Daily Briefs

Zhejiang Sanhua Intellignt Controls Co., Ltd. (002050 CH) (ZSIC), a manufacturer of refrigeration and air-conditioning control components, aims to raise around US$1bn 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 IPO pricing.

Wuxi Biologics Placement – Smaller Deal than Previous as Last Didn’t Do Well, Overhang Remain

Wuxi Biologics Holdings is looking to raise up to US$288m by selling about 2% of Wuxi Biologics (2269 HK).
This is the company’s 17th placement since it listed in June 2017.
In this note, we talk about the updates since then and run the deal through our ECM Framework.

Sanhua Intelligent Controls H Share Listing (2050 HK): Valuation Insights

Zhejiang Sanhua Intelligent Controls (2050 HK) has launched its H Share listing at HK$21.21 to HK$22.53 per H Share. Pricing will be on 19 June.
I discussed the H Share listing in Sanhua Intelligent Controls H Share Listing: The Investment Case.
The proposed AH discount of 20.2%-24.9% (based on 12 June A Share price) is attractive and I would participate in the H Share listing.

Shandong Gold Mining Co., Ltd. (600547.SS, 1787.HK) – Scaling Production and Enhancing Margins

By Rahul Jain

EBITDA margin is expected to expand to 19% by FY27, with EPS rising from CNY 0.51 to CNY 1.10, supported by operational efficiencies and a favorable gold price environment.
Shandong Gold aims for 70–80 tonnes of self-mined gold by 2027, with FY25–FY27 revenue projected to reach CNY118.8 billion at $3,400/oz gold price, driven by volume growth & higher prices.
Commodity price volatility, geopolitical risks in international ventures (Argentina, Greece), and state ownership influence pose challenges to margins and shareholder value.

Bloks Group (0325.HK): Six-Month IPO Lock-Up Will Expire In July, Time To Take Profits

By Andrei Zakharov

Bloks Group is one of the top performing stocks in Hong Kong this year, with shares up 186% over the year versus a ~19% gain on the HSI.
Chinese assembly character toy maker priced its offering at HK$60.35 per share in January, top of a range, and raised ~HK$1.8B of the net proceeds.
The offering was 5,000+ times oversubscribed and Bloks Group IPO attracted a surge of retail investors. The company’s six-month IPO lockup will expire on July 9, 2025.

[IO Technicals 2025/24] Downward Momentum Lingers

By Umang Agrawal

The U.S. will impose a 55% tariff on Chinese goods; China responds with 10%, as part of a deal addressing trade and fentanyl concerns.
China’s steelmakers face pressure as EV price wars cut margins. Platts to lower iron ore spec to 61% in 2026, prompting SGX contract adjustments.
Prices hold below key moving averages, reflecting downside momentum, while the MACD staying under its signal line supports the ongoing bearish outlook.

EU Opens Tire Duty Probe Against China, Straining Trade Environs

By Vinod Nedumudy

Investigation covers HS codes 40111000 and 40112010
China criticizes EU protectionism, warns of market impact
EU tire makers to benefit but consumers may feel the pinch

Ping An (2318 HK): Strategic Insights and Top Option Trades

By Gaudenz Schneider

Be inspired by sophisticated, live, multi-leg options strategies on Ping An Insurance (2318 HK), executed over the period from 6 to 12 June on the Hong Kong exchange.
Highlights: Many strategies creatively utilize weekly expiries, sometimes employing options with as little as one or two days to maturity to generate upfront yield or financing.
Why read: Detailed examples and break-down of complex option strategies provide actionable insights that could inspire similar strategies,

Lucror Analytics – Morning Views Asia

By Leonard Law, CFA

US treasuries climbed yesterday, on the back of soft PPI data as well as a solid auction of 30Y notes.
The UST curve bull flattened, with the yield on the 2Y UST declining 4 bps to 3.91%, while that on the 10Y UST was down 6 bps at 4.36%.
Equities rose, with the S&P 500 and Nasdaq up 0.4% and 0.2%, respectively.

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Jun 13

Most Read: KE Holdings , Toyota Industries, MINISO Group Holding , Hino Motors Ltd, Nexon, Zijin Mining Group Co Ltd H, Consun Pharmaceutical, Zhejiang Sanhua Intellignt Controls Co., Ltd., Everest Medicines and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

CSI Hong Kong Connect Internet Index Rebalance: 10 Changes & Big Impact
Toyota Industries (6201 JP): Thoughts on Intrinsic Value
MINISO (9896 HK)’s (Possible) TOP TOY Spin-Off Is Priced In
[Japan M&A] Hino & Mitsubishi-Fuso Truck to Join; Bagholding Ugly for Minorities, and a Re-IPO
More Accurate Context Behind Tencent’s Nexon Moves Reported by Bloomberg
Zijin Mining (2899 HK): Fully Valued Ahead Of (Expected) Gold Unit Spin-Off
UK: Retreating To Trend Again
Quiddity Leaderboard Hang Seng Biotech Sep25: Three Changes Likely + One Intra-Review Change
Zhejiang Sanhua Intelligent Controls (2050 HK): Big Raise Supported by Cornerstones
Everest Medicine Placement: Another Sell-Down by CBC, Some Caution Warranted

CSI Hong Kong Connect Internet Index Rebalance: 10 Changes & Big Impact

By Brian Freitas

There are 5 constituent changes for the CSI Hong Kong Connect Internet Index in June. Plus there are capping changes for some stocks.
A lot of the adds have moved significantly in the last couple of days, so the impact over the next couple of days will be smaller.
There could be opportunities to trade the reversion strategy. Getting borrow may not be easy on some names.

Toyota Industries (6201 JP): Thoughts on Intrinsic Value

Several investors have sharply criticised Toyota Industries (6201 JP)’s preconditional tender offer from Toyota Fudosan. Oasis is pushing for a higher offer.
The offer has several issues that are detrimental to minorities’ interests. The key grievance is that it is below TICO’s intrinsic value.
Due to TICO’s varied business units, SoTP valuation is the most appropriate methodology. My analysis suggests a base case intrinsic value of around JPY19,000.

MINISO (9896 HK)’s (Possible) TOP TOY Spin-Off Is Priced In

Three months ago, local media reported that Chinese lifestyle retailer MINISO Group Holding (9896 HK) was considering spinning off its collectible toy unit TOP TOY on the Hong Kong exchange.
Reportedly, MINISO could raise ~US$300mn from an IPO. MINISO has now confirmed that a spin-off is being contemplated; although a proposal is only at a preliminary stage.
TOP TOY has been a growth engine. But its contribution to the group is still ~6%. Applying a holding company discount, post spin-off, MINISO’s upside appears limited.

[Japan M&A] Hino & Mitsubishi-Fuso Truck to Join; Bagholding Ugly for Minorities, and a Re-IPO

By Travis Lundy

On the 10th of June, Toyota Motor (7203 JP) subsidiary Hino Motors Ltd (7205 JP) and Mitsubishi-Fuso Truck & Bus Company announced their long-awaited integration plans. We have a deal.
An agreement was signed in 2023, but Hino got in big trouble for falsifying testing data on gasoline engine emissions/efficiency. Hino took a hit in 2023, then 2025. Talks advanced.
The deal announced suggests Toyota has thrown itself and Hino minorities under the proverbial Fuso bus. It’s VERY odd. But… it deserves a look because 2026 will see a re-IPO.

More Accurate Context Behind Tencent’s Nexon Moves Reported by Bloomberg

By Sanghyun Park

Government aims to sell 30.6% NXC stake by 2027 for ₩4T tax revenue, offering NXC a buyback or selling with management control to attract bidders.
The family won’t buy back the 30.6% stake but may allow partial management rights, with Tencent eyeing that stake—not a full $15B Nexon buyout as Bloomberg suggested.
Tencent’s targeting that stake chunk only, no control shift, so no mandatory tender offer triggered—at least for now.

Zijin Mining (2899 HK): Fully Valued Ahead Of (Expected) Gold Unit Spin-Off

Back on the 30th April 2025, Zijin Mining (2899 HK) said it planned to spin off its overseas gold mine assets on the Hong Kong exchange.
The newly created unit, Zijin Gold International, owns/operates mines in South America, Central Asia, Africa and Oceania, including the Buritica project in Colombia, the nation’s largest gold mine.
A Circular is now out concerning the spin-off, which is not subject to shareholder approval. Pegged to peers, Zijin appears fully valued.

UK: Retreating To Trend Again

By Phil Rush

Residual seasonality shocked the consensus again, this time on the downside, as the spurious surge is replaced with stagnation for the rest of the year in our view.
The 0.3% m-o-m decline dragged GDP back toward its trend, wiping out the highly supportive statistical carryover effect for Q2, which we now forecast at 0.1% q-o-q.
BoE forecasts are on track, allowing the MPC’s bias to slow easing to materialise with a pause. We expect cuts to keep being rolled later, with no more delivered in this cycle.

Quiddity Leaderboard Hang Seng Biotech Sep25: Three Changes Likely + One Intra-Review Change

The Hang Seng Biotech index (HSHKBIO) represents the 50 largest biotech companies listed in Hong Kong (HKEX).
In this insight, we take a look at the potential index changes and the resultant capping flows for the HSHKBIO index rebal event in September 2025.
Based on the latest data, we see three ADDs and three DELs.

Zhejiang Sanhua Intelligent Controls (2050 HK): Big Raise Supported by Cornerstones

By Brian Freitas

Zhejiang Sanhua Intellignt Controls Co. (002050 CH)‘s global offering opens today and the raise could reach up to US$1.4bn if the offer-size adjustment option and the overallotment option are exercised.
There is a large allocation to cornerstone investors. The discount of around 22.7% to the A-shares is attractive given the recent trend for Midea (300 HK) and CATL (3750 HK).
The H-shares should be added to Southbound Stock Connect in July, to the HSCI in September, and to a global index in December.

Everest Medicine Placement: Another Sell-Down by CBC, Some Caution Warranted

Everest Medicines (1952 HK) aims to raise around US$150m in a secondary sell-down of shares conducted by CBC Group.
This comes on the heels of a similar secondary sell down in Jan 2025, whereby CBC sold ~US$100m worth of stock, priced at a 10% discount.
In this note, we comment on the deal dynamics and run the deal through our ECM framework.

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Jun 13

Daily Brief Thematic (Sector/Industry): Ohayo Japan | Oracle Rallies on AI Demand and more

By Smartkarma Daily Briefs | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

Ohayo Japan | Oracle Rallies on AI Demand
Quick Note: 1M HIBOR Decline by 300bps – Implications for Hong Kong Real Estate
The Stocks to Own in ASEAN – Vol. 51
The Stocks to Own in Asia – Vol. 49
Japan Morning Connection: Air India Crash Sends Boing Lower, AMD’s AI Event Fails to Impress

Ohayo Japan | Oracle Rallies on AI Demand

By Mark Chadwick

The S&P 500 gained 0.38% to 6,045, sitting less than 2% from its record high
Oracle surged 13% after beating earnings expectations and forecasting cloud infrastructure revenue growth exceeding 70% in fiscal 2026, driven by AI demand
3D Investment Partners, a Singapore-based activist fund, increased its Square Enix stake to 9.79%

Quick Note: 1M HIBOR Decline by 300bps – Implications for Hong Kong Real Estate

By Jacob Cheng

1M HIBOR has declined by 300bps to 0.6%, which is a sharp decline. Mortgage rate, which is tied to HIBOR, will have to be adjusted downward
Mortgage rate declines, affordability will improve, and there is positive carry. Developers will enjoy lower borrow cost and better earnings. 100bps change in rates leads to 2% earnings impact
However, the HIBOR decline can reverse, if capital flow changes and affects HKMA’s aggregate balance. US/China interest rate movements and geo-political risks also have to be monitored closely

The Stocks to Own in ASEAN – Vol. 51

By Dr. Andrew Stotz, CFA

We highlight 14 stocks in ASEAN that look interesting to us based on our FVMR Methodology
Portfolio changes: Five stocks remain, nine stocks added into portfolio
Since its inception, the portfolio has generated a before-fee total return of 264% versus MSCI ASEAN’s 46%

The Stocks to Own in Asia – Vol. 49

By Dr. Andrew Stotz, CFA

We highlight 14 stocks in Asia that look interesting to us based on our FVMR methodology
Portfolio changes: All fourteen stocks have changed in the portfolio
Since its inception, it has generated a before-fee total return of 262% versus the MSCI Asia ex Japan of 110%

Japan Morning Connection: Air India Crash Sends Boing Lower, AMD’s AI Event Fails to Impress

By Andrew Jackson

Oracle’s good numbers pulling AI and DC related names up, while Samsung failing its NVDA HBM certification (again) positive for Micron.
Tencent is back at the table looking to bid for Nexon, whose outstanding short interest could see a rapid squeeze.
All the good news out for Konami? Looks like it after their even last night with further upside catalysts lacking.

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Jun 13

Daily Brief ECM: Everest Medicine Placement: Another Sell-Down by CBC and more

By Smartkarma Daily Briefs | Daily Briefs, ECM

In today’s briefing:

Everest Medicine Placement: Another Sell-Down by CBC, Some Caution Warranted
CaoCao IPO: The Bull Case
Eternal Beauty Pre-IPO – PHIP Updates – Perfumes Growing, Challenges Remain
Sai Life Sciences IPO Lockup – US$840m Lockup Release; TPG Asia up 5.8x with a 24.8% Stake
Dalrymple Bay Infra Placement – Good Track Record but Might Be Too Chunky
Liuliu Orchard Group Co Ltd Pre-IPO – Category Leader Scaling Direct Channels in Fragmented Market
Oswal Pumps IPO – RHP Updates & Thoughts on Peer Comp and Valuation
Chime Financial, Inc. (CHYM): Rips 59% at Open, IPO Dips the Rest of the Day
Cao Cao Pre-IPO: Accelerating GTV but Still Bleeding and Leveraged

Everest Medicine Placement: Another Sell-Down by CBC, Some Caution Warranted

Everest Medicines (1952 HK) aims to raise around US$150m in a secondary sell-down of shares conducted by CBC Group.
This comes on the heels of a similar secondary sell down in Jan 2025, whereby CBC sold ~US$100m worth of stock, priced at a 10% discount.
In this note, we comment on the deal dynamics and run the deal through our ECM framework.

CaoCao IPO: The Bull Case

CaoCao Inc (1646553D CH) is the second-largest ride-hailing player in China. It has filed its PHIP to raise US$200-300 million.
CaoCao was incubated by Geely Auto (175 HK). Geely founder Li Shufu owns 83.9% of CaoCao.
The bull case rests on accelerating GTV growth, the improving fundamentals of the core business, reducing losses and shifting to cash generation.

Eternal Beauty Pre-IPO – PHIP Updates – Perfumes Growing, Challenges Remain

Eternal Beauty Holdings (EB) is looking to raise around US$150m in its upcoming 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 PHIP updates.

Sai Life Sciences IPO Lockup – US$840m Lockup Release; TPG Asia up 5.8x with a 24.8% Stake

By Akshat Shah

SAI Life Sciences (SAILS12 IN) raised around US$360m in its India IPO in Dec 2024. The lockup on its pre-IPO investors is set to expire soon.
Sai Life Sciences is a contract research, development and manufacturing organisation providing end-to-end services across drug discovery, development and manufacturing value-chain, for small to global pharmaceutical innovators and biotechnology firms.
In this note, we will talk about the lockup dynamics and possible placement.

Dalrymple Bay Infra Placement – Good Track Record but Might Be Too Chunky

Brookfield Asset Management Lt (BAM US) aims to raise around US$278m via selling 23.3% of Dalrymple Bay Infrastructure L (DBI AU).
The shares have performed well over the last year or so, with the company having delivered consistent DPU growth.
In this note we talk about the deal dynamics and run the deal through our ECM framework.

Liuliu Orchard Group Co Ltd Pre-IPO – Category Leader Scaling Direct Channels in Fragmented Market

By Troy Wong

Liuliu Orchard Group Co Ltd (LOGCL) is planning to raise about US$100m in its upcoming Hong Kong IPO.
LOGCL is China’s leading plum-based snack player, benefiting from strong consumer demand, brand leadership, and favorable health trends.
Despite operating in a fragmented market, LOGCL has consistently grown revenue through successful offline expansion, increased direct sales penetration, and effective cost control even amid raw material cost pressures.

Oswal Pumps IPO – RHP Updates & Thoughts on Peer Comp and Valuation

By Akshat Shah

Oswal Pumps (1019841D IN) is looking to raise about US$162m in its upcoming India IPO. The deal has been downsized from an earlier size of around US$250m.
Oswal Pumps Ltd (OPL) specializes in the manufacturing of solar-powered and conventional pumps, electric motors, and related components for agricultural, residential, and industrial applications.
We have looked at the company’s past performance in our previous notes. In this note, we will talk about the RHP updates and IPO valuations.

Chime Financial, Inc. (CHYM): Rips 59% at Open, IPO Dips the Rest of the Day

By IPO Boutique

Chime Financial, Inc. (CHYM) priced a full-size deal of 32.0mm shares at $27.00 ($1 Above the $24-$26 range) and opened at $43.00 for a gain of 59.2% at first trade.
The debut is a major win for IPO investors but a disappointment for aftermarket traders as the stock closed nearly six points below the open.
Chime’s order book finished north of 20-times oversubscribed with the top ten accounts taking 60% of the deal and the top 20 being allocated 85% of the transaction.

Cao Cao Pre-IPO: Accelerating GTV but Still Bleeding and Leveraged

CaoCao Inc (1646553D CH) is looking to raise up to $US300m 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 provide updates on the firm’s past performance.

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Jun 13

Daily Brief Australia: Dalrymple Bay Infrastructure L, Jupiter Mines and more

By Smartkarma Daily Briefs | Australia, Daily Briefs

In today’s briefing:

Dalrymple Bay Infra Placement – Good Track Record but Might Be Too Chunky
Exxaro’s Strategic Moves: Potential Full Buyout of Jupiter Mines Following JV Acquisition in Manganese Sector

Dalrymple Bay Infra Placement – Good Track Record but Might Be Too Chunky

By Special Situation Investments

Brookfield Asset Management Lt (BAM US) aims to raise around US$278m via selling 23.3% of Dalrymple Bay Infrastructure L (DBI AU).
The shares have performed well over the last year or so, with the company having delivered consistent DPU growth.
In this note we talk about the deal dynamics and run the deal through our ECM framework.

Exxaro’s Strategic Moves: Potential Full Buyout of Jupiter Mines Following JV Acquisition in Manganese Sector

Jupiter Mines’ valuation is implied at A$0.315/share, a 60% premium to current trading levels, following a JV sale.
Exxaro Resources acquired a 20% stake in Jupiter Mines at A$0.315/share, indicating interest in further consolidation.
The Tshipi Borwa mine, a Tier 1 asset, contributes ~6% to global manganese supply, primarily for steel production.

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Jun 13

Daily Brief Credit: Lucror Analytics – Morning Views Asia and more

By Smartkarma Daily Briefs | Credit, Daily Briefs

In today’s briefing:

Lucror Analytics – Morning Views Asia

Lucror Analytics – Morning Views Asia

By Trung Nguyen

US treasury yields declined yesterday, led by the short end, given softer than expected CPI data and a solid auction for the 10Y notes.
The UST curve bull-steepened, with the yield on the 2Y UST down 7 bps at 3.95%, while the yield on the 10Y UST fell 5 bps to 4.42%.
Equities halted a three-day advance, albeit remaining near record-high levels.

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Jun 13

Daily Brief Crypto: Sui (SUI): High Valuation and more

By Smartkarma Daily Briefs | Crypto, Daily Briefs

In today’s briefing:

Sui (SUI): High Valuation, Early‑Stage Adoption

Sui (SUI): High Valuation, Early‑Stage Adoption

By Tatja Karkkainen

Sui commands an ~US$11 bn market cap (FDV US$34 bn) barely two years after launch, yet real‑world usage is still embryonic.
Claimed throughput of 297 k TPS contrasts with currently observed ~48 TPS (peak 335).
A restrictive validator set, modest staking yields, looming token unlocks, and limited developer traction undermine the decentralisation and growth narrative.

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Jun 13

Daily Brief China: Zijin Mining Group Co Ltd H, Consun Pharmaceutical, Geely Auto, Zhejiang Sanhua Intellignt Controls Co., Ltd., Everest Medicines, Netdragon Websoft, CaoCao Inc, Chow Tai Fook Jewellery, Eternal Beauty Holdings Limited, Shandong Fengxiang and more

By Smartkarma Daily Briefs | China, Daily Briefs

In today’s briefing:

Zijin Mining (2899 HK): Fully Valued Ahead Of (Expected) Gold Unit Spin-Off
Quiddity Leaderboard Hang Seng Biotech Sep25: Three Changes Likely + One Intra-Review Change
Quiddity Leaderboard HSTECH Sep25: 1 Low-Conviction Change + 1 FAF Revision; US$1.3bn One-Way
Zhejiang Sanhua Intelligent Controls (2050 HK): Big Raise Supported by Cornerstones
Everest Medicine Placement: Another Sell-Down by CBC, Some Caution Warranted
Quiddity Leaderboard HSIII Sep25: Some Changes to Expectations; Trade Idea Successful
CaoCao IPO: The Bull Case
Chow Tai Fook (1929 HK): A Decent Rebound
Eternal Beauty Pre-IPO – PHIP Updates – Perfumes Growing, Challenges Remain
Fengxiang (9977 HK): PAG Invites Dissent After Scrapping Scrip Alternative

Zijin Mining (2899 HK): Fully Valued Ahead Of (Expected) Gold Unit Spin-Off

Back on the 30th April 2025, Zijin Mining (2899 HK) said it planned to spin off its overseas gold mine assets on the Hong Kong exchange.
The newly created unit, Zijin Gold International, owns/operates mines in South America, Central Asia, Africa and Oceania, including the Buritica project in Colombia, the nation’s largest gold mine.
A Circular is now out concerning the spin-off, which is not subject to shareholder approval. Pegged to peers, Zijin appears fully valued.

Quiddity Leaderboard Hang Seng Biotech Sep25: Three Changes Likely + One Intra-Review Change

The Hang Seng Biotech index (HSHKBIO) represents the 50 largest biotech companies listed in Hong Kong (HKEX).
In this insight, we take a look at the potential index changes and the resultant capping flows for the HSHKBIO index rebal event in September 2025.
Based on the latest data, we see three ADDs and three DELs.

Quiddity Leaderboard HSTECH Sep25: 1 Low-Conviction Change + 1 FAF Revision; US$1.3bn One-Way

The HSTECH Index tracks the performance of the top 30 technology companies listed in Hong Kong that have high business exposure to certain technology themes.
In this insight, we take a look at the potential index changes and the resultant capping flows for HSTECH index rebal event in September 2025.
We see one low-conviction ADD/DEL and one significant float percentage revision which could collectively trigger roughly US$1.3bn in one-way index flows in September 2025.

Zhejiang Sanhua Intelligent Controls (2050 HK): Big Raise Supported by Cornerstones

By Brian Freitas

Zhejiang Sanhua Intellignt Controls Co. (002050 CH)‘s global offering opens today and the raise could reach up to US$1.4bn if the offer-size adjustment option and the overallotment option are exercised.
There is a large allocation to cornerstone investors. The discount of around 22.7% to the A-shares is attractive given the recent trend for Midea (300 HK) and CATL (3750 HK).
The H-shares should be added to Southbound Stock Connect in July, to the HSCI in September, and to a global index in December.

Everest Medicine Placement: Another Sell-Down by CBC, Some Caution Warranted

Everest Medicines (1952 HK) aims to raise around US$150m in a secondary sell-down of shares conducted by CBC Group.
This comes on the heels of a similar secondary sell down in Jan 2025, whereby CBC sold ~US$100m worth of stock, priced at a 10% discount.
In this note, we comment on the deal dynamics and run the deal through our ECM framework.

Quiddity Leaderboard HSIII Sep25: Some Changes to Expectations; Trade Idea Successful

The Hang Seng Internet & IT (HSIII) index represents the top 30 stocks related to internet and information technology businesses listed in Hong Kong (HKEX).
In this insight, we take a look at potential index changes and capping flows for HSIII index rebal event in September 2025.
Based on the latest data, we see three ADDs and three DELs and one significant float percentage revision.

CaoCao IPO: The Bull Case

CaoCao Inc (1646553D CH) is the second-largest ride-hailing player in China. It has filed its PHIP to raise US$200-300 million.
CaoCao was incubated by Geely Auto (175 HK). Geely founder Li Shufu owns 83.9% of CaoCao.
The bull case rests on accelerating GTV growth, the improving fundamentals of the core business, reducing losses and shifting to cash generation.

Chow Tai Fook (1929 HK): A Decent Rebound

By Osbert Tang, CFA

While Chow Tai Fook Jewellery (1929 HK) has a stellar share price performance YTD, it still lags the HSI since 2023. The solid 2H FY25 result should support further upside.
SSS growth has recovered sharply in Apr-May 2025 (the first two months of 1Q FY26), and CTF should reap further benefits from cost management and product transformation.
FY26F ROE may reach 27.2%. While its current yield is only 4.6%, it is possible to declare special dividend this year, easily pushing it to over 10%.

Eternal Beauty Pre-IPO – PHIP Updates – Perfumes Growing, Challenges Remain

Eternal Beauty Holdings (EB) is looking to raise around US$150m in its upcoming 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 PHIP updates.

Fengxiang (9977 HK): PAG Invites Dissent After Scrapping Scrip Alternative