HK/China Equity Long-Short

Osbert Tang, CFA

Equity Capital Markets

China Three Gorges Renewables / Equity Capital Markets

<p>China's environmental initiatives seem to have reflected on the acceleration of new and clean energy A-share IPO approval pipeline lately. The CSRC approved 3 such IPOs, including the largest one <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 (CIWGCZ CH)</a> in its issuance appraisal committee meetings in Dec. By number, these three companies equal to significant 23% of all the approvals so far in the month, compared with none for Sep-Nov. </p><p>On 24 Dec, another sizeable player - Zhejiang Provincial New Energy Investment Group Co., Ltd (ZJNE) - will go through the committee meeting. If it is approved, and likely will be, new and clean energy IPOs approved will reach 25% of total approved in Dec. They will likely to reach the market in late-1Q21 to the earliest, raising an aggregate of Rmb29bn from the market - 2021 will definitely be an eventful year for new and clean energy sector in China.  </p>

China's environmental initiatives seem to have reflected on the acceleration of new and clean energy A-share IPO approval pipeline lately. The CSRC approved 3 such IPOs, including the largest one China Three Gorges Renewables (CIWGCZ CH) in its issuance appraisal committee meetings in Dec. By number, these three companies equal to significant 23% of all the approvals so far in the month, compared with none for Sep-Nov. On 24 Dec, another sizeable player - Zhejiang Provincial New Energy Investment Group Co., Ltd (ZJNE) - will go through the committee meeting. If it is approved, and likely will be, new and clean energy IPOs approved will reach 25% of total approved in Dec. They will likely to reach the market in late-1Q21 to the earliest, raising an aggregate of Rmb29bn from the market - 2021 will definitely be an eventful year for new and clean energy sector in China.  

China New and Clean Energy: A-Share IPO Pipeline Gathering Pace

<div><p><a href="https://www.smartkarma.com/entities/beijing-shanghai-high-speed-railway" target="_blank" data-smartkarma-citation="entities:28433:1" rel="noopener"></a><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 (CIWGCZ CH)</a>, CTGR, has filed an application for IPO in the Shanghai Stock Exchange. It engages in the development, investment and operations of wind and solar power generation projects, with total installed capacity of 9.91GW at end-Sep 2019. It has a national market share of 3.04% in wind power and 2.35% in solar power. CTGR plans to raise Rmb25bn in its IPO for the investment in seven offshore wind power projects and replenishment of working capital. CTGR will be the largest A-share in renewable energy business upon successful listing. </p></div><div><p>Key positives are: 1.) strong background, diversified locations and established record; 2.) solid capacity and profit growth with confirmed project pipeline; 3.) well balanced generation mix; and 4.) largest renewable A-share company with sizeable market capitalisation.</p></div><div><p>Key negatives are: 1.) heavy capex with significant capacity expansion; 2.) margin pressure on lower tariff/subsidies and power trading; and 3.) significant receivables from government subsidies.</p></div>

China Three Gorges Renewables (CIWGCZ CH), CTGR, has filed an application for IPO in the Shanghai Stock Exchange. It engages in the development, investment and operations of wind and solar power generation projects, with total installed capacity of 9.91GW at end-Sep 2019. It has a national market share of 3.04% in wind power and 2.35% in solar power. CTGR plans to raise Rmb25bn in its IPO for the investment in seven offshore wind power projects and replenishment of working capital. CTGR will be the largest A-share in renewable energy business upon successful listing. Key positives are: 1.) strong background, diversified locations and established record; 2.) solid capacity and profit growth with confirmed project pipeline; 3.) well balanced generation mix; and 4.) largest renewable A-share company with sizeable market capitalisation.Key negatives are: 1.) heavy capex with significant capacity expansion; 2.) margin pressure on lower tariff/subsidies and power trading; and 3.) significant receivables from government subsidies.

China Three Gorges Renewables A-Share Pre-IPO: Initial Thoughts

China

China Three Gorges Renewables (Group) Co.,Ltd. operates renewable energy generation businesses. The Company generates onshore wind power, photovoltaic power, wind power, hydropower, solar power, and other power products. China Three Gorges Renewables (Group) also operates investment businesses.

China Three Gorges Renewables (600905 CH)

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China New and Clean Energy: A-Share IPO Pipeline Gathering Pace

China's environmental initiatives have reflected on the acceleration of new and clean energy A-share IPO approval pipeline. They accounted for a...

Osbert Tang, CFA

China Three Gorges Renewables A-Share Pre-IPO: Initial Thoughts

China Three Gorges Renewables (CIWGCZ CH), CTGR, has filed an application for IPO in the Shanghai Stock Exchange. It engages in the development,...

Osbert Tang, CFA