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 150 stocks over the last week.</li>
<li>The average A-H premium was 85.0% as of Mar 28th. The average A-H premium changed by 1.8ppt week-on-week, led by real estate, communication services, financials.</li>
<li>We highlight weekly changes in A-H premium for Great Wall Motor, China Oilfield Services, Tsingtao Brewery, Cmoc, Xinhua Winshare Publishing And Media.</li>
</ul>


We analyse the changes of A-H premium on 150 stocks over the last week.
The average A-H premium was 85.0% as of Mar 28th. The average A-H premium changed by 1.8ppt week-on-week, led by real estate, communication services, financials.
We highlight weekly changes in A-H premium for Great Wall Motor, China Oilfield Services, Tsingtao Brewery, Cmoc, Xinhua Winshare Publishing And Media.


A-H Premium Weekly (Mar 28th): Great Wall Motor, China Oilfield Services, Tsingtao Brewery, Cmoc

<ul>
<li>We analyse the changes of A-H premium on 150 stocks over the last week. The average A-H premium was 83.3% as of Mar 21st.</li>
<li>The average A-H premium changed by -0.4ppt week-on-week, led by utilities, consumer discretionary, communication services and offset by consumer staples, financials.</li>
<li>We highlight weekly changes in A-H premium for Huadian Power, Livzon Pharma, Joinn Lab, Maanshan Iron&amp;Steel, Datang Intl Power.</li>
</ul>


We analyse the changes of A-H premium on 150 stocks over the last week. The average A-H premium was 83.3% as of Mar 21st.
The average A-H premium changed by -0.4ppt week-on-week, led by utilities, consumer discretionary, communication services and offset by consumer staples, financials.
We highlight weekly changes in A-H premium for Huadian Power, Livzon Pharma, Joinn Lab, Maanshan Iron&amp;Steel, Datang Intl Power.


A-H Premium Weekly (Mar 21st): 47 Stocks at 52 Week High A-H Premium

HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

China National Building Material / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/china-national-building-ma-h" target="_blank" data-smartkarma-citation="entities:184:1" rel="noopener">China National Building Material (3323 HK)</a>'s proposed H-share buyback has been approved. We continue to support existing shareholders to tender their holdings to accept the offer. </li>
<li>The buyback will enhance FY25 and FY26 EPS by 4.8% and 8.2%, respectively. Its book value will increase by 11% compared to without a buyback.</li>
<li>The post-buyback FY25 PER of 9.6x is at a premium to the sector median of 7.6x. The proposal has led to significant outperformance, and we anticipate downside risks on completion. </li>
</ul>



China National Building Material (3323 HK)'s proposed H-share buyback has been approved. We continue to support existing shareholders to tender their holdings to accept the offer. 
The buyback will enhance FY25 and FY26 EPS by 4.8% and 8.2%, respectively. Its book value will increase by 11% compared to without a buyback.
The post-buyback FY25 PER of 9.6x is at a premium to the sector median of 7.6x. The proposal has led to significant outperformance, and we anticipate downside risks on completion. 


China National Building Material (3323 HK): Buyback Approved and Implications

<ul>
<li>
<a href="https://www.smartkarma.com/entities/china-national-building-ma-h" target="_blank" data-smartkarma-citation="entities:184:1" rel="noopener">China National Building Material (3323 HK)</a> published the H-share offer document and if everything is smooth, the payment will be made on 14 Mar 2025. </li>
<li>Its two subsidiaries forecast poor profit/losses for FY24, suggesting a tough operating environment. The buyback valuation remains attractive relative to peer multiples.</li>
<li>For non-holders, at the current price of HK$3.59, we do not think the safety margin is good enough, assuming that most existing shareholders will accept and tender.</li>
</ul>



China National Building Material (3323 HK) published the H-share offer document and if everything is smooth, the payment will be made on 14 Mar 2025. 
Its two subsidiaries forecast poor profit/losses for FY24, suggesting a tough operating environment. The buyback valuation remains attractive relative to peer multiples.
For non-holders, at the current price of HK$3.59, we do not think the safety margin is good enough, assuming that most existing shareholders will accept and tender.


China National Building Material (3323 HK): Publication of Buyback Offer Document

<ul>
<li>The prices of the construction materials stocks collapsed recently, with <a href="https://www.smartkarma.com/entities/china-national-building-ma-h" target="_blank" data-smartkarma-citation="entities:184:1" rel="noopener">China National Building Material (3323 HK)</a> holding firm, thanks to the buyback proposal.</li>
<li>A sustained drop in cement prices and continued weakness in fixed asset investment revealed the challenging demand environment, making CNBM's offer attractive.</li>
<li>The buyback price equals 25.7x and 10.8x PERs for FY24F and FY25F, representing a hefty premium over peers. We continue to believe this is a good exit opportunity. </li>
</ul>


The prices of the construction materials stocks collapsed recently, with China National Building Material (3323 HK) holding firm, thanks to the buyback proposal.
A sustained drop in cement prices and continued weakness in fixed asset investment revealed the challenging demand environment, making CNBM's offer attractive.
The buyback price equals 25.7x and 10.8x PERs for FY24F and FY25F, representing a hefty premium over peers. We continue to believe this is a good exit opportunity. 


China National Building Material (3323 HK): Buyback Getting Even More Convincing

China

Huaxin Cement Co., Ltd. manufactures and distributes building materials. The Company produces cements, concretes, aggregates, and other building materials. Huaxin Cement also conducts environmental protection, new building materials, and equipment manufacturing businesses.

Price Gauge
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Huaxin Cement (6655 HK)

A-H Premium Weekly (Mar 28th): Great Wall Motor, China Oilfield Services, Tsingtao Brewery, Cmoc

We highlight weekly changes in A-H premium for Great Wall Motor, China Oilfield Services, Tsingtao Brewery, Cmoc, Xinhua Winshare Publishing And...

Ke Yan, CFA, FRM

A-H Premium Weekly (Mar 21st): 47 Stocks at 52 Week High A-H Premium

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Huadian Power, Livzon Pharma, Joinn Lab, Maanshan...

Ke Yan, CFA, FRM

China National Building Material (3323 HK): Buyback Approved and Implications

CNBM's H-share buyback will boost EPS by 4.8% in FY25, with an 11% increase in book value. Its above-sector PER and recent share price strengths...

Osbert Tang, CFA

China National Building Material (3323 HK): Publication of Buyback Offer Document

CNBM faces a tough operating environment with poor FY24 profit for subsidiaries. Its buyback valuation stays attractive but the safety margin at...

Osbert Tang, CFA

China National Building Material (3323 HK): Buyback Getting Even More Convincing

Construction materials stock prices collapsed recently except for CNBM due to a buyback proposal, offering an attractive exit opportunity with a...

Osbert Tang, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

A-H Premium Weekly (Mar 28th): Great Wall Motor, China Oilfield Services, Tsingtao Brewery, Cmoc

We highlight weekly changes in A-H premium for Great Wall Motor, China Oilfield Services, Tsingtao Brewery, Cmoc, Xinhua Winshare Publishing And...

Ke Yan, CFA, FRM

A-H Premium Weekly (Mar 21st): 47 Stocks at 52 Week High A-H Premium

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Huadian Power, Livzon Pharma, Joinn Lab, Maanshan...

Ke Yan, CFA, FRM

China National Building Material (3323 HK): Buyback Approved and Implications

​CNBM's H-share buyback will boost EPS by 4.8% in FY25, with an 11% increase in book value. Its above-sector PER and recent share price strengths...

Osbert Tang, CFA

China National Building Material (3323 HK): Publication of Buyback Offer Document

​CNBM faces a tough operating environment with poor FY24 profit for subsidiaries. Its buyback valuation stays attractive but the safety margin at...

Osbert Tang, CFA

China National Building Material (3323 HK): Buyback Getting Even More Convincing

​Construction materials stock prices collapsed recently except for CNBM due to a buyback proposal, offering an attractive exit opportunity with a...

Osbert Tang, CFA

CNBM's H-share buyback will boost EPS by 4.8% in FY25, with an 11% increase in book value. Its above-sector PER and recent share price strengths...

CNBM faces a tough operating environment with poor FY24 profit for subsidiaries. Its buyback valuation stays attractive but the safety margin at...

Construction materials stock prices collapsed recently except for CNBM due to a buyback proposal, offering an attractive exit opportunity with a...