Daily Brief China: Ganfeng Lithium, JST Group, Plover Bay Technologies, Seres Group , TOP TOY International Group, Eccogene, Yunji Inc., Seazen (Formerly Future Land), Shanghai Sunmi Technology Co., Ltd., Bama Tea and more

• Ganfeng Lithium (1772 HK)‘s stock price has surged over the last 6 months, and the higher free float market cap should result in global index inclusion in November.
• Ganfeng Lithium (1772 HK) has outperformed its peers and is trading at higher valuations on most metrics. Tianqi Lithium (9696 HK) is trading a lot cheaper.
• The Jiangxi Ganfeng Lithium (002460 CH) / Ganfeng Lithium (1772 HK) premium has drifted lower and there could be a move higher as we near index inclusion.

• JST Group (6687 HK) is China’s largest e-commerce SaaS ERP provider. It is seeking to raise HK$2,086 million (US$268 million).
• I previously discussed the IPO in JST Group IPO: The Investment Case. 
• In this note, I present my forecasts and valuation. My analysis suggests that the IPO price is attractive in the context of the revenue growth.

Key points (machine generated)

• Plover Bay Technologies specializes in reliable internet connectivity for critical applications in challenging environments.
• The company has partnered with Starlink as their first Authorized Technology Partner to enhance multi-WAN bandwidth bonding and fail-over capabilities.
• CEO Alex Chan emphasized the mission to improve connectivity at Peplink’s global developer summit in Amsterdam.

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• Seres Group (601127 CH), a Chinese NEV manufacturer, aims to raise around US$2bn in its H-share listing.
• Seres Group (SG) is principally engaged in the research and development, manufacturing, sales and services of new energy vehicles (NEV) as well as core NEV components.
• In our previous note we had looked at its past performance. In this note, we talk about the recent updates and likely A/H premium.

• TOP TOY International Group (TOYTOY HK) is seeking an IPO in Hong Kong. In the latest Series A financing, it is valued at US$1.3bn post-money.
• It has solid market growth potential, IP and product development strengths, an extensive distribution network, and good leverage on its parent MINISO Group Holding (9896 HK). 
• We initially assess a fair FY26F PER of 20-22x, equating to a slight premium to Bloks Group (325 HK) but a discount to Pop Mart (9992 HK). 

• Eccogene, a China-based clinical-stage biopharma company, is looking to raise at least USD 100 million via a Hong Kong listing. Jefferies, BoA, and CICC are the joint sponsors.
• In this note, we look at the company’s core products, ECC4703, and key products ECC5004 and ECC0509.
• We also look at the company’s pre-IPO investors and management team.

• Yunji Inc. is a pioneer in China’s membership-based social e-commerce sector, leveraging social interactions to drive sales through a network of members who act as promoters.
• The company is facing significant headwinds, including declining revenues and widening net losses, amidst intense competition in the Chinese e-commerce landscape.
• Yunji’s strategic focus is on cost optimization, improving gross margins, and launching new product lines in an effort to achieve profitability and stabilize its financial performance.

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• In today’s Morning Views publication we comment on developments of the following high yield issuers: Seazen Group, Vedanta Resources
• The UST curve twisted slightly steeper yesterday, following dovish comments from a few Fed officials that kept rate-cut expectations intact. The yield on the 2Y UST fell 2 bps to 3.48%, while the yield on the 10Y UST was unchanged at 4.03%.
• Equities retreated, owing to fresh US-China trade tensions. The S&P 500 fell 0.2% to 6,644, while the Nasdaq declined 0.8% to 22,522.

• Market Leader in a Growing Niche: Shanghai Sunmi Technology is a global leader in the Android-based Business Internet of Things (BIoT) device sector, with a reported market share of over 10%. The company is well-positioned to capitalize on the global transition from traditional point-of-sale (POS) systems to integrated, smart-device ecosystems.
• Robust Partner Ecosystem as a Key Differentiator: Sunmi’s competitive advantage is anchored by its extensive open-platform ecosystem, which includes the SUNMI OS (based on Android), a dedicated business app store with over 13,000 applications, and a network of more than 58,000 ecosystem partners. This fosters innovation and provides end-users with a wide array of tailored software solutions.
• Strategic Backing and Impending IPO: The company is backed by prominent strategic investors, including Ant Group, Xiaomi Technology, and Meituan. Sunmi is currently in the IPO registration phase for a Hong Kong listing, which is expected to provide significant capital for future growth, product development, and market expansion.

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• The core of Bama’s business model is light-asset operation of “brand + channel”. Bama is highly dependent on franchise model, but we’ve seen a diminishing marginal benefit of channel penetration.
• Due to sluggish consumption environment, revenue of Bama could decline by 4% in 2025.From 2026 to 2027, as strategic adjustments take effect, Bama may resume growth of 3% to 5%.
• Considering the decline in performance in 25H1 and the low valuation of traditional tea enterprises in the Hong Kong stock market, Bama’s valuation performance may be under pressure.