APAC IPOs & Placements, Aequitas Research

Ethan Aw

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.

Equity Capital Markets

Horizon Construction Development / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/horizon-construction-development" target="_blank" data-smartkarma-citation="entities:35117:1" rel="noopener">Horizon Construction Development (1887128D HK)</a> is looking to raise US$223m in its upcoming Hong Kong IPO.</li>
<li>HCD is an equipment operation service provider in China. It provides services covering the full cycle of projects.</li>
<li>In our previous notes, we looked at the company’s past performance and refiled PHIP updates. In this note, we undertake a quick peer comparison and share our thoughts on valuation.</li>
</ul>



Horizon Construction Development (1887128D HK) is looking to raise US$223m in its upcoming Hong Kong IPO.
HCD is an equipment operation service provider in China. It provides services covering the full cycle of projects.
In our previous notes, we looked at the company’s past performance and refiled PHIP updates. In this note, we undertake a quick peer comparison and share our thoughts on valuation.


Horizon Construction Development IPO - Peer Comparison & Thoughts on Valuation

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

Zoomlion Heavy Industry H / Equity Bottom-Up

<ul><li>Zoomlion’s net profit in 1Q23 dropped 11% YoY to RMB810mn, below our expectation but due largely to fx loss.</li><li>On the positive side, Zoomlion delivered revenue growth of 4% in 1Q23, the first YoY growth since 2Q21, driven by 123% YoY increase in overseas revenue.</li><li>Besides, gross margin expanded 6.3ppt YoY and 2.2ppt QoQ to 26.3%. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Zoomlion’s net profit in 1Q23 dropped 11% YoY to RMB810mn, below our expectation but due largely to fx loss.On the positive side, Zoomlion delivered revenue growth of 4% in 1Q23, the first YoY growth since 2Q21, driven by 123% YoY increase in overseas revenue.Besides, gross margin expanded 6.3ppt YoY and 2.2ppt QoQ to 26.3%. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Zoomlion (1157 HK) – 1Q23 earnings slightly below expectation but recovery trend largely on track

Zoomlion Heavy Industry S A / Equity Bottom-Up

Zoomlion (000157 CH) – 1Q23 earnings slightly below expectation but recovery trend largely on track

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>In Q1 2023, 86 different Hong Kong-listed companies bought back shares either locally or on foreign exchanges. Total buybacks were HK$22.856bn.</li>
<li>8 Companies made up 90% of the total. On average, they bought back shares 4 days out of every 10 within the quarter. </li>
<li>A lot of the smaller companies doing buybacks were significant portions of their volume.</li>
</ul>


In Q1 2023, 86 different Hong Kong-listed companies bought back shares either locally or on foreign exchanges. Total buybacks were HK$22.856bn.
8 Companies made up 90% of the total. On average, they bought back shares 4 days out of every 10 within the quarter. 
A lot of the smaller companies doing buybacks were significant portions of their volume.


HK Buybacks Q1 2023: 8 Names Are 90% of the Total - AIA, Tencent, StanChart, Greatwall the Big 4

<ul><li>Zoomlion’s net profit in 2022 came in at RMB2.35bn (-63% YoY), in the middle of the range of RMB2.25-4.45bn pre-announced in Jan.</li><li>What surprised us is the final dividend of RMB0.32, which represents a 115% payout ratio and ~9% yield based on the current share price.</li><li>The generous dividend, together with the possibility to start buying back H-share, suggest that management is confident of the cash generating capability which will likely translate into positive share price performance.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Zoomlion’s net profit in 2022 came in at RMB2.35bn (-63% YoY), in the middle of the range of RMB2.25-4.45bn pre-announced in Jan.What surprised us is the final dividend of RMB0.32, which represents a 115% payout ratio and ~9% yield based on the current share price.The generous dividend, together with the possibility to start buying back H-share, suggest that management is confident of the cash generating capability which will likely translate into positive share price performance.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Zoomlion (1157 HK) – Surprise on dividend; Recovery in sight

China

Zoomlion Heavy Industry Science and Technology Co., Ltd.manufactures and markets construction machinery.  The Company's products include concrete machinery, cranes, road machinery, drilling equipment, and other heavy construction equipment.  Zoomlion also produces environmental machinery and satellite navigation products.

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Zoomlion Heavy Industry H (1157 HK)

Horizon Construction Development IPO - Peer Comparison & Thoughts on Valuation

Horizon Construction Development (1887128D HK) is looking to raise US$223m in its upcoming Hong Kong IPO. In this note, we undertake a quick peer...

Ethan Aw

Zoomlion (1157 HK) – 1Q23 earnings slightly below expectation but recovery trend largely on track

On the positive side, Zoomlion delivered revenue growth of 4% in 1Q23, the first YoY growth since 2Q21, driven by 123% YoY increase in overseas...

CMB International

Zoomlion (000157 CH) – 1Q23 earnings slightly below expectation but recovery trend largely on track

On the positive side, Zoomlion delivered revenue growth of 4% in 1Q23, the first YoY growth since 2Q21, driven by 123% YoY increase in overseas...

CMB International

HK Buybacks Q1 2023: 8 Names Are 90% of the Total - AIA, Tencent, StanChart, Greatwall the Big 4

86 names listed in HK bought back shares in Q1. 90% of total buybacks were done by 8 names. half the names bought back less than US$1mm. AIA,...

Travis Lundy

Zoomlion (1157 HK) – Surprise on dividend; Recovery in sight

Zoomlion’s net profit in 2022 came in at RMB2.35bn (-63% YoY), in the middle of the range of RMB2.25-4.45bn pre-announced in Jan.

CMB International

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