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/sg-micro-corp-5c356907-201f-4bd8-8190-24de284e1329" target="_blank" data-smartkarma-citation="entities:50247:1" rel="noopener">SG Micro (3661 HK)</a> priced its H Share at HK$85.20, raising HK$4,601 million (US$587 million) in gross proceeds. The H Share will be listed tomorrow.</li>
<li>I discussed the H Share listing in <a href="https://www.smartkarma.com/insights/sg-micro-h-share-listing-the-investment-case" target="_blank" data-smartkarma-citation="insights:242274" rel="noopener">SG Micro H Share Listing: The Investment Case</a> and <a href="https://www.smartkarma.com/insights/sg-micro-h-share-listing-3661-hk-valuation-insights" target="_blank" data-smartkarma-citation="insights:243268" rel="noopener">SG Micro H Share Listing (3661 HK): Valuation Insights</a>. </li>
<li>The grey market price is up 30%, partly due to A Shares rising 9% since the prospectus was released. The 46.5% AH discount is attractive. </li>
</ul>



SG Micro (3661 HK) priced its H Share at HK$85.20, raising HK$4,601 million (US$587 million) in gross proceeds. The H Share will be listed tomorrow.
I discussed the H Share listing in SG Micro H Share Listing: The Investment Case and SG Micro H Share Listing (3661 HK): Valuation Insights. 
The grey market price is up 30%, partly due to A Shares rising 9% since the prospectus was released. The 46.5% AH discount is attractive. 


SG Micro H Share Listing (3661 HK): Trading Debut

HK/China Equity Long-Short

Osbert Tang, CFA

Anker Innovations Technology / Equity Capital Markets

<ul>
<li>The IPO of <a href="https://www.smartkarma.com/entities/anker-innovations-technology-co-ltd-af2d0155-cc59-4895-b0bb-f09346c5fd0c" target="_blank" data-smartkarma-citation="entities:50274:1" rel="noopener">Anker Innovations (668 HK)</a>, which designs and develops consumer electronics for the global smart devices industry, appears reasonably priced.</li>
<li>It ranked 1st globally in mobile charging products, and its 3-year earnings CAGR is projected to reach 20.7%. The IPO is at a 22.8% discount to the A-share.</li>
<li>The stock should comfortably trade on 20% discount, meaning a fair price of HK$102.95, 3.7% upside. Aggressively, on 10% discount, the upside will reach 16.6%.</li>
</ul>


The IPO of Anker Innovations (668 HK), which designs and develops consumer electronics for the global smart devices industry, appears reasonably priced.
It ranked 1st globally in mobile charging products, and its 3-year earnings CAGR is projected to reach 20.7%. The IPO is at a 22.8% discount to the A-share.
The stock should comfortably trade on 20% discount, meaning a fair price of HK$102.95, 3.7% upside. Aggressively, on 10% discount, the upside will reach 16.6%.


Anker Innovations (668 HK) IPO: A Safe Play

<ul>
<li>
<a href="https://www.smartkarma.com/entities/anker-innovations-technology-co-ltd-af2d0155-cc59-4895-b0bb-f09346c5fd0c" target="_blank" data-smartkarma-citation="entities:50274:1" rel="noopener">Anker Innovations Technology (668 HK)</a>, a leading global provider of core offshore wind power equipment, has launched an H Share listing to raise US$590 million.</li>
<li>I discussed the H Share listing in <a href="https://www.smartkarma.com/insights/anker-innovations-h-share-listing-the-investment-case" target="_blank" data-smartkarma-citation="insights:243150" rel="noopener">Anker Innovations H Share Listing: The Investment Case</a>. </li>
<li>The proposed AH discount of 25.6% (based on the close on 22 June A Share price) is attractive, and I would participate in the H Share listing.</li>
</ul>



Anker Innovations Technology (668 HK), a leading global provider of core offshore wind power equipment, has launched an H Share listing to raise US$590 million.
I discussed the H Share listing in Anker Innovations H Share Listing: The Investment Case. 
The proposed AH discount of 25.6% (based on the close on 22 June A Share price) is attractive, and I would participate in the H Share listing.


Anker Innovations H Share Listing (668 HK): Valuation Insights

Circuit Fabology Microelectronics Equipment / Equity Capital Markets

Circuit Fabology Microelectronics Equipment (9630 HK)

Circuit Fabology Microelectronics Equipment

<ul>
<li>
<a href="https://www.smartkarma.com/entities/circuit-fabology-microelectronics-equipment-co-ltd" target="_blank" data-smartkarma-citation="entities:48834:1" rel="noopener">Circuit Fabology Microelectronics Equipment (9630 HK)</a>, a leading Chinese lithography equipment manufacturer, has launched an H Share listing to raise US$414 million.</li>
<li>I discussed the H Share listing in <a href="https://www.smartkarma.com/insights/circuit-fabology-h-share-listing-9630-hk-the-investment-case" target="_blank" data-smartkarma-citation="insights:243438" rel="noopener">Circuit Fabology H Share Listing (9630 HK): The Investment Case</a>. </li>
<li>The proposed AH discount of 55.3% to 53.0% (based on the close on 16 June A Share price) is attractive, and I would participate in the H Share listing.</li>
</ul>



Circuit Fabology Microelectronics Equipment (9630 HK), a leading Chinese lithography equipment manufacturer, has launched an H Share listing to raise US$414 million.
I discussed the H Share listing in Circuit Fabology H Share Listing (9630 HK): The Investment Case. 
The proposed AH discount of 55.3% to 53.0% (based on the close on 16 June A Share price) is attractive, and I would participate in the H Share listing.


Circuit Fabology H Share Listing (9630 HK): Valuation Insights

<ul>
<li>With an aim to raise HK$8.2bn of net proceeds, <a href="https://www.smartkarma.com/entities/lingyi-itech-guangdong-company" target="_blank" data-smartkarma-citation="entities:50139:1" rel="noopener">Lingyi iTech (1688 HK)</a>'s H-share IPO is a sizeable one and should attract interest. </li>
<li>Earnings record for this high-precision intelligent manufacturing platform is volatile, but should improve in FY27-28. 1Q26 profit drop is distorted by huge exchange losses.  </li>
<li>Priced at 44.6% discount to its A-share and 27.7x PER, the IPO is inexpensive. Assuming a discount of 26.9%, the fair price (HK$13.43) implies a 32% upside.</li>
</ul>


With an aim to raise HK$8.2bn of net proceeds, Lingyi iTech (1688 HK)'s H-share IPO is a sizeable one and should attract interest. 
Earnings record for this high-precision intelligent manufacturing platform is volatile, but should improve in FY27-28. 1Q26 profit drop is distorted by huge exchange losses.  
Priced at 44.6% discount to its A-share and 27.7x PER, the IPO is inexpensive. Assuming a discount of 26.9%, the fair price (HK$13.43) implies a 32% upside.


Lingyi ITech (1688 HK) IPO: Deserves a Narrower Discount

China

Huaqin Technology is a global intelligent product platform enterprise specializing in the research, design, manufacturing, and operation services of smart hardware products. The company's diverse portfolio includes smartphones, tablets, laptops, smart wearables, AIoT devices, data center products, and automotive electronics. Headquartered in Shanghai, China, Huaqin Technology was founded in 2005.

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Huaqin Technology (3296 HK)

Anker Innovations (668 HK) IPO: A Safe Play

Anker Innovations' IPO is reasonably priced with strong growth prospects at a projected 3-year earnings CAGR of 20.7%. This is a potential 16.6%...

Osbert Tang, CFA

Lingyi ITech (1688 HK) IPO: Deserves a Narrower Discount

Lingyi iTech's H-share IPO aims to raise HK$8.2bn, with potential for faster earnings growth in FY27 and FY28. It deserves a narrower discount to...

Osbert Tang, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

SG Micro H Share Listing (3661 HK): Trading Debut

SG Micro priced its H Share at HK$85.20, raising HK$4,601 million (US$587 million) in gross proceeds. The current AH discount of 46.5% is attractive.

Arun George

Anker Innovations (668 HK) IPO: A Safe Play

​Anker Innovations' IPO is reasonably priced with strong growth prospects at a projected 3-year earnings CAGR of 20.7%. This is a potential 16.6%...

Osbert Tang, CFA

Anker Innovations H Share Listing (668 HK): Valuation Insights

Anker Innovations, a leading global provider of core offshore wind power equipment, has launched an H Share listing to raise US$590 million. In...

Arun George

Circuit Fabology H Share Listing (9630 HK): Valuation Insights

Circuit Fabology, a leading Chinese lithography equipment manufacturer, has launched an H Share listing to raise US$414 million. In this note, I...

Arun George

Lingyi ITech (1688 HK) IPO: Deserves a Narrower Discount

​Lingyi iTech's H-share IPO aims to raise HK$8.2bn, with potential for faster earnings growth in FY27 and FY28. It deserves a narrower discount to...

Osbert Tang, CFA

Anker Innovations' IPO is reasonably priced with strong growth prospects at a projected 3-year earnings CAGR of 20.7%. This is a potential 16.6%...

Lingyi iTech's H-share IPO aims to raise HK$8.2bn, with potential for faster earnings growth in FY27 and FY28. It deserves a narrower discount to...