Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

An inquisitive investment analyst with background in both finance and computing. Covering ECM research, biotech, market data analytics.

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.

Equity Bottom-Up

Yonghui Superstores Co., / Equity Bottom-Up

<p>In this note, we are looking at the China supermarket/hypermarket pair between <a href="https://www.smartkarma.com/entities/yonghui-superstores-co-ltd" target="_blank" data-smartkarma-citation="entities:15910:1" rel="noopener">Yonghui Superstores Co., (601933 CH)</a> and <a href="https://www.smartkarma.com/entities/sun-art-retail-group-ltd" target="_blank" data-smartkarma-citation="entities:401:1" rel="noopener">Sun Art Retail (6808 HK)</a>. While both companies are leading grocery retailers in China, we believe that Yonghui has a more solid business fundamental and wider moat of business. In the meantime, Sun Art's working relationship with Alibaba has been overpriced. We think Yonghui has a better growth prospect than Sun Art and should trade at a premium to Sun Art.</p><p>We believe Sun Art's outperformance over Yonghui is not sustainable and should mean revert. We recommend a Long Yonghui/Sell Sun Art trade with an expected profit of 30% in the next 12 months. </p>

In this note, we are looking at the China supermarket/hypermarket pair between Yonghui Superstores Co., (601933 CH) and Sun Art Retail (6808 HK). While both companies are leading grocery retailers in China, we believe that Yonghui has a more solid business fundamental and wider moat of business. In the meantime, Sun Art's working relationship with Alibaba has been overpriced. We think Yonghui has a better growth prospect than Sun Art and should trade at a premium to Sun Art.We believe Sun Art's outperformance over Yonghui is not sustainable and should mean revert. We recommend a Long Yonghui/Sell Sun Art trade with an expected profit of 30% in the next 12 months. 

Long Yonghui/Sell Sun Art: Sun Art's Overpriced for the Alibaba Ecosystem