APAC IPOs & Placements, Aequitas Research

Hong Jie Seow

APAC IPOs & Placements

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

Hunan Junxin Environmental Protection / Equity Capital Markets

Hunan Junxin Environmental Protection (HJXEP HK)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hunan-junxin-environmental-protection-co-ltd" target="_blank" data-smartkarma-citation="entities:55470:1" rel="noopener">Hunan Junxin Environmental Protection (HJXEP HK)</a> , a waste treatment company, aims to raise around US$400m in its H-share listing.</li>
<li>Hunan Junxin Environmental Protection (HJEP) operates in the solid waste treatment and green energy sectors, specializing in integrated waste treatment and resource utilization projects.</li>
<li>In this note, we look at the firm's PHIP updates and valuation.</li>
</ul>



Hunan Junxin Environmental Protection (HJXEP HK) , a waste treatment company, aims to raise around US$400m in its H-share listing.
Hunan Junxin Environmental Protection (HJEP) operates in the solid waste treatment and green energy sectors, specializing in integrated waste treatment and resource utilization projects.
In this note, we look at the firm's PHIP updates and valuation.


Aequitas: Hunan Junxin A/H Listing - PHIP Update & Valuation

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hunan-junxin-environmental-protection-co-ltd" target="_blank" data-smartkarma-citation="entities:55470:1" rel="noopener">Hunan Junxin Environmental Protection (HJXEP HK)</a>, a waste treatment company, aims to raise around US$400m in its H-share listing.</li>
<li>Hunan Junxin Environmental Protection (HJEP) operates in the solid waste treatment and green energy sectors.</li>
<li>In this note, we talk about the company’s past performance.</li>
</ul>



Hunan Junxin Environmental Protection (HJXEP HK), a waste treatment company, aims to raise around US$400m in its H-share listing.
Hunan Junxin Environmental Protection (HJEP) operates in the solid waste treatment and green energy sectors.
In this note, we talk about the company’s past performance.


Aequitas: Hunan Junxin A/H Listing - Topline Growth Has Moderated, Though Margins Improved

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

China Conch Venture / Equity Capital Markets

China Conch Venture is an environmental and industrial services company specializing in waste disposal, including industrial solid, hazardous, and domestic waste treatment. It provides waste-to-energy solutions, manufactures environmental equipment and building materials, and offers port logistics services. Headquartered in Wuhu, Anhui, China, the company was founded in 2006.

<p><a href="https://www.smartkarma.com/entities/china-conch-venture-holdings-ltd" target="_blank" data-smartkarma-citation="entities:19943:1" rel="noopener">China Conch Venture Holdings (586 HK)</a> (CCV) has <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0928/2021092801185.pdf" target="_blank" rel="noopener">proposed</a> spinning-off and separately listing the shares of Conch Environment Protection (CEEP), a company principally engaged in providing industrial solid and hazardous waste treatment in the PRC. Here is the listing application form (<a href="https://www1.hkexnews.hk/app/sehk/2021/103856/documents/sehk21092801397.pdf" target="_blank" rel="noopener">Form A1</a>).</p>
<p>CEEP comprised ~17% of the unlisted revenue of CCV in FY20 and ~35% of the profit.</p>
<p>The spin-off will be implemented by way of distribution in-specie - CCV will not retain any interest in CEEP. This is a listing by introduction - no IPO proceeds are involved.</p>
<p>Assuming CEEP's listing goes ahead (no shareholder approval is required), the remaining unlisted ops comprise waste incineration projects, energy-saving equipment, and port logistics.</p>
<p>Separately, I see CCV trading at a 6% discount to its NAV, its narrowest inside a year. The implied stub has never been narrower.</p>
<p>More below the fold.</p>

China Conch Venture Holdings (586 HK) (CCV) has proposed spinning-off and separately listing the shares of Conch Environment Protection (CEEP), a company principally engaged in providing industrial solid and hazardous waste treatment in the PRC. Here is the listing application form (Form A1).
CEEP comprised ~17% of the unlisted revenue of CCV in FY20 and ~35% of the profit.
The spin-off will be implemented by way of distribution in-specie - CCV will not retain any interest in CEEP. This is a listing by introduction - no IPO proceeds are involved.
Assuming CEEP's listing goes ahead (no shareholder approval is required), the remaining unlisted ops comprise waste incineration projects, energy-saving equipment, and port logistics.
Separately, I see CCV trading at a 6% discount to its NAV, its narrowest inside a year. The implied stub has never been narrower.
More below the fold.

China Conch Venture (586 HK): Waste Treatment Spin-Off

HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

China Everbright Environment Group / Equity Bottom-Up

China Everbright Environment Group is a global leader in environmental protection, specializing in integrated environmental solutions. It is recognized as the world's largest waste-to-energy investor and operator, also providing waste management, water treatment, and renewable energy services. The company was founded in 1993 and is headquartered in Hong Kong.

China Everbright Environment Group (257 HK)

<p>We believe there will be more positive policy measures to support the waste treatment industry, especially after China's "Two Meetings" to be held in Mar and <a href="https://www.smartkarma.com/entities/china-everbright-international-limited" target="_blank" data-smartkarma-citation="entities:15946:1" rel="noopener">China Everbright Environment (257 HK)</a> (CEE) is in a good position to benefit. Although its share price has increased by 12.9% YTD, with an undemanding PER of 4.1x for FY21F, there is still more room to go.</p><p>CEE's project momentum has stayed encouraging, with over Rmb1.5bn of new waste and water treatment projects secured over the last few months. The recent grant of approval to its subsidiary <a href="https://www.smartkarma.com/entities/china-everbright-greentech-0377b31c-5401-466f-987e-9a176b05fb52" target="_blank" data-smartkarma-citation="entities:24085:1" rel="noopener">China Everbright Greentech (1257 HK)</a> to issue asset-backed notes (ABN) represents another major step towards asset securitisation. We also see CEE a prime beneficiary of public infrastructure REIT, which when issues, will both improve its valuation and capital structure.  </p>

We believe there will be more positive policy measures to support the waste treatment industry, especially after China's "Two Meetings" to be held in Mar and China Everbright Environment (257 HK) (CEE) is in a good position to benefit. Although its share price has increased by 12.9% YTD, with an undemanding PER of 4.1x for FY21F, there is still more room to go.CEE's project momentum has stayed encouraging, with over Rmb1.5bn of new waste and water treatment projects secured over the last few months. The recent grant of approval to its subsidiary China Everbright Greentech (1257 HK) to issue asset-backed notes (ABN) represents another major step towards asset securitisation. We also see CEE a prime beneficiary of public infrastructure REIT, which when issues, will both improve its valuation and capital structure.  

China Everbright Environment (257 HK): Compelling Story yet to Fully Appreciate

Smartkarma Research Team, Smartkarma

Smartkarma Research

Smartkarma Research Team

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Thematic (Sector/Industry)

<p>Our next Webinar features Insight Provider <a href="https://www.smartkarma.com/profiles/osbert-tang-cfa" target="_blank" data-smartkarma-citation="accounts:3879" rel="noopener">Osbert Tang, CFA</a>, who will discuss the outlook of China's solid waste treatment industry, as outlined in his Smartkarma Original Insight, <a href="https://www.smartkarma.com/insights/china-environment-sector-deep-dive-solid-waste-treatment" target="_blank" data-smartkarma-citation="insights:39898" rel="noopener">China Environment Sector Deep Dive: Solid Waste Treatment</a>, focusing on the impact of China's revised Solid Waste Pollution Environmental Prevention and Treatment Law on the country's major listed waste treatment companies.</p>
<h3>The webinar was hosted on Wednesday, 21/October/2020, 5.00pm SGT/HKT.<a href="https://share.hsforms.com/1H9pFZOB-RF2J00kbvMmxcw2c5gj?zoom_webinar_id=89660448094" target="_blank" rel="noopener"></a>
</h3>
<p>Watch the session here:</p>
<p><iframe src="https://www.youtube.com/embed/dtYP63fpEEU" width="560" height="315" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="allowfullscreen"></iframe></p>
<p>Or subscribe to listen on the go:</p>
<p><iframe src="https://open.spotify.com/embed-podcast/episode/2M9lZGkoYbULkNJkmhTMKZ" width="100%" height="232" frameborder="0" allowtransparency="true" allow="encrypted-media"></iframe></p>
<p>Osbert Tang is an equity analyst with over 20 years of experience, focusing on China transport, infrastructure, industrials, and utilities. He has been based in Shanghai since 2003, accumulated more than 15 years of on-ground knowledge on the Chinese economy and financial markets, and has a wealth of contacts with China corporates and government entities.</p>

Our next Webinar features Insight Provider Osbert Tang, CFA, who will discuss the outlook of China's solid waste treatment industry, as outlined in his Smartkarma Original Insight, China Environment Sector Deep Dive: Solid Waste Treatment, focusing on the impact of China's revised Solid Waste Pollution Environmental Prevention and Treatment Law on the country's major listed waste treatment companies.
The webinar was hosted on Wednesday, 21/October/2020, 5.00pm SGT/HKT.

Watch the session here:

Or subscribe to listen on the go:

Osbert Tang is an equity analyst with over 20 years of experience, focusing on China transport, infrastructure, industrials, and utilities. He has been based in Shanghai since 2003, accumulated more than 15 years of on-ground knowledge on the Chinese economy and financial markets, and has a wealth of contacts with China corporates and government entities.

Smartkarma Webinar | China Environment Sector Deep Dive: Solid Waste Treatment

Opportunities in the Environmental Sector 