In today’s briefing:
- 3SBio (1530 HK)’s Spin-Off and Listing of Mandi Inc.
- Health & Happiness: On Deleveraging Path
- As Simandou Opens the Floodgates, Rio Tinto Finds a New Edge in the Premium Ore Race
- Lucror Analytics – Morning Views Asia
3SBio (1530 HK)’s Spin-Off and Listing of Mandi Inc.
- Pharma-Play 3SBio Inc (1530 HK) has announced the spin-off and listing of 87.16%-held Mandi (MANDI HK) on the HKEx.
- 3SBio will distribute its stake in-specie. There will be a concurrent global offering, the details of which are still to be fleshed out.
- Mandi (MANDI HK), a ” hair loss and weight management treatments” solutions provider, accounted for 17% of 3SBio’s revs in the 1H25, and 12.5% of profit.
Health & Happiness: On Deleveraging Path
- We initiate our coverage on Health and Happiness International Holding Limited (H&H)’s BTSDF 9.125% 24Jul2028.
- H&H has refinanced USD320m of 2026 notes with the new USD300m of 2028 notes at a 9.125% coupon. The new bonds help extend its debt maturity and lower financing cost.
- The bonds offer diversification and a chance to invest back in China after the fallout in the property sector. We assign an OVERWEIGHT recommendation.
As Simandou Opens the Floodgates, Rio Tinto Finds a New Edge in the Premium Ore Race
- Simandou’s planned 120 Mt annual output could supply about 6% of global seaborne ore by 2030, pressuring Australia and Brazil and shifting premium-grade pricing.
- Despite Guinea’s push to diversify buyers, roughly three-quarters of Simandou’s ownership ties back to China, making most tonnage effectively committed to Chinese mills.
- Weak Chinese steel margins and a 12% YoY drop in October output limit near-term uptake, but long-term decarbonisation trends support stronger demand for high-grade feedstock.
Lucror Analytics – Morning Views Asia
- UST yields fell meaningfully yesterday, with the curve bull steepening as market expectations for Fed rate cuts climbed.
- This followed an uptick in the September unemployment rate, despite payrolls data coming in above estimates.
- The yield on the 2Y UST decreased 6 bps to 3.53%, while that on the 10Y UST declined 5 bps to 4.09%.
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