HK/China Equity Long-Short

Osbert Tang, CFA

Equity Capital Markets

Epiworld International / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/epiworld-international-co-ltd" target="_blank" data-smartkarma-citation="entities:47626:1" rel="noopener">EpiWorld International (2726 HK)</a>, while it is a global leader in the silicon carbide (SiC) epitaxy industry, has a weak profit record. Its IPO price looks demanding. </li>
<li>Its net profit will likely be relatively flat in FY26, before picking up in FY27 and FY28. However, whether the industry will bottom in 2H26 remains an unknown.</li>
<li>The stock's valuations of 117x PER and 35.6x P/S are not cheap relative to peers, implying that risks outweigh returns in its H-share IPO.</li>
</ul>



EpiWorld International (2726 HK), while it is a global leader in the silicon carbide (SiC) epitaxy industry, has a weak profit record. Its IPO price looks demanding. 
Its net profit will likely be relatively flat in FY26, before picking up in FY27 and FY28. However, whether the industry will bottom in 2H26 remains an unknown.
The stock's valuations of 117x PER and 35.6x P/S are not cheap relative to peers, implying that risks outweigh returns in its H-share IPO.


EpiWorld Intl (2726 HK) IPO: A Pricy (And Risky) Choice

US-EU Index Rebalances / Quantitative Researcher

Dimitris Ioannidis

Global Financial Data and Analytics Platform

ORTEX

ORTEX is a global financial data and analytics platform providing real-time securities lending and short interest data, index rebalance data, holdings and insider transactions, trading signals, corporate actions and news,  stock machine learning and factor scores and other analytics. The majority of the data are downloadable and accessible through APIs.

Index Rebalance

<ul>
<li>
<a href="https://www.smartkarma.com/entities/coreweave-inc" target="_blank" data-smartkarma-citation="entities:44471:1" rel="noopener">CoreWeave (CRWV US)</a> and <a href="https://www.smartkarma.com/entities/chime-financial-inc" target="_blank" data-smartkarma-citation="entities:45194:1" rel="noopener">Chime (CHYM US)</a> are expected inclusions in All-World and SmallCap, respectively, following lock-up expiry which increases public voting rights above 5%.</li>
<li>
<a href="https://www.smartkarma.com/entities/figure-technology-solutions-inc" target="_blank" data-smartkarma-citation="entities:45672:1" rel="noopener">Figure Technology Solutions (FIGR US)</a> and <a href="https://www.smartkarma.com/entities/bullish-us-llc" target="_blank" data-smartkarma-citation="entities:45521:1" rel="noopener">Bullish US (BLSH US)</a> are close to the float cap threshold due to their low IPO floats, therefore their inclusion is uncertain.</li>
<li>
<a href="https://www.smartkarma.com/entities/solstice-advanced-materials" target="_blank" data-smartkarma-citation="entities:45953:1" rel="noopener">Solstice Advanced Materials (SOLS US)</a> is projected to migrate from All-World to SmallCap following its <a href="https://www.smartkarma.com/entities/honeywell-international-inc" target="_blank" data-smartkarma-citation="entities:16765:1" rel="noopener">Honeywell</a> spinoff in October 2025.</li>
</ul>



CoreWeave (CRWV US) and Chime (CHYM US) are expected inclusions in All-World and SmallCap, respectively, following lock-up expiry which increases public voting rights above 5%.

Figure Technology Solutions (FIGR US) and Bullish US (BLSH US) are close to the float cap threshold due to their low IPO floats, therefore their inclusion is uncertain.

Solstice Advanced Materials (SOLS US) is projected to migrate from All-World to SmallCap following its Honeywell spinoff in October 2025.


Global Index IPO Forecasts - Mar26: CoreWeave & Chime Among Candidates

<ul>
<li>
<a href="https://www.smartkarma.com/entities/verisure-holding-ab" target="_blank" data-smartkarma-citation="entities:43889:1" rel="noopener">Verisure Holding (VSURE SS)</a> is forecasted to be added to Global Standard following its IPO in October 2025, provided its index nationality is assigned to Sweden.</li>
<li>
<a href="https://www.smartkarma.com/entities/servicetitan-inc" target="_blank" data-smartkarma-citation="entities:44109:1" rel="noopener">ServiceTitan (TTAN US)</a> is expected to be added to Global SmallCap following its IPO lock-up.</li>
<li>
<a href="https://www.smartkarma.com/entities/innoscience-suzhou-technology" target="_blank" data-smartkarma-citation="entities:44185:1" rel="noopener">InnoScience (2577 HK)</a> and <a href="https://www.smartkarma.com/entities/bloks-group-limited" target="_blank" data-smartkarma-citation="entities:43648:1" rel="noopener">Bloks (325 HK)</a> are projected IPO additions following their 12-month IPO lock-up expiry.</li>
</ul>



Verisure Holding (VSURE SS) is forecasted to be added to Global Standard following its IPO in October 2025, provided its index nationality is assigned to Sweden.

ServiceTitan (TTAN US) is expected to be added to Global SmallCap following its IPO lock-up.

InnoScience (2577 HK) and Bloks (325 HK) are projected IPO additions following their 12-month IPO lock-up expiry.


Global Index IPO Forecasts - Feb26: InnoScience, Bloks, Verisure, ServiceTitan Among Candidates

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>HK$101bn+/Day of gross SOUTHBOUND activity last week, and net buying of HK$23+bn. The gross volumes are down a bit but net continues strongly.</li>
<li>China Mobile was shellacked with net selling every day last week (actually net sold every day since 11 Dec). The numbers are very impressive.</li>
<li>ETFs were net purchased in some size last week which usually means a swing to stocks and sale of ETFs this week.</li>
</ul>


HK$101bn+/Day of gross SOUTHBOUND activity last week, and net buying of HK$23+bn. The gross volumes are down a bit but net continues strongly.
China Mobile was shellacked with net selling every day last week (actually net sold every day since 11 Dec). The numbers are very impressive.
ETFs were net purchased in some size last week which usually means a swing to stocks and sale of ETFs this week.


HK Connect SOUTHBOUND Flows (Week To 23 Jan 2026) - China Mobile Shellacked Again. Tech Bought Again

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>Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.</li>
<li>On the IPO front, a number of ~US$1bn deals could launch this week.</li>
<li>On the placement front, flow continues to slowdown going into year end earnings season.</li>
</ul>


Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
On the IPO front, a number of ~US$1bn deals could launch this week.
On the placement front, flow continues to slowdown going into year end earnings season.


Aequitas ECM Weekly (26 January 2026)- Busy Ming, Montage, Eastroc, Muyuan, Longcheer, Sinotruk,

Hong Kong

Innoscience is the largest 8-inch Integrated Device Manufacture (IDM) fully focused on GaN technology in the world.

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InnoScience Suzhou Technology (2577 HK)

EpiWorld Intl (2726 HK) IPO: A Pricy (And Risky) Choice

EpiWorld International is a global leader in SiC epitaxy but has a weak profit record, with a demanding IPO price and an uncertain industry...

Osbert Tang, CFA

Global Index IPO Forecasts - Mar26: CoreWeave & Chime Among Candidates

CoreWeave and Chime are expected to be included in All‑World and SmallCap in March 2026, respectively, following their lock‑up expiries, which...

Dimitris Ioannidis

Global Index IPO Forecasts - Feb26: InnoScience, Bloks, Verisure, ServiceTitan Among Candidates

Forecasted inclusions for the Feb26 Global Index review from IPOs within the past year include Verisure, ServiceTitan, InnoScience and Bloks.

Dimitris Ioannidis

HK Connect SOUTHBOUND Flows (Week To 23 Jan 2026) - China Mobile Shellacked Again. Tech Bought Again

SOUTHBOUND investors continued net buying HK stocks last week at a similar pace to the previous two weeks. They sold China Mobile at an even faster...

Travis Lundy

Aequitas ECM Weekly (26 January 2026)- Busy Ming, Montage, Eastroc, Muyuan, Longcheer, Sinotruk,

Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

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EpiWorld Intl (2726 HK) IPO: A Pricy (And Risky) Choice

​EpiWorld International is a global leader in SiC epitaxy but has a weak profit record, with a demanding IPO price and an uncertain industry...

Osbert Tang, CFA

Global Index IPO Forecasts - Mar26: CoreWeave & Chime Among Candidates

CoreWeave and Chime are expected to be included in All‑World and SmallCap in March 2026, respectively, following their lock‑up expiries, which...

Dimitris Ioannidis

Global Index IPO Forecasts - Feb26: InnoScience, Bloks, Verisure, ServiceTitan Among Candidates

Forecasted inclusions for the Feb26 Global Index review from IPOs within the past year include Verisure, ServiceTitan, InnoScience and Bloks.

Dimitris Ioannidis

HK Connect SOUTHBOUND Flows (Week To 23 Jan 2026) - China Mobile Shellacked Again. Tech Bought Again

SOUTHBOUND investors continued net buying HK stocks last week at a similar pace to the previous two weeks. They sold China Mobile at an even faster...

Travis Lundy

Aequitas ECM Weekly (26 January 2026)- Busy Ming, Montage, Eastroc, Muyuan, Longcheer, Sinotruk,

Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.

Sumeet Singh

EpiWorld International is a global leader in SiC epitaxy but has a weak profit record, with a demanding IPO price and an uncertain industry...