In today’s briefing:
- Merger Arb Mondays (29 Jun) – Con Aero, Skyworth, Changhong Jiahua, Shinko Shoji, Nippon Dry, Qoria
- Aequitas: Guangdong Dtech Technology A/H Listing – Peak Growth, Margins and Valuations
- Innio N.V. (INIO US): Expected Inclusion in Major US Index Despite EU Incorporation
- Aequitas: Crealights Technology Trading – Decent Insti and Retail Demand
- Pre-IPO Guangdong Dtech Technology (PHIP Updates) – Some Points Worth the Attention
Merger Arb Mondays (29 Jun) – Con Aero, Skyworth, Changhong Jiahua, Shinko Shoji, Nippon Dry, Qoria
- I summarise the latest spreads and newsflow for the merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, the Philippines, Thailand, and Chinese ADRs.
- Highest spreads: Skyworth (751 HK), Qoria (QOR AU), Changhong Jiahua (3991 HK), European Lithium (EUR AU), Cygnus Metals (CY5 AU), Continental Aerospace Technologies (232 HK).
- Lowest spreads: Accent Group (AX1 AU), Taiyo Holdings (4626 JP), Kakaku.com Inc (2371 JP), Clearview Wealth (CVW AU), Paltac Corporation (8283 JP), Kodensha Co (1948 JP).
Aequitas: Guangdong Dtech Technology A/H Listing – Peak Growth, Margins and Valuations
- Guangdong Dtech Technology aims to raise around US$600m in its H-share listing.
- Dtech is an integrated provider of precision manufacturing solutions for key process segments of the global printed circuit board (PCB) fabrication value chain.
- In this note, we look at its past performance and other deal dynamics that might impact the listing.
Innio N.V. (INIO US): Expected Inclusion in Major US Index Despite EU Incorporation
- Innio (INIO US) went public on 8 June on Nasdaq, has a market cap of ~$28bn and is incorporated in the Netherlands with dual headquarters in Germany and US.
- Inclusion in a major US index is expected in September 2026 despite EU incorporation based on dual headquarters, US listing and asset-revenue allocation.
- Inclusion in one Global index is anticipated in December 2026 and exclusion from another Global index is projected because of low security float cap.
Aequitas: Crealights Technology Trading – Decent Insti and Retail Demand
- Crealights Technology (1191 HK) raised US$195m in its upcoming Hong Kong IPO.
- It is a global optoelectronic interconnection products provider with a comprehensive high-speed optoelectronic interconnection product matrix.
- We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.
Pre-IPO Guangdong Dtech Technology (PHIP Updates) – Some Points Worth the Attention
- Dtech’s performance is highly dependent on the large-scale production of mid-to-low-end affordable drill bits. The high-end coated micro-drill technology lags behind that of Japanese and Taiwanese competitors
- If demand for AI in next 2-3 years fails to meet optimistic expectations, concentrated release of new production capacity will lead to price war, thereby squeezing the overall profit level.
- Neutral scenario is 30-35x P/E, based on 80%+ net profit growth in 2026, 40%+ gross margin, and the AI-related sentiment does not significantly fade during HK IPO period.
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