Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, 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

Shin Etsu Chemical / Equity Capital Markets

<ul>
<li>A group of shareholders plan to raise around S$800m via selling some of their stake in <a href="https://www.smartkarma.com/entities/shin-etsu-chemical-co-ltd" target="_blank" data-smartkarma-citation="entities:4481:1" rel="noopener">Shin Etsu Chemical (4063 JP)</a>.</li>
<li>This will be another large cross-shareholding unwind in Japan, although the shares haven’t done much recently.</li>
<li>In this note, we talk about the deal dynamics and run the deal through our ECM framework.</li>
</ul>


A group of shareholders plan to raise around S$800m via selling some of their stake in Shin Etsu Chemical (4063 JP).
This will be another large cross-shareholding unwind in Japan, although the shares haven’t done much recently.
In this note, we talk about the deal dynamics and run the deal through our ECM framework.


Aequitas: Shin-Etsu Chemical Placement - A Relatively Small US$800m Deal

Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>Mizuho was out overnight with bullish commentary on the segment and it raised both Advantest Corp  and Shin Etsu Chemical to buy, so this may help mellow the negative sentiment.</li>
<li>Japan AI related had a big fall yesterday but may stabilise soon with many stocks back down around their 200-day levels with intact growth outlooks and earnings done.</li>
<li>Sumi Forestry could see a squeeze after US homebuilders KB Home, DR Horton and Lennar rallied on the Treasury's bond-buying intervention.</li>
</ul>


Mizuho was out overnight with bullish commentary on the segment and it raised both Advantest Corp  and Shin Etsu Chemical to buy, so this may help mellow the negative sentiment.
Japan AI related had a big fall yesterday but may stabilise soon with many stocks back down around their 200-day levels with intact growth outlooks and earnings done.
Sumi Forestry could see a squeeze after US homebuilders KB Home, DR Horton and Lennar rallied on the Treasury's bond-buying intervention.


Japan Morning Connection: Advantest, Shin Etsu Upgraded to Buy Amid Negative AI Sentiment

Equity Long-Short

Mo Aziz

<ul>
<li>Record 300mm shipments, three loss-makers: ¥134bn of depreciation — not demand — is the entire gap; it peaks in FY2026 and mechanically rolls to ¥90bn by FY2028.</li>
<li>China has won 200mm and is contesting mature-node 300mm; at the leading edge — where the profit pool sits — no Chinese supplier is qualified below 14nm.</li>
<li>
<strong>Constructive on the sector:</strong> SUMCO top pick BULLISH ¥4,200 (9.0x FY2028E EBITDA), Shin-Etsu BULLISH ¥7,300 (11.5x FY2027E EBITDA), GlobalWafers NEUTRAL NT$920, Siltronic BEARISH €76. </li>
</ul>


Record 300mm shipments, three loss-makers: ¥134bn of depreciation — not demand — is the entire gap; it peaks in FY2026 and mechanically rolls to ¥90bn by FY2028.
China has won 200mm and is contesting mature-node 300mm; at the leading edge — where the profit pool sits — no Chinese supplier is qualified below 14nm.

Constructive on the sector: SUMCO top pick BULLISH ¥4,200 (9.0x FY2028E EBITDA), Shin-Etsu BULLISH ¥7,300 (11.5x FY2027E EBITDA), GlobalWafers NEUTRAL NT$920, Siltronic BEARISH €76. 


Silicon Wafer Industry Handbook: Primer, Cycle Framework and the 300mm Valuation Map

<ul>
<li>Kioxia, Minebea Misumi and Hoya may face a wobbly open after both Sandisk and WD missed expectations.</li>
<li>Sumco and Shin Etsu could see limited impact or even gains from proposed US polysilicon tariffs, as both source directly from US-based suppliers.</li>
<li>SpaceX dropped -13.6% after earnings AH yesterday, which looked good, but the firm spooked the mkt with its higher AI spend.</li>
</ul>


Kioxia, Minebea Misumi and Hoya may face a wobbly open after both Sandisk and WD missed expectations.
Sumco and Shin Etsu could see limited impact or even gains from proposed US polysilicon tariffs, as both source directly from US-based suppliers.
SpaceX dropped -13.6% after earnings AH yesterday, which looked good, but the firm spooked the mkt with its higher AI spend.


Japan Morning Connection: Memory Names Set for a Tough Session After Sandisk, WD Earnings Disappoint

<ul>
<li>SEI and other optical/cable makers set to recover from recent underperformance on Meta news.</li>
<li>Memory plays and SPE laggards should get a lift on the news that Micron is planning to increase its US capex to $250bn (from $200bn).</li>
<li>SUMCO Corp and Shin Etsu Chemical likely to get a boost after Siltronic upgraded to outperform by BNP.</li>
</ul>


SEI and other optical/cable makers set to recover from recent underperformance on Meta news.
Memory plays and SPE laggards should get a lift on the news that Micron is planning to increase its US capex to $250bn (from $200bn).
SUMCO Corp and Shin Etsu Chemical likely to get a boost after Siltronic upgraded to outperform by BNP.


Japan Morning Connection: SEI Well Placed as META Names It a Direct Supplier for Iris AI Chips

Japan

Shin-Etsu Chemical Co., Ltd. produces and distributes synthetic resins and other chemical products such as fertilizers. The Company also manufactures electronic materials such as semiconductor silicon, synthetic, and rare earth quartz. Shin-Etsu Chemical operates in Japan and overseas.

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Shin Etsu Chemical (4063 JP)

Aequitas: Shin-Etsu Chemical Placement - A Relatively Small US$800m Deal

A group of shareholders plan to raise around S$800m via selling some of their stake in Shin Etsu Chemical (4063 JP). In this note, we talk about...

Sumeet Singh

Japan Morning Connection: Advantest, Shin Etsu Upgraded to Buy Amid Negative AI Sentiment

Japan AI related had a big fall yesterday but may stabilise soon with many stocks back down around their 200-day levels with intact growth outlooks...

Andrew Jackson

Silicon Wafer Industry Handbook: Primer, Cycle Framework and the 300mm Valuation Map

The industry ships record volumes and reports losses. The gap is ¥134bn of scheduled non-cash depreciation — already peaking. Contracts reprice...

Mo Aziz

Japan Morning Connection: Memory Names Set for a Tough Session After Sandisk, WD Earnings Disappoint

Kioxia, Minebea Misumi, and Hoya may have a rough open due to missed expectations from Sandisk and WD, while US polysilicon tariffs shouldn't be a...

Andrew Jackson

Japan Morning Connection: SEI Well Placed as META Names It a Direct Supplier for Iris AI Chips

Optical/cable makers set to recover on Meta news, Micron's increased capex to benefit memory plays, Sumco and Shin Etsu set to follow European...

Andrew Jackson

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Aequitas: Shin-Etsu Chemical Placement - A Relatively Small US$800m Deal

A group of shareholders plan to raise around S$800m via selling some of their stake in Shin Etsu Chemical (4063 JP). In this note, we talk about...

Sumeet Singh

Japan Morning Connection: Advantest, Shin Etsu Upgraded to Buy Amid Negative AI Sentiment

Japan AI related had a big fall yesterday but may stabilise soon with many stocks back down around their 200-day levels with intact growth outlooks...

Andrew Jackson

Silicon Wafer Industry Handbook: Primer, Cycle Framework and the 300mm Valuation Map

The industry ships record volumes and reports losses. The gap is ¥134bn of scheduled non-cash depreciation — already peaking. Contracts reprice...

Mo Aziz

Japan Morning Connection: Memory Names Set for a Tough Session After Sandisk, WD Earnings Disappoint

Kioxia, Minebea Misumi, and Hoya may have a rough open due to missed expectations from Sandisk and WD, while US polysilicon tariffs shouldn't be a...

Andrew Jackson

Japan Morning Connection: SEI Well Placed as META Names It a Direct Supplier for Iris AI Chips

​Optical/cable makers set to recover on Meta news, Micron's increased capex to benefit memory plays, Sumco and Shin Etsu set to follow European...

Andrew Jackson

Optical/cable makers set to recover on Meta news, Micron's increased capex to benefit memory plays, Sumco and Shin Etsu set to follow European...