External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

Horizon Construction Development / Equity Bottom-Up

<ul>
<li>Horizon CD’s core net profit in 2023 grew 10% YoY to RMB1bn, in line with our expectation.</li>
<li>While the lack of dividend payout is disappointing given that positive free cash flow is achieved, we believe the 15% share price pullback yesterday was overdone.</li>
<li>We revise down our 2024E-25E earnings forecast by 6-7%.</li>
</ul>
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.


Horizon CD’s core net profit in 2023 grew 10% YoY to RMB1bn, in line with our expectation.
While the lack of dividend payout is disappointing given that positive free cash flow is achieved, we believe the 15% share price pullback yesterday was overdone.
We revise down our 2024E-25E earnings forecast by 6-7%.

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Horizon CD (9930 HK) - 2023 Earnings in Line; 15% Share Price Pullback Looks Overdone

<ul><li>Horizon CD’s share price declined 50% over the past two days, which we believe was a result of share sales from some shareholders of FE Horizon (3360 HK) who need to cash in, regardless of share price level, to fulfil their own financial purposes.</li><li>While we are surprised by the lack of buying force, our analysis suggests that it would only take another 2-3 days to digest the selling pressure.</li><li>We see the sharp pullback a buying opportunity as the sell-off is not fundamentally driven. Horizon CD is trading at 5x 2024E P/E, which is attractive in our view. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Horizon CD’s share price declined 50% over the past two days, which we believe was a result of share sales from some shareholders of FE Horizon (3360 HK) who need to cash in, regardless of share price level, to fulfil their own financial purposes.While we are surprised by the lack of buying force, our analysis suggests that it would only take another 2-3 days to digest the selling pressure.We see the sharp pullback a buying opportunity as the sell-off is not fundamentally driven. Horizon CD is trading at 5x 2024E P/E, which is attractive in our view. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Horizon CD (9930 HK) – Sell-Off Unjustified; Expect Pressure to End in 2-3 Days

<ul><li>Horizon’s reported net profit in 1H23 came in at RMB237mn, up 49% YoY.</li><li>Excluding the listing expense as well as the interest expense and FX change from the redemption liabilities on pre-IPO investment, core net profit moderately grew 10% YoY to RMB318mn which is in line with our expectation.</li><li>We like Horizon’s disciplined cost management, improved free cash flow through the execution of asset-light model and reduced gearing ratio. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Horizon’s reported net profit in 1H23 came in at RMB237mn, up 49% YoY.Excluding the listing expense as well as the interest expense and FX change from the redemption liabilities on pre-IPO investment, core net profit moderately grew 10% YoY to RMB318mn which is in line with our expectation.We like Horizon’s disciplined cost management, improved free cash flow through the execution of asset-light model and reduced gearing ratio. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Horizon CD (9930 HK) – 1H23 Core Profit +10% YoY

<ul><li>As a leading equipment operation service provider with the strong capability of offering integrated services, nationwide service network and proven digitalization capability, Horizon Construction Development is set to capture the fast-growing aerial work platform (AWP) demand and the rising penetration of equipment operation service market.</li><li>In addition, we believe the successful IPO as well as the gradual shift to asset-light re-rent model will help improve balance sheet over the coming two years.</li><li>We initiate coverage on Horizon Construction with BUY rating and TP of HK$4.80.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

As a leading equipment operation service provider with the strong capability of offering integrated services, nationwide service network and proven digitalization capability, Horizon Construction Development is set to capture the fast-growing aerial work platform (AWP) demand and the rising penetration of equipment operation service market.In addition, we believe the successful IPO as well as the gradual shift to asset-light re-rent model will help improve balance sheet over the coming two years.We initiate coverage on Horizon Construction with BUY rating and TP of HK$4.80.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Horizon CD (9930 HK) – No.1 Equipment Operation Service Provider

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

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.

Equity Capital Markets

<ul>
<li>2023 marked our eighth year covering Equity Capital Markets in Asia Pacific. In 2023, IPOs didn’t pick up much from the low base of 2022  while placements showed upward momentum.</li>
<li>We ended 2023 with an accuracy rate of 73.7% across 57 IPOs that we covered and 79.3% across 115 placements.</li>
<li>For those not familiar with our coverage, we aim to cover all IPOs and placements with a minimum deal size of US$100m across Asia-Pacific, including China ADRs.</li>
</ul>


2023 marked our eighth year covering Equity Capital Markets in Asia Pacific. In 2023, IPOs didn’t pick up much from the low base of 2022  while placements showed upward momentum.
We ended 2023 with an accuracy rate of 73.7% across 57 IPOs that we covered and 79.3% across 115 placements.
For those not familiar with our coverage, we aim to cover all IPOs and placements with a minimum deal size of US$100m across Asia-Pacific, including China ADRs.


Aequitas 2023 IPOs and Placements Performance Review - IPOs Forming a Low Base, Placements Pick Up

China

Horizon Construction Development Limited provides engineering and technical services. The Company provides represent tailor made one stop solutions for different businesses or operation scenarios. Horizon Construction Development also offers operating lease services, platform and other services, and other services.

Horizon Construction Development (9930 HK)

Horizon Construction Development (9930 HK)

Horizon CD (9930 HK) – Sell-Off Unjustified; Expect Pressure to End in 2-3 Days

We believe its transformation to the asset-light model will enhance balance sheet and earnings. The overseas expansion will become a new growth...

CMB International

Horizon CD (9930 HK) – 1H23 Core Profit +10% YoY

We like Horizon’s disciplined cost management, improved free cash flow through the execution of asset-light model and reduced gearing ratio.

CMB International

Horizon CD (9930 HK) – No.1 Equipment Operation Service Provider

As a leading equipment operation service provider with the strong capability of offering integrated services, nationwide service network and proven...

CMB International

Aequitas 2023 IPOs and Placements Performance Review - IPOs Forming a Low Base, Placements Pick Up

2023 was our eight year of covering Asia ECM. We ended 2023 with an accuracy rate of 73.7% across 57 IPOs that we covered and 79.3% across 115...

Sumeet Singh

Horizon CD (9930 HK) - 2023 Earnings in Line; 15% Share Price Pullback Looks Overdone

Our new TP of HK$3.7 is based on 9x 2024E P/E, which is 10% discount to the current P/E of Huatie (603300 CH, NR). Horizon CD is trading at only 3x...

CMB International

Horizon CD (9930 HK) – Sell-Off Unjustified; Expect Pressure to End in 2-3 Days

We believe its transformation to the asset-light model will enhance balance sheet and earnings. The overseas expansion will become a new growth...

CMB International

Horizon CD (9930 HK) – 1H23 Core Profit +10% YoY

We like Horizon’s disciplined cost management, improved free cash flow through the execution of asset-light model and reduced gearing ratio.

CMB International

Horizon CD (9930 HK) – No.1 Equipment Operation Service Provider

As a leading equipment operation service provider with the strong capability of offering integrated services, nationwide service network and proven...

CMB International

Aequitas 2023 IPOs and Placements Performance Review - IPOs Forming a Low Base, Placements Pick Up

2023 was our eight year of covering Asia ECM. We ended 2023 with an accuracy rate of 73.7% across 57 IPOs that we covered and 79.3% across 115...

Sumeet Singh