HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

<ul>
<li>The potential IPO of <a href="https://www.smartkarma.com/entities/anta-sports-products-ltd" target="_blank" data-smartkarma-citation="entities:10261:1" rel="noopener">Anta Sports Products (2020 HK)</a>'s 52.7% owned Amer Sports is positive in unlocking the latter's underlying value, though the impact is quite limited.</li>
<li>Assuming a P/S of 1.8x (30% discount to peers) and 25% enlargement in share capital, we estimate the exercise may bring ~HK$6n of potential pre-tax deemed disposal gain.</li>
<li>Although Anta Sports may not receive any cash, it can still pay out special dividends given its Rmb12bn net cash, and this will raise FY23 dividend yield to 3.1%.  </li>
</ul>


The potential IPO of Anta Sports Products (2020 HK)'s 52.7% owned Amer Sports is positive in unlocking the latter's underlying value, though the impact is quite limited.
Assuming a P/S of 1.8x (30% discount to peers) and 25% enlargement in share capital, we estimate the exercise may bring ~HK$6n of potential pre-tax deemed disposal gain.
Although Anta Sports may not receive any cash, it can still pay out special dividends given its Rmb12bn net cash, and this will raise FY23 dividend yield to 3.1%.  


Anta Sports (2020 HK): Assessing the Impact of a Potential Amer Sports IPO

China Tourism Group Duty Free / Equity Bottom-Up

<ul>
<li>In the near-term, China's relaxation of COVID-combating measures will boost consumption and demand for cross-province travel. <a href="https://www.smartkarma.com/entities/china-tourism-group-duty-free-corporation-limited" target="_blank" data-smartkarma-citation="entities:36229:1" rel="noopener">China Tourism Group Duty Free Corp Ltd (1880 HK)</a> is a beneficiary.</li>
<li>Hotel bookings in Sanya have surged over the last two days, reflecting positive demand reaction. However, China's full border opening likely in 2023 is a challenge to CDFC.  </li>
<li>Low base in FY22 will drive 45% earnings growth for FY23. However, valuations are not cheap at 33.8x PER for FY23, a significant premium to consumption sector and international peers.</li>
</ul>


In the near-term, China's relaxation of COVID-combating measures will boost consumption and demand for cross-province travel. China Tourism Group Duty Free Corp Ltd (1880 HK) is a beneficiary.
Hotel bookings in Sanya have surged over the last two days, reflecting positive demand reaction. However, China's full border opening likely in 2023 is a challenge to CDFC.  
Low base in FY22 will drive 45% earnings growth for FY23. However, valuations are not cheap at 33.8x PER for FY23, a significant premium to consumption sector and international peers.


CTG Duty Free (1880 HK): Near-Term Positive but It Is Not Cheap at All

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

Weilong Delicious Global Holdi / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/weilong-delicious-global-holdings-ltd" target="_blank" data-smartkarma-citation="entities:33378:1" rel="noopener">Weilong Delicious Global (WDG HK)</a>  a spicy snack food company in China, aims to raise around US$140m in its Hong Kong IPO.</li>
<li>According to F&amp;S, WDG ranked first among spicy snack food enterprises in China, with a market share of 6.2%, and in the seasoned flour product and spicy vegetable snacks categories.</li>
<li>We have covered various aspects of the deal in our previous notes, in this note, we will talk about  the final valuations.</li>
</ul>



Weilong Delicious Global (WDG HK)  a spicy snack food company in China, aims to raise around US$140m in its Hong Kong IPO.
According to F&amp;S, WDG ranked first among spicy snack food enterprises in China, with a market share of 6.2%, and in the seasoned flour product and spicy vegetable snacks categories.
We have covered various aspects of the deal in our previous notes, in this note, we will talk about  the final valuations.


Weilong Delicious Global IPO - Tepid Recent Performance Still Makes It Look Expensive

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

Quantitative Analysis

<ul>
<li>We analyzed the latest HK SFC report for aggregate short position as of Nov 25th.</li>
<li>Top short increases and decreases were tabulated for one week and four week period. </li>
<li>We highlight short changes in Ganfeng Lithium, Netease, Tencent, Li Ning.</li>
</ul>


We analyzed the latest HK SFC report for aggregate short position as of Nov 25th.
Top short increases and decreases were tabulated for one week and four week period. 
We highlight short changes in Ganfeng Lithium, Netease, Tencent, Li Ning.


HK Short Interest Weekly: Ganfeng Lithium, Netease, Tencent, Li Ning

Global Emerging Market Equities, Propitious Research

Wium Malan, CFA

Global Emerging Market Equities

Independent, Fundamental Quantitative Research

Propitious Research

Fully independent, fundamental and quantitative equity research, focused on companies in the Telecommunication, Media, Technology, Internet and Healthcare sectors in the Global Emerging Markets. Idea generation focused on Quality stocks, trading below their intrinsic Value, with sound Corporate Governance.

<ul>
<li>An overview (and output) of our machine learning-driven GEM screening model, which seeks to find the best medium-term long ideas within the top 100 stocks in the MSCI GEM Index.</li>
<li>The model is based on 1) a quantitative multifactor screening model, enhanced by two AI Technology-based approaches; 2) a Deep Neural Network model, and 3) a Recurrent Neural Network model.</li>
<li>Developed over roughly 4 years and implemented in its current state for over 2 years, the model has a solid real-world alpha-generating performance track record, discussed in detail below.</li>
</ul>


An overview (and output) of our machine learning-driven GEM screening model, which seeks to find the best medium-term long ideas within the top 100 stocks in the MSCI GEM Index.
The model is based on 1) a quantitative multifactor screening model, enhanced by two AI Technology-based approaches; 2) a Deep Neural Network model, and 3) a Recurrent Neural Network model.
Developed over roughly 4 years and implemented in its current state for over 2 years, the model has a solid real-world alpha-generating performance track record, discussed in detail below.


China

Li Ning Company Limited researches, designs, manufactures, distributes, and retails sports footwear, apparel and accessories for sport and leisure use.

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Li Ning (2331 HK)

Anta Sports (2020 HK): Assessing the Impact of a Potential Amer Sports IPO

A potential IPO of Anta Sports' 52.7%-owned Amer Sports may generate ~HK$6n of deemed disposal gain, based on P/S of 1.8x and 25% capital...

Osbert Tang, CFA

CTG Duty Free (1880 HK): Near-Term Positive but It Is Not Cheap at All

China's relaxation of COVID control will bring better near-term outlook, as reflected by surge in Sanya's hotel bookings. There are still...

Osbert Tang, CFA

Weilong Delicious Global IPO - Tepid Recent Performance Still Makes It Look Expensive

Weilong Delicious Global, a spicy snack food company in China, aims to raise around US$140m in its Hong Kong IPO. In this note, we talk about the...

Sumeet Singh

HK Short Interest Weekly: Ganfeng Lithium, Netease, Tencent, Li Ning

We analyzed the latest HK SFC report for aggregate short position and highlight short interest changes in Ganfeng Lithium, Netease, Tencent, Li Ning.

Ke Yan, CFA, FRM

Screening for GEMs: December 2022

This insight provides an overview of our, machine learning-driven, proprietary GEM screening model, based on a Multifactor model, a Deep Neural...

Wium Malan, CFA

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