Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

An inquisitive investment analyst with background in both finance and computing. Covering ECM research, biotech, market data analytics.

Asia Pac IPO & Placement Research, China biotech

Smartkarma

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

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Equity Capital Markets

Shengjing Bank Co Ltd H / Equity Capital Markets

Shengjing Bank files for IPO to raise equity to strengthen its balance sheet.For momentum/liquidity investors, we would take the deal, given the recent strong performance of banking peers. However, investor should be aware that company's relative valuation are not supportive of a strong run-up against its peers.For long-term/value investors, we would like to avoid the deal, given that the valuation of 0.82x-0.86x 15E PBV is merely on-par with nationwide banks and region wide commercial banks’ average valuation of 0.83x, despite that the a higher growth potential and more superior operating indicator could justify somewhat premium, which might be limited.

Shengjing Bank files for IPO to raise equity to strengthen its balance sheet.For momentum/liquidity investors, we would take the deal, given the recent strong performance of banking peers. However, investor should be aware that company's relative valuation are not supportive of a strong run-up against its peers.For long-term/value investors, we would like to avoid the deal, given that the valuation of 0.82x-0.86x 15E PBV is merely on-par with nationwide banks and region wide commercial banks’ average valuation of 0.83x, despite that the a higher growth potential and more superior operating indicator could justify somewhat premium, which might be limited.

Shengjing Bank IPO: Competitive Chinese regional bank, strong peer momentum, valuation rich