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 latest HK SFC report for aggregate short position as of Jan 9th.</li>
<li>Top short increases and decreases were tabulated for one week and four week period.</li>
<li>We highlight short changes in Xiaomi (1810 HK), AIA (1299 HK), Xtalpi (2228 HK), Xi2Csophstech (7552 HK).</li>
</ul>


We analyzed the latest HK SFC report for aggregate short position as of Jan 9th.
Top short increases and decreases were tabulated for one week and four week period.
We highlight short changes in Xiaomi (1810 HK), AIA (1299 HK), Xtalpi (2228 HK), Xi2Csophstech (7552 HK).


HK Short Interest Weekly: Xiaomi, AIA, Xtalpi

HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

GigaDevice Semiconductor  / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/gigadevice-semiconductor" target="_blank" data-smartkarma-citation="entities:46238:1" rel="noopener">GigaDevice Semiconductor (3986 HK)</a>'s grey market price of HK$224.8 is 38.8% higher than the IPO price. This means a PER of 53.5x for FY26, simply too stretched for us. </li>
<li>The grey market price represents a 68-77% FY26 PER premium to the most-expensive peers, namely <a href="https://www.smartkarma.com/entities/microchip-technology-inc" target="_blank" data-smartkarma-citation="entities:8788:1" rel="noopener">Microchip Technology (MCHP US)</a> and <a href="https://www.smartkarma.com/entities/texas-instruments-inc" target="_blank" data-smartkarma-citation="entities:18804:1" rel="noopener">Texas Instruments (TXN US)</a>. </li>
<li>Our fair value range is HK$204-238, based on the HA discount for 2025 IPOs and the current overall HA discount, implying limited upside potential.</li>
</ul>



GigaDevice Semiconductor (3986 HK)'s grey market price of HK$224.8 is 38.8% higher than the IPO price. This means a PER of 53.5x for FY26, simply too stretched for us. 
The grey market price represents a 68-77% FY26 PER premium to the most-expensive peers, namely Microchip Technology (MCHP US) and Texas Instruments (TXN US). 
Our fair value range is HK$204-238, based on the HA discount for 2025 IPOs and the current overall HA discount, implying limited upside potential.


GigaDevice (3986 HK): Its Just Too Demanding

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.

Equity Capital Markets

OmniVision Integrated Circuits Group / Equity Capital Markets

OmniVision Integrated Circuits Group (603501 CH)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/omnivision-integrated-circuits-group-inc" target="_blank" data-smartkarma-citation="entities:28274:1" rel="noopener">OmniVision Integrated Circuits Group (603501 CH)</a>, a CMOS image sensor (CIS) company, has launched an H Share listing to raise US$617 million.</li>
<li>I discussed the H Share listing in <strong><em><a href="https://www.smartkarma.com/insights/omnivision-h-share-listing-the-investment-case" target="_blank" data-smartkarma-citation="insights:214951" rel="noopener">OmniVision H Share Listing: The Investment Case</a></em></strong>. </li>
<li>The proposed AH discount of 25.5% (based on the 30 December A Share price) is resonable, and I would participate in the H Share listing.</li>
</ul>



OmniVision Integrated Circuits Group (603501 CH), a CMOS image sensor (CIS) company, has launched an H Share listing to raise US$617 million.
I discussed the H Share listing in OmniVision H Share Listing: The Investment Case. 
The proposed AH discount of 25.5% (based on the 30 December A Share price) is resonable, and I would participate in the H Share listing.


OmniVision H Share Listing (501 HK): Valuation Insights

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of January 2nd.</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 China Mobile, CMB, Tencent, ABC, HKEx, SMIC, Innovent Biologics, Ck Infrastructure.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of January 2nd.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for China Mobile, CMB, Tencent, ABC, HKEx, SMIC, Innovent Biologics, Ck Infrastructure.


HK Connect Flows Weekly (Jan 2nd): China Mobile, CMB, Tencent, ABC, HKEx, SMIC, Innovent Biologics

Event-Driven

<ul>
<li>Nine months after the offer was announced, <a href="https://www.smartkarma.com/entities/enn-natural-gas-co-ltd" target="_blank" data-smartkarma-citation="entities:16456:1" rel="noopener">ENN Natural Gas (600803 CH)</a> has satisfied the regulatory precondition related to its <a href="https://www.smartkarma.com/entities/enn-energy-holdings-ltd" target="_blank" data-smartkarma-citation="entities:316:1" rel="noopener">ENN Energy (2688 HK)</a> offer. </li>
<li>The remaining precondition is approval from CSRC and HKEx, which are low-risk. The long stop date is 13 March 2026, which may have to be extended.</li>
<li>The appraised offer HK$80.00 value is the key debating point. Based on several methodologies, I estimate a realistic offer value of HK$78.53 (range of HK$71.85 to HK$89.72).</li>
</ul>


Nine months after the offer was announced, ENN Natural Gas (600803 CH) has satisfied the regulatory precondition related to its ENN Energy (2688 HK) offer. 
The remaining precondition is approval from CSRC and HKEx, which are low-risk. The long stop date is 13 March 2026, which may have to be extended.
The appraised offer HK$80.00 value is the key debating point. Based on several methodologies, I estimate a realistic offer value of HK$78.53 (range of HK$71.85 to HK$89.72).


ENN Energy (2688 HK): Regulatory Precondition Satisfied

China

Zhejiang Sanhua Intelligent Controls Co., Ltd. researches, manufactures, and sells refrigeration and air-conditioning electrical parts and auto parts. The company specializes in environmentally friendly thermal management solutions, developing HVAC systems, home appliance equipment, and thermal management solutions for new energy vehicles. It was founded in 1994 and is headquartered in Shaoxing, China.

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Sanhua Intelligent Controls (2050 HK)

HK Short Interest Weekly: Xiaomi, AIA, Xtalpi

We analyzed the latest HK SFC report for aggregate short position as of Jan 9th and highlight short interest changes in Xiaomi, AIA, Xtalpi.

Ke Yan, CFA, FRM

GigaDevice (3986 HK): Its Just Too Demanding

GigaDevice's grey market price is 38.8% higher than IPO, leading to a FY26 PER of 53.5x, with limited upside potential compared to peers, even...

Osbert Tang, CFA

HK Connect Flows Weekly (Jan 2nd): China Mobile, CMB, Tencent, ABC, HKEx, SMIC, Innovent Biologics

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for China Mobile, CMB, Tencent, ABC, HKEx, SMIC, Innovent...

Ke Yan, CFA, FRM

ENN Energy (2688 HK): Regulatory Precondition Satisfied

Nine months in, the regulatory precondition was finally satisfied. Based on several methodologies, I estimate a realistic offer value of HK$78.53...

Arun George

Price Gauge

52-week Range

Market Cap (USDm)

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Dividend (Yield)

HK Short Interest Weekly: Xiaomi, AIA, Xtalpi

We analyzed the latest HK SFC report for aggregate short position as of Jan 9th and highlight short interest changes in Xiaomi, AIA, Xtalpi.

Ke Yan, CFA, FRM

GigaDevice (3986 HK): Its Just Too Demanding

​GigaDevice's grey market price is 38.8% higher than IPO, leading to a FY26 PER of 53.5x, with limited upside potential compared to peers, even...

Osbert Tang, CFA

OmniVision H Share Listing (501 HK): Valuation Insights

OmniVision, a CMOS image sensor (CIS) company, has launched an H Share listing to raise US$617 million. In this note, I discuss the valuation.

Arun George

HK Connect Flows Weekly (Jan 2nd): China Mobile, CMB, Tencent, ABC, HKEx, SMIC, Innovent Biologics

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for China Mobile, CMB, Tencent, ABC, HKEx, SMIC, Innovent...

Ke Yan, CFA, FRM

ENN Energy (2688 HK): Regulatory Precondition Satisfied

Nine months in, the regulatory precondition was finally satisfied. Based on several methodologies, I estimate a realistic offer value of HK$78.53...

Arun George

GigaDevice's grey market price is 38.8% higher than IPO, leading to a FY26 PER of 53.5x, with limited upside potential compared to peers, even...