Silver Point

Thomas J. Monaco

Independent Insight Provider

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

Equity Bottom-Up

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<li>
Default: Kaisa Group Holdings (1638.HK) [Kaisa] allegedly failed to pay its USD 400 mn bond;</li>
<li>
Obfuscation On F/S: Part of the problem with Kaisa is how the financial statements broken out, which, in our view, obfuscated the true nature of liquidity at Kaisa; and</li>
<li>
Other Creditors: In addition to offshore bondholders, Kaisa’s main banks include: Bank of China (3988.HK); ICBC (1398.HK); Ping An Bank (000001.CH); China Minsheng Bank (1988.HK); and China CITIC Bank (998.HK).</li>
</ul>



Default: Kaisa Group Holdings (1638.HK) [Kaisa] allegedly failed to pay its USD 400 mn bond;

Obfuscation On F/S: Part of the problem with Kaisa is how the financial statements broken out, which, in our view, obfuscated the true nature of liquidity at Kaisa; and

Other Creditors: In addition to offshore bondholders, Kaisa’s main banks include: Bank of China (3988.HK); ICBC (1398.HK); Ping An Bank (000001.CH); China Minsheng Bank (1988.HK); and China CITIC Bank (998.HK).


Kaisa Group Holdings – Second Domino Falls

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<li>
Another Weak Number: Waterdrop (WDH.US) reported a third set of losses since its IPO, coming in at a negative CNY 477 mn  - improving CNY 227 mn (32.5%) QOQ; </li>
<li>
High Cumulative Losses: Cumulative losses since its IPO are over CNY 1.5 bn, and represent about 57% of IPO funds raised. Challenges come from weaker revenues and excessive costs; and    </li>
<li>
Notice” To Online Insurers: The CBIRC's roll out of the internet insurance revision plan aims to scrutinize mainland China’s insurance technology platforms. </li>
</ul>



Another Weak Number: Waterdrop (WDH.US) reported a third set of losses since its IPO, coming in at a negative CNY 477 mn  - improving CNY 227 mn (32.5%) QOQ; 

High Cumulative Losses: Cumulative losses since its IPO are over CNY 1.5 bn, and represent about 57% of IPO funds raised. Challenges come from weaker revenues and excessive costs; and    

Notice” To Online Insurers: The CBIRC's roll out of the internet insurance revision plan aims to scrutinize mainland China’s insurance technology platforms. 


APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC 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

<ul>
<li>
<a href="https://www.smartkarma.com/entities/gushengtang-cayman-ltd" target="_blank" data-smartkarma-citation="entities:33503:1" rel="noopener">Gushengtang (GUS HK)</a> is looking to raise US$150m in its Hong Kong IPO.</li>
<li>Gushengtang is a traditional chinese medicine (TCM) healthcare service provider in China. It provides TCM healthcare services and products via its offline medical institutions and online healthcare platforms.</li>
<li>As of the LPD, the firm provided services to customers across 31 provinces via its medical service network, and had 19,203 physicians practicing as of Jun 2021.</li>
</ul>



Gushengtang (GUS HK) is looking to raise US$150m in its Hong Kong IPO.
Gushengtang is a traditional chinese medicine (TCM) healthcare service provider in China. It provides TCM healthcare services and products via its offline medical institutions and online healthcare platforms.
As of the LPD, the firm provided services to customers across 31 provinces via its medical service network, and had 19,203 physicians practicing as of Jun 2021.


Gushengtang Pre-IPO - The Negatives - Small Player in a Fragmented Market

Gushengtang Pre-IPO - The Positives - Resilient Financials and Could Ride on Industry Tailwind

*Kaisa Defaults: On November 4, 2021, Kaisa Group Holdings (1638.HK) [Kaisa], which provided a guarantee on a wealth management product (WMP), disclosed that it had missed a payment - citing that “it is facing unprecedented liquidity pressure due to a challenging property market and rating downgrades”.  While the 25th largest developer by home sales in mainland China may not appear to be significant, Kaisa does have the second largest level of short-term debt due (USD 3.2 bn) after China Evergrande Group (3333.HK) [Evergrande] without any meaningful plan for repayment; and*We Await Evergrande’s Next Payments: We await official word on whether Evergrande’s Scenery Journey met its coupon payment of USD 82.5 mn due November 6, 2021, and we look toward the 30-day grace period expiry on a third set of bond interest payments of USD 148 mn due November 10, 2021.

*Kaisa Defaults: On November 4, 2021, Kaisa Group Holdings (1638.HK) [Kaisa], which provided a guarantee on a wealth management product (WMP), disclosed that it had missed a payment - citing that “it is facing unprecedented liquidity pressure due to a challenging property market and rating downgrades”.  While the 25th largest developer by home sales in mainland China may not appear to be significant, Kaisa does have the second largest level of short-term debt due (USD 3.2 bn) after China Evergrande Group (3333.HK) [Evergrande] without any meaningful plan for repayment; and*We Await Evergrande’s Next Payments: We await official word on whether Evergrande’s Scenery Journey met its coupon payment of USD 82.5 mn due November 6, 2021, and we look toward the 30-day grace period expiry on a third set of bond interest payments of USD 148 mn due November 10, 2021.   

China

Ping An Insurance (Group) Company of China Limited provides products and services through its five ecosystems in financial services, healthcare, auto services, real estate services and Smart City solutions. The Group's insurance business writes property, casualty, and life insurance products.

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Ping An Insurance Group of (PNGAY US)

Kaisa Group Holdings – Second Domino Falls

KAISA: Kaisa allegedly failed to pay its USD 400 mn bond. Part of the problem with Kaisa is how the financial statements broken out, which, in our...

Thomas J. Monaco

Waterdrop – Still Bleeding

WATERDROP: Waterdrop reported losses of CNY 477 mn - improving CNY 227 mn or 32.5% linked quarter and bringing cumulative losses since its IPO to...

Thomas J. Monaco

Gushengtang Pre-IPO - The Negatives - Small Player in a Fragmented Market

Gushengtang (GUS HK) is looking to raise US$150m in its Hong Kong IPO. The firm provides TCM healthcare services and products via its offline...

Clarence Chu

Gushengtang Pre-IPO - The Positives - Resilient Financials and Could Ride on Industry Tailwind

Gushengtang (GUS HK) is looking to raise US$150m in its Hong Kong IPO. The firm is a traditional chinese medicine (TCM) healthcare service provider...

Clarence Chu

China Evergrande Group – Kaisa Rolled

EVERGRANDE: Kaisa missed a bond payment, and has the second largest level of short-term debt due. We await official word Evergrande’s Scenery...

Thomas J. Monaco

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