HK/China Equity Long-Short

Osbert Tang, CFA

Equity Capital Markets

Luxshare Precision Industry / Equity Capital Markets

<ul>
<li>We consider <a href="https://www.smartkarma.com/entities/luxshare-precision-industry-co-ltd-3f59eaa1-da7f-4d9b-add0-c8efccfee0d5" target="_blank" data-smartkarma-citation="entities:50296:1" rel="noopener">Luxshare Precision Industry (2475 HK)</a>'s H-share IPO not expensive, especially given its gigantic market capitalisation which will attract interests. </li>
<li>Its 3-year EPS CAGR is forecast at 19.2%, and its position as a local and global leader in precision intelligent manufacturing solutions justify a premium to peers. </li>
<li>The IPO price is set at 17.6% discount to the A-share. It can at least trade on 10% discount, translating into a price of HK$69.12, or 9.2% upside.</li>
</ul>


We consider Luxshare Precision Industry (2475 HK)'s H-share IPO not expensive, especially given its gigantic market capitalisation which will attract interests. 
Its 3-year EPS CAGR is forecast at 19.2%, and its position as a local and global leader in precision intelligent manufacturing solutions justify a premium to peers. 
The IPO price is set at 17.6% discount to the A-share. It can at least trade on 10% discount, translating into a price of HK$69.12, or 9.2% upside.


Luxshare Precision (2475 HK) IPO: We See Some Potential 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 analyzed the changes in margin trading positions of A-share stocks as of Jun 26th. The aggregated net margin trading position is USD411,555m.</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 CHINA MINSHENG BANKING, PING AN INSURANCE, EAST MONEY INFORMATION, CHONGQING ZONGSHEN POWER MACHINERY, ZIJIN MINING.</li>
</ul>


We analyzed the changes in margin trading positions of A-share stocks as of Jun 26th. The aggregated net margin trading position is USD411,555m.
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 CHINA MINSHENG BANKING, PING AN INSURANCE, EAST MONEY INFORMATION, CHONGQING ZONGSHEN POWER MACHINERY, ZIJIN MINING.


A-Share Margin Trading Weekly (Jun 26th): CHINA MINSHENG BANKING, PING AN INSURANCE, ZIJIN MINING

APAC IPOs & Placements, Aequitas Research

Nicholas Tan

APAC 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.

Crealights Technology / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/crealights-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:49401:1" rel="noopener">Crealights Technology (1191 HK)</a> is looking to raise up to US$191m in its upcoming Hong Kong IPO.</li>
<li>It is a global optoelectronic interconnection products provider. It has established a comprehensive high-speed optoelectronic interconnection product matrix. </li>
<li>In this note, we examine the IPO dynamics, and look at the firm’s valuation.</li>
</ul>



Crealights Technology (1191 HK) is looking to raise up to US$191m in its upcoming Hong Kong IPO.
It is a global optoelectronic interconnection products provider. It has established a comprehensive high-speed optoelectronic interconnection product matrix. 
In this note, we examine the IPO dynamics, and look at the firm’s valuation.


Aequitas: Crealights Pre-IPO -  Small Optical Transceivers Player Scaling into Hot Market

<ul>
<li>
<a href="https://www.smartkarma.com/entities/crealights-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:49401:1" rel="noopener">Crealights Technology (1191 HK)</a>, an optoelectronic interconnection product provider, targets to raise HK$1.4bn from IPO. Its growth is solid, as revenue surged 6x in FY23-25.  </li>
<li>For the next three years, it will ride on AI spending, with revenue growing by a CAGR of 44.3%. However, heavy investments will sustain its losses.</li>
<li>At 4.5x FY26 P/S, the IPO is inexpensive relative to peers. It justifies a 20% discount to <a href="https://www.smartkarma.com/entities/cig-shanghai-co-ltd-class-h" target="_blank" data-smartkarma-citation="entities:46336:1" rel="noopener">CIG Shanghai (6166 HK)</a>, or 5.1x P/S, implying at least 15% upside. </li>
</ul>



Crealights Technology (1191 HK), an optoelectronic interconnection product provider, targets to raise HK$1.4bn from IPO. Its growth is solid, as revenue surged 6x in FY23-25.  
For the next three years, it will ride on AI spending, with revenue growing by a CAGR of 44.3%. However, heavy investments will sustain its losses.
At 4.5x FY26 P/S, the IPO is inexpensive relative to peers. It justifies a 20% discount to CIG Shanghai (6166 HK), or 5.1x P/S, implying at least 15% upside. 


Crealights Technology (1191 HK) IPO: Lighting Up

<ul>
<li>We analyzed the changes in margin trading positions of A-share stocks as of Jun 18th. The aggregated net margin trading position is USD391,810m.</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 GUOTAI HAITONG SECURITIES, EAST MONEY INFORMATION, BOE, FUJIAN TORCH ELECTRON TECHNOLOGY, LEADER HARMONIOUS DRIVE SYSTEMS.</li>
</ul>


We analyzed the changes in margin trading positions of A-share stocks as of Jun 18th. The aggregated net margin trading position is USD391,810m.
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 GUOTAI HAITONG SECURITIES, EAST MONEY INFORMATION, BOE, FUJIAN TORCH ELECTRON TECHNOLOGY, LEADER HARMONIOUS DRIVE SYSTEMS.


A-Share Margin Trading Weekly (Jun 18th): GUOTAI HAITONG SECURITIES, EAST MONEY INFORMATION, BOE

China

Zhongji Innolight Co., Ltd. manufactures and distributes industrial machines and machine parts. The Company produces motor stator windings, insulating machines, coil winding equipment, automatic production lines, and more. Zhongji Innolight mainly conducts businesses domestically.

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Zhongji Innolight (300308 CH)

Luxshare Precision (2475 HK) IPO: We See Some Potential Upside

Luxshare Precision Industry's H-share IPO is attractively priced with strong growth potential and a discount to A-share, offering upside potential.

Osbert Tang, CFA

Aequitas: Crealights Pre-IPO - Small Optical Transceivers Player Scaling into Hot Market

Crealights is looking to raise up to US$191m in its upcoming Hong Kong IPO. In this note, we examine the IPO dynamics, and look at the firm’s...

Nicholas Tan

Crealights Technology (1191 HK) IPO: Lighting Up

Crealights aims to raise HK$1.4bn from IPO, showing strong growth potential. Despite losses forecast for the next 3 years, it is priced at 4.5x...

Osbert Tang, CFA

Price Gauge

52-week Range

Market Cap (USDm)

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Luxshare Precision (2475 HK) IPO: We See Some Potential Upside

​Luxshare Precision Industry's H-share IPO is attractively priced with strong growth potential and a discount to A-share, offering upside potential.

Osbert Tang, CFA

A-Share Margin Trading Weekly (Jun 26th): CHINA MINSHENG BANKING, PING AN INSURANCE, ZIJIN MINING

We analyzed A-share margin trading positions report for the past week and highlighted CHINA MINSHENG BANKING (600016 CH), PING AN INSURANCE (601318...

Ke Yan, CFA, FRM

Aequitas: Crealights Pre-IPO - Small Optical Transceivers Player Scaling into Hot Market

Crealights is looking to raise up to US$191m in its upcoming Hong Kong IPO. In this note, we examine the IPO dynamics, and look at the firm’s...

Nicholas Tan

Crealights Technology (1191 HK) IPO: Lighting Up

​Crealights aims to raise HK$1.4bn from IPO, showing strong growth potential. Despite losses forecast for the next 3 years, it is priced at 4.5x...

Osbert Tang, CFA

A-Share Margin Trading Weekly (Jun 18th): GUOTAI HAITONG SECURITIES, EAST MONEY INFORMATION, BOE

We analyzed A-share margin trading positions report for the past week and highlighted GUOTAI HAITONG SECURITIES (601211 CH), EAST MONEY INFORMATION...

Ke Yan, CFA, FRM

Luxshare Precision Industry's H-share IPO is attractively priced with strong growth potential and a discount to A-share, offering upside potential.

Crealights aims to raise HK$1.4bn from IPO, showing strong growth potential. Despite losses forecast for the next 3 years, it is priced at 4.5x...