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 Capital Markets

<ul>
<li>The company mainly sells its products online and spends much of its advertising budget online.</li>
<li>The rice market is fragmented and there are two main competitors, Arawana and Fortune.</li>
<li>We believe the company’s dry food can use the reputation of its rice to boost sales.</li>
</ul>


The company mainly sells its products online and spends much of its advertising budget online.
The rice market is fragmented and there are two main competitors, Arawana and Fortune.
We believe the company’s dry food can use the reputation of its rice to boost sales.


Shiyue Daotian (十月稻田) Pre-IPO: Aggressive Brands - A Local Viewpoint

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<strong><a href="https://www.smartkarma.com/entities/adani-wilmar" target="_blank" data-smartkarma-citation="entities:34763:1" rel="noopener">Adani Wilmar (AWLTD IN)</a></strong> is up ~70% since its listing two days ago. </li>
<li>
<a href="https://www.smartkarma.com/entities/wilmar-international-ltd" target="_blank" data-smartkarma-citation="entities:172:1" rel="noopener"><strong>Wilmar International (WIL SP)</strong></a>'s shares remain largely unchanged since Adani Wilma's IPO was officially floated. </li>
<li>90%-Held <strong><a href="https://www.smartkarma.com/entities/yihai-kerry-arawana-holdings-co-ltd-8e397b7b-30b8-4284-afc1-e1dc799b2e5c" target="_blank" data-smartkarma-citation="entities:33230:1" rel="noopener">Yihai Kerry Arawana Holdings (300999 CH)</a></strong> is down 52% in the past year, but trading in line with its average forward multiples since listing. </li>
</ul>



Adani Wilmar (AWLTD IN) is up ~70% since its listing two days ago. 

Wilmar International (WIL SP)'s shares remain largely unchanged since Adani Wilma's IPO was officially floated. 
90%-Held Yihai Kerry Arawana Holdings (300999 CH) is down 52% in the past year, but trading in line with its average forward multiples since listing. 


Wilmar Largely Unchanged As Wilmar Adani's IPO Surges

Equity Bottom-Up

<ul>
<li>
<strong><a href="https://www.smartkarma.com/entities/wilmar-international-ltd" target="_blank" data-smartkarma-citation="entities:172:1" rel="noopener">Wilmar International (WIL SP)</a></strong> is coming up "expensive" on my stub monitor, yet still trades at a material 65% discount to NAV. </li>
<li>Preceding my comments on Wilmar are the weekly setup/unwind tables for Asia-Pacific Holdcos.</li>
<li>These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold of at least 20%.</li>
</ul>



Wilmar International (WIL SP) is coming up "expensive" on my stub monitor, yet still trades at a material 65% discount to NAV. 
Preceding my comments on Wilmar are the weekly setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold of at least 20%.


StubWorld: Wilmar Gains Ahead Of Adani Wilmar IPO

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Contemporary Amperex Technology (CATL) / Event-Driven

<ul>
<li>There are 28 changes for the <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-index" target="_blank" data-smartkarma-citation="entities:22906:1" rel="noopener">Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX)</a> at the upcoming rebalance that will be implemented at the close of trading on 10 December.</li>
<li>The inclusion of ChiNext stocks with 1 year of listing history (down from 3 years) and the inclusion of other large stocks results in a one-way turnover greater than 10%.</li>
<li>There are 10 trading days to implementation and we expect the inclusions to outperform the market. A long inclusion basket can be hedged with CSI300 index futures.</li>
</ul>


There are 28 changes for the Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX) at the upcoming rebalance that will be implemented at the close of trading on 10 December.
The inclusion of ChiNext stocks with 1 year of listing history (down from 3 years) and the inclusion of other large stocks results in a one-way turnover greater than 10%.
There are 10 trading days to implementation and we expect the inclusions to outperform the market. A long inclusion basket can be hedged with CSI300 index futures.


CSI300 Index Rebalance: Methodology Tweak Results in More Changes & Larger Turnover

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<p>This week in StubWorld ...</p>
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<p>I see <a href="https://www.smartkarma.com/entities/wilmar-international-ltd" target="_blank" data-smartkarma-citation="entities:172:1" rel="noopener">Wilmar International (WIL SP)</a>'s discount to NAV at 69%. The ~90% holding into <a href="https://www.smartkarma.com/entities/yihai-kerry-arawana-holdings-co-ltd-8e397b7b-30b8-4284-afc1-e1dc799b2e5c" target="_blank" data-smartkarma-citation="entities:33230:1" rel="noopener">Yihai Kerry Arawana Holdings (300999 CH)</a> accounts for a staggering 300% of Wilmar's market cap.</p>
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<p>Preceding my comments on Wilmar are the weekly setup/unwind tables for Asia-Pacific Holdcos.</p>
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<p>These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent - of at least 20%.</p>
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This week in StubWorld ...




I see Wilmar International (WIL SP)'s discount to NAV at 69%. The ~90% holding into Yihai Kerry Arawana Holdings (300999 CH) accounts for a staggering 300% of Wilmar's market cap.




Preceding my comments on Wilmar are the weekly setup/unwind tables for Asia-Pacific Holdcos.



These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent - of at least 20%.


StubWorld: Wilmar's Stake In Yihai Kerry At 300% Of Market Cap

China

Yihai Kerry Arawana Holdings Co., Ltd wholesales and distributes food products. The Company provides kitchen foods, feed raw materials, oil technology products, and other products. Yihai Kerry Arawana Holdings also operates investment businesses.

Yihai Kerry Arawana Holdings C (300999 CH)

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Yihai Kerry Arawana Holdings C (300999 CH)

Shiyue Daotian (十月稻田) Pre-IPO: Aggressive Brands - A Local Viewpoint

The company mainly sells its products online and spends much of its advertising budget online. The rice market is fragmented and there are two main...

Ming Lu

Wilmar Largely Unchanged As Wilmar Adani's IPO Surges

Wilmar is relatively inexpensive, even taking into account its cross-border, possibly-difficult-to-short subsidiary. Management's average buyback...

David Blennerhassett

StubWorld: Wilmar Gains Ahead Of Adani Wilmar IPO

I'd buy Wilmar here. Management's average buyback price since April is $4.44/share. I see a more realistic discount of ~50% - where it traded on...

David Blennerhassett

CSI300 Index Rebalance: Methodology Tweak Results in More Changes & Larger Turnover

There are 28 changes to the CSI300 index at the Dec rebalance. A few large inclusions plus the expansion of the index universe pushes one-way...

Brian Freitas

StubWorld: Wilmar's Stake In Yihai Kerry At 300% Of Market Cap

I'd buy Wilmar here. Management's average buyback price of $5.08/share. YKA accounting for 3x Wilmar's market cap is unstatanble. I see a more...

David Blennerhassett

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