HK/China Equity Long-Short

Osbert Tang, CFA

Equity Capital Markets

Shenzhen Senior Technology-A / Equity Capital Markets

<ul>
<li>The poor earnings record for <a href="https://www.smartkarma.com/entities/shenzhen-senior-technology-a" target="_blank" data-smartkarma-citation="entities:29612:1" rel="noopener">Shenzhen Senior Technology Material (6067 HK)</a> is a major negative issue for the IPO. Its 1Q26 profit collapsed 59.2%.</li>
<li>The steep 57.3% H-share IPO discount to the current A-share is the fourth-lowest since 2025. Such a low valuation reflects the concerns about its outlook. </li>
<li>The IPO price implies a 91.1x FY26 PER, compared with the average of 75.3x for the A-share peers and 14.9x for global peers. Its PER are not attractive.</li>
</ul>


The poor earnings record for Shenzhen Senior Technology Material (6067 HK) is a major negative issue for the IPO. Its 1Q26 profit collapsed 59.2%.
The steep 57.3% H-share IPO discount to the current A-share is the fourth-lowest since 2025. Such a low valuation reflects the concerns about its outlook. 
The IPO price implies a 91.1x FY26 PER, compared with the average of 75.3x for the A-share peers and 14.9x for global peers. Its PER are not attractive.


Shenzhen Senior Technology Material (6067 HK) IPO: We Are Not Fans

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.

Quantitative Analysis

<ul>
<li>We analyse the changes of A-H premium on 185 stocks over the last week. The average A-H premium was 76.4% as of Jun 12th.</li>
<li>The average A-H premium changed by 0.5ppt week-on-week, led by information technology, health care, utilities and offset by real estate, consumer staples, materials.</li>
<li>We highlight weekly changes in A-H premium for Remegen, ZTE, Chalco, Shandong Gold Mining Co Lt-H.</li>
</ul>


We analyse the changes of A-H premium on 185 stocks over the last week. The average A-H premium was 76.4% as of Jun 12th.
The average A-H premium changed by 0.5ppt week-on-week, led by information technology, health care, utilities and offset by real estate, consumer staples, materials.
We highlight weekly changes in A-H premium for Remegen, ZTE, Chalco, Shandong Gold Mining Co Lt-H.


A-H Premium Weekly (Jun 12th): Remegen, ZTE, Chalco, Shandong Gold Mining Co Lt-H

Circuit Fabology Microelectronics Equipment / Equity Capital Markets

Circuit Fabology Microelectronics Equipment (9630 HK)

Circuit Fabology Microelectronics Equipment

<ul>
<li>Circuit Fabology has passed its A+H listing hearing. CICC is the sole sponsor.</li>
<li>We look at the company's core segments: PCB direct imaging equipment and semiconductor direct-writing lithography equipment.</li>
<li>We discussed our preliminary thoughts on the company's fair value based on A-H premium.</li>
</ul>


Circuit Fabology has passed its A+H listing hearing. CICC is the sole sponsor.
We look at the company's core segments: PCB direct imaging equipment and semiconductor direct-writing lithography equipment.
We discussed our preliminary thoughts on the company's fair value based on A-H premium.


Circuit Fabology (芯碁微装) A+H Pre-IPO: Early Thoughts

<ul>
<li>We analyse the changes of A-H premium on 184 stocks over the last week. The average A-H premium was 76.3% as of Jun 5th.</li>
<li>The average A-H premium changed by -0.6ppt week-on-week, led by health care, consumer discretionary, consumer staples and offset by materials, information technology, energy.</li>
<li>We highlight weekly changes in A-H premium for Yankuang Energy, Haier Smarthome, Times Electric, China Coal, Ping An, Cgn Power.</li>
</ul>


We analyse the changes of A-H premium on 184 stocks over the last week. The average A-H premium was 76.3% as of Jun 5th.
The average A-H premium changed by -0.6ppt week-on-week, led by health care, consumer discretionary, consumer staples and offset by materials, information technology, energy.
We highlight weekly changes in A-H premium for Yankuang Energy, Haier Smarthome, Times Electric, China Coal, Ping An, Cgn Power.


A-H Premium Weekly (Jun 5th): Yankuang Energy, Haier Smarthome, Times Electric, China Coal, Ping An

<ul>
<li>We analyze the monthly Hong Kong Connect flows with our data engine for the month ended May 29th.</li>
<li>We estimate that the net southbound flows in May were $0.6bn Outflows.</li>
<li>We tabulate the top stocks by inflows, outflows, stake changes, and holdings, and highlight flows for SMIC, Alibaba, Tencent, China Mobile, Petrochina.</li>
</ul>


We analyze the monthly Hong Kong Connect flows with our data engine for the month ended May 29th.
We estimate that the net southbound flows in May were $0.6bn Outflows.
We tabulate the top stocks by inflows, outflows, stake changes, and holdings, and highlight flows for SMIC, Alibaba, Tencent, China Mobile, Petrochina.


Hong Kong Connect Flows (May): End of Continuous Monthly Inflows

China

Shenzhen Han's CNC Technology is a national high-tech enterprise specializing in the R&D, manufacturing, and sales of special equipment for printed circuit boards (PCBs). The company offers one-stop solutions for PCB manufacturers, including equipment for drilling, exposure, routing, electrical performance testing, and stiffening. It was founded on April 22, 2002, and is headquartered in Shenzhen, Guangdong Province, China.

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Shenzhen Han's CNC Technology (3200 HK)

Shenzhen Senior Technology Material (6067 HK) IPO: We Are Not Fans

Shenzhen Senior Technology Materials' poor earnings record and steep H-share IPO discount relative to A-share reflect concerns about its outlook....

Osbert Tang, CFA

A-H Premium Weekly (Jun 12th): Remegen, ZTE, Chalco, Shandong Gold Mining Co Lt-H

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Remegen, ZTE, Chalco, Shandong Gold Mining Co Lt-H.

Ke Yan, CFA, FRM

Circuit Fabology (芯碁微装) A+H Pre-IPO: Early Thoughts

Circuit Fabology has passed its A+H listing hearing. In this note, we look at the company's business, its industry context and provide our early...

Ke Yan, CFA, FRM

A-H Premium Weekly (Jun 5th): Yankuang Energy, Haier Smarthome, Times Electric, China Coal, Ping An

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Yankuang Energy, Haier Smarthome, Times Electric, China...

Ke Yan, CFA, FRM

Hong Kong Connect Flows (May): End of Continuous Monthly Inflows

We estimate outflows to be $0.6bn from mainland investors to HK stocks in May. We highlight flows for SMIC, Alibaba, Tencent, China Mobile,...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Shenzhen Senior Technology Material (6067 HK) IPO: We Are Not Fans

​Shenzhen Senior Technology Materials' poor earnings record and steep H-share IPO discount relative to A-share reflect concerns about its outlook....

Osbert Tang, CFA

A-H Premium Weekly (Jun 12th): Remegen, ZTE, Chalco, Shandong Gold Mining Co Lt-H

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Remegen, ZTE, Chalco, Shandong Gold Mining Co Lt-H.

Ke Yan, CFA, FRM

Circuit Fabology (芯碁微装) A+H Pre-IPO: Early Thoughts

Circuit Fabology has passed its A+H listing hearing. In this note, we look at the company's business, its industry context and provide our early...

Ke Yan, CFA, FRM

A-H Premium Weekly (Jun 5th): Yankuang Energy, Haier Smarthome, Times Electric, China Coal, Ping An

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Yankuang Energy, Haier Smarthome, Times Electric, China...

Ke Yan, CFA, FRM

Hong Kong Connect Flows (May): End of Continuous Monthly Inflows

We estimate outflows to be $0.6bn from mainland investors to HK stocks in May. We highlight flows for SMIC, Alibaba, Tencent, China Mobile,...

Ke Yan, CFA, FRM

Shenzhen Senior Technology Materials' poor earnings record and steep H-share IPO discount relative to A-share reflect concerns about its outlook....