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 80.2% as of Jun 19th.</li>
<li>The average A-H premium changed by 3.7ppt week-on-week, led by utilities, information technology, consumer discretionary and offset by energy, industrials.</li>
<li>We highlight weekly changes in A-H premium for China Longyuan, China Coal, Remegen, Yangtze Optical Fibre And-H.</li>
</ul>


We analyse the changes of A-H premium on 185 stocks over the last week. The average A-H premium was 80.2% as of Jun 19th.
The average A-H premium changed by 3.7ppt week-on-week, led by utilities, information technology, consumer discretionary and offset by energy, industrials.
We highlight weekly changes in A-H premium for China Longyuan, China Coal, Remegen, Yangtze Optical Fibre And-H.


A-H Premium Weekly (Jun 19th): China Longyuan, China Coal, Remegen, Yangtze Optical Fibre And-H

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of June 18th.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight flows for Alibaba, Kingboard Laminates, Knowledge Atlas, Kingboard, CNOOC, China Mobile, Lenovo, Yangtze Optical Fibre And-H, Iluvatar Corex, Ke.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of June 18th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Alibaba, Kingboard Laminates, Knowledge Atlas, Kingboard, CNOOC, China Mobile, Lenovo, Yangtze Optical Fibre And-H, Iluvatar Corex, Ke.


HK Connect Flows Weekly (Jun 18th): Alibaba, Kingboard Laminates, Knowledge Atlas, Kingboard, CNOOC

HK/China Equity Long-Short

Osbert Tang, CFA

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sg-micro-corp-5c356907-201f-4bd8-8190-24de284e1329" target="_blank" data-smartkarma-citation="entities:50247:1" rel="noopener">SG Micro (3661 HK)</a>, a leading analog IC company, has a solid track record of earnings. Its IPO targets to raise net proceeds of HK$4.5bn, which is reasonably sizeable.</li>
<li>The market is expecting 3-year EPS CAGR of 33.1%, putting the IPO price at 59.3x FY26 PER. The 107% earnings growth in 1Q26 affirms its outlook. </li>
<li>We value it on 2.1x PEG, same as global peers, translating into 70x PER, or 18% upside. Our estimated fair value of HK$100.50 means a H-A discount of 34.1%.  </li>
</ul>



SG Micro (3661 HK), a leading analog IC company, has a solid track record of earnings. Its IPO targets to raise net proceeds of HK$4.5bn, which is reasonably sizeable.
The market is expecting 3-year EPS CAGR of 33.1%, putting the IPO price at 59.3x FY26 PER. The 107% earnings growth in 1Q26 affirms its outlook. 
We value it on 2.1x PEG, same as global peers, translating into 70x PER, or 18% upside. Our estimated fair value of HK$100.50 means a H-A discount of 34.1%.  


SG Micro Corp (3661 HK) IPO: A High-Growth Play

<ul>
<li>With an aim to raise HK$8.2bn of net proceeds, <a href="https://www.smartkarma.com/entities/lingyi-itech-guangdong-company" target="_blank" data-smartkarma-citation="entities:50139:1" rel="noopener">Lingyi iTech (1688 HK)</a>'s H-share IPO is a sizeable one and should attract interest. </li>
<li>Earnings record for this high-precision intelligent manufacturing platform is volatile, but should improve in FY27-28. 1Q26 profit drop is distorted by huge exchange losses.  </li>
<li>Priced at 44.6% discount to its A-share and 27.7x PER, the IPO is inexpensive. Assuming a discount of 26.9%, the fair price (HK$13.43) implies a 32% upside.</li>
</ul>


With an aim to raise HK$8.2bn of net proceeds, Lingyi iTech (1688 HK)'s H-share IPO is a sizeable one and should attract interest. 
Earnings record for this high-precision intelligent manufacturing platform is volatile, but should improve in FY27-28. 1Q26 profit drop is distorted by huge exchange losses.  
Priced at 44.6% discount to its A-share and 27.7x PER, the IPO is inexpensive. Assuming a discount of 26.9%, the fair price (HK$13.43) implies a 32% upside.


Lingyi ITech (1688 HK) IPO: Deserves a Narrower Discount

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>SG has been closely following the overseas leaders in terms of product category breadth, covering approximately 70% of the mid-to-low-end parts of Texas Instruments, with a clear substitution potential.</li>
<li>To continue making profits, SG needs to launch new designs faster than peers, or seize a “time difference” in automotive certification, otherwise its profits will be squeezed out by competitors.</li>
<li>A comfortable P/S of SG’s H-share could be between 6-8x (based on 2026 forecast). As industry leader, we think SG’s valuation would be higher than <a href="https://www.smartkarma.com/entities/suzhou-novosense-microlectronics-co-ltd-class-h" target="_blank" data-smartkarma-citation="entities:46180:1" rel="noopener">Suzhou Novosense Microelectronics (2676 HK)</a>. </li>
</ul>


SG has been closely following the overseas leaders in terms of product category breadth, covering approximately 70% of the mid-to-low-end parts of Texas Instruments, with a clear substitution potential.
To continue making profits, SG needs to launch new designs faster than peers, or seize a “time difference” in automotive certification, otherwise its profits will be squeezed out by competitors.
A comfortable P/S of SG’s H-share could be between 6-8x (based on 2026 forecast). As industry leader, we think SG’s valuation would be higher than Suzhou Novosense Microelectronics (2676 HK). 


Pre-IPO SG Micro Corp (A/H Listing) - Some Points Worth the Attention

China

Suzhou Novosense Microelectronics Co., Ltd. specializes in the research, development, design, and sale of high-performance analog and mixed-signal integrated circuits. The company offers a comprehensive portfolio of products including sensors, signal chain chips, isolation and interface products, power and driver ICs, and power management solutions. These products are widely applied in the automotive, industrial, information communication, and consumer electronics sectors. Headquartered in Suzhou, China, the company was founded in 2013.

Suzhou Novosense Microelectronics (2676 HK)

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Suzhou Novosense Microelectronics (2676 HK)

A-H Premium Weekly (Jun 19th): China Longyuan, China Coal, Remegen, Yangtze Optical Fibre And-H

We analyzed A-H premium changes in the past week and highlight A-H premium changes for China Longyuan, China Coal, Remegen, Yangtze Optical Fibre...

Ke Yan, CFA, FRM

HK Connect Flows Weekly (Jun 18th): Alibaba, Kingboard Laminates, Knowledge Atlas, Kingboard, CNOOC

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Alibaba (9988 HK), Kingboard Laminates (1888 HK),...

Ke Yan, CFA, FRM

SG Micro Corp (3661 HK) IPO: A High-Growth Play

SG Micro is a leading analog IC company with a solid earnings record, aiming to raise HK$4.5bn in its IPO. With a 33.1% EPS CAGR, the IPO is...

Osbert Tang, CFA

Lingyi ITech (1688 HK) IPO: Deserves a Narrower Discount

Lingyi iTech's H-share IPO aims to raise HK$8.2bn, with potential for faster earnings growth in FY27 and FY28. It deserves a narrower discount to...

Osbert Tang, CFA

Pre-IPO SG Micro Corp (A/H Listing) - Some Points Worth the Attention

SG's IPO pricing is ≦HK$85.2, with maximum MV of HK$57.5bn (RMB49.6bn). Based on 2026 forecast, PS is 10x (higher than Novosense (7.8x) and our...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

A-H Premium Weekly (Jun 19th): China Longyuan, China Coal, Remegen, Yangtze Optical Fibre And-H

We analyzed A-H premium changes in the past week and highlight A-H premium changes for China Longyuan, China Coal, Remegen, Yangtze Optical Fibre...

Ke Yan, CFA, FRM

HK Connect Flows Weekly (Jun 18th): Alibaba, Kingboard Laminates, Knowledge Atlas, Kingboard, CNOOC

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Alibaba (9988 HK), Kingboard Laminates (1888 HK),...

Ke Yan, CFA, FRM

SG Micro Corp (3661 HK) IPO: A High-Growth Play

​SG Micro is a leading analog IC company with a solid earnings record, aiming to raise HK$4.5bn in its IPO. With a 33.1% EPS CAGR, the IPO is...

Osbert Tang, CFA

Lingyi ITech (1688 HK) IPO: Deserves a Narrower Discount

​Lingyi iTech's H-share IPO aims to raise HK$8.2bn, with potential for faster earnings growth in FY27 and FY28. It deserves a narrower discount to...

Osbert Tang, CFA

Pre-IPO SG Micro Corp (A/H Listing) - Some Points Worth the Attention

SG's IPO pricing is ≦HK$85.2, with maximum MV of HK$57.5bn (RMB49.6bn). Based on 2026 forecast, PS is 10x (higher than Novosense (7.8x) and our...

Xinyao (Criss) Wang

SG Micro is a leading analog IC company with a solid earnings record, aiming to raise HK$4.5bn in its IPO. With a 33.1% EPS CAGR, the IPO is...

Lingyi iTech's H-share IPO aims to raise HK$8.2bn, with potential for faster earnings growth in FY27 and FY28. It deserves a narrower discount to...