In this briefing:
- China Housing: City Picks For The Near-Term Cyclical Upside
- China Risun (中国旭阳) IPO Quick Note: Past the Peak of Coking Cycle
- China Housing: Early Indicators For Sales Volumes In 2019
- Memory Chips and the Elasticity Myth
- Dexin China (德信中国) Post IPO – Poor Trading Liquidity, Top Ten Placees Hold 76% of IPO Shares
1. China Housing: City Picks For The Near-Term Cyclical Upside
Based on our CityScreener(TM) methodology using house price, sales volumes, land sales and new starts metrics, we highlight the major cities in China where we believe the housing markets (new home sales) either enjoy a strong sustained momentum or have a potential cyclical upside relative to other cities.
2. China Risun (中国旭阳) IPO Quick Note: Past the Peak of Coking Cycle
China Risun, a leading coking coal refining player in China, is seeking up to USD 243 million via a listing in Hong Kong. In this insight, we will discuss the following topics:
- Company’s business and the value chain of coking coal
- Industry backdrop of the coking coal processing industry in China
- Shareholders and investors
- Thoughts on valuation
3. China Housing: Early Indicators For Sales Volumes In 2019
China housing markets start 2019 off a record high base in 2018 in terms of new home sales volumes. With the official NBS January-February data at the national level only expected to be published mid-March, we take a brief look at the early indicators for January-February in the weekly data to February 24 and January data for some major cities and average contract sales for select developers.
4. Memory Chips and the Elasticity Myth
During recent earnings calls memory chip makers have postulated that the market will return to higher margins once price elasticity causes demand to increase. This popular myth needs to be treated with great skepticism since, as this Insight will reveal, short-term price elasticity has a negligible impact upon memory chip sales if it has any impact at all.
5. Dexin China (德信中国) Post IPO – Poor Trading Liquidity, Top Ten Placees Hold 76% of IPO Shares
Dexin China Holdings (2019 HK) raised US$189m in at HK$2.80 per share, at the mid-point of its IPO price range. We have previously covered the IPO in:
- Dexin China (德信中国) Pre-IPO – Related Party Transactions and Partial Asset Listing
- Dexin China (德信中国) IPO Review – Key Issues Remain but 9M Results Showed Strong Growth.
In this insight, we will update on the deal dynamics, implied valuation, and include a valuation sensitivity table.
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