China

• Innovent Biologics Inc (1801 HK) aims to raise around US$500m for R&D and marketing.
• The company has undertaken a number of deals in the past, with the overall results being mixed but recent deals have done well.
• In this note, we will talk about the deal dynamics and run the deal through our ECM framework.

• Anjoy Foods Group (603345 CH), a quick-frozen food company in China, aims to raise around US$336m in its H-share listing.
• AFG was the largest quick-frozen food company in China in terms of revenue in 2023, with a market share of 6.2%, according to the Frost & Sullivan report.
• We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the IPO pricing.

• FWD Group Holdings (FWD HK), a pan-Asian life insurer founded by Richard Li, now aims to raise around US$500m in its HK IPO.
• FWD is a pan-Asia life insurer operating in ten markets including Hong Kong (and Macau), Thailand (and Cambodia), Japan, the Philippines, Indonesia, Singapore, Vietnam and Malaysia.
• We looked at the company’s 2018-21 performance in our past notes. In this note, we will talk about the updates since then.

• Laopu Gold (6181 HK)’s  365-day lockup on shares held by pre-IPO investors expires tomorrow (June 27), more than doubling its current free float.
• Near-Term pressure on the stock is likely, given the sharp increase in tradable shares, mixed gold price outlook, and limited retail investor access after a steep rally.
• A potential stock split could broaden investor participation, improve liquidity and serve as a catalyst for next leg of stock upside.

• Eternal Beauty Holdings raised around US$125m in its Hong Kong IPO.
• Eternal Beauty is the largest brand management company of perfumes in the combined markets of Mainland China, Hong Kong and Macau, in terms of retail sales in 2023.
• We have looked at the company’s past performance in our previous note. In this note we talk about the trading dynamics.

• Zhou Liu Fu Jewellery Co., Ltd. (1716396D CH) is looking to raise up to $143m in its upcoming Hong Kong IPO
• It is a leading and fast growing jewellery franchise in China offering a diverse range of products through offline and online sales channels.
• We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.

• Anjoy Foods Group (2648 HK)‘s H-share IPO at a maximum price of HK$66.00 appears reasonably attractive, as this equals a 33-34% discount to peer average FY25F PER. 
• It is well-positioned to capture quick-frozen food demand growth, will gain from geographical and market share expansion, and has solid product, marketing and production capability.
• We value the stock at HK$72.66, 12.7x FY25F PER, or a 25% discount to the sector PER. It will also be on a 13.9% discount to its A-share.

• While the 2H FY25 result of China Dongxiang (3818 HK) does not look exciting, there are meaningful operating and financial improvements deep inside. 
• The HSI change is a good proxy for its investment gains, and the 5.9% gain since end-FY25 (Mar) should positively reflect on CNDX’s 1H FY26 results. 
• The sports goods business is not expected to be a drag in FY26. Trading at a steep 76.5% discount, the stock stays highly undervalued.

• Lenovo is the largest PC maker globally, with a c. 25% market share. It is also a major mobile-phone maker and Top 5 server manufacturer.
• At FYE 2024-25 (ended March 2025), Lenovo’s revenue was USD 69 bn.
• The largest shareholders of the HKEX-listed company are Legend Holdings (37%) and Chairman/CEO Yang Yuanqing (6.2%).

• Even if the first indication of LBL-024 is approved, it wouldn’t bring significant performance growth due to small market size for EP-NEC. Commercialization prospects of LBL-007 are also not optimistic.
• Leads Biolabs’ CD3 pipelines would have higher hope to be successful. However, early-stage investors transferred their equity at a discount before IPO, which may reflect their concerns about the prospects.
• Comfortable valuation is RMB3-4bn, which provides investors with a greater margin of safety.Especially in the context of current bull market of innovative drugs, biotech valuation has been full of bubble 

• Dickson Concepts Intl (113 HK)’s IFA opines that the controlling shareholder (Sir Poon) at HK$7.20 to be fair and reasonable. The vote is on 18 July. 
• A low AGM minority participation rate and quiet retail forums are helpful. However, the offer is below the net cash, and Dickson is cash generative on an underlying basis. 
• Dickson shares traits similar to those of the Goldlion and Soundwill deal breaks, which showed that low-ball offers can be blocked. This situation warrants a safety-first approach.

• Huawei is a major player in the AI chip industry, challenging Nvidia’s dominance
• The company’s European-style headquarters and aggressive sales tactics raise questions about its true nature
• Ren Zhengfei’s rare interview with People’s Daily highlights Huawei’s central role in China’s tech industry and diplomatic relations

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

• Unisound AI Technology (9678 HK) is set to debut on the HKEX on 30 June 2025, at a market cap of ~$1.9bn, raising just ~$40m.
• Current shareholders and cornerstone investors are locked for twelve months keeping the free float below the minimum threshold of Global Indices until 30 June 2026.
• The security is forecasted to be added to Global indices at the August and September 2026 reviews following the 12-month lock-up expiry.

• Cao Cao is a ride hailing platform in China that raised US$236m in its Hong Kong IPO.
• As of 2024, it held a 5.4% market share as per Frost & Sullivan.
• We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.

• After a blockbuster 2022 driven by lithium supercycle highs, Tianqi Lithium saw earnings swing into deep losses in 2024 amid price crashes.
• Looking ahead, it plans to scale lithium chemical capacity to over 140,000 tons/year, deepen integration in China and Southeast Asia, and selectively invest in technologies like DLE.
• While near-term profitability remains uncertain, current EV/EBITDA valuations below 5x suggest the downside may be priced in.

• Cosco Shipping Energy Transportation (1138 HK) will benefit from the oil supply worry as Israel and Iran are unlikely to reach a “real” peace agreement in the short term. 
• The worry, or actual, closure of Hormuz will raise VLCC rates by escalating reserve building, increasing demand for alternative routes, a higher risk premium, and panic chartering.
• After yesterday’s retreat, CSET trades on an undemanding 5.8x PER and 8.8% yield for FY25F. With over 12% ROE, its 0.73x P/B is cheap, below the average since 2023. 

• Back on the 29th April, Dickson Concepts Intl (113 HK)‘s Chairman, Dickson Poon (& relatives), holding (now) 65.77%, tabled an Offer by way of a Scheme for shares not held.
• The family offered HK$7.20/share (best & final). That compared to DC’s net cash (as at 31st Mar 2025) of HK$6.92/share. Plus financial assets comprise an additional ~HK$1.92/share.
• The Scheme Document’s now out, with a Court Meeting on the 18th July, and expected payment around the 12th August. The IFA (Platinum) says “fair & reasonable”. It is not.

• Viomi recently launched a new filtration system that produces mineral water-like output, which could be a differentiated product in the market, enabling Viomi to gain a share in an increasingly crowded filtration market.
• The company’s inability to file a timely 20-F with the SEC, combined with a recent change in auditors, will likely raise concerns among investors.
• Viomi’s strong balance sheet could enable it to pursue multiple growth strategies (expansion, new products, M&A) over the next 3-5 years.

• Since diagnosis/treatment rate of pterygium is low, it’s uncertain how many patients will be willing to pay high price for CBT-001. CBT-009 may lose first-mover advantage in front of Ryjunea.
• Due to pressure on cash flow, the development progress of CBT-006 and CBT-004 could be slower-than-expected. CBT-004’s sales may be squeezed due to the off-label use of anti VEGF drugs. 
• Valuation could be lower than peers considering that CLOUDBREAK has out-licensed commercialization rights of core product and has to face fierce competition and uncertain market demand after the product launch.

• Leads Biolabs, a China-based clinical-stage biotech, is looking to raise at least USD 100 million via a Hong Kong listing. The joint book runners are MS and CITIC.
• In our previous insight, we looked at the company’s core products and its management team, as well as investor backing.
• In this insight, we look at the updates of the prospectus spanning six months’ time. We have also read through from the competing products’ disclosures.

• AH premia bounce back last week but the “skew” of wide premia converging and narrow premia moving wider continues. It has paid to be long wide H discounts.
• The previous week smelled like an RMB counter trade was being set up, “confirmed” by a Caixin article the weekend. The HKEX “confirmation” this past week, well, maybe wasn’t one.
• The data tables below update on a daily basis in the Tools section of Smartkarma. The SOUTHBOUND Flow Monitor and AH Monitor are both there free for SK readers. Technical issue delayed this week’s Monitor.

• Context: Over the past five trading days, Tencent (700 HK) multi-leg option strategies showcased a variety of approaches. Strategy highlights are provided.
• Highlights: With 20% of all strategies traded being Diagonal or Calendar Spreads, this remains a popular strategy. Directional positioning does not exhibit a bullish or bearish bias.
• Why read: This breakdown of complex option strategies sheds light on market sentiment and positioning. Detailed examples provide actionable insights that could inspire similar strategies,

• Turning losses around in 2024 relied on capital market recovery and adjustment of accounting standards. If investment returns fluctuate or premium growth slows down, profits may again come under pressure.
• The excessive goodwill of insurance companies is essentially “overdrawing the current valuation with future expectations”.Whether goodwill can be transformed into actual synergy effects is the key to determining long-term value. 
• The market usually gives lower valuation to companies with high goodwill. FWD relies on debt to provide funding for working capital/acquisition financing. Valuation of FWD should be lower than peers.

• Cloudbreak re-filed for a Hong Kong listing to raise at least USD 100 million.
• In this note, we look at updates to the prospectus. We noted delays in its products and downward revisions of prospects.
• We checked peer performance and have a negative readthrough for the company.

• Giant Biogene (2367 HK) ‘s  stock is down 40% from its mid-May high triggered by public spat with rival Bloomage Biotechnology over collagen content labelling in its skincare line.
• Biogene’s use of recombinant collagen is rapidly emerging as the new gold standard in anti-aging skincare, giving it a clear edge over traditional ingredient players like Bloomage.
• Giant Biogene now trades at a steep discount to peers in the functional beauty space; current valuations offer meaningful downside protection, and strong upside potential as sentiment stabilizes.

• Haier Smart Home Co., Ltd. recently released its third-quarter financial results, providing insights into its performance and strategic developments.
• During the initial three quarters, the company reported sales revenue of RMB 148.9 billion, representing a 7.7% growth.
• The net profit was RMB 717 million, which marks a 26.2% increase year over year.

• Geek+ (1678559D CH) is looking to raise up to US$200m in its upcoming Hong Kong IPO.
• It is the leader in the global autonomous mobile robots (AMR) market. 
• In this note, we provide updates on the firm’s past performance.

• 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 Perfect Medical Health (1830 HK), The Keepers Holdings (KEEPR PM), Taste Gourmet (8371 HK), Philippine Stock Exchange (PSE PM), and Ginebra San Miguel (GSMI PM) 
• Our call on Perfect Medical Health (1830 HK)  is going pear-shaped as the weak HK demand environment catalyzed a profit-warning, which we will elaborate on the 27th when it reports. 

• We 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), Insignia Financial (IFL AU), ENN Energy (2688 HK), Smartpay Holdings (SPY NZ), Seven & I Holdings (3382 JP), Santos Ltd (STO AU). 
• Lowest spreads: Bright Smart Securities And (1428 HK), Ascentech KK (3565 JP), Brickworks Ltd (BKW AU), Toyota Industries (6201 JP), Avjennings Ltd (AVJ AU), Hainan Meilan International Airport (357 HK). 

• On 26 May, Hygon Information Technology (688041 CH) and Dawning Information Industry (603019 CH) announced a merger in a sign of consolidation in China’s chipmaking industry.
• For each share of Dawning held, shareholders will receive 0.5525 shares of Hygon. With uncertainty on the timeline for merger completion, Dawning is trading at a 10% discount.
• On completion of the merger, passive trackers will need to buy over US$1.1bn of Hygon Information Technology C (688041 CH) with nearly of that from local index trackers.

• Zhejiang Sanhua Intelligent Controls (2050 HK) priced its H Share at HK$22.53 to raise HK$9,336 million (US$1.2 billion) in gross proceeds. The H Share will be listed tomorrow.
• I discussed the H Share listing in Sanhua Intelligent Controls H Share Listing: The Investment Case.
• Sanhua had the highest international oversubscription rates among recent large AH listings. Despite the weak price momentum, the AH discount is attractive.

• Zhejiang Sanhua Intellignt Controls (002050 CH) (ZSIC), a manufacturer of refrigeration and air-conditioning control components, raised around US$1.4bn in its H-share listing.
• ZSIC is a market leader in a number of products, with commanding market share both domestically and globally.
• We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the trading dynamics.

• Geek+, AI & robotics warehouse automation provider, has updated its filings and reported weak revenue growth in 2024.
• Beijing based AMR solution unicorn’s revenue grew to RMB2,409m in 2024, up ~12% YoY. However, gross margins improved, operating losses narrowed, and cash burn rate decreased.
• My IPO valuation analysis coalesces around initial valuation range between $2.3B and $2.7B for Geek+ upcoming offering.

• Mixue Group (2097 HK) is forecasted to be added to Global All-World at the September 2025 review with a low free float prior to the IPO lock-up expiry.
• Mixue Group (2097 HK) is expected to undergo a significant upweight at the December 2025 review following the 6-month lock-up expiry.
• Mixue Group (2097 HK) is forecasted to be added to Global Standard at the May 2026 review following the 12-month lock-up expiry.

• Share prices of China Life and Prudential plc have been up by 33% and 40% – 50% YTD, respectively.
• China Life’s agency restructuring is bearing fruit, as evidenced by increasing agency productivity, and is expected to continue driving new business growth and margin expansion.
• Our previous thesis for Prudential plc remains largely intact. Albeit the strong share price performance YTD, valuation upside remains as its new business multiple continues to re-rate.

• Gross SOUTHBOUND volumes up to US$15+bn a day this past 5-day week. Net buying still positive but still below US$500mm/day.
• Among the top buys as a percentage of volume, FINANCIALS stood out, dramatically. PROPERTIES too. Among top sells, INFO TECH again. 10 weeks in a row negative. Tencent bigly sold.
• The data tables below update on a daily basis in the Tools section of Smartkarma. The SOUTHBOUND Flow Monitor and AH Monitor are both there free for SK readers.

• Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
• On the IPO front, Foshan Haitian (3288 HK) failed to perform at listing marking a turnaround for recent A/H listing. Sanhua Intelligent (2050 HK) will be next in line. 
• On the placements front, deals continued to flow across the region, with blocks in India showing no signs of abating.

• Context: Analysis of Alibaba’s (9988 HK) implied volatility surface as of June 20, 2025, examining implied volatility patterns, skew structures, and open interest distribution across various expiry dates.
• Highlights: One-month implied volatility at 31.6% is trading at historically cheap levels (13th percentile), while the skew shows a pronounced volatility smile favoring spreads.
• Why Read: Essential for options traders and volatility strategists looking to capitalize on the historical cheapness of current implied volatility levels, particularly given the favorable skew structure for spread strategies.

• Context: Over the past five trading days, Alibaba Group Holding (9988 HK) live multi-leg option strategies showcased a variety of approaches. Strategy highlights are provided.
• Highlights: Diagonal Spreads continue to enjoy popularity. Strategies tend to have a short-term horizon and exhibit a slightly bearish bias.
• Why read: This breakdown of complex option strategies sheds light on market sentiment and positioning. Detailed examples provide actionable insights that could inspire similar strategies,

• The 2024 China Hospital Medication Market Pattern Report has been released, and we have found some interesting points worth the attention.
• CNPGC plans to acquire 21.03% of Pacific Shuanglin’s shares at a premium of over 30% and become the actual controller. Due to horizontal competition issue, there’s potential M&A/privatization opportunities here.
• The IPO of Zhou Liu Fu is fairly priced. But fundamentals would not improve due to high gold prices and would deteriorate instead. Share price upside potential could be lower-than-expected.

• FWD Group Holdings (FWD HK) is a pan-Asia insurer that has filed its PHIP to raise around US$500 million. 
• FWD initially aimed for an NYSE IPO in 2021 to raise US$2-3 billion at a US$13-15 billion valuation. An HKEx listing in 2022 was shelved due to market conditions. 
• This note outlines the investment case. My analysis suggests that the fundamentals are mixed as FWD is rapidly growing its new business, but at the expense of its margin. 

• CSI Medical Service represents the top 50 largest and most-liquid stocks involved in medical devices, medical care, medical informatization, and other medical theme from the Shanghai, Shenzhen and Beijing Exchanges.
• In this insight, we take a look at the potential ADDs and DELs leading the race for the semiannual index rebal event in December 2025.
• We expect up to four ADDs and four DELs for the CSI Medical Service index during this index review event based on the latest available data.

• Medtide, a Chinese headquartered CDMO company, launched its IPO to raise up to US$66m via a Hong Kong listing.
• We have previously covered the company’s fundamentals. We highlighted potential corporate governance issues despite its superior financials compared to peers.
• In this note, we look at the deal term. We think the valuation and broker guidance is aggressive.

• Oriental Watch (398 HK) delivered a resilient result with revenue/profits -5%/-20% YoY (ex-one offs -11.5% YoY), despite weakness in HK (22% of sales), where the company is now making losses. 
• Cash & Investments dipped to 901 mn HKD, representing about 54% of the market capitalization. The company declared a 16.7 HKD cent/dividend (FY25: 41.3 HKD/cent yield 12%). 
• We believe that FY26 will be a year of consolidation, and with a weak HK, profits will remain subdued. Stock trades at 8.4x FY25 with a 12% dividend yield. 

• The ChiNext index represents the performance of the 100 largest and most liquid A-share stocks listed on the ChiNext Market of the Shenzhen Stock Exchange.
• The ChiNext 50 index is a subset of the ChiNext Index and it consists of the top 50 names in the ChiNext index with the highest daily average turnover.
• We see 3 changes for the ChiNext index and 5 changes for the ChiNext 50 index in the next index rebal event.

• Iron ore prices declined due to weakening demand from China, driven by a slump in its property sector, which has kept iron ore demand for steel subdued.
• China’s steel production dropped 6.9% YoY in May amid capacity cuts, with blast furnace utilisation and pig iron output declining, though some furnace restarts may boost production soon.
• Prices remain below key moving averages, indicating continued downward pressure, and the MACD below its signal line reinforces the current bearish trend.

• CSI All Share Semiconductors & Semiconductor Equipment Index represents the largest and most-liquid stocks in the Semiconductor Industry Group from the Shanghai, Shenzhen, and Beijing Exchanges.
• In this insight, we take a look at the potential ADDs and DELs leading the race for the semiannual index rebal event in December 2025.
• We expect up to six ADDs and two DELs for the CSI All Share Semiconductors index during this index review event based on the latest available data.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Seazen Group
• The US market was closed for Juneteenth yesterday.
• US President Donald Trump has indicated that he will decide whether to attack Iran within the next two weeks, according to White House Press Secretary Karoline Leavitt.

• Single stocks were softer on the week, with breadth continuing to weaken.
• Put volumes surged to their highest levels since April; Put open interest continues to rise.
• Implied volatility declined on the week despite elevated demand for downside protection.

• CSI 300 represents the 300 largest stocks by market cap and liquidity from the Shanghai and Shenzhen Exchanges. CSI 500 is the next 500 names.
• In this insight, we take a look at the potential ADDs and DELs leading the race for the semiannual index rebal event in December 2025.
• Currently, we see 9 ADDs/DELs for the CSI 300 index and 41 ADDs/DELs for the CSI 500 index.

• China Rare Earth Holdings (769 HK), a processor and trader of rare earth oxides/metals, is suspended for reasons unknown.  
• But not before gaining 79% month to date. On huge volume. And that gain is after giving back 23% from a recent high close.
• As discussed in Know Your Rare Earth Elements As China Restricts Exports, China recently escalated restrictions on the export of rare earths; although there has been some partial easing. 

• We believe Pop Mart’s advantage is its ability of choosing available IPs.
• We expect Pop Mart’s revenue will grow by 69% in 2025.
• However, the stock is overvalued by cross-sectional comparison and fairly valued by time-series comparison.

• Chinese copper inventories have dropped to 15-year seasonal lows, with SHFE stockpiles plunging 60% in April — the sharpest decline on record.
• This signals intense physical market tightness, driven by strong demand and smelter cutbacks.
• The trend is reinforcing bullish sentiment, tightening global balances, and spurring strategic moves across the copper supply chain.

• Saint Bella, a luxury maternity and baby care brand, has announced the fixed offer price of HK$6.58 per share for its IPO in Hong Kong.  
• The company is expected to IPO next week and initial fixed offer price implies a market cap of ~HK$3.9B. Saint Bella is set to start trading on June 26, 2025.
• Cornerstone investors have agreed to invest ~$42M in this offering. China Asset Management, JKKB and SS Morgan are among the cornerstone investors.  

• Abandoned Restructuring: Recently Dongfeng Motor (489 HK) confirmed that there is no restructuring activity involving its controlling shareholder.This raises hope that it is looking to turnaround its operations by itself.
• New Energy Vehicle (NEV) transformation gaining momentum: NEV sales grew 34.4% YTD May 2025; Dongfeng leads with proprietary EV platforms, smart tech integration, and Huawei-backed high-end launches.
• Trades at just 0.32x P/B, Cash at USD 14bn is much higher than market cap of USD 4bn. significantly undervalued versus peers, despite strong cash reserves,rising exports, and NEV scaling.

• Oil has surged on geopolitical headlines, with a sharp increase in both price and implied volatility.
• Implied vols in Hong Kong-listed oil names have lagged sharply behind the move in Oil.
• The relative dislocation in volatility opens the door to tactical pair trade and hedging ideas.

• STAR 50 Index is a tech-focused, blue-chip index in Mainland China which tracks the top 50 largest and most liquid names in the STAR market of the Shanghai Stock Exchange.
• STAR 100 index tracks the next 100 names (51st-150th ranks) and it represents the mid-cap segment of the STAR market.
• In this insight, we take a look at the potential ADDs/DELs for the STAR 50 and STAR 100 indices for the September 2025 index rebal event.

• Eternal Beauty Holdings Limited is looking to raise around US$144m in its Hong Kong IPO. 
• Eternal Beauty is the largest brand management company of perfumes in the combined markets of Mainland China, Hong Kong and Macau, in terms of retail sales in 2023.
• We have looked at the company’s past performance in our previous note. In this note we talk about valuations.

• Foshan Haitian Flavouring & Food (603288 CH) (FHCC), China’s leading condiments company, raised around US$1.5bn (including over-allocation) in its H-share listing.
• FHCC is China’s leading condiments company within its main product categories of soy sauce, oyster sauce, flavored sauce, specialty condiment products and other products.
• We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the trading dynamics.

• Foshan Haitian Flavouring & Food Company (3288 HK) priced its H Share at HK$36.30 to raise HK$10,128.9 million (US$1.3 billion) in gross proceeds. The H Share will be listed tomorrow.
• I discussed the H Share listing in Foshan Haitian Flavouring H Share Listing: The Investment Case.
• Haitian had the highest oversubscription rates among recent large AH listings. The AH discount implied by the offer is attractive.

• Zhou Liu Fu Jewellery Co., Ltd. (1716396D CH) is looking to raise up to $143m in its upcoming Hong Kong IPO.
• It is a leading and fast growing jewellery franchise in China offering a diverse range of products through offline and online sales channels.
• In this note, we examine the IPO dynamics, and look at the firm’s valuation.

• Chinese ride-hailing platform CaoCao plans to issue 44.2m shares at the HKEx IPO at an indicative price of HK$41.9/share, and raise net proceeds of US$219m at a valuation of HK$28.9bn.
• CaoCao’s earnings have seen strong growth during the last 2-3 years, however, much of this growth is driven through debt financing which has resulted in a highly geared balance sheet.
• Our valuation analysis suggests that CaoCao (2643 HK) ‘s IPO is overvalued at the indicative IPO price and we would recommend staying on the sidelines.

• Zhou Liu Fu Jewelery Co., Ltd. (6168 HK)‘s IPO does not appeal to us, given deteriorating profitability, smaller size, and inferior financials. 
• Its IPO price of HK$24.0 appears to be fair relative to the peers’ valuation, leaving limited upside and downside in the secondary market. 
• We value the stock at HK$22.5-25.7, based on 20-30% discount to Chow Tai Fook Jewellery (1929 HK). It is not another Laopu Gold (6181 HK). 

• FS.COM Limited (FS) is looking to raise at least US$100m in its upcoming Hong Kong IPO.
• FS presents a compelling growth story rooted in structural demand for enterprise-grade networking and a differentiated DTC model that delivers both scale and customer proximity.
• Its dominant SKU breadth, global Fortune 500 penetration, and aggressive shift toward high-performance solutions support sustained revenue expansion.

• China’s May retail sales surged 6.4% YoY, driven by holiday spending and trade-in programs, though fading property prices may dampen future consumer sentiment.
• China’s new home prices fell 3.5% YoY in May, marking a 23-month decline streak, though policy support shows signs of easing the prolonged property downturn.
• Iron ore port inventories rose in mid-June as weaker steel margins cut pig iron output, reducing pick-up volumes and softening near-term demand despite steady arrivals.

• The mismatch between supply and demand in the postpartum center market has become apparent, coupled with consumption downgrades in high-end market, which has limited the growth potential of SAINT BELLA.
• The gross margin of SAINT BELLA that focuses on high-end postpartum services is surprisingly lower than that of traditional general hospital business, indicating that the Company’s profitability is disappointing.
• SAINT BELLA attempts to attract capital through the story of “high-end services+overseas expansion”,but its model has contradictions.The essence of IPO is “a last ditch effort” for capital to cash out.

• BYD announced that the company would provide price discounts for 22 models.
• BYD has scale advantage over other NEV car makers and the NEV industry has bargaining power over suppliers and dealers.
• The auto association and the Ministry of Industry are trying to protect small companies from bankruptcy.

• On the 26th March, ENN Energy (2688 HK) announced a cash/scrip Offer from ENN Natural Gas (600803 CH) (ENN-NG), its largest shareholder.
• The pushback is that the scrip portion pivots off the value of newly-listed ENN-NG H-shares. And the IFA’s theoretical assessment on such leaves a lot to be desired.
• A redacted version of ENN-NG’s application proof is now out. Curiously, the share ratio – new ENN-NG H Shares for each ENN shares – is noticeably absent

• CaoCao (2643 HK)  is looking to raise up to $236m in its upcoming Hong Kong IPO.
• It is a ride hailing platform in China originally incubated by Geely Group connecting passengers and drivers to deliver consistent and high-quality ride experiences.
• In this note, we examine the IPO dynamics, and look at the firm’s valuation.

• As reported by Ming Lu, Chinese regulators are pushing back against BYD (1211 HK)’s dominance, which has strained smaller domestic EV competitors. Read his latest BYD insight for more details.
• In a recent insightwe signaled BYD was tactically overbought. The stock fell rapidly right after.
• The stock is currently mildly oversold according to our WEEKLY model: it could fall a bit more, but if this week closes in negative territory there could be a rebound.

• CaoCao (2643 HK) has launched its IPO to raise US$236 million at HK$41.94 per share. The shares will be listed on 25 June.
• I previously discussed the IPO in CaoCao IPO: The Bull Case and CaoCao IPO: The Bear Case. 
• In this note, I present my forecasts and discuss valuation. My analysis suggests that CaoCao is at best fairly valued at the offer price. Therefore, avoid the IPO.

• Melco International Development (200 HK)‘s fully-paid rights shares commence trading today. Melco is down just ~14% since announcing a one-for-two rights issue; and 13% above the TERP.
• Preceding my comments on Melco are the current setup/unwind tables for Asia-Pacific Holdcos.
• These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

• We see 21 potential and close adds and 34 potential and close deletes for the Hang Seng Composite Index in September. Some of the stocks are close on market cap/liquidity.
• There have been some big listings in the last couple of months and those stocks should be added to the index in September. That increases the number of potential deletions.
• There are stocks that have a very high percentage of holdings via Stock Connect and there could be some unwinding prior to the stocks becoming Sell-only.

• Foshan Haitian has priced its Hong Kong offer at the top end (HKD36.3/share) and upsized it to 279 million shares, raising a strong HKD10.1 billion (USD1.3 billion).
• With a massive 696x oversubscription and nearly half the deal secured by cornerstone investors, the stock could see a lively debut when it lists on June 19th.
• We believe Foshan Haitian Flavouring (3288 HK) lacks a clear catalyst for growth and hence the growth expectations built into its Hong Kong pricing may prove difficult to materialise.

• Over the past five trading days, Xiaomi Corp (1810 HK) multi-leg option strategies showcased a variety of approaches. Strategy highlights are provided.
• Popular Strategies: Diagonal Spreads account for 27%of all strategies. This versatile strategy allows for many different profiles in terms of upfront premium (positive or negative), and time horizon.
• This Insight of complex option strategies sheds light on market sentiment and positioning. Detailed examples provide actionable insights that could inspire similar strategies.

• On 17 June, Bloomberg reported that Foshan Haitian Flavouring & Food Company has raised HK$10.1 billion after a strong remand for its shares to be listed in Hong Kong.
• We estimate the company to generate revenue of 29.4 billion RMB (up 9.2% YoY) and net profit of 6.8 billion RMB (up 7.1% YoY) in 2025.
• Our valuation analysis suggests that Foshan Haitian is undervalued. Our base case valuation suggests implied market cap of 286 billion CNY, which represents 25% higher than current levels.

• The VanEck Gold Miners ETF/USA (GDX US) has announced a benchmark change from the NYSE Arca Gold Miners Index to the MarketVector Global Gold Miners Index.
• That change will result in a bunch of constituent and weight changes in September. Estimated one-way turnover is 15.8% resulting in a one-way trade of US$3.1bn.
• The flow and turnover numbers will change following the June rebalance of the NYSE Arca Gold Miners Index and the September rebalance of the MarketVector Global Gold Miners Index.

• Foshan Haitian Flavouring & Food Company is the largest listed condiments producer in mainland China which is seeking to raise up to HK$9.56 billion (US$1.22 billion) in Hong Kong listing.
• It is offering 263.2 million shares at HK$35 to HK$36.30 each. The final offer price is expected to be announced on 17 June. 
• Foshan Haitian Flavouring & Food is the largest condiments company in China with strong brand power with loyal customers.

• Haitian Flavouring  (3288 HK) and Sanhua (2050 HK) are forecasted to be added to Global All-World at the December 2025 review.
• Both securities are unlikely to meet the Global Standard float cap threshold before or after the lock-up expiry, based on the maximum offer price.
• Sanhua (2050 HK) has a better chance of inclusion to Global Standard at the February 2026 review following the lock-up expiry as its float cap is closer to the threshold.

• Foshan Haitian, already listed in Shanghai, is offering 263.2 million shares in Hong Kong to raise up to HKD9.56 billion (USD1.22 billion); Final offer price will be set by today.
• HK offer price is pitched at an appealing 19%–22% discount to its A-share close, however valuations are pricing in growth expectations that may not align with the underlying business dynamics.
• Foshan Haitian operates in the condiments and sauces segment—a mature, saturated and competitive market with limited room for meaningful margin or volume expansion.

• While FWD has achieved strong growth in certain key markets, its overall new business growth rate didn’t differ significantly from the peers, AIA and Prudential.
• Compared to the peers, it offers more exposure to Thailand/Cambodia, in terms of APE and VNB mix. But, the peers still have better scale in these markets.
• We struggle to develop the thesis unless FWD’s valuation is really attractive. It’s also not expecting to pay any dividends in the near future while both peers do.

• Physical-to-INE spreads indicate sluggish near-term demand
• Rising availability and tepid downstream suggests prices may remain under pressure 
• April’s import and export data highlights the caution in the market  

• Given that leading luxury groups are inclined to abandon agency and “get involved directly” in the beauty/fragrance category, such trend implies the risk of losing key suppliers in the future
• Although there’re “reusable aspects” in management, expenses spent on brand channel are big, which makes it impossible for profits to benefit from “scale effect”.So, low profit margin is the norm.
• Considering the risk of economic recession/sluggish consumption, Eternal Beauty’s net profit may experience negative growth in FY2025. It would gradually recover in FY2026-2027. Valuation could be lower than peers.

• Bayzed Health Group (BHG HK) launched its Hongkong IPO aiming to raise up to HK$ 900 million. The company plans to sell 133 million shares at HK$4.22–6.75 per share.
• The company plans to utilize the IPO proceeds to continuously strengthening the full-cycle oncology healthcare services primarily through purchasing medical equipment and recruiting medical professionals.
• Bayzed Health is an oncology healthcare group which posted revenue of RMB 1,189 million in 2024, up by 11% YoY. Gross margins improve; net losses narrow too.

• TransThera Sciences, a clinical-stage biopharma, filed to list on HK. The company aims to raise HK$200M by offering 15M shares. The offer price is set at HK$13.15 ($1.7) per share.
• The IPO opened on June 13 and closes on June 18. Allocations are expected on June 20, while trading is anticipated to commence on June 23.
• The company intends to use the IPO proceeds to fund the research and development of core product candidate, Tinengotinib for various types of solid tumors.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: China Vanke, Tata Motors
• US Treasury yields rose 3-5 bps across the curve on Friday, as the surge in oil prices amid the Iran-Israel conflict stoked renewed inflation concerns. The yield on the 2Y UST rose 4 bps to 3.95%, while the yield on the 10Y UST climbed 4 bps to 4.40%.
• Equities retreated, with tech- and travel-related stocks declining, while energy producers and defence stocks rose. The S&P 500 fell 1.1% to 5,977, while the Nasdaq Composite declined 1.3% to 19,407.