APAC IPOs & Placements, Aequitas Research

Nicholas Tan

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

Estun Automation / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/estun-automation-co-ltd" target="_blank" data-smartkarma-citation="entities:25177:1" rel="noopener">Estun Automation (002747 CH)</a> is looking to raise around $405m in its upcoming Hong Kong IPO.</li>
<li>It is a leading industrial robotics company in China focused on sales of (i) industrial robots and intelligent manufacturing systems and (ii) core automation components and motion control systems.</li>
<li>In this note, we examine the IPO dynamics, and look at the firm’s valuation.</li>
</ul>



Estun Automation (002747 CH) is looking to raise around $405m in its upcoming Hong Kong IPO.
It is a leading industrial robotics company in China focused on sales of (i) industrial robots and intelligent manufacturing systems and (ii) core automation components and motion control systems.
In this note, we examine the IPO dynamics, and look at the firm’s valuation.


Aequitas: Estun Automation IPO Trading - Weak Demand; Still Expensive

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>ESTUN’s core competitiveness is reflected in two dimensions: One is technological autonomy and vertical integration. The other is strong ability of "M&amp;As + integration". However, ESTUN's profit performance is unsatisfactory.</li>
<li>The lower limit of valuation is 1.2-1.5x P/S. The upper limit is 2-2.5x P/S. Based on 2025 forecast, market value is RMB6.1 billion-7.6 billion and RMB10.1 billion-12.7 billon respectively.</li>
<li>Considering the current high financial risks and other challenges, a comfortable IPO valuation range could be between RMB8 billion and RMB11 billion. So, we think the IPO pricing is expensive.</li>
</ul>


ESTUN’s core competitiveness is reflected in two dimensions: One is technological autonomy and vertical integration. The other is strong ability of "M&amp;As + integration". However, ESTUN's profit performance is unsatisfactory.
The lower limit of valuation is 1.2-1.5x P/S. The upper limit is 2-2.5x P/S. Based on 2025 forecast, market value is RMB6.1 billion-7.6 billion and RMB10.1 billion-12.7 billon respectively.
Considering the current high financial risks and other challenges, a comfortable IPO valuation range could be between RMB8 billion and RMB11 billion. So, we think the IPO pricing is expensive.


Pre-IPO Estun Automation (PHIP Updates) - The Business, the Concerns and Thoughts on Valuation

HK/China Equity Long-Short

Osbert Tang, CFA

Robotphoenix Intelligent Technology / Equity Capital Markets

Robotphoenix Intelligent Technology (6871 HK)

<ul>
<li>To raise HK$679.2m of net proceeds, <a href="https://www.smartkarma.com/entities/robotphoenix-intelligent-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:48807:1" rel="noopener">Robotphoenix Intelligent Technology (6871 HK)</a>'s IPO is small. But this dedicated industrial robotics company is worth a bet.</li>
<li>Although losses have been increasing for FY23-25, with a 3-year forward revenue CAGR of 35.2%, they should peak in FY27 and start to reduce in FY28.</li>
<li>We calculate a fair P/S of 13.7-15.5x for FY26, translating into a price of HK$34.3-38.6, or 12.5-26.5% upside from the IPO price. </li>
</ul>


To raise HK$679.2m of net proceeds, Robotphoenix Intelligent Technology (6871 HK)'s IPO is small. But this dedicated industrial robotics company is worth a bet.
Although losses have been increasing for FY23-25, with a 3-year forward revenue CAGR of 35.2%, they should peak in FY27 and start to reduce in FY28.
We calculate a fair P/S of 13.7-15.5x for FY26, translating into a price of HK$34.3-38.6, or 12.5-26.5% upside from the IPO price. 


<ul>
<li>
<a href="https://www.smartkarma.com/entities/estun-automation-co-ltd" target="_blank" data-smartkarma-citation="entities:25177:1" rel="noopener">Estun Automation (002747 CH)</a>  is looking to raise up to US$210m in its upcoming Hong Kong IPO.</li>
<li>It Is a leading industrial robotics company in China focused on sales of (i) industrial robots and intelligent manufacturing systems and (ii) core automation components and motion control systems.</li>
<li>In this note, we examine the IPO dynamics, and look at the firm’s valuation.</li>
</ul>



Estun Automation (002747 CH)  is looking to raise up to US$210m in its upcoming Hong Kong IPO.
It Is a leading industrial robotics company in China focused on sales of (i) industrial robots and intelligent manufacturing systems and (ii) core automation components and motion control systems.
In this note, we examine the IPO dynamics, and look at the firm’s valuation.


Aequitas: Estun Automation A/H Listing - Inadequate A/H and Lackluster Cornerstone Book

<ul>
<li>
<a href="https://www.smartkarma.com/entities/estun-automation-co-ltd" target="_blank" data-smartkarma-citation="entities:25177:1" rel="noopener">Estun Automation (002747 CH)</a>, aims to raise up to US$300m in its H-share listing.</li>
<li>It is a leading industrial robotics company in China, engaged in the sales of (i) industrial robots and intelligent manufacturing systems and (ii) core automation components and motion control systems.</li>
<li>In this note, we look at its past performance and other deal dynamics that might impact the listing.</li>
</ul>



Estun Automation (002747 CH), aims to raise up to US$300m in its H-share listing.
It is a leading industrial robotics company in China, engaged in the sales of (i) industrial robots and intelligent manufacturing systems and (ii) core automation components and motion control systems.
In this note, we look at its past performance and other deal dynamics that might impact the listing.


Aequitas: Estun Automation A/H Listing -  Playing the Robotics Theme

China

Estun Automation Co., Ltd. develops and manufactures mechanical equipment. The Company focuses on metal forming and electro-hydraulic robotic machines. Estun operates in China.

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Estun Automation (002747 CH)

Aequitas: Estun Automation IPO Trading - Weak Demand; Still Expensive

Estun is looking to raise around $405m in its upcoming A/H listing. We have covered various aspects of the deal in our previous note. In this note,...

Nicholas Tan

Pre-IPO Estun Automation (PHIP Updates) - The Business, the Concerns and Thoughts on Valuation

ESTUN is overvalued based on the IPO pricing. As analyzed in the insight, a comfortable valuation range is RMB8 billion-11 billion. The upper limit...

Xinyao (Criss) Wang

Robotphoenix (6871) IPO: Worth a Bet

Robotphoenix's small IPO aims to raise HK$679.2m, but with a promising future in industrial robotics and a leadership position in the industry, it...

Osbert Tang, CFA

Aequitas: Estun Automation A/H Listing - Inadequate A/H and Lackluster Cornerstone Book

Estun Automation is looking to raise up to US$210m in its upcoming Hong Kong IPO. In this note, we examine the IPO dynamics, and look at the firm’s...

Nicholas Tan

Aequitas: Estun Automation A/H Listing - Playing the Robotics Theme

Estun Automation, aims to raise up to US$300m in its H-share listing. In this note, we look at its past performance and other deal dynamics that...

Nicholas Tan

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Aequitas: Estun Automation IPO Trading - Weak Demand; Still Expensive

Estun is looking to raise around $405m in its upcoming A/H listing. We have covered various aspects of the deal in our previous note. In this note,...

Nicholas Tan

Pre-IPO Estun Automation (PHIP Updates) - The Business, the Concerns and Thoughts on Valuation

ESTUN is overvalued based on the IPO pricing. As analyzed in the insight, a comfortable valuation range is RMB8 billion-11 billion. The upper limit...

Xinyao (Criss) Wang

Robotphoenix (6871) IPO: Worth a Bet

​Robotphoenix's small IPO aims to raise HK$679.2m, but with a promising future in industrial robotics and a leadership position in the industry, it...

Osbert Tang, CFA

Aequitas: Estun Automation A/H Listing - Inadequate A/H and Lackluster Cornerstone Book

Estun Automation is looking to raise up to US$210m in its upcoming Hong Kong IPO. In this note, we examine the IPO dynamics, and look at the firm’s...

Nicholas Tan

Aequitas: Estun Automation A/H Listing - Playing the Robotics Theme

Estun Automation, aims to raise up to US$300m in its H-share listing. In this note, we look at its past performance and other deal dynamics that...

Nicholas Tan

Robotphoenix's small IPO aims to raise HK$679.2m, but with a promising future in industrial robotics and a leadership position in the industry, it...