In today’s briefing:
- Dongfeng Motor (489 HK): DFM’s Attractive Privatisation Offer
- Hang Seng Internet & IT Index (HSIII) Rebalance: 3 Changes; Big FAF Increase for Horizon Robotics
- Volatility Cones: Opportunities Across 8 Hong Kong Stocks
- HSCEI Index Rebalance: Pop Mart Pops Ahead of Double Index Inclusion
- China Healthcare Weekly (Aug.24)-JD Health 25H1 Results, Hansoh Placement, Ascletis Pharma Placement
- BeOne Medicines: Initiation of Coverage- 20 expected R&D milestones In The Next 18 Months Signalling A Massive Upside? – Major Drivers
- Monthly Container Shipping Tracker | Rates, Earnings, Cash Flow All Collapsing (August 2025)
- Saint Bella: H1’25 Earnings Review – Clear Visibility on Strong Growth and Improving Profitability
Dongfeng Motor (489 HK): DFM’s Attractive Privatisation Offer
- Dongfeng Motor (489 HK) disclosed a pre-conditional privatisation by merger by absorption by Dongfeng Motor Corporation, along with a proposed distribution and listing of VOYAH shares.
- The offer comprises HK$6.68 + 0.3552608 VOYAH H Shares per H Share, which is valued at HK$10.85 per H Share, a 81.7% premium to the last close price.
- The vote is low risk as the offer is attractive. It values the remaining business at a premium multiple, and the appraised value of HK$11.735 per VOYAH share is conservative.
Hang Seng Internet & IT Index (HSIII) Rebalance: 3 Changes; Big FAF Increase for Horizon Robotics
- There will be 3 changes for the Hang Seng Internet & Information Technology Index (HSIII Index) at the September rebalance.
- Estimated one-way turnover at the rebalance is 10.3% resulting in a round-trip trade of HK$6.4bn (US$818m). There are a bunch of stocks with over 0.5x ADV to trade.
- There is a huge FAF increase for Horizon Robotics and that will bring passive buying from the HSTECH trackers too. The stock is being added to a global index on Tuesday.
Volatility Cones: Opportunities Across 8 Hong Kong Stocks
- Context: Volatility cones chart implied volatility against historical percentiles across the term structure, providing a clear framework to evaluate whether options are trading cheap or rich.
- Highlight: Several high-profile HK stocks currently show historically cheap implied volatility. With some of them trading near 52-week highs, now may be an opportune time to hedge.
- Why Read: Spot opportunities, assess regime shifts, and manage risk effectively — volatility cones turn complex data into actionable insights for traders and investors.
HSCEI Index Rebalance: Pop Mart Pops Ahead of Double Index Inclusion
- As forecast, Pop Mart (9992 HK) will replace J&T Global Express (1519 HK) in the Hang Seng China Enterprises Index (HSCEI INDEX) at the close on 5 September.
- Estimated one-way turnover at the rebalance is 3% resulting in a round-trip trade of HK$4.8bn (US$612m). The final capping will use the close of trading on 2 September.
- Pop Mart is also being added to the Hang Seng Index (HSI INDEX) and that marks the end of inclusion in major indices for the stock.
China Healthcare Weekly (Aug.24)-JD Health 25H1 Results, Hansoh Placement, Ascletis Pharma Placement
- The 25H1 results of JD Health beat expectations. Due to the strong financial position/positive growth outlook, reasonable valuation of JD Health is P/S of 3 to 4x.
- Ascletis announced Share Placing.If ASC30’s Phase IIa data remain excellent, potential BD/licensing deal would drive valuation to HK$25bn. However, if clinical data is disappointing, valuation may fall below HK$12 billion.
- Reasonable valuation of Hansoh is about RMB108-111 billion. So, the Placing Price of HK$36.30 per Placing Share is expensive. We think the valuation of Hansoh should be lower than BeiGene.
BeOne Medicines: Initiation of Coverage- 20 expected R&D milestones In The Next 18 Months Signalling A Massive Upside? – Major Drivers
- BeOne Medicines recently announced its financial results for the second quarter of fiscal year 2025.
- The company reported significant financial and strategic progress, reinforcing its position in the market.
- Breaking down the results, BeOne’s revenue reached $1.3 billion, reflecting a robust 42% year-over-year growth.
Monthly Container Shipping Tracker | Rates, Earnings, Cash Flow All Collapsing (August 2025)
- Our proprietary index shows price momentum has continued to weaken in Q3
- Some carriers have tightened FY25 earnings ranges, but mood mostly downbeat
- We remain -ive on the sector; stay SHORT ZIM against LONG CM PORTS pair
Saint Bella: H1’25 Earnings Review – Clear Visibility on Strong Growth and Improving Profitability
- Saint Bella, a leading family care group in Asia, announced first interim results for the six months ended 30 June 2025 as a public company.
- Premium postpartum care service provider successfully completed an initial public offering in Hong Kong at HK$6.58 per share, raising ~HK$709m of net proceeds.
- I was impressed with 40%+ YoY revenue growth in the home care services business segment, gross profit margin expansion across the board and net profit of ~RMB327m.
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