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 analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of September 16th.</li>
<li>We estimate the weekly outflows to be US$850.0 million, led by financials, industrials, and offset by information technology, energy.</li>
<li>We highlight flows for Ping An Insurance, Shaanxi Coal, CMB and CATL.</li>
</ul>


We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of September 16th.
We estimate the weekly outflows to be US$850.0 million, led by financials, industrials, and offset by information technology, energy.
We highlight flows for Ping An Insurance, Shaanxi Coal, CMB and CATL.


Northbound Flows (Sep 16th): Ping An Insurance, Shaanxi Coal, CMB and CATL

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Inside is a recap of movements in the last week relating to the Hong Kong Stock Exchange -Shanghai and Shenzhen Northbound Connect facilities, broken down by company and industry.</li>
<li>Overall, net inflow over the past week was ~US$1.9bn, split between Shanghai (+US$1.1bn) and Shenzhen (+US$0.8bn).</li>
<li>The largest inflows were into <a href="https://www.smartkarma.com/entities/kweichow-moutai-co-ltd-a" target="_blank" data-smartkarma-citation="entities:1553:1" rel="noopener">Kweichow Moutai (600519 CH)</a> and <a href="https://www.smartkarma.com/entities/maanshan-dingtai-rare-a" target="_blank" data-smartkarma-citation="entities:4128:1" rel="noopener">S.F. Holding (002352 CH)</a>. The largest outflows were in <a href="https://www.smartkarma.com/entities/china-merchants-bank-co-ltd" target="_blank" data-smartkarma-citation="entities:714:1" rel="noopener">China Merchants Bank A (600036 CH)</a> and <a href="https://www.smartkarma.com/entities/contemporary-amperex-techn-a" target="_blank" data-smartkarma-citation="entities:24404:1" rel="noopener">CATL (A) (300750 CH)</a>.</li>
</ul>


Inside is a recap of movements in the last week relating to the Hong Kong Stock Exchange -Shanghai and Shenzhen Northbound Connect facilities, broken down by company and industry.
Overall, net inflow over the past week was ~US$1.9bn, split between Shanghai (+US$1.1bn) and Shenzhen (+US$0.8bn).
The largest inflows were into Kweichow Moutai (600519 CH) and S.F. Holding (002352 CH). The largest outflows were in China Merchants Bank A (600036 CH) and CATL (A) (300750 CH).


Shanghai/​​​​​​​​​​​​Shenzhen Northbound Connect: Weekly Moves (15 September 2022)

HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

<ul>
<li>The Aug China Express Development Index points to further industry recovery; and as the leader with 23% (+2pp YoY) market share, <a href="https://www.smartkarma.com/entities/zto-express-cayman-inc" target="_blank" data-smartkarma-citation="entities:33488:1" rel="noopener">ZTO Express (2057 HK)</a> should ride on the uptrend. </li>
<li>Sustained volume outperformance, upside on pricing and excellent cost control capability are drivers in 2H22. We are also comfortable with its solid financial position. </li>
<li>ZTO Express has above-average earnings quality and enjoys benefits from industry consolidation. Its on par valuation with the industry makes the stock appealing.</li>
</ul>


The Aug China Express Development Index points to further industry recovery; and as the leader with 23% (+2pp YoY) market share, ZTO Express (2057 HK) should ride on the uptrend. 
Sustained volume outperformance, upside on pricing and excellent cost control capability are drivers in 2H22. We are also comfortable with its solid financial position. 
ZTO Express has above-average earnings quality and enjoys benefits from industry consolidation. Its on par valuation with the industry makes the stock appealing.


ZTO Express (2057 HK/​ZTO US): Quality Speaks for Itself

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

<ul>
<li>NetEase will start its first game studio in Europe after setting up two studios in the U.S.</li>
<li>Tencent and Sony invested minor shareholding in a Japanese game developer.</li>
<li>In 1H22, S.F. Holding’s revenue grew dramatically and its margins improved significantly.</li>
</ul>


NetEase will start its first game studio in Europe after setting up two studios in the U.S.
Tencent and Sony invested minor shareholding in a Japanese game developer.
In 1H22, S.F. Holding’s revenue grew dramatically and its margins improved significantly.


China Internet Weekly (5Aug2022): Tencent, NetEase, S.F., Baidu, IQ

Alibaba Group Holding  / Equity Bottom-Up

<ul>
<li>Logistics companies’ revenue grew by over 10%, which reflects the recovery of e-commerce.</li>
<li>The market size of Chinese online game continued to shrink in July.</li>
<li>Alibaba’s Ele.me sets up a mini-program on TikTok to fight Meituan.</li>
</ul>


Logistics companies’ revenue grew by over 10%, which reflects the recovery of e-commerce.
The market size of Chinese online game continued to shrink in July.
Alibaba’s Ele.me sets up a mini-program on TikTok to fight Meituan.


China Internet Weekly (22Aug22): E-Commerce, Logistics, Online Game, Food Delivery

China

S.F. Holding Co., Ltd operates as a holding company. The Company, through its subsidiaries, provides logistics, order tracking, supply chain management, and warehousing services. S.F. Holding operates worldwide.

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S.F. Holding (002352 CH)

Northbound Flows (Sep 16th): Ping An Insurance, Shaanxi Coal, CMB and CATL

We analyzed northbound Shanghai/Shenzhen connect flows in the past week and highlight flows for Ping An Insurance, Shaanxi Coal, CMB, CATL.

Ke Yan, CFA, FRM

Shanghai/Shenzhen Northbound Connect: Weekly Moves (15 September 2022)

Overall, net inflow over the past week in the HK -Shanghai-Shenzhen Northbound Connect facilities was ~US$1.9bn, split between Shanghai (+US$1.1bn)...

David Blennerhassett

ZTO Express (2057 HK/ZTO US): Quality Speaks for Itself

Industry figures suggest express market to continue recover in Aug and ZTO Express is best benefited given its number one position. Upside of ASP...

Osbert Tang, CFA

China Internet Weekly (5Aug2022): Tencent, NetEase, S.F., Baidu, IQ

NetEase will start its first game studio in Europe. Tencent invested in a Japanese game developer. In 1H22, S.F. Holding’s revenue grew...

Ming Lu

China Internet Weekly (22Aug22): E-Commerce, Logistics, Online Game, Food Delivery

Logistics companies’ revenue grew by over 10%, which reflects the recovery of e-commerce. The market size of Chinese online game continued to...

Ming Lu

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52-week Range

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Northbound Flows (Sep 16th): Ping An Insurance, Shaanxi Coal, CMB and CATL

We analyzed northbound Shanghai/Shenzhen connect flows in the past week and highlight flows for Ping An Insurance, Shaanxi Coal, CMB, CATL.

Ke Yan, CFA, FRM

Shanghai/​​​​​​​​​​​​Shenzhen Northbound Connect: Weekly Moves (15 September 2022)

Overall, net inflow over the past week in the HK -Shanghai-Shenzhen Northbound Connect facilities was ~US$1.9bn, split between Shanghai (+US$1.1bn)...

David Blennerhassett

ZTO Express (2057 HK/​ZTO US): Quality Speaks for Itself

Industry figures suggest express market to continue recover in Aug and ZTO Express is best benefited given its number one position. Upside of ASP...

Osbert Tang, CFA

China Internet Weekly (5Aug2022): Tencent, NetEase, S.F., Baidu, IQ

NetEase will start its first game studio in Europe. Tencent invested in a Japanese game developer. In 1H22, S.F. Holding’s revenue grew...

Ming Lu

China Internet Weekly (22Aug22): E-Commerce, Logistics, Online Game, Food Delivery

Logistics companies’ revenue grew by over 10%, which reflects the recovery of e-commerce. The market size of Chinese online game continued to...

Ming Lu

Shanghai/Shenzhen Northbound Connect: Weekly Moves (15 September 2022)

ZTO Express (2057 HK/ZTO US): Quality Speaks for Itself