In today’s briefing:
- Meilan Airport (357 HK)’s SPA (Finally) Done. Now For The HK$10.62/Share MGO
- ANE Cayman (9956 HK): CDH Holds All The Cards
- 2026 High Conviction Idea: Zijin Mining – Copper Scarcity Rerating to HK$48
- Ming Yu Pharmaceutical (明宇制药) Pre-IPO Quick Comment: Meaningful Improvement to Incumbents
- Luxvisions Innovation Technology Pre-IPO Tearsheet
- SSI Newsletter Highlights: Merger Arbitrage Opportunities, Strategic Reviews and More
- Shenzhen SDMC Pre-IPO Tearsheet
- 2026 High-Conviction: VNET US – Thesis Strengthens Into 2026 (Chips, Demand, Execution)
- Lucror Analytics – Convertibles Brief
- Lucror Analytics – Morning Views Asia
Meilan Airport (357 HK)’s SPA (Finally) Done. Now For The HK$10.62/Share MGO
- Given the change of control into Meilan Airport (357 HK), was, in effect, a re-arrangement of Meilan Airport shares under the same ultimate parent, the regulatory approval process curiously dragged.
- Yesterday Meilan Airport announced all SPA conditions have now been satisfied, and that the SPA should complete in 20 business days. A Composite Doc will then be issued.
- Trading almost at terms. This is a back-end proposition play. My peer basket is up 11%, on average, since the Offer was first announced. Asian peers are up 15%.
ANE Cayman (9956 HK): CDH Holds All The Cards
- The feedback I get on this transaction canvasses comments such as: “it just doesn’t feel right“, or “there’s something funny going on“, or simply “weird“.
- With~20% of the shareholder register, involving opaque pre-IPO investors, none of whom have provided IUs, a Shanghai Henlius (2696 HK)-like situation unfolding is bandied around. The comparison is, however, tenuous.
- Further inquiries suggest CDH is likely in control of 18% of that 20%. This needs to be clarified.
2026 High Conviction Idea: Zijin Mining – Copper Scarcity Rerating to HK$48
- Structural copper tightness, strong gold cash flows, and rising silver prices position Zijin for multi-year earnings growth and a valuation re-rating in 2026.
- Leadership transition reduces founder dependence, strengthens governance credibility, and enables multiple expansion as Zijin aligns with global copper-scarcity peers.
- Base valuation is HK$40–41; spot and peer convergence support HK$48–50, implying 35–40% upside with clear catalysts across copper expansions and gold stability.
Ming Yu Pharmaceutical (明宇制药) Pre-IPO Quick Comment: Meaningful Improvement to Incumbents
- Ming Yu, a China-based clinical-stage biotech company, is looking to raise at least USD 100 million via a Hong Kong listing. MS, BOA, and CITIC are the joint book runners.
- In this note, we look at the company’s core products, MHB018A and MHB036C, and assess the selling point around the core product.
- We also look at the company’s pre-IPO investors and management team.
Luxvisions Innovation Technology Pre-IPO Tearsheet
- Luxvisions Innovation Technology (1853852D HK) is looking to raise at least US$100m in its upcoming Hong Kong IPO. The deal will be run by CITIC, CICC.
- It is a globally leading provider of precision optical solutions, focusing on the mid- to high-end optical module and system integration markets for global brand manufacturers across multiple sectors.
- Its products and solutions primarily serve the consumer electronics, automotive electronics, smart office applications and other emerging sectors.
SSI Newsletter Highlights: Merger Arbitrage Opportunities, Strategic Reviews and More
- Emeren Group’s merger arbitrage presents a 13% spread with a shareholder vote imminent, despite operational softness concerns.
- TrueCar’s buyout vote is set for December 22, with AutoNation potentially reducing required financing by joining.
- AUB Group’s merger discussions with EQT and CVC ended without a binding proposal, reflecting management’s confidence in fundamentals.
Shenzhen SDMC Pre-IPO Tearsheet
- Shenzhen SDMC (1385919D CH) is looking to raise at least US$100m in its upcoming Hong Kong IPO. The deal will be run by CSI.
- It is a specialized provider of smart home solutions for enterprise customers, dedicated to advancing the application of AI technologies in home settings.
- The Company’s business model involves developing and selling primarily hardware products.
2026 High-Conviction: VNET US – Thesis Strengthens Into 2026 (Chips, Demand, Execution)
- Recent developments materially improve the setup: H200 clarity reduces a major sector overhang and removes uncertainty around chip supply, clearing the way for continued AI-infrastructure expansion in China.
- 3Q25: VNET’s strong result, 2026 outlook, advantaged power resources, and shareholder priorities (no equity dilution and defined leverage limits) reduce downside bottoms-up risk while increasing confidence on execution
- None of this is reflected in today’s valuation. With 25–30% EBITDA CAGR and improved visibility on demand and execution, VNET is positioned for a material 2026 re-rating, implying 60-100% upside.
Lucror Analytics – Convertibles Brief
- In today’s Convertibles Brief publication we comment on developments of the following high yield issuers: Lenovo
- The iTraxx Main was broadly flat at 53 bps, while the iTraxx X-Over narrowed 1 bps to 255 bps. The US CDX HY widened 3 bps to 323 bps. European bourses were mostly flat to 0.7% lower, except for the DAX (+0.5%), FTSE MIB (+0.3%) and IBEX 35 (+0.1%). In the US, the S&P 500 fell 0.1%, while the Nasdaq gained 0.1%.
- In Asia this morning, the Nikkei is down 0.3%, while the Hang Seng is 0.4% lower. US equity futures are mostly trading higher. WTI and Brent are USD 58.4/bbl and USD 62.0/bbl, respectively.
Lucror Analytics – Morning Views Asia
- In today’s Morning Views publication we comment on developments of the following high yield issuers: China Jinmao, West China Cement, Biocon Biologics
- UST yields declined yesterday, led by the front end, following the Fed’s 25-bp rate cut and announcement that it will commence T-bill purchases. The UST curve bull steepened sharply, with the yield on the 2Y UST falling 8 bps to 3.54%, while the yield on the 10Y decreased 4 bps to 4.15%.
- Fed-dated OIS continued to price in two rate cuts in 2026 (one before June and another by October), despite the FOMC’s dot plot indicating just one cut for 2026. Equities climbed, with the S&P 500 rising 0.7% to 6,887.
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