HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Luxshare Precision Industry / Equity Capital Markets

<ul>
<li>Luxshare has adopted a dual-drive strategy of internal growth and external acquisition - The automotive and AI computing power businesses are the fruits of its twelve-year-long early planning.</li>
<li>New businesses are in the investment stage and their short-term contribution to profits is limited.There’s a time lag in the transmission of cost pressure caused by the upstream price hikes.</li>
<li>Luxshare's profit CAGR of next three years is 22%. A conservative scenario is P/E of 20x. A neutral scenario is P/E of 25x. An optimistic scenario is P/E of 30x.</li>
</ul>


Luxshare has adopted a dual-drive strategy of internal growth and external acquisition - The automotive and AI computing power businesses are the fruits of its twelve-year-long early planning.
New businesses are in the investment stage and their short-term contribution to profits is limited.There’s a time lag in the transmission of cost pressure caused by the upstream price hikes.
Luxshare's profit CAGR of next three years is 22%. A conservative scenario is P/E of 20x. A neutral scenario is P/E of 25x. An optimistic scenario is P/E of 30x.


Pre-IPO Luxshare Precision Industry (PHIP Updates) - Some Points Worth the Attention

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.

Guangdong Dtech Technology / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/guangdong-dtech-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:50210:1" rel="noopener">Guangdong Dtech Technology</a> (Dtech) aims to raise around US$612m in its H-share listing.</li>
<li>Dtech is an integrated provider of precision manufacturing solutions for key process segments of the global printed circuit board (PCB) fabrication value chain.</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>



Guangdong Dtech Technology (Dtech) aims to raise around US$612m in its H-share listing.
Dtech is an integrated provider of precision manufacturing solutions for key process segments of the global printed circuit board (PCB) fabrication value chain.
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: Guangdong Dtech Technology A/H Listing - Expensive but Similar Listings Have Done Well

<ul>
<li>
<a href="https://www.smartkarma.com/entities/luxshare-precision-industry-co-ltd" target="_blank" data-smartkarma-citation="entities:12310:1" rel="noopener">Luxshare Precision Industry (002475 CH)</a> (LP), a precision intelligent manufacturer, aims to raise around US$3.1bn in its H-share listing.</li>
<li>LP provides cross-sector, vertically integrated development and intelligent manufacturing solutions—from components and modules to systems—for global clients across consumer electronics, automotive electronics, communication and data centers, and other end markets.</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>



Luxshare Precision Industry (002475 CH) (LP), a precision intelligent manufacturer, aims to raise around US$3.1bn in its H-share listing.
LP provides cross-sector, vertically integrated development and intelligent manufacturing solutions—from components and modules to systems—for global clients across consumer electronics, automotive electronics, communication and data centers, and other end markets.
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: Luxshare Precision A/H Listing - Strong Cornerstone, Tight Pricing

Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

Cross Asset Strategy

Last month saw China allocations hit record levels across Asia Ex-Japan, Emerging Market and Global active long-only funds.  The average China weight in Asia Ex-Japan funds stands at a record 50.96%, in active GEM funds a record 37.63% and in active Global funds an all-time high of 5.33%However, these increases have come at the expense of greater concentration.  Among Global managers, the top 10 largest China stock holdings now account for 62% of total China allocations, among GEM and Asia Ex-Japan funds just under 50% - an all-time high across all 3 investor groups. Dedicated China managers, however, are more diversified.  In this analysis, we look at the differences between dedicated China funds and their regional peers.  We find that Asia, GEM and Global managers are more concentrated in the Consumer Discretionary and Communication Services sectors, whereas dedicated China managers are more diversified across Technology, Industrials and Health Care stocks.  Regional funds are also underinvested in China A-Shares compared to dedicated China managers, who are running significant overweights vs the MSCI China benchmark.We identify the next generation of Chinese stocks outside of the big index names by following the lead of dedicated managers in the region.  We provide a list of 40 stocks, identified as 'Next Generation' stocks due to their widespread investment in dedicated China funds, but that are currently underowned by Asia Ex-Japan, GEM and Global investors.The list is headed by <a href="https://www.smartkarma.com/entities/jiangsu-hengrui-medicine-co-ltd" target="_blank" data-smartkarma-citation="entities:14128:1" rel="noopener">Jiangsu Hengrui Medicine (600276 CH)</a>, one of the standout domestic holdings within the Health Care sector, followed by <a href="https://www.smartkarma.com/entities/china-tourism-group-duty-free-corp-ltd" target="_blank" data-smartkarma-citation="entities:12278:1" rel="noopener">China Tourism Group Duty Free Corp Ltd (601888 CH)</a> and <a href="https://www.smartkarma.com/entities/luxshare-precision-industry-co-ltd" target="_blank" data-smartkarma-citation="entities:12310:1" rel="noopener">Luxshare Precision Industry (002475 CH)</a> .Analysis taken from our Global, GEM, Asia Ex-Japan and China fund universes.  Global:  386 Active Funds, combined AUM $750bn                                                                                        GEM:  242 Active Funds, combined AUM $370bn                                                                                          Asia Ex-Japan: 98 Active Funds, combined AUM $70bn                                                                              China:  119 Active Funds, combined AUM $50bn

Last month saw China allocations hit record levels across Asia Ex-Japan, Emerging Market and Global active long-only funds.  The average China weight in Asia Ex-Japan funds stands at a record 50.96%, in active GEM funds a record 37.63% and in active Global funds an all-time high of 5.33%However, these increases have come at the expense of greater concentration.  Among Global managers, the top 10 largest China stock holdings now account for 62% of total China allocations, among GEM and Asia Ex-Japan funds just under 50% - an all-time high across all 3 investor groups. Dedicated China managers, however, are more diversified.  In this analysis, we look at the differences between dedicated China funds and their regional peers.  We find that Asia, GEM and Global managers are more concentrated in the Consumer Discretionary and Communication Services sectors, whereas dedicated China managers are more diversified across Technology, Industrials and Health Care stocks.  Regional funds are also underinvested in China A-Shares compared to dedicated China managers, who are running significant overweights vs the MSCI China benchmark.We identify the next generation of Chinese stocks outside of the big index names by following the lead of dedicated managers in the region.  We provide a list of 40 stocks, identified as 'Next Generation' stocks due to their widespread investment in dedicated China funds, but that are currently underowned by Asia Ex-Japan, GEM and Global investors.The list is headed by Jiangsu Hengrui Medicine (600276 CH), one of the standout domestic holdings within the Health Care sector, followed by China Tourism Group Duty Free Corp Ltd (601888 CH) and Luxshare Precision Industry (002475 CH) .Analysis taken from our Global, GEM, Asia Ex-Japan and China fund universes.  Global:  386 Active Funds, combined AUM $750bn                                                                                        GEM:  242 Active Funds, combined AUM $370bn                                                                                          Asia Ex-Japan: 98 Active Funds, combined AUM $70bn                                                                              China:  119 Active Funds, combined AUM $50bn

China's Next Generation:  Diversifying Away from Tencent and Alibaba.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/guangdong-dtech-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:50210:1" rel="noopener">Guangdong Dtech Technology</a> aims to raise around US$600m in its H-share listing.</li>
<li>Dtech is an integrated provider of precision manufacturing solutions for key process segments of the global printed circuit board (PCB) fabrication value chain.</li>
<li>In this note, we look at its past performance and other deal dynamics that might impact the listing.</li>
</ul>



Guangdong Dtech Technology aims to raise around US$600m in its H-share listing.
Dtech is an integrated provider of precision manufacturing solutions for key process segments of the global printed circuit board (PCB) fabrication value chain.
In this note, we look at its past performance and other deal dynamics that might impact the listing.


Aequitas: Guangdong Dtech Technology A/H Listing - Peak Growth, Margins and Valuations

China

Luxshare Precision Industry Co., Ltd. researches, manufactures and sells connectors. The Company's products are widely used in computers, communication devices, consumer electronics products and automobiles.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Luxshare Precision Industry (002475 CH)

Pre-IPO Luxshare Precision Industry (PHIP Updates) - Some Points Worth the Attention

Luxshare's dual-drive strategy of internal growth and external acquisition has positioned it for success in automotive/AI computing power...

Xinyao (Criss) Wang

Aequitas: Guangdong Dtech Technology A/H Listing - Expensive but Similar Listings Have Done Well

Guangdong Dtech Technology (Dtech) aims to raise around US$612m in its H-share listing. In this note, we talk about the H-share pricing.

Sumeet Singh

Aequitas: Luxshare Precision A/H Listing - Strong Cornerstone, Tight Pricing

Luxshare Precision Industry (002475 CH) (LP), a precision intelligent manufacturer, aims to raise around US$3.1bn in its H-share listing. In this...

Sumeet Singh

China's Next Generation: Diversifying Away from Tencent and Alibaba.

China exposure is becoming more concentrated in a small number of large cap stocks. We identify the next generation of China stocks by analyzing...

Steven Holden

Aequitas: Guangdong Dtech Technology A/H Listing - Peak Growth, Margins and Valuations

Guangdong Dtech Technology aims to raise around US$600m in its H-share listing. In this note, we talk about the company's past performance

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Pre-IPO Luxshare Precision Industry (PHIP Updates) - Some Points Worth the Attention

​Luxshare's dual-drive strategy of internal growth and external acquisition has positioned it for success in automotive/AI computing power...

Xinyao (Criss) Wang

Aequitas: Guangdong Dtech Technology A/H Listing - Expensive but Similar Listings Have Done Well

Guangdong Dtech Technology (Dtech) aims to raise around US$612m in its H-share listing. In this note, we talk about the H-share pricing.

Sumeet Singh

Aequitas: Luxshare Precision A/H Listing - Strong Cornerstone, Tight Pricing

Luxshare Precision Industry (002475 CH) (LP), a precision intelligent manufacturer, aims to raise around US$3.1bn in its H-share listing. In this...

Sumeet Singh

China's Next Generation: Diversifying Away from Tencent and Alibaba.

China exposure is becoming more concentrated in a small number of large cap stocks. We identify the next generation of China stocks by analyzing...

Steven Holden

Aequitas: Guangdong Dtech Technology A/H Listing - Peak Growth, Margins and Valuations

Guangdong Dtech Technology aims to raise around US$600m in its H-share listing. In this note, we talk about the company's past performance

Sumeet Singh

Luxshare's dual-drive strategy of internal growth and external acquisition has positioned it for success in automotive/AI computing power...