HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Huaqin Technology / Equity Capital Markets

<ul>
<li>Huaqin adopts "3+N+3" global large platform strategy. The core of business model lies in large-scale manufacturing and vertical integration. Due to “Buy &amp; Sell model”, profitability is a concern.</li>
<li>Despite negative operating cash flow, Huaqin still announced RMB1.216 billion dividend. The controlling shareholder has pledged shares for financing, which attracted market attention to the true adequacy of its funds.</li>
<li>Although Huaqin has big revenue scale, its profit quality, cash flow, corporate governance transparency are weaker than peers, making it difficult to enjoy the same level of valuation premium.   </li>
</ul>


Huaqin adopts "3+N+3" global large platform strategy. The core of business model lies in large-scale manufacturing and vertical integration. Due to “Buy &amp; Sell model”, profitability is a concern.
Despite negative operating cash flow, Huaqin still announced RMB1.216 billion dividend. The controlling shareholder has pledged shares for financing, which attracted market attention to the true adequacy of its funds.
Although Huaqin has big revenue scale, its profit quality, cash flow, corporate governance transparency are weaker than peers, making it difficult to enjoy the same level of valuation premium.   


Pre-IPO Huaqin (A/H Listing) - Low Profit Margin Is a Pain Point Due to Flaws in Business Model

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.

<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

APAC IPOs & Placements, Aequitas Research

Nicholas Tan

APAC 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.

<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> now aims to raise up to US$1bn in its H-share listing.</li>
<li>It is a global leading, technology-driven smart product platform providing end-to-end solutions across the entire value chain, including R&amp;D, design, manufacturing, and operations.</li>
<li>We have looked at the firms' past performance in our previous note. In this note, we talk about the PHIP updates.</li>
</ul>



Huaqin Technology (603296 CH) now aims to raise up to US$1bn in its H-share listing.
It is a global leading, technology-driven smart product platform providing end-to-end solutions across the entire value chain, including R&amp;D, design, manufacturing, and operations.
We have looked at the firms' past performance in our previous note. In this note, we talk about the PHIP updates.


Aequitas: Huaqin A/H Listing - PHIP Update - 2H25 Top Line Deceleration, Gross Margins Pressured

<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> , aims to raise up to US$800m in its H-share listing.</li>
<li>It is a global leading, technology-driven smart product platform providing end-to-end solutions across the entire value chain, including R&amp;D, design, manufacturing, and operations.</li>
<li>In this note, we look at its past performance and other deal dynamics that might impact the listing.</li>
</ul>



Huaqin Technology (603296 CH) , aims to raise up to US$800m in its H-share listing.
It is a global leading, technology-driven smart product platform providing end-to-end solutions across the entire value chain, including R&amp;D, design, manufacturing, and operations.
In this note, we look at its past performance and other deal dynamics that might impact the listing.


Aequitas: Huaqin A/H Listing - Had Just Listed Three Years Ago; Margins Remain Volatile

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.

Thematic (Sector/Industry)

<ul><li>Nvidia announced (link) that 1) it is filing applications to resume H20 chip sales to China, 2) the US government has assured that licenses will be granted and delivery is expected to resume soon, and 3) it announced a new, fully compliant RTX PRO GPU for China.</li><li>Also, media reported (link) that AMD planned to restart MI308 shipment to China once the US completes licensing review.</li><li>We believe this is a major positive for China AI server/component suppliers, after the US’s H20/ MI308 export ban started in April, and it also suggests B30’s potential launch in the near future. </li></ul><p><em>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.</em></p>

Nvidia announced (link) that 1) it is filing applications to resume H20 chip sales to China, 2) the US government has assured that licenses will be granted and delivery is expected to resume soon, and 3) it announced a new, fully compliant RTX PRO GPU for China.Also, media reported (link) that AMD planned to restart MI308 shipment to China once the US completes licensing review.We believe this is a major positive for China AI server/component suppliers, after the US’s H20/ MI308 export ban started in April, and it also suggests B30’s potential launch in the near future. 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.

Technology - Implications of Resumption of H20/MI308 Sales in China

China

Huaqin Technology Co., Ltd. operates as a multiple category intelligent communication terminal development company. The Company designs, develops, manufactures, and sells smart phones, tablets, notebooks, smart wearables, and other products. Huaqin Technology markets its products to India, Indonesia, Vietnam, and other countries and regions.

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Huaqin Technology (603296 CH)

Pre-IPO Huaqin (A/H Listing) - Low Profit Margin Is a Pain Point Due to Flaws in Business Model

Huaqin's faces profitability concerns due to its Buy & Sell model. Despite large revenue, questions arise about the company's financial stability...

Xinyao (Criss) Wang

Aequitas: Huaqin A/H Listing - PHIP Update - 2H25 Top Line Deceleration, Gross Margins Pressured

Huaqin now aims to raise up to US$1bn in its H-share listing. We have looked at the firms' past performance in our previous note. In this note, we...

Nicholas Tan

Aequitas: Huaqin A/H Listing - Had Just Listed Three Years Ago; Margins Remain Volatile

Huaqin, aims to raise up to US$800m in its H-share listing. In this note, we look at its past performance and other deal dynamics that might impact...

Nicholas Tan

Technology - Implications of Resumption of H20/MI308 Sales in China

Nvidia announced (link) that 1) it is filing applications to resume H20 chip sales to China, 2) the US government has assured that licenses will be...

CMB International

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Pre-IPO Huaqin (A/H Listing) - Low Profit Margin Is a Pain Point Due to Flaws in Business Model

​Huaqin's faces profitability concerns due to its Buy & Sell model. Despite large revenue, questions arise about the company's financial stability...

Xinyao (Criss) Wang

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

Aequitas: Huaqin A/H Listing - PHIP Update - 2H25 Top Line Deceleration, Gross Margins Pressured

Huaqin now aims to raise up to US$1bn in its H-share listing. We have looked at the firms' past performance in our previous note. In this note, we...

Nicholas Tan

Aequitas: Huaqin A/H Listing - Had Just Listed Three Years Ago; Margins Remain Volatile

Huaqin, aims to raise up to US$800m in its H-share listing. In this note, we look at its past performance and other deal dynamics that might impact...

Nicholas Tan

Technology - Implications of Resumption of H20/MI308 Sales in China

Nvidia announced (link) that 1) it is filing applications to resume H20 chip sales to China, 2) the US government has assured that licenses will be...

CMB International

Huaqin's faces profitability concerns due to its Buy & Sell model. Despite large revenue, questions arise about the company's financial stability...