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.

Equity Capital Markets

Zhongyuan Bank, a Henan province-based city commercial, plans to raise US$1bn in its IPO in Hong Kong. In this insight, we will cover the company's fundamentals, analyse growth drivers, compare its operations against those of its peers, and discuss fair value.<h2>Company background</h2>Zhongyuan Bank is the largest city commercial bank in Henan Province. It was formed through the merger of 13 Henan-based city commercial banks in December 2014. The company had a Henan Province market share of 4.3%-6.1% in…

Zhongyuan Bank, a Henan province-based city commercial, plans to raise US$1bn in its IPO in Hong Kong. In this insight, we will cover the company's fundamentals, analyse growth drivers, compare its operations against those of its peers, and discuss fair value.Company backgroundZhongyuan Bank is the largest city commercial bank in Henan Province. It was formed through the merger of 13 Henan-based city commercial banks in December 2014. The company had a Henan Province market share of 4.3%-6.1% in…

Zhongyuan Bank IPO: Worst NPL Ratios Among Peers, Tales of Management Oversight

Research and consultancy, Tabbush Report

Daniel Tabbush

Research and consultancy

Tabbush Report

We provide research and consultancy on Asian banks. Our focus is on what we call “Asian bank research, without the noise.” We are interested in the most critical swing-factors for banks, the NPL and credit cycle, and where we believe there is a gap between perception and reality. We often focus on the less studied components of bank financial statements.  Our research is highly thematic, sometimes examining unlisted banks and companies as a window on mainstream banks. 

Being independent allows us to look at smaller banks, often overlooked by others. Analysis of BIS bank guidelines in the context of Asia, is also a focal point, while we also analyze global banks operating in the region. We use what we believe is the most comprehensive, reliable financials database, SNL Financial. S&P Capital IQ augments our database, with corporate data and CEIC, with economics. 

Asian bank research, without the noise.

Equity Bottom-Up

Often it is the smaller, less known banks that flare up first in a banking crises or an NPL cycle.In China, it may be no different.We can analyze ad nauseum the large banks that most focus on. But the risk is that we miss the big picture; what is happening beneath the surface.What is clear is the China economy is in trouble. The PBOC is cutting rates and lowering reserve requirements. That&rsquo;s a rare, desperate combination. New data on exports only reinforces the economy&rsquo;s weakness.In this note we examine the reaction of&nbsp;some of China's Mid-Tier banks - The Canary in the Coal Mine ?More below the fold.....

Often it is the smaller, less known banks that flare up first in a banking crises or an NPL cycle.In China, it may be no different.We can analyze ad nauseum the large banks that most focus on. But the risk is that we miss the big picture; what is happening beneath the surface.What is clear is the China economy is in trouble. The PBOC is cutting rates and lowering reserve requirements. That&rsquo;s a rare, desperate combination. New data on exports only reinforces the economy&rsquo;s weakness.In this note we examine the reaction of&nbsp;some of China's Mid-Tier banks - The Canary in the Coal Mine ?More below the fold.....

Fringe Banks in China are Telling Us Something

Shengjing Bank files for IPO to raise equity to strengthen its balance sheet.For momentum/liquidity investors, we would take the deal, given the recent strong performance of banking peers. However, investor should be aware that company's relative valuation are not supportive of a strong run-up against its peers.For long-term/value investors, we would like to avoid the deal, given that the valuation of 0.82x-0.86x 15E PBV is merely on-par with nationwide banks and region wide commercial banks’ average valuation of 0.83x, despite that the a higher growth potential and more superior operating indicator could justify somewhat premium, which might be limited.

Shengjing Bank files for IPO to raise equity to strengthen its balance sheet.For momentum/liquidity investors, we would take the deal, given the recent strong performance of banking peers. However, investor should be aware that company's relative valuation are not supportive of a strong run-up against its peers.For long-term/value investors, we would like to avoid the deal, given that the valuation of 0.82x-0.86x 15E PBV is merely on-par with nationwide banks and region wide commercial banks’ average valuation of 0.83x, despite that the a higher growth potential and more superior operating indicator could justify somewhat premium, which might be limited.

Shengjing Bank IPO: Competitive Chinese regional bank, strong peer momentum, valuation rich

China

Shengjing Bank is a commercial bank offering a comprehensive range of banking and financial services, including corporate loans, personal loans, deposit-taking, wealth management, and trade financing, through its Corporate Banking, Retail Banking, and Treasury Business segments. The bank was established in 1997 and is headquartered in Shenyang, Liaoning Province, China.

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Shengjing Bank (2066 HK)

Zhongyuan Bank IPO: Worst NPL Ratios Among Peers, Tales of Management Oversight

Zhongyuan Bank, a Henan province-based city commercial, plans to raise US$1bn in its IPO in Hong Kong. In this insight, we will cover the company's...

Ke Yan, CFA, FRM

Fringe Banks in China are Telling Us Something

Often it is the smaller, less known banks that flare up first in a banking crises or an NPL cycle.In China, it may be no different.We can analyze...

Daniel Tabbush

Shengjing Bank IPO: Competitive Chinese regional bank, strong peer momentum, valuation rich

Shengjing Bank files for IPO to raise equity to strengthen its balance sheet.For momentum/liquidity investors, we would take the deal, given the...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

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