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

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Foshan Haitian Flavouring & Food Company / Equity Capital Markets

<ul>
<li>Recent positive sentiment towards A/H listings fails to drive Haitian's post-IPO stock price performance, as the market still has doubts about whether Haitian can effectively break through the growth bottleneck.</li>
<li>The core contradiction of Haitian lies in the mismatch between high valuation and slow growth. Haitian’s fundamentals are difficult to support high valuation - 20-30x P/E is a reasonable range.</li>
<li>The intensification of geopolitical tensions has brought considerable uncertainty to the market, which has reduced investors' risk appetite and made them more willing to avoid investment targets with potential risks.</li>
</ul>


Recent positive sentiment towards A/H listings fails to drive Haitian's post-IPO stock price performance, as the market still has doubts about whether Haitian can effectively break through the growth bottleneck.
The core contradiction of Haitian lies in the mismatch between high valuation and slow growth. Haitian’s fundamentals are difficult to support high valuation - 20-30x P/E is a reasonable range.
The intensification of geopolitical tensions has brought considerable uncertainty to the market, which has reduced investors' risk appetite and made them more willing to avoid investment targets with potential risks.


Foshan Haitian Flavouring & Food Company (3288 HK) - The Dull Post-IPO Share Price and the Outlook

<ul>
<li>The essence of Haitian's business is “hard-earned money”.Although performance rebounded in 2024, more observations on net profit are needed.It’s time to take a look at Haitian from a different angle.</li>
<li>The past high valuation of Haitian is due to the market's high expectations for it, or rather, the market's optimism about its performance growth. However, Haitian's moat is not deep.</li>
<li>A comfortable valuation range is 20-30x P/E. Based on the IPO pricing and 2025 forecast, P/E is about 27.5-28.5x. So, we think the IPO pricing range of Haitian is reasonable.</li>
</ul>


The essence of Haitian's business is “hard-earned money”.Although performance rebounded in 2024, more observations on net profit are needed.It’s time to take a look at Haitian from a different angle.
The past high valuation of Haitian is due to the market's high expectations for it, or rather, the market's optimism about its performance growth. However, Haitian's moat is not deep.
A comfortable valuation range is 20-30x P/E. Based on the IPO pricing and 2025 forecast, P/E is about 27.5-28.5x. So, we think the IPO pricing range of Haitian is reasonable.


Pre-IPO Foshan Haitian Flavouring & Food Company - Thoughts on the IPO Pricing

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>
<a href="https://www.smartkarma.com/entities/foshan-haitian-flavouring-food-company" target="_blank" data-smartkarma-citation="entities:44279:1" rel="noopener">Foshan Haitian Flavouring &amp; Food Company (3288 HK)</a> priced its H Share at HK$36.30 to raise HK$10,128.9 million (US$1.3 billion) in gross proceeds. The H Share will be listed tomorrow.</li>
<li>I discussed the H Share listing in <em><strong><a href="https://www.smartkarma.com/insights/foshan-haitian-flavouring-h-share-listing-the-investment-case" target="_blank" data-smartkarma-citation="insights:187902" rel="noopener">Foshan Haitian Flavouring H Share Listing: The Investment Case</a></strong></em>.</li>
<li>Haitian had the highest oversubscription rates among recent large AH listings. The AH discount implied by the offer is attractive.</li>
</ul>



Foshan Haitian Flavouring &amp; Food Company (3288 HK) priced its H Share at HK$36.30 to raise HK$10,128.9 million (US$1.3 billion) in gross proceeds. The H Share will be listed tomorrow.
I discussed the H Share listing in Foshan Haitian Flavouring H Share Listing: The Investment Case.
Haitian had the highest oversubscription rates among recent large AH listings. The AH discount implied by the offer is attractive.


Foshan Haitian Flavouring H Share Listing (3288 HK): Trading Debut

Equity Analyst - Asia Consumer Sector, Investory

Devi Subhakesan

Equity Analyst - Asia Consumer Sector

ASIA CONSUMER: INSIGHTS AND INVESTMENT IDEAS

Investory

Investory is a Singapore-based boutique independent equity research firm founded in January 2017 with a primary focus on consumption themes across Asia-Pacific.

We aim to generate investible ideas based on consumption trends and outlook. We screen our ideas on several parameters - product potential, long-term growth and management commitment being the most critical.  We follow a fundamental analysis approach in our stock selection process and are not restricted by market cap.

We aspire to grow into a leading source of unbiased research, free of conflict of interest, for investors yearning for independent and disciplined analysis. 

We also undertake bespoke research mandates to support our Institutional clients’ investment needs.

Our team comprises of professionals with extensive experience in the Asian equity markets, in areas ranging from research, servicing institutional clients and investment management.

<ul>
<li>Foshan Haitian has priced its Hong Kong offer at the top end (HKD36.3/share) and upsized it to 279 million shares, raising a strong HKD10.1 billion (USD1.3 billion).</li>
<li>With a massive 696x oversubscription and nearly half the deal secured by cornerstone investors, the stock could see a lively debut when it lists on June 19th.</li>
<li>We believe <a href="https://www.smartkarma.com/entities/foshan-haitian-flavouring-food-company" target="_blank" data-smartkarma-citation="entities:44279:1" rel="noopener">Foshan Haitian Flavouring (3288 HK)</a> lacks a clear catalyst for growth and hence the growth expectations built into its Hong Kong pricing may prove difficult to materialise.</li>
</ul>


Foshan Haitian has priced its Hong Kong offer at the top end (HKD36.3/share) and upsized it to 279 million shares, raising a strong HKD10.1 billion (USD1.3 billion).
With a massive 696x oversubscription and nearly half the deal secured by cornerstone investors, the stock could see a lively debut when it lists on June 19th.
We believe Foshan Haitian Flavouring (3288 HK) lacks a clear catalyst for growth and hence the growth expectations built into its Hong Kong pricing may prove difficult to materialise.


Foshan Haitian: Upsized at Top Price. Near Term Upside, Long Term Value Play.

China

Foshan Haitian Flavouring & Food Company Ltd. manufactures food seasonings. The Company develops, produces, and distributes condiments including soy sauce, oyster sauce, vinegar, flavoring sauce, chicken stock, monosodium glutamate, and oil.

Foshan Haitian Flavouring & Food Company (3288 HK)

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Foshan Haitian Flavouring & Food Company (3288 HK)

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

Pre-IPO Foshan Haitian Flavouring & Food Company - Thoughts on the IPO Pricing

Haitian's IPO pricing is in line with our analysis in the insight, which means share price upside potential could be lower-than-expected due to...

Xinyao (Criss) Wang

Foshan Haitian: Upsized at Top Price. Near Term Upside, Long Term Value Play.

Expect a strong listing on Thursday, June 19th. However Foshan Haitian lacks a clear catalyst for growth and the expectations built into its Hong...

Devi Subhakesan

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