Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

Shenton Research

Shenton Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Equity Capital Markets

<ul>
<li>XREAL, an AR eyewear maker, has filed its prospectus with the HKEX. CICC and Citi are the joint sponsors.</li>
<li>We look at the company's core segments: AR eyewear and accessories.</li>
<li>We put XREAL on Watch. Market leadership and named partners are positives, but cash burn, breakeven risk and product cycles matter.</li>
</ul>


XREAL, an AR eyewear maker, has filed its prospectus with the HKEX. CICC and Citi are the joint sponsors.
We look at the company's core segments: AR eyewear and accessories.
We put XREAL on Watch. Market leadership and named partners are positives, but cash burn, breakeven risk and product cycles matter.


HK/China Equity Long-Short

Osbert Tang, CFA

Luxshare Precision Industry / Equity Capital Markets

<ul>
<li>We consider <a href="https://www.smartkarma.com/entities/luxshare-precision-industry-co-ltd-3f59eaa1-da7f-4d9b-add0-c8efccfee0d5" target="_blank" data-smartkarma-citation="entities:50296:1" rel="noopener">Luxshare Precision Industry (2475 HK)</a>'s H-share IPO not expensive, especially given its gigantic market capitalisation which will attract interests. </li>
<li>Its 3-year EPS CAGR is forecast at 19.2%, and its position as a local and global leader in precision intelligent manufacturing solutions justify a premium to peers. </li>
<li>The IPO price is set at 17.6% discount to the A-share. It can at least trade on 10% discount, translating into a price of HK$69.12, or 9.2% upside.</li>
</ul>


We consider Luxshare Precision Industry (2475 HK)'s H-share IPO not expensive, especially given its gigantic market capitalisation which will attract interests. 
Its 3-year EPS CAGR is forecast at 19.2%, and its position as a local and global leader in precision intelligent manufacturing solutions justify a premium to peers. 
The IPO price is set at 17.6% discount to the A-share. It can at least trade on 10% discount, translating into a price of HK$69.12, or 9.2% upside.


Luxshare Precision (2475 HK) IPO: We See Some Potential Upside

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.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/lingyi-itech-guangdong-co" target="_blank" data-smartkarma-citation="entities:19050:1" rel="noopener">Lingyi iTech Guangdong (002600 CH,</a> LIT), an intelligent manufacturing platform, raised around US$1bn in its H-share listing.</li>
<li>LIT offers a full range of development and manufacturing capabilities that cover core materials, high-precision functional components, modules and assembled systems for diverse end products.</li>
<li>We have looked at the past performance and valuations in our previous note. In this note, we talk about the trading dynamics.</li>
</ul>



Lingyi iTech Guangdong (002600 CH, LIT), an intelligent manufacturing platform, raised around US$1bn in its H-share listing.
LIT offers a full range of development and manufacturing capabilities that cover core materials, high-precision functional components, modules and assembled systems for diverse end products.
We have looked at the past performance and valuations in our previous note. In this note, we talk about the trading dynamics.


Aequitas: Lingyi ITech A/H Trading - Weak Demand but A-Share Rally Will Help

<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

Lingyi iTech Guangdong  / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/lingyi-itech-guangdong-co" target="_blank" data-smartkarma-citation="entities:19050:1" rel="noopener">Lingyi iTech Guangdong (002600 CH)</a> , an intelligent manufacturing platform, aims to raise around US$1bn in its H-share listing.</li>
<li>LIT offers a full range of development and manufacturing capabilities that cover core materials, high-precision functional components, modules and assembled systems for diverse end products.</li>
<li>We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the IPO pricing.</li>
</ul>



Lingyi iTech Guangdong (002600 CH) , an intelligent manufacturing platform, aims to raise around US$1bn in its H-share listing.
LIT offers a full range of development and manufacturing capabilities that cover core materials, high-precision functional components, modules and assembled systems for diverse end products.
We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the IPO pricing.


Aequitas: Lingyi ITech A/H Listing - Not Particularly Cheap

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)

XREAL Pre-IPO: Early Thoughts

XREAL has filed its prospectus with the HKEX. We look at its business, industry, financials, peer valuation and shareholders, and whether the deal...

Ke Yan, CFA, FRM

Luxshare Precision (2475 HK) IPO: We See Some Potential Upside

Luxshare Precision Industry's H-share IPO is attractively priced with strong growth potential and a discount to A-share, offering upside potential.

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

Aequitas: Lingyi ITech A/H Listing - Not Particularly Cheap

Lingyi iTech Guangdong (002600 CH) , an intelligent manufacturing platform, aims to raise around US$1bn in its H-share listing. In this note, we...

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

XREAL Pre-IPO: Early Thoughts

XREAL has filed its prospectus with the HKEX. We look at its business, industry, financials, peer valuation and shareholders, and whether the deal...

Ke Yan, CFA, FRM

Luxshare Precision (2475 HK) IPO: We See Some Potential Upside

​Luxshare Precision Industry's H-share IPO is attractively priced with strong growth potential and a discount to A-share, offering upside potential.

Osbert Tang, CFA

Aequitas: Lingyi ITech A/H Trading - Weak Demand but A-Share Rally Will Help

Lingyi iTech Guangdong (002600 CH, LIT), an intelligent manufacturing platform, raised around US$1bn in its H-share listing. In this note, we talk...

Sumeet Singh

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

Aequitas: Lingyi ITech A/H Listing - Not Particularly Cheap

Lingyi iTech Guangdong (002600 CH) , an intelligent manufacturing platform, aims to raise around US$1bn in its H-share listing. In this note, we...

Sumeet Singh

Luxshare Precision Industry's H-share IPO is attractively priced with strong growth potential and a discount to A-share, offering upside potential.

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...