China

• The precondition for Hangzhou Kangji Medical Instrument Co., Ltd. (9997 HK)’s scheme privatisation from a consortium is satisfied. The offer, which has been declared final, is at HK$9.25 per share. 
• The key condition will be approval by at least 75% disinterested shareholders (<10% of all disinterested shareholders rejection). Crucially, the blocking stake is below the substantial disclosure threshold.
• Despite the recent derating of peers, the vote risk remains medium-to-high due to a solid interim, the imminent surgical robot growth story, unfavourable AGM voting patterns, and emerging retail opposition.

• On the 15th November 2024, personal computer parts and accessories play PC Partner (1263 HK)‘s secondary listing, by way of introduction, was effected.
• The SGX also granted in-principle approval for the conversion of its secondary listing status to a primary listing. This dual-listing status (SGX + HKEx) took effect on the 20th August.  
• In tandem with a SGX free float waiver, PCP will now seek a HKEx delisting. This listing/delisting construct is to ensure the uninterrupted supply of NVIDIAs GPUs.

• WuXi XDC Cayman (2268 HK) is placing up to 22M shares at the placing price of HK$58.85 per share to raise a maximum gross proceed of HK$1,311M under general mandate.
• The company will also issue ~24M shares to its controlling shareholder Wuxi Biologics at HK$58.85 per share for a total consideration of ~HK$1,420M, subject to independent shareholders’ approval.
• 90% of the proceeds will be used for further expansion of the company’s production capacity in relation to clinical and commercial manufacturing for bioconjugates, drug substances, and drug products.

• QFIN US is down 30% since July on fear that the Oct 1 regulatory action on 24%+ loans will lead to significant and sustained earnings downgrades.
• QFIN’s industry-leading franchise, risk management history, capital return yield (~18-20%), and strong balance sheet support a strong recovery post-regulatory clarity and cleanup.
• Valuation at 1.2x FY1 P/BV already discounts worst case; QFIN’s recovery potential leaves scope for 100%+ upside (peak valuation at 2.4x in Mar-24 pre-regulation).

• Genfleet, a China-based clinical-stage biotech, is looking to raise USD 250 million via a Hong Kong listing. The sole book runner is CITIC.
• In our previous insight, we looked at the company’s core products and its management team, as well as investor backing.
• In this note, we will provide an rNPV-based valuation for the company.

• Ligent Technologies (LGT HK) is looking to raise about US$100m in its upcoming Hong Kong IPO. The deal will be run by Citibank and CITIC Securities
• Ligent Technologies is a global provider of optical communication and connectivity products that support the high-speed data needs of AI computing networks, cloud services, and telecom infrastructure. 
• Its main offerings include optical transceivers (including datacom and telecom solutions), optical chips, and optical network terminals. These solutions power applications for data centers, telecom operators and computing systems.

• Firing on All Cylinders :Midea Group (300 HK) delivered robust 15.7% YoY revenue growth and 25% profit increase in H1 2025, driven by strong domestic demand and overseas expansion.
• Disciplined Execution : Smart Home remained the largest contributor, while Energy Solutions and Intelligent Building Technology delivered fastest growth; overseas revenue rose 17.7% YoY, now 42.5% of group sales.
• Available at compelling valuation of 13.7x P/E (FY25e), Midea emphasizes R&D leadership, digital transformation, and green solutions to sustain long-term growth.

• Hesai Group (HSAI US) plans to raise around US$200-300m in its secondary listing in Hong Kong. 
• The company won HK listing approval and filed its PHIP on 31st August 2025. It will look to launch its secondary offering soon.
• In this note, we’ll take a look at the deal and talk about the impact of the raising.

• 3SBio Inc (1530 HK) witnessed a revenue decline of 1% in 1H25. Company’s core product Tpiao’s sales decreased 4% to RMB 2.4B (54% of total) impacted by lower volume.  
• Phase III clinical trial of SSS06 (anemia in chronic renal failure), 608 (psoriasis), and 613 (acute gouty arthritis) is complete. NDAs for the same are under review by NMPA.
• 3SBio shares are trading at forward P/E of 11.5x, lower than peers. We feel that there is still upside potential left in the stock.

• FOREST CABIN holds a leading position in camellia oil segmentation, with mid-to-high end positioning and high gross profit margin. But high operating cost will put pressure on net profit margin.
• Considering the risk of recession/depression, consumption downgrade and reducing non-rigid spending will be the main theme in short term. 50% YoY revenue growth in 2024 is likely to be unsustainable.
• Valuation of FOREST CABIN could be lower than peers. Stock price performance would highly depend on market sentiment, company growth trend, and visibility of profitability at the time of listing.

• The September rebalance of the Hang Seng family of indices will use today’s closing prices to cap the index constituent weights.  
• The net round-trip trade across all stocks across the five indices is estimated at HK$57.55bn (US$7.4bn). There is size to trade in a lot of stocks.
• Alibaba (9988 HK) has flipped from a net buy to a net sell following its huge rally yesterday.

• September brings heavy index rebalancing activity. Pop Mart (9992 HK) will join both the Hang Seng Index (HSI INDEX) and the Hang Seng China Enterprises Index (HSCEI INDEX).
• The Fed is widely expected to cut rates and Asia-Pac peers (BoJ, RBA, RBI) are also meeting.
• Why Read: Plan ahead and take into account known market events when making investment and trading decision.

• The past month has witnessed a remarkable shift in India-China relations, with multiple high-profile developments signaling the most significant thaw in bilateral ties since 2020.
• Despite the expansion in bilateral commerce, India continues to face a significant trade deficit, especially in pharmaceuticals, where dependence on Chinese imports remains high. 
• At present, the revived engagement seems to offer greater advantages to Chinese companies than to their Indian counterparts.

• The expiry of cornerstone investors’ lock-up today modestly increases Mixue Group (2097 HK)’s free float, which still remains below 10%.
• Mixue’s 1H2025 results show limited overseas scale-up, with growth driven entirely by the domestic market, raising concerns over long-term growth prospects from new markets.
• At 22x forward earnings, Mixue trades at a premium to HK-listed F&B peers, reflecting market optimism for above-consensus growth.

• In 2Q25, total revenue grew strongly by 30% YoY and the operating margin continued to improve.
• The market focuses on car deliveries, but IoT is the largest contributor to gross profits.
• We believe the stock has an upside of 45% for the year end 2026. Buy.

• In our previous insight we correctly forecasted a short-lived, 2-3 weeks relief rally for BYD (1211 HK) , followed by a new downtrend (started this week). 
• The stock went into OVERSOLD territory according to our model, this week. It’s however a bit early to BUY, the stock could fall more.
• If BYD reaches 102 next week, or the following week, that would be a very good place to BUY. A catalyst could bring the stock back to 140-150.

• Simcere Pharmaceutical Group (2096 HK) is placing 120M shares at the price of HK$12.95 per share. The placing shares represents ~5% of the current total issued shares of the company.
• The company intends to apply 90% of the net proceeds for the R&D-related expenditures. For context, Simcere has over 60 R&D pipelines of innovative drugs.
• Considering strong growth prospect of Simcere, reasonable valuation, and upbeat investor sentiment toward Chinese pharmaceutical sector, we are bullish on the placement.   

• Last week in its June quarter earnings release Alibaba “demoted” CaiNiao’s status
• It’s become clear that boosting eComm logistics simply isn’t a priority for Alibaba
• For firms that took investment from Alibaba & CaiNiao, implications are -Ive

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Seazen Group
• The US market was closed for Labour Day yesterday.
• Contracted sales for China’s Top 100 developers in August declined 18% y-o-y and 2% m-o-m to CNY 207 bn (albeit narrowing from -24% y-o-y in July), according to CRIC.

• GenFleet’s R&D strategy is to layout around the RAS signaling pathway to construct a “RAS therapy matrix” covering multiple RAS mutation types.However, there’re barriers to the development of RAS-targeted therapies.
• The factors that suppress valuation include intense competition and potential patent risks. GenFleet’s independent commercialization capability has not been verified. So, a valuation of RMB3-4 billion is a reasonable range.
• Considering the sustained popularity of innovative drug IPOs in the Hong Kong stock market, post-IPO valuation of GenFleet depends more on market sentiment, not fundamentals.  

• Shandong Gold Mining (1787 HK) aims to raise around US$500m via a primary placement, in order to pay down debt.
• The H-shares are now trading at all-time highs and have been performing better than the A-shares this year.
• In this note, we talk about the deal dynamics and run the deal through our ECM framework.

• Simcere Pharmaceutical Group (2096 HK) is looking to raise around US$200m via a top-up placement.
• This is the first primary raising by the company since its listing. There have been a few secondary deals, with mixed results.
• In this note, we talk about the deal dynamics and run the deal through our ECM framework.

• HKBN Ltd (1310 HK)’s offer from China Mobile (941 HK) is HK$5.075 with a 50% minimum acceptance condition. The first closing date is September 3.
• Based on CCASS data, including acceptances, China Mobile’s shareholding was 48.93% of outstanding shares as of September 1.
• Therefore, the offer should be declared unconditional by the first closing date. At the last close and for a September 12 payment, the gross/annualised spread is 0.5%/15.7%.

• In August, BYD’s total sales volume was still flat and its domestic sales volume continued to shrink.
• The operating margin declined significantly to 2.3% in 1H25 from 4.4% in 1H24.
• The P/E band suggests a downside of 23% and a price target of HK$89.00.

• Context: Volatility cones provide a clear framework to evaluate whether options are trading cheap or rich.
• Highlights:Tencent (700 HK), HSBC (5 HK),Meituan (3690 HK), Ping An (2318 HK), and JD.com (9618 HK) all display historically cheap implied volatility. Read on for trade suggestions.
• Why Read: Spot opportunities, assess regime shifts, and manage risk effectively — volatility cones turn complex data into actionable insights for traders and investors.

• The September 2025 index review results for the STAR 50 and STAR 100 indices were announced after market close on Friday 29th August 2025.
• There will be one change for the STAR 50 index and five changes for the STAR 100 index.
• We expect one-way flows of approximately US$2.1bn and US$239mn for the STAR 50 and STAR 100 index rebal events respectively.

• HUGE, rampaging, “Beautiful Skew”… is flat. Big swings in H/A ratios continue, this time on average with 2.1% H underperformance vs As which is -4.4% on average over two weeks.
• Last week’s short reco on Fuyao Glass Industry Group (3606 HK) was up 2.3% on the week in Hs but Hs underperformed the As by 1.86%.
• AH premia are in a widening phase. This may continue. New reco this week.

• Golden Throat (6896 HK — US$343 million) is an iconic Chinese brand of throat lozenges, used to deal with sore or dry throats.

• The core product is similar to Strepsils, Halls, or Ricola, but is sold over-the-counter in pharmacies.

• The company sells 146 million boxes per year and has an estimated market share of 26% in China.

• Two days after announcing its 2025 interims, Holcim (HOLN SW)-backed Huaxin Cement (6655 HK) proposed spinning off its overseas cement assets.
• The overseas ops, predominantly located in Africa, significantly outperformed the PRC ops in FY24, a trend that continued into 2025. 
• No preferred bourse was stipulated, although the HKEx appears the logical choice. Pegged to historical trading metrics, Huaxin appears fully valued here.

• Aux Electric (2580 HK)  raised around US$532m in its Hong Kong IPO.
• It is one of the global top five air conditioner providers. 
• We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.

• The de facto total revenue increased by 10% YoY excluding two disposed shopping malls.
• We believe Alibaba will win the price war for food deliveries, because competitors’ earnings were even worse.
• The stock surged by 13% in NYSE after the result release, but we still believe it has an upside of 48% for next twelve months.

• Welcome to Curator’s Cut, a fortnightly roundup of standout themes from the 1,200+ Insights published over the past two weeks on Smartkarma
• In this cut, we explore A-H share trading dynamics, consider copper market dynamics and plays, and China’s bottoming/stabilizing real estate market
• Want to dig deeper? Comment or message with the themes you’d like to see highlighted next

• Alibaba (BABA US)  jumped 12.9% on Friday following better than expected 2Q2025 results and upbeat management commentary.
• Investors cheered growth plans centered around Consumption and AI + Cloud, signaling confidence in the company’s long-term strategy.  
• 2Q2025 operating profits dipped slightly, as higher costs in quick commerce were largely offset by growth in other business segments.

• I summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
• Highest spreads: Mayne Pharma (MYX AU), Smart Share Global (EM US), ENN Energy (2688 HK), Dongfeng Motor (489 HK), Joy City Property (207 HK), Santos Ltd (STO AU). 
• Lowest spreads: Bright Smart Securities (1428 HK), Pacific Industrial (7250 JP), Humm Group (HUM AU), Ashimori Industry (3526 JP), Carenet Inc (2150 JP), Ainsworth Game Technology (AGI AU).

• For Aug 2025, 17 new transactions (firm and non-binding) were discussed on Smartkarma (by the Quiddity team) with an overall announced deal size of ~US$18bn.
• The average premium for the new transactions announced (or first discussed) in August was 48%, with a year-to-date average of 47%.
• The average premiums for transactions in 2024 (129 transactions), (2023 (117), 2022 (106), 2021 (165), 2020 (158), and 2019 (145 ) were 43%, 39%, 41%, 33%, 31%, and 31%

• SHEIN is reportedly moving its corporate HQ to China to pave way for HK IPO
• US ‘de minimis’ exemption for all countries ended Aug 29 (China/HK was May 2)
• We believe end of US ‘de minimis’ exemption changed the game for SHEIN

• After excluding gains on the disposal of United Family Healthcare, profitability of main business was disappointing.The revenue decline confirms that Fosun Pharma is facing pressure. Short-term performance hasn’t truly improved.
• Fosun Pharma will continue to sell unprofitable assets to alleviate debt pressure and optimize business structure, which will be the short-term main theme. Fosun Pharma is still in adjustment period
• Whether high profit growth can be sustainable in long term is uncertain, which depends on if Henlius is able to achieve high growth to offset the negative impact of VBP.

• Sino Biopharmaceutical (1177 HK) announced 11% YoY revenue growth in 1H25, driven by 27% YoY growth in innovative products. Contribution of innovative drugs to total revenue increased to 44.4%.
• With the increasing contribution of innovative drugs to total revenue, gross profit margin expanded 40bps to 82.5%. With expanding margin and cost efficiency, net profit has more than doubled.
• The company expects to have more than 35 marketed innovative products by 2027, with revenue from innovative products accounting for over 60% of total revenue.

• SJM Holding’s H1/25 results were weaker than anticipated, as the company lost GGR market share in Q2 (after a strong Q1).
• The top line continued to expand, in line with the ramp-up of Grand Lisboa Palace (GLP).
• That said, EBITDA unexpectedly contracted due to unfavourable win rates (particularly at GLP). FCF was likely negative, owing to the reduced profitability.  Positively, the planned reorganisation of gaming assets will likely raise the properties’ margins and provide the company with operational flexibility to optimise its assets going forward.

• Tencent’s recent investment in Uzum marks the first investment by a Chinese tech giant in a local Central Asian startup, signaling a fundamental strategic pivot in the region.
• Central Asia now presents potential markets for Chinese tech companies, beyond just infrastructure or commodity-focused opportunities, following the execution of the earlier phases of the Belt & Road Initiative.
• Given Uzbekistan’s larger population and more diversified economy, it is generally seen as better fitted for tech companies’ growth, esp. B2C platforms, compared to Kazakhstan (a raw materials giant).

• There is 1 constituent change for the STAR50 INDEX and 5 changes for the STAR100 Index at the next rebalance that will be implemented at the close on 12 September.
• We estimate one-way turnover of 6.1% for the SSE STAR50 (STAR50 INDEX) resulting in a round-trip trade of CNY 23.8bn (US$3.3bn).
• There will be huge capping outflows for Cambricon Technologies Lt (688256 CH) following the massive rally in the stock over the last couple of months.

• We strongly disagree with the valuation method of “P/R”. which is calculated by dividing market value by R&D expenses. It is still necessary to view the valuation system rationally.
• Innovent surprisingly turned loss into profits for the first time in 25H1. Considering the future contribution of mazdutide and IBI363, valuation of Innovent may reach above RMB200 billion.
• The logic of Zylox is import substitution. Based on strong fundamentals, if liquidity remains strong, reasonable P/E is 40-45x. Target share price is HK$25-29/share based on 2025 net profit.

• Q225 saw solid growth & improving margins, driven by strength in China business
• Lawsuit settlement hit net result in Q225, but investors shrugged off the news
• We still think Didi could pursue a new listing later in 2025, probably in HK

• We remain near-term bullish since our 4/22/25 Compass, and our intermediate-term outlook remains bullish as well (as of our 5/14/25 Compass), with Int’l Compass reports all echoing this sentiment.
• We will maintain our bullish intermediate-term view as long as market dynamics remain healthy and the SPX and ACWI-US are above 6028-6059 and $119-$121.
• We remain overweight/continue to have a major focus on China (Shanghai Composite). It continues to offer the most attractive opportunities, with a significant number of today’s recommendations coming from China.

• A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
• ECM developments: Aux Electric (2580 HK) prices at the top of the range, Tata Capital Limited (TATACAP IN) is seeking to raise US$2.0 billion.
• Event-Driven developments: Ashimori Industry (3526 JP), Carenet Inc (2150 JP), Shibaura Electronics (6957 JP), Shengjing Bank Co Ltd H (2066 HK), Mayne Pharma (MYX AU).

• Dongfeng Motor (489 HK) to be taken private via cash plus scrip into the backdoor listing of its EV arm.
• Minebea extends its ¥6,200 TOB for Shibaura (6957 JP) to 11 September, a day after YAGEO’s ¥7,130 bid expires. Now there’s no game of chicken with Minebea. Just with METI.
• The HD Hyundai Heavy Industries (329180 KS)/HD Hyundai Mipo (010620 KS) merger announcement reaffirms Seoul’s commitment to the MASGA project. 

• Legend Biotech Corporation’s second quarter of 2025 was marked by significant milestones and notable financial and operational achievements, balanced by some ongoing challenges.
• On the positive side, the company reported substantial growth in CARVYKTI sales, reaching $439 million, an increase of 136% year-over-year.
• This robust growth underscores the rapid uptake of CARVYKTI, primarily driven by its expansion in second to fourthline settings for multiple myeloma treatments.

• NetEase, Inc.’s second quarter financial results for 2025 illustrate a mixed yet promising outlook for the company.
• The broad performance metrics highlight both robust areas of growth and certain challenges the company continues to face.
• Key revenue drivers include the gaming and related value-added services (VAS) segment, which saw a 14% increase year-over-year, buoyed by solid returns from existing game franchises and successful new game launches like “Where Winds Meet” and “Marvel Rivals.” Notably, the company’s expertise in offering diverse gaming experiences and its strategic global expansion have positively influenced revenue growth.

• Beike (BEKE) reported C2Q25 top line, non-GAA op. profit and GAAP net income (2.5%), (43%) and (3.0%) vs. our est. 
• Since a strong start in C1Q25, both new and existing home sales growth have trended down after early March, against a weak 2024. 
• We cut TP by US$1 to US$24 and maintain BUY.

• Sichuan Yingfa Ruineng Technology (SYRT HK)  is looking to raise about US$100m in its upcoming Hong Kong IPO. The deal will be run by China Securities (International) and Huatai International.
• Sichuan Yingfa Ruineng Technology. (SYRT) is a specialized manufacturer of photovoltaic (PV) cells, focusing on research, development, manufacturing, and direct sales. It operates four production bases across China and overseas.
• China accounts for 89.3% of sales in FY24, with the rest coming from India, Vietnam, and the US. It is supported by 161 granted patents in China.

• The UST curve twisted flatter yesterday, partly unwinding Wednesday’s steepening move.
• The yield on the 2Y UST rose 2 bps to 3.63%, while the yield on the 10Y UST fell 3 bps to 4.21%.
• Equities climbed on the back of upward revisions to the US Q2/25 GDP. 

• We compile our selection of small and mid-cap names with our desired characteristics of high dividend yields, value, and margin of safety.
• Our top picks are Asian Terminals (ATI PM), The Keepers Holdings (KEEPR PM), Taste Gourmet (8371 HK), Philippine Stock Exchange (PSE PM), and Ginebra San Miguel (GSMI PM).
• We have some very positive updates from Plover Bay Technologies (1523 HK) / Asian Terminals (ATI PM) and The Keepers Holdings (KEEPR PM), post their quarterly results.

• XtalPi Holdings (2228 HK)  is looking to raise up to US$300m in a primary placement.
• The deal is a small one in ADV terms, at 1.6 days, despite leading to a 5.7% increase in shares outstanding.
• In this note, we will talk about the placement and run the deal through our ECM framework.

• Meituan (3690 HK) shares fell 12.5% post – 2Q2025 results, reflecting investor concerns over prolonged subsidy wars and lack of visibility on when rational competition may resume.
• 2Q 2025 revenue growth lagged the pace of delivery transaction growth as incentives sharply reduced effective revenue capture while rising marketing costs nearly wiped out quarterly profit.
• Along side the rapid growth in China’s instant delivery market, where groceries and daily essentials are delivered in 30 minutes or less, competition among leading retail/delivery players have escalated.

• The stock price surged by 7.7% on the 2Q25 release day.
• Total revenue increased by 16% YoY in 2Q25 among which accommodation reservation revenue increased by 21% YoY.
• The operating margin was stable at a level significantly higher than the period before COVID.

• OS benefit has been observed in HARMONi-A study, which however is just a small part of the PD-1/VEGF commercial landscape. The main battlefield is still the head-to-head trial against Keytruda.
• We think the current high valuation of Akeso has begun to price in the successful HARMONi-2 results to some extent, which however is not a done deal.
• Investors may need to be cautious about this placement, especially when the founders of Akeso actually chose to reduce their positions. Market cooling down may not be far off.

• Shares of Chinese AI chipmaker Cambricon Technologies Corp. Ltd. (688256.SH +3.24%) surged Monday, bringing the company to the brink of unseating Kweichow Moutai Co. Ltd. (600519.SH -2.27%) as the most expensive stock on China’s A-share market.
• Cambricon’s stock closed up 11.4% on Monday at 1,384.93 yuan ($191.07) per share, just shy of the fiery liquor-maker Kweichow Moutai, which closed at 1,490.33 yuan.
• The chip company’s shares have more than doubled since mid-July and have climbed over 562% since September 2024. The rally has pushed Cambricon’s price-to-earnings ratio to 4,463 times, far exceeding Moutai’s 20 times.

• GenFleet, a China-based near-commercial stage biotech company, is looking to raise around USD 250 million via a Hong Kong listing. CITIC Securities is the sole sponsor.
• In this note, we look at the company’s core products, GFH925 and GFH375.
• We also look at the company’s pre-IPO investors and management team.

• Innovent Biologics published strong results that were ahead of expectations.
• Despite the upgrades, Innovent’s plus 300 PE multiple will only unwind to 53 at the end of 2027.
• Gauging from the disappointing results and poor share price performance from the two GLP-1 majors, the outlook for GLP-1s has deteriorated.

• Akeso Biopharma Inc (9926 HK) announced the placement of 23.6M shares for subscription at HK$149.54 per share.
• The company intends to use most of the placement proceeds for R&D of innovative pipeline, platform, building of infrastructure and facilities, and commercialization of existing approved products.  
• Expanded indications of cadonilimab and ivonescimab, the successive positive data readouts, approvals, and continuous commercialization expansion efforts into global markets augur well.

• China’s planned steel cuts may lift global prices, while India and Southeast Asia’s infrastructure demand sustains robust iron ore consumption.
• Managed money participants trimmed net long exposure to 18.5k lots last week, with overall futures and options open interest slipping by 0.8%.
• Bullish MA crossover and MACD confirm renewed buying interest and strengthen the case for higher near-term price momentum.

• Akeso Biopharma Inc (9926 HK) is looking to raise around US$460m from a mix of primary placement and selldown by its founders.
• Past deals in the name have been mixed, but the shares have been doing well and the deal size remains small.
• In this note, we talk about the deal dynamics and run the deal through our ECM framework.

• What seems to be the controlling shareholder of Laopu Gold (6181 HK), aims to raise around US$250m via selling 1.6% of the company.
• The shares have done very well since its listing and the previous deal in the name did well too.
• In this note, we talk about the deal dynamics and run the deal through our ECM framework.

• Xiaomi (1810 HK) reported 2Q25 results on 19 Aug, beating expectations. This Insight analyzes price reactions in Hong Kong and two overseas markets.
• Highlights: Implied volatility dropped sharply post-earnings, both across the term structure and skew.
• Why it matters: With Xiaomi’s implied volatility now at historically cheap levels, investors may find opportunities in long-volatility strategies ahead of the next earnings in November.

• Anta Sports acquired Jack Wolfskin in April 2025 so that “other brands” revenues surged by 61% YoY in 1H25.
• The margin pressure came from e-commerce promotion and product function development.
• We conclude an upside of 18% and a price target of HK$120. Buy.

• Shares of Pop Mart International Group Ltd. hit an all-time high after the Chinese toymaker posted strong half-year earnings, fueled by frenzied demand for its Labubu plushies in the U.S. and other overseas markets.
• The Hong Kong-listed company’s profit soared 385.6% year-on-year to nearly 4.7 billion yuan ($654.9 million) in the first half of 2025, while revenue jumped 204.4% to almost 13.9 billion yuan, according to a stock exchange filing on Tuesday.
• Notably, Pop Mart’s revenue from the Americas skyrocketed more than twelvefold from the first half of 2024, while sales in Europe and other regions excluding Asia-Pacific jumped more than eightfold.

• Jiaxin International Resources Investment Limited(JIRI) raised around US$153m in its Hong Kong IPO.
• Jiaxin International owns exclusive rights to a globally significant tungsten asset, supported by Jiangxi Copper. Commercial production began in April 2025, with full ramp-up expected by 2027
• We have looked at the company’s background and pricing in our earlier note, in this note we talk about the trading dynamics.

• Aux Electric (2580 HK) has announced terms for its HKEx IPO and plans to issue 207m shares at HK$16.00-17.42 per share and will raise around US$460m.
• The company’s low-price strategy has helped expand its top line and market share in a short span of time; however, margins lag behind large air conditioner peers.
• We think AUX should be compared against Hisense due to their higher dependence on ODM sales and believe AUX’s IPO is valued attractively compared to Hisense.

• CNRE (600111.SH) posted record H1 FY25 profits with strong production and margin gains.
• The company is ramping alloy, magnet, and separation capacity into 2026 to lift downstream integration.
• Shares have surged over 200% in 12 months, leaving valuations stretched and bubble-like.

• The mature and complete upstream to downstream industrial chain of nuclear medicine has high barriers. It is unknown whether the entire nuclear drug market can reach the scale of ADC.
• There’re uncertainties in commercialization of Sinotau’s pipeline, which faces the pressure of lowering price, NRDL negotiation, challenge from generic drugs. Uneven distribution of nuclear resources constrains the application of products.
• Short-Term performance mainly relies on the commercialization breakthrough of XTR008 and XTR005. Our forecast is revenue could reach RMB300-500 million in 2026. Pre-IPO valuation of RMB5.188 billion is not cheap.

• New Oriental is an education service company based in China that has seen significant growth and success since its founding in 1993.
• The company faced challenges in 2021 due to policy changes in China, but has since recovered and is deemed undervalued by Xu Zhong Xu.
• Xu Zhong Xu, a knowledgeable investor with background in the education industry, provides insights on the company’s history, growth trajectory, and potential for continued success.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• Shengjing Bank Co Ltd H (2066 HK) disclosed a voluntary conditional offer and delisting proposal by Shenyang SASAC at HK$1.32 per H Share, a 15.8% premium to the undisturbed price.
• The key conditions are H Shareholder approval of the delisting and a minimum acceptance condition (50% of outstanding and 90% of H Shares). The offer has NOT been declared final.
• The offer is unattractive compared to precedent transactions, peer multiples and historical trading ranges. The satisfaction of the minimum acceptance condition is the key risk.  

• On Friday 22 August, the Hang Seng Index team announced the changes to the Hang Seng Internet and IT Index for the September 2025 rebalance.
• There are 3 ADDs and 3 DELs. We predicted 2/3 ADDs and 3/3 DELs correctly. But Funding and FAF Re-weight/Capping flows are bigger than the ADD/DEL flows.
• Then on Monday 25 August, the index provider announced a capping methodology change. Not much changes, but flows increase from US$850mm to US$1bn+. Tables and spreadsheets amended.

• Alibaba (9988 HK) will announce quarterly results on Friday, August 29, 7:30 p.m. Hong Kong Time.  In the lead-up, options strategies on the Hong Kong Exchange showcase a variety of approaches.
• Highlights: Recent option trades show a bias towards bullish sentiment. Two strategies using weekly options expiring soon after the earnings announcement are explored.
• Why Read: This review offers real-market insight into how sophisticated participants are positioning ahead of Tencent’s earnings.

• Montage Technology (688008 CH) (MT), a provider of memory interface chips and interconnect chips, aims to raise around US$1bn in its H-share listing.
• MT’s product portfolio, mainly comprises memory interface chips and interconnect chips, addresses interconnect bottlenecks while enhancing data rate/bandwidth, reliability, and power efficiency, as per the company.
• In this note, we look at its past performance and other deal dynamics that might impact the listing.

• PC Partner reported 1H25 results, which showed strong revenue growth and flat net margins.
• The company is confident it can delist from HK before the end of the year, as it only needs 50% of shareholders to approve the transaction. SGX only listing remaining.
• The company is now part of the Nvidia Partnership Network, which could accelerate growth in FY26.

• China announced game approval for the August batch. The number of games approved remained at a higher level than 2023.
• The number of game approval in August marked the record high level since the resumption post tightening.
• Of the companies that we are monitoring, Netease and Bilibili got approval for one game each.

• HK$1.32/Share, a 15.79% premium to undisturbed, and a massive 86.49% discount to NAV. For a rural commercial bank privatisation, there is nothing pretty in those numbers.
• Even the Offers for Bank Of Jinzhou (416 HK) and Jilin Jiutai Rural Comm Bank (6122 HK) were pitched (slightly) higher, from a P/NAV standpoint. And both were perennially suspended.
• This is privatisation via a voluntary offer, NOT a privatisation via a Merger by Absorption. As such there is scheme-like vote AND a 90% tendering condition.

• Nongfu Spring’s revenue increased by 16% YoY in 1H25, compared to a decrease of 7% YoY in 2H24.
• The operating margin reached its historical high, 37%, since the company’s IPO.
• Wahaha, the competitor that defamed Nongfu, is in a scandal itself.

• Mixue Group (2097 HK) raised around US$450m in its Hong Kong IPO in March 2025. The lockup on its cornerstone investors is set to expire soon.
• MIXUE Group (MIXUE) is a freshly-made drinks company providing affordable products to consumers, including freshly-made fruit drinks, tea, ice cream and coffee, typically priced at around one USD per item.
• In this note, we will talk about the lockup dynamics and possible placement.

• CSPC Pharmaceutical Group (1093 HK) 1H25 revenue dropped 18.5% YoY as finished drugs witnessed decrease on VBP and NRDL inclusion. Bulk products and license fees compensated to an extent.
• More license and collaboration in relation to the development, manufacturing and commercialization of certain products of the company awaited in 2H25 and augurs well in terms of future revenue visibility.
• CSPC Pharmaceutical aims to expand into the high-end market to achieve competitive differentiation and thereby command higher prices.

• Dongfeng Motor (489 HK) has announced a privatisation; together with a concurrent listing of its EV arm.
• The same day as the dual proposals, Dongfeng announced an interim loss (1H25). Evidently, the way forward – from an investor standpoint – is electric, not internal combustion engines. 
• The cash terms + scrip (into the EV listing) under the proposals are attractive. Even after this morning’s move (+53.6%) in Dongfeng’s share price.

• Last evening, Hang Seng announced a methodology change for the Hang Seng Internet & Information Technology Index (HSIII Index) with implementation in two phases.
• The capping methodology will be updated at the September rebalance and the turnover and sector requirements will be updated at the December rebalance.
• The updated capping scheme increases turnover and flow in September, while there could be one constituent change for the index at the December rebalance.

• Aux Electric (2580 HK) is the fifth-largest air conditioner provider globally as measured by volume. It has launched an HKEx IPO to raise up to US$462 million.
• I discussed the investment case in Aux Electric IPO: The Investment Case. 
• In this note, I present my forecasts and valuation. My analysis suggests that the IPO price is attractive.

• Ganfeng Lithium (1772 HK) is looking to raise upto US$152m via a primary placement of 40m shares. There is also a concurrent CB offering for ~HKD1.3bn along with the placement.
• The company intends to use the proceeds towards repayment of loans, capacity expansion and construction, replenishment of working capital and other general corporate purposes.
• In this note, we will talk about the placement and run the deal through our ECM framework.

• Transaction services revenue was stagnant due to high comparison base.
• The gross margin declined significantly due to the overseas expansion.
• However, we believe revenue growth and margins will be stable in the long run.

• Laopu maintained high growth in 25H1, mainly benefit from the upward cycle of gold price and the continuous improvement of the brand power. Accordingly, we raised our 2025 performance forecast.
• The key issue here is the sustainability of performance during stable and declining cycle of gold hasn’t been verified. Especially when gold price drops, it will also cause inventory depreciation.
• Laopu cannot “escape” the gold price cycle.The Fed’s rate cuts are usually accompanied by fluctuations in asset prices, and gold may also face sell-off, which may lead to valuation decline.  

• Aux Electric (2580 HK)  is looking to raise up to US$460m in its upcoming Hong Kong IPO.
• It is one of the global top five air conditioner providers, with capabilities covering the design, R&D, production, sales and related services of household and central air conditioners.
• In this note, we examine the IPO dynamics, and look at the firm’s valuation.

• A quick synoptic look at the tactical setups for the indices, stocks, commodities and bonds we cover, for the week August 25 – August 29. .XLSX MODEL DATA FILE ATTACHED.
• OVERBOUGHT at the WEEKLY Close: Alphabet, S&P 500 INDEX , Tesla , China Mobile (941 HK) , Toyota Motor (7203 JP) , ASX 200 INDEX , CSI 300 Index , HSI INDEX.
• OVERSOLD at the WEEKLY Close: Meta (META US) , Softbank Group (9984 JP).

• Alibaba (9988 HK/ BABA US)will announce quarterly results on Friday, August 29, 7:30 p.m. Hong Kong Time. The timing is crucial for options expiries in HK and the US.
• Highlight: The options market provides estimates for the anticipated price move. Implied volatility is projected to decline post-event; this Insight maps the resulting term structure.
• Why Read: Get the expected move and a view of the post-event volatility term structure.

• AUX Electric is one of the top 5 air conditioner providers globally whose low-price strategy has helped expand its top line and market share in a short span of time.
• Aux Electric (2580 HK) has filed for an IPO on HKEx and plans to raise proceeds of around US$460m through the issuance of 207m shares.
• AUX’s low-price strategy and higher share of ODM brands have led to margins that are lower than domestic AC peers Gree Electric Appliances (000651 CH) and Midea Group (300 HK) .