Daily Brief China: Genes Tech Group Holdings, China Hongqiao, 360 Finance, Inc., Kuaishou Technology, Zhejiang Semir Garment Co A, APAC Resources, Guangdong Chj Industry Co A, Jiangsu Hengrui Pharmaceuticals, Health And Happiness (H&H), Genuine Biotech and more

• Genes Tech Group Holdings (8257 HK), a turnkey solutions provider, has announced a rare, arm’s-length Offer, by way of a Scheme. 
• The Offeror, privately-held Tinicum, is offering HK$0.245/share (not declared final), a 87% premium to last close, and a four-plus-year high.
• Irrevocables comprising 69.79% of the register are supportive. Super clean deal

• Equity placing strengthens Hongqiao’s balance sheet, cuts refinancing risk, and supports Yunnan’s low-carbon capacity migration.
• FY25–27 forecasts updated: modest EPS dilution offset by lower interest costs and improved cash generation.
• Valuation remains discounted vs global peers despite first-quartile costs, rising renewable mix, and improving aluminium market fundamentals.

• Revenue held up in 3Q25 as credit-driven services offset weakness in platform services, while regulatory and macro pressures continued to drive a strategic shift toward capital-heavy lending.
• Provisions surged due to regulatory-driven business mix changes rather than asset-quality deterioration, pushing cost of risk sharply higher and weighing on profitability.
• Despite lower FY25 guidance and reduced RoE, valuation remains attractive with meaningful upside supported by a higher target P/B and strong total return potential.

• Revenue growth accelerated for third quarter to 14% YoY in 3Q25.
• GMV of live streaming e-commerce grew by 18% YoY in 3Q25.
• The operating margin improved significantly by 4.7 ppt YoY in 3Q25.

• Dominant player in China’s children’s wear market through its highly successful ‘Balabala’ brand, which holds the leading market share.
• The children’s wear segment serves as the primary growth engine, consistently contributing a larger share of revenue and offsetting the slower growth in the more mature adult casual wear segment.
• Financial performance shows a recovery trajectory with revenue and net income growth in recent years, supported by improving margins and a strong dividend yield.

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• APAC Resources is a Hong Kong-listed investment holding company focused on natural resources, with a dual strategy of commodity trading and making strategic investments in mining and energy companies.
• The company exhibits strong top-line and bottom-line growth in the most recent two years, swinging from a significant loss to profitability. However, this performance is coupled with extremely volatile and recently negative operating cash flows, highlighting the cyclicality and risks inherent in its business model.
• Valuation appears attractive with a low price-to-book ratio and a high dividend yield, but this is counterbalanced by high uncertainty and a dependency on volatile global commodity markets, particularly those influenced by China’s demand.

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• CHJ’s business model integrates franchise stores and self-operated stores. Franchising as the main approach is beneficial for achieving rapid expansion, while self-operation as a supplement helps to enhance brand image.
• Due to increasing competition, future growth of CHJ may not be benefit from the high gold prices, but may be under pressure due to rising raw material costs/reduced customer demand.
• We think valuation of CHJ should be lower than Laopu, but could be higher than Zhou Liu Fu (6168 HK) due to CHJ’s higher performance growth in the short term.  

• Jiangsu Hengrui Pharmaceuticals (1276 HK), a China-based pharmaceutical company, raised around US$1.5bn in its H-share listing in May 2025. The lockup on its cornerstone will expire soon.
• JHP Has been ranked as one of the global Top 50 pharmaceutical companies by Pharm Exec for six consecutive years since 2019.
• In this note, we will talk about the lockup dynamics and possible placement.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Health and Happiness (H&H), West China Cement, China Hongqiao, Xiaomi Corp
• UST yields declined yesterday, led by the front end, following soft data from the ADP’s weekly employment gauge. The UST curve bull steepened, with the yields on the 2Y UST and 10Y UST decreasing 4 bps to 3.57% and 3 bps to 4.11%, respectively. Equities slumped on a sell-off in large tech stocks. The S&P 500 fell for a fourth straight day, dropping 0.8% to 6,617.
• Richmond Fed President Tom Barkin (who is a non-voting member this year) said that the labour market may be weaker than the data suggested, adding that he believes “inflation remains somewhat elevated but isn’t likely to increase much”.

• Genuine Biotech is looking to raise at least US$100 million via a Hong Kong listing. The sole sponsor is CICC.
• In our previous note, we briefly looked at the company’s fundamentals.
• In this note, we analyzed the latest changes in the company and the challenges faced by the company.