Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

Smartkarma

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IMAX China Holding / Equity Capital Markets

<p>As part of our IPO coverage, we closely followed Hong Kong IPOs over 2015, and wrote on most of the larger deals. In this insight, we've used the data from our deal coverage to highlight a few interesting analytics about the deals that we saw over the past year.</p><p>We've analysed 53 IPO deals and keyed in on 5 charts: the overall performance distribution, and IPO performance based on sector, market cap, lead broker and retail participation. </p><div class="content-remarks">For our analysis we have selected listings in Hong Kong…</div>

As part of our IPO coverage, we closely followed Hong Kong IPOs over 2015, and wrote on most of the larger deals. In this insight, we've used the data from our deal coverage to highlight a few interesting analytics about the deals that we saw over the past year.We've analysed 53 IPO deals and keyed in on 5 charts: the overall performance distribution, and IPO performance based on sector, market cap, lead broker and retail participation. For our analysis we have selected listings in Hong Kong…

5 Key Charts to Wrap-Up 2015 HK IPO - Broker, Sector, and Retail Analytics

<p>IMAX China is a leading cinema technology provider, the exclusive licensee of the IMAX brand and technology and the sole platform for the release of IMAX format movies in Greater China. Its main shareholders, including IMAX Corp, and the company are&nbsp;selling c.US$250m in the coming IPO with 29%/71% split between&nbsp;Primay and Secondary shares.&nbsp;</p><ul><li>We like the company's dominance in the niche premium large format (PLF) film segment and its growth potential at the backdrop of favorable growth of China's film industry (or broadly speaking the entertainment industry). Despite increasing competition, its expansion in recent years has not result in decrease of average revenue per screen for IMAX China. Given the low penetration rate of PLF in China, we think there's still room for expansion for both IMAX and its competitors in the near to medium term. We are concerned, however, about its long term leadership as its competitor are catching up swiftly.</li><li>On valuation, the IPO appears to offer reasonable pricing, if we compare the valuation of 23x - 27x 2016E PER with its parent's (Bloomberg ticker: IMAX US) 26x 2016E PER. As the majority of the growth of its parent company is from Greater China, IMAX China deserves to trade at a premium to its parent. Thus, its parent's valuation should act as a support level for IMAX China.&nbsp;</li><li>The IPO rates well in our Smartkarma IPO Framework for both momentum and value strategy. <strong>We would like to participate in the deal.&nbsp;</strong></li></ul>

IMAX China is a leading cinema technology provider, the exclusive licensee of the IMAX brand and technology and the sole platform for the release of IMAX format movies in Greater China. Its main shareholders, including IMAX Corp, and the company are&nbsp;selling c.US$250m in the coming IPO with 29%/71% split between&nbsp;Primay and Secondary shares.&nbsp;We like the company's dominance in the niche premium large format (PLF) film segment and its growth potential at the backdrop of favorable growth of China's film industry (or broadly speaking the entertainment industry). Despite increasing competition, its expansion in recent years has not result in decrease of average revenue per screen for IMAX China. Given the low penetration rate of PLF in China, we think there's still room for expansion for both IMAX and its competitors in the near to medium term. We are concerned, however, about its long term leadership as its competitor are catching up swiftly.On valuation, the IPO appears to offer reasonable pricing, if we compare the valuation of 23x - 27x 2016E PER with its parent's (Bloomberg ticker: IMAX US) 26x 2016E PER. As the majority of the growth of its parent company is from Greater China, IMAX China deserves to trade at a premium to its parent. Thus, its parent's valuation should act as a support level for IMAX China.&nbsp;The IPO rates well in our Smartkarma IPO Framework for both momentum and value strategy. We would like to participate in the deal.&nbsp;

IMAX China IPO: reasonable valuation, beware of threat from domestic players

Hong Kong

IMAX China Holding, Inc. operates as a holding company. The Company, through its subsidiaries, broadcasts movies in theaters. IMAX China Holding serves customers in China.

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IMAX China Holding (1970 HK)

5 Key Charts to Wrap-Up 2015 HK IPO - Broker, Sector, and Retail Analytics

As part of our IPO coverage, we closely followed Hong Kong IPOs over 2015, and wrote on most of the larger deals. In this insight, we've used the...

Ke Yan, CFA, FRM

IMAX China IPO: reasonable valuation, beware of threat from domestic players

IMAX China is a leading cinema technology provider, the exclusive licensee of the IMAX brand and technology and the sole platform for the release...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)