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 analyse the changes of A/H premium on 140 stocks over the last week. </li>
<li>Week on week A-H premium decline was mainly due to the information technology, utilities and health care sector and offset by the increase of premium in consumer discretionary.</li>
<li>We highlight A-H premium changes in Shandong Xinhua, Shenhua, Huaxin Cement, Ganfeng Lithium, Tsingtao Brewery, and Baiyunshan.</li>
</ul>


We analyse the changes of A/H premium on 140 stocks over the last week. 
Week on week A-H premium decline was mainly due to the information technology, utilities and health care sector and offset by the increase of premium in consumer discretionary.
We highlight A-H premium changes in Shandong Xinhua, Shenhua, Huaxin Cement, Ganfeng Lithium, Tsingtao Brewery, and Baiyunshan.


A-H Premium Weekly: Shandong Xinhua, Shenhua, Ganfeng Lithium

<ul>
<li>We analyse the changes of A/H premium on 138 stocks over the last week.</li>
<li>Consumer staple, consumer discretionary and heathcare led the 3.0ppt weekly A-H premium decline. </li>
<li>We highlight names including Shenzhen HepaLink, Shandong Xinhua Pharm, and Shanghai Haohai Biological Technology.</li>
</ul>


We analyse the changes of A/H premium on 138 stocks over the last week.
Consumer staple, consumer discretionary and heathcare led the 3.0ppt weekly A-H premium decline. 
We highlight names including Shenzhen HepaLink, Shandong Xinhua Pharm, and Shanghai Haohai Biological Technology.


A-H Premium Weekly: Healthcare Led Premium Decline

<ul>
<li>We analyse the changes of A/H premium on 136 stocks over the last week.</li>
<li>A/H premium increase was led by consumer Staples and consumer discretionary and industrials sectors.</li>
<li>We highlight A/H premium at 52 week peak: BYD, Xinjiang Gold Wind, Ganfeng Lithium. </li>
</ul>


We analyse the changes of A/H premium on 136 stocks over the last week.
A/H premium increase was led by consumer Staples and consumer discretionary and industrials sectors.
We highlight A/H premium at 52 week peak: BYD, Xinjiang Gold Wind, Ganfeng Lithium. 


A/H Premium Weekly: BYD, Xinjiang Gold Wind, Ganfeng Lithium

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Bottom-Up

<p>Replacing coal-generated electricity with renewable energy to meet future carbon emission targets looks good on paper. Except when consumption surges in tandem with flood-impacted coal mines being shut down. This has resulted in varying degrees of production restrictions amid power curtailment in coke production areas. </p>
<p>Yesterday coking coal’s most-active January contract on China’s Dalian Commodity Exchange increased by ~6.9% to a contract high of RMB3,428 (US$532.80) per tonne. That's up from ~RMB1,800/tonne in the middle of July.</p>
<p>Coke, the processed form of coking or metallurgical (met) coal, is the key reducing agent of iron ore, the primary steelmaking ingredient.</p>
<p>Dalian iron ore closed 6.5% higher yesterday at RMB797.50/tonne, just below a session-high RMB799.50, the highest level since1st September. </p>
<p>S&amp;P summarised the provincial warnings by the NDRC, as it relates to power curtailment, as follows:</p>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/234/669/original/image_846887656201634022040308.png?1634022039" class="editor-image img-responsive" data-smartkarma-image-id="234669"></figure>
<p> ... where green represents "smooth progress", yellow is a "relatively tough situation" and red presents a "very tough situation."</p>
<p>The coal chemical industry is highly susceptible to upstream and downstream industries. And rising raw materials (coke prices) will likely push steel prices higher.</p>
<p><a href="https://www.smartkarma.com/entities/china-risun-group-ltd" target="_blank" data-smartkarma-citation="entities:27956:1" rel="noopener">China Risun (1907 HK)</a> operates in the midstream of the coal value chain. This insight takes a look at Risun's recent fortunes and compares it to <a href="https://www.smartkarma.com/entities/henan-jinma-energy-co-ltd" target="_blank" data-smartkarma-citation="entities:26805:1" rel="noopener">Henan Jinma Energy (6885 HK)</a>.</p>

Replacing coal-generated electricity with renewable energy to meet future carbon emission targets looks good on paper. Except when consumption surges in tandem with flood-impacted coal mines being shut down. This has resulted in varying degrees of production restrictions amid power curtailment in coke production areas. 
Yesterday coking coal’s most-active January contract on China’s Dalian Commodity Exchange increased by ~6.9% to a contract high of RMB3,428 (US$532.80) per tonne. That's up from ~RMB1,800/tonne in the middle of July.
Coke, the processed form of coking or metallurgical (met) coal, is the key reducing agent of iron ore, the primary steelmaking ingredient.
Dalian iron ore closed 6.5% higher yesterday at RMB797.50/tonne, just below a session-high RMB799.50, the highest level since1st September. 
S&amp;P summarised the provincial warnings by the NDRC, as it relates to power curtailment, as follows:

 ... where green represents "smooth progress", yellow is a "relatively tough situation" and red presents a "very tough situation."
The coal chemical industry is highly susceptible to upstream and downstream industries. And rising raw materials (coke prices) will likely push steel prices higher.
China Risun (1907 HK) operates in the midstream of the coal value chain. This insight takes a look at Risun's recent fortunes and compares it to Henan Jinma Energy (6885 HK).

China Risun (1907 HK): Even Greater Profits Or A Steel Trap?

Event-Driven

<div>
<p data-v-da61000a="" data-v-294dc056="">This is the latest update in a series dating back to <em><a href="https://skr.ma/c7hcH" target="_blank" rel="noopener">Legend's Conversion of Domestic Shares</a></em> in June 2018.</p>
</div>
<div>
<p data-v-da61000a="" data-v-294dc056="">To date, 28 companies have sought approval to convert their domestic shares and/or unlisted foreign shares into H shares, which would then be eligible to be listed and traded on Hong Kong's stock exchange.</p>
</div>
<div>
<p data-v-da61000a="" data-v-294dc056="">16 companies have now been given CSRC and Hong Kong listing approval to convert such shares. Five of those have seen various degrees of movement in the converted shares.</p>
<p data-v-da61000a="" data-v-294dc056=""><a href="https://www.smartkarma.com/entities/sichuan-languang-justbon-service-group-co-ltd-h" target="_blank" data-smartkarma-citation="entities:28337:1" rel="noopener">Sichuan Languang Justbon Service Group (2606 HK)</a> received approval late last year but did not convert - and was subsequently subject to an Offer. </p>
</div>
<div>
<p data-v-da61000a="" data-v-294dc056="">To date, two companies have withdrawn their application to convert their domestic shares.  Both of these companies have now been subject to Offers.</p>
</div>
<div>
<p data-v-da61000a="" data-v-294dc056="">As always, more below the fold. </p>
</div>


This is the latest update in a series dating back to Legend's Conversion of Domestic Shares in June 2018.


To date, 28 companies have sought approval to convert their domestic shares and/or unlisted foreign shares into H shares, which would then be eligible to be listed and traded on Hong Kong's stock exchange.


16 companies have now been given CSRC and Hong Kong listing approval to convert such shares. Five of those have seen various degrees of movement in the converted shares.
Sichuan Languang Justbon Service Group (2606 HK) received approval late last year but did not convert - and was subsequently subject to an Offer. 


To date, two companies have withdrawn their application to convert their domestic shares.  Both of these companies have now been subject to Offers.


As always, more below the fold. 


Full Circulation Of H-Shares: July 2021 Update

China

Maanshan Iron and Steel Company Limited manufactures and markets iron and steel products which can be divided into four categories, wire rods, steel section, medium or thick steel plates, and train wheels and tires.  The production process mainly comprises coking, sintering, iron smelting, steel smelting, and steel rolling.

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Maanshan Iron & Steel A (600808 CH)

A-H Premium Weekly: Shandong Xinhua, Shenhua, Ganfeng Lithium

We highlight weekly A-H premium changes in Shandong Xinhua, Shenhua, Huaxin Cement, Ganfeng Lithium, Tsingtao Brewery, and Baiyunshan.

Ke Yan, CFA, FRM

A-H Premium Weekly: Healthcare Led Premium Decline

A-H premium declined by 3.0ppt last week, led by consumer staple, consumer discretionary and heathcare. We highlight names including Shenzhen...

Ke Yan, CFA, FRM

A/H Premium Weekly: BYD, Xinjiang Gold Wind, Ganfeng Lithium

We highlight A/H premium increase led by consumer Staples and consumer discretionary and industrials sectors, and stocks at 52 week high: BYD,...

Ke Yan, CFA, FRM

China Risun (1907 HK): Even Greater Profits Or A Steel Trap?

Risun's one-year forward PER is 6.3x against 5.4x currently. Around 16% upside to the forward average is around its all-time high close (last...

David Blennerhassett

Full Circulation Of H-Shares: July 2021 Update

CSRC circulation approval is an endorsement of the existing internal framework of the company. There also does appear to be some degree of...

David Blennerhassett

Price Gauge

52-week Range

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