In today’s briefing:
- STAR50/STAR100 Index Rebalance Preview: Central Huijin’s ETF Creations Skew Performance
- Duality Biotherapeutics (映恩生物) IPO: Valuation Upside at Risk
- Jiangsu Zenergy Battery Tech IPO: Forecasts and Valuation
- Beijing Yunji Technology Ltd Pre-IPO Tearsheet
- Lucror Analytics – Morning Views Asia
- Mixue Group (2097 HK) – Updates on Valuation Outlook and Growth Forecast Based on 2024 Results
STAR50/STAR100 Index Rebalance Preview: Central Huijin’s ETF Creations Skew Performance
- Nearing the end of the review period, we forecast 1 change for the SSE STAR50 (STAR50 INDEX) and 4 changes for the STAR100 Index in June.
- We estimate turnover of 1.9% for the SSE STAR50 (STAR50 INDEX) and 4.5% for the STAR100 Index. The estimated round-trip trade is CNY 7.5bn (US$1.02bn).
- Large ETF inflows could have led to the recent underperformance of a long add/ short delete trade. That could reverse once markets stabilize or when the passives trade the rebalance.
Duality Biotherapeutics (映恩生物) IPO: Valuation Upside at Risk
- Duality, a China-based clinical-stage biotechnology company, launched its IPO to raise up to US$200m via a Hong Kong listing.
- We look at the deal dynamics and latest developments in the biotech sector.
- The deal initially presented upside for investors but there’s a portion of its valuation now at risk due to the latest development.
Jiangsu Zenergy Battery Tech IPO: Forecasts and Valuation
- Jiangsu Zenergy Battery Technologies (JSZENERGY CH) has announced the terms for its IPO. The company plans to issue 121.5m shares at HK$8.27 per share, raising HK$1.0bn (US$130m).
- The company’s earnings have seen strong growth during the last 3-4 years driven by its LFP battery products and fall in lithium carbonate prices have helped turn around profitability.
- However, our analysis on the company’s valuation shows that JZBT’s IPO is expensive and with the ongoing geopolitical tensions, we would remain on the sidelines.
Beijing Yunji Technology Ltd Pre-IPO Tearsheet
- Beijing Yunji Technology Ltd (1860671D CH) (BYTL) is planning to raise about US$100m through its upcoming Hong Kong IPO. The lead bookrunners for the deal are Citic, CBB International.
- BYTL provides hospitality robotic AI agents, using advanced robotics and AI to enhance customer experiences. Its solutions include physical-interaction robots and AI-driven digitalization systems for streamlined decision-making and operational efficiency.
- According to the F&S Report, BYTL ranked first globally in 2024 among robotic AI agent companies with multi-layer adaptable robots, leading in concurrent robot operations and total consumers served.
Lucror Analytics – Morning Views Asia
- In today’s Morning Views publication we comment on developments of the following high yield issuers: Yuexiu Property, Tata Motors, Softbank Group
- US President Donald Trump wrote on Truth Social that Washington will impose an additional 50% tariff on China effective April 9th, if Beijing does not back down from its 34% retaliatory tariffs.
- Mr Trump’s post also stated that the US will terminate all talks with China, while commencing negotiations with other countries. Separately, the President told reporters at the White House that he was not looking at a pause on tariffs, but added that “many countries” were seeking negotiations and there would be fair deals in certain cases.
Mixue Group (2097 HK) – Updates on Valuation Outlook and Growth Forecast Based on 2024 Results
- Revenue growth of MIXUE in 2024 was the lowest in recent three year but is still higher than competitors.Together with higher profit margin, MIXUE’s valuation should be higher than peers.
- Based on 2024 results, we adjusted our forecast for the next three years. Declining performance growth is inevitable, but successful internationalization helps reassure its high growth outlook in the future
- Due to concerns, investors need to pay attention to the performance verification.If 2025H1 net profit growth is significantly lower than 30% YoY, investors should be alert to a potential correction.
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