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

Hong Kong Exchange publishes share repurchases by listed companies on a daily basis. In our weekly note, we will provide statistics on top repurchases over one week, one month, one quarter and one year periods.In the past 7 days, the top 3 companies that repurchased the most shares from the market were <a href="https://www.smartkarma.com/entities/link-reit" target="_blank" data-smartkarma-citation="entities:872:1" rel="noopener">Link REIT (823 HK)</a> (HKD 101.5 million worth of buybacks), <a href="https://www.smartkarma.com/entities/fosun-international-ltd" target="_blank" data-smartkarma-citation="entities:433:1" rel="noopener">Fosun International (656 HK)</a> (HKD 52.8 million worth of buybacks), <a href="https://www.smartkarma.com/entities/sparkle-roll-group-ltd" target="_blank" data-smartkarma-citation="entities:12917:1" rel="noopener">Sparkle Roll (970 HK)</a> (HKD 5.1 million worth of buybacks). There were 10 companies that repurchased shares in the market. These repurchases amounted to HKD 170.3 million.In the past 30 days, the top 3 companies that repurchased the most shares from the market were Link Reit (823 HK) (HKD 628.8 million worth of buybacks), Fosun International Limited (656 HK) (HKD 130.9 million worth of buybacks), <a href="https://www.smartkarma.com/entities/china-medical-system-holdings" target="_blank" data-smartkarma-citation="entities:18736:1" rel="noopener">China Medical System (867 HK)</a> (HKD 98.2 million worth of buybacks). In the past 90 days, the top 3 companies that repurchased the most shares from the market were <a href="https://www.smartkarma.com/entities/link-reit" target="_blank" data-smartkarma-citation="entities:872:1" rel="noopener">Link REIT (823 HK)</a> (HKD 2,796.0 million worth of buybacks), <a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi Corp (1810 HK)</a> (HKD 389.5 million worth of buybacks), Fosun International Limited (656 HK) (HKD 177.2 million worth of buybacks). In the past 365 days, the top 3 companies that repurchased the most shares from the market were <a href="https://www.smartkarma.com/entities/hsbc-holdings-plc" target="_blank" data-smartkarma-citation="entities:516:1" rel="noopener">HSBC Holdings (5 HK)</a> (HKD 7,813.7 million worth of buybacks), Link Reit (823 HK) (HKD 3,933.6 million worth of buybacks), Xiaomi Corporation (1810 HK) (HKD 2,914.3 million worth of buybacks).

Hong Kong Exchange publishes share repurchases by listed companies on a daily basis. In our weekly note, we will provide statistics on top repurchases over one week, one month, one quarter and one year periods.In the past 7 days, the top 3 companies that repurchased the most shares from the market were Link REIT (823 HK) (HKD 101.5 million worth of buybacks), Fosun International (656 HK) (HKD 52.8 million worth of buybacks), Sparkle Roll (970 HK) (HKD 5.1 million worth of buybacks). There were 10 companies that repurchased shares in the market. These repurchases amounted to HKD 170.3 million.In the past 30 days, the top 3 companies that repurchased the most shares from the market were Link Reit (823 HK) (HKD 628.8 million worth of buybacks), Fosun International Limited (656 HK) (HKD 130.9 million worth of buybacks), China Medical System (867 HK) (HKD 98.2 million worth of buybacks). In the past 90 days, the top 3 companies that repurchased the most shares from the market were Link REIT (823 HK) (HKD 2,796.0 million worth of buybacks), Xiaomi Corp (1810 HK) (HKD 389.5 million worth of buybacks), Fosun International Limited (656 HK) (HKD 177.2 million worth of buybacks). In the past 365 days, the top 3 companies that repurchased the most shares from the market were HSBC Holdings (5 HK) (HKD 7,813.7 million worth of buybacks), Link Reit (823 HK) (HKD 3,933.6 million worth of buybacks), Xiaomi Corporation (1810 HK) (HKD 2,914.3 million worth of buybacks). 

Hong Kong Buyback Weekly: Link Reit, Fosun Intl, Sparkle Roll

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Event-Driven

Three months ago, on September 15th, China's largest publicly-traded automobile dealer <a href="https://www.smartkarma.com/entities/17171" target="_blank" data-smartkarma-citation="entities:17171">China Grand Automotive Services Co Ltd</a> (hereafter "China Grand" or CGAS") <a href="http://www.hkexnews.hk/listedco/listconews/SEHK/2015/0915/LTN20150915457.pdf" target="_blank">announced</a> it was in preliminary talks to acquire <a href="https://www.smartkarma.com/entities/20829" target="_blank" data-smartkarma-citation="entities:20829">Baoxin Auto Group Ltd</a>  - China's largest distributor of BMW vehicles.Baoxin shares popped 36% the day after the announcement to HK$3.58/share. The stock could not keep those gains as it did not close for three consecutive days above that price until Friday Dec 4th, and that was only because on Wednesday the stock jumped 10.8% to $3.60/share on 3x the previous day's volume on news, then it jumped 15.5% on 5+x normal volume the next day. That will undoubtedly raise some flags, but one could easily say that until Dec3, "the market" was reasonably skeptical of a deal actually being done at a price favorable to Baoxin minorities. Baoxin shares were suspended Dec7 and on Dec9 a substantial shareholder <a href="http://sdinotice.hkex.com.hk/di/NSForm2.aspx?fn=286782&amp;sa2=ns&amp;sid=50000685&amp;corpn=Baoxin+Auto+Group+Ltd.&amp;sd=15%2f12%2f2014&amp;ed=04%2f12%2f2015&amp;sa1=cl&amp;scsd=11%2f12%2f2014&amp;sced=11%2f12%2f2015&amp;sc=1293&amp;src=MAIN&amp;lang=EN&amp;" target="_blank">filing</a> on the HKEx showed that China Grand had purchased 53.58% of Baoxin at HKD 5.99/share. <a href="https://www.smartkarma.com/profiles/11" target="_blank" data-smartkarma-citation="accounts:11">Crispin</a> wrote <a href="https://www.smartkarma.com/insights/baoxin-auto-group-mandatory-offer-to-kick-in" target="_blank" data-smartkarma-citation="insights:2101">a piece</a> noting a Mandatory Offer would kick in - as was the obvious conclusion. But it appears that filing was "hasty" or people got their wires crossed, and yesterday, the official <a href="http://www.hkexnews.hk/listedco/listconews/SEHK/2015/1211/LTN20151211945.pdf" target="_blank">Joint Announcement</a> of a deal was posted on the HKEx website. The deal is that CGAS will buy 75% of Baoxin and that Mr. Yang Aihua, Baoxin Investment and Auspicious Splendid had entered into an Irrevocable Undertaking agreement to accept the Offer. CGAS also released an English translation of a <a href="http://www.hkexnews.hk/listedco/listconews/SEHK/2015/1211/LTN201512111043.pdf" target="_blank">Major Asset Restructuring Report</a>.This deal looks pretty simple on the face of it, but for those who did the work on the China Resources Enterprise (now <a href="https://www.smartkarma.com/entities/399" target="_blank" data-smartkarma-citation="entities:399">China Resources Beer Holdings</a>) deal this past spring/summer/fall as to timing and deal-implied leverage, you'll see the similarities. That trade, if you looked at it the way we did here at Smartkarma, was REALLY interesting and profitable. If you liked Smartkarma's work on the CRE situation, we've got lots more below the fold.Including Arb Grids.

Three months ago, on September 15th, China's largest publicly-traded automobile dealer China Grand Automotive Services Co Ltd (hereafter "China Grand" or CGAS") announced it was in preliminary talks to acquire Baoxin Auto Group Ltd  - China's largest distributor of BMW vehicles.Baoxin shares popped 36% the day after the announcement to HK$3.58/share. The stock could not keep those gains as it did not close for three consecutive days above that price until Friday Dec 4th, and that was only because on Wednesday the stock jumped 10.8% to $3.60/share on 3x the previous day's volume on news, then it jumped 15.5% on 5+x normal volume the next day. That will undoubtedly raise some flags, but one could easily say that until Dec3, "the market" was reasonably skeptical of a deal actually being done at a price favorable to Baoxin minorities. Baoxin shares were suspended Dec7 and on Dec9 a substantial shareholder filing on the HKEx showed that China Grand had purchased 53.58% of Baoxin at HKD 5.99/share. Crispin wrote a piece noting a Mandatory Offer would kick in - as was the obvious conclusion. But it appears that filing was "hasty" or people got their wires crossed, and yesterday, the official Joint Announcement of a deal was posted on the HKEx website. The deal is that CGAS will buy 75% of Baoxin and that Mr. Yang Aihua, Baoxin Investment and Auspicious Splendid had entered into an Irrevocable Undertaking agreement to accept the Offer. CGAS also released an English translation of a Major Asset Restructuring Report.This deal looks pretty simple on the face of it, but for those who did the work on the China Resources Enterprise (now China Resources Beer Holdings) deal this past spring/summer/fall as to timing and deal-implied leverage, you'll see the similarities. That trade, if you looked at it the way we did here at Smartkarma, was REALLY interesting and profitable. If you liked Smartkarma's work on the CRE situation, we've got lots more below the fold.Including Arb Grids.

Baoxin: CGAS Partial Offer Promises Interesting Future - And Arb Grids

Hong Kong

New Sparkle Roll International Group Limited operates as luxury goods dealerships. The Company wholesales brand automobiles, branded watches, jewelry, and wines. New Sparkle Roll International Group conducts businesses in Hong kong.

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New Sparkle Roll (970 HK)

Hong Kong Buyback Weekly: Link Reit, Fosun Intl, Sparkle Roll

Hong Kong Exchange publishes share repurchases by listed companies on a daily basis. In our weekly note, we will provide statistics on top...

Ke Yan, CFA, FRM

Baoxin: CGAS Partial Offer Promises Interesting Future - And Arb Grids

Three months ago, on September 15th, China's largest publicly-traded automobile dealer China Grand Automotive Services Co Ltd (hereafter "China...

Travis Lundy

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52-week Range

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