Shantui Construction files for Hong Kong listing

Shantui Construction files for Hong Kong listing

Shantui Construction Machinery Co., Ltd. has announced plans to file for a secondary public listing in Hong Kong, aiming to raise up to $300 million in fresh funds. The company, which specializes in construction machinery products, has hired Bank of America, JPMorgan, and China International Capital Corp. (CICC) to work on the listing, scheduled for February 2026 [1].

The move comes amid growing concerns over potential forced delistings of Chinese companies from U.S. exchanges due to the ongoing trade war between the U.S. and China. This trend has driven a number of Chinese companies to seek capital via initial public offerings (IPOs) or secondary listings in Hong Kong [2].

Shantui Construction, founded in 1952 and headquartered in Jining, China, offers a wide range of construction machinery products, including bulldozers, excavators, loaders, and mining equipment. The company's products cater to various industries such as mining, road construction, urban construction, and sanitation applications. The listing could provide Shantui Construction with the capital needed to expand its operations, particularly in Southeast Asia, North America, Japan/Korea, and the Middle East/North Africa.

Despite the potential benefits, the company's latest earnings report for the second quarter of 2025 showed a larger-than-expected loss, with earnings per share (EPS) of -0.14 compared to a forecast of -0.03. This significant miss led to a 4.42% drop in the stock price during pre-market trading, reflecting investor disappointment [3].

Historically, similar earnings misses by Shantui Construction have not led to positive returns for investors. A backtest of the stock’s performance following earnings misses from 2022 to the present reveals a consistent pattern of underperformance, with a 0% win rate across 3-day, 10-day, and 30-day timeframes. This suggests that the market has historically failed to recover or capitalize on value post-earnings disappointments, compounding risks for investors.

References:
[1] Wu, Kane, and Julie Zhu. "Chinese video streaming platform iQIYI hires banks to work on $300 million Hong Kong listing." Reuters, 19 Aug. 2025, https://www.reuters.com/business/media-telecom/chinas-iqiyi-hires-banks-up-300-million-second-listing-hong-kong-sources-say-2025-08-19/.
[2] Wu, Kane, and Julie Zhu. "iQIYI plans to file Hong Kong listing application in the third quarter." Reuters, 19 Aug. 2025, https://ca.news.yahoo.com/chinas-iqiyi-taps-banks-300-101343864.html.
[3] InvestingPro. "iQIYI Inc. (IQ) Q2 2025: Earnings Call Transcript." InvestingPro, 19 Aug. 2025, https://www.investing.com/news/transcripts/earnings-call-transcript-iqiyi-q2-2025-earnings-miss-and-stock-dip-93CH-4202258.