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

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>, 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

Asia and Global Semiconductor and Tech Research

Andrew Lu

Thematic (Sector/Industry)

Despite recent strong performance (17% ytd) across US and Taiwan semiconductor index, we are turning a bit cautious here because Taiwan Semi/Tech July sales are somehow below seasonal and below our expectations. If analysts start to factor in 3-4% appreciation on NT$ against US starting July, earnings prospects in 2H16 for semi and tech companies might not be as strong as market estimated earlier. In conclusion, we believe not much sales momentum left over before we see a seasonal semiconductor…

Despite recent strong performance (17% ytd) across US and Taiwan semiconductor index, we are turning a bit cautious here because Taiwan Semi/Tech July sales are somehow below seasonal and below our expectations. If analysts start to factor in 3-4% appreciation on NT$ against US starting July, earnings prospects in 2H16 for semi and tech companies might not be as strong as market estimated earlier. In conclusion, we believe not much sales momentum left over before we see a seasonal semiconductor…

Insights from Taiwan Semi/Tech July Sales

Starting July 14, 2016, TSMC will first report 2Q16 results and provide 3Q16 guidance to kick off semi/tech earnings season. Our report takeaways suggest strengths in foundry, fabless, and display vendors to drive Taiwan semi sales recovery of 17% y/y in June and 8 out 12 vendors reported a beat on 2Q16 sales guidance. Despite the strengths, we saw weaknesses in power amplifier, touch panel, and solar vendors and our semi leading indicator fell to 8% in June 2016 from this year peak of 31% in…

Starting July 14, 2016, TSMC will first report 2Q16 results and provide 3Q16 guidance to kick off semi/tech earnings season. Our report takeaways suggest strengths in foundry, fabless, and display vendors to drive Taiwan semi sales recovery of 17% y/y in June and 8 out 12 vendors reported a beat on 2Q16 sales guidance. Despite the strengths, we saw weaknesses in power amplifier, touch panel, and solar vendors and our semi leading indicator fell to 8% in June 2016 from this year peak of 31% in…

<ul>
<li>
<a href="https://www.smartkarma.com/entities/huaqin-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:40954:1" rel="noopener">Huaqin Technology (603296 CH)</a>, the world’s largest consumer electronics original design manufacturer, is pre-marketing an H-Share listing to raise around US$1 billion.   </li>
<li>Huaqin ranked as the largest consumer electronics ODM globally in 2024, with 22.5% market share.</li>
<li>The investment case is bearish as Huaqin’s rapid growth has come at the cost of margins and cash generation. Also, the valuation is unattractive compared to peer multiples. </li>
</ul>



Huaqin Technology (603296 CH), the world’s largest consumer electronics original design manufacturer, is pre-marketing an H-Share listing to raise around US$1 billion.   
Huaqin ranked as the largest consumer electronics ODM globally in 2024, with 22.5% market share.
The investment case is bearish as Huaqin’s rapid growth has come at the cost of margins and cash generation. Also, the valuation is unattractive compared to peer multiples. 


Huaqin H Share Listing: The Investment Case

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 analyzed the changes in foreign holdings of TWSE Stocks as of Mar 27th. The aggregated holding was USD1,623.1bn.</li>
<li>We estimate that foreign flows to be outflows of USD3,369mln. We tabulate the league tables for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.</li>
<li>We highlight changes of foreign holdings in TSMC, Compeq Manufacturing, MediaTek, Hon Hai Precision, King Yuan Electronics.</li>
</ul>


We analyzed the changes in foreign holdings of TWSE Stocks as of Mar 27th. The aggregated holding was USD1,623.1bn.
We estimate that foreign flows to be outflows of USD3,369mln. We tabulate the league tables for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.
We highlight changes of foreign holdings in TSMC, Compeq Manufacturing, MediaTek, Hon Hai Precision, King Yuan Electronics.


TWSE Foreign Holding Weekly (Mar 27th): TSMC, Compeq Manufacturing, MediaTek, Hon Hai Precision

Taiwan

Gigabyte Technology Co., Ltd. manufactures and markets computer motherboards and other peripheral products.

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Gigabyte Technology (2376 TT)

Insights from Taiwan Semi/Tech July Sales

Despite recent strong performance (17% ytd) across US and Taiwan semiconductor index, we are turning a bit cautious here because Taiwan Semi/Tech...

Andrew Lu

Points from Taiwan Semi/Tech 2Q Sales

Starting July 14, 2016, TSMC will first report 2Q16 results and provide 3Q16 guidance to kick off semi/tech earnings season. Our report takeaways...

Andrew Lu

TWSE Foreign Holding Weekly (Mar 27th): TSMC, Compeq Manufacturing, MediaTek, Hon Hai Precision

We analyzed TWSE foreign holding data for the past week and highlighted foreign holding changes in TSMC, Compeq Manufacturing, MediaTek, Hon Hai...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

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

Insights from Taiwan Semi/Tech July Sales

Despite recent strong performance (17% ytd) across US and Taiwan semiconductor index, we are turning a bit cautious here because Taiwan Semi/Tech...

Andrew Lu

Points from Taiwan Semi/Tech 2Q Sales

Starting July 14, 2016, TSMC will first report 2Q16 results and provide 3Q16 guidance to kick off semi/tech earnings season. Our report takeaways...

Andrew Lu

Huaqin H Share Listing: The Investment Case

Huaqin, the world’s largest consumer electronics original design manufacturer, is pre-marketing an H-Share listing to raise around US$1 billion. In...

Arun George

TWSE Foreign Holding Weekly (Mar 27th): TSMC, Compeq Manufacturing, MediaTek, Hon Hai Precision

We analyzed TWSE foreign holding data for the past week and highlighted foreign holding changes in TSMC, Compeq Manufacturing, MediaTek, Hon Hai...

Ke Yan, CFA, FRM