APAC IPOs & Placements, Aequitas Research

Hong Jie Seow

APAC 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.

Equity Capital Markets

Shanghai Top Numerical Control Technology / Equity Capital Markets

Shanghai Top Numerical Control Technology (7688 HK)

Shanghai Top Numerical Control Technology

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shanghai-top-numerical-control-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:45697:1" rel="noopener">Shanghai Top Numerical Control Technology (7688 HK)</a> raised around US$224m in its Hong Kong IPO.</li>
<li>Shanghai Top Numerical Control Technology (STNCT) is a leading enterprise in China specializing in the research, design, production, and sales of high-end intelligent manufacturing equipment.</li>
<li>We have looked at the company’s background and pricing in our earlier note, in this note we talk about the trading dynamics.</li>
</ul>



Shanghai Top Numerical Control Technology (7688 HK) raised around US$224m in its Hong Kong IPO.
Shanghai Top Numerical Control Technology (STNCT) is a leading enterprise in China specializing in the research, design, production, and sales of high-end intelligent manufacturing equipment.
We have looked at the company’s background and pricing in our earlier note, in this note we talk about the trading dynamics.


Aequitas: Shanghai Top Numerical IPO Trading - Strong Retail And Insti Demand

Global Healthcare Analyst

Tina Banerjee

<ul>
<li>Shanghai Top Numerical Control launched its Hongkong IPO aiming to raise up to HK$1.7B (~ US$ 220M). They specialise in production and sales of high-end intelligent manufacturing equipment in China.  </li>
<li>Shanghai Top Numerical Control intends to use the IPO proceeds to enhance R&amp;D capabilities, expansion of sales &amp; marketing network, investment &amp; acquisition, loan repayment and working capital.</li>
<li>The near-term challenge for the company is scaling up the business and also deliver sustainable margins alongside that. We would recommend investors to avoid the issue for now.</li>
</ul>


Shanghai Top Numerical Control launched its Hongkong IPO aiming to raise up to HK$1.7B (~ US$ 220M). They specialise in production and sales of high-end intelligent manufacturing equipment in China.  
Shanghai Top Numerical Control intends to use the IPO proceeds to enhance R&amp;D capabilities, expansion of sales &amp; marketing network, investment &amp; acquisition, loan repayment and working capital.
The near-term challenge for the company is scaling up the business and also deliver sustainable margins alongside that. We would recommend investors to avoid the issue for now.


Shanghai Top Numerical Control IPO: Not Flying High Enough Yet, Future Scale & Margins Key Concerns

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shanghai-top-numerical-control-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:45697:1" rel="noopener">Shanghai Top Numerical Control Technology (7688 HK)</a> is looking to raise around US$224m in its upcoming Hong Kong IPO.</li>
<li>Shanghai Top Numerical Control Technology (STNCT) is a leading enterprise in China specializing in the R&amp;D and production of high-end manufacturing equipment, with a focus on five-axis CNC machine tools.</li>
<li>In this note, we talk about the company's past performance and valuations.</li>
</ul>



Shanghai Top Numerical Control Technology (7688 HK) is looking to raise around US$224m in its upcoming Hong Kong IPO.
Shanghai Top Numerical Control Technology (STNCT) is a leading enterprise in China specializing in the R&amp;D and production of high-end manufacturing equipment, with a focus on five-axis CNC machine tools.
In this note, we talk about the company's past performance and valuations.


Aequitas: Shanghai Top Numerical Control IPO - An Expensive Play On China’s Aerospace Ambitions

HK/China Equity Long-Short

Osbert Tang, CFA

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shanghai-top-numerical-control-technology" target="_blank" data-smartkarma-citation="entities:45697:1" rel="noopener">Shanghai Top Numerical Control Technology (7688 HK)</a>'s IPO looks somewhat pricy, in our view, though the current IPO sentiment should bode well for it. </li>
<li>It is expected to stay in the red in FY26, with the adjusted net profit for FY27 and FY28 mostly generated from IPO interest income. </li>
<li>At 13.6x, its P/S is the highest among all peers. While revenue growth is decent, even parking it with the most expensive stock, there is still 15% downside.</li>
</ul>



Shanghai Top Numerical Control Technology (7688 HK)'s IPO looks somewhat pricy, in our view, though the current IPO sentiment should bode well for it. 
It is expected to stay in the red in FY26, with the adjusted net profit for FY27 and FY28 mostly generated from IPO interest income. 
At 13.6x, its P/S is the highest among all peers. While revenue growth is decent, even parking it with the most expensive stock, there is still 15% downside.


Shanghai Top Numerical Control (7688 HK) IPO: Not so Appealing

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>The scarcity of Top Numerical Control (TNC) is reflected in high technological barriers, independent supply chain and strong customer barriers, but there is growth ceiling due to small market size</li>
<li>TNC’s main-business profit remained fragile. Commercialization of six-axis CNC machine tools may disrupt the existing market landscape. Declining utilization rate will lead to overcapacity/impairment issue, thereby dragging down profit level.</li>
<li>Considering policy support for "industrial machines" by government, the urgency of import substitution, and the valuation premium brought by concept of commercial aerospace, TCN’s valuation center could be RMB4.0-7.7 billion.</li>
</ul>


The scarcity of Top Numerical Control (TNC) is reflected in high technological barriers, independent supply chain and strong customer barriers, but there is growth ceiling due to small market size
TNC’s main-business profit remained fragile. Commercialization of six-axis CNC machine tools may disrupt the existing market landscape. Declining utilization rate will lead to overcapacity/impairment issue, thereby dragging down profit level.
Considering policy support for "industrial machines" by government, the urgency of import substitution, and the valuation premium brought by concept of commercial aerospace, TCN’s valuation center could be RMB4.0-7.7 billion.


Pre-IPO Shanghai Top Numerical Control Technology (PHIP Updates) - Some Points Worth the Attention

China

Shanghai Top Numerical Control Technology Co., Ltd. provides intelligent manufacturing and process solutions in aerospace field. The Company researches, manufactures, and distributes five axis computer numerical control machine tools, drilling and riveting robots, intelligent production line system, and more. Shanghai Top Numerical Control Technology serves clients in China.

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Shanghai Top Numerical Control Technology (7688 HK)

Aequitas: Shanghai Top Numerical IPO Trading - Strong Retail And Insti Demand

Shanghai Top Numerical Control Technology raised $224m in Hong Kong IPO, a leading Chinese enterprise in high-end intelligent manufacturing...

Hong Jie Seow

Shanghai Top Numerical Control IPO: Not Flying High Enough Yet, Future Scale & Margins Key Concerns

Shanghai Top Numerical launches Hong Kong IPO to raise funds for growth. Scaling up and sustained margins will be near term concerns for the...

Tina Banerjee

Aequitas: Shanghai Top Numerical Control IPO - An Expensive Play On China’s Aerospace Ambitions

Shanghai Top Numerical Control Technology (7688 HK) plans to raise $224m in Hong Kong IPO, known for five-axis CNC machine tools. Analysis on...

Hong Jie Seow

Shanghai Top Numerical Control (7688 HK) IPO: Not so Appealing

Shanghai Top Numerical Control Technology's IPO may be pricey, with potential for downside despite decent revenue growth and IPO interest income...

Osbert Tang, CFA

Pre-IPO Shanghai Top Numerical Control Technology (PHIP Updates) - Some Points Worth the Attention

Top Numerical Control has high technological barriers, but market size is small. Commercialization of six-axis CNC machines could disrupt market...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Aequitas: Shanghai Top Numerical IPO Trading - Strong Retail And Insti Demand

​Shanghai Top Numerical Control Technology raised $224m in Hong Kong IPO, a leading Chinese enterprise in high-end intelligent manufacturing...

Hong Jie Seow

Shanghai Top Numerical Control IPO: Not Flying High Enough Yet, Future Scale & Margins Key Concerns

​Shanghai Top Numerical launches Hong Kong IPO to raise funds for growth. Scaling up and sustained margins will be near term concerns for the...

Tina Banerjee

Aequitas: Shanghai Top Numerical Control IPO - An Expensive Play On China’s Aerospace Ambitions

​Shanghai Top Numerical Control Technology (7688 HK) plans to raise $224m in Hong Kong IPO, known for five-axis CNC machine tools. Analysis on...

Hong Jie Seow

Shanghai Top Numerical Control (7688 HK) IPO: Not so Appealing

​Shanghai Top Numerical Control Technology's IPO may be pricey, with potential for downside despite decent revenue growth and IPO interest income...

Osbert Tang, CFA

Pre-IPO Shanghai Top Numerical Control Technology (PHIP Updates) - Some Points Worth the Attention

Top Numerical Control has high technological barriers, but market size is small. Commercialization of six-axis CNC machines could disrupt market...

Xinyao (Criss) Wang

Shanghai Top Numerical Control Technology raised $224m in Hong Kong IPO, a leading Chinese enterprise in high-end intelligent manufacturing...

Shanghai Top Numerical launches Hong Kong IPO to raise funds for growth. Scaling up and sustained margins will be near term concerns for the...

Shanghai Top Numerical Control Technology (7688 HK) plans to raise $224m in Hong Kong IPO, known for five-axis CNC machine tools. Analysis on...

Shanghai Top Numerical Control Technology's IPO may be pricey, with potential for downside despite decent revenue growth and IPO interest income...