Research on Tech Companies

Evelyn Zhang

Thematic (Sector/Industry)

<p>A series of recent Chinese policies promoting vocational schools instead of traditional secondary education, and efforts to eliminate after-class cramming makes me to recommend short K12 education related stocks and long vocational training related stocks.</p>

A series of recent Chinese policies promoting vocational schools instead of traditional secondary education, and efforts to eliminate after-class cramming makes me to recommend short K12 education related stocks and long vocational training related stocks.

A Twist of Fate – China’s Suppression of Secondary Education in Favor of Vocational Education

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

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 Bottom-Up

<ul>
<li>We believe it is not a good opportunity to accumulate equities of tutoring schools, especially those operating physical classrooms.</li>
<li>The juvenile Law went into effect as of June 1.</li>
<li>We believe all the coming restrictions aim to stimulate other consumption.</li>
</ul>


We believe it is not a good opportunity to accumulate equities of tutoring schools, especially those operating physical classrooms.
The juvenile Law went into effect as of June 1.
We believe all the coming restrictions aim to stimulate other consumption.


TAL Education (TAL): Last Summer for Physical Tutoring School

APAC IPOs & Placements

Zhen Zhou, Toh

New Oriental Education & Techn / Equity Bottom-Up

<p>China online education are trading about 60% lower on average since a year ago. This was largely due to expectations that there will be tightening of regulations on after-school tutoring sector including online education sectors. </p><p>In this note, we will discuss how we would position heading into the tightening of regulations.</p>

China online education are trading about 60% lower on average since a year ago. This was largely due to expectations that there will be tightening of regulations on after-school tutoring sector including online education sectors. In this note, we will discuss how we would position heading into the tightening of regulations.

China Online Education - Diversified Revenue Stream Wins Here - Balance in All Things

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

Hutchmed China Ltd / Equity Capital Markets

<div>
<p><a href="https://www.smartkarma.com/entities/hutchmed-china-ltd" target="_blank" data-smartkarma-citation="entities:133:1" rel="noopener">Hutchmed China Ltd (13 HK)</a> has launched a $603 million secondary listing on HKEx by offering 104.0 million ordinary shares at a maximum offer price of HK$45.00 per share. Bookbuilding is scheduled to run until the pricing on 23 June. The net proceeds will be used to fund the late-stage clinical programs (<em>savolitinib, surufatinib, fruquintinib</em>, HMPL-689 and HMPL-523), to support further proof-of-concept studies and strengthen commercialisation capabilities.</p>
<p>HutchMed has primary listings on Nasdaq and on UK AIM. The HKEx secondary listing will be supported by five cornerstone investors which will subscribe for HK$2,535 million ($325 million) of the offer shares (54.17% of the offer shares at the maximum offer price). The cornerstone investors are <a href="https://www.smartkarma.com/entities/carlyle-group-inc" target="_blank" data-smartkarma-citation="entities:33402:1" rel="noopener">Carlyle Group Inc (CG US)</a>, CPP Investments, General Atlantic, <a href="https://www.smartkarma.com/entities/hbm-healthcare-investments-ag" target="_blank" data-smartkarma-citation="entities:22373:1" rel="noopener">HBM Healthcare Investments AG (HBMN SW)</a> and CICC Capital.</p>
<p>HutchMed is a China-based, globally focused, biopharma company, active in discovery, development, manufacturing, and commercialisation. The investment case centres on the<br>success of its oncology/immunology platform, which has several near-term clinical and regulatory catalysts from the novel highly selective small molecule (tyrosine kinase inhibitor) pipeline. Notably, in-house discovered drugs, <em>Elunate (fruquintinib)</em> and <em>Sulanda (surufatinib)</em>, together with a likely approval for <em>savolitinib</em>, are transforming China prospects. <em>Elunate</em> is performing well in China, with NRDL inclusion boosting volumes. The first global launch is likely to be <em>surufatinib </em>with a US launch targeted for late 2021 or early 2022.</p>
</div><div><div class="content-highlight"><p>In this note, we will look at HutchMed’s potential HK-ADS premium/(discount). As per the norm, HutchMed will price its H-shares at a discount to its ADSs/UK shares to entice investors to participate in the secondary listing. HutchMed pricing its H-shares at a discount of 2-3% to its ADSs will be reasonable, in our view.</p></div></div>


Hutchmed China Ltd (13 HK) has launched a $603 million secondary listing on HKEx by offering 104.0 million ordinary shares at a maximum offer price of HK$45.00 per share. Bookbuilding is scheduled to run until the pricing on 23 June. The net proceeds will be used to fund the late-stage clinical programs (savolitinib, surufatinib, fruquintinib, HMPL-689 and HMPL-523), to support further proof-of-concept studies and strengthen commercialisation capabilities.
HutchMed has primary listings on Nasdaq and on UK AIM. The HKEx secondary listing will be supported by five cornerstone investors which will subscribe for HK$2,535 million ($325 million) of the offer shares (54.17% of the offer shares at the maximum offer price). The cornerstone investors are Carlyle Group Inc (CG US), CPP Investments, General Atlantic, HBM Healthcare Investments AG (HBMN SW) and CICC Capital.
HutchMed is a China-based, globally focused, biopharma company, active in discovery, development, manufacturing, and commercialisation. The investment case centres on the success of its oncology/immunology platform, which has several near-term clinical and regulatory catalysts from the novel highly selective small molecule (tyrosine kinase inhibitor) pipeline. Notably, in-house discovered drugs, Elunate (fruquintinib) and Sulanda (surufatinib), together with a likely approval for savolitinib, are transforming China prospects. Elunate is performing well in China, with NRDL inclusion boosting volumes. The first global launch is likely to be surufatinib with a US launch targeted for late 2021 or early 2022.
In this note, we will look at HutchMed’s potential HK-ADS premium/(discount). As per the norm, HutchMed will price its H-shares at a discount to its ADSs/UK shares to entice investors to participate in the secondary listing. HutchMed pricing its H-shares at a discount of 2-3% to its ADSs will be reasonable, in our view.

HutchMed Secondary Listing: HK-ADS Premium/​​​(Discount) Views

Telco/Internet specialist

Kirk Boodry

Redex Research

<p>There has been an uptick in Softbank news this week as we enter the last stretch of the quarter. On one hand there has been good news as Vision Fund 2’s public portfolio expands, thanks to a successful listing for Zhangmen, two coincident IPO investments and an IPO filing for investee Dingdong Maicai. But the long-expected bankruptcy of Katerra also means another $2bn of Vision Fund value has been wiped off the board so what markets are hearing on Softbank remains decidedly mixed. We have updated our Softbank tables including public portfolio valuations, the holding company discount, and the IPO pipeline.  </p>

There has been an uptick in Softbank news this week as we enter the last stretch of the quarter. On one hand there has been good news as Vision Fund 2’s public portfolio expands, thanks to a successful listing for Zhangmen, two coincident IPO investments and an IPO filing for investee Dingdong Maicai. But the long-expected bankruptcy of Katerra also means another $2bn of Vision Fund value has been wiped off the board so what markets are hearing on Softbank remains decidedly mixed. We have updated our Softbank tables including public portfolio valuations, the holding company discount, and the IPO pipeline.  

Softbank Group - Shares Drift as Discount Settles in 40% Range

China

New Oriental Education & Technology Group, Inc. offers educational services. The Company offers foreign language training, test preparation courses for admissions and assessment tests in the United States, the PRC and Commonwealth countries, primary and secondary school education, and other services. New Oriental Education & Technology Group also operates software development.

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New Oriental Education & Techn (EDU US)

A Twist of Fate – China’s Suppression of Secondary Education in Favor of Vocational Education

Change is afoot in one of China's main social mobility mechanism, the education system. The country is promoting vocational education in an effort...

Evelyn Zhang

TAL Education (TAL): Last Summer for Physical Tutoring School

We believe it is not a good opportunity to accumulate equities of tutoring schools, especially those operating classrooms. We believe all the...

Ming Lu

China Online Education - Diversified Revenue Stream Wins Here - Balance in All Things

China online education are trading about 60% lower on average since a year ago. This was largely due to expectations that there will be tightening...

Zhen Zhou, Toh

HutchMed Secondary Listing: HK-ADS Premium/(Discount) Views

HutchMed has launched a $603 million secondary listing on HKEx. In this note, we will look at HutchMed’s potential HK-ADS premium/(discount).

Arun George

Softbank Group - Shares Drift as Discount Settles in 40% Range

SBG reports incremental progress on its Vision Fund liquidity plans but c. $9bn in public VF valuation losses is a headwind. Shares now trade in...

Kirk Boodry

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

A Twist of Fate – China’s Suppression of Secondary Education in Favor of Vocational Education

Change is afoot in one of China's main social mobility mechanism, the education system. The country is promoting vocational education in an effort...

Evelyn Zhang

TAL Education (TAL): Last Summer for Physical Tutoring School

We believe it is not a good opportunity to accumulate equities of tutoring schools, especially those operating classrooms. We believe all the...

Ming Lu

China Online Education - Diversified Revenue Stream Wins Here - Balance in All Things

China online education are trading about 60% lower on average since a year ago. This was largely due to expectations that there will be tightening...

Zhen Zhou, Toh

HutchMed Secondary Listing: HK-ADS Premium/​​​(Discount) Views

HutchMed has launched a $603 million secondary listing on HKEx. In this note, we will look at HutchMed’s potential HK-ADS premium/(discount).

Arun George

Softbank Group - Shares Drift as Discount Settles in 40% Range

SBG reports incremental progress on its Vision Fund liquidity plans but c. $9bn in public VF valuation losses is a headwind. Shares now trade in...

Kirk Boodry

HutchMed Secondary Listing: HK-ADS Premium/(Discount) Views