HK/China Equity Long-Short

Osbert Tang, CFA

Equity Capital Markets

Shenzhen Transsion Holdings / Equity Capital Markets

<ul>
<li>The H-share IPO of <a href="https://www.smartkarma.com/entities/shenzhen-transsion-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:58740:1" rel="noopener">Shenzhen Transsion Holdings (2636 HK)</a>, a smart device and mobile Internet service provider, appears to provide some upside at the maximum IPO price.</li>
<li>Its earnings have recovered sharply in 1H26, and for FY25-28F, it is expected to achieve an EPS CAGR of 30.2% as it expands its market and products.</li>
<li>We value it at 12.5x FY26 PER, 10% discount to <a href="https://www.smartkarma.com/entities/tcl-electronics-holdings-limited" target="_blank" data-smartkarma-citation="entities:15654:1" rel="noopener">TCL Electronics (1070 HK)</a>, implying a fair price of HK$43.73, or 12.7% upside.  </li>
</ul>


The H-share IPO of Shenzhen Transsion Holdings (2636 HK), a smart device and mobile Internet service provider, appears to provide some upside at the maximum IPO price.
Its earnings have recovered sharply in 1H26, and for FY25-28F, it is expected to achieve an EPS CAGR of 30.2% as it expands its market and products.
We value it at 12.5x FY26 PER, 10% discount to TCL Electronics (1070 HK), implying a fair price of HK$43.73, or 12.7% upside.  


Shenzhen Transsion (2636 HK) IPO: Still Some Upside

Derivatives and Quantitative Strategist

Gaudenz Schneider

Equity Derivatives

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sk-hynix-inc" target="_blank" data-smartkarma-citation="entities:16955:1" rel="noopener">SK hynix (000660 KS)</a> gained 6.1% in September and its 2x Leveraged Index rose 9.6%, yet combined long-ETF AUM declined 2.7%.</li>
<li>All seven long-leveraged ETFs recorded reductions in units outstanding, while September net outflows reached KRW 514bn and daily flow activity remained subdued.</li>
<li>In contrast, the inverse ETF’s units outstanding more than doubled and its market capitalisation increased 68%, despite the product losing 17.0% during September.</li>
</ul>



SK hynix (000660 KS) gained 6.1% in September and its 2x Leveraged Index rose 9.6%, yet combined long-ETF AUM declined 2.7%.
All seven long-leveraged ETFs recorded reductions in units outstanding, while September net outflows reached KRW 514bn and daily flow activity remained subdued.
In contrast, the inverse ETF’s units outstanding more than doubled and its market capitalisation increased 68%, despite the product losing 17.0% during September.


SK Hynix (000660 KS): Inverse 2x ETF Units Double as Long 2x ETF Outflows Persist

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

Shenton Research

Shenton 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>Transsion, a mobile phone maker focused on Africa and other emerging markets, launched its IPO to raise USD 428m through an A+H listing. CITIC is the sole sponsor.</li>
<li>In this note, we look at the deal terms and provide our thoughts on valuation for the company.</li>
<li>We analyze reference A+H transactions, cornerstone and sponsor performance and assess the risk-reward of the deal.</li>
</ul>


Transsion, a mobile phone maker focused on Africa and other emerging markets, launched its IPO to raise USD 428m through an A+H listing. CITIC is the sole sponsor.
In this note, we look at the deal terms and provide our thoughts on valuation for the company.
We analyze reference A+H transactions, cornerstone and sponsor performance and assess the risk-reward of the deal.


Transsion (传音控股) A+H IPO: Analysis of Deal Terms

Equity & Credit Research

Duncan Chan

Commodities

MVIS Global Rare Earth/Strategic Metals Index / Commodities

MVIS Global Rare Earth/Strategic Metals Index (MVREMX INDEX)

MVIS Global Rare Earth/Strategic Metals Index

<ul>
<li>NdPr is the key rare earth signal because it links directly to magnets, EVs, robotics, wind and defence demand.</li>
<li>China’s dominance in refining, quotas and magnet production allows it to tighten and stabilise supply faster than the West can rebuild alternative ecosystems.</li>
<li>FOB export premiums and policy-driven procurement show rising geoeconomic stress, but sustained scarcity still requires durable ex-China downstream profitability.</li>
</ul>


NdPr is the key rare earth signal because it links directly to magnets, EVs, robotics, wind and defence demand.
China’s dominance in refining, quotas and magnet production allows it to tighten and stabilise supply faster than the West can rebuild alternative ecosystems.
FOB export premiums and policy-driven procurement show rising geoeconomic stress, but sustained scarcity still requires durable ex-China downstream profitability.


Rare Earths: China Still Scales Faster Than the West Can Rebuild

Podcast by J.P. Morgan analysts on global markets, At Any Rate

At Any Rate

Podcast by J.P. Morgan analysts on global markets

Analysts from J.P. Morgan’s Research team take a closer look at the stories behind some of the biggest trends, themes and developments in markets today.

Thematic (Sector/Industry)

<ul><li>Companies, especially hyperscalers, are expected to increase their CapEx spending by 60 to 70% this year, with estimated growth to reach 1.3 to 1.4 trillion in the next year.</li><li>Tech companies are significantly increasing R&amp;D and CapEx spending, with estimates suggesting they could reach spending levels comparable to global military spending in the next few years.</li><li>Tech companies are using operating cash flow and borrowing money to fund this growth, with a significant portion of investment grade issuance tied to AI and AI-related sectors.</li></ul><p><em>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.</em></p>

Companies, especially hyperscalers, are expected to increase their CapEx spending by 60 to 70% this year, with estimated growth to reach 1.3 to 1.4 trillion in the next year.Tech companies are significantly increasing R&amp;D and CapEx spending, with estimates suggesting they could reach spending levels comparable to global military spending in the next few years.Tech companies are using operating cash flow and borrowing money to fund this growth, with a significant portion of investment grade issuance tied to AI and AI-related sectors.This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

In Focus: Equity & Credit Update on AI CapEx

United States

Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related accessories. The Company also offers payment, digital content, cloud and advertising services. Apple Inc.'s customers are primarily in consumer, small & mid-sized business, education, enterprise and government markets worldwide.

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Apple (AAPL US)

Shenzhen Transsion (2636 HK) IPO: Still Some Upside

Shenzhen Transsion's IPO is priced for an 12.7% upside. 1H26 earnings have recovered, and the 3-year EPS CAGR will reach 30.2%. Conservative...

Osbert Tang, CFA

SK Hynix (000660 KS): Inverse 2x ETF Units Double as Long 2x ETF Outflows Persist

September gains failed to reverse outflows from SK hynix (000660 KS) long 2x leveraged ETFs, while investors added inverse exposure despite the...

Gaudenz Schneider

Transsion (传音控股) A+H IPO: Analysis of Deal Terms

We analyze Transsion's USD 428m Hong Kong IPO. We look at deal terms, track records of cornerstone investors and sponsors, as well as its...

Ke Yan, CFA, FRM

Rare Earths: China Still Scales Faster Than the West Can Rebuild

China still controls rare earth refining, quotas and magnets, allowing it to stabilise supply faster than the West can rebuild independent capacity.

Duncan Chan

In Focus: Equity & Credit Update on AI CapEx

Companies, especially hyperscalers, are expected to increase their CapEx spending by 60 to 70% this year, with estimated growth to reach 1.3 to...

At Any Rate

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