Global Healthcare Analyst

Tina Banerjee

Equity Capital Markets

Chaozhou Three-Circle / Equity Capital Markets

<ul>
<li>Chaozhou Three-Circle launched Hongkong IPO to raise nearly HK$7.2B. They manufacture electronic ceramic materials and components used in automobiles, smartphones, data centers and telecom base stations.</li>
<li>Company intends to use the proceeds for overseas expansion, automation, enhance supply resilience, for technology R&amp;D, materials innovation and working capital.</li>
<li>Chaozhou Three-Circle has witnessed sustained growth and margin stability. Valuation looks relatively fair and comfortable. Investors can rely on the sustained growth momentum and also incremental growth possibilities.</li>
</ul>


Chaozhou Three-Circle launched Hongkong IPO to raise nearly HK$7.2B. They manufacture electronic ceramic materials and components used in automobiles, smartphones, data centers and telecom base stations.
Company intends to use the proceeds for overseas expansion, automation, enhance supply resilience, for technology R&amp;D, materials innovation and working capital.
Chaozhou Three-Circle has witnessed sustained growth and margin stability. Valuation looks relatively fair and comfortable. Investors can rely on the sustained growth momentum and also incremental growth possibilities.


Chaozhou Three-Circle IPO: Sustained Growth, Margin Stability Makes the Issue Attractive

HK/China Equity Long-Short

Osbert Tang, CFA

<ul>
<li>
<a href="https://www.smartkarma.com/entities/chaozhou-three-circle-group-co-ltd" target="_blank" data-smartkarma-citation="entities:50297:1" rel="noopener">Chaozhou Three-Circle (6951 HK)</a>, a key player in electronic ceramic materials and components, will benefit from the demand and scenario upgrades in downstream sectors.</li>
<li>For FY25-28, it will generate an EPS CAGR of 26%, fueled by both revenue growth and margin expansion. Its 1Q26 earnings have already surged by 48.5%.</li>
<li>At the maximum IPO price of HK$100.30, the H-share is priced at a steep 49% HA discount. Re-rating to the global average FY26 PER will give a 21.3% upside.</li>
</ul>



Chaozhou Three-Circle (6951 HK), a key player in electronic ceramic materials and components, will benefit from the demand and scenario upgrades in downstream sectors.
For FY25-28, it will generate an EPS CAGR of 26%, fueled by both revenue growth and margin expansion. Its 1Q26 earnings have already surged by 48.5%.
At the maximum IPO price of HK$100.30, the H-share is priced at a steep 49% HA discount. Re-rating to the global average FY26 PER will give a 21.3% upside.


Chaozhou Three-Circle (6951 HK) IPO: Priced Nicely

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 analyzed the changes in margin trading positions of JPX stocks as of Jun 26th. The aggregated net margin trading position is USD32,057m.</li>
<li>We tabulate league tables for top/bottom net long/short of margin trading by value, net margin buy as multiple of ADT.</li>
<li>We highlight net margin buy/sell changes in Kioxia, SoftBank, Tokyo Electron, Fujikura, McDonald's, Skylark, Disco, Taiyo Yuden, Lasertec, Japan Tobacco.</li>
</ul>


We analyzed the changes in margin trading positions of JPX stocks as of Jun 26th. The aggregated net margin trading position is USD32,057m.
We tabulate league tables for top/bottom net long/short of margin trading by value, net margin buy as multiple of ADT.
We highlight net margin buy/sell changes in Kioxia, SoftBank, Tokyo Electron, Fujikura, McDonald's, Skylark, Disco, Taiyo Yuden, Lasertec, Japan Tobacco.


JPX Margin Trading Weekly (Jun 26th): Kioxia, SoftBank, Tokyo Electron, Fujikura, McDonald's, Disco

<ul>
<li>We analyzed the changes in margin trading positions of JPX stocks as of Jun 19th. The aggregated net margin trading position is USD31,695m.</li>
<li>We tabulate league tables for top/bottom net long/short of margin trading by value, net margin buy as multiple of ADT.</li>
<li>We highlight net margin buy/sell changes in Kioxia, Advantest, Tokyo Electron, Skylark, Taiyo Yuden, SoftBank, Nippon Telegraph and Telephone, McDonald's, Murata Manufacturing, Mitsubishi UFJ Financial.</li>
</ul>


We analyzed the changes in margin trading positions of JPX stocks as of Jun 19th. The aggregated net margin trading position is USD31,695m.
We tabulate league tables for top/bottom net long/short of margin trading by value, net margin buy as multiple of ADT.
We highlight net margin buy/sell changes in Kioxia, Advantest, Tokyo Electron, Skylark, Taiyo Yuden, SoftBank, Nippon Telegraph and Telephone, McDonald's, Murata Manufacturing, Mitsubishi UFJ Financial.


JPX Margin Trading Weekly (Jun 19th): Kioxia, Advantest, Tokyo Electron, Skylark, Taiyo Yuden

'Quantamental' Japan Specialist, LightStream Research

Campbell Gunn

'Quantamental' Japan Specialist

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Thematic (Sector/Industry)

<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/130/058/original/2020-04-28_05-09-49.png?1588018213" class="editor-image img-responsive" data-smartkarma-image-id="130058"></figure><div class="content-caption">Source • Japan Analytics</div>THE 'UNLIMTED' BANK OF JAPAN - The Bank of Japan's well-telegraphed announcement that they will be free of any constraints in their purchases of fixed income securities had limited impact on the exchange rate and bond markets. In practice, the central bank is limited by the lack of availability of JGBs and yields already being current at their target rate of zero. However, the extension of the BoJ remit to cover corporate bonds and even 'household debt' did prompt short-covering of indebted deep cyclical sectors of the equity market. There were no new purchases of ETFs yesterday.FORECAST REVISION SCORE &lt; RESULTS SCORE - Our Forecast/Revision Score has been higher than our Results Score since February as companies with December year-ends released bullish forecasts for 2020. Many of these forecasts are now being revised down or, as in the case of <a href="https://www.smartkarma.com/entities/canon-inc" target="_blank" data-smartkarma-citation="entities:1:1" rel="noopener">Canon  (7751 JP)</a>, are being withdrawn.  This Score 'crossover' has been bearish for equities over the past decade, and we would require the reverse for a medium or long-term 'buy' signal for Japanese equities. One caveat is the large number of companies forgoing making initial forecasts for FY2021. Yesterday, only seventeen of the forty-four annual results declarations were accompanied by new forecasts. In the DETAIL below, we shall review Monday's large-cap results, revisions and initial forecast announcements.  The positive/neutral/negative balance for the 52 results was 23:5:24; and for the 50 revisions/initial forecasts, the split was 22:2:26. Four companies, including <a href="https://www.smartkarma.com/entities/stanley-electric-co-ltd" target="_blank" data-smartkarma-citation="entities:1330:1" rel="noopener">Stanley Electric (6923 JP)</a>  cut their dividends; two increased.

Source • Japan AnalyticsTHE 'UNLIMTED' BANK OF JAPAN - The Bank of Japan's well-telegraphed announcement that they will be free of any constraints in their purchases of fixed income securities had limited impact on the exchange rate and bond markets. In practice, the central bank is limited by the lack of availability of JGBs and yields already being current at their target rate of zero. However, the extension of the BoJ remit to cover corporate bonds and even 'household debt' did prompt short-covering of indebted deep cyclical sectors of the equity market. There were no new purchases of ETFs yesterday.FORECAST REVISION SCORE &lt; RESULTS SCORE - Our Forecast/Revision Score has been higher than our Results Score since February as companies with December year-ends released bullish forecasts for 2020. Many of these forecasts are now being revised down or, as in the case of Canon  (7751 JP), are being withdrawn.  This Score 'crossover' has been bearish for equities over the past decade, and we would require the reverse for a medium or long-term 'buy' signal for Japanese equities. One caveat is the large number of companies forgoing making initial forecasts for FY2021. Yesterday, only seventeen of the forty-four annual results declarations were accompanied by new forecasts. In the DETAIL below, we shall review Monday's large-cap results, revisions and initial forecast announcements.  The positive/neutral/negative balance for the 52 results was 23:5:24; and for the 50 revisions/initial forecasts, the split was 22:2:26. Four companies, including Stanley Electric (6923 JP)  cut their dividends; two increased. 

🇯🇵 JAPAN • Results & Revisions 28th April - The 'Unlimited' BoJ + Panasonic, T.Yuden, Kao, Kyocera

Japan

Taiyo Yuden Co., Ltd. manufactures and markets electronic components such as, ceramic capacitors, inductors, hybrid integrated circuits (IC), and ferrite. The Company's products include power supplies, inverters, optical disks, filters, coils, and thermistors.

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Taiyo Yuden (6976 JP)

Chaozhou Three-Circle IPO: Sustained Growth, Margin Stability Makes the Issue Attractive

Chaozhou Three-Circle launches HK IPO to raise HK$7.2B for expansion, innovation, and growth, with strong performance and fair valuation....

Tina Banerjee

Chaozhou Three-Circle (6951 HK) IPO: Priced Nicely

Chaozhou Three-Circle is poised to gain from the demand and scenario upgrades in downstream sectors. It has an encouraging earnings outlook and a...

Osbert Tang, CFA

JPX Margin Trading Weekly (Jun 26th): Kioxia, SoftBank, Tokyo Electron, Fujikura, McDonald's, Disco

We analyzed JPX margin trading positions report for the past week and highlighted Kioxia, SoftBank, Tokyo Electron, Fujikura, McDonald's, Skylark,...

Ke Yan, CFA, FRM

JPX Margin Trading Weekly (Jun 19th): Kioxia, Advantest, Tokyo Electron, Skylark, Taiyo Yuden

We analyzed JPX margin trading positions report for the past week and highlighted Kioxia (285A JP), Advantest (6857 JP), Tokyo Electron (8035 JP),...

Ke Yan, CFA, FRM

🇯🇵 JAPAN • Results & Revisions 28th April - The 'Unlimited' BoJ + Panasonic, T.Yuden, Kao, Kyocera

THE 'UNLIMTED' BANK OF JAPAN - The Bank of Japan's well-telegraphed announcement that they will be free of any constraints in their purchases of...

Campbell Gunn

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Chaozhou Three-Circle IPO: Sustained Growth, Margin Stability Makes the Issue Attractive

​Chaozhou Three-Circle launches HK IPO to raise HK$7.2B for expansion, innovation, and growth, with strong performance and fair valuation....

Tina Banerjee

Chaozhou Three-Circle (6951 HK) IPO: Priced Nicely

​Chaozhou Three-Circle is poised to gain from the demand and scenario upgrades in downstream sectors. It has an encouraging earnings outlook and a...

Osbert Tang, CFA

JPX Margin Trading Weekly (Jun 26th): Kioxia, SoftBank, Tokyo Electron, Fujikura, McDonald's, Disco

We analyzed JPX margin trading positions report for the past week and highlighted Kioxia, SoftBank, Tokyo Electron, Fujikura, McDonald's, Skylark,...

Ke Yan, CFA, FRM

JPX Margin Trading Weekly (Jun 19th): Kioxia, Advantest, Tokyo Electron, Skylark, Taiyo Yuden

We analyzed JPX margin trading positions report for the past week and highlighted Kioxia (285A JP), Advantest (6857 JP), Tokyo Electron (8035 JP),...

Ke Yan, CFA, FRM

🇯🇵 JAPAN • Results & Revisions 28th April - The 'Unlimited' BoJ + Panasonic, T.Yuden, Kao, Kyocera

THE 'UNLIMTED' BANK OF JAPAN - The Bank of Japan's well-telegraphed announcement that they will be free of any constraints in their purchases of...

Campbell Gunn

Chaozhou Three-Circle launches HK IPO to raise HK$7.2B for expansion, innovation, and growth, with strong performance and fair valuation....

Chaozhou Three-Circle is poised to gain from the demand and scenario upgrades in downstream sectors. It has an encouraging earnings outlook and a...