Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

<ul>
<li>2024 marked our ninth year covering Equity Capital Markets in Asia-Pacific. In 2024, IPO volumes were mainly driven by India, even as Hong Kong showed signs of turning a corner.</li>
<li>We ended 2024 with an accuracy rate of 79.4% across 68 IPOs that we covered and 68.8% across 109 placements.</li>
<li>For those not familiar with our coverage, we aim to cover all IPOs and placements with a minimum deal size of US$100m across Asia-Pacific, including China ADRs.</li>
</ul>


2024 marked our ninth year covering Equity Capital Markets in Asia-Pacific. In 2024, IPO volumes were mainly driven by India, even as Hong Kong showed signs of turning a corner.
We ended 2024 with an accuracy rate of 79.4% across 68 IPOs that we covered and 68.8% across 109 placements.
For those not familiar with our coverage, we aim to cover all IPOs and placements with a minimum deal size of US$100m across Asia-Pacific, including China ADRs.


Aequitas 2024 IPOs and Placements Performance Review-India Driving Volumes as HK Shows Signs of Life

HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

<ul>
<li>At 5.4% for FY24-26F, <a href="https://www.smartkarma.com/entities/hong-kong-china-gas-co-ltd" target="_blank" data-smartkarma-citation="entities:375:1" rel="noopener">Hong Kong &amp; China Gas (3 HK)</a> has the second-highest dividend yield among its HK utility peers. A lower US rate makes it attractive.</li>
<li>An unchanged interim DPS of HK$0.12 despite a decline in reported net profit suggests the resilience of its dividend stream. Core operating profit has increased 2%.</li>
<li>While gearing has gone up, HKCG still has excellent cash-generating ability (FY23: HK$10.9bn). It has also cut back in capex with a 33% YoY drop for 1H24. </li>
</ul>


At 5.4% for FY24-26F, Hong Kong &amp; China Gas (3 HK) has the second-highest dividend yield among its HK utility peers. A lower US rate makes it attractive.
An unchanged interim DPS of HK$0.12 despite a decline in reported net profit suggests the resilience of its dividend stream. Core operating profit has increased 2%.
While gearing has gone up, HKCG still has excellent cash-generating ability (FY23: HK$10.9bn). It has also cut back in capex with a 33% YoY drop for 1H24. 


HK & China Gas (3 HK): A Yield Play Back in Favour

Asia L/S Equity PM/Macro/Thematic Idea Generation

Rikki Malik

<ul>
<li>Hong Kong utilities have performed well on an absolute basis and even better on a relative basis this year.</li>
<li>We revisit our original call on them from  January 2024</li>
<li>Continued market volatility and future US  interest rate cuts will provide continued support.</li>
</ul>


Hong Kong utilities have performed well on an absolute basis and even better on a relative basis this year.
We revisit our original call on them from  January 2024
Continued market volatility and future US  interest rate cuts will provide continued support.


Revisiting Hong Kong Utilities-Time to Sell?

CK Infrastructure Holdings / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/ck-infrastructure-holdings-l" target="_blank" data-smartkarma-citation="entities:163:1" rel="noopener">CK Infrastructure Holdings (1038 HK)</a> should thrive in the volatile market environment in 2025, given its stable earnings, diversified geography, low gearing, and consistent dividends.</li>
<li>Further reduction in US interest rate should potentially be positive to other currencies, and CKI has diversified exposure in the UK, Australia, Europe, and Canada to benefit.</li>
<li>Investors may turn more risk-averse in the next year. CKI's high earnings visibility, with many regulatory resets happening beyond 2025, is highly welcome in the market. </li>
</ul>



CK Infrastructure Holdings (1038 HK) should thrive in the volatile market environment in 2025, given its stable earnings, diversified geography, low gearing, and consistent dividends.
Further reduction in US interest rate should potentially be positive to other currencies, and CKI has diversified exposure in the UK, Australia, Europe, and Canada to benefit.
Investors may turn more risk-averse in the next year. CKI's high earnings visibility, with many regulatory resets happening beyond 2025, is highly welcome in the market. 


2025 High Conviction: CKI (1038 HK) - Perfect Harmony

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

AAC Technologies Holdings / Equity Bottom-Up

<ul>
<li>Hong Kong continued a correction in its Bull market which has lifted the HSCEI to be the best performing Asian index this year.  Southboune buying is strong.</li>
<li>
<a href="https://www.smartkarma.com/entities/aac-technologies-holdings-inc" target="_blank" data-smartkarma-citation="entities:6544:1" rel="noopener">AAC Technologies Holdings (2018 HK)</a> share price had a breakout relative to the MSCI AC Asia Index.  The company reported solid results benifitting from the smartphone and auto sectors.
</li>
<li>
<a href="https://www.smartkarma.com/entities/cgn-power-co-ltd-h" target="_blank" data-smartkarma-citation="entities:58:1" rel="noopener">CGN Power (1816 HK)</a> share price relative to MSCI China broke down.  The company reported a disappointing 3Q24 results even as power generation increased by 15% YoY for the period.
</li>
</ul>


Hong Kong continued a correction in its Bull market which has lifted the HSCEI to be the best performing Asian index this year.  Southboune buying is strong.

AAC Technologies Holdings (2018 HK) share price had a breakout relative to the MSCI AC Asia Index.  The company reported solid results benifitting from the smartphone and auto sectors.


CGN Power (1816 HK) share price relative to MSCI China broke down.  The company reported a disappointing 3Q24 results even as power generation increased by 15% YoY for the period.



Technically Speaking, Breakouts and Breakdowns: HONG KONG (NOVEMBER 25)

Hong Kong

The Hong Kong and China Gas Company Limited produces, distributes, and markets gas and gas appliances to residential and industrial customers through its brands.The Company's subsidiaries develops gas projects in China and manages commercial properties.

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Hong Kong & China Gas (3 HK)

Aequitas 2024 IPOs and Placements Performance Review-India Driving Volumes as HK Shows Signs of Life

2024 marked our ninth year covering Equity Capital Markets in Asia-Pacific. We had an accuracy rate of 79.4% for IPOs and 68.8% for placements in...

Sumeet Singh

HK & China Gas (3 HK): A Yield Play Back in Favour

HKCG offers an attractive dividend yield of 5.4% for FY24-26F, backed by its strong cash generation and reduced capex. Lower US interest rates...

Osbert Tang, CFA

Revisiting Hong Kong Utilities-Time to Sell?

Hong Kong utilities have outperformed this year, with future US interest rate cuts expected to provide further support. Revisiting our original...

Rikki Malik

2025 High Conviction: CKI (1038 HK) - Perfect Harmony

CKI should thrive in a volatile market with stable earnings, diversified geography, low gearing, and consistent dividends. Further, a lower US...

Osbert Tang, CFA

Technically Speaking, Breakouts and Breakdowns: HONG KONG (NOVEMBER 25)

Southbound buying in HK continued strong with Value Factor providing the best returns.AAC Tech share price had a break out as it provided strong...

David Mudd

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Aequitas 2024 IPOs and Placements Performance Review-India Driving Volumes as HK Shows Signs of Life

2024 marked our ninth year covering Equity Capital Markets in Asia-Pacific. We had an accuracy rate of 79.4% for IPOs and 68.8% for placements in...

Sumeet Singh

HK & China Gas (3 HK): A Yield Play Back in Favour

HKCG offers an attractive dividend yield of 5.4% for FY24-26F, backed by its strong cash generation and reduced capex. Lower US interest rates...

Osbert Tang, CFA

Revisiting Hong Kong Utilities-Time to Sell?

​Hong Kong utilities have outperformed this year, with future US interest rate cuts expected to provide further support. Revisiting our original...

Rikki Malik

2025 High Conviction: CKI (1038 HK) - Perfect Harmony

CKI should thrive in a volatile market with stable earnings, diversified geography, low gearing, and consistent dividends. Further, a lower US...

Osbert Tang, CFA

Technically Speaking, Breakouts and Breakdowns: HONG KONG (NOVEMBER 25)

Southbound buying in HK continued strong with Value Factor providing the best returns.AAC Tech share price had a break out as it provided strong...

David Mudd

Hong Kong utilities have outperformed this year, with future US interest rate cuts expected to provide further support. Revisiting our original...