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

<ul>
<li>
<a href="https://www.smartkarma.com/entities/aux-electric-co-ltd" target="_blank" data-smartkarma-citation="entities:45549:1" rel="noopener">Aux Electric (2580 HK)</a> is the fifth-largest air conditioner provider globally as measured by volume. It has launched an HKEx IPO to raise up to US$462 million.</li>
<li>I discussed the investment case in <strong><em><a href="https://www.smartkarma.com/insights/aux-electric-ipo-the-investment-case" target="_blank" data-smartkarma-citation="insights:198161" rel="noopener">Aux Electric IPO: The Investment Case</a></em></strong>. </li>
<li>In this note, I present my forecasts and valuation. My analysis suggests that the IPO price is attractive.</li>
</ul>



Aux Electric (2580 HK) is the fifth-largest air conditioner provider globally as measured by volume. It has launched an HKEx IPO to raise up to US$462 million.
I discussed the investment case in Aux Electric IPO: The Investment Case. 
In this note, I present my forecasts and valuation. My analysis suggests that the IPO price is attractive.


Aux Electric IPO (2580 HK): Valuation Insights

<ul>
<li>
<a href="https://www.smartkarma.com/entities/aux-electric-co-ltd" target="_blank" data-smartkarma-citation="entities:45549:1" rel="noopener">Aux Electric Co Ltd (0917839D HK)</a> is the fifth-largest air conditioner provider globally as measured by volume. It is seeking to raise US$600 million.     </li>
<li>Aux is known for its aggressive low pricing, which has helped it establish itself as an affordable option to larger peers.</li>
<li>The investment case is bullish due to strong growth, increasing contract liabilities, encouraging margin profile despite the low-price strategy/higher ODM mix and cash generation.  </li>
</ul>



Aux Electric Co Ltd (0917839D HK) is the fifth-largest air conditioner provider globally as measured by volume. It is seeking to raise US$600 million.     
Aux is known for its aggressive low pricing, which has helped it establish itself as an affordable option to larger peers.
The investment case is bullish due to strong growth, increasing contract liabilities, encouraging margin profile despite the low-price strategy/higher ODM mix and cash generation.  


Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

Hisense Home Appliances Group Co., Ltd. H / Index Rebalance

Hisense Home Appliances Group Co., Ltd. H

<ul>
<li>The fall in <a href="https://www.smartkarma.com/entities/hisense-home-appliances-group-co-ltd-h" target="_blank" data-smartkarma-citation="entities:20107:1" rel="noopener">Hisense Home Appliances Group (921 HK)</a>'s stock price over the last year puts it at risk of deletion from a global index in August.</li>
<li>Short interest and positioning have picked up in the stock over the last couple of weeks and there should be short covering against the passive selling.</li>
<li>The AH premium for <a href="https://www.smartkarma.com/entities/hisense-home-appliances-group" target="_blank" data-smartkarma-citation="entities:27165:1" rel="noopener">Hisense Home Appliances Group</a> could increase over the near-term as positioning continues ahead of the passive selling.</li>
</ul>


The fall in Hisense Home Appliances Group (921 HK)'s stock price over the last year puts it at risk of deletion from a global index in August.
Short interest and positioning have picked up in the stock over the last couple of weeks and there should be short covering against the passive selling.
The AH premium for Hisense Home Appliances Group could increase over the near-term as positioning continues ahead of the passive selling.


Hisense Home Appliances (921 HK): Global Index Deletion Coming Up

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

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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.

Quantitative Analysis

<ul>
<li>We analysed the earning revision of component stocks of CSI 300 in the past month.</li>
<li>We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.</li>
<li>We highlighted EPS revision on Cosco Shipping, Longi Green, Tongwei, China Railway, Trina Solar, Xinjiang Daqo, TCL Zhonghuan, Jiangsu Eastern Shenghong.</li>
</ul>


We analysed the earning revision of component stocks of CSI 300 in the past month.
We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.
We highlighted EPS revision on Cosco Shipping, Longi Green, Tongwei, China Railway, Trina Solar, Xinjiang Daqo, TCL Zhonghuan, Jiangsu Eastern Shenghong.


CSI 300 Earning Revision Analysis (May): Cosco Shipping, Longi Green, Tongwei, China Railway

CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Quantamental Investing to beat Benchmarks

A. Stotz Investment Research

We pick stocks. We construct portfolios. All our effort is focused on how to better pick stocks and construct portfolios. We serve fund management companies, family offices, and high net worth individuals.

Thematic (Sector/Industry)

<ul>
<li>We highlight 10 stocks in China that look interesting to us based on our FVMR Methodology</li>
<li>Portfolio changes: Two stocks remain, eight new join the fray</li>
<li>Since inception, it has gained 172% versus the CSI 300 Index’s return of 61%</li>
</ul>


We highlight 10 stocks in China that look interesting to us based on our FVMR Methodology
Portfolio changes: Two stocks remain, eight new join the fray
Since inception, it has gained 172% versus the CSI 300 Index’s return of 61%


China

Gree Electric Appliances, Inc. of Zhuhai manufactures and sells a series of air conditioners.  The different series of air conditioners include window type, split type, floor type, mobile type, mobile split type and ceiling type.  The Company also produces air purifier.

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Gree Electric Appliances (000651 CH)

Aux Electric IPO (2580 HK): Valuation Insights

Aux has launched an HKEx IPO to raise up to US$462 million. In this note, I present my forecasts and valuation. My analysis suggests that the IPO...

Arun George

Aux Electric IPO: The Investment Case

Aux Electric, the fifth-largest air conditioner provider globally, is seeking to raise US$600 million through an HKEx IPO. In this note, I discuss...

Arun George

Hisense Home Appliances (921 HK): Global Index Deletion Coming Up

Hisense Home could be deleted from a global index in 3 weeks. Impact is near 10x ADV. Short interest and positioning have been increasing. AH...

Brian Freitas

CSI 300 Earning Revision Analysis (May): Cosco Shipping, Longi Green, Tongwei, China Railway

We analyzed CSI 300's consensus for May 2025 and highlighted changes of EPS in Cosco Shipping (601919 CH), Longi Green (601012 CH), Tongwei (600438...

Ke Yan, CFA, FRM

The Stocks to Own in China – Vol. 36

We highlight 10 stocks in China that look interesting to us based on our FVMR Methodology. Portfolio changes: Two stocks remain, eight new join the...

A. Stotz Investment Research

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