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.

Equity Capital Markets

Horizon Construction Development / Equity Capital Markets

Horizon Construction Development (1887128D HK)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/horizon-construction-development" target="_blank" data-smartkarma-citation="entities:35117:1" rel="noopener">Horizon Construction Development (1887128D HK)</a>/HCD, a subsidiary of <a href="https://www.smartkarma.com/entities/far-east-horizon-ltd" target="_blank" data-smartkarma-citation="entities:420:1" rel="noopener">Far East Horizon (3360 HK)</a>, is pre-marketing an HKEx IPO to raise US$200-250 million, according to press reports.</li>
<li>HCD is the largest equipment operation service provider in China in terms of revenue in 2021, according to Frost &amp; Sullivan.</li>
<li>The key elements of the bull case rest on market share gains, an anticipated post-COVID recovery boost, high revenue visibility, stable operating margin and young equipment life.</li>
</ul>



Horizon Construction Development (1887128D HK)/HCD, a subsidiary of Far East Horizon (3360 HK), is pre-marketing an HKEx IPO to raise US$200-250 million, according to press reports.
HCD is the largest equipment operation service provider in China in terms of revenue in 2021, according to Frost &amp; Sullivan.
The key elements of the bull case rest on market share gains, an anticipated post-COVID recovery boost, high revenue visibility, stable operating margin and young equipment life.


Horizon Construction Development IPO: The Bull Case

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Quantitative Analysis

<ul>
<li>Total short interest in Hong Kong is HK$435.1bn, marginally higher from end-December. Short notional has moved in line with the <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">Hong Kong Hang Seng Index (HSI INDEX)</a>. </li>
<li>Total short notional of the KOSPI and KOSDAQ market has moved up since end-December and is in line with the move higher in the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">KOSPI2 INDEX</a> and <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ 150 Index</a>.</li>
<li>Short notional in Taiwan is lower over the quarter even as the <a href="https://www.smartkarma.com/entities/taiwan-stock-exchange-weighted-index" target="_blank" data-smartkarma-citation="entities:26056:1" rel="noopener">TWSE INDEX</a> has moved higher over the period. There has been big short covering on some stocks.</li>
</ul>


Total short interest in Hong Kong is HK$435.1bn, marginally higher from end-December. Short notional has moved in line with the Hong Kong Hang Seng Index (HSI INDEX). 
Total short notional of the KOSPI and KOSDAQ market has moved up since end-December and is in line with the move higher in the KOSPI2 INDEX and KOSDAQ 150 Index.
Short notional in Taiwan is lower over the quarter even as the TWSE INDEX has moved higher over the period. There has been big short covering on some stocks.


Short Interest Movements (Q1 2023): HK, Korea, Taiwan, Australia

Haitong Unitrust International Financial Leasing / Equity Capital Markets

Haitong Unitrust International Financial Leasing (1905 HK)

Haitong Unitrust International Financial Leasing

<p><a href="https://www.smartkarma.com/entities/28044" target="_blank" data-smartkarma-citation="entities:28044:1">Haitong UniTrust International Leasing (1905 HK)</a> has launched its Hong Kong IPO at a price range of HK$1.88-2.08 per share to raise HK$2.3 billion ($290 million) at the mid-point of the IPO price range. Haitong UniTrust is a foreign-funded financial leasing company in China and is the leasing unit of <a href="https://www.smartkarma.com/entities/5665" target="_blank" data-smartkarma-citation="entities:5665:1">Haitong Securities Co Ltd (H) (6837 HK)</a>.</p><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/haitong-unitrust-intl-leasing-ipo-preview-fourth-time-lucky" target="_blank">our IPO initiation note</a>, we noted that Haitong UniTrust’s fundamentals are mixed, which would need to be reflected in the IPO valuation. Overall, our view is that Haitong UniTrust is fairly priced at the proposed IPO price range and would participate in the IPO at most at the low-end of the IPO price range. </p></div>

Haitong UniTrust International Leasing (1905 HK) has launched its Hong Kong IPO at a price range of HK$1.88-2.08 per share to raise HK$2.3 billion ($290 million) at the mid-point of the IPO price range. Haitong UniTrust is a foreign-funded financial leasing company in China and is the leasing unit of Haitong Securities Co Ltd (H) (6837 HK).In our IPO initiation note, we noted that Haitong UniTrust’s fundamentals are mixed, which would need to be reflected in the IPO valuation. Overall, our view is that Haitong UniTrust is fairly priced at the proposed IPO price range and would participate in the IPO at most at the low-end of the IPO price range. 

Haitong UniTrust Intl Leasing IPO: Fair Value

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.

CSSC (Hong Kong) Shipping / Equity Capital Markets

<p>CSSC (HK) Shipping, the ship leasing company under one of the world's largest shipyard CSSC (China State Shipbuilding Corp), is said to be pre-marketing its USD 300 to 500 million IPO. In this insight, we will discuss the following topics:</p>
<ul>
<li>The company's business segments</li>
<li>The company's assets</li>
<li>The industry backdrop</li>
<li>Financial snapshot and highlights</li>
<li>Our thoughts on valuation</li>
</ul>

CSSC (HK) Shipping, the ship leasing company under one of the world's largest shipyard CSSC (China State Shipbuilding Corp), is said to be pre-marketing its USD 300 to 500 million IPO. In this insight, we will discuss the following topics:

The company's business segments
The company's assets
The industry backdrop
Financial snapshot and highlights
Our thoughts on valuation


CSSC (HK) Shipping IPO: A Cyclical Business Masked as an Income Stock

<p><a href="https://www.smartkarma.com/entities/28044" target="_blank" data-smartkarma-citation="entities:28044:1">Haitong UniTrust International Leasing Co Ltd (HUIL HK)</a> is a foreign-funded financial leasing company in China and is the leasing unit of <a href="https://www.smartkarma.com/entities/5665" target="_blank" data-smartkarma-citation="entities:5665:1">Haitong Securities Co Ltd (H) (6837 HK)</a>. Haitong UniTrust will start pre-marketing for a long overdue Hong Kong IPO to raise $500 million, according to press reports. </p><div class="content-highlight"><p>Overall, our analysis suggests that Haitong UniTrust’s fundamentals are mixed which would need to be reflected in IPO valuation. </p></div>

Haitong UniTrust International Leasing Co Ltd (HUIL HK) is a foreign-funded financial leasing company in China and is the leasing unit of Haitong Securities Co Ltd (H) (6837 HK). Haitong UniTrust will start pre-marketing for a long overdue Hong Kong IPO to raise $500 million, according to press reports. Overall, our analysis suggests that Haitong UniTrust’s fundamentals are mixed which would need to be reflected in IPO valuation. 

Haitong UniTrust Intl Leasing IPO Preview: Fourth Time Lucky?

Hong Kong

Far East Horizon is a diversified conglomerate operating across finance and industrial sectors, with core businesses in financial leasing, supply chain finance, and asset investment management. The company also provides industrial services including equipment operation, healthcare, and education. Incorporated in Hong Kong in 2008, its headquarters are located in Hong Kong.

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Far East Horizon (3360 HK)

Horizon Construction Development IPO: The Bull Case

The key elements of the bull case rest on market share gains, an anticipated post-COVID recovery boost, high revenue visibility, stable operating...

Arun George

Short Interest Movements (Q1 2023): HK, Korea, Taiwan, Australia

The Insight looks at movements in short interest across HK, Korea, Taiwan and Australia stocks over Q1 and highlights large increases/decreases in...

Brian Freitas

Haitong UniTrust Intl Leasing IPO: Fair Value

Haitong UniTrust International Leasing (1905 HK) has launched its Hong Kong IPO at a price range of HK$1.88-2.08 per share to raise HK$2.3 billion...

Arun George

CSSC (HK) Shipping IPO: A Cyclical Business Masked as an Income Stock

CSSC (HK) Shipping, the ship leasing company under one of the world's largest shipyard CSSC (China State Shipbuilding Corp), is said to be...

Ke Yan, CFA, FRM

Haitong UniTrust Intl Leasing IPO Preview: Fourth Time Lucky?

Haitong UniTrust International Leasing Co Ltd (HUIL HK) is a foreign-funded financial leasing company in China and is the leasing unit of Haitong...

Arun George

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