Chairman, sgtradex

Tan Chin-Hwee

Chairman

Thematic (Sector/Industry)

Two years ago I recalled during May/June period, put premiums were at double digits for the biggest china financial stocks. It was dirt cheap at low valuation pricing (3x p/e; 0.8x p/b) pricing in worse cases scenario. Clear Buy. In the last two months, US$1.7 trillion having been added to China&rsquo;s stock market capitalization with some Chinese valuations now look excessive (according to CLSA, China&rsquo;s nine largest listed stock brokers have a combined market cap US$319bn). Market is indeed hot, as an investor in a start-up P2P china financial portal-an additional 1 million new subscribers signed up in last 3 months! &nbsp;Overall, the influx of foreign money will be a great time for the SOE sector to deleverage and the banks to recapitalize and write down their debt.

Two years ago I recalled during May/June period, put premiums were at double digits for the biggest china financial stocks. It was dirt cheap at low valuation pricing (3x p/e; 0.8x p/b) pricing in worse cases scenario. Clear Buy.  In the last two months, US$1.7 trillion having been added to China&rsquo;s stock market capitalization with some Chinese valuations now look excessive (according to CLSA, China&rsquo;s nine largest listed stock brokers have a combined market cap US$319bn). Market is indeed hot, as an investor in a start-up P2P china financial portal-an additional 1 million new subscribers signed up in last 3 months! &nbsp;Overall, the influx of foreign money will be a great time for the SOE sector to deleverage and the banks to recapitalize and write down their debt.

A herd of fine horses are starting to head back to their home market

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Capital Markets

Fuyao Glass Industry Group / Equity Capital Markets

Fuyao Glass is a global&nbsp;market leader in the automotive glass segment based in China. The company&nbsp;is the dominant player in China with 63% market share by value and is the second biggest player globally with 20% market share by volume. &nbsp;While we like the company's overall prospects, however, at the high end upside might be restraint. We still remain positive on the deal and would subscribe to it given:<ul><li>The company offers a unique proxy to&nbsp;China's growing automotive market. Unlike direct investment in the shares of auto manufacturers,&nbsp;whose performance is volatile as a result of their dependence on new model&nbsp;launches, Fuyao has seen smooth revenue cagr&nbsp;of 16% from 2009 to 2014, with no YoY decline in revenue even in the tough year of 2014, thanks to its product/service quality and diversified customer base.&nbsp;</li><li>The company has been listed in A-share market for more than 20 years and the company is raising capital from international market to fund its international expansion in the US and Russia.&nbsp;</li><li>The company scores well on our IPO evaluation framework, except its valuation appears to be expensive. However, taking into consideration that the peers are not very representative of Fuyao's market leadership, we think some valuation premium to its peers is justifiable. We are also cautious about comparing Fuyao with both its Japanese peers (Asahi Glass and Nippon Glass Sheet) as they have very thin margins, low ROEs and lesser relative exposure in the auto glass.</li><li>The offer&nbsp;prices&nbsp;also represent tight discounts to its A-share compared to other dual listed shares, thus we would accumulate the its shares, but&nbsp;preferably&nbsp;not at the high end.&nbsp;</li></ul>&nbsp;

Fuyao Glass is a global&nbsp;market leader in the automotive glass segment based in China. The company&nbsp;is the dominant player in China with 63% market share by value and is the second biggest player globally with 20% market share by volume. &nbsp;While we like the company's overall prospects, however, at the high end upside might be restraint. We still remain positive on the deal and would subscribe to it given:The company offers a unique proxy to&nbsp;China's growing automotive market. Unlike direct investment in the shares of auto manufacturers,&nbsp;whose performance is volatile as a result of their dependence on new model&nbsp;launches, Fuyao has seen smooth revenue cagr&nbsp;of 16% from 2009 to 2014, with no YoY decline in revenue even in the tough year of 2014, thanks to its product/service quality and diversified customer base.&nbsp;The company has been listed in A-share market for more than 20 years and the company is raising capital from international market to fund its international expansion in the US and Russia.&nbsp;The company scores well on our IPO evaluation framework, except its valuation appears to be expensive. However, taking into consideration that the peers are not very representative of Fuyao's market leadership, we think some valuation premium to its peers is justifiable. We are also cautious about comparing Fuyao with both its Japanese peers (Asahi Glass and Nippon Glass Sheet) as they have very thin margins, low ROEs and lesser relative exposure in the auto glass.The offer&nbsp;prices&nbsp;also represent tight discounts to its A-share compared to other dual listed shares, thus we would accumulate the its shares, but&nbsp;preferably&nbsp;not at the high end.&nbsp;&nbsp;

Fuyao Glass' HK IPO: Reputable auto glass leader - Take the deal

China

Fuyao Glass Industry Group Co Ltd, through its subsidiaries, manufactures and distributes automobile glass, decorated glassware, and other industrial glassware. The Company also provides glass installation service. Fuyao Glass Industry Group markets its products internationally.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Fuyao Group Glass Industr A (600660 CH)

A herd of fine horses are starting to head back to their home market

Two years ago I recalled during May/June period, put premiums were at double digits for the biggest china financial stocks. It was dirt cheap at...

Tan Chin-Hwee

Fuyao Glass' HK IPO: Reputable auto glass leader - Take the deal

Fuyao Glass is a global market leader in the automotive glass segment based in China. The company is the dominant player in China with 63% market...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)