Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, 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.

Event-Driven

Zhejiang Sanhua Intelligent Controls / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/zhejiang-sanhua-intelligent-controls-co-ltd" target="_blank" data-smartkarma-citation="entities:45277:1" rel="noopener">Zhejiang Sanhua Intelligent Controls (2050 HK)</a>, raised around US$1.4bn in its H-share listing. The lockup on its cornerstone investors is set to expire soon.</li>
<li>ZSIC is a market leader in a number of products, with commanding market share both domestically and globally.</li>
<li>In this note, we will talk about the lockup dynamics and possible placement.</li>
</ul>



Zhejiang Sanhua Intelligent Controls (2050 HK), raised around US$1.4bn in its H-share listing. The lockup on its cornerstone investors is set to expire soon.
ZSIC is a market leader in a number of products, with commanding market share both domestically and globally.
In this note, we will talk about the lockup dynamics and possible placement.


Zhejiang Sanhua Intelligent Controls IPO Lockup - US$800m Cornerstone Release

Derivatives and Quantitative Strategist

Gaudenz Schneider

Equity Derivatives

<ul>
<li>This strategy exploits relative value in implied volatilities and combines it with a long Nifty 50 vs. short Nikkei 225 directional view over a period of two months.</li>
<li>The strategy performs well if the Nifty 50 rises <em>and</em> outperforms the Nikkei 225. If both indices decline, neither profit nor loss is incurred.</li>
<li>Leverage increases both the strategy's payoff and probability of success.</li>
</ul>


This strategy exploits relative value in implied volatilities and combines it with a long Nifty 50 vs. short Nikkei 225 directional view over a period of two months.
The strategy performs well if the Nifty 50 rises and outperforms the Nikkei 225. If both indices decline, neither profit nor loss is incurred.
Leverage increases both the strategy's payoff and probability of success.


EQD | Long Nifty 50 Vs. Short Nikkei 225 - A Relative Value Option Strategy with a Kicker

Japan Specialist

Mark Chadwick

Equity Bottom-Up

<ul>
<li>Fanuc returns to revenue growth, driven by robomachine demand in Asia, but core robot sales remain weak after last year’s EV-driven surge.</li>
<li>Management offered no guidance for FY3/26, citing tariff and FX uncertainty; we cut forecasts, with downside risk still looming large.</li>
<li>A ¥50bn buyback provides limited support, but shares may stay stuck until global capex trends and trade policy clarify.</li>
</ul>


Fanuc returns to revenue growth, driven by robomachine demand in Asia, but core robot sales remain weak after last year’s EV-driven surge.
Management offered no guidance for FY3/26, citing tariff and FX uncertainty; we cut forecasts, with downside risk still looming large.
A ¥50bn buyback provides limited support, but shares may stay stuck until global capex trends and trade policy clarify.


Fanuc (6954) | Growth Flickers, Visibility Dims

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.

<ul>
<li>On Friday, after market close, <a href="https://www.smartkarma.com/entities/makino-milling-machine-co" target="_blank" data-smartkarma-citation="entities:5200:1" rel="noopener">Makino Milling Machine Co (6135 JP)</a> finally issued a progress update on the MBK preconditional tender offer. The update, while mixed, should calm nerves. </li>
<li>The positive read-across is a pathway to regulatory approvals, the Homeplus saga has not derailed the offer, and the likely breach of the long-stop date is not a termination event.</li>
<li>The negative read-across is the lack of a revised tender start timeline, an unexplained delay in securing most regulatory approvals and ongoing uncertainty on the long-stop date.</li>
</ul>


On Friday, after market close, Makino Milling Machine Co (6135 JP) finally issued a progress update on the MBK preconditional tender offer. The update, while mixed, should calm nerves. 
The positive read-across is a pathway to regulatory approvals, the Homeplus saga has not derailed the offer, and the likely breach of the long-stop date is not a termination event.
The negative read-across is the lack of a revised tender start timeline, an unexplained delay in securing most regulatory approvals and ongoing uncertainty on the long-stop date.


Makino Milling Machine (6135 JP): Progress Update While Mixed, Should Calm Nerves

<ul>
<li>Consolidated net sales slipped 0.4% to ¥197 billion, while operating income slipped 14.6%, hitting ¥34.9 billion</li>
<li>The yen’s Q3 weakness erased ¥11 billion in unrealised inventory profits, dragging reported operating profit below expectations</li>
<li>Recovery in order book is key positive. However, given the stock's outperformance over the past 3 months, there is less upside. </li>
</ul>


Consolidated net sales slipped 0.4% to ¥197 billion, while operating income slipped 14.6%, hitting ¥34.9 billion
The yen’s Q3 weakness erased ¥11 billion in unrealised inventory profits, dragging reported operating profit below expectations
Recovery in order book is key positive. However, given the stock's outperformance over the past 3 months, there is less upside. 


Japan

FANUC CORPORATION manufactures factory automation (FA) systems and equipments, and robots. The Company's products include computerized numerically-controlled (CNC) equipment, servo motors, laser systems, industrial robots, wire-cut electric discharge machines, and CNC drill.  Fanuc participates in a joint venture with General Electric in the FA field.

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Fanuc Corp (6954 JP)

Zhejiang Sanhua Intelligent Controls IPO Lockup - US$800m Cornerstone Release

Zhejiang Sanhua Intelligent Controls (2050 HK), raised around US$1.4bn in its H-share listing. The lockup on its cornerstone investors is set to...

Sumeet Singh

EQD | Long Nifty 50 Vs. Short Nikkei 225 - A Relative Value Option Strategy with a Kicker

Option strategy: exploit relative value in implied volatilities combined with directional positioning for a leveraged payoff in a long Nifty 50 vs....

Gaudenz Schneider

Fanuc (6954) | Growth Flickers, Visibility Dims

Fanuc sees revenue growth from robomachine demand in Asia, but weak core robot sales. Uncertainty on tariffs and FX leads to forecast cuts and...

Mark Chadwick

Makino Milling Machine (6135 JP): Progress Update While Mixed, Should Calm Nerves

While the update is arguably mixed as it lends support to both the bulls and bears, it is positively skewed, which should calm nerves and narrow...

Arun George

Fanuc (6594) | Robots in Reverse

Company's net sales and operating income decreased due to yen's weakness erasing inventory profits, but recovery in order book is a positive sign...

Mark Chadwick

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Zhejiang Sanhua Intelligent Controls IPO Lockup - US$800m Cornerstone Release

Zhejiang Sanhua Intelligent Controls (2050 HK), raised around US$1.4bn in its H-share listing. The lockup on its cornerstone investors is set to...

Sumeet Singh

EQD | Long Nifty 50 Vs. Short Nikkei 225 - A Relative Value Option Strategy with a Kicker

Option strategy: exploit relative value in implied volatilities combined with directional positioning for a leveraged payoff in a long Nifty 50 vs....

Gaudenz Schneider

Fanuc (6954) | Growth Flickers, Visibility Dims

​Fanuc sees revenue growth from robomachine demand in Asia, but weak core robot sales. Uncertainty on tariffs and FX leads to forecast cuts and...

Mark Chadwick

Makino Milling Machine (6135 JP): Progress Update While Mixed, Should Calm Nerves

While the update is arguably mixed as it lends support to both the bulls and bears, it is positively skewed, which should calm nerves and narrow...

Arun George

Fanuc (6594) | Robots in Reverse

​Company's net sales and operating income decreased due to yen's weakness erasing inventory profits, but recovery in order book is a positive sign...

Mark Chadwick

Fanuc sees revenue growth from robomachine demand in Asia, but weak core robot sales. Uncertainty on tariffs and FX leads to forecast cuts and...

Company's net sales and operating income decreased due to yen's weakness erasing inventory profits, but recovery in order book is a positive sign...