In today’s briefing:
- Alibaba (9988 HK/BABA): Possible Softbank Sale and Passive Impact
- StubWorld: Unicom’s “Hs” Are Cheap
- GOGOX IPO Initiation: A Less than Perfect Delivery
- Lepu Biopharma IPO: PHIP Updates
- China Three Gorges Renewables (600905 CH): Good, and Better Is Coming
- Allianz’s 3.875% Perp Drops 5 Points After Skipped Call
- Macro; Rating Changes; New Issues; Talking Heads; Top Gainers and Losers
Alibaba (9988 HK/BABA): Possible Softbank Sale and Passive Impact
- Alibaba Group (9988 HK) has filed a F-6EF Registration Statement to register an additional 1bn ADS. This will most likely be Softbank Group selling part (or all) of the stake.
- There is a possibility that Softbank Group (9984 JP) is looking to use the stock as collateral for a financing trade and moving their holdings to a more liquid market.
- If Softbank Group (9984 JP) sells some of their shares, there will be buying from MSCI and FTSE trackers. There will be minimal buying from HSI, HSCEI and HSTECH trackers.
StubWorld: Unicom’s “Hs” Are Cheap
- Despite the recent share price gain, China Unicom (762 HK) is inexpensive with respect to parent China United Network (600050 CH) – its pseudo domestic A-share twin – and to peers.
- Preceding my comments on Unicom, are the current setup/unwind tables for Asia-Pacific Holdcos.
- These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.
GOGOX IPO Initiation: A Less than Perfect Delivery
- GoGoX Holdings (GOGO HK) is a major online intra-city logistics platform in Asia. It is pre-marketing an HKEx IPO to raise US$200 million, according to press reports.
- The fundamentals are unattractive as intensifying competition is pressuring growth, increasing losses and spurring cash burn.
- As the losses and cash burn is expected to persist over the next three years, we would give the IPO a pass.
Lepu Biopharma IPO: PHIP Updates
- Lepu Biopharma (LBP HK) is a biopharmaceutical company focusing on oncology therapeutics. The company has filed for an IPO to list on the Hong Kong Stock Exchange.
- Lepu has the leading ADC candidate pipeline in China, in terms of number of clinical-stage ADC drug candidates. In our previous insight, we discussed the company’s business, products and outlook.
- In this follow-up insight, we have highlighted and discussed some of the key new data points from the company’s Post Hearing Information Pack (PHIP).
China Three Gorges Renewables (600905 CH): Good, and Better Is Coming
- China Three Gorges Renewables (600905 CH) (CTGR) has an splendid FY21 as it pre-announced result with a range of 46.5-53.1% growth in recurring profit, fuelled by generation and disposal gains.
- The first full-year contribution of many projects commissioned in 4Q21, which boosted a 28.4% QoQ surge in power generation, should underpin FY22 earnings – consensus forecast is expecting 41% growth.
- YTD, CTGR’s share price performed in line with Shanghai Composite Index (-6.1%), but its strong EPS CAGR of 22% for FY21-23 provides room for it to outperformed in medium term.
Allianz’s 3.875% Perp Drops 5 Points After Skipped Call
Macro; Rating Changes; New Issues; Talking Heads; Top Gainers and Losers
Before it’s here, it’s on Smartkarma