Research from Quam Securities, Quam Securities

Quam Securities Research

Research from Quam Securities

Quam Securities

Since its inception in 1986, Quam Securities Limited (Quam Securities) has grown to become one of the few mid-tier securities brokerages in Hong Kong with global execution capabilities for both private and institutional clients. It boasts a well-established network in Greater China including Taiwan and in major world markets through the Global Alliance Partners (GAP). Quam Securities is well-positioned not only to harness and drive business within the China Tonghai International Financial Limited but also between China and the world markets.

Equity Bottom-Up

<div><div><div><div><ul><li>PAX Global (“PAX”) posted a reasonable set of 1H23 results with net profit decreased by 7.0% y/y to HK$650.6mn, in-line with our forecast.</li><li>Its revenue decreased by 14.7% y/y to HK$3.6bn, as the slowing global economic growth and high interest rates have resulted in more conservative terminal deployment plans among customers.</li><li>An interim DPS of 21 HK cents was declared (1H22: 17 HK cents), translating into a payout ratio of 34.8% (1H22: 26.3%). </li></ul></div></div></div></div>

PAX Global (“PAX”) posted a reasonable set of 1H23 results with net profit decreased by 7.0% y/y to HK$650.6mn, in-line with our forecast.Its revenue decreased by 14.7% y/y to HK$3.6bn, as the slowing global economic growth and high interest rates have resulted in more conservative terminal deployment plans among customers.An interim DPS of 21 HK cents was declared (1H22: 17 HK cents), translating into a payout ratio of 34.8% (1H22: 26.3%). 

PAX Global (327 HK) - 1H23 Payout Ratio Increased to 35%

<ul><li>PAX Global (“PAX”) posted a satisfactory set of 2022 results with net profit increased by 16.7% y/y to HK$1.3bn, in-line with our forecast.</li><li>Its total revenue increased by 12.0% y/y to HK$8.1bn, driven by the strong performance in EMEA (+41.5% y/y) and USCA (+35.4% y/y).</li><li>A final dividend of 19 HK cents was declared, combining with the interim payout, full-year dividend stood at 36 HK cents (2022: 27 HK cents), translating into 30.8% payout ratio.</li></ul>

PAX Global (“PAX”) posted a satisfactory set of 2022 results with net profit increased by 16.7% y/y to HK$1.3bn, in-line with our forecast.Its total revenue increased by 12.0% y/y to HK$8.1bn, driven by the strong performance in EMEA (+41.5% y/y) and USCA (+35.4% y/y).A final dividend of 19 HK cents was declared, combining with the interim payout, full-year dividend stood at 36 HK cents (2022: 27 HK cents), translating into 30.8% payout ratio.

PAX Global (327 HK) - 2022 Results In-Line; Payout Ratio Increased

<ul><li>PAX Global Technology ("PAX") posted a solid set of 1H22 results, with attributable net profit surging by 35.9% y/y to HK$703.8mn, in line with our expectations.</li><li>Thanks to solid revenue growth in all operating regions, its total revenue was up 26.0% y/y to RMB4.2bn.</li><li>An interim DPS of 17 HK cents was declared, up 41.7% y/y and translating into a payout ratio of 26.9%.</li></ul>

PAX Global Technology ("PAX") posted a solid set of 1H22 results, with attributable net profit surging by 35.9% y/y to HK$703.8mn, in line with our expectations.Thanks to solid revenue growth in all operating regions, its total revenue was up 26.0% y/y to RMB4.2bn.An interim DPS of 17 HK cents was declared, up 41.7% y/y and translating into a payout ratio of 26.9%.

PAX Global Technology Limited (327 HK) -1H22 Results in Line Under the Accelerating Cashless World

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

DZT Research

DZT 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.

Event-Driven

<ul>
<li>After one month from the March batch of Hong Kong Connect inclusion, we provide an analysis on the stock inclusion for 19 stocks. </li>
<li>We analysed the inclusion by performance post announcement, performance post inclusion, inflows and analyst coverage.</li>
<li>We observed outperformance post the HSCI announcement but not the actual inclusion despite the fact that southbound inflows has a significant impact on the trading volume. </li>
</ul>


After one month from the March batch of Hong Kong Connect inclusion, we provide an analysis on the stock inclusion for 19 stocks. 
We analysed the inclusion by performance post announcement, performance post inclusion, inflows and analyst coverage.
We observed outperformance post the HSCI announcement but not the actual inclusion despite the fact that southbound inflows has a significant impact on the trading volume. 


HK Connect: March '22 Inclusion Post-Event Analysis

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Index Rebalance

<ul>
<li>Hang Seng announced the results of the March rebalance post market close Friday. Two adds for the HSI, one set of changes for HSCEI, three sets for HSTECH.</li>
<li>An ad hoc rebalance was announced for the KOSDAQ150 following Osstem being designated an 'Administrative Issue'. In IPO world, we have LIC in India and SBI Sumishin NetBank coming up.</li>
<li>Friday was the review cutoff date for the March rebalance of the ASX200 Index. The ATO has provided Aventus with the tax ruling and that creates a timing issue.</li>
</ul>


Hang Seng announced the results of the March rebalance post market close Friday. Two adds for the HSI, one set of changes for HSCEI, three sets for HSTECH.
An ad hoc rebalance was announced for the KOSDAQ150 following Osstem being designated an 'Administrative Issue'. In IPO world, we have LIC in India and SBI Sumishin NetBank coming up.
Friday was the review cutoff date for the March rebalance of the ASX200 Index. The ATO has provided Aventus with the tax ruling and that creates a timing issue.


Index Rebalance & ETF Flow Recap: HSI, HSCEI, HSTECH, HSCI, S&P/ASX, SET50, LIC, SBI Sumishin, Crown

Hong Kong

PAX Global Technology develops and sells electronic funds transfer point-of-sale (EFT-POS) products, including Android smart e-payment solutions, unattended solutions, and classic e-payment solutions. The company also provides software services such as MAXSTORE for terminal management and value-added services. It was founded in 2000 and is headquartered in Wan Chai, Hong Kong.

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PAX Global Technology (327 HK)

PAX Global (327 HK) - 1H23 Payout Ratio Increased to 35%

PAX Global (“PAX”) posted a reasonable set of 1H23 results with net profit decreased by 7.0% y/y to HK$650.6mn, in-line with our forecast.

Quam Securities

PAX Global (327 HK) - 2022 Results In-Line; Payout Ratio Increased

PAX Global (“PAX”) posted a satisfactory set of 2022 results with net profit increased by 16.7% y/y to HK$1.3bn, in-line with our forecast.

Quam Securities

PAX Global Technology Limited (327 HK) -1H22 Results in Line Under the Accelerating Cashless World

PAX Global Technology ("PAX") posted a solid set of 1H22 results, with attributable net profit surging by 35.9% y/y to HK$703.8mn, in line with our...

Quam Securities

HK Connect: March '22 Inclusion Post-Event Analysis

We provide post-event analysis for the March 7th stock inclusion. We analyzed performance for key milestones dates, impact on trading volume and...

Ke Yan, CFA, FRM

Index Rebalance & ETF Flow Recap: HSI, HSCEI, HSTECH, HSCI, S&P/ASX, SET50, LIC, SBI Sumishin, Crown

This recap highlights Insights covering Asian index rebalances (announcements/ forecasts/ IPO Fast Entry/ M&A driven changes). We also highlight...

Brian Freitas

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