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 monthly Hong Kong Connect flows with our data engine.</li>
<li>We tabulate the top stocks by inflows, outlfows, and holding by mainland investors.</li>
<li>We highlight inflows into China Mobile, GWM, Sensetime, and outflows from Tencent, HKEx, CCB, Meituan, BYD.</li>
</ul>


We analyze the monthly Hong Kong Connect flows with our data engine.
We tabulate the top stocks by inflows, outlfows, and holding by mainland investors.
We highlight inflows into China Mobile, GWM, Sensetime, and outflows from Tencent, HKEx, CCB, Meituan, BYD.


Hong Kong Connect Flows Monthly: First Monthly Outflows in 12 Months

APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC IPOs & Placements

Equity Capital Markets

Shum Yip Property Operations Group / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shum-yip-property-operations-group" target="_blank" data-smartkarma-citation="entities:36812:1" rel="noopener">Shum Yip Property Operations Group (SYPOG HK)</a> is looking to raise about US$200m in its upcoming Hong Kong IPO.</li>
<li>Shum Yip Property Operations Group (SYPOG) is a property management, commercial operational and city services provider in China.</li>
<li>As per Frost &amp; Sullivan (F&amp;S), the firm was eighth among comprehensive property management, commercial operational and city services providers in China as per 2021 revenue.</li>
</ul>



Shum Yip Property Operations Group (SYPOG HK) is looking to raise about US$200m in its upcoming Hong Kong IPO.
Shum Yip Property Operations Group (SYPOG) is a property management, commercial operational and city services provider in China.
As per Frost &amp; Sullivan (F&amp;S), the firm was eighth among comprehensive property management, commercial operational and city services providers in China as per 2021 revenue.


Shum Yip Property Operations Group Pre-IPO Tearsheet

China/Asia TMT

Shawn Yang

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Thematic (Sector/Industry)

<ul>
<li>9926HK：Summit Therapeutics completed US$500mn rights offering to pay for Akeso's AK112 (+)</li>
<li>3690HK：Meituan closure of self-operated taxi business may have 6% benefit to net profit in 2023 (+)</li>
<li>ZLAB：HBM announced Phase III success of FcRn drug treating MG, about to compete against ZLAB's Efgartigimod(-)</li>
</ul>


9926HK：Summit Therapeutics completed US$500mn rights offering to pay for Akeso's AK112 (+)
3690HK：Meituan closure of self-operated taxi business may have 6% benefit to net profit in 2023 (+)
ZLAB：HBM announced Phase III success of FcRn drug treating MG, about to compete against ZLAB's Efgartigimod(-)


China TMT Update(Mar.8): 9926HK,ZLAB,3690HK: Meituan Closure of Self-Operated Taxi Business (+)

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>From the time of <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> announcement of the in-specie dividend, <a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a> has underperformed <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> and <a href="https://www.smartkarma.com/entities/alibaba-group" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group (9988 HK)</a> by around 35%.</li>
<li>Surprisingly, short interest on <a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a> has dropped in the last few months as the stock has continued to drop.</li>
<li>As with <a href="https://www.smartkarma.com/entities/jd-com-inc" target="_blank" data-smartkarma-citation="entities:29043:1" rel="noopener">JD.com Inc. (9618 HK)</a>, <a href="https://www.smartkarma.com/entities/prosus-nv" target="_blank" data-smartkarma-citation="entities:28104:1" rel="noopener">Prosus (PRX NA)</a> could sell <a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a> in the months following settlement. Or they could remove the overhang by placing a block.</li>
</ul>


From the time of Tencent (700 HK) announcement of the in-specie dividend, Meituan (3690 HK) has underperformed Tencent (700 HK) and Alibaba Group (9988 HK) by around 35%.
Surprisingly, short interest on Meituan (3690 HK) has dropped in the last few months as the stock has continued to drop.
As with JD.com Inc. (9618 HK), Prosus (PRX NA) could sell Meituan (3690 HK) in the months following settlement. Or they could remove the overhang by placing a block.


Meituan (3690 HK): Tencent's In-Specie Div Settles in Two Weeks

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

<ul>
<li>On 16th Nov 22, post-market close, along with its 3Q22 results Tencent declared an interim dividend by way of distribution in specie of Class B Ordinary shares of Meituan.</li>
<li>At the time of declaration, the dividend amounted to US$20bn or 15.5% of Meituan’s outstanding shares. Its value has since declined to US$17bn.</li>
<li>In this note, we talk about the implications of the deal and what one can glean from looking at the previous dividend payout for JD.com.</li>
</ul>


On 16th Nov 22, post-market close, along with its 3Q22 results Tencent declared an interim dividend by way of distribution in specie of Class B Ordinary shares of Meituan.
At the time of declaration, the dividend amounted to US$20bn or 15.5% of Meituan’s outstanding shares. Its value has since declined to US$17bn.
In this note, we talk about the implications of the deal and what one can glean from looking at the previous dividend payout for JD.com.


Tencent Meituan Dividend - The US$17bn Overhang Is Almost Here - Lesson from JD.com

China

Meituan operates as a web based shopping platform for locally found consumer products and retail services. The Company offers deals of the day by selling vouchers on local services and entertainment, dining, delivery, and other services. Meituan provides its services throughout China.

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Meituan (3690 HK)

Hong Kong Connect Flows Monthly: First Monthly Outflows in 12 Months

We analyzed the Hong Kong Connect Scheme for February and highlight flows for China Mobile, GWM, Sensetime, Tencent, HKEx, CCB, Meituan, BYD.

Ke Yan, CFA, FRM

Shum Yip Property Operations Group Pre-IPO Tearsheet

Shum Yip Property Operations Group (SYPOG HK) is looking to raise about US$200m in its upcoming Hong Kong IPO. SYPOG is a property management,...

Clarence Chu

China TMT Update(Mar.8): 9926HK,ZLAB,3690HK: Meituan Closure of Self-Operated Taxi Business (+)

ZLAB：HBM announced Phase III success of FcRn drug treating MG(-) 3690HK：Meituan closure of self-operated taxi business may have 6% benefit to net...

Blue Lotus Research Institute

Meituan (3690 HK): Tencent's In-Specie Div Settles in Two Weeks

Meituan shares from Tencent's in-specie div settle in just over 2 weeks. Meituan has underperformed Tencent & Alibaba by 35% since announcement....

Brian Freitas

Tencent Meituan Dividend - The US$17bn Overhang Is Almost Here - Lesson from JD.com

On 16th Nov 22, Tencent declared an interim dividend by way of distribution in specie of Class B Ordinary shares of Meituan. The US$17bn overhang...

Sumeet Singh

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52-week Range

Market Cap (USDm)

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