HK/China Equity Long-Short

Osbert Tang, CFA

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" 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

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.

Delton Technology / Equity Capital Markets

<ul>
<li>We updated our previous HK A+H listing study with deals in March and April.</li>
<li>International cornerstone participation in the deal is still a strong binary screen.</li>
<li>A-Share 1-month pre-listing momentum by quartile appears to be a leading indicator.</li>
</ul>


We updated our previous HK A+H listing study with deals in March and April.
International cornerstone participation in the deal is still a strong binary screen.
A-Share 1-month pre-listing momentum by quartile appears to be a leading indicator.


HK A+H IPO 2026 Update: Cornerstone Signal Returns, A-Share Momentum

Quantitative Analysis

<ul>
<li>We analyse the changes of A-H premium on 180 stocks over the last week. The average A-H premium was 67.6% as of Apr 17th.</li>
<li>The average A-H premium changed by -0.6ppt week-on-week, led by information technology, energy, materials and offset by utilities, consumer staples.</li>
<li>We highlight weekly changes in A-H premium for China Longyuan Power, PICC, China Coal Energy, Hans Cnc.</li>
</ul>


We analyse the changes of A-H premium on 180 stocks over the last week. The average A-H premium was 67.6% as of Apr 17th.
The average A-H premium changed by -0.6ppt week-on-week, led by information technology, energy, materials and offset by utilities, consumer staples.
We highlight weekly changes in A-H premium for China Longyuan Power, PICC, China Coal Energy, Hans Cnc.


A-H Premium Weekly (Apr 17th): China Longyuan Power, PICC, China Coal Energy, Hans Cnc

Huaqin Technology / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/huaqin-co-ltd" target="_blank" data-smartkarma-citation="entities:48099:1" rel="noopener">Huaqin (3296 HK)</a>'s leadership position in the smart product ODM platform business is an important strength, with 3-year EPS CAGR forecast at 22.8%.</li>
<li>At a maximum IPO price of HK$77.70, it is priced at 13.7x FY26 PER. Relative to an average of 13.2x for global peers, it is not particularly cheap.</li>
<li>It should trade at a premium to <a href="https://www.smartkarma.com/entities/shanghai-longcheer-technology-co-ltd-64676fe9-6624-4553-a2d4-3e9ecf3a5d6e" target="_blank" data-smartkarma-citation="entities:46338:1" rel="noopener">Shanghai Longcheer (9611 HK)</a> though. At a 20-25% discount to A-share, Huaqin's H-share is valued at HK$84.70-90.70 (15-16x FY26 PER).</li>
</ul>



Huaqin (3296 HK)'s leadership position in the smart product ODM platform business is an important strength, with 3-year EPS CAGR forecast at 22.8%.
At a maximum IPO price of HK$77.70, it is priced at 13.7x FY26 PER. Relative to an average of 13.2x for global peers, it is not particularly cheap.
It should trade at a premium to Shanghai Longcheer (9611 HK) though. At a 20-25% discount to A-share, Huaqin's H-share is valued at HK$84.70-90.70 (15-16x FY26 PER).


Huaqin Co., Ltd (3296 HK) IPO: Marginally Attractive, at Best

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Sigenergy Technology / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sigenergy-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:44468:1" rel="noopener">Sigenergy Technology (6656 HK)</a> priced its IPO at HK$324.20 per share, raising gross proceeds of approximately US$562 million. The shares will begin trading on 16 April.</li>
<li>The IPO was discussed in <a href="https://www.smartkarma.com/insights/sigenergy-ipo-the-investment-case" target="_blank" data-smartkarma-citation="insights:230084" rel="noopener">Sigenergy IPO: The Investment Case</a> and <a href="https://www.smartkarma.com/insights/sigenergy-6656-hk-ipo-valuation-insights" target="_blank" data-smartkarma-citation="insights:230285" rel="noopener">Sigenergy (6656 HK) IPO: Valuation Insights</a>. </li>
<li>The peers' market sentiment has increased since the IPO launch. The retail and international subscription rates are above the median. My analysis suggests that the IPO price is attractive.</li>
</ul>



Sigenergy Technology (6656 HK) priced its IPO at HK$324.20 per share, raising gross proceeds of approximately US$562 million. The shares will begin trading on 16 April.
The IPO was discussed in Sigenergy IPO: The Investment Case and Sigenergy (6656 HK) IPO: Valuation Insights. 
The peers' market sentiment has increased since the IPO launch. The retail and international subscription rates are above the median. My analysis suggests that the IPO price is attractive.


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)

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

A-H Premium Weekly (Apr 17th): China Longyuan Power, PICC, China Coal Energy, Hans Cnc

We analyzed A-H premium changes in the past week and highlight A-H premium changes for China Longyuan Power, PICC, China Coal Energy, Hans Cnc.

Ke Yan, CFA, FRM

Huaqin Co., Ltd (3296 HK) IPO: Marginally Attractive, at Best

Huaqin is a smart product ODM platform leader with strong EPS growth, but its IPO price is not cheap compared to global peers. At 20-25% discount...

Osbert Tang, CFA

Sigenergy (6656 HK) IPO: Trading Debut

The peers' market sentiment has increased since the IPO launch. The retail and international subscription rates are above the median of large HKEx...

Arun George

Price Gauge

52-week Range

Market Cap (USDm)

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Dividend (Yield)

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

HK A+H IPO 2026 Update: Cornerstone Signal Returns, A-Share Momentum

HK A+H IPO 2026 study is extended to 12 listings. Cornerstone participation, A-H premium band, and A-share momentum are the three signals that have...

Ke Yan, CFA, FRM

A-H Premium Weekly (Apr 17th): China Longyuan Power, PICC, China Coal Energy, Hans Cnc

We analyzed A-H premium changes in the past week and highlight A-H premium changes for China Longyuan Power, PICC, China Coal Energy, Hans Cnc.

Ke Yan, CFA, FRM

Huaqin Co., Ltd (3296 HK) IPO: Marginally Attractive, at Best

​Huaqin is a smart product ODM platform leader with strong EPS growth, but its IPO price is not cheap compared to global peers. At 20-25% discount...

Osbert Tang, CFA

Sigenergy (6656 HK) IPO: Trading Debut

The peers' market sentiment has increased since the IPO launch. The retail and international subscription rates are above the median of large HKEx...

Arun George

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

Huaqin is a smart product ODM platform leader with strong EPS growth, but its IPO price is not cheap compared to global peers. At 20-25% discount...