In today’s briefing:
- Dongfeng (489 HK): On VOYAH’s Updated Financials
- Zijin Gold (2259 HK): 100% Surge Since IPO. What Gold Price Is Priced In Now?
- PDD Holdings’ Global Expansion Efforts Paying Off? How It Plans to Win the Supply Chain Race!
- Milian Technology IPO Preview: Driving Profitable Expansion Through Yidui and Tietie Apps
- Xuanzhu Biopharm (轩竹生物科技) IPO: Spin off at a Premium
- Tencent Music: Is Its Partnership With Geely & Xiaomi the Future of In-Car Entertainment?
- Tactical Alert: Undervalued Stocks Poised to Rally This Week
- Pre-IPO Tong Ren Tang Healthcare Investment (PHIP Updates) – Some Points Worth the Attention
- UMP Healthcare (722 HK): Cash At 80% Of Market Capitalization, 7% Dividend Yield A Tad Low
Dongfeng (489 HK): On VOYAH’s Updated Financials
- On the 22nd August 2025, SOE-backed Dongfeng Motor (489 HK) announced a privatisation; together with a concurrent listing of its EV arm, VOYAH.
- Dongfeng has now released the application proof for VOYAH, with finances through to July 2025. Of interest, VOYAH is in the black for 7M25.
- The market is implying a price-to-trailing-sales of 1.5x for VOYAH versus the basket average of 2.1x.
Zijin Gold (2259 HK): 100% Surge Since IPO. What Gold Price Is Priced In Now?
- Zijin Gold (2259 HK) , post the meteoric rise in its share price since listing last week, is now the most expensive gold miner stocks, globally, on an EV/Reserve basis.
- Investor expectations of gold prices climbing higher, driven by the yen’s sharp drop, a U.S. government shutdown, and growing anticipation of additional Federal Reserve rate cuts, are fueling the stock.
- For Hong Kong investors, Zijin Gold is the only pure-play, globally diversified gold miner, with expectations of index inclusion and strong demand driving its share price above fundamentals.
PDD Holdings’ Global Expansion Efforts Paying Off? How It Plans to Win the Supply Chain Race!
- PDD Holdings, Inc.’s second-quarter 2025 financial results reflect a strategic focus on long-term value creation rather than short-term financial gains.
- The company’s revenue for the quarter increased by 7% year-over-year to RMB 104 billion, driven primarily by online marketing services and transaction services.
- However, operating profit experienced a significant decline of 21% year-over-year, reflecting the company’s substantial investments in enhancing its platform ecosystem through its RMB 100 billion support program aimed at bolstering merchant capabilities and fostering sustainable growth.
Milian Technology IPO Preview: Driving Profitable Expansion Through Yidui and Tietie Apps
- Milian Technology, a fast-growing marriage and dating platform in China, filed for an IPO in Hong Kong. The company has achieved significant traction with now ~10M avg. MAUs.
- Milian Technology has raised ~US$77M in equity financing to date from investors, including Xiaomi, XVC Fund, Shunwei Capital, and Sky9 Capital, among others.
- I believe Milian Technology’s growth is exceptionally high for any online social networking platform company in China at such scale.
Xuanzhu Biopharm (轩竹生物科技) IPO: Spin off at a Premium
- Xuanzhu, a China-based commercial stage biopharm, launched its IPO to raise at least USD 100 million via a Hong Kong listing.
- In our previous note, we have examined the company’s core product, including XBP-3571, XZP-3287, and XZP-3621, and its management team and investor backing.
- In this note, we look at the deal term. We think the valuation is demanding and lacks institutional interest.
Tencent Music: Is Its Partnership With Geely & Xiaomi the Future of In-Car Entertainment?
- Tencent Music Entertainment Group’s second quarter of 2025 demonstrates a blend of growth across its diversified service portfolio, delivering a robust financial performance and showcasing strategic advancements in both content and platform services.
- Positively, the group’s revenue reached a record high of RMB 8.4 billion, representing an 18% year-over-year increase.
- This growth was primarily fueled by its online music services, which saw a notable 26% year-on-year revenue increase, reaching RMB 6.9 billion.
Tactical Alert: Undervalued Stocks Poised to Rally This Week
- China Mobile (941 HK) and Meta (META US) are both oversold according to our quantitative tactical models.
- We have been discussing China Mobile (941 HK) before, in early September, we said the pattern was bearish (“brief rally then down again”) , but now this has changed.
- Meta (META US) is a different story, looks like a bearish pattern but it is very oversold, it could rally 2 weeks before going lower.
Pre-IPO Tong Ren Tang Healthcare Investment (PHIP Updates) – Some Points Worth the Attention
- Tong Ren Tang’s performance growth is mainly driven by M&As, or “purchase revenue externally” to expand scale. As the pace of acquisition/integration slows down, overall growth will also decline accordingly.
- Although Tong Ren Tang has turned losses into profits, the Company is still in expansion period and profits are unstable.So, we think it’s more appropriate to use P/S for valuation.
- Tong Ren Tang is inferior to Gushengtang in terms of profitability and capital operation model for expansion. So, Tong Ren Tang’s valuation should be lower than Gushengtang and industry average.
UMP Healthcare (722 HK): Cash At 80% Of Market Capitalization, 7% Dividend Yield A Tad Low
- UMP Healthcare (722 HK) reported soft results for FY25, with revenues/core net profits down 3%/10% YoY, due to a weak consumer spending environment in Hong Kong.
- Cost-Cutting initiatives helped boost EBITDA margins, with PBT remaining flat despite a decline in revenue; however, a higher effective tax rate resulted in lower profits.
- The company has HKD 330 million in net cash, representing more than 80% of its market capitalization, with a trailing P/E multiple of 12.4x and a dividend yield of 6.7%.
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