Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Beijing Jingneng Clean Energy / Event-Driven

<div>
<p>Subsequent to a low-turnout at the H-share class meeting last Friday (the 19th February), <a href="https://www.smartkarma.com/entities/beijing-jingneng-clean-energy-co-ltd" target="_blank" data-smartkarma-citation="entities:16316:1" rel="noopener">Beijing Jingneng Clean Energy (579 HK)</a>'s shares declined 6.7% on Monday, followed by 6.3% yesterday, and 3.1% today. All on above-average volume. </p>
<p>Jingneng is now trading at a 25% gross spread to the voluntary conditional offer price of HK$2.70/share. Quite remarkable given deal completion is binary, and there is little in the way of clarity to indicate deal failure is more certain.</p>
<p>Jingneng's undisturbed price back in early July 2020 when a possible Offer was first <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0706/2020070602025.pdf" target="_blank" rel="noopener">floated</a>, was HK$1.58. However, the power mix that Jingneng supplies has sector-by-sector average gains - some considerable - since the deal.</p>
<p>Jingneng has overshot to the downside, and is a buy outright or against a basket of peers.</p>
</div>
<div>
<div id="ember18865" data-message-id="334920">
<div>
<div id="ember18866">
<div>
<div>More below the fold.</div>
</div>
</div>
</div>
</div>
</div>


Subsequent to a low-turnout at the H-share class meeting last Friday (the 19th February), Beijing Jingneng Clean Energy (579 HK)'s shares declined 6.7% on Monday, followed by 6.3% yesterday, and 3.1% today. All on above-average volume. 
Jingneng is now trading at a 25% gross spread to the voluntary conditional offer price of HK$2.70/share. Quite remarkable given deal completion is binary, and there is little in the way of clarity to indicate deal failure is more certain.
Jingneng's undisturbed price back in early July 2020 when a possible Offer was first floated, was HK$1.58. However, the power mix that Jingneng supplies has sector-by-sector average gains - some considerable - since the deal.
Jingneng has overshot to the downside, and is a buy outright or against a basket of peers.






More below the fold.






Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<p>In today’s report we highlight the following actionable solar energy names: First Solar (<strong>FSLR</strong>), SolarEdge Technologies (<strong>SEDG</strong>), GCL-Poly Energy (<strong>3800-HK</strong>), Meyer Burger Technology AG (<strong>MBTN-CH</strong>), Enphase Energy (<strong>ENPH</strong>), JinkoSolar Sponsored ADR (<strong>JKS</strong>), TerraForm Power (<strong>TERP</strong>), Beijing Enterprises Clean Energy Group (<strong>1250-HK</strong>), GCL New Energy (<strong>451-HK</strong>), and Viatron Technologies (<strong>141000-KR</strong>).</p>

In today’s report we highlight the following actionable solar energy names: First Solar (FSLR), SolarEdge Technologies (SEDG), GCL-Poly Energy (3800-HK), Meyer Burger Technology AG (MBTN-CH), Enphase Energy (ENPH), JinkoSolar Sponsored ADR (JKS), TerraForm Power (TERP), Beijing Enterprises Clean Energy Group (1250-HK), GCL New Energy (451-HK), and Viatron Technologies (141000-KR).

Information Technology Consultant

Ishita Jain

Thematic (Sector/Industry)

<p>As per the Financial Times ("FT") <a href="https://www.ft.com/content/4f88cb60-f8f7-11e6-bd4e-68d53499ed71" target="_blank">article</a> dated 24th Feb 2017, electric vehicle ("EVs") manufacturers and battery producers have been scrambling to secure supplies of Cobalt. <br><br>This has been driven by the fact the a handful of hedge funds have purchased and stored Cobalt on expectations that the demand for EVs will pick up. Battery producers such as Panasonic, who supply Lithium Ion ("Li-ion") batteries to the likes of Tesla are hard pressed for supplies.<br><br>As FT reported, prices have risen by more…</p>

As per the Financial Times ("FT") article dated 24th Feb 2017, electric vehicle ("EVs") manufacturers and battery producers have been scrambling to secure supplies of Cobalt.   This has been driven by the fact the a handful of hedge funds have purchased and stored Cobalt on expectations that the demand for EVs will pick up. Battery producers such as Panasonic, who supply Lithium Ion ("Li-ion") batteries to the likes of Tesla are hard pressed for supplies.  As FT reported, prices have risen by more…

CHINA - Healthcare, Steel, Autos, Education, Research From Beijing

Scott Laprise/ 乐天虎

CHINA - Healthcare, Steel, Autos, Education

<p>The market is expecting US tariffs on Chinese steel exports wrongly believing Chinese are major steel   exporters to the US.</p><p>Steel exports to US from China are low at about 2.9mt in November. If the US adds more steel tariffs, it will have little impact to the steel market or prices but it will possibly cause a retaliation by the Chinese.</p><p>China only exports 26% of Global Steel Exports, far lower than the 50% of their total global steel production. Most of Chinese steel exports go to other Asian…</p>

The market is expecting US tariffs on Chinese steel exports wrongly believing Chinese are major steel   exporters to the US.Steel exports to US from China are low at about 2.9mt in November. If the US adds more steel tariffs, it will have little impact to the steel market or prices but it will possibly cause a retaliation by the Chinese.China only exports 26% of Global Steel Exports, far lower than the 50% of their total global steel production. Most of Chinese steel exports go to other Asian…

Market Is Wrong on US Tariffs for Chinese Steel

<p>This is a big topic that I find myself addressing to investors each quarter for the past 10 years as a steel analyst from where I live in Beijing, China. No steel production cuts have been made by the government and none are expected in the near term. </p><p>The evidence for this view is clear looking at crude steel production data, we see record high levels of production out of China in September.</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/016/382/original/crude%20steel.png?1479190556" class="editor-image img-responsive" data-smartkarma-image-id="16382"></figure><div class="content-caption">Figure 1: World Crude Steel Production - 139m tonnes in September up 2% YoY</div><div class="content-remarks"><p>Source: <a href="http://www.worldsteel.org/media-centre/press-releases/2016/September-2016-crude-steel-production.html" target="_blank">http://www.worldsteel.o</a>…</p></div>

This is a big topic that I find myself addressing to investors each quarter for the past 10 years as a steel analyst from where I live in Beijing, China. No steel production cuts have been made by the government and none are expected in the near term. The evidence for this view is clear looking at crude steel production data, we see record high levels of production out of China in September.Figure 1: World Crude Steel Production - 139m tonnes in September up 2% YoYSource: http://www.worldsteel.o…

Steel in China- No Government Capacity Shutdown

China

Shandong Hi-Speed New Energy provides renewable energy services. The Company operates photovoltaic power and wind power businesses. Shandong Hi-Speed New Energy also involves in energy storage, micro-grid network, electricity sales, geothermal power generation, regional energy systems, and other new energy fields.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Shandong Hi-Speed New Energy G (1250 HK)

Beijing Jingneng (579 HK): This Is A Buy

If it does not go through, the downside should be limited. And current valuations are not demanding - 8.8x PER on an LTM basis. I would buy...

David Blennerhassett

Global Solar Energy Stocks Are Bottoming

In today’s report we highlight the following actionable solar energy names: First Solar (FSLR), SolarEdge Technologies (SEDG), GCL-Poly Energy...

Vermilion Research

Future of Cobalt Vis-A-Vis EVs

As per the Financial Times ("FT") article dated 24th Feb 2017, electric vehicle ("EVs") manufacturers and battery producers have been scrambling to...

Ishita Jain

Market Is Wrong on US Tariffs for Chinese Steel

The market is expecting US tariffs on Chinese steel exports wrongly believing Chinese are major steel exporters to the US.Steel exports to US...

Scott Laprise/ 乐天虎

Steel in China- No Government Capacity Shutdown

This is a big topic that I find myself addressing to investors each quarter for the past 10 years as a steel analyst from where I live in Beijing,...

Scott Laprise/ 乐天虎

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)