IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

Shandong Hi-Speed New Energy G / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/beijing-enterprises-clean-energy-grp-ltd" target="_blank" data-smartkarma-citation="entities:6927:1" rel="noopener">Beijing Enterprises Clean Energy Grp (1250 HK)</a> and <a href="https://www.smartkarma.com/entities/china-shandong-hi-speed-financial-group-limited" target="_blank" data-smartkarma-citation="entities:10356:1" rel="noopener">China Shandong Hi-Speed Financial Group (412 HK)</a>/CSFG have simultaneously entered trading halts today. CSFG is likely a suitor for BE Clean Energy.</li>
<li>There is a track record of SOE privatisations of clean energy companies – <a href="https://www.smartkarma.com/entities/huadian-fuxin-energy-corp-ltd" target="_blank" data-smartkarma-citation="entities:59:1" rel="noopener">Huadian Fuxin Energy Corp (816 HK)</a>,  <a href="https://www.smartkarma.com/entities/huaneng-renewables-corp-h" target="_blank" data-smartkarma-citation="entities:7542:1" rel="noopener">Huaneng Renewables Corp H (958 HK)</a> and CP Clean Energy</li>
<li>In this note, we look at CSFG’s recent failed attempt at acquiring a 22.78% stake at a price of HK$0.088, along with BE Clean Energy's trading updates and peer multiples.   </li>
</ul>



Beijing Enterprises Clean Energy Grp (1250 HK) and China Shandong Hi-Speed Financial Group (412 HK)/CSFG have simultaneously entered trading halts today. CSFG is likely a suitor for BE Clean Energy.
There is a track record of SOE privatisations of clean energy companies – Huadian Fuxin Energy Corp (816 HK),  Huaneng Renewables Corp H (958 HK) and CP Clean Energy
In this note, we look at CSFG’s recent failed attempt at acquiring a 22.78% stake at a price of HK$0.088, along with BE Clean Energy's trading updates and peer multiples.   


BE Clean Energy Back in the Cross Hairs of China Shandong Hi-Speed Financial Group?

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Thematic (Sector/Industry)

<ul>
<li>What to buy in Hong Kong when internet and property names are continuously monitored thus growth rate is clipped?</li>
<li>The utility sector provides the hedge due to its defensive nature.</li>
<li>Clean and renewable energy producers deserve more attention and therefore re-rating. </li>
</ul>


What to buy in Hong Kong when internet and property names are continuously monitored thus growth rate is clipped?
The utility sector provides the hedge due to its defensive nature.
Clean and renewable energy producers deserve more attention and therefore re-rating. 


China Utilities: Your Hedge During War Time

HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

China Three Gorges Renewables / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/china-three-gorges-renewables" target="_blank" data-smartkarma-citation="entities:28950:1" rel="noopener">China Three Gorges Renewables (600905 CH)</a> (CTGR) has an splendid FY21 as it pre-announced result with a range of 46.5-53.1% growth in recurring profit, fuelled by generation and disposal gains. </li>
<li>The first full-year contribution of many projects commissioned in 4Q21, which boosted a 28.4% QoQ surge in power generation, should underpin FY22 earnings - consensus forecast is expecting 41% growth.</li>
<li>YTD, CTGR's share price performed in line with Shanghai Composite Index (-6.1%), but its strong EPS CAGR of 22% for FY21-23 provides room for it to outperformed in medium term. </li>
</ul>



China Three Gorges Renewables (600905 CH) (CTGR) has an splendid FY21 as it pre-announced result with a range of 46.5-53.1% growth in recurring profit, fuelled by generation and disposal gains. 
The first full-year contribution of many projects commissioned in 4Q21, which boosted a 28.4% QoQ surge in power generation, should underpin FY22 earnings - consensus forecast is expecting 41% growth.
YTD, CTGR's share price performed in line with Shanghai Composite Index (-6.1%), but its strong EPS CAGR of 22% for FY21-23 provides room for it to outperformed in medium term. 


China Three Gorges Renewables (600905 CH): Good, and Better Is Coming

<ul>
<li>Nov and Dec wind generation continue to accelerate on a YoY basis, and it is also noteworthy that other renewable energy generation surged 346% MoM and 992% YoY in Dec.</li>
<li>SASAC's latest guidance for the centrally-owned SOEs on installed renewable capacity target of over 50% of total by 2025 is another signal of strong government support on wind power.</li>
<li>Acceptance by Shenzhen Stock Exchange of <a href="https://www.smartkarma.com/entities/inner-mongolia-pingzhuang-energy-resources-co-ltd" target="_blank" data-smartkarma-citation="entities:4267:1" rel="noopener">Inner Mongolia PingZhuang Energy Resources (000780 CH)</a> listing withdrawal application marks another step towards <a href="https://www.smartkarma.com/entities/china-longyuan-power-group-corp-ltd" target="_blank" data-smartkarma-citation="entities:14215:1" rel="noopener">China Longyuan Power Group Corp (916 HK)</a> return to A-share.</li>
</ul>


Nov and Dec wind generation continue to accelerate on a YoY basis, and it is also noteworthy that other renewable energy generation surged 346% MoM and 992% YoY in Dec.
SASAC's latest guidance for the centrally-owned SOEs on installed renewable capacity target of over 50% of total by 2025 is another signal of strong government support on wind power.
Acceptance by Shenzhen Stock Exchange of Inner Mongolia PingZhuang Energy Resources (000780 CH) listing withdrawal application marks another step towards China Longyuan Power Group Corp (916 HK) return to A-share.


China Longyuan (916 HK): The Trend Is Your Friend

China High Speed Transmission Equip Grp / Equity Bottom-Up

<ul>
<li>Undemanding valuation at 6x PER, 2x EV/EBITDA, and 0.6x PBR due to low broker coverage</li>
<li>Top player domestically and top 3 globally for gearbox with clients including Siemens, Suzlon, and General Electric.</li>
<li>The beneficiary of the Chinese government supportive policy measure to achieve net-zero. </li>
</ul>


Undemanding valuation at 6x PER, 2x EV/EBITDA, and 0.6x PBR due to low broker coverage
Top player domestically and top 3 globally for gearbox with clients including Siemens, Suzlon, and General Electric.
The beneficiary of the Chinese government supportive policy measure to achieve net-zero. 


2022 High Conviction - China High Speed (658 HK): Renewable Energy Beneficiary

Hong Kong

CGN New Energy Holdings Co Ltd is a diversified independent power producer in Asia. The Company has a portfolio of gas-fired, coal-fired, oil-fired, hydro, cogen and fuel cell power generation projects in the People's Republic of China and Korea.

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CGN New Energy Holdings (1811 HK)

BE Clean Energy Back in the Cross Hairs of China Shandong Hi-Speed Financial Group?

BE Clean Energy and CSFG have simultaneously entered trading halts today. CSFG is likely a suitor for BE Clean Energy. CSFG recently failed to...

Arun George

China Utilities: Your Hedge During War Time

Most of the clean and RE are still trading at discounted valuations despite the explosive growth last year. It's not too late to start owning some...

Henry Soediarko

China Three Gorges Renewables (600905 CH): Good, and Better Is Coming

CTGR's pre-announced FY21 result beats market expectations, and FY22 beyond will be fuelled by more new capacity completion, particularly from...

Osbert Tang, CFA

China Longyuan (916 HK): The Trend Is Your Friend

Good generation trend is positive, particularly a sharp improvement in other renewables. SASAC's latest SOEs energy targets and a step closer to...

Osbert Tang, CFA

2022 High Conviction - China High Speed (658 HK): Renewable Energy Beneficiary

Trading at a deep discount to its hist valuation, is enough to justify investing in China High Speed. Coupled with a supportive policy by the...

Henry Soediarko

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