Research from EqualOcean, EqualOcean

EqualOcean

Research from EqualOcean

EqualOcean is an investment research firm and information service provider focusing on China's Technology, Automotive and Consumer Internet sectors. With unique research and due diligence methodology, we provide tailored insights into a wide range of industries and companies, empowering our clients' value-added decisions.

Founded in 2014, EqualOcean is headquartered in Beijing and has offices in Shanghai, Shenzhen and New York.

Thematic (Sector/Industry)

<ul><li>An eventful year - The semiconductor shortage is both accidental and inevitable</li><li>Dawn in 2022 - The crunch is likely to be relieved in 2022 but it will take years to fully meet the industry's needs. </li><li>Favored electric cars - Albeit auto brands can't get components on time, many of them are now prioritizing EV production. </li></ul>

An eventful year - The semiconductor shortage is both accidental and inevitableDawn in 2022 - The crunch is likely to be relieved in 2022 but it will take years to fully meet the industry's needs. Favored electric cars - Albeit auto brands can't get components on time, many of them are now prioritizing EV production. 

Tesla Can Deal with Supply Chain Shortage, Unlike Most Chinese Peers

Equity Derivatives and Volatility Specialist, Clifton Derivatives

John Ley

Equity Derivatives and Volatility Specialist

Clifton Derivatives

Independent derivative and volatility research firm focusing on events/catalysts, earnings, relative value and cross asset volatility strategies.

Equity Derivatives

<ul>
<li>Semiconductor weakness continued to weigh heavily on the market and left Information Technology lagging other sectors.</li>
<li>Market breadth remained positive, although the distribution of returns showed considerably greater weakness among the largest decliners.</li>
<li>Index implied vols remained firm while single stock implied vols continued to normalize, narrowing the unusually wide spread between them.</li>
</ul>


Semiconductor weakness continued to weigh heavily on the market and left Information Technology lagging other sectors.
Market breadth remained positive, although the distribution of returns showed considerably greater weakness among the largest decliners.
Index implied vols remained firm while single stock implied vols continued to normalize, narrowing the unusually wide spread between them.


Hong Kong Single Stock Options Weekly July 13–17: Semis Weaken Despite Broad Market Gains

Research on Tech Companies

Evelyn Zhang

<p>MCU (microcontroller) is the basic control unit for a large number of electronic devices. Large international manufacturers occupied a major market share. Since 2021, the global MCU market has been suffering from a persistent shortage of stock, and prices have soared. Many downstream companies, especially car makers, are experiencing severe shortage of MUC chips. Chinese downstream customers have begun to accelerate the localization of MCU supply chains.</p><p style="text-align: left;">I am optimistic about the performance of China MCU manufacturers this year, and I suggest paying attention to <a href="https://www.smartkarma.com/entities/gigadevice-semiconductor-beijing-a" target="_blank" data-smartkarma-citation="entities:27253:1" rel="noopener">GigaDevice Semiconductor (Beijing)-A (603986 CH)</a> , <a href="https://www.smartkarma.com/entities/espressif-systems-shanghai-co" target="_blank" data-smartkarma-citation="entities:30311:1" rel="noopener">Espressif Systems Shanghai Co (688018 CH)</a> , <a href="https://www.smartkarma.com/entities/sino-wealth-electronic-ltd" target="_blank" data-smartkarma-citation="entities:14697:1" rel="noopener">Sino Wealth Electronic (300327 CH)</a> </p>

MCU (microcontroller) is the basic control unit for a large number of electronic devices. Large international manufacturers occupied a major market share. Since 2021, the global MCU market has been suffering from a persistent shortage of stock, and prices have soared. Many downstream companies, especially car makers, are experiencing severe shortage of MUC chips. Chinese downstream customers have begun to accelerate the localization of MCU supply chains.I am optimistic about the performance of China MCU manufacturers this year, and I suggest paying attention to GigaDevice Semiconductor (Beijing)-A (603986 CH) , Espressif Systems Shanghai Co (688018 CH) , Sino Wealth Electronic (300327 CH) 

HK/China Equity Long-Short

Osbert Tang, CFA

Equity Capital Markets

Luxshare Precision Industry / Equity Capital Markets

<ul>
<li>We consider <a href="https://www.smartkarma.com/entities/luxshare-precision-industry-co-ltd-3f59eaa1-da7f-4d9b-add0-c8efccfee0d5" target="_blank" data-smartkarma-citation="entities:50296:1" rel="noopener">Luxshare Precision Industry (2475 HK)</a>'s H-share IPO not expensive, especially given its gigantic market capitalisation which will attract interests. </li>
<li>Its 3-year EPS CAGR is forecast at 19.2%, and its position as a local and global leader in precision intelligent manufacturing solutions justify a premium to peers. </li>
<li>The IPO price is set at 17.6% discount to the A-share. It can at least trade on 10% discount, translating into a price of HK$69.12, or 9.2% upside.</li>
</ul>


We consider Luxshare Precision Industry (2475 HK)'s H-share IPO not expensive, especially given its gigantic market capitalisation which will attract interests. 
Its 3-year EPS CAGR is forecast at 19.2%, and its position as a local and global leader in precision intelligent manufacturing solutions justify a premium to peers. 
The IPO price is set at 17.6% discount to the A-share. It can at least trade on 10% discount, translating into a price of HK$69.12, or 9.2% upside.


Luxshare Precision (2475 HK) IPO: We See Some Potential Upside

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.

Quantitative Analysis

<ul>
<li>We analysed the earning revision of component stocks of HS TECH 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 LI AUTO, NTES, XPENG, KINGSOFT, TRIP.COM, MEITUAN.</li>
</ul>


We analysed the earning revision of component stocks of HS TECH 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 LI AUTO, NTES, XPENG, KINGSOFT, TRIP.COM, MEITUAN.


HS TECH Index Earning Revision (Jun): LI AUTO, NTES, XPENG, KINGSOFT, TRIP.COM, MEITUAN

China

BYD Electronic (International) Co., Ltd. manufactures and sells handset components and modules, and provides assembly services for mobile phones. The company offers one-stop product solutions leveraging electronic information, AI, 5G, and IoT technologies, with its business spanning smartphones, computers, new energy vehicles, smart home solutions, and communication equipment. It was incorporated in 2007 and is headquartered in Shenzhen, China.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

BYD Electronic (285 HK)

Tesla Can Deal with Supply Chain Shortage, Unlike Most Chinese Peers

BYD is positioned well, too. The global automotive industry is facing a deepening supply chain crisis

EqualOcean

Hong Kong Single Stock Options Weekly July 13–17: Semis Weaken Despite Broad Market Gains

Positive breadth masked deeper weakness among the largest decliners, with semiconductors weighing on Information Technology as single stock implied...

John Ley

Cashing in the Chips

The Pandemic, buyer hording and supply chain issues all contributed to a perfect storm that's causing a global shortage of computer chips. I take a...

Evelyn Zhang

Luxshare Precision (2475 HK) IPO: We See Some Potential Upside

Luxshare Precision Industry's H-share IPO is attractively priced with strong growth potential and a discount to A-share, offering upside potential.

Osbert Tang, CFA

HS TECH Index Earning Revision (Jun): LI AUTO, NTES, XPENG, KINGSOFT, TRIP.COM, MEITUAN

We analyzed HS TECH's consensus for Jun 2026 and highlighted changes of EPS in LI AUTO, NTES, XPENG, KINGSOFT, TRIP.COM, MEITUAN.

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Tesla Can Deal with Supply Chain Shortage, Unlike Most Chinese Peers

BYD is positioned well, too. The global automotive industry is facing a deepening supply chain crisis

EqualOcean

Hong Kong Single Stock Options Weekly July 13–17: Semis Weaken Despite Broad Market Gains

Positive breadth masked deeper weakness among the largest decliners, with semiconductors weighing on Information Technology as single stock implied...

John Ley

Cashing in the Chips

The Pandemic, buyer hording and supply chain issues all contributed to a perfect storm that's causing a global shortage of computer chips. I take a...

Evelyn Zhang

Luxshare Precision (2475 HK) IPO: We See Some Potential Upside

​Luxshare Precision Industry's H-share IPO is attractively priced with strong growth potential and a discount to A-share, offering upside potential.

Osbert Tang, CFA

HS TECH Index Earning Revision (Jun): LI AUTO, NTES, XPENG, KINGSOFT, TRIP.COM, MEITUAN

We analyzed HS TECH's consensus for Jun 2026 and highlighted changes of EPS in LI AUTO, NTES, XPENG, KINGSOFT, TRIP.COM, MEITUAN.

Ke Yan, CFA, FRM

Luxshare Precision Industry's H-share IPO is attractively priced with strong growth potential and a discount to A-share, offering upside potential.