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>The stock price declined to a very low level before the market fell.</li>
<li>The Chinese e-commerce market is still promising despite of the high comparison base last year.</li>
<li>We believe the stock has an upside of 68% for March 2023.</li>
</ul>


The stock price declined to a very low level before the market fell.
The Chinese e-commerce market is still promising despite of the high comparison base last year.
We believe the stock has an upside of 68% for March 2023.


Alibaba (BABA): Overly Impacted, Accumulate Before 3Q22 Result

China and US Equity Analyst

Roger Xie

<ul>
<li>News reported that Alibaba is in talks with Shanghai Media Group to sell its 30% stake in <a href="https://www.smartkarma.com/entities/weibo-corp-adr" target="_blank" data-smartkarma-citation="entities:3826:1" rel="noopener">Weibo Corp (WB US)</a>, which we have expected since Weibo's Hong Kong listing.</li>
<li>Since 2013, Alibaba has started to invest in Weibo before its NASDAQ IPO and continued to increase the holdings. Alibaba remains a strategic partner with Weibo on platform advertisement.</li>
<li>We view the potential transaction net positive for <a href="https://www.smartkarma.com/entities/weibo-corp-adr" target="_blank" data-smartkarma-citation="entities:3826:1" rel="noopener">Weibo Corp (WB US)</a> as it will realign Weibo strategic direction and Alibaba impact will be minimized. Weibo valuation is also attractive.</li>
</ul>


News reported that Alibaba is in talks with Shanghai Media Group to sell its 30% stake in Weibo Corp (WB US), which we have expected since Weibo's Hong Kong listing.
Since 2013, Alibaba has started to invest in Weibo before its NASDAQ IPO and continued to increase the holdings. Alibaba remains a strategic partner with Weibo on platform advertisement.
We view the potential transaction net positive for Weibo Corp (WB US) as it will realign Weibo strategic direction and Alibaba impact will be minimized. Weibo valuation is also attractive.


Weibo (WB US): Alibaba Potential Stake Sale, More Visibility on Strategic Direction

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Equity Capital Markets

LG Energy Solution / Equity Capital Markets

<ul>
<li>Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.</li>
<li>
<a href="https://www.smartkarma.com/entities/lg-energy-solution" target="_blank" data-smartkarma-citation="entities:33464:1" rel="noopener">LG Energy Solution (LGENERGY KS)</a> started book building for its mega US$10bn+ IPO</li>
<li>Placements too got off to a large, if not strong, start with <a href="https://www.smartkarma.com/entities/sea-ltd" target="_blank" data-smartkarma-citation="entities:8509:1" rel="noopener">Sea Ltd (SE US)</a> and <a href="https://www.smartkarma.com/entities/nippon-paint-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:7387:1" rel="noopener">Nippon Paint Holdings (4612 JP)</a> US$1bn+ deals. </li>
</ul>


Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.

LG Energy Solution (LGENERGY KS) started book building for its mega US$10bn+ IPO
Placements too got off to a large, if not strong, start with Sea Ltd (SE US) and Nippon Paint Holdings (4612 JP) US$1bn+ deals. 


ECM Weekly (9th Jan 2022) - LG Energy, Hyundai Engineering, JL Mag, 2022 Pipeline, 2021 Performance

Asymchem Laboratories Tianjin / Equity Capital Markets

<ul>
<li>Asymchem Laboratories raised around US$1.05bn in its H-share listing in Hong Kong.</li>
<li>AL is a provider of outsourced pharmaceutical development and manufacturing solutions and services. </li>
<li>In this note, we will talk about the subscription levels and trading dynamics.</li>
</ul>


Asymchem Laboratories raised around US$1.05bn in its H-share listing in Hong Kong.
AL is a provider of outsourced pharmaceutical development and manufacturing solutions and services. 
In this note, we will talk about the subscription levels and trading dynamics.


Asymchem Labs A/H Trading - Moderate Demand and Upside

<ul>
<li>
<a href="https://www.smartkarma.com/entities/weibo-corp-adr" target="_blank" data-smartkarma-citation="entities:3826:1" rel="noopener">Weibo Corp (WB US)</a> announced its Hong Kong offering price at HK$ 272.80 per share, roughly in-line with current trading price of US-listed ADR but lower than initial expectation.</li>
<li>The lukewarm interest from investors underscores the regulatory headwind around one of China largest social media platform, which is unprecedented in our view.</li>
<li>We want to reiterate our bullish view on Weibo, who has amassed 521 million monthly active users. <a href="https://www.smartkarma.com/entities/weibo-corp-adr" target="_blank" data-smartkarma-citation="entities:3826:1" rel="noopener">Weibo Corp (WB US)</a> is traded at forward 15x consensus P/E.</li>
</ul>



Weibo Corp (WB US) announced its Hong Kong offering price at HK$ 272.80 per share, roughly in-line with current trading price of US-listed ADR but lower than initial expectation.
The lukewarm interest from investors underscores the regulatory headwind around one of China largest social media platform, which is unprecedented in our view.
We want to reiterate our bullish view on Weibo, who has amassed 521 million monthly active users. Weibo Corp (WB US) is traded at forward 15x consensus P/E.


Weibo (WB US): Lukewarm Interest for HK Listing, but Good Setup for Long-Term Growth

China

Weibo Corp is a social media platform for people to create, distribute and discover Chinese-language content.  The Company offers users public self-expression in real time with a powerful platform for social interaction, as well as content aggregation and distribution.

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Weibo Corp (WB US)

Alibaba (BABA): Overly Impacted, Accumulate Before 3Q22 Result

The stock price declined before the indexes. The Chinese e-commerce market is still promising. We believe the stock will have an upside of 68%.

Ming Lu

Weibo (WB US): Alibaba Potential Stake Sale, More Visibility on Strategic Direction

We view the potential stake sale transaction net positive for Weibo Corp (WB US) as it will realign Weibo strategic direction and Alibaba impact...

Roger Xie

ECM Weekly (9th Jan 2022) - LG Energy, Hyundai Engineering, JL Mag, 2022 Pipeline, 2021 Performance

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.

Sumeet Singh

Asymchem Labs A/H Trading - Moderate Demand and Upside

Asymchem Laboratories raised around US$1.05bn in its H-share listing in Hong Kong. In this note, we talk about the trading dynamics.

Sumeet Singh

Weibo (WB US): Lukewarm Interest for HK Listing, but Good Setup for Long-Term Growth

We become more bullish on Weibo (WB US) with valuation at forward 15x consensus P/E, though there is lukewarm interest for its Hong Kong public...

Roger Xie

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