Impro Precision (鹰普精密) Trading Update - Near-Term Performance Depends on G20 Summit

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APAC IPOs & Placements

Zhen Zhou, Toh

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

Impro Precision Industries / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/impro-precision-industrie" target="_blank" data-smartkarma-citation="entities:26779:1">Impro Precision Industries (1286 HK)</a> is looking to raise up to US$140m in its IPO.IPI's growth in the past three yeas have been decent while gross margins have expanded. Utilization rate of plants continue to climb even after expanding capacity, indicating that demand has been strong from end-markets.However, near-term outlook could weigh on performance considering that passenger vehicle in the US have declined YoY recently while China's automotive outlook took a turn for the worse in 2019. The company is also affected by trade war and has shown that net margin could potentially be halved.Furthermore, with private equity investors as substantial shareholders, there could be overhang as they may potentially sell down when lock-up expires in six months after listing.

Impro Precision Industries (1286 HK) is looking to raise up to US$140m in its IPO.IPI's growth in the past three yeas have been decent while gross margins have expanded. Utilization rate of plants continue to climb even after expanding capacity, indicating that demand has been strong from end-markets.However, near-term outlook could weigh on performance considering that passenger vehicle in the US have declined YoY recently while China's automotive outlook took a turn for the worse in 2019. The company is also affected by trade war and has shown that net margin could potentially be halved.Furthermore, with private equity investors as substantial shareholders, there could be overhang as they may potentially sell down when lock-up expires in six months after listing.

Impro Precision (鹰普精密) IPO Review - Victim of Trade War