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

Jilin Jiutai Rural Comm Bank / Event-Driven

<ul>
<li>On 3 July, <a href="https://www.smartkarma.com/entities/jilin-jiutai-rural-comm-bank" target="_blank" data-smartkarma-citation="entities:23735:1" rel="noopener">Jilin Jiutai Rural Comm Bank (6122 HK)</a> disclosed a voluntary conditional offer and delisting proposal by Jilin Province at HK$0.70. IFA opines it is fair and reasonable. </li>
<li>The IFA analysis is flawed, and the offer is unattractive. Nevertheless, the offer represents the best-case scenario for minorities, as the timeline for resuming trading remains uncertain.</li>
<li>While the 24 October vote on the delisting proposal should pass, the satisfaction of the minimum acceptance condition (90% of independent H shares) poses a challenge.</li>
</ul>


On 3 July, Jilin Jiutai Rural Comm Bank (6122 HK) disclosed a voluntary conditional offer and delisting proposal by Jilin Province at HK$0.70. IFA opines it is fair and reasonable. 
The IFA analysis is flawed, and the offer is unattractive. Nevertheless, the offer represents the best-case scenario for minorities, as the timeline for resuming trading remains uncertain.
While the 24 October vote on the delisting proposal should pass, the satisfaction of the minimum acceptance condition (90% of independent H shares) poses a challenge.


Jilin Jiutai RCB (6122 HK): Minorities Out of Options as the Offer Opens

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Chongqing Rural Commercial Bank / Event-Driven

<ul>
<li>Last week, CICC Hong Kong and SOE Jilin Financial Holding Group tabled a rescue offer for <a href="https://www.smartkarma.com/entities/jilin-jiutai-rural-comm-bank" target="_blank" data-smartkarma-citation="entities:23735:1" rel="noopener">Jilin Bank (6122 HK)</a>, as discussed in<a href="https://skr.ma/UL5z1" target="_blank" rel="noopener"> Jilin Bank (6122 HK): Another Hobson's Choice</a>
</li>
<li>This follows a similar bailout of <a href="https://www.smartkarma.com/entities/bank-of-jinzhou-co-ltd" target="_blank" data-smartkarma-citation="entities:21014:1" rel="noopener">Bank Of Jinzhou (416 HK)</a> in early 2024, as detailed in <a href="https://skr.ma/N19a2" target="_blank" rel="noopener">Bank of Jinzhou (416 HK) To Be Taken Private.</a>
</li>
<li>Tarring the sector with same brush is potentially oversimplifying the situation. But the issues faced by Jilin Bank and BoJ are unlikely to be isolated. Below I dig deeper.  </li>
</ul>


Last week, CICC Hong Kong and SOE Jilin Financial Holding Group tabled a rescue offer for Jilin Bank (6122 HK), as discussed in Jilin Bank (6122 HK): Another Hobson's Choice

This follows a similar bailout of Bank Of Jinzhou (416 HK) in early 2024, as detailed in Bank of Jinzhou (416 HK) To Be Taken Private.

Tarring the sector with same brush is potentially oversimplifying the situation. But the issues faced by Jilin Bank and BoJ are unlikely to be isolated. Below I dig deeper.  


Chinese RCBs: Two Bailouts. How Many More At Risk?

<ul>
<li>
<a href="https://www.smartkarma.com/entities/jilin-jiutai-rural-comm-bank" target="_blank" data-smartkarma-citation="entities:23735:1" rel="noopener">Jilin Jiutai Rural Comm Bank (6122 HK)</a> has disclosed a voluntary conditional offer and delisting proposal by Jilin Province at HK$0.70 per H Share, a 70.7% premium to the undisturbed price.</li>
<li>The key conditions are H Shareholder approval of the delisting proposal and a minimum acceptance condition (50% of outstanding and 90% of H shares).</li>
<li>Minorities are caught between a rock and a hard place, as the offer is unattractive, but the timeline for lifting the trading suspension is uncertain.  </li>
</ul>



Jilin Jiutai Rural Comm Bank (6122 HK) has disclosed a voluntary conditional offer and delisting proposal by Jilin Province at HK$0.70 per H Share, a 70.7% premium to the undisturbed price.
The key conditions are H Shareholder approval of the delisting proposal and a minimum acceptance condition (50% of outstanding and 90% of H shares).
Minorities are caught between a rock and a hard place, as the offer is unattractive, but the timeline for lifting the trading suspension is uncertain.  


Jilin Jiutai RCB (6122 HK): A Conditional VGO Puts Minorities Between a Rock and a Hard Place

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Thematic (Sector/Industry)

<ul>
<li>Chinese Real Estate prices have been the major driver of the Chinese stock market slump, but the fall seemed to stop. </li>
<li>Recently sworn-in President Trump is no longer considered an enemy of China, and his tariff punishment will no longer be across the board but more selective. </li>
<li>A few stocks in Hong Kong listing that trade at lower PE multiples to the dividend yield, indicating the undemanding valuation to obtain yield. </li>
</ul>


Chinese Real Estate prices have been the major driver of the Chinese stock market slump, but the fall seemed to stop. 
Recently sworn-in President Trump is no longer considered an enemy of China, and his tariff punishment will no longer be across the board but more selective. 
A few stocks in Hong Kong listing that trade at lower PE multiples to the dividend yield, indicating the undemanding valuation to obtain yield. 


APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC 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.

Equity Capital Markets

Beijing Yuanxin Technology Group Co Ltd / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/beijing-yuanxin-technology-group-co-ltd" target="_blank" data-smartkarma-citation="entities:34685:1" rel="noopener">Beijing Yuanxin Technology Group Co Ltd (1865453D CH)</a> is looking to raise US$500m in its upcoming Hong Kong IPO. The deal will be run by Goldman Sachs and CITIC Securities.Beijing Yuanxin Technology Group is a pharmaceutical firm operating under the Miaoshu Physician and Yuanxin Pharmacy brands. As per Frost &amp; Sullivan (F&amp;S), the firm is the No. 1 integrated healthcare fulfilment platform in China focusing on prescription drugs. The firm also operates its brick-and-mortar pharmacies under the Yuanxin Pharmacy brand, and as of 8M21, had 251 pharmacies over 30 provinces in China.

Beijing Yuanxin Technology Group Co Ltd (1865453D CH) is looking to raise US$500m in its upcoming Hong Kong IPO. The deal will be run by Goldman Sachs and CITIC Securities.Beijing Yuanxin Technology Group is a pharmaceutical firm operating under the Miaoshu Physician and Yuanxin Pharmacy brands. As per Frost &amp; Sullivan (F&amp;S), the firm is the No. 1 integrated healthcare fulfilment platform in China focusing on prescription drugs. The firm also operates its brick-and-mortar pharmacies under the Yuanxin Pharmacy brand, and as of 8M21, had 251 pharmacies over 30 provinces in China.

Beijing Yuanxin Technology Group Pre-IPO Tearsheet

China

Dongguan Rural Commercial Bank Co., Ltd. offers banking services. The Company provides credits, deposits, bill discounting, and other services. Dongguan Rural Commercial Bank provides its services throughout rural areas.

Price Gauge
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Dongguan Rural Commercial Bank (9889 HK)

Jilin Jiutai RCB (6122 HK): Minorities Out of Options as the Offer Opens

While light, the offer represents the best-case scenario for minorities, as the timeline for resuming trading remains uncertain. Satisfaction of...

Arun George

Chinese RCBs: Two Bailouts. How Many More At Risk?

This is largely an objective insight. There can be no guarantee/certainty why one bank may need to hoist the white flag, while another does not....

David Blennerhassett

Jilin Jiutai RCB (6122 HK): A Conditional VGO Puts Minorities Between a Rock and a Hard Place

Minorities are caught between a rock and a hard place, as the offer is unattractive, but the timeline for lifting the trading suspension is uncertain.

Arun George

China: Revival 2.0?

Chinese real estate prices impact stock market, Trump's tariff approach to China changes, undervalued stocks in Hong Kong offer high yield potential.

Henry Soediarko

Beijing Yuanxin Technology Group Pre-IPO Tearsheet

Beijing Yuanxin Technology Group Co Ltd (1865453D CH) is looking to raise US$500m in its upcoming Hong Kong IPO. The deal will be run by Goldman...

Clarence Chu

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Jilin Jiutai RCB (6122 HK): Minorities Out of Options as the Offer Opens

While light, the offer represents the best-case scenario for minorities, as the timeline for resuming trading remains uncertain. Satisfaction of...

Arun George

Chinese RCBs: Two Bailouts. How Many More At Risk?

This is largely an objective insight. There can be no guarantee/certainty why one bank may need to hoist the white flag, while another does not....

David Blennerhassett

Jilin Jiutai RCB (6122 HK): A Conditional VGO Puts Minorities Between a Rock and a Hard Place

Minorities are caught between a rock and a hard place, as the offer is unattractive, but the timeline for lifting the trading suspension is uncertain.

Arun George

China: Revival 2.0?

​Chinese real estate prices impact stock market, Trump's tariff approach to China changes, undervalued stocks in Hong Kong offer high yield potential.

Henry Soediarko

Beijing Yuanxin Technology Group Pre-IPO Tearsheet

Beijing Yuanxin Technology Group Co Ltd (1865453D CH) is looking to raise US$500m in its upcoming Hong Kong IPO. The deal will be run by Goldman...

Clarence Chu

Chinese real estate prices impact stock market, Trump's tariff approach to China changes, undervalued stocks in Hong Kong offer high yield potential.