In this briefing:
- HK Connect Discovery Weekly: PICC, Xinyi Solar (2019-03-08)
- Futu Holdings IPO Trading Update – Might Be Trading a Little Too High
1. HK Connect Discovery Weekly: PICC, Xinyi Solar (2019-03-08)
In our Discover HK Connect series, we aim to help our investors understand the flow of southbound trades via the Hong Kong Connect, as analyzed by our proprietary data engine. We will discuss the stocks that experienced the most inflow and outflow by mainland investors in the past seven days.
We split the stocks eligible for the Hong Kong Connect trade into three groups: component stocks in the HSCEI index, stocks with a market capitalization between USD 1 billion and USD 5 billion, and stocks with a market capitalization between USD 500 million and USD 1 billion.
In this insight, we will highlight PICC and Xinyi Solar.
2. Futu Holdings IPO Trading Update – Might Be Trading a Little Too High
Futu Holdings Ltd (FHL US)‘s IPO was priced at the top-end at US$12/ADS raising a total of US$160m, including the US$70m raised from General Atlantic via a concurrent private placement.
In my earlier insights, I looked at the company’s background, past financial performance, scored the deal on our IPO framework and compared it to Tiger Brokers:
- Futu Holdings Pre-IPO – Great Metrics but in a Commoditised Industry,
- Futu Holdings Pre-IPO – FY18 Updates And Quick Thoughts on Valuation,
- Futu Holdings IPO – Given the Team, Execution, and Backers, Might Be Worth a Look at the Low-End, and
- Futu Holdings IPO Quick Note – Comparison with Tiger Brokers – Same Market, Different Economics
In this insight, I will re-visit some of the deal dynamics, comment on share price drivers and provide a table with implied valuations.
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