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.

Event-Driven

Shandong Hi-Speed New Energy G / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shandong-hi-speed-holdings-gro" target="_blank" data-smartkarma-citation="entities:10356:1" rel="noopener">Shandong Hi-Speed Holdings Gro (412 HK)</a> completed the acquisition of CITIC Securities 13.52% stake in <a href="https://www.smartkarma.com/entities/shandong-hi-speed-new-energy-g" target="_blank" data-smartkarma-citation="entities:6927:1" rel="noopener">Shandong Hi-Speed New Energy G (1250 HK)</a> at HK$1.78 per share. </li>
<li>SPA completion triggers a mandatory unconditional offer at HK$1.78 per share. The composite document will be sent, and the offer will open by 28 January. </li>
<li>At the last close and for an early February payment, the gross and annualised spread of the offer is 2.9% and 30.2%, respectively.</li>
</ul>



Shandong Hi-Speed Holdings Gro (412 HK) completed the acquisition of CITIC Securities 13.52% stake in Shandong Hi-Speed New Energy G (1250 HK) at HK$1.78 per share. 
SPA completion triggers a mandatory unconditional offer at HK$1.78 per share. The composite document will be sent, and the offer will open by 28 January. 
At the last close and for an early February payment, the gross and annualised spread of the offer is 2.9% and 30.2%, respectively.


Shandong Hi-Speed New Energy (1250 HK): SPA Completed, Next Unconditional MGO

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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.

Quantitative Analysis

<ul>
<li>We analyse the changes of A-H premium on 150 stocks over the last week. The average A-H premium was 97.3% as of Dec 27th.</li>
<li>The average A-H premium changed by -3.2ppt week-on-week, led by consumer staples, information technology, real estate.</li>
<li>We highlight weekly changes in A-H premium for China Southern Air, Guolian Securities, GWM, SMIC, Pharmaron, ZTE, Tigermed.</li>
</ul>


We analyse the changes of A-H premium on 150 stocks over the last week. The average A-H premium was 97.3% as of Dec 27th.
The average A-H premium changed by -3.2ppt week-on-week, led by consumer staples, information technology, real estate.
We highlight weekly changes in A-H premium for China Southern Air, Guolian Securities, GWM, SMIC, Pharmaron, ZTE, Tigermed.


A-H Premium Weekly (Dec 27th): China Southern Air, Guolian Securities, GWM, SMIC, Pharmaron, ZTE

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Equity Bottom-Up

<ul>
<li>The H share market continues to be the top performing market in Asia in 2024.  The HSCEI has outperformed all Asian markets on a USD basis.
</li>
<li>
<a href="https://www.smartkarma.com/entities/china-longyuan-power-group-corp-ltd" target="_blank" data-smartkarma-citation="entities:14215:1" rel="noopener">China Longyuan Power (916 HK)</a> was rated a BUY at JP Morgan with the company hosting a roadshow to discuss its future growth strategy. 
</li>
<li>
<a href="https://www.smartkarma.com/entities/china-resources-beverage" target="_blank" data-smartkarma-citation="entities:41984:1" rel="noopener">China Resources Beverage (2460 HK)</a> was initiated as a BUY at CMB International as the company rapidly expands into the ready-to-drink category with teas and sports drinks.
</li>
</ul>


The H share market continues to be the top performing market in Asia in 2024.  The HSCEI has outperformed all Asian markets on a USD basis.


China Longyuan Power (916 HK) was rated a BUY at JP Morgan with the company hosting a roadshow to discuss its future growth strategy. 


China Resources Beverage (2460 HK) was initiated as a BUY at CMB International as the company rapidly expands into the ready-to-drink category with teas and sports drinks.



BUY/SELL/HOLD: Hong Kong Stock Updates (December 13)

HK/China Equity Long-Short

Osbert Tang, CFA

Xinjiang Goldwind Science & Technology / Equity Bottom-Up

<ul>
<li>With a massive 125% rally YTD, <a href="https://www.smartkarma.com/entities/xinjiang-goldwind-science-technology-h" target="_blank" data-smartkarma-citation="entities:10112:1" rel="noopener">Xinjiang Goldwind Science &amp; Technology (2208 HK)</a> is no longer cheap. Its yield of 3.5% for FY25 cannot stand out as attractive.</li>
<li>Good 9M24 earnings growth is partly due to an extremely low base last year. However, the average bidding price of WTG suppliers is still 50% below that in early 2022. </li>
<li>Net operating cash outflow surged 37.8% YoY, adding pressure to its balance sheet. Its gearing has increased by 7pp over the last nine months.</li>
</ul>


With a massive 125% rally YTD, Xinjiang Goldwind Science &amp; Technology (2208 HK) is no longer cheap. Its yield of 3.5% for FY25 cannot stand out as attractive.
Good 9M24 earnings growth is partly due to an extremely low base last year. However, the average bidding price of WTG suppliers is still 50% below that in early 2022. 
Net operating cash outflow surged 37.8% YoY, adding pressure to its balance sheet. Its gearing has increased by 7pp over the last nine months.


Xinjiang Goldwind (2208 HK): We Should Be More Prudent

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shandong-hi-speed-new-energy-g" target="_blank" data-smartkarma-citation="entities:6927:1" rel="noopener">Shandong Hi-Speed New Energy G (1250 HK)</a> disclosed a possible mandatory unconditional offer from <a href="https://www.smartkarma.com/entities/shandong-hi-speed-holdings-gro" target="_blank" data-smartkarma-citation="entities:10356:1" rel="noopener">Shandong Hi-Speed Holdings Gro (412 HK)</a> at HK$1.78, a 7.2% premium to the undisturbed price.</li>
<li>The offer is conditional on SDHS completing a sale and purchase agreement (SPA) to acquire CITIC Securities' entire 13.52% stake at HK$1.78 per share.</li>
<li>The key precondition of the SPA is SDHS shareholder approval of an ordinary resolution relating to the SPA and the possible offer. The vote is a formality. </li>
</ul>



Shandong Hi-Speed New Energy G (1250 HK) disclosed a possible mandatory unconditional offer from Shandong Hi-Speed Holdings Gro (412 HK) at HK$1.78, a 7.2% premium to the undisturbed price.
The offer is conditional on SDHS completing a sale and purchase agreement (SPA) to acquire CITIC Securities' entire 13.52% stake at HK$1.78 per share.
The key precondition of the SPA is SDHS shareholder approval of an ordinary resolution relating to the SPA and the possible offer. The vote is a formality. 


Shandong Hi-Speed New Energy (1250 HK): Shandong Hi-Speed Holdings (412 HK) Possible MGO

China

China Suntien Green Energy Corp Ltd operates a wind farm and a natural gas business. The Company intends to build wind power projects and develop natural gas projects throughout China.

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China Suntien Green Energy (956 HK)

Shandong Hi-Speed New Energy (1250 HK): SPA Completed, Next Unconditional MGO

This is an unconditional offer. At the last close and for an early February payment, the offer's gross and annualised spread were 2.9% and 30.2%,...

Arun George

A-H Premium Weekly (Dec 27th): China Southern Air, Guolian Securities, GWM, SMIC, Pharmaron, ZTE

We analyzed A-H premium changes in the past week and highlight A-H premium changes for China Southern Air, Guolian Securities, GWM, SMIC,...

Ke Yan, CFA, FRM

BUY/SELL/HOLD: Hong Kong Stock Updates (December 13)

H shares have outperformed all Asian markets this year on a USD basis. Longyuan Power continues to expand its offshore capacity & overseas...

David Mudd

Xinjiang Goldwind (2208 HK): We Should Be More Prudent

Goldwind's impressive YTD rally may not be sustainable as its yield is no longer attractive, with a surge in net operating cash outflow and...

Osbert Tang, CFA

Shandong Hi-Speed New Energy (1250 HK): Shandong Hi-Speed Holdings (412 HK) Possible MGO

The key precondition of the SPA is SDHS shareholder approval of an ordinary resolution relating to the SPA and the possible offer. The vote is a...

Arun George

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