying of tech continues. I expect this to last for a while.</li>
</ul>


SOUTHBOUND had a small up week in 28% lower gross week on week. SOUTHBOUND activity is now the lowest in many weeks, not keeping up with mainland volumes.
ETFs were net sold, and high-div SOEs (China Mobile, CNOOC) were sold yet again. BABA, Xiaomi, Tencent, GCL were bought. 
The buying of tech continues. I expect this to last for a while.


HK Connect SOUTHBOUND Flows (To 1 Nov 2024); High-Div SOEs Sold, Tech Bought

<ul>
<li>We analyze the monthly Hong Kong Connect flows with our data engine.</li>
<li>We tabulate the top stocks by inflows, outflows, and holding by mainland investors.</li>
<li>We highlight inflows into Alibaba, Xiaomi, SMIC, Geely, CCB and outflows from Meituan.</li>
</ul>


We analyze the monthly Hong Kong Connect flows with our data engine.
We tabulate the top stocks by inflows, outflows, and holding by mainland investors.
We highlight inflows into Alibaba, Xiaomi, SMIC, Geely, CCB and outflows from Meituan.


Hong Kong Connect Flows (October): $12 Bn Inflows

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Equity Capital Markets

JD Industrial Technology  / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/jd-industrial-technology-ltd" target="_blank" data-smartkarma-citation="entities:36875:1" rel="noopener">JD Industrial Technology</a> is looking to raise about US$1bn in its upcoming HK IPO.</li>
<li>JDI is a leading industrial supply chain technology and service provider in China in terms of GMV in each year during the Track Record Period, according to CIC.</li>
<li>We have looked at the company background and provided our initial thoughts on valuations in our previous notes. In this note, we will talk about the refiling updates.</li>
</ul>



JD Industrial Technology is looking to raise about US$1bn in its upcoming HK IPO.
JDI is a leading industrial supply chain technology and service provider in China in terms of GMV in each year during the Track Record Period, according to CIC.
We have looked at the company background and provided our initial thoughts on valuations in our previous notes. In this note, we will talk about the refiling updates.


JD Industrials Pre-IPO - Refiling Updates - Few Hits, Few Misses

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Thematic (Sector/Industry)

<ul><li>We expect 3Q24 earnings of some leading Chinese automakers including BYD, Geely and Li Auto to rise substantially from 2Q24, which could beat investors’ expectation.</li><li>We expect Great Wall’s 3Q24 earnings to be resilient and at a similar level as 2Q24. Although both Xpeng and NIO launched competitive new models in 3Q24, we do not expect their net losses to narrow QoQ as the increase in gross profits may not be able to cover the R&amp;D and SG&amp;A expenses growth.</li><li>As valuation becomes less attractive now, we prefer automakers with more solid earnings, such as Geely and Li Auto. </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

We expect 3Q24 earnings of some leading Chinese automakers including BYD, Geely and Li Auto to rise substantially from 2Q24, which could beat investors’ expectation.We expect Great Wall’s 3Q24 earnings to be resilient and at a similar level as 2Q24. Although both Xpeng and NIO launched competitive new models in 3Q24, we do not expect their net losses to narrow QoQ as the increase in gross profits may not be able to cover the R&amp;D and SG&amp;A expenses growth.As valuation becomes less attractive now, we prefer automakers with more solid earnings, such as Geely and Li Auto. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Auto - 3Q Earnings Preview: Leading Players to Beat

China

Li Auto Inc. manufactures automobiles. The Company designs, develops, and sells smart new energy electric sport utility vehicles. Li Auto conducts businesses in China.

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Li Auto (2015 HK)

HK Short Interest Weekly: Li Auto, Xiaomi, Xinyi Solar, Geely Auto, Trip.Com

We analyzed the latest HK SFC report for aggregate short position as of Oct 25th and highlight short interest changes in Li Auto, Xiaomi, Xinyi...

Ke Yan, CFA, FRM

HK Connect SOUTHBOUND Flows (To 1 Nov 2024); High-Div SOEs Sold, Tech Bought

SOUTHBOUND was a net buyer, again. Volumes were lower. High-div SOEs - so well bought in the early part of the year - are being liquidated in...

Travis Lundy

Hong Kong Connect Flows (October): $12 Bn Inflows

We analyzed the Hong Kong Connect Scheme for October and highlighted flows for Alibaba, Xiaomi, SMIC, Geely, CCB, and Meituan.

Ke Yan, CFA, FRM

JD Industrials Pre-IPO - Refiling Updates - Few Hits, Few Misses

JD Industrial Technology is looking to raise about US$1bn in its upcoming HK IPO. We have looked at its past performance in our earlier notes. In...

Sumeet Singh

Auto - 3Q Earnings Preview: Leading Players to Beat

We expect 3Q24 earnings of some leading Chinese automakers including BYD, Geely and Li Auto to rise substantially from 2Q24, which could beat...

CMB International

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