HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Wuxi Lead Intelligent Equipmen / Equity Capital Markets

Wuxi Lead Intelligent Equipmen (300450 CH)

<ul>
<li>Investors are concerned about whether this high growth in 2025 represents a temporary rebound in industry or a sustainable trend. The concern on fundamentals directly suppressed the stock price performance. </li>
<li>The IPO pricing of HK$45.8/share is supported by core strength and business model, but it does not leave sufficient safety margin to hedge against short-term market pessimism towards cyclical stocks.</li>
<li>Given the current market attitude towards new energy equipment, HK$35-42/share may represent a more solid bottom area.Share price can easily break through IPO pricing when WUXI LEAD fulfill high-growth commitment.  </li>
</ul>


Investors are concerned about whether this high growth in 2025 represents a temporary rebound in industry or a sustainable trend. The concern on fundamentals directly suppressed the stock price performance. 
The IPO pricing of HK$45.8/share is supported by core strength and business model, but it does not leave sufficient safety margin to hedge against short-term market pessimism towards cyclical stocks.
Given the current market attitude towards new energy equipment, HK$35-42/share may represent a more solid bottom area.Share price can easily break through IPO pricing when WUXI LEAD fulfill high-growth commitment.  


Wuxi Lead Intelligent Equipment - The Concerns On Fundamentals and the Valuation Outlook

<ul>
<li>The “comprehensive technical expertise+ whole-line delivery capability+global top-tier customer ecosystem” forms unique barrier of WUXI LEAD. The competitive logic has evolved from "equipment cost-effectiveness" to "technological gap" and "solution capability".</li>
<li>The IPO pricing is HK$45.8/share, with market value of HK$76 billion (or RMB67.5 billion). Based on the net profit forecast of 2025, 2026, 2027, P/E is 42.2x, 29.4x, 22.5x, respectively.</li>
<li>35-40x P/E is acceptable range. The IPO pricing may have partially reflected the expectations for future growth. Considering WUXI LEAD’s growth certainty is higher, it can enjoy certain valuation premium.</li>
</ul>


The “comprehensive technical expertise+ whole-line delivery capability+global top-tier customer ecosystem” forms unique barrier of WUXI LEAD. The competitive logic has evolved from "equipment cost-effectiveness" to "technological gap" and "solution capability".
The IPO pricing is HK$45.8/share, with market value of HK$76 billion (or RMB67.5 billion). Based on the net profit forecast of 2025, 2026, 2027, P/E is 42.2x, 29.4x, 22.5x, respectively.
35-40x P/E is acceptable range. The IPO pricing may have partially reflected the expectations for future growth. Considering WUXI LEAD’s growth certainty is higher, it can enjoy certain valuation premium.


Pre-IPO Wuxi Lead Intelligent Equipment (A/H Listing) - The Core Strength and Thoughts on Valuation

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.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/wuxi-lead-intelligent-equipmen" target="_blank" data-smartkarma-citation="entities:27971:1" rel="noopener">Wuxi Lead Intelligent Equipmen (300450 CH)</a>,  raised around US$725m in its H-share listing.</li>
<li>WLIE is a global platform-based intelligent equipment enterprise, offering intelligent equipment and solutions to a wide range of emerging and high-end manufacturing industries.</li>
<li>We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the trading dynamics.</li>
</ul>



Wuxi Lead Intelligent Equipmen (300450 CH),  raised around US$725m in its H-share listing.
WLIE is a global platform-based intelligent equipment enterprise, offering intelligent equipment and solutions to a wide range of emerging and high-end manufacturing industries.
We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the trading dynamics.


Aequitas: Wuxi Lead A/H Trading - Weak Retail, Okish Institutional Demand

HK/China Equity Long-Short

Osbert Tang, CFA

<ul>
<li>
<a href="https://www.smartkarma.com/entities/wuxi-lead-intelligent-equipmen" target="_blank" data-smartkarma-citation="entities:27971:1" rel="noopener">Wuxi Lead Intelligent Equipment (470 HK)</a> has a lukewarm H-share IPO response, but is still priced at the maximum of HK$45.80. This places it on 29.2x PER for FY26F.</li>
<li>We consider an appropriate HA discount to be roughly 25-30%, implying a fair value of HK$45.6-48.8, or 6.6% downside/upside, and it is almost fairly-valued. </li>
<li>At the top-end of our estimated fair value, its multiples do not appear attractive against the A-share and other global peers, so HK$48.8 is the ceiling. </li>
</ul>



Wuxi Lead Intelligent Equipment (470 HK) has a lukewarm H-share IPO response, but is still priced at the maximum of HK$45.80. This places it on 29.2x PER for FY26F.
We consider an appropriate HA discount to be roughly 25-30%, implying a fair value of HK$45.6-48.8, or 6.6% downside/upside, and it is almost fairly-valued. 
At the top-end of our estimated fair value, its multiples do not appear attractive against the A-share and other global peers, so HK$48.8 is the ceiling. 


Wuxi Lead Equipment (470 HK): Almost Fair

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

<ul>
<li>Our base case valuation of Wuxi Lead Intelligent Equipment is HK$58.2 per share, which is 27% higher than the maximum offer price of HK$45.80. </li>
<li>Given the reasonable upside, we have a Positive View of this Hong Kong IPO.</li>
<li>Our base case valuation is based on P/E of 38.9x our estimated net profit of RMB2.9 billion in 2027. It also includes a 25% discount for the H-shares listing.</li>
</ul>


Our base case valuation of Wuxi Lead Intelligent Equipment is HK$58.2 per share, which is 27% higher than the maximum offer price of HK$45.80. 
Given the reasonable upside, we have a Positive View of this Hong Kong IPO.
Our base case valuation is based on P/E of 38.9x our estimated net profit of RMB2.9 billion in 2027. It also includes a 25% discount for the H-shares listing.


Wuxi Lead Intelligent Equipment Hong Kong IPO Valuation Analysis

China

Wuxi Lead Intelligent Equipment Co Ltd is a manufacturer of high-tech equiptments. The company designs and manufactures electronic capacitors, solar energy equipments and lithium batteries equipments.

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Wuxi Lead Intelligent Equipmen (300450 CH)

Wuxi Lead Intelligent Equipment - The Concerns On Fundamentals and the Valuation Outlook

WuXi Lead's IPO pricing lacks safety margin against market concerns on fundamentals/outlook. 30-35x P/E is neutral valuation range. The price range...

Xinyao (Criss) Wang

Pre-IPO Wuxi Lead Intelligent Equipment (A/H Listing) - The Core Strength and Thoughts on Valuation

Based on our forecast, the current market is mainly focused on the "V-shaped rebound" of 2025 performance and future high growth.WUXI LEAD can...

Xinyao (Criss) Wang

Aequitas: Wuxi Lead A/H Trading - Weak Retail, Okish Institutional Demand

Wuxi Lead Intelligent Equipmen (300450 CH), raised around US$725m in its H-share listing. In this note, we talk about the trading dynamics.

Sumeet Singh

Wuxi Lead Equipment (470 HK): Almost Fair

Wuxi Lead Intelligent Equipment's lukewarm IPO response leads to a fair value estimate of HK$45.6-48.8, suggesting it is almost fairly-valued with...

Osbert Tang, CFA

Wuxi Lead Intelligent Equipment Hong Kong IPO Valuation Analysis

Our base case valuation of Wuxi Lead Intelligent Equipment is HK$58.2 per share, which is 27% higher than the maximum offer price of HK$45.80.

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Wuxi Lead Intelligent Equipment - The Concerns On Fundamentals and the Valuation Outlook

WuXi Lead's IPO pricing lacks safety margin against market concerns on fundamentals/outlook. 30-35x P/E is neutral valuation range. The price range...

Xinyao (Criss) Wang

Pre-IPO Wuxi Lead Intelligent Equipment (A/H Listing) - The Core Strength and Thoughts on Valuation

Based on our forecast, the current market is mainly focused on the "V-shaped rebound" of 2025 performance and future high growth.WUXI LEAD can...

Xinyao (Criss) Wang

Aequitas: Wuxi Lead A/H Trading - Weak Retail, Okish Institutional Demand

Wuxi Lead Intelligent Equipmen (300450 CH), raised around US$725m in its H-share listing. In this note, we talk about the trading dynamics.

Sumeet Singh

Wuxi Lead Equipment (470 HK): Almost Fair

​Wuxi Lead Intelligent Equipment's lukewarm IPO response leads to a fair value estimate of HK$45.6-48.8, suggesting it is almost fairly-valued with...

Osbert Tang, CFA

Wuxi Lead Intelligent Equipment Hong Kong IPO Valuation Analysis

Our base case valuation of Wuxi Lead Intelligent Equipment is HK$58.2 per share, which is 27% higher than the maximum offer price of HK$45.80.

Douglas Kim

Wuxi Lead Intelligent Equipment's lukewarm IPO response leads to a fair value estimate of HK$45.6-48.8, suggesting it is almost fairly-valued with...