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 <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>. </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

HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>The A-H share premium has narrowed by an average of 35pp YTD. Despite the recent A-share recovery, the premium remains depressed relative to the start of the year.</li>
<li>Aggressive players may keep playing the leaders in the trend - the Chinese insurers like <a href="https://www.smartkarma.com/entities/china-life-insurance-co-ltd-9f877d22-7cf7-4b00-b525-cec71139f369" target="_blank" data-smartkarma-citation="entities:5794:1" rel="noopener">China Life (2628 HK)</a> and securities companies like <a href="https://www.smartkarma.com/entities/guolian-securities-co-ltd-h" target="_blank" data-smartkarma-citation="entities:535:1" rel="noopener">Guolian Minsheng Securities H (1456 HK)</a>. </li>
<li>Conservative players, however, may look at the laggards in AH premium contraction like the Chinese banks - <a href="https://www.smartkarma.com/entities/industrial-and-commercial-bank-of-china-limited" target="_blank" data-smartkarma-citation="entities:1119:1" rel="noopener">ICBC (H) (1398 HK)</a> and <a href="https://www.smartkarma.com/entities/china-merchants-bank-co-ltd-3388a037-4214-4997-b45d-520518cfdb57" target="_blank" data-smartkarma-citation="entities:10987:1" rel="noopener">China Merchants Bank H (3968 HK)</a>. </li>
</ul>


The A-H share premium has narrowed by an average of 35pp YTD. Despite the recent A-share recovery, the premium remains depressed relative to the start of the year.
Aggressive players may keep playing the leaders in the trend - the Chinese insurers like China Life (2628 HK) and securities companies like Guolian Minsheng Securities H (1456 HK). 
Conservative players, however, may look at the laggards in AH premium contraction like the Chinese banks - ICBC (H) (1398 HK) and China Merchants Bank H (3968 HK). 


China Strategy: Trading the A-H Premium Stocks

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Fuyao Glass Industry Group / Event-Driven

<ul>
<li>HUGE, rampaging, "Beautiful Skew"... unwinds. Big swings in H/A ratios continue, this time on average with 2.3% H underperformance vs As, 4% wider on the highest AH premia.</li>
<li>Last week's long reco on <a href="https://www.smartkarma.com/entities/guangzhou-automobile-group-co-ltd" target="_blank" data-smartkarma-citation="entities:11082:1" rel="noopener">Guangzhou Automobile Group (2238 HK)</a> was up 1 tick on the week in Hs and Hs underperformed the A by 1.5%. </li>
<li>The data tables below update on a daily basis in the <a href="https://www.smartkarma.com/tools" target="_blank" rel="noopener">Tools</a> section of Smartkarma. The <a href="https://www.smartkarma.com/tools/quiddity/south-flow-monitor" target="_blank" rel="noopener">SOUTHBOUND Flow Monitor</a> and <a href="https://www.smartkarma.com/tools/quiddity/ah-shares-monitor" target="_blank" rel="noopener">AH Pairs Monitor</a> are both there free for SK readers.</li>
</ul>


HUGE, rampaging, "Beautiful Skew"... unwinds. Big swings in H/A ratios continue, this time on average with 2.3% H underperformance vs As, 4% wider on the highest AH premia.
Last week's long reco on Guangzhou Automobile Group (2238 HK) was up 1 tick on the week in Hs and Hs underperformed the A by 1.5%. 
The data tables below update on a daily basis in the Tools section of Smartkarma. The SOUTHBOUND Flow Monitor and AH Pairs Monitor are both there free for SK readers.


A/H Premium Tracker (To 22 Aug 2025):  BIG Beautiful Skew Corrects

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 analyse the changes of A-H premium on 157 stocks over the last week. The average A-H premium was 58.0% as of Aug 22nd.</li>
<li>The average A-H premium changed by 3.6ppt week-on-week, led by consumer staples, real estate, materials.</li>
<li>We highlight weekly changes in A-H premium for Air China, Cosco Shipping Development, Ganfeng Lithium, Fuyao Glass.</li>
</ul>


We analyse the changes of A-H premium on 157 stocks over the last week. The average A-H premium was 58.0% as of Aug 22nd.
The average A-H premium changed by 3.6ppt week-on-week, led by consumer staples, real estate, materials.
We highlight weekly changes in A-H premium for Air China, Cosco Shipping Development, Ganfeng Lithium, Fuyao Glass.


A-H Premium Weekly (Aug 22nd): Air China, Cosco Shipping Development, Ganfeng Lithium, Fuyao Glass

<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.  


China

Haier Smart Home Co. Ltd. manufactures and distributes appliances. The Company produces air conditioners, refrigerators, freezers, small household electrical appliances, and other related products. Haier Smart Home markets its products domestically and internationally.

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

Haier Smart Home (6690 HK)

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

China Strategy: Trading the A-H Premium Stocks

The A-H share premium has narrowed by 35pp YTD, with Chinese insurers and securities companies leading the trend for aggressive players, while...

Osbert Tang, CFA

A/H Premium Tracker (To 22 Aug 2025): BIG Beautiful Skew Corrects

BIG BEAUTIFUL SKEW Corrects 2.3%. Feels like more of a correction to come. A shares seeing a real push on the speculative side.

Travis Lundy

A-H Premium Weekly (Aug 22nd): Air China, Cosco Shipping Development, Ganfeng Lithium, Fuyao Glass

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Air China, Cosco Shipping Development, Ganfeng Lithium,...

Ke Yan, CFA, FRM

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

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

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

China Strategy: Trading the A-H Premium Stocks

​The A-H share premium has narrowed by 35pp YTD, with Chinese insurers and securities companies leading the trend for aggressive players, while...

Osbert Tang, CFA

A/H Premium Tracker (To 22 Aug 2025): BIG Beautiful Skew Corrects

BIG BEAUTIFUL SKEW Corrects 2.3%. Feels like more of a correction to come. A shares seeing a real push on the speculative side.

Travis Lundy

A-H Premium Weekly (Aug 22nd): Air China, Cosco Shipping Development, Ganfeng Lithium, Fuyao Glass

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Air China, Cosco Shipping Development, Ganfeng Lithium,...

Ke Yan, CFA, FRM

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

The A-H share premium has narrowed by 35pp YTD, with Chinese insurers and securities companies leading the trend for aggressive players, while...