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.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/chindata-group-holdings-adr" target="_blank" data-smartkarma-citation="entities:29274:1" rel="noopener">Chindata Group (CD US)</a> disclosed a preliminary non-binding proposal from Bain Capital at US$8.00 per ADS, a 27.4% premium to the undisturbed price of US$6.28 per ADS.</li>
<li>For privatisation to succeed, shareholders representing two-thirds of the shares present and voting need to approve the deal. The offeror represents 87.39% of the total voting power. </li>
<li>While the offer is unattractive, Bain Capital’s voting rights ensure that the vote will pass. The key risks are regulatory approvals and timing. </li>
</ul>



Chindata Group (CD US) disclosed a preliminary non-binding proposal from Bain Capital at US$8.00 per ADS, a 27.4% premium to the undisturbed price of US$6.28 per ADS.
For privatisation to succeed, shareholders representing two-thirds of the shares present and voting need to approve the deal. The offeror represents 87.39% of the total voting power. 
While the offer is unattractive, Bain Capital’s voting rights ensure that the vote will pass. The key risks are regulatory approvals and timing. 


Chindata (CD US): Bain Capital’s Low-Balled Privatisation Offer

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Shandong Hi-Speed Holdings Gro / Event-Driven

<ul>
<li>In <a href="https://www.smartkarma.com/compose/insight/203678/What's%20Up%20(&amp;%20Up)%20With%20Shandong%20Hi-Speed%20(412%20HK)" target="_blank" rel="noopener">What's Up (&amp; Up) With Shandong Hi-Speed (412 HK)?</a>, I thought <a href="https://www.smartkarma.com/entities/shandong-hi-speed-holdings-gro" target="_blank" data-smartkarma-citation="entities:10356:1" rel="noopener">Shandong Hi-Speed Holdings (412 HK)</a> was a bubble after gaining 190% in the past six months. </li>
<li>My guess was that SDHG's high shareholder concentration was still very much present, and the stock was getting (unjustly) squeezed.</li>
<li>The SFC concurred on the 18th September, and issued a concentration warning. SDHG's shares cratered 76% on the 19th September, before recovering 49%. Quite the ride. </li>
</ul>


In What's Up (&amp; Up) With Shandong Hi-Speed (412 HK)?, I thought Shandong Hi-Speed Holdings (412 HK) was a bubble after gaining 190% in the past six months. 
My guess was that SDHG's high shareholder concentration was still very much present, and the stock was getting (unjustly) squeezed.
The SFC concurred on the 18th September, and issued a concentration warning. SDHG's shares cratered 76% on the 19th September, before recovering 49%. Quite the ride. 


Shandong Hi-Speed (412 HK): Now Overshot To The Downside

Asia L/S Equity PM/Macro/Thematic Idea Generation

Rikki Malik

Equity Bottom-Up

Kingsoft Cloud Holdings / Equity Bottom-Up

<ul>
<li>HSTECH index on the verge of breaking through its Deepsek high</li>
<li>The market is again rewarding AI and cloud infrastructure spending</li>
<li>We add some names to benefit from this ongoing trend</li>
</ul>


HSTECH index on the verge of breaking through its Deepsek high
The market is again rewarding AI and cloud infrastructure spending
We add some names to benefit from this ongoing trend


Tactical Trading – Adding AI Infrastructure to the China Tech Trade

Listed Real Estate Asia, KT Capital Group

Jacob Cheng

Listed Real Estate Asia

KT Capital Group

Principal investments and advisory firm that focuses on connecting the CIS countries with East Asia.

Principal investments and advisory firm

<ul>
<li>The Fed announced a 25bps rate cut, which is largely anticipated by the market.  The SEP median estimate indicates 2 more cuts in 2025</li>
<li>Regarding HK policy address, there are no meaningful positive surprise related to the property market.  It highlights the importance of Northern Metropolis development, and improving home ownership, and talent admission</li>
<li>Investors should see-through these and focus on big picture: macro developments, monetary policy, and sector fundamentals.  Pick company with attractive valuation and catalysts: NWD, Link REIT, CICT, COLI, VNET, GDS</li>
</ul>


The Fed announced a 25bps rate cut, which is largely anticipated by the market.  The SEP median estimate indicates 2 more cuts in 2025
Regarding HK policy address, there are no meaningful positive surprise related to the property market.  It highlights the importance of Northern Metropolis development, and improving home ownership, and talent admission
Investors should see-through these and focus on big picture: macro developments, monetary policy, and sector fundamentals.  Pick company with attractive valuation and catalysts: NWD, Link REIT, CICT, COLI, VNET, GDS


RE Stock Implications from Fed's Rate Cut and HK PA: Focus on Big Picture, Macro and Sector Drivers

Thematic (Sector/Industry)

<ul>
<li>Both GDS and VNET declined more than 70% from all time high.   We think both stocks are over-penalized by market from top-down macro-economic reasons and geo-political tensions</li>
<li>We think there is a dis-connect between the share price and solid company fundamentals.   The explosive growth in demand for AI and Cloud computing infrastructure remains strong</li>
<li>GDS is a mature, blue-chip name that offers sustainable profitability while on de-leveraging.  VNET is a high-growth, high-risk turnaround play with its wholesale offering higher short-term upside</li>
</ul>


Both GDS and VNET declined more than 70% from all time high.   We think both stocks are over-penalized by market from top-down macro-economic reasons and geo-political tensions
We think there is a dis-connect between the share price and solid company fundamentals.   The explosive growth in demand for AI and Cloud computing infrastructure remains strong
GDS is a mature, blue-chip name that offers sustainable profitability while on de-leveraging.  VNET is a high-growth, high-risk turnaround play with its wholesale offering higher short-term upside


GDS and VNET – Recent Pullback Provides Entry Opportunity, Long-Term AI Growth Solid and Strong

China

VNET Group, Inc. provides carrier-neutral Internet data center services. The Company hosts its customers' servers and networking equipment, as well as provides interconnectivity to enable customers to deliver data across the Internet. VNET Group conducts business in Beijing, China.

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VNET Group (VNET US)

Chindata (CD US): Bain Capital’s Low-Balled Privatisation Offer

While the offer is unattractive, Bain Capital’s voting rights ensure that the vote will pass. The key risks are regulatory approvals and timing.

Arun George

Shandong Hi-Speed (412 HK): Now Overshot To The Downside

I'd look to get some exposure here. But I wouldn't chase it. I doubt the days of large share price gyrations are a thing of the past.

David Blennerhassett

Tactical Trading – Adding AI Infrastructure to the China Tech Trade

HSTECH index showing increased momentum as market approaches Deepseek high. We look at some AI infrastructure beneficiaries

Rikki Malik

RE Stock Implications from Fed's Rate Cut and HK PA: Focus on Big Picture, Macro and Sector Drivers

Investors should see through Fed's 25bps rate cut and HK's Policy Address, and focus on macro development, geopolitical risks, as well as sector...

Jacob Cheng

GDS and VNET – Recent Pullback Provides Entry Opportunity, Long-Term AI Growth Solid and Strong

Both GDS and VNET has declined >70% from all time high, providing a golden entry oppportunity. GDS is a mature blue-chip play offering...

Jacob Cheng

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Chindata (CD US): Bain Capital’s Low-Balled Privatisation Offer

While the offer is unattractive, Bain Capital’s voting rights ensure that the vote will pass. The key risks are regulatory approvals and timing.

Arun George

Shandong Hi-Speed (412 HK): Now Overshot To The Downside

I'd look to get some exposure here. But I wouldn't chase it. I doubt the days of large share price gyrations are a thing of the past.

David Blennerhassett

Tactical Trading – Adding AI Infrastructure to the China Tech Trade

​HSTECH index showing increased momentum as market approaches Deepseek high. We look at some AI infrastructure beneficiaries

Rikki Malik

RE Stock Implications from Fed's Rate Cut and HK PA: Focus on Big Picture, Macro and Sector Drivers

Investors should see through Fed's 25bps rate cut and HK's Policy Address, and focus on macro development, geopolitical risks, as well as sector...

Jacob Cheng

GDS and VNET – Recent Pullback Provides Entry Opportunity, Long-Term AI Growth Solid and Strong

Both GDS and VNET has declined >70% from all time high, providing a golden entry oppportunity. GDS is a mature blue-chip play offering...

Jacob Cheng

HSTECH index showing increased momentum as market approaches Deepseek high. We look at some AI infrastructure beneficiaries