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

In our Discover SZ/SH Connect series, we aim to help our investors understand the flow of northbound trades via the Shanghai Connect and Shenzhen Connect, as analyzed by our proprietary data engine. We will discuss the stocks that experienced the most inflow and outflow by offshore investors in the past seven days.We split the stocks eligible for the northbound trade into three groups: those with a market capitalization of above USD 5 billion, and those with a market capitalization between USD 1 billion and USD 5 billion.We note that offshore investors were buying all GICS sectors, and had a strong preference for Consumer Staples, Financials and Consumer Discretionary names. We estimate that total inflow into A-share market via northbound trade amounted to USD 8.5 bn in January.Stocks with strong inflows (by quantum) were <a href="https://www.smartkarma.com/entities/1553" target="_blank" data-smartkarma-citation="entities:1553:1">Kweichow Moutai Co Ltd A (600519 CH)</a>, <a href="https://www.smartkarma.com/entities/7622" target="_blank" data-smartkarma-citation="entities:7622:1">Gree Electric Appliances Inc Of Zhuhai (000651 CH)</a>, and <a href="https://www.smartkarma.com/entities/16185" target="_blank" data-smartkarma-citation="entities:16185:1">Midea Group Co Ltd A (000333 CH)</a>. Please read this note together with <a href="https://www.smartkarma.com/insights/discover-sz-sh-connect-foreigners-were-buying-industries-and-financials-in-december" target="_blank">our coverage for December flow</a> and our coverage for <a href="https://www.smartkarma.com/insights/hk-connect-discovery-january-snapshot" target="_blank">January northbound flow</a>.

In our Discover SZ/SH Connect series, we aim to help our investors understand the flow of northbound trades via the Shanghai Connect and Shenzhen Connect, as analyzed by our proprietary data engine. We will discuss the stocks that experienced the most inflow and outflow by offshore investors in the past seven days.We split the stocks eligible for the northbound trade into three groups: those with a market capitalization of above USD 5 billion, and those with a market capitalization between USD 1 billion and USD 5 billion.We note that offshore investors were buying all GICS sectors, and had a strong preference for Consumer Staples, Financials and Consumer Discretionary names. We estimate that total inflow into A-share market via northbound trade amounted to USD 8.5 bn in January.Stocks with strong inflows (by quantum) were Kweichow Moutai Co Ltd A (600519 CH), Gree Electric Appliances Inc Of Zhuhai (000651 CH), and Midea Group Co Ltd A (000333 CH). Please read this note together with our coverage for December flow and our coverage for January northbound flow. 

Shanghai/Shenzhen Connect - $8.5 Bn of Inflow in January (Kweichow Moutai, Gree, Midea)

Making sense of the Global Market, Euromonitor International Ltd.

Yu Mitsuhashi

Making sense of the Global Market

Euromonitor International Ltd.

We are a global market research company focused on industries, countries, economies and consumers worldwide. Our cross-country comparable research helps your organisation identify opportunities and develop growth strategies in countries and regions across the globe. With offices around the world, 1,200 analysts in 100 countries and market research on every key trend and driver, we give you powerful access to the real story behind consumer change.

Macroeconomics

<ul class=""><li>Asia will remain the key driver for consumer industries, however the region’s significance varies by industry. Consumer electronics and personal accessories will see close to 100% of absolute value growth coming from the region, while some of the more saturated industries such as tobacco, soft and hot drinks will see 20-40% of growth coming from Asia. In between, there are industries such as beauty, apparel and packaged food, all of which will derive around 50% of future growth from Asia.</li><li>Asia Pacific will account for 30% of global packaged food value by 2022 thanks to above 20% absolute growth in key categories such as baked goods, edible oils and dairy. This rapid growth offers significant opportunities for packaged food players, as levels of consumption for many categories are still far below Western standards.</li><li>52% of global market growth of packaged food is expected to stem from Asia Pacific by 2022. Breakfast cereals, edible oils and baby food will be especially lucrative as more than 70% of global growth will come from Asia Pacific.</li><li>Indonesia is among the top five fastest growing countries in Asia Pacific for value sales of dairy, and the country’s low per capita consumption of dairy also implies a huge untapped pool of consumers. As a result, this market has attracted numerous new entrants in recent years.</li></ul>

Asia will remain the key driver for consumer industries, however the region’s significance varies by industry. Consumer electronics and personal accessories will see close to 100% of absolute value growth coming from the region, while some of the more saturated industries such as tobacco, soft and hot drinks will see 20-40% of growth coming from Asia. In between, there are industries such as beauty, apparel and packaged food, all of which will derive around 50% of future growth from Asia.Asia Pacific will account for 30% of global packaged food value by 2022 thanks to above 20% absolute growth in key categories such as baked goods, edible oils and dairy. This rapid growth offers significant opportunities for packaged food players, as levels of consumption for many categories are still far below Western standards.52% of global market growth of packaged food is expected to stem from Asia Pacific by 2022. Breakfast cereals, edible oils and baby food will be especially lucrative as more than 70% of global growth will come from Asia Pacific.Indonesia is among the top five fastest growing countries in Asia Pacific for value sales of dairy, and the country’s low per capita consumption of dairy also implies a huge untapped pool of consumers. As a result, this market has attracted numerous new entrants in recent years.

Shifting Market Frontiers: Asian Century (Asian Century Across Industries - Part 4)

China

Toly Bread Co., Ltd. manufactures and distributes baked food products. The Company produces breads, moon cakes, and other products. Toly Bread markets its products throughout China.

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Toly Bread (603866 CH)

Shanghai/Shenzhen Connect - $8.5 Bn of Inflow in January (Kweichow Moutai, Gree, Midea)

In our Discover SZ/SH Connect series, we aim to help our investors understand the flow of northbound trades via the Shanghai Connect and Shenzhen...

Ke Yan, CFA, FRM

Shifting Market Frontiers: Asian Century (Asian Century Across Industries - Part 4)

Asia will remain the key driver for consumer industries, however the region’s significance varies by industry. Consumer electronics and personal...

Euromonitor International Ltd.

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52-week Range

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