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

Alibaba Group Holding  / Equity Bottom-Up

<ul>
<li>Pop Mart’s total revenue increased by 62% YoY due to the promising overseas market.</li>
<li>Tongcheng’ revenue grew by 48% YoY in 2Q24, as new businesses are successful.</li>
<li>Alibaba’s Freshippo plans to set up frontline warehouses, which is a way back to online.</li>
</ul>


Pop Mart’s total revenue increased by 62% YoY due to the promising overseas market.
Tongcheng’ revenue grew by 48% YoY in 2Q24, as new businesses are successful.
Alibaba’s Freshippo plans to set up frontline warehouses, which is a way back to online.


China Consumption Weekly (26Aug2024): 2Q24 Rev Up By - PopMart 62%, Zeekr 58%, Tongcheng 48%, Etc.

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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, outflows, and holding by mainland investors.</li>
<li>We highlight inflows into ICBC, Tencent, CCB, Yankuang, Sinopec, and outflows from HSBC, Meituan, HKEx, China Hongqiao, CNOOC. </li>
</ul>


We analyze the monthly Hong Kong Connect flows with our data engine.
We tabulate the top stocks by inflows, outflows, and holding by mainland investors.
We highlight inflows into ICBC, Tencent, CCB, Yankuang, Sinopec, and outflows from HSBC, Meituan, HKEx, China Hongqiao, CNOOC. 


Hong Kong Connect Flows (July): 11 Months of Inflows

APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC IPOs & Placements

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/bloks-group" target="_blank" data-smartkarma-citation="entities:43648:1" rel="noopener">Bloks Group (1850960D CH)</a> is looking to raise US$300m in its upcoming Hong Kong IPO.</li>
<li>Bloks Groups (Bloks) operates in the toy segment where it primarily assembles character and brick-based toys.</li>
<li>In this note, we will talk about the not so positive aspects of the deal.</li>
</ul>



Bloks Group (1850960D CH) is looking to raise US$300m in its upcoming Hong Kong IPO.
Bloks Groups (Bloks) operates in the toy segment where it primarily assembles character and brick-based toys.
In this note, we will talk about the not so positive aspects of the deal.


Bloks Group Pre-IPO - The Negatives - Concentration Risk Is Concerning, and Limited Overseas Reach

<ul>
<li>
<a href="https://www.smartkarma.com/entities/bloks-group" target="_blank" data-smartkarma-citation="entities:43648:1" rel="noopener">Bloks Group (1850960D CH)</a> is looking to raise US$300m in its upcoming Hong Kong IPO.</li>
<li>Bloks Groups (Bloks) operates in the toy segment where it primarily assembles character and brick-based toys.</li>
<li>In this note, we will talk about the positive aspects of the deal.</li>
</ul>



Bloks Group (1850960D CH) is looking to raise US$300m in its upcoming Hong Kong IPO.
Bloks Groups (Bloks) operates in the toy segment where it primarily assembles character and brick-based toys.
In this note, we will talk about the positive aspects of the deal.


Bloks Group Pre-IPO - The Positives - Wide Portfolio of Established IPs

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>The key for high growth in 2023/24Q1 lies in its assembly character toys with renowned IPs,which may not be sustainable or even collapse if Bloks fails to renew license agreements.</li>
<li>The advantages of Bloks in development prospects, self-developed IPs, brand stickiness are not obvious. The latest valuation reached RMB7.2 billion, but the founder has already cashed out before IPO. </li>
<li>Hong Kong stock market has been “lukewarm” to toy companies. Except Pop Mart, valuation/share price of peers are quite weak.How to gain investor/market’s recognition for Bloks is a question mark.</li>
</ul>


The key for high growth in 2023/24Q1 lies in its assembly character toys with renowned IPs,which may not be sustainable or even collapse if Bloks fails to renew license agreements.
The advantages of Bloks in development prospects, self-developed IPs, brand stickiness are not obvious. The latest valuation reached RMB7.2 billion, but the founder has already cashed out before IPO. 
Hong Kong stock market has been “lukewarm” to toy companies. Except Pop Mart, valuation/share price of peers are quite weak.How to gain investor/market’s recognition for Bloks is a question mark.


Pre-IPO Bloks Group - High Growth May Not Be Sustainable

China

Pop Mart International Group Limited operates as a toys wholesales company. The Company provides trendy toys designing, production, marketing, and other services. Pop Mart International Group markets its products worldwide.

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Pop Mart International Group L (9992 HK)

China Consumption Weekly (26Aug2024): 2Q24 Rev Up By - PopMart 62%, Zeekr 58%, Tongcheng 48%, Etc.

Alibaba’s Freshippo plans to set up frontline warehouses, which is a way back to online. Many small caps' revenues grew strongly in 2Q24.

Ming Lu

Hong Kong Connect Flows (July): 11 Months of Inflows

We analyzed the Hong Kong Connect Scheme for July and highlighted inflows into ICBC, Tencent, CCB, Yankuang, Sinopec, and outflows from HSBC,...

Ke Yan, CFA, FRM

Bloks Group Pre-IPO - The Negatives - Concentration Risk Is Concerning, and Limited Overseas Reach

Bloks Group (1850960D CH) is looking to raise US$300m in its upcoming Hong Kong IPO. In this note, we will talk about the not so positive aspects...

Clarence Chu

Bloks Group Pre-IPO - The Positives - Wide Portfolio of Established IPs

Bloks Group (1850960D CH) is looking to raise US$300m in its upcoming Hong Kong IPO. In this note, we will talk about the positive aspects of the...

Clarence Chu

Pre-IPO Bloks Group - High Growth May Not Be Sustainable

High growth for Bloks in 2023/24Q1 hinges on assembly character toys with renowned IPs, but sustainability is uncertain due to potential license...

Xinyao (Criss) Wang

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52-week Range

Market Cap (USDm)

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