IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

Haitong Unitrust International Financial Leasing / Event-Driven

Haitong Unitrust International Financial Leasing operates as a financial leasing company in the People's Republic of China, offering services such as operating leasing, commercial factoring, entrusted loans, and advisory services. The company also provides commercial and vehicle financing, aircraft leasing, and engages in PPP project management businesses. It was incorporated in 2004 and is headquartered in Shanghai, People's Republic of China.

Haitong Unitrust International Financial Leasing (1905 HK)

Haitong Unitrust International Financial Leasing

<ul>
<li>
<a href="https://www.smartkarma.com/entities/haitong-unitrust-international-financial-leasing-co-ltd-class-h" target="_blank" data-smartkarma-citation="entities:28044:1" rel="noopener">Haitong Unitrust International Financial Leasing (1905 HK)</a> halted trading on 5 October pending a takeover announcement. Its parent, Guotai Haitong Securities, owns 85% and will likely take it private.</li>
<li>A merger by absorption looks low-risk because no holder has a blocking stake and opposition at the AGM was negligible. A voluntary/delisting offer would face a tougher 90% acceptance hurdle.</li>
<li>My valuation methods point to an offer of HK$1.29–1.65 per share, a 7.5%–37.5% premium to the HK$1.20 close. </li>
</ul>



Haitong Unitrust International Financial Leasing (1905 HK) halted trading on 5 October pending a takeover announcement. Its parent, Guotai Haitong Securities, owns 85% and will likely take it private.
A merger by absorption looks low-risk because no holder has a blocking stake and opposition at the AGM was negligible. A voluntary/delisting offer would face a tougher 90% acceptance hurdle.
My valuation methods point to an offer of HK$1.29–1.65 per share, a 7.5%–37.5% premium to the HK$1.20 close. 


Haitong Unitrust (1905 HK): Trading Halt Points to a Likely Privatisation by the Parent

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>PRC-Focused financial leasing play <a href="https://www.smartkarma.com/entities/haitong-unitrust-international-financial-leasing-co-ltd-class-h" target="_blank" data-smartkarma-citation="entities:28044:1" rel="noopener">Haitong Unitrust International Financial Leasing (1905 HK)</a>  (HUIFL) is suspended pursuant to Hong Kong Code on Takeovers and Mergers. </li>
<li>Expect a privatisation Offer from <a href="https://www.smartkarma.com/entities/guotai-haitong-securities-co-ltd-class-h" target="_blank" data-smartkarma-citation="entities:23752:1" rel="noopener">Guotai Haitong Securities (2611 HK)</a>, currently holding an 85% stake. Guotai Haitong is presently in the midst of taking <a href="https://www.smartkarma.com/entities/guotai-junan-international-holdings-limited" target="_blank" data-smartkarma-citation="entities:13438:1" rel="noopener">Guotai Junan International (1788 HK)</a> private.</li>
<li>As HUIFL is PRC-incorporated, this Offer may be structured as a Merger by Absorption, involving a Scheme-like vote for independent H-shareholders. There may, or may not be, a tendering condition.</li>
</ul>


PRC-Focused financial leasing play Haitong Unitrust International Financial Leasing (1905 HK)  (HUIFL) is suspended pursuant to Hong Kong Code on Takeovers and Mergers. 
Expect a privatisation Offer from Guotai Haitong Securities (2611 HK), currently holding an 85% stake. Guotai Haitong is presently in the midst of taking Guotai Junan International (1788 HK) private.
As HUIFL is PRC-incorporated, this Offer may be structured as a Merger by Absorption, involving a Scheme-like vote for independent H-shareholders. There may, or may not be, a tendering condition.


Haitong Unitrust (1905 HK) Halted: Guotai Haitong Takeover Expected

Zheneng Jinjiang Environment / Event-Driven

Zheneng Jinjiang Environment is a leading waste-to-energy (WTE) operator that provides recycling services, including the generation and sale of electricity and steam from municipal solid waste. The company also offers project management, technical consulting, and energy management contracting services. It is headquartered in Hangzhou, China, and was founded in 1998.

<ul>
<li>Jieneng Investment’s offer for <a href="https://www.smartkarma.com/entities/zheneng-jinjiang-environment-holding-co-ltd" target="_blank" data-smartkarma-citation="entities:22847:1" rel="noopener">Zheneng Jinjiang Environment (ZJE SP)</a> is at S$0.70 a share, a 19.7% premium to the undisturbed price. Two potential S$0.0225 dividends take the total to S$0.7225–S$0.745.</li>
<li>The Chinese regulatory approvals look low-risk because the buyers are SOEs, a precedent (Canvest) got the same approvals, and waste-to-energy is a favoured sector. The main risk is timing.</li>
<li>Holders of 83% of disinterested shares have given irrevocables, above the 75% needed. The shares have not closed above S$0.70 for over 5.5 years. This is a done deal.</li>
</ul>


Jieneng Investment’s offer for Zheneng Jinjiang Environment (ZJE SP) is at S$0.70 a share, a 19.7% premium to the undisturbed price. Two potential S$0.0225 dividends take the total to S$0.7225–S$0.745.
The Chinese regulatory approvals look low-risk because the buyers are SOEs, a precedent (Canvest) got the same approvals, and waste-to-energy is a favoured sector. The main risk is timing.
Holders of 83% of disinterested shares have given irrevocables, above the 75% needed. The shares have not closed above S$0.70 for over 5.5 years. This is a done deal.


Zheneng Jinjiang Environment (ZJE SP): SOE-Backed Privatisation Looks Near-Certain to Complete

Goodbaby International Holdings Ltd. is a world-leading company specializing in the design, research, development, manufacturing, marketing, and sales of durable juvenile products. Its key offerings include children's car safety seats, strollers, cribs, and other baby products. The company was founded in 1989 and is headquartered in Kunshan, China.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/goodbaby-international-holdings-ltd" target="_blank" data-smartkarma-citation="entities:9467:1" rel="noopener">Goodbaby International (1086 HK)</a> disclosed a scheme offer from Mr Song Zhenghuan (Chairman and founder) at HK$1.50, a 38.9% premium to the undisturbed price. The offer is final. </li>
<li>The offer looks light next to peers, at 0.38x book and 2.0x EV/EBITDA against an 11.4x peer median. However, the offer looks fair compared to historical trading ranges.</li>
<li>The vote is low risk, as no independent holder holds a blocking stake. The last AGM showed little opposition, and thin trading makes it hard to build an activist stake.</li>
</ul>



Goodbaby International (1086 HK) disclosed a scheme offer from Mr Song Zhenghuan (Chairman and founder) at HK$1.50, a 38.9% premium to the undisturbed price. The offer is final. 
The offer looks light next to peers, at 0.38x book and 2.0x EV/EBITDA against an 11.4x peer median. However, the offer looks fair compared to historical trading ranges.
The vote is low risk, as no independent holder holds a blocking stake. The last AGM showed little opposition, and thin trading makes it hard to build an activist stake.


Goodbaby (1086 HK): Chairman’s Light Privatisation Offer Likely to Pass

HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

ENN Energy is a major clean energy distributor in China, primarily engaged in the investment, construction, operation, and management of gas pipeline infrastructure, as well as the sales and distribution of piped gas, liquefied natural gas (LNG), and other multi-energy products. The company also provides low-carbon integrated energy solutions and smart home services. It was founded in 1992 and is headquartered in Langfang, China.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/enn-energy-holdings-limited" target="_blank" data-smartkarma-citation="entities:316:1" rel="noopener">ENN Energy (2688 HK)</a>'s 1H26 results demonstrated that, even without <a href="https://www.smartkarma.com/entities/enn-natural-gas-co-ltd" target="_blank" data-smartkarma-citation="entities:16456:1" rel="noopener">ENN Natural Gas (600803 CH)</a>'s privatisation, its fundamentals remain solid. </li>
<li>Its gross margin decline has stabilised; with cost control initiatives, the FY26 earnings will stay healthy. Upside will come from improvement in the IE and smart home segments.</li>
<li>At 7.6x PER for FY26 and FY27, it is among the cheapest in the HSI and the gas utilities sector. Its P/B is now over 1SD below average. </li>
</ul>



ENN Energy (2688 HK)'s 1H26 results demonstrated that, even without ENN Natural Gas (600803 CH)'s privatisation, its fundamentals remain solid. 
Its gross margin decline has stabilised; with cost control initiatives, the FY26 earnings will stay healthy. Upside will come from improvement in the IE and smart home segments.
At 7.6x PER for FY26 and FY27, it is among the cheapest in the HSI and the gas utilities sector. Its P/B is now over 1SD below average. 


ENN Energy (2688 HK): Things Are Not That Bad Without the Privatisation