HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Over 15 years' experience in both finance and healthcare, covering clinic operations, investment and equity research in both China and overseas.

Pre-IPO UISEE Technologies (PHIP Updates) - The Business, the Concerns and the Outlook

Pre-IPO Shanghai Top Numerical Control Technology (PHIP Updates) - Some Points Worth the Attention

Pre-IPO Shenzhen SDMC Technology (PHIP Updates) - Some Points Worth the Attention

Pre-IPO Cofoe Medical Technology (PHIP Updates) - Some Points Worth the Attention

Pre-IPO Huaqin (A/H Listing) - Low Profit Margin Is a Pain Point Due to Flaws in Business Model

Pre-IPO Manycore Tech - (PHIP Updates) - The Business Model, the Concerns and the Outlook

Equity Capital Markets

Huaqin Technology / Equity Capital Markets

<ul>
<li>The IPO pricing is up to HK$77.7, about 32% discount to Huaqin A-share), higher than normal discount range of 25-30%. 14.2x P/E based on 2026 forecast is lower than peers.</li>
<li>The IPO pricing strategy is "flexible", indicating that investment banks have taken risks into account when setting the price, as HK market's valuation of consumer electronics ODM becomes more rational.</li>
<li>Conservative scenario is P/E of 15-17x. Neutral scenario is P/E of 18-20x. Optimistic scenario is P/E above 21x. So, Huaqin’s IPO pricing leaves room for future potential upside.</li>
</ul>


The IPO pricing is up to HK$77.7, about 32% discount to Huaqin A-share), higher than normal discount range of 25-30%. 14.2x P/E based on 2026 forecast is lower than peers.
The IPO pricing strategy is "flexible", indicating that investment banks have taken risks into account when setting the price, as HK market's valuation of consumer electronics ODM becomes more rational.
Conservative scenario is P/E of 15-17x. Neutral scenario is P/E of 18-20x. Optimistic scenario is P/E above 21x. So, Huaqin’s IPO pricing leaves room for future potential upside.


Pre-IPO Huaqin (3296 HK) - Thoughts on the IPO Pricing and the Outlook