China

• There could be 3 changes for the Hang Seng China Enterprises Index (HSCEI INDEX) in December. Announcement is on 21 November with implementation at the close on 5 December.
• The forecast adds have moved higher over the last few months and handily outperformed the forecast deletes and the Hang Seng China Enterprises Index (HSCEI INDEX). 
• There has been aggressive short covering in the forecast adds and there could be more in stocks where short interest is still a high percentage of float.

• 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.
• In this insight, we have presented our final expectations for ADDs and DELs for the upcoming December 2025 index rebal event. 11 ADDs, 11 DELs, $2.3bn to trade.

• Big Beautiful Skew was again a no-show. But the SFC’s expectation of dual counter eligibility for Connect by year-end approaches its endgame.
• The GAC (2238 HK) reco 2wks ago worked well. One extra week was bad. Last week’s reco on CNOOC Ltd (883 HK) was a disaster. H underperformed A by 8.4%.
• The data tables below update on a daily basis in the Tools section of Smartkarma. The SOUTHBOUND Flow Monitor and AH Pairs Monitor are both there – free – for all SK readers.

• 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 have presented our final expectations for ADDs and DELs for the upcoming semiannual index rebal event in December 2025.
• We expect 11 ADDs/DELs for the CSI 300 index and 50 ADDs/DELs for the CSI 500 index during this index review based on the latest available data. US$11bn total flows.

• Pop Mart’s 25Q3 results beat expectations, mainly driven by high growth of revenue attributed from operations overseas. The “online + offline + overseas” three-wheel drive strategy has achieved remarkable performance.
• However, the market has expressed concerns over the IP life cycle and performance sustainability of Pop Mart through the decline in its stock price, which may not have ended yet.
• There are no signs that new products can catch up with LABUBU. Once market sentiment reverses, it will affect Pop Mart’s valuation outlook. 30-35x P/E is a more comfortable range.

• CNGR Advanced Material (300919 CH), a new energy materials company, has filed its PHIP for an H Share listing to raise US$700 million.     
• CNGR ranked first globally in 2024 in terms of sales value for all cathode active material precursors (pCAM) products, with a market share of 21.8%.
• The fundamentals are solid, with good growth, a relatively stable margin profile, declining cash burn, manageable leverage, and an undemanding valuation. 

• JD Industrial is now looking to raise about US$500m, down from earlier reported US$1bn, in its upcoming HK IPO.
• JDI is a leading industrial supply chain technology and service provider in China in terms of GMV in each year during the Track Record Period, according to CIC.
• We have looked at the company background and provided our initial thoughts on valuations in our previous notes. In this note, we will talk about the refiling updates.

• Front-end UST yields declined on Friday, unwinding part of the jump in yields following the FOMC rate decision on Wednesday.
• The yield on the 2Y UST fell 4 bps to 3.57%, while the yield on the 10Y UST was down 2 bps at 4.08%. Equities climbed, supported by optimism over corporate earnings.
• The S&P 500 gained 0.3% to 6,840, while the Nasdaq rose 0.6% to 23,725. 

• 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), Brainpad Inc (3655 JP), Smart Share Global (EM US), AUB Group Limited (AUB AU), ENN Energy (2688 HK), Dongfeng Motor (489 HK).
• Lowest spreads: Bright Smart Securities (1428 HK), Mandom Corp (4917 JP), Pacific Industrial (7250 JP), Seven West Media (SWM AU), Humm Group (HUM AU), Toyota Industries (6201 JP). 

• The 11th national VBP officially started last week. The average price reduction of the selected products is 53%. Due to the “anchor price” mechanism, VBP is becoming increasingly rational.
• The purchasing power of the global pharmaceutical industry on Chinese assets is still far from saturated that we have reason to expect more transactions to come to Chinese pharmaceutical companies.
• Based on WuXi AppTec’s 25Q3 results, CDMO business has emerged from fundamental turning point following the recovery of overseas biotech industry, but the inflection point of CRO is lagging behind.

• QFIN shares are down ~19% MTD on regulatory concerns in China’s consumer finance sector, though the proposed credit-risk sharing rules may only modestly impact near-term RoE (1–3ppt).
• While speculation over a lower NFRA loan yield cap persists, QFIN’s current yield profile suggests limited sensitivity; any tangible financial impact will depend on actual regulation rollout.
• QFIN’s 0.9x P/B reflects overly bearish loss expectations. Even under a bear case with a 5ppt RoE reduction, the stock offers 56% upside, implying a fair value of $34.

• The data in this insight is collated from the “shareholding disclosure” link on the HKEx website.
• Often there is a corresponding HKEx announcement on the increase – or decrease – in the shareholding by directors. 
• However, such disclosures are by no means an absolute. These insights also flag those companies where shares have been pledged, both recently and ongoing.

• Chery’s revenue growth rate plunged below 5% YoY in 3Q25 from 28% YoY in 2Q25.
• Chery’s domestic retail sales volume began to decline in September 2025.
• The company is still the number five largest car maker in China.

• For Oct 2025, 15 new transactions (firm and non-binding) were discussed on Smartkarma (by the Quiddity team) with an overall announced deal size of ~US$33bn.
• The average premium for the new transactions announced (or first discussed) in October was ~54%, with a year-to-date average of ~49%.
• 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%.

• Mininglamp Technology (1912140D HK) raised around US$131m in its Hong Kong IPO.
• Mininglamp Technology (formerly known as Leading Smart Holdings), is a data intelligence software provider in China, specializing in transforming enterprises’ marketing and operational decision-making.
• We have looked at the company’s background and pricing in our earlier note, in this note we talk about the trading dynamics.

• The rise of Softcare is in line with the logic of “Chinese supply chain going global”.It has solved channel/cost problems through localized production, quickly captured market share with low-price tactic.
• Our forecast benefiting from market penetration/capacity expansion, revenue growth could be 15% YoY in 2025.In 2026-2027, as competition intensifies, revenue growth may slow down to 12% YoY, 10% YoY respectively.
• Given that Softcare’s main market is in Africa, which is characterized by high growth and high risk, a forecasted P/E of 8-12x for 2025 could be a comfortable valuation range.

• Implied volatility rose across most markets in October, and a continuing trend in vol premium warrants attention.  
• November has historically produced strong price returns and positive volatility premiums across global markets.
• Implied volatility displays clustering across markets, with two distinct groupings beginning to take shape.

• Dongfeng Electronic Technology (DETC) is a core automotive components supplier within the state-owned Dongfeng Motor Group, heavily reliant on intra-group sales. This relationship provides stable demand but also concentrates risk and limits exposure to the broader, faster-growing segments of the Chinese auto market.
• The company’s financial performance has been challenged, with multi-year declines in revenue, net income, and earnings per share. This reflects significant headwinds in the commercial vehicle sector and increasing competition, pressuring margins and profitability.
• While currently focused on traditional vehicle components, DETC’s future hinges on its ability to pivot towards the New Energy Vehicle (NEV) and intelligent vehicle segments. Strategic initiatives and R&D in areas like electric drive systems and smart cockpits are critical but face intense competition from established and emerging players.

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• Binjiang Service is a high-growth property management firm with a strong brand in the premium segment of the Yangtze River Delta, benefiting from the stable pipeline of its reputable parent developer, Binjiang Real Estate.
• The company is strategically shifting its focus towards high-margin ‘5S’ value-added services (VAS), particularly in soft decoration and community living, to offset declining revenues and margins in its non-owner VAS segment.
• While demonstrating robust top-line growth and a generous dividend policy, the company faces significant risks from the broader downturn in China’s property market, intense industry competition, and rising operational costs.

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• 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: Pony AI (PONY US), Seres Group (9927 HK) and WeRide (WRD US) H Share listings.
• Event-Driven developments: ANE Cayman Inc (9956 HK), Brainpad Inc (3655 JP), Sumitomo Densetsu (1949 JP), Sumitomo Riko Company (5191 JP), Mayne Pharma (MYX AU), AUB Group Limited (AUB AU).

• Anxin Trust is in a precarious recovery phase following a state-backed bailout in 2021, which was necessitated by a severe debt crisis stemming from mismanagement and misappropriation of funds.
• The company has returned to profitability in the last two years after significant losses, but its financial performance remains volatile, and it faces extremely high valuation multiples, suggesting the market has priced in a full, but uncertain, recovery.
• The outlook is heavily dependent on the successful execution of its new strategy under a revamped, state-influenced management team and navigating China’s increasingly stringent regulatory environment for the trust industry.

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• Zuoli Kechuang Micro Finance is a licensed microfinance company based in Zhejiang Province, China, facing significant headwinds as evidenced by a consistent decline in revenue and net income over the past several years.
• The company’s stock trades at a deeply discounted valuation, with a Price-to-Book ratio significantly below 1.0x, which may attract value-oriented investors. This is supported by a high Smartscore for Value (5/5).
• Despite a historically attractive dividend, the payout has been decreasing steadily, reflecting the underlying pressure on earnings and cash flow. The 3-year CAGR for dividends is sharply negative at -38.10%.

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• 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 have presented our final expectations for ADDs and DELs for the upcoming December 2025 index rebal event.

• XAG Technology (XAG HK) is looking to raise at least US$100m in its upcoming Hong Kong IPO. The deal will be run by Huatai.
• Guangzhou Xaircraft Technology Co., Ltd. (XAG) is a global leader in agricultural robotics.
• The company integrates robotics, artificial intelligence, and renewable energy to create comprehensive solutions that make farming more efficient and sustainable.

• Softcare (SOFT HK) is looking to raise up to US$307m in its upcoming Hong Kong IPO.
• It is an international hygiene product corporation with a focus on fast-growing Emerging Markets including Africa, Latin America and Central Asia. 
• In this note, we examine the IPO dynamics, and look at the firm’s valuation.

• Pop Mart options recently began trading on HKEX and have gained considerable traction, ranking in the top 10 of volume traded.
• Pop Mart has had a tremendous rally but is in the midst of a double-digit slump.
• Option volumes have been skewed, and we outline how best to approach hedging in this environment.

• CGN Mining is uniquely positioned as the sole overseas uranium resources development and trading platform for its parent, China General Nuclear Power Corporation (CGN), a major nuclear power operator in the world’s fastest-growing nuclear energy market.
• The company is set to benefit from a strong uranium market uptrend, driven by a global nuclear energy renaissance and supply constraints. A lucrative off-take agreement with its parent company at prices reportedly 50% higher than previous contracts is expected to significantly boost revenues.
• Despite a robust long-term outlook, the company faces risks from geopolitical instability in key uranium-producing regions, potential price volatility, and recent financial pressures from managing high-cost inventory, which has impacted margins.

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• Yunnan Yuntianhua is a leading state-owned enterprise in China’s fertilizer and chemical sector, possessing significant competitive advantages through its vertical integration and access to vast phosphate rock reserves in Yunnan province.
• The company demonstrates strong financial performance with robust cash flow generation and an attractive dividend yield, though its revenue and earnings are subject to the cyclical nature of commodity markets.
• Future growth is anticipated to be driven by strategic expansion into new energy materials, such as iron phosphate, and a continued focus on high-value fine chemical products, alongside strengthening its market position in Southeast Asia.

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• Venerable Brand with Deep Heritage: Guangyuyuan is one of China’s oldest Traditional Chinese Medicine (TCM) brands, founded in 1541. This long history provides significant brand equity and consumer trust, a key advantage in the healthcare sector. The company was officially recognized as a “China Time-Honored Brand”by the Ministry of Commerce in 2006.
• Favorable Industry Tailwinds: The TCM industry in China is experiencing robust growth, supported by government policies, an aging population, and increasing health awareness. The market is projected to grow at a double-digit CAGR, creating a favorable environment for established players like Guangyuyuan.
• Financial Turnaround and Growth Focus: After a significant loss in 2022, the company has demonstrated a strong recovery in profitability through 2023 and 2024. Management is focused on a growth-oriented strategy, emphasizing product innovation and new marketing channels, including e-commerce and collaborations with influencers.

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• Busy news week with trade and deal headlines taking center stage.
• Stock have been treading water aside from the Materials Sector with breadth reversing from last week’s rebound.
• The thick of earnings season is past with only 15 companies reporting in the next week.

• Unmatched Brand Heritage and Market Leadership: With a history spanning over 350 years, Beijing Tongrentang is a premier brand in Traditional Chinese Medicine (TCM), commanding significant brand loyalty and market recognition. This “time-honored brand”status provides a substantial competitive advantage in a fragmented market.
• Favorable Industry Tailwinds: The company is well-positioned to benefit from China’s aging population, rising health consciousness, and strong government support for the TCM industry. These demographic and policy trends are expected to drive sustained demand for TCM products and services.
• Concerning Cash Flow Trend Despite Solid Growth: While the company has demonstrated consistent revenue and net income growth, a significant and persistent decline in operating and free cash flow over the past several years raises concerns about working capital management and the quality of earnings.

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• It is no surprise that BYD’s revenue decreased YoY in 3Q25 according to our previous sales volume note.
• The quarter-over-quarter margin improvement is not about seasonality, but about a sign of the margin recovery in 2026.
• We believe the stock has a downside of 25% for 2026.

• 52TOYS Development, a Beijing-based multi-genre IP toy company, is seeking Hong Kong IPO that would raise up to $200M.
• Founded in 2012 by Mr. Chen and Mr. Huang, 52TOYS positions itself as a toymaker with a strong emphasis on collectible mecha and sci-fi aesthetics.
• 52TOYS has made a big push online and in overseas markets. I believe the company has primary growth drivers such as international expansion and new licensed and proprietary IP products.

• Alternative data suggests a turn in the luxury wristwatch market. But most likely, this turn is due to US tariffs on Swiss watch imports, causing US buyers to panic buy. 
• Oriental Watch continues to be undervalued at just 8.3x P/E and a dividend yield of 12%
• However, the Chinese watch market remains weak and there’s no clear sign of a turnaround yet

• Our base case valuation of Seres Group is target price of 189.9 CNY which represents a 17% upside from current levels over a 6-12 month period.
• Our target P/S multiple of 1.4x is 50% premium to the average valuation multiple of the comps in 2026. 
• We used a premium valuation multiple for Seres Group due the company’s higher sales growth, EBITDA margins, and ROE.

• Sany Heavy Industry (6031 HK) has rallied 15.3% after its IPO, and 3Q25 earnings are in a consistent trend. We do not expect a significant change in earnings forecasts. 
• The mere 0.1% discount to its A-share looks rich. The FY26F PER of 17.7x is also significantly higher than its peers, reflecting most of its strengths.
• Even if it re-rates to a similar premium as Jiangsu Hengrui Pharmaceuticals (1276 HK), the upside is only 5.8%. The risks clearly outweigh the return.

• HKEX Expands Weekly Options: Five new single-stock weeklies debut on 10 November, broadening Hong Kong’s fast-growing short-dated options market.
• Why It Matters: Weeklies let traders and investors hedge or speculate around key events with precision, lower premiums, and higher gamma exposure.
• Momentum: Trading volumes in existing weeklies have surged—up nearly fourfold since launch—underscoring rising investor adoption and liquidity.

• Softcare (SOFT HK)  is looking to raise around US$300m in its upcoming Hong Kong IPO.
• It is an international hygiene product corporation engaged in the development, manufacturing and sales of baby and feminine hygiene products.
• We have looked at the company’s past performance in our previous note. In this note, we will undertake a PHIP update.

• Meituan is the definitive market leader in China’s online-to-offline (O2O) services industry, with a dominant position in food delivery, holding an estimated 60-70% market share. The company’s integrated platform, encompassing a wide array of services from in-store dining to travel bookings, creates a powerful ‘super-app’ ecosystem that fosters high user engagement and retention.
• Intensifying competition from rivals such as Alibaba’s Ele.me and JD.com, coupled with a strategic focus on lower-priced offerings to capture market share in a slowing economy, is expected to pressure margins in the near term. Management has guided for a significant decline in operating profit for the core local commerce segment in the upcoming quarters due to increased subsidies and investments.
• Despite near-term headwinds, Meituan‘s long-term outlook is supported by its strategic investments in technology, such as AI-driven logistics and drone delivery, and its expansion into new initiatives and international markets. The company’s ability to leverage its vast user base and data analytics provides a strong foundation for future growth and profitability.

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• FJD Inc (FJD HK) is looking to raise at least US$100m in its upcoming Hong Kong IPO. The deal will be run by MS and CICC.
• FJD’s mission is to empower and elevate frontline workers in labor-intensive scenarios with accessible, intelligent robotics solutions.
• The company achieves this by building digital models for the real world and driving autonomous transition in essential workflows across multiple core industries.

• Nongfu Spring is the dominant market leader in China’s packaged drinking water and broader beverage industry, demonstrating consistent growth and strong profitability.
• The company’s strategic focus on high-quality natural water sources and a diversified product portfolio, including successful tea beverages, positions it well for future growth in a health-conscious consumer market.
• Despite facing intense competition and reputational challenges, Nongfu Spring’s robust financial performance, expanding margins, and solid brand recognition underscore its resilient market position.

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• After ANE Cayman Inc (9956 HK), a road freight transportation play, was suspended pursuant to the Takeovers Code, an Offer from PE outfit Centurium Partners, a pre-IPO investor, was expected. 
• And this is what unfolded. Centurium, together with Temasek and Singapore-based asset manager True Light, are offering HK$12.18/share (best & final) via a Scheme, a 48.54% premium to undisturbed.
• A scrip alternative is present (mix & match). This is a pre-conditional Offer: it requires SAMR signing off. The FA is JPM. This should help smooth over the reg process.

Key points (machine generated)

• Alibaba Group (BABA) is currently priced at $120 per ADS, with a projected valuation of $300 per ADS by 2028, indicating a potential upside of 2.5 times.
• The company’s future valuation is expected to depend on its key segments: Taobao and Tmall Group in the China e-commerce market and Alicloud, which are currently undervalued.
• BABA’s low forward multiple of 11-12 times next year’s earnings, along with revenue growth from Alicloud and potential stock buybacks, suggests downside protection for investors.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Pony.ai is getting ready to complete its IPO in Hong Kong in the coming weeks. Pony.ai is one of the leading autonomous driving companies in China. 
• Pony.ai plans to sell 41.96 million Class A shares under its global offering in Hong Kong, including 4.2 million shares for Hong Kong retail investors.
• The maximum offer price of the Hong Kong IPO is HK$180 (US$23) per share, which could value the company at more than US$10 billion.

• While CIMC Enric Holdings (3899 HK)‘s share price has lagged YTD, its 3Q25 and 9M25 results look decent with 6.2% and 12.9% YoY increase, respectively.
• Its backlog orders amount of Rmb30.8bn, up by 10.9% YoY, is a record high. This is already enough to cover the full-year FY26 projected revenue.
• With a 13.4% 3-year EPS CAGR, its PERs are inexpensive. Meanwhile, it is in an excellent position to thrive under China’s 15th Five-Year Plan (2026-2030).

• After the good run, Minth Group Ltd (425 HK) share price looks a bit expensive. 
• However, it was a value stock before, trading at 0.6x book value while growth remains. 
• Compared to its peers, it is still not too expensive and the growth seem to continue as the company is able to expand its margin. 

• In today’s Morning Views publication we comment on developments of the following high yield issuers: China Oil & Gas, SK Hynix, Meituan, Pakuwon Jati, Nissan Motor
• UST yields were little changed yesterday, with little response to a soft auction of 7Y notes. The market focus will be on the FOMC rate decision today, with the Fed largely expected to reduce rates by another 25 bps.
• Equities notched fresh record highs, supported by expectations of strong Q3/25 earnings from major tech firms.

• The willingness of hospitals/patients to purchase medical AI products/services is still not strong enough. The real turning point for the commercialization of medical AI hasn’t arrived yet.
• The small revenue scale reflects that Diagens’ products have not received widespread recognition from the medical system. Market education cost would be high, leading to increasing selling and distribution expenses
• Valuation should be higher than Basecare (2170 HK) who just focuses on testing kits in assisted reproduction, but should be lower than Xunfei Healthcare, who has better commercialization performance/channels advantage.

• WeRide (WRD US) plans to raise around US$325m in its secondary listing in Hong Kong.
• We have looked at the deal dynamics in our previous note.
• In this note, we talk about the deal structure and updates since then.

• Pony AI (PONY US)  plans to raise around US$825m in its secondary listing in Hong Kong.
• We have looked at the deal dynamics in our previous note.
• In this note, we talk about the deal structure and updates since then.

• ANE Cayman Inc (9956 HK) has disclosed a preconditional scheme privatisation offer from a consortium. The offer is cash (HK$12.18) or scrip (One TopCo Class A Share per scheme share). 
• The precondition relates to SAMR approval. The scheme vote is low risk, as the offer is attractive relative to historical ranges and peer multiples. 
• The offer price is final. Mr Wang Yongjun, the former chairman, holds a blocking stake but should be supportive. Timing is the key risk. 

• Pop Mart (9992 HK)’s share price is down 33% from its peak levels in late August 2025. Going forward, we expect further downside risk on Pop Mart.
• We highlight the growing concerns about the declining resale values of Labubu. After reaching their peak prices in this summer, the resale prices of Labubu dolls have continued to drop.
• Its share price declining below the critical HK$250 support on big volumes suggest negative technicals on this stock. 

• Sichuan Biokin is looking to raise up to USD 500 million from an A-H listing. The sponsors are GS, JPM, and CITIC.
• Sichuan Biokin recently published its post-hearing prospectus. The company also released financial results for 3Q 2025.
• We think the company has progressed well in its core asset and has reported encouraging clinical data since the beginning of the year.

• Ningbo Joyson Electronic (600699 CH) is looking to raise up to US$471m in its upcoming Hong Kong IPO.
• It is an intelligent automotive technology solution provider, offering advanced products and solutions across the auto part industry’s key areas including automotive electronics and automotive safety.
• In this note, we examine the IPO dynamics, and look at the firm’s valuation.

• Dominant Hong Kong Developer with Unmatched Land Bank: Henderson Land is a premier property developer in Hong Kong with a vertically integrated model and a substantial, strategically acquired land bank. Its most significant competitive advantage lies in possessing the largest agricultural land holdings among its peers, positioning it uniquely to benefit from government-led development initiatives like the Northern Metropolis.
• Resilient Financials and Attractive Shareholder Returns: Despite challenging market conditions that have impacted net income, the company has demonstrated strong growth in operating and free cash flow. It maintains a commitment to shareholders, evidenced by a stable dividend policy and a high dividend yield, which is a key attraction for income-focused investors.
• Navigating a Cyclical Market with a Clear Strategy: The company faces headwinds from Hong Kong’s volatile property market and a high interest rate environment. However, its strategic focus on urban renewal, converting its extensive farmland reserves, and launching new, high-quality projects like ‘The Henderson’ provides a clear path for future growth and value creation.

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• Guoco Group is a diversified investment holding company with a strong presence in property development, hospitality, and financial services across key Asian and European markets. It serves as the overseas investment flagship for Malaysia’s Hong Leong Group.
• The company exhibits a stark contrast between its recent operational performance and long-term market valuation. While 3-year compound annual growth rates for revenue (15.33%) and net income (27.06%) are robust, its market capitalization has declined over 3, 5, 7, and 10-year periods, suggesting a significant valuation discount.
• Valuation appears attractive, highlighted by a low price-to-book ratio of 0.33. This, combined with a consistent dividend and strong recent cash flow growth, presents a potential value opportunity, albeit with risks associated with its conglomerate structure and exposure to cyclical industries.

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• Yangtuo’s business model is B2B2C, targeting lower-tier market, but the consumption upgrade in lower-tier market lags behind, which will affect the sales of high-margin products and require more marketing/promotion investment.
• Yangtuo decides to shift from digital marketplace business to self-operated business, but such strategic adjustments may force Yangtuo to abandon the light-asset model and turn to heavy-asset model.
• Overall performance and key operating metrics have shown a downward trend. Continuous decline in profit margins is expected. Valuation of Yangtuo should be lower than Kidswant Children Products (301078 CH).

• WeRide (WRD US), a provider of autonomous driving products and services, is seeking to raise between US$350 million through an HKEx listing.    
• It was listed on the Nasdaq on 25 October 2024, raising US$120 million at US$15.50 per ADS. Since listing, the shares are down 31%.
• The investment case centres around accelerating revenue growth, progress towards mass commercialisation and valuation in line with historical averages. However, the path to profitability remains uncertain.

• Seres Group (601127 CH), a Chinese NEV manufacturer, aims to raise around US$1.7bn in its H-share listing.
• Seres Group (SG) is principally engaged in the research and development, manufacturing, sales and services of new energy vehicles (NEV) as well as core NEV components.
• 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.

• Sany Heavy Industry (600031 CH) priced its H Share at HK$21.30 to raise HK$13,453 million (US$1.7 billion) in gross proceeds. The H Share will be listed tomorrow.
• I discussed the H Share listing in SANY Heavy Industry H Share Listing: The Investment Case and SANY Heavy Industry H Share Listing (6031 HK): Valuation Insights. 
• Sany’s international oversubscription rates were above the median of recent large AH listings. The AH discount remains reasonable.

Key points (machine generated)

• Tencent has 1.4 billion users on Weixin/WeChat, establishing it as a leading digital platform.
• The company is positioned to enhance monetization through AI integration across its services.
• Despite its strengths, Tencent’s core business is undervalued, trading at 14 times the consensus 2026 earnings per share.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• 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 have presented our final expectations for ADDs and DELs for the upcoming semiannual index rebal event in December 2025.
• We expect up to six ADDs and six DELs for the CSI Medical Service index during this index review event based on the latest available data.

• Sany Heavy Industry (600031 CH), raised around US$2.0bn in its H-share listing.
• Sany Heavy Industry was the world’s third largest and China’s largest construction machinery company in terms of construction machinery’s cumulative revenue from 2020 to 2024, according to Frost & Sullivan.
• We have looked at the past performance and valuation in our previous note. In this note, we talk about the trading dynamics.

• Seres Group (601127 CH), a Chinese NEV manufacturer, has launched an H Share listing to raise US$1.7 billion.
• I discussed the H Share listing in Seres Group H Share Listing: The Investment Case.
• The proposed AH discount of 24.8% (based on the 24 October A Share price) is attractive, and I would participate in the H Share listing.

• CSI All Share Semiconductors Index represents the largest and most-liquid stocks in the Semiconductor Industry Group from the Shanghai, Shenzhen, and Beijing Exchanges.
• In this insight, we have presented our final expectations for ADDs and DELs for the upcoming semiannual index rebal event in December 2025.
• We expect up to four ADDs and two DELs for the CSI All Share Semiconductors Index during this index review event based on the latest available data. Flows are small.

• Seres Group is getting ready to complete its IPO on the Hong Kong exchange in the coming weeks that could raise about US$1.7 billion.
• At the high end of the IPO price range of HK$131.50 per share, Seres would have a market capitalization of nearly HK$215 billion (about $27.6 billion).
• Seres Group is one of the largest new-energy vehicle makers in China. There are 22 cornerstone investors that have committed to purchase approximately 49% of the offer.

• Mininglamp Technology (1912140D HK) is looking to raise US$131m in its Hong Kong IPO.
• Mininglamp Technology (formerly known as Leading Smart Holdings), is a data intelligence software provider in China, specializing in transforming enterprises’ marketing and operational decision-making through large model driven analytics.
• In this note, we will talk about the company’s past performances and valuations.

• 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: Smart Share Global (EM US), Mayne Pharma (MYX AU), ENN Energy (2688 HK), Dongfeng Motor (489 HK), Changhong Jiahua Holdings (3991 HK), Joy City Property (207 HK).
• Lowest spreads: Bright Smart Securities (1428 HK), Mandom Corp (4917 JP), Humm Group (HUM AU), Larvotto Resources (LRV AU), Seven West Media (SWM AU), Jinke Smart Services (9666 HK). 

• Seres Group (601127 CH) could raise up to HK$17.4bn (US$2.24bn) in its H-share listing if the Offer Size Adjustment Option and the Overallotment Option are both exercised.
• There is a big allocation to cornerstone investors that is locked up for 6 months. That eliminates the already small possibility of Fast Entry inclusion to global indexes.
• Seres (9927 HK) should be added to Southbound Stock Connect from the open of trading on 1 December following the end of the Price Stabilisation period.

• Whether it is big pharmaceutical company or Biopharma that currently generates revenue/profits mainly through one or two products, they may not be able to “defend” successfully in long term.
• The logic for innovative medical device is similar to innovative drugs – It takes 1-2 years from the turning point of policies to the turning point of fundamentals.
• The Innovent-Takeda deal is logical. However, stock price performance of Innovent was disappointing, which is due to the “turning point” of HK biotech sector.The current decline is far from over.

• Context: Index heavyweight HSBC (5 HK) / HSBC (HSBA LN) is set to report results on 28 October at 12:00 HKT — during the Hong Kong trading lunch break.
• Timing & Trading: The 30 Oct and 31 Oct option expiries offer direct instruments to gauge HSBC’s post-earnings volatility — or to take targeted exposure to, or hedge, the event.
• Expected Move: Historical data reveals HSBC’s announcement-day moves are significantly larger than on average trading days, with options currently pricing in a remarkably aligned ± 3.1% implied move.

• Bloks Group shares returned ~47% for IPO investors as of today, trailing the HSI’s 30% gain. The stock peaked at HK$190+ and fell ~55% over the following four months.
• Shares saw pressure after lockup restrictions expired in July. Until this month, the lockup provision had prevented the majority shareholder and other early investors from selling their shares. 
• The company’s revenue grew ~28% YoY in the first half of 2025, raising potential concerns of continued slowdown in sales of assembly character toys. Expect stock underperformance to continue.

• The last two weeks have seen “Beautiful Skew” behave badly across the ten trading days. CNOOC Ltd (883 HK) is trading too wide for its div into year-end.
• The long reco on Guangzhou Automobile Group (2238 HK) two weeks ago saw the H-share rise 6.8% from the next day through Friday, and the H OUTperformed its A by 2.62%.
• The data tables below update on a daily basis in the Tools section of Smartkarma. The SOUTHBOUND Flow Monitor and AH Pairs Monitor are both there – free – for all SK readers.

• Chairman of the Board Zhu Yi hopes to build Biokin into an MNC with the success of BL-B01D1.In other words, Zhu Yi is prepared to bet all on this product.
• Biokin’s valuation should be lower than Akeso Biopharma Inc (9926 HK), but higher than RemeGen. If BL-B01D1’s development is successful, Biokin’s future valuation ceiling will be higher than Kelun Bio.  
• Global peak sales revenue share of BL-B01D1 could reach approximately RMB20 billion. If based on P/S of 5x, market value is RMB100 billion. So, there’s bubble in valuation in A-share.

• 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, Hong Kong and India markets appear to be gearing up for a year end rush.
• On the placements front, there were no large deals this week but we did have a look at the upcoming lockup expiries.

• WuXi AppTec (2359 HK) has announced 3Q25 result, with revenue growing 15% YoY and net profit increasing 83% YoY. U.S. remains the main driving force behind the company’s strong performance.
• With continuous capacity expansion to better meet customer demand, backlog for continuing operations reached a record high of RMB60B as of September 30, 2025, up 41% YoY.
• Based on the current momentum and confidence in customers’ ongoing demand for enabling services, Wuxi AppTec has further raised its full-year revenue growth guidance to 17–18% from 13–17%.

• Gross SOUTHBOUND volumes just over US$21bn a day two weeks ago as markets fell sharply. About two-thirds that this past week as indices rebounded. High-div SOEs seeing buying demand.
• The recommended name was short Fuyao Glass Industry Group (3606 HK). The stock was -4.9% over two weeks, but the H outperformed its A by 0.55%.
• The data tables below update on a daily basis in the Tools section of Smartkarma. The Southbound Flow Monitor and AH Pairs Monitor are both there – free – for all SK readers.

• Nameson Holdings currently has a very high dividend yield of 12.8% which is one of the highest dividend yields among listed stocks in Asia. 
• It has attractive valuations. It has valuation multiples of 5.6x (P/E), 0.8x (P/B), and 4.2x (EV/EBITDA) based on FY25 earnings. 
• Uniqlo is the largest customer of Nameson Holdings. Uniqlo accounted for 60% of Nameson’s total sales in FY25 and from FY22 to FY25. 

• Growth rates of outbound and domestic air travel slowed again in September
• Initial read on Golden Week demand: weak activity growth, weaker spending
• In our view, it’s increasingly difficult to retain an upbeat view of the sector

• Wai Kee Holdings is a Hong Kong-based construction and infrastructure company facing significant profitability challenges, primarily driven by substantial losses from its strategic investment in associate company, Road King Infrastructure Limited.
• Despite consistent year-over-year revenue growth from its core construction, quarrying, and materials segments, the company’s bottom line has been severely impacted by impairments and shared losses from Road King’s exposure to the challenging property market in Mainland China.
• The company’s valuation appears deeply discounted on a price-to-book basis, reflecting high uncertainty and poor sentiment, but its core operations are positioned to benefit from long-term public infrastructure spending in Hong Kong.

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