Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

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 Bottom-Up

<ul>
<li>Both of Nongfu’s gross margin and growth rate rank No. 2 among beverage big eight.</li>
<li>The company won the price war in both drinkable water and beverage.</li>
<li>We believe revenue will grow by 15% YoY and the operating margin will be stable in 1H26.</li>
</ul>


Both of Nongfu’s gross margin and growth rate rank No. 2 among beverage big eight.
The company won the price war in both drinkable water and beverage.
We believe revenue will grow by 15% YoY and the operating margin will be stable in 1H26.


Nongfu Spring (9633 HK): Buy Potential Coca-Cola After Chip Boom

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

<ul>
<li>Giant Biogene was listed in Hong Kong IPO in 2022. It has done well since and is now trading 45% above its IPO price, but its still cheap.</li>
<li>GB is a leader in the bioactive ingredient-based professional skin treatment product industry in China.</li>
<li>In this note, we will talk about the company’s past performance and future prospects.</li>
</ul>


Giant Biogene was listed in Hong Kong IPO in 2022. It has done well since and is now trading 45% above its IPO price, but its still cheap.
GB is a leader in the bioactive ingredient-based professional skin treatment product industry in China.
In this note, we will talk about the company’s past performance and future prospects.


2024 High Conviction - Giant Biogene - Growth Rate Keeps Moving Higher

<ul>
<li>Total revenue grew by 16% YoY and tea revenue grow by 30% in 1H26.</li>
<li>The gross margin is about 61%, only next to Coca-Cola.</li>
<li>We believe the stock has an upside of 28% for the year end 2027.</li>
</ul>


Total revenue grew by 16% YoY and tea revenue grow by 30% in 1H26.
The gross margin is about 61%, only next to Coca-Cola.
We believe the stock has an upside of 28% for the year end 2027.


Nongfu Spring (9633 HK): Tea Up by 30% in 1H26

<ul>
<li>Nongfu Spring’s revenue growth rate accelerated to 22% in 2025 and 30% in 2H25.</li>
<li>In 2025, the operating margin improved by 5 ppt with the drinkable water EBITDA margin up by 6 ppt.</li>
<li>In five years, revenue and EPS have grown by 130% and 192%, but the current stock price is below the 2020 close.</li>
</ul>


Nongfu Spring’s revenue growth rate accelerated to 22% in 2025 and 30% in 2H25.
In 2025, the operating margin improved by 5 ppt with the drinkable water EBITDA margin up by 6 ppt.
In five years, revenue and EPS have grown by 130% and 192%, but the current stock price is below the 2020 close.


Nongfu (9633 HK): Big Upside After 2025 Result Surge - Looking Back Over Past 5 Years

Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

Cross Asset Strategy

<ul>
<li>Industrials and Consumer Staples Remain Top Overweights, Though Sentiment Fragile for Both.</li>
<li>Energy sector shows signs of a turnaround from long-term decline, whilst Financials remain unloved by China investors.</li>
<li>Real Estate allocations have hit record lows, with average holdings at just 2.93%, while Consumer Discretionary sector approaches all-time highs.</li>
</ul>


Industrials and Consumer Staples Remain Top Overweights, Though Sentiment Fragile for Both.
Energy sector shows signs of a turnaround from long-term decline, whilst Financials remain unloved by China investors.
Real Estate allocations have hit record lows, with average holdings at just 2.93%, while Consumer Discretionary sector approaches all-time highs.


China

Nongfu Spring is a leading Chinese company primarily engaged in the production and sale of packaged drinking water and a diverse range of beverages. Its product portfolio includes natural packaged drinking water, ready-to-drink teas, functional beverages, and fruit juices. The company was founded in 1996 and is headquartered in Hangzhou, China.

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Nongfu Spring (9633 HK)