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

Wasion (3393): Profit Alert and OBOR Beneficiary

Smartkarma

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

Research Reinvented

Equity Capital Markets

Wasion Group Holdings / Equity Capital Markets

Wasion is a leading provider of energy measurement instrument, system and services (It primarily operates in three segments: Advanced Metering Infrastructure, Advanced Distribution Operations, and&nbsp;Smart Meters). The company&nbsp;is placing 68 million shares, consisting of 61 million by the company as top-up placement and 7 million shares by 20 R&amp;D staffs of the company.&nbsp;<ul><li>Wasion is in a good position to capture the China's next phase of growth - greener economic development, productivity growth, and global expansion ambition.&nbsp;</li><li>Positive development for the company include: 1) China's reform on the electricity distribution market (automated measurement and distribution devices are needed), 2) China's push in the green energy (smart measure helps the grid source the electricity, and measure it correctly), and 3) China's ambition of going global ("one-belt, one road". Wasion is already present in Tanzania, Egypt, Indonesia, Bangladesh). The stock is in a favorable position to benefit from government support.</li><li>The company also has solid financials&nbsp;and is a consensus Buy.&nbsp;</li></ul>Conclusion:&nbsp;Although our framework rates the placement marginally below threshold, &nbsp;we reckon that there are limitations in our framework (owing to lack of peers and previous placement done around&nbsp;GFC with lacklustre long term returns), we like the fundamentals of the company and would take the deal.&nbsp;

Wasion is a leading provider of energy measurement instrument, system and services (It primarily operates in three segments: Advanced Metering Infrastructure, Advanced Distribution Operations, and&nbsp;Smart Meters). The company&nbsp;is placing 68 million shares, consisting of 61 million by the company as top-up placement and 7 million shares by 20 R&amp;D staffs of the company.&nbsp;Wasion is in a good position to capture the China's next phase of growth - greener economic development, productivity growth, and global expansion ambition.&nbsp;Positive development for the company include: 1) China's reform on the electricity distribution market (automated measurement and distribution devices are needed), 2) China's push in the green energy (smart measure helps the grid source the electricity, and measure it correctly), and 3) China's ambition of going global ("one-belt, one road". Wasion is already present in Tanzania, Egypt, Indonesia, Bangladesh). The stock is in a favorable position to benefit from government support.The company also has solid financials&nbsp;and is a consensus Buy.&nbsp;Conclusion:&nbsp;Although our framework rates the placement marginally below threshold, &nbsp;we reckon that there are limitations in our framework (owing to lack of peers and previous placement done around&nbsp;GFC with lacklustre long term returns), we like the fundamentals of the company and would take the deal.&nbsp;

Wasion Placement: Well positioned for China's reform, take the deal