HK/China Equity Long-Short

Osbert Tang, CFA

Equity Capital Markets

Shenzhen Zhaowei Machinery & Electronics / Equity Capital Markets

Shenzhen Zhaowei Machinery & Electronics (2692 HK)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shenzhen-zhaowei-machinery-a" target="_blank" data-smartkarma-citation="entities:46000:1" rel="noopener">Shenzhen Zhaowei Machinery (2692 HK)</a>'s IPO does not look attractive, as valuations are not cheap relative to peers, despite a steep 45.6% discount to A-share. </li>
<li>At the maximum IPO price of HK$73.68, Zhaowei will trade on a PER of 50.1x for FY26F and 40.8x for FY27F. Global peers are, on average, just 16.9x.</li>
<li>Even if we park its HA discount alongside its close peer, <a href="https://www.smartkarma.com/entities/zhejiang-sanhua-intelligent-controls-co-ltd" target="_blank" data-smartkarma-citation="entities:45277:1" rel="noopener">Zhejiang Sanhua Intelligent Controls (2050 HK)</a>, it will only mean 6.5% upside from the IPO price.</li>
</ul>



Shenzhen Zhaowei Machinery (2692 HK)'s IPO does not look attractive, as valuations are not cheap relative to peers, despite a steep 45.6% discount to A-share. 
At the maximum IPO price of HK$73.68, Zhaowei will trade on a PER of 50.1x for FY26F and 40.8x for FY27F. Global peers are, on average, just 16.9x.
Even if we park its HA discount alongside its close peer, Zhejiang Sanhua Intelligent Controls (2050 HK), it will only mean 6.5% upside from the IPO price.


Shenzhen Zhaowei (2692 HK) IPO: Limited Near-Term Upside

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 analyse the changes of A-H premium on 176 stocks over the last week. The average A-H premium was 66.6% as of Feb 27th.</li>
<li>The average A-H premium changed by 3.4ppt week-on-week, led by health care, financials, consumer discretionary.</li>
<li>We highlight weekly changes in A-H premium for YOFC, Anhui Conch Cement, ZTE, Huaneng Power International.</li>
</ul>


We analyse the changes of A-H premium on 176 stocks over the last week. The average A-H premium was 66.6% as of Feb 27th.
The average A-H premium changed by 3.4ppt week-on-week, led by health care, financials, consumer discretionary.
We highlight weekly changes in A-H premium for YOFC, Anhui Conch Cement, ZTE, Huaneng Power International.


A-H Premium Weekly (Feb 27th): YOFC, Anhui Conch Cement, ZTE, Huaneng Power International

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/shenzhen-zhaowei-machinery-a" target="_blank" data-smartkarma-citation="entities:46000:1" rel="noopener">Shenzhen Zhaowei Machinery (003021 CH)</a>, aims to raise around US$254m in its H-share listing.</li>
<li>Shenzhen Zhaowei Machinery &amp; Electronic (SZME) is a provider of integrated micro transmission and drive system solutions ranking first in China and fourth globally by revenue, according to F&amp;S.</li>
<li>We have looked at the company’s past performance in our previous note. In this note, we talk about the pricing.</li>
</ul>



Shenzhen Zhaowei Machinery (003021 CH), aims to raise around US$254m in its H-share listing.
Shenzhen Zhaowei Machinery &amp; Electronic (SZME) is a provider of integrated micro transmission and drive system solutions ranking first in China and fourth globally by revenue, according to F&amp;S.
We have looked at the company’s past performance in our previous note. In this note, we talk about the pricing.


Aequitas: Shenzhen Zhaowei A/H Listing - Hoping to Catch the Robotics Wave

APAC IPOs & Placements, Aequitas Research

Nicholas Tan

APAC IPOs & Placements

Estun Automation / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/estun-automation-co-ltd" target="_blank" data-smartkarma-citation="entities:25177:1" rel="noopener">Estun Automation (002747 CH)</a>, aims to raise up to US$300m in its H-share listing.</li>
<li>It is a leading industrial robotics company in China, engaged in the sales of (i) industrial robots and intelligent manufacturing systems and (ii) core automation components and motion control systems.</li>
<li>In this note, we look at its past performance and other deal dynamics that might impact the listing.</li>
</ul>



Estun Automation (002747 CH), aims to raise up to US$300m in its H-share listing.
It is a leading industrial robotics company in China, engaged in the sales of (i) industrial robots and intelligent manufacturing systems and (ii) core automation components and motion control systems.
In this note, we look at its past performance and other deal dynamics that might impact the listing.


Aequitas: Estun Automation A/H Listing -  Playing the Robotics Theme

Wuxi Lead Intelligent Equipmen / Equity Capital Markets

Wuxi Lead Intelligent Equipmen (300450 CH)

<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

China

Zhejiang Sanhua Intellignt Controls Co., Ltd. manufactures service valves, check valves, solenoid valves, electronic expansion valves, and ball valves.

Zhejiang Sanhua Intellignt Controls (002050 CH)

Price Gauge
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Zhejiang Sanhua Intellignt Controls (002050 CH)

Shenzhen Zhaowei (2692 HK) IPO: Limited Near-Term Upside

Shenzhen Zhaowei Machinery's IPO is not particularly attractive at HK$73.68 due to high valuations compared to peers, despite a significant 45.6%...

Osbert Tang, CFA

A-H Premium Weekly (Feb 27th): YOFC, Anhui Conch Cement, ZTE, Huaneng Power International

We analyzed A-H premium changes in the past week and highlight A-H premium changes for YOFC, Anhui Conch Cement, ZTE, Huaneng Power International.

Ke Yan, CFA, FRM

Aequitas: Shenzhen Zhaowei A/H Listing - Hoping to Catch the Robotics Wave

Shenzhen Zhaowei Machinery (003021 CH), aims to raise around US$254m in its H-share listing. In this note, we talk about pricing.

Sumeet Singh

Aequitas: Estun Automation A/H Listing - Playing the Robotics Theme

Estun Automation, aims to raise up to US$300m in its H-share listing. In this note, we look at its past performance and other deal dynamics that...

Nicholas Tan

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

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Shenzhen Zhaowei (2692 HK) IPO: Limited Near-Term Upside

​Shenzhen Zhaowei Machinery's IPO is not particularly attractive at HK$73.68 due to high valuations compared to peers, despite a significant 45.6%...

Osbert Tang, CFA

A-H Premium Weekly (Feb 27th): YOFC, Anhui Conch Cement, ZTE, Huaneng Power International

We analyzed A-H premium changes in the past week and highlight A-H premium changes for YOFC, Anhui Conch Cement, ZTE, Huaneng Power International.

Ke Yan, CFA, FRM

Aequitas: Shenzhen Zhaowei A/H Listing - Hoping to Catch the Robotics Wave

Shenzhen Zhaowei Machinery (003021 CH), aims to raise around US$254m in its H-share listing. In this note, we talk about pricing.

Sumeet Singh

Aequitas: Estun Automation A/H Listing - Playing the Robotics Theme

Estun Automation, aims to raise up to US$300m in its H-share listing. In this note, we look at its past performance and other deal dynamics that...

Nicholas Tan

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

Shenzhen Zhaowei Machinery's IPO is not particularly attractive at HK$73.68 due to high valuations compared to peers, despite a significant 45.6%...