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.

Quantitative Analysis

<ul>
<li>We analyse the changes of A-H premium on 180 stocks over the last week. The average A-H premium was 67.6% as of Apr 17th.</li>
<li>The average A-H premium changed by -0.6ppt week-on-week, led by information technology, energy, materials and offset by utilities, consumer staples.</li>
<li>We highlight weekly changes in A-H premium for China Longyuan Power, PICC, China Coal Energy, Hans Cnc.</li>
</ul>


We analyse the changes of A-H premium on 180 stocks over the last week. The average A-H premium was 67.6% as of Apr 17th.
The average A-H premium changed by -0.6ppt week-on-week, led by information technology, energy, materials and offset by utilities, consumer staples.
We highlight weekly changes in A-H premium for China Longyuan Power, PICC, China Coal Energy, Hans Cnc.


A-H Premium Weekly (Apr 17th): China Longyuan Power, PICC, China Coal Energy, Hans Cnc

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of April 17th.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight flows for Pop Mart Intl, China Life, Tencent, Xiaomi, SMIC, YOFC, CCB, China Hongqiao, Ping An Insurance.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of April 17th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Pop Mart Intl, China Life, Tencent, Xiaomi, SMIC, YOFC, CCB, China Hongqiao, Ping An Insurance.


HK Connect Flows Weekly (Apr 17th): Pop Mart Intl, China Life, Tencent, Xiaomi, SMIC, YOFC, CCB

HK/China Equity Long-Short

Osbert Tang, CFA

Equity Capital Markets

Huaqin Technology / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/huaqin-co-ltd" target="_blank" data-smartkarma-citation="entities:48099:1" rel="noopener">Huaqin (3296 HK)</a>'s leadership position in the smart product ODM platform business is an important strength, with 3-year EPS CAGR forecast at 22.8%.</li>
<li>At a maximum IPO price of HK$77.70, it is priced at 13.7x FY26 PER. Relative to an average of 13.2x for global peers, it is not particularly cheap.</li>
<li>It should trade at a premium to <a href="https://www.smartkarma.com/entities/shanghai-longcheer-technology-co-ltd-64676fe9-6624-4553-a2d4-3e9ecf3a5d6e" target="_blank" data-smartkarma-citation="entities:46338:1" rel="noopener">Shanghai Longcheer (9611 HK)</a> though. At a 20-25% discount to A-share, Huaqin's H-share is valued at HK$84.70-90.70 (15-16x FY26 PER).</li>
</ul>



Huaqin (3296 HK)'s leadership position in the smart product ODM platform business is an important strength, with 3-year EPS CAGR forecast at 22.8%.
At a maximum IPO price of HK$77.70, it is priced at 13.7x FY26 PER. Relative to an average of 13.2x for global peers, it is not particularly cheap.
It should trade at a premium to Shanghai Longcheer (9611 HK) though. At a 20-25% discount to A-share, Huaqin's H-share is valued at HK$84.70-90.70 (15-16x FY26 PER).


Huaqin Co., Ltd (3296 HK) IPO: Marginally Attractive, at Best

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.

Sigenergy Technology / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sigenergy-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:44468:1" rel="noopener">Sigenergy Technology (6656 HK)</a> priced its IPO at HK$324.20 per share, raising gross proceeds of approximately US$562 million. The shares will begin trading on 16 April.</li>
<li>The IPO was discussed in <a href="https://www.smartkarma.com/insights/sigenergy-ipo-the-investment-case" target="_blank" data-smartkarma-citation="insights:230084" rel="noopener">Sigenergy IPO: The Investment Case</a> and <a href="https://www.smartkarma.com/insights/sigenergy-6656-hk-ipo-valuation-insights" target="_blank" data-smartkarma-citation="insights:230285" rel="noopener">Sigenergy (6656 HK) IPO: Valuation Insights</a>. </li>
<li>The peers' market sentiment has increased since the IPO launch. The retail and international subscription rates are above the median. My analysis suggests that the IPO price is attractive.</li>
</ul>



Sigenergy Technology (6656 HK) priced its IPO at HK$324.20 per share, raising gross proceeds of approximately US$562 million. The shares will begin trading on 16 April.
The IPO was discussed in Sigenergy IPO: The Investment Case and Sigenergy (6656 HK) IPO: Valuation Insights. 
The peers' market sentiment has increased since the IPO launch. The retail and international subscription rates are above the median. My analysis suggests that the IPO price is attractive.


<ul>
<li>
<a href="https://www.smartkarma.com/entities/huaqin-co-ltd" target="_blank" data-smartkarma-citation="entities:48099:1" rel="noopener">Huaqin (3296 HK)</a>, the world’s largest consumer electronics original design manufacturer, has launched an H Share listing to raise US$580 million.</li>
<li>I discussed the H Share listing in <a href="https://www.smartkarma.com/insights/huaqin-h-share-listing-the-investment-case" target="_blank" data-smartkarma-citation="insights:229484" rel="noopener">Huaqin H Share Listing: The Investment Case</a>. </li>
<li>Given my previously discussed bearish investment case and the unattractive AH discount, I would avoid the H Share listing. </li>
</ul>



Huaqin (3296 HK), the world’s largest consumer electronics original design manufacturer, has launched an H Share listing to raise US$580 million.
I discussed the H Share listing in Huaqin H Share Listing: The Investment Case. 
Given my previously discussed bearish investment case and the unattractive AH discount, I would avoid the H Share listing. 


Huaqin H Share Listing (3296 HK): Valuation Insights

China

GigaDevice Semiconductor Inc. is a fabless semiconductor company specializing in advanced memory technologies, microcontrollers (MCUs), sensors, and analog products. Its offerings include SPI NOR Flash, SPI NAND Flash, Parallel NAND Flash, and MCUs based on ARM and RISC-V architectures. The company was founded in April 2005 and is headquartered in Beijing, China.

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GigaDevice Semiconductor (3986 HK)

A-H Premium Weekly (Apr 17th): China Longyuan Power, PICC, China Coal Energy, Hans Cnc

We analyzed A-H premium changes in the past week and highlight A-H premium changes for China Longyuan Power, PICC, China Coal Energy, Hans Cnc.

Ke Yan, CFA, FRM

HK Connect Flows Weekly (Apr 17th): Pop Mart Intl, China Life, Tencent, Xiaomi, SMIC, YOFC, CCB

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Pop Mart Intl, China Life, Tencent, Xiaomi, SMIC, YOFC,...

Ke Yan, CFA, FRM

Huaqin Co., Ltd (3296 HK) IPO: Marginally Attractive, at Best

Huaqin is a smart product ODM platform leader with strong EPS growth, but its IPO price is not cheap compared to global peers. At 20-25% discount...

Osbert Tang, CFA

Sigenergy (6656 HK) IPO: Trading Debut

The peers' market sentiment has increased since the IPO launch. The retail and international subscription rates are above the median of large HKEx...

Arun George

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

A-H Premium Weekly (Apr 17th): China Longyuan Power, PICC, China Coal Energy, Hans Cnc

We analyzed A-H premium changes in the past week and highlight A-H premium changes for China Longyuan Power, PICC, China Coal Energy, Hans Cnc.

Ke Yan, CFA, FRM

HK Connect Flows Weekly (Apr 17th): Pop Mart Intl, China Life, Tencent, Xiaomi, SMIC, YOFC, CCB

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Pop Mart Intl, China Life, Tencent, Xiaomi, SMIC, YOFC,...

Ke Yan, CFA, FRM

Huaqin Co., Ltd (3296 HK) IPO: Marginally Attractive, at Best

​Huaqin is a smart product ODM platform leader with strong EPS growth, but its IPO price is not cheap compared to global peers. At 20-25% discount...

Osbert Tang, CFA

Sigenergy (6656 HK) IPO: Trading Debut

The peers' market sentiment has increased since the IPO launch. The retail and international subscription rates are above the median of large HKEx...

Arun George

Huaqin H Share Listing (3296 HK): Valuation Insights

Huaqin, the world’s largest consumer electronics original design manufacturer, has launched an H Share listing to raise US$580 million. In this...

Arun George

Huaqin is a smart product ODM platform leader with strong EPS growth, but its IPO price is not cheap compared to global peers. At 20-25% discount...