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.

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/maanshan-dingtai-rare-a" target="_blank" data-smartkarma-citation="entities:4128:1" rel="noopener">S.F. Holding (002352 CH)</a>, the largest Asian integrated logistics service provider, is premarketing an H Share listing to raise US$1.0-1.5 billion, according to press reports.</li>
<li>SF is the largest integrated logistics service player in China and Asia and the fourth largest player globally in terms of revenue in 2023, according to Frost &amp; Sullivan.   </li>
<li>The PHIP update shows that the business is in good health, with a return to growth, rising margins, and strong cash generation. Therefore, a premium multiple to peers is justified.</li>
</ul>



S.F. Holding (002352 CH), the largest Asian integrated logistics service provider, is premarketing an H Share listing to raise US$1.0-1.5 billion, according to press reports.
SF is the largest integrated logistics service player in China and Asia and the fourth largest player globally in terms of revenue in 2023, according to Frost &amp; Sullivan.   
The PHIP update shows that the business is in good health, with a return to growth, rising margins, and strong cash generation. Therefore, a premium multiple to peers is justified.


SF Holding H Share Listing: Updates Point to Improving Fundamentals

Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Tracking Traffic

Focusing on Asian logistics, transportation, and travel companies

<ul>
<li>SF Holding proposes interim &amp; special dividends for owners of A-shares</li>
<li>Combined cash dividend totals 1.40 CNY per share, yielding about 3.3%</li>
<li>Meeting October 29 to approve dividends, Q3 results, planned HK listing</li>
</ul>


SF Holding proposes interim &amp; special dividends for owners of A-shares
Combined cash dividend totals 1.40 CNY per share, yielding about 3.3%
Meeting October 29 to approve dividends, Q3 results, planned HK listing


SF Holding Pre-IPO: Proposed Interim & Special Dividends of 1.40 CNY Per Share Ahead of HK Listing

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Equity Bottom-Up

Hengan International Group / Equity Bottom-Up

<ul>
<li>Hong Kong Conglomerate Sector is showing renewed strength with Materials and Energy under pressure.  HK market 30 day volatility at 5 year low as market continues to de-risk.</li>
<li>
<a href="https://www.smartkarma.com/entities/hengan-international-group-co-ltd" target="_blank" data-smartkarma-citation="entities:29:1" rel="noopener">Hengan International Group (1044 HK)</a> chart broke down from its Descending Triangle pattern after reporting its 1H24 results. <a href="https://www.smartkarma.com/entities/j-t-global-express-ltd" target="_blank" data-smartkarma-citation="entities:36819:1" rel="noopener">J&amp;T Global Express (1519 HK)</a> broke down from its double bottom pattern.
</li>
<li>
<a href="https://www.smartkarma.com/entities/china-galaxy-securities-co-h" target="_blank" data-smartkarma-citation="entities:165:1" rel="noopener">China Galaxy Securities (H) (6881 HK)</a> price relative to the MSCI China index broke to a new high.  The company reported good results in a difficult environment for China brokers.
</li>
</ul>


Hong Kong Conglomerate Sector is showing renewed strength with Materials and Energy under pressure.  HK market 30 day volatility at 5 year low as market continues to de-risk.

Hengan International Group (1044 HK) chart broke down from its Descending Triangle pattern after reporting its 1H24 results. J&amp;T Global Express (1519 HK) broke down from its double bottom pattern.


China Galaxy Securities (H) (6881 HK) price relative to the MSCI China index broke to a new high.  The company reported good results in a difficult environment for China brokers.



Technically Speaking, Breakouts and Breakdowns: HONG KONG (SEPTEMBER 13)

Cross Asset Strategy

<ul>
<li>Hong Kong market showed defensiveness during early August selloff and the overall breadth of the market continues to improve.</li>
<li>
<a href="https://www.smartkarma.com/entities/j-t-global-express-ltd" target="_blank" data-smartkarma-citation="entities:36819:1" rel="noopener">J&amp;T Global Express (1519 HK)</a> received upgrades after reporting strong 2Q24 results.  Its SEA and China business showed growth in revenue and profitability.</li>
<li>
<a href="https://www.smartkarma.com/entities/galaxy-entertainment-group-limited" target="_blank" data-smartkarma-citation="entities:806:1" rel="noopener">Galaxy Entertainment Group (27 HK)</a> received an upgrade after revenue and EBITDA approached pre-COVID levels.  <a href="https://www.smartkarma.com/entities/fit-hon-teng-ltd" target="_blank" data-smartkarma-citation="entities:22868:1" rel="noopener">FIT Hon Teng (6088 HK)</a> is seeing improvement in AI server, AirPod, and EV segments.</li>
</ul>


Hong Kong market showed defensiveness during early August selloff and the overall breadth of the market continues to improve.

J&amp;T Global Express (1519 HK) received upgrades after reporting strong 2Q24 results.  Its SEA and China business showed growth in revenue and profitability.

Galaxy Entertainment Group (27 HK) received an upgrade after revenue and EBITDA approached pre-COVID levels.  FIT Hon Teng (6088 HK) is seeing improvement in AI server, AirPod, and EV segments.


BUY/SELL/HOLD: Hong Kong Stock Updates (August 21)

HK/China Equity Long-Short

Osbert Tang, CFA

<ul>
<li>Even after the 28% surge in share price since the 1H24 result, <a href="https://www.smartkarma.com/entities/jd-logistics-inc" target="_blank" data-smartkarma-citation="entities:31500:1" rel="noopener">JD Logistics (2618 HK)</a> still deserves a look as fundamentals have improved, especially with better cost control.</li>
<li>JDL is riding on scale economies with higher asset utilisation. Quarterly margins have sustained an uptrend, reaching the highest levels since 1Q21 and it will continue.</li>
<li>We like its lower reliance on <a href="https://www.smartkarma.com/entities/jd-com-inc" target="_blank" data-smartkarma-citation="entities:29043:1" rel="noopener">JD.com (9618 HK)</a> and net cash of HK$2.83/share (28% of the share price). There is a massive upside in consensus forecasts too.</li>
</ul>


Even after the 28% surge in share price since the 1H24 result, JD Logistics (2618 HK) still deserves a look as fundamentals have improved, especially with better cost control.
JDL is riding on scale economies with higher asset utilisation. Quarterly margins have sustained an uptrend, reaching the highest levels since 1Q21 and it will continue.
We like its lower reliance on JD.com (9618 HK) and net cash of HK$2.83/share (28% of the share price). There is a massive upside in consensus forecasts too.


JD Logistics (2618 HK): There Are More Rooms

Hong Kong

Kerry Logistics Network Limited provides logistics services in Asia and internationally. The Company offers integrated logistics services, as well as leases warehousing space in Hong Kong and provides international freight forwarding services.

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Kerry Logistics Network (636 HK)

Technically Speaking, Breakouts and Breakdowns: HONG KONG (SEPTEMBER 13)

Hong Kong conglomerate sector shows increased momentum. Hengan and J&T technical patterns broke down. J&T fell to new lows since its listing last...

David Mudd

BUY/SELL/HOLD: Hong Kong Stock Updates (August 21)

The Hong Kong market breadth continues to improve as the market has shown defensive qualities during recent selloff. J&T Global, Galaxy and FIT...

David Mudd

JD Logistics (2618 HK): There Are More Rooms

Despite a 28% share price surge since 1H24 result, JD Logistics has an improved story. Margin expansion should continue as cost control is...

Osbert Tang, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

SF Holding H Share Listing: Updates Point to Improving Fundamentals

The PHIP update shows that the business is in good health, with a return to growth, rising margins, and strong cash generation. Therefore, a...

Arun George

SF Holding Pre-IPO: Proposed Interim & Special Dividends of 1.40 CNY Per Share Ahead of HK Listing

China's leading express company, SF Holding, has announced interim and special dividends to be paid to existing shareholders ahead of a planned...

Tracking Traffic

Technically Speaking, Breakouts and Breakdowns: HONG KONG (SEPTEMBER 13)

Hong Kong conglomerate sector shows increased momentum. Hengan and J&T technical patterns broke down. J&T fell to new lows since its listing last...

David Mudd

BUY/SELL/HOLD: Hong Kong Stock Updates (August 21)

The Hong Kong market breadth continues to improve as the market has shown defensive qualities during recent selloff. J&T Global, Galaxy and FIT...

David Mudd

JD Logistics (2618 HK): There Are More Rooms

​Despite a 28% share price surge since 1H24 result, JD Logistics has an improved story. Margin expansion should continue as cost control is...

Osbert Tang, CFA

Despite a 28% share price surge since 1H24 result, JD Logistics has an improved story. Margin expansion should continue as cost control is...