IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

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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

Shenzhen Longsys Electronics / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shenzhen-longsys-electronics-co-ltd-9ad6ee79-c403-4819-a5df-de95777ae2a7" target="_blank" data-smartkarma-citation="entities:55525:1" rel="noopener">Shenzhen Longsys Electronics (9976 HK)</a> is a branded independent memory product company. It is seeking to raise US$798 million.     </li>
<li>It designs controllers/firmware, back-end manufacturing (packaging/testing/assembly), and sells memory products (embedded storage, SSDs, mobile storage, DIMMs).</li>
<li>The investment case is bearish as Longsys is a fundamentally commoditised, cyclical, cash-burning company, currently riding an exceptional AI-driven up-cycle.</li>
</ul>



Shenzhen Longsys Electronics (9976 HK) is a branded independent memory product company. It is seeking to raise US$798 million.     
It designs controllers/firmware, back-end manufacturing (packaging/testing/assembly), and sells memory products (embedded storage, SSDs, mobile storage, DIMMs).
The investment case is bearish as Longsys is a fundamentally commoditised, cyclical, cash-burning company, currently riding an exceptional AI-driven up-cycle.


Longsys Electronics H Share Listing (9976 HK): The Investment Case

HK/China Equity Long-Short

Osbert Tang, CFA

<ul>
<li>The IPO of <a href="https://www.smartkarma.com/entities/shenzhen-longsys-electronics-co-ltd-9ad6ee79-c403-4819-a5df-de95777ae2a7" target="_blank" data-smartkarma-citation="entities:55525:1" rel="noopener">Shenzhen Longsys Electronics (9976 HK)</a>, a branded independent semiconductor memory product enterprise, does not appear particularly attractive to us.</li>
<li>Although its EPS CAGR will reach 95.5% for FY25-28, the growth is entirely generated in FY26, as market consensus projects a decline in FY27 and FY28.</li>
<li>Its FY27 PER of 8x is higher than global peers, and the steep 45.9% discount to the A-share is justified by the uncertain earnings outlook.</li>
</ul>


The IPO of Shenzhen Longsys Electronics (9976 HK), a branded independent semiconductor memory product enterprise, does not appear particularly attractive to us.
Although its EPS CAGR will reach 95.5% for FY25-28, the growth is entirely generated in FY26, as market consensus projects a decline in FY27 and FY28.
Its FY27 PER of 8x is higher than global peers, and the steep 45.9% discount to the A-share is justified by the uncertain earnings outlook.


Shenzhen Longsys (9976 HK) IPO: Not Too Exciting

Global Healthcare Analyst

Tina Banerjee

<ul>
<li>Longsys Electronics launched Hongkong IPO to raise nearly HK$ 6.3B. They are a branded independent semiconductor memory product enterprise making Embedded storage solutions, SSDs, Mobile Storage Products and DIMMs.</li>
<li>Longsys Electronics intends to use the proceeds for research and development, strategic investments and/or acquisition and for general corporate purpose.</li>
<li>Longsys Electronics’ operational capabilities, strong R&amp;D and technological prowess, robust product portfolio and global market presence, coupled with the positive demand outlook does make this issue fundamentally worth for investors.</li>
</ul>


Longsys Electronics launched Hongkong IPO to raise nearly HK$ 6.3B. They are a branded independent semiconductor memory product enterprise making Embedded storage solutions, SSDs, Mobile Storage Products and DIMMs.
Longsys Electronics intends to use the proceeds for research and development, strategic investments and/or acquisition and for general corporate purpose.
Longsys Electronics’ operational capabilities, strong R&amp;D and technological prowess, robust product portfolio and global market presence, coupled with the positive demand outlook does make this issue fundamentally worth for investors.


Shenzhen Longsys Electronics IPO: Worth Embedding This In Investors Memory

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>Longsys, a branded memory-module maker, launched its IPO to raise USD 800m through an A+H listing. CITIC and Citi are the deal sponsors.</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>


Longsys, a branded memory-module maker, launched its IPO to raise USD 800m through an A+H listing. CITIC and Citi are the deal sponsors.
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.


Longsys (江波龙) A+H IPO: Analysis of Deal Terms

<ul>
<li>Longsys, a branded memory-module maker, is seeking an A+H listing. CITIC and Citi are the joint sponsors.</li>
<li>We look at the company's four core segments: embedded storage, SSDs, mobile storage and DIMM.</li>
<li>We discuss our preliminary thoughts on the company's valuation based on the A-H premium.</li>
</ul>


Longsys, a branded memory-module maker, is seeking an A+H listing. CITIC and Citi are the joint sponsors.
We look at the company's four core segments: embedded storage, SSDs, mobile storage and DIMM.
We discuss our preliminary thoughts on the company's valuation based on the A-H premium.


Longsys (江波龙) A+H Pre-IPO: Early Thoughts

China

Biwin Storage Technology Co., Ltd. researches, develops, manufactures, and sells memory chip application products. The Company produces smart terminal storage chips, consumer-grade storage modules,  industrial-grade storage modules, and provides advanced packaging and testing services. Biwin Storage Technology conducts businesses in China.

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Biwin Storage Technology (688525 CH)

Shenzhen Longsys (9976 HK) IPO: Not Too Exciting

Shenzhen Longsys H-share is priced at a 45.9% discount to the A-share, but the market's projected earnings decline for FY27-28 is a concern. Its 8x...

Osbert Tang, CFA

Shenzhen Longsys Electronics IPO: Worth Embedding This In Investors Memory

Longsys launched HK IPO to raise nearly HK$ 6.3B for R&D, strategic investments/acquisition etc. Operational capabilities, strong R&D prowess,...

Tina Banerjee

Longsys (江波龙) A+H IPO: Analysis of Deal Terms

We analyze Longsys's USD 800m Hong Kong IPO. We look at deal terms, track records of cornerstone investors and sponsors, as well as its valuation....

Ke Yan, CFA, FRM

Longsys (江波龙) A+H Pre-IPO: Early Thoughts

Longsys passed hearing for an A+H listing. In this note, we look at the company's business, its industry context and provide our early thoughts on...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Longsys Electronics H Share Listing (9976 HK): The Investment Case

Longsys Electronics is a branded independent memory product company. It is seeking to raise US$798 million. In this note, I discuss the investment...

Arun George

Shenzhen Longsys (9976 HK) IPO: Not Too Exciting

Shenzhen Longsys H-share is priced at a 45.9% discount to the A-share, but the market's projected earnings decline for FY27-28 is a concern. Its 8x...

Osbert Tang, CFA

Shenzhen Longsys Electronics IPO: Worth Embedding This In Investors Memory

Longsys launched HK IPO to raise nearly HK$ 6.3B for R&D, strategic investments/acquisition etc. Operational capabilities, strong R&D prowess,...

Tina Banerjee

Longsys (江波龙) A+H IPO: Analysis of Deal Terms

We analyze Longsys's USD 800m Hong Kong IPO. We look at deal terms, track records of cornerstone investors and sponsors, as well as its valuation....

Ke Yan, CFA, FRM

Longsys (江波龙) A+H Pre-IPO: Early Thoughts

Longsys passed hearing for an A+H listing. In this note, we look at the company's business, its industry context and provide our early thoughts on...

Ke Yan, CFA, FRM