HK/China Equity Long-Short

Osbert Tang, CFA

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sg-micro-corp-5c356907-201f-4bd8-8190-24de284e1329" target="_blank" data-smartkarma-citation="entities:50247:1" rel="noopener">SG Micro (3661 HK)</a>, a leading analog IC company, has a solid track record of earnings. Its IPO targets to raise net proceeds of HK$4.5bn, which is reasonably sizeable.</li>
<li>The market is expecting 3-year EPS CAGR of 33.1%, putting the IPO price at 59.3x FY26 PER. The 107% earnings growth in 1Q26 affirms its outlook. </li>
<li>We value it on 2.1x PEG, same as global peers, translating into 70x PER, or 18% upside. Our estimated fair value of HK$100.50 means a H-A discount of 34.1%.  </li>
</ul>



SG Micro (3661 HK), a leading analog IC company, has a solid track record of earnings. Its IPO targets to raise net proceeds of HK$4.5bn, which is reasonably sizeable.
The market is expecting 3-year EPS CAGR of 33.1%, putting the IPO price at 59.3x FY26 PER. The 107% earnings growth in 1Q26 affirms its outlook. 
We value it on 2.1x PEG, same as global peers, translating into 70x PER, or 18% upside. Our estimated fair value of HK$100.50 means a H-A discount of 34.1%.  


SG Micro Corp (3661 HK) IPO: A High-Growth Play

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>SG has been closely following the overseas leaders in terms of product category breadth, covering approximately 70% of the mid-to-low-end parts of Texas Instruments, with a clear substitution potential.</li>
<li>To continue making profits, SG needs to launch new designs faster than peers, or seize a “time difference” in automotive certification, otherwise its profits will be squeezed out by competitors.</li>
<li>A comfortable P/S of SG’s H-share could be between 6-8x (based on 2026 forecast). As industry leader, we think SG’s valuation would be higher than <a href="https://www.smartkarma.com/entities/suzhou-novosense-microlectronics-co-ltd-class-h" target="_blank" data-smartkarma-citation="entities:46180:1" rel="noopener">Suzhou Novosense Microelectronics (2676 HK)</a>. </li>
</ul>


SG has been closely following the overseas leaders in terms of product category breadth, covering approximately 70% of the mid-to-low-end parts of Texas Instruments, with a clear substitution potential.
To continue making profits, SG needs to launch new designs faster than peers, or seize a “time difference” in automotive certification, otherwise its profits will be squeezed out by competitors.
A comfortable P/S of SG’s H-share could be between 6-8x (based on 2026 forecast). As industry leader, we think SG’s valuation would be higher than Suzhou Novosense Microelectronics (2676 HK). 


Pre-IPO SG Micro Corp (A/H Listing) - Some Points Worth the Attention

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

<ul>
<li>SG Micro is seeking an A+H listing. CICC and Huatai are the sponsors.</li>
<li>We look at the company's core segments: power management integrated circuits and signal chain integrated circuits.</li>
<li>We discuss our preliminary thoughts on the company's fair value based on A-H premium.</li>
</ul>


SG Micro is seeking an A+H listing. CICC and Huatai are the sponsors.
We look at the company's core segments: power management integrated circuits and signal chain integrated circuits.
We discuss our preliminary thoughts on the company's fair value based on A-H premium.


SG Micro (圣邦微电子) A+H Pre-IPO: Early Thoughts

Quantitative Analysis

<ul>
<li>We analysed the earning revision of component stocks of CSI 500 in the past month.</li>
<li>We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.</li>
<li>We highlighted EPS revision on Henan Shenhuo Coal &amp; Power, Guangxi Liugong Machinery, Inner Mongolia Dian Tou Energy, Suzhou Dongshan Precision Manufacturing, Shenergy, Maanshan Iron &amp; Steel, Yonghui Superstores.</li>
</ul>


We analysed the earning revision of component stocks of CSI 500 in the past month.
We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.
We highlighted EPS revision on Henan Shenhuo Coal &amp; Power, Guangxi Liugong Machinery, Inner Mongolia Dian Tou Energy, Suzhou Dongshan Precision Manufacturing, Shenergy, Maanshan Iron &amp; Steel, Yonghui Superstores.


CSI 500 Index Earning Revision (Jun): Henan Shenhuo Coal & Power, Guangxi Liugong Machinery

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, 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.

Fortior Technology (Shenzhen) / Equity Capital Markets

Fortior Technology (Shenzhen) (688279 CH)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/fortior-technology-shenzhen-co-ltd" target="_blank" data-smartkarma-citation="entities:44259:1" rel="noopener">Fortior Technology (Shenzhen) (688279 CH)</a>, a BLDC motor IC design company, aims to raise around US$250m in its H-share listing.</li>
<li>Fortior Tech is an IC design company dedicated to the design and R&amp;D of BLDC motor control ICs.</li>
<li>In this note, we look at the past performance and likely A/H premium.</li>
</ul>



Fortior Technology (Shenzhen) (688279 CH), a BLDC motor IC design company, aims to raise around US$250m in its H-share listing.
Fortior Tech is an IC design company dedicated to the design and R&amp;D of BLDC motor control ICs.
In this note, we look at the past performance and likely A/H premium.


Fortior Tech A/H Listing - Fast but Volatile Growth and Margins

China

3Peak Incorporated. manufactures and distributes electronics components. The Company produces signal chain analog chips, power management analog chips, linears, converters, interfaces, amplifiers, comparators, and other products. 3Peak supplies its products in information communication, industrial control, medical health, household appliances, and mother fields.

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3peak (688536 CH)

SG Micro Corp (3661 HK) IPO: A High-Growth Play

SG Micro is a leading analog IC company with a solid earnings record, aiming to raise HK$4.5bn in its IPO. With a 33.1% EPS CAGR, the IPO is...

Osbert Tang, CFA

Pre-IPO SG Micro Corp (A/H Listing) - Some Points Worth the Attention

SG's IPO pricing is ≦HK$85.2, with maximum MV of HK$57.5bn (RMB49.6bn). Based on 2026 forecast, PS is 10x (higher than Novosense (7.8x) and our...

Xinyao (Criss) Wang

SG Micro (圣邦微电子) A+H Pre-IPO: Early Thoughts

SG Micro is seeking an A+H listing. In this note, we look at the company's business, its industry context and provide our early thoughts on valuation.

Ke Yan, CFA, FRM

CSI 500 Index Earning Revision (Jun): Henan Shenhuo Coal & Power, Guangxi Liugong Machinery

We analyzed CSI 500's consensus for Jun 2025 and highlighted changes of EPS in Henan Shenhuo Coal & Power (000933 CH), Guangxi Liugong Machinery...

Ke Yan, CFA, FRM

Fortior Tech A/H Listing - Fast but Volatile Growth and Margins

Fortior Technology (Shenzhen) (688279 CH), a BLDC motor IC design company, aims to raise around US$250m in its H-share listing. In this note, we...

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

SG Micro Corp (3661 HK) IPO: A High-Growth Play

​SG Micro is a leading analog IC company with a solid earnings record, aiming to raise HK$4.5bn in its IPO. With a 33.1% EPS CAGR, the IPO is...

Osbert Tang, CFA

Pre-IPO SG Micro Corp (A/H Listing) - Some Points Worth the Attention

SG's IPO pricing is ≦HK$85.2, with maximum MV of HK$57.5bn (RMB49.6bn). Based on 2026 forecast, PS is 10x (higher than Novosense (7.8x) and our...

Xinyao (Criss) Wang

SG Micro (圣邦微电子) A+H Pre-IPO: Early Thoughts

SG Micro is seeking an A+H listing. In this note, we look at the company's business, its industry context and provide our early thoughts on valuation.

Ke Yan, CFA, FRM

CSI 500 Index Earning Revision (Jun): Henan Shenhuo Coal & Power, Guangxi Liugong Machinery

We analyzed CSI 500's consensus for Jun 2025 and highlighted changes of EPS in Henan Shenhuo Coal & Power (000933 CH), Guangxi Liugong Machinery...

Ke Yan, CFA, FRM

Fortior Tech A/H Listing - Fast but Volatile Growth and Margins

Fortior Technology (Shenzhen) (688279 CH), a BLDC motor IC design company, aims to raise around US$250m in its H-share listing. In this note, we...

Sumeet Singh

SG Micro is a leading analog IC company with a solid earnings record, aiming to raise HK$4.5bn in its IPO. With a 33.1% EPS CAGR, the IPO is...