In today’s briefing:
- Sanhua Intelligent Controls H Share Listing (2050 HK): Trading Debut
- Zhejiang Sanhua Intelligent Controls A/H Trading – Strong Demand, Weakening Sentiment
- Geek+ IPO Valuation Update: Growth Cratered, High U.S. Revenue Exposure
- Defense Tech: Taiwan Advanced Submarine Trial & Global Turmoil Puts CSBC in the Investor Spotlight
- Chandra Dayua Pre-IPO: Very Expensive, Avoid
Sanhua Intelligent Controls H Share Listing (2050 HK): Trading Debut
- Zhejiang Sanhua Intelligent Controls (2050 HK) priced its H Share at HK$22.53 to raise HK$9,336 million (US$1.2 billion) in gross proceeds. The H Share will be listed tomorrow.
- I discussed the H Share listing in Sanhua Intelligent Controls H Share Listing: The Investment Case.
- Sanhua had the highest international oversubscription rates among recent large AH listings. Despite the weak price momentum, the AH discount is attractive.
Zhejiang Sanhua Intelligent Controls A/H Trading – Strong Demand, Weakening Sentiment
- Zhejiang Sanhua Intellignt Controls (002050 CH) (ZSIC), a manufacturer of refrigeration and air-conditioning control components, raised around US$1.4bn in its H-share listing.
- ZSIC is a market leader in a number of products, with commanding market share both domestically and globally.
- 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.
Geek+ IPO Valuation Update: Growth Cratered, High U.S. Revenue Exposure
- Geek+, AI & robotics warehouse automation provider, has updated its filings and reported weak revenue growth in 2024.
- Beijing based AMR solution unicorn’s revenue grew to RMB2,409m in 2024, up ~12% YoY. However, gross margins improved, operating losses narrowed, and cash burn rate decreased.
- My IPO valuation analysis coalesces around initial valuation range between $2.3B and $2.7B for Geek+ upcoming offering.
Defense Tech: Taiwan Advanced Submarine Trial & Global Turmoil Puts CSBC in the Investor Spotlight
- Submarine Milestone Validates CSBC’s Strategic Role: Taiwan’s June 17 maiden sea trial of the Hai Kun-class submarine highlights CSBC as the sole builder of Taiwan’s Indigenous Defense Submarine (IDS) program.
- Scale of Program Is Significant vs. Market Cap: Seven additional submarines are expected to follow, with a reported program budget of NT$284bn (~US$9.5bn), over 12x CSBC’s current US$760m market cap.
- Emerging Naval, Drones, & Energy Platforms Provide Optionality: Beyond submarines, CSBC is expanding into unmanned surface vessels (USVs) and offshore wind engineering, offering long-term exposure to Taiwan’s asymmetric defense.
Chandra Dayua Pre-IPO: Very Expensive, Avoid
- Chandra Dayua Investasi (2556380D IJ) is looking to raise up to $145m in its upcoming Hong Kong IPO.
- It is the infrastructure arm of Chandra Asri Pacific (TPIA), backed by Indonesian billionaire Prajogo Pangestu.
- In this note, we examine the IPO dynamics, and look at the firm’s valuation.
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