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.

Equity Capital Markets

Shenzhen Kinwong Electronic / Equity Capital Markets

<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

Quantitative Analysis

<ul>
<li>We analyzed the changes in margin trading positions of A-share stocks as of Sep 11th. The aggregated net margin trading position is USD352,965m.</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 PING AN INSURANCE, SAIC MOTOR, CITIC SECURITIES, Moutai, FEILONG AUTO COMPONENTS.</li>
</ul>


We analyzed the changes in margin trading positions of A-share stocks as of Sep 11th. The aggregated net margin trading position is USD352,965m.
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 PING AN INSURANCE, SAIC MOTOR, CITIC SECURITIES, Moutai, FEILONG AUTO COMPONENTS.


A-Share Margin Trading Weekly (Sep 11th): PING AN INSURANCE, SAIC MOTOR, CITIC SECURITIES, Moutai

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>Kinwong is hard to earn decent profit margin in traditional business. If raw material prices remain high or the downstream price war continues, the gross margin may face further pressure.</li>
<li>Considering the decline in Kinwong's profits, the low level of gross margin, and the rapid increase in financial leverage, current stock price of Kinwong A-share has deviated from its fundamentals.</li>
<li>A neutral scenario could be P/E of 32-38x based on 2026 forecast. A conservative scenario could be P/E of 25-30x, and an optimistic scenario could be P/E of 38-45x.</li>
</ul>


Kinwong is hard to earn decent profit margin in traditional business. If raw material prices remain high or the downstream price war continues, the gross margin may face further pressure.
Considering the decline in Kinwong's profits, the low level of gross margin, and the rapid increase in financial leverage, current stock price of Kinwong A-share has deviated from its fundamentals.
A neutral scenario could be P/E of 32-38x based on 2026 forecast. A conservative scenario could be P/E of 25-30x, and an optimistic scenario could be P/E of 38-45x.


Pre-IPO Shenzhen Kinwong Electronic (PHIP Updates) - Some Points Worth the Attention

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

Foxconn Industrial Internet / Technical Analysis

<ul>
<li>Not much has changed since our latest Int'l Compass from May 31, 2024 titled "Buy the Pullback." </li>
<li>We were buyers of the pullback in global equities (MSCI ACWI, ACWI ex-US, EAFE, EM, Europe, Japan, Taiwan, etc.) with important supports holding, combined with ongoing healthy market dynamics.</li>
<li>Supports are holding, and our bullish outlook (since early-November 2023) remains intact. Continue to buy dips.</li>
</ul>


Not much has changed since our latest Int'l Compass from May 31, 2024 titled "Buy the Pullback." 
We were buyers of the pullback in global equities (MSCI ACWI, ACWI ex-US, EAFE, EM, Europe, Japan, Taiwan, etc.) with important supports holding, combined with ongoing healthy market dynamics.
Supports are holding, and our bullish outlook (since early-November 2023) remains intact. Continue to buy dips.


Downgrading Europe to Market Weight; Europe Indexes Still Bullish (Price); Bullish Outlook Intact

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.

Shenzhen Megmeet Electrical  / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shenzhen-megmeet-electrical-co" target="_blank" data-smartkarma-citation="entities:29400:1" rel="noopener">Shenzhen Megmeet Electrical (002851 CH)</a> (SME), an industrial technology group, aims to raise around US$750m in its H-share listing.</li>
<li>SME has a broad product portfolio with six major business segments comprising power supplies, new energy transportation, industrial automation, smart home appliances, intelligent equipment, and precision connectivity and magnetic components.</li>
<li>In this note, we look at its past performance and other deal dynamics that might impact the listing.</li>
</ul>



Shenzhen Megmeet Electrical (002851 CH) (SME), an industrial technology group, aims to raise around US$750m in its H-share listing.
SME has a broad product portfolio with six major business segments comprising power supplies, new energy transportation, industrial automation, smart home appliances, intelligent equipment, and precision connectivity and magnetic components.
In this note, we look at its past performance and other deal dynamics that might impact the listing.


Aequitas: Shenzhen Megmeet Electrical A/H Listing - Broad Portfolio, Stock Driven by NVIDIA

China

WUS Printed Circuit (Kunshan) Co., Ltd produces and sells electrical equipments and related products.  The Company's products include double-side circuit board, multi-layers circuit board, and connector for electrical equipments.

Wus Printed Circuit (Kunshan) Co,Ltd. (002463 CH)

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Wus Printed Circuit (Kunshan) Co,Ltd. (002463 CH)

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

Pre-IPO Shenzhen Kinwong Electronic (PHIP Updates) - Some Points Worth the Attention

Stock price of Kinwong A-share has deviated from its fundamentals. It more reflects market sentiment and the premium associated with "AI concept"....

Xinyao (Criss) Wang

Downgrading Europe to Market Weight; Europe Indexes Still Bullish (Price); Bullish Outlook Intact

Downgrading Europe to Market Weight $FEZ $STOXX; Europe Still Bullish From a Price Perspective; Bullish Outlook Intact on $ACWI $EEM; Supports...

Vermilion Research

Aequitas: Shenzhen Megmeet Electrical A/H Listing - Broad Portfolio, Stock Driven by NVIDIA

Shenzhen Megmeet Electrical (002851 CH) (SME), an industrial technology group, aims to raise around US$750m in its H-share listing. In this note,...

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

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

A-Share Margin Trading Weekly (Sep 11th): PING AN INSURANCE, SAIC MOTOR, CITIC SECURITIES, Moutai

We analyzed A-share margin trading positions report for the past week and highlighted PING AN INSURANCE, SAIC MOTOR, CITIC SECURITIES, Moutai,...

Ke Yan, CFA, FRM

Pre-IPO Shenzhen Kinwong Electronic (PHIP Updates) - Some Points Worth the Attention

Stock price of Kinwong A-share has deviated from its fundamentals. It more reflects market sentiment and the premium associated with "AI concept"....

Xinyao (Criss) Wang

Downgrading Europe to Market Weight; Europe Indexes Still Bullish (Price); Bullish Outlook Intact

Downgrading Europe to Market Weight $FEZ $STOXX; Europe Still Bullish From a Price Perspective; Bullish Outlook Intact on $ACWI $EEM; Supports...

Vermilion Research

Aequitas: Shenzhen Megmeet Electrical A/H Listing - Broad Portfolio, Stock Driven by NVIDIA

Shenzhen Megmeet Electrical (002851 CH) (SME), an industrial technology group, aims to raise around US$750m in its H-share listing. In this note,...

Sumeet Singh