IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

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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.

Equity Capital Markets

Shenzhen Kinwong Electronic / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shenzhen-kinwong-electronic-co-ltd" target="_blank" data-smartkarma-citation="entities:58633:1" rel="noopener">Shenzhen Kinwong Electronic (3228 HK)</a> is a global printed circuit board (PCB) manufacturer, seeking to raise up to US$653 million at a maximum offer price of HK$69.88 per share.</li>
<li>I discussed the H Share listing in <em><strong><a href="https://www.smartkarma.com/insights/kinwong-electronic-h-share-listing-3228-hk-the-investment-case" target="_blank" data-smartkarma-citation="insights:272060" rel="noopener">Kinwong Electronic H Share Listing (3228 HK): The Investment Case</a></strong></em>. </li>
<li>In this note, I present my forecasts and valuation. The AH discount is light compared to peer multiples. Given my concerns about fundamentals, I would avoid the listing. </li>
</ul>



Shenzhen Kinwong Electronic (3228 HK) is a global printed circuit board (PCB) manufacturer, seeking to raise up to US$653 million at a maximum offer price of HK$69.88 per share.
I discussed the H Share listing in Kinwong Electronic H Share Listing (3228 HK): The Investment Case. 
In this note, I present my forecasts and valuation. The AH discount is light compared to peer multiples. Given my concerns about fundamentals, I would avoid the listing. 


Kinwong Electronic H Share Listing (3228 HK): Valuation Insights

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shenzhen-kinwong-electronic-co-ltd" target="_blank" data-smartkarma-citation="entities:58633:1" rel="noopener">Shenzhen Kinwong Electronic (3228 HK)</a> is a global printed circuit board (PCB) manufacturer, seeking to raise up to US$653 million at a maximum offer price of HK$69.88 per share.</li>
<li>It makes rigid PCBs (RPCBs), flexible printed circuits (FPCs), and other PCBs for automotive electronics, smart devices, industrial control, telecommunications, and data infrastructure customers.</li>
<li>The investment case is bearish: Kinwong is a price-taker in a fragmented, capital-intensive industry, with squeezed core margins, profits propped up by copper-scrap sales and heavy capex-driven cash burn.</li>
</ul>



Shenzhen Kinwong Electronic (3228 HK) is a global printed circuit board (PCB) manufacturer, seeking to raise up to US$653 million at a maximum offer price of HK$69.88 per share.
It makes rigid PCBs (RPCBs), flexible printed circuits (FPCs), and other PCBs for automotive electronics, smart devices, industrial control, telecommunications, and data infrastructure customers.
The investment case is bearish: Kinwong is a price-taker in a fragmented, capital-intensive industry, with squeezed core margins, profits propped up by copper-scrap sales and heavy capex-driven cash burn.


Kinwong Electronic H Share Listing (3228 HK): The Investment Case

Global Healthcare Analyst

Tina Banerjee

<ul>
<li>Kinwong Electronic launched IPO to raise HK$ 5.1B. Company is a PCB manufacturer providing connectivity infrastructure for global customers in automotive electronics, telecommunication &amp; data, smart devices, industrial control etc.</li>
<li>Kinwong Electronic intends to use the proceeds for research and development, expanding production capacity, repay borrowings, working caital and general corporate purpose.</li>
<li>Given the overall industry dynamics and company’s focus on cost optimization, price competitiveness and high margin products we can expect a sustained incremental demand scenario in near to medium term.</li>
</ul>


Kinwong Electronic launched IPO to raise HK$ 5.1B. Company is a PCB manufacturer providing connectivity infrastructure for global customers in automotive electronics, telecommunication &amp; data, smart devices, industrial control etc.
Kinwong Electronic intends to use the proceeds for research and development, expanding production capacity, repay borrowings, working caital and general corporate purpose.
Given the overall industry dynamics and company’s focus on cost optimization, price competitiveness and high margin products we can expect a sustained incremental demand scenario in near to medium term.


Shenzhen Kinwong Electronic IPO: Diversified Circuitry Coming Into Play

HK/China Equity Long-Short

Osbert Tang, CFA

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shenzhen-kinwong-electronic-co-ltd" target="_blank" data-smartkarma-citation="entities:58633:1" rel="noopener">Shenzhen Kinwong Electronic (3228 HK)</a>'s IPO is seeking HK$4.96bn, though priced at a steep 45.9% discount to the A-share, the absolute PER is not cheap.</li>
<li>The key strengths lie in its comprehensive product portfolio, strong market reputation, and strategic partnerships with global customers. </li>
<li>We value it at 32.7x PER for FY26, in line with the global peer average, meaning a price of HK$80.15. But this is not without risks, given potential earnings disappointment.</li>
</ul>



Shenzhen Kinwong Electronic (3228 HK)'s IPO is seeking HK$4.96bn, though priced at a steep 45.9% discount to the A-share, the absolute PER is not cheap.
The key strengths lie in its comprehensive product portfolio, strong market reputation, and strategic partnerships with global customers. 
We value it at 32.7x PER for FY26, in line with the global peer average, meaning a price of HK$80.15. But this is not without risks, given potential earnings disappointment.


Shenzhen Kinwong (3228 HK) IPO: Marginally Attractive

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

Shenton Research

Shenton 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.

<ul>
<li>Kinwong, a PCB maker, launched its IPO to raise USD 650m through an A+H listing. CITIC, BOA, and Guolian are the deal sponsors.</li>
<li>In this note, we look at the deal terms and provide our thoughts on valuation for the company.</li>
<li>We analyze reference A+H transactions, cornerstone and sponsor performance and assess the risk-reward of the deal.</li>
</ul>


Kinwong, a PCB maker, launched its IPO to raise USD 650m through an A+H listing. CITIC, BOA, and Guolian are the deal sponsors.
In this note, we look at the deal terms and provide our thoughts on valuation for the company.
We analyze reference A+H transactions, cornerstone and sponsor performance and assess the risk-reward of the deal.


Kinwong (景旺电子) A+H IPO: Analysis of Deal Terms

China

Suzhou Dongshan Precision Manufacturing Co., Ltd. develops, manufactures and sells precision metal plate and cast metal.  The Company's products include communication equipment precision metal part, and machine bed precision metal part.

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Suzhou Dongshan Precision A (002384 CH)

Shenzhen Kinwong Electronic IPO: Diversified Circuitry Coming Into Play

Kinwong Electronic launched IPO to raise HK$ 5.1B for R&D, expanding production etc. Focus on cost optimization, price competitiveness and high...

Tina Banerjee

Shenzhen Kinwong (3228 HK) IPO: Marginally Attractive

Shenzhen Kinwong's IPO is seeking HK$4.96bn, though priced at a steep 45.9% discount to the A-share, the absolute PER is not cheap. We are also...

Osbert Tang, CFA

Kinwong (景旺电子) A+H IPO: Analysis of Deal Terms

We analyze Kinwong's USD 650m Hong Kong IPO. We look at deal terms, track records of cornerstone investors and sponsors, as well as its valuation....

Ke Yan, CFA, FRM

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52-week Range

Market Cap (USDm)

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Dividend (Yield)

Kinwong Electronic H Share Listing (3228 HK): Valuation Insights

Kinwong Electronic is a global printed circuit board (PCB) manufacturer seeking to raise up to US$653 million. In this note, I present my forecasts...

Arun George

Kinwong Electronic H Share Listing (3228 HK): The Investment Case

Kinwong Electronic is a global printed circuit board (PCB) manufacturer, seeking to raise up to US$653 million. In this note, I discuss the...

Arun George

Shenzhen Kinwong Electronic IPO: Diversified Circuitry Coming Into Play

Kinwong Electronic launched IPO to raise HK$ 5.1B for R&D, expanding production etc. Focus on cost optimization, price competitiveness and high...

Tina Banerjee

Shenzhen Kinwong (3228 HK) IPO: Marginally Attractive

Shenzhen Kinwong's IPO is seeking HK$4.96bn, though priced at a steep 45.9% discount to the A-share, the absolute PER is not cheap. We are also...

Osbert Tang, CFA

Kinwong (景旺电子) A+H IPO: Analysis of Deal Terms

We analyze Kinwong's USD 650m Hong Kong IPO. We look at deal terms, track records of cornerstone investors and sponsors, as well as its valuation....

Ke Yan, CFA, FRM