HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

<ul>
<li>GEM has established a three-in-one closed-loop model of "critical metal recycling-battery recycling-new energy materials". GEM is superior to competitors in terms of integration/cost optimization in a single manufacturing process.</li>
<li>The slowdown in downstream new energy vehicle and European/American demand growth or subsidy reduction will impact the demand for ternary materials, which may affect the achievement of 2026-2027 growth targets.</li>
<li>There could be a discount of 25%-35% compared to the A-shares. Conservative scenario is P/E of 12-13x. Neutral scenario is P/E of 14-15x. Optimistic scenario is P/E of 16-17x.</li>
</ul>


GEM has established a three-in-one closed-loop model of "critical metal recycling-battery recycling-new energy materials". GEM is superior to competitors in terms of integration/cost optimization in a single manufacturing process.
The slowdown in downstream new energy vehicle and European/American demand growth or subsidy reduction will impact the demand for ternary materials, which may affect the achievement of 2026-2027 growth targets.
There could be a discount of 25%-35% compared to the A-shares. Conservative scenario is P/E of 12-13x. Neutral scenario is P/E of 14-15x. Optimistic scenario is P/E of 16-17x.


Pre-IPO Gem Co Ltd (A/H Listing) - The Strengths Are Obvious, but Challenges Are Inevitable

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.

<ul>
<li>GEM Co. is seeking to raise at least USD100m through an A+H listing. J.P. Morgan, CITIC, and CSI are the sponsors.</li>
<li>We look at the company's core segments: new energy materials and critical metal resources.</li>
<li>We discuss our preliminary view on fair value using A-H premium references.</li>
</ul>


GEM Co. is seeking to raise at least USD100m through an A+H listing. J.P. Morgan, CITIC, and CSI are the sponsors.
We look at the company's core segments: new energy materials and critical metal resources.
We discuss our preliminary view on fair value using A-H premium references.


Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

News from Caixin

Thematic (Sector/Industry)

<ul>
<li>Morowali, an Indonesian county with fewer than 200,000 residents, has attracted billions of dollars in investment from Chinese companies.</li>
<li>All the money went to the same place — industrial parks established by Chinese stainless steel giant Tsingshan Holding Group Ltd. — to set up nickel smelters</li>
<li>Like many other raw materials in the sector, the trend has driven up nickel prices</li>
</ul>


Morowali, an Indonesian county with fewer than 200,000 residents, has attracted billions of dollars in investment from Chinese companies.
All the money went to the same place — industrial parks established by Chinese stainless steel giant Tsingshan Holding Group Ltd. — to set up nickel smelters
Like many other raw materials in the sector, the trend has driven up nickel prices


In Depth: Chinese Companies’ Quest for Indonesian Nickel Grows Perilous

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

MSCI Emerging Markets Index / Technical Analysis

<p>Price and RS uptrends for the MSCI EM index continues to underpin our bullish outlook for emerging market equities -- remain overweight. We continue to attribute much of EM’s outperformance to the intact downtrend in the US dollar (DXY). As long as weakness in the DXY persists we believe EM’s outperformance is likely to continue.</p>

Price and RS uptrends for the MSCI EM index continues to underpin our bullish outlook for emerging market equities -- remain overweight. We continue to attribute much of EM’s outperformance to the intact downtrend in the US dollar (DXY). As long as weakness in the DXY persists we believe EM’s outperformance is likely to continue.

EM Remains Global Leadership -- Remain Overweight

CHINA - Healthcare, Steel, Autos, Education, Research From Beijing

Scott Laprise/ 乐天虎

CHINA - Healthcare, Steel, Autos, Education

<p>This is a big topic that I find myself addressing to investors each quarter for the past 10 years as a steel analyst from where I live in Beijing, China. No steel production cuts have been made by the government and none are expected in the near term. </p><p>The evidence for this view is clear looking at crude steel production data, we see record high levels of production out of China in September.</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/016/382/original/crude%20steel.png?1479190556" class="editor-image img-responsive" data-smartkarma-image-id="16382"></figure><div class="content-caption">Figure 1: World Crude Steel Production - 139m tonnes in September up 2% YoY</div><div class="content-remarks"><p>Source: <a href="http://www.worldsteel.org/media-centre/press-releases/2016/September-2016-crude-steel-production.html" target="_blank">http://www.worldsteel.o</a>…</p></div>

This is a big topic that I find myself addressing to investors each quarter for the past 10 years as a steel analyst from where I live in Beijing, China. No steel production cuts have been made by the government and none are expected in the near term. The evidence for this view is clear looking at crude steel production data, we see record high levels of production out of China in September.Figure 1: World Crude Steel Production - 139m tonnes in September up 2% YoYSource: http://www.worldsteel.o…

Steel in China- No Government Capacity Shutdown

China

GEM Co., Ltd. collects and recycles cobalt and nickel scraps into ultra-fine coba lt and nickel powder and other products.

Price Gauge
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Gem Co Ltd A (002340 CH)

Pre-IPO Gem Co Ltd (A/H Listing) - The Strengths Are Obvious, but Challenges Are Inevitable

GEM's closed-loop model and cost optimization give it a competitive edge, but potential demand slowdowns could impact growth targets. There could...

Xinyao (Criss) Wang

GEM Co. A+H Pre-IPO: Early Thought

GEM Co. is seeking to raise at least USD100m in an A+H listing. This note reviews the business, industry context, and early valuation reference...

Ke Yan, CFA, FRM

In Depth: Chinese Companies’ Quest for Indonesian Nickel Grows Perilous

Morowali, an Indonesian county with fewer than 200,000 residents, has attracted billions of dollars in investment from Chinese companies.

Caixin Global

EM Remains Global Leadership -- Remain Overweight

Price and RS uptrends for the MSCI EM index continues to underpin our bullish outlook for emerging market equities -- remain overweight.

Vermilion Research

Steel in China- No Government Capacity Shutdown

This is a big topic that I find myself addressing to investors each quarter for the past 10 years as a steel analyst from where I live in Beijing,...

Scott Laprise/ 乐天虎

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Pre-IPO Gem Co Ltd (A/H Listing) - The Strengths Are Obvious, but Challenges Are Inevitable

​GEM's closed-loop model and cost optimization give it a competitive edge, but potential demand slowdowns could impact growth targets. There could...

Xinyao (Criss) Wang

GEM Co. A+H Pre-IPO: Early Thought

GEM Co. is seeking to raise at least USD100m in an A+H listing. This note reviews the business, industry context, and early valuation reference...

Ke Yan, CFA, FRM

In Depth: Chinese Companies’ Quest for Indonesian Nickel Grows Perilous

Morowali, an Indonesian county with fewer than 200,000 residents, has attracted billions of dollars in investment from Chinese companies.

Caixin Global

EM Remains Global Leadership -- Remain Overweight

Price and RS uptrends for the MSCI EM index continues to underpin our bullish outlook for emerging market equities -- remain overweight.

Vermilion Research

Steel in China- No Government Capacity Shutdown

This is a big topic that I find myself addressing to investors each quarter for the past 10 years as a steel analyst from where I live in Beijing,...

Scott Laprise/ 乐天虎

GEM's closed-loop model and cost optimization give it a competitive edge, but potential demand slowdowns could impact growth targets. There could...