Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Capital Markets

Xinyi Solar Holdings / Equity Capital Markets

<p>Xinyi Solar Holdings Ltd (Xinyi) plans to raise approx ~US$150m by issuing new shares. We would take the deal, given:-</p><ul><li>The company recently reported its full year FY14 results, reporting 62% YoY profit growth and leading to a round of analyst upgrades for FY15 and FY16 numbers.</li><li>Growth is expected to stay strong with analyst's expecting profit to more than double in 2015, owing to the near doubling of solar glass capacity since the beginning of 2014.</li><li>Xinyi&nbsp;will use the proceeds to finance its capex for building a solar farm and for building a new factory in Malaysia, &nbsp;both of which have been well flagged, and thus, the placement is unlikely to lead to EPS upgrades (apart from dilution impact). However, given the high capex, one can argue that a placement was pending and thus, not totally unexpected.&nbsp;</li><li>Core business remains well supported by government policies. In addition, the recent cut in gas prices will have a positive impact on gross margins (its the largest cost at ~40%).</li><li>Xinyi has done one deal in the past which returned 11.1% over one month, and&nbsp;20.8%&nbsp;since the deal</li><li>The deal scores obtains a marginal score on our framework but considering its limited listed track record, only listed in 2013, some of the fields couldn't be score. Thus, the overall score could have been higher.</li></ul>

Xinyi Solar Holdings Ltd (Xinyi) plans to raise approx ~US$150m by issuing new shares. We would take the deal, given:-The company recently reported its full year FY14 results, reporting 62% YoY profit growth and leading to a round of analyst upgrades for FY15 and FY16 numbers.Growth is expected to stay strong with analyst's expecting profit to more than double in 2015, owing to the near doubling of solar glass capacity since the beginning of 2014.Xinyi&nbsp;will use the proceeds to finance its capex for building a solar farm and for building a new factory in Malaysia, &nbsp;both of which have been well flagged, and thus, the placement is unlikely to lead to EPS upgrades (apart from dilution impact). However, given the high capex, one can argue that a placement was pending and thus, not totally unexpected.&nbsp;Core business remains well supported by government policies. In addition, the recent cut in gas prices will have a positive impact on gross margins (its the largest cost at ~40%).Xinyi has done one deal in the past which returned 11.1% over one month, and&nbsp;20.8%&nbsp;since the dealThe deal scores obtains a marginal score on our framework but considering its limited listed track record, only listed in 2013, some of the fields couldn't be score. Thus, the overall score could have been higher.

Xinyi Solar (968 HK) - Rapid growth set to continue - take the deal

China

Xinyi Solar Holdings Limited manufactures solar glass.  The Company produces ultra-clear photovoltaic raw glass and ultra-clear photovoltaic processed glass. Xinyi Solar Holdings offers its products to major solar product component manufactures both domestically and internationally.

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

Xinyi Solar Holdings (968 HK)

Xinyi Solar (968 HK) - Rapid growth set to continue - take the deal

Xinyi Solar Holdings Ltd (Xinyi) plans to raise approx ~US$150m by issuing new shares. We would take the deal, given:- The company recently...

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)