In today’s briefing:
- Dongfeng (489 HK): Revisiting VOYAH’s Spin-Off Valuation
- ANE (9956 HK): Tempting Fate Through an Unchanged Share Alternative Cap?
- Shenzhen Mindray Bio-Medical A/H Listing-Strong Track Record but Has Been Suffering Lately
- Tuhu Car (9690 HK | BUY | TP:HKD23): Tuhu Goes International, the Next Engine of Growth
- 2026 High Conviction Idea – FUTU US – 3Q25 Beat and Bottom-Of-Range Valuation Creates Strong Upside
- Guangdong Tianyu IPO Trading: Weak Insti and Retail Demand
Dongfeng (489 HK): Revisiting VOYAH’s Spin-Off Valuation
- Back on the 22nd August 2025, SOE-backed Dongfeng Motor (489 HK) announced a privatisation; together with a concurrent listing of its EV arm, VOYAH. The two proposals are interconditional.
- In its October application proof, VOYAH turned a profit in 7M25. The market was implying a price-to-trailing-sales of 1.5x for VOYAH, versus the basket average of 2.1x. It’s now ~1.2x.
- Key PRC reg approvals (Mofcom/NDRC/SAFE) remain outstanding. Meanwhile, a basket of peers are down 21% since the dual proposals were announced. And their average price-to-trailing-sales are down to 1.7x.
ANE (9956 HK): Tempting Fate Through an Unchanged Share Alternative Cap?
- The consortium has decided NOT to exercise its right to increase the ANE Cayman Inc (9956 HK) share alternative cap from 5.00% to 7.50% of outstanding shares.
- The positive read-across is that it signals the consortium’s confidence that the vote will pass, as reflected in the quick decision not to lift the cap (deadline was 12 December).
- The negative readacross is that shareholders requesting the scrip option likely exceeded the 7.5% upper threshold, and the consortium is hoping that these shareholders will instead take the mix option.
Shenzhen Mindray Bio-Medical A/H Listing-Strong Track Record but Has Been Suffering Lately
- Shenzhen Mindray Bio-Medical Electronics (300760 CH) (SMBE), a provider of medical devices, is looking to raise about US$2bn in its upcoming H-share IPO
- SMBE is a diversified global medical device enterprise with its products spanning In Vitro Diagnostics (IVD), patient monitoring and life support, medical imaging, along with an emerging business portfolio.
- In this note, we look at its past performance and other deal dynamics that might impact the listing.
Tuhu Car (9690 HK | BUY | TP:HKD23): Tuhu Goes International, the Next Engine of Growth
- Tuhu sets up operations in Malaysia, its first overseas expansion outside of Greater China.
- We think Tuhu can dominate the market within 3-4 years, as there are no local establishments that can match its infrastructure, know-how, and capital base.
- Fair value of HKD23 implies 22x FY26 PE – average for US peers. A bargain with 3-year CAGR of 30%, net cash, and churns high free cash flow.
2026 High Conviction Idea – FUTU US – 3Q25 Beat and Bottom-Of-Range Valuation Creates Strong Upside
- FUTU’s risk-reward is asymmetric: Structurally low valuation, active consensus upgrades and a near-term catalyst (HK crypto VATP license), which can boost further upgrades (2026e) sets up a compelling long entry.
- HK-VATP enables FUTU to expand its crypto related revenues, product offerings and margins, and remove third-party dependency. With crypto <2% assets, this new earnings leg is entirely absent from consensus.
- FUTU’s pullback to ~15.6x FY2 P/E puts it at the bottom of a ~15x-25x – reasonable valuation band. With upgrades and catalysts ahead, it stands as a strong rerating candidate.
Guangdong Tianyu IPO Trading: Weak Insti and Retail Demand
- Guangdong Tianyu Semiconductor (2223725D CH) raised around US$224m in its HK IPO.
- It was founded in 2009, and is the largest domestic PRC SiC epitaxal wafer manufacturer both in terms of revenue and sales volume, as of 2024.
- We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.
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