Daily Brief China: Hainan Meilan International Airport, HashKey, JD Industrials, Shanghai International Airport, Chando Global Holding and more

• On 30 April, Haikou Meilan International Airport entered a SPA with Hainan Airport Infrastructure (600515 CH) to sell its Hainan Meilan International Airport (357 HK) 50.19% stake at RMB9.85 (HK$10.62).
• The SPA precondition is satisfied, and the SPA will be completed within 20 business days. Completion will trigger an unconditional MGO at HK$10.62.
• Tendering is likely to be low as the offer is unattractive. At the last close and for a mid-February 2026 payment, the gross/annualised spread is 0.2%/1.1%.

• HashKey (3887 HK) is looking to raise up to US$215m in its upcoming Hong Kong IPO.
• It operates the largest licensed crypto exchange in Hong Kong.
• In this note, we examine the IPO dynamics, and look at the firm’s valuation.

• JD Industrials (7618 HK) raised around US$383m, after pricing in its Hong Kong IPO at the mid-point.
• JDI is a leading industrial supply chain technology and service provider in China in terms of GMV in each year during the Track Record Period, according to CIC.
• We looked at the company’s past performance in our earlier notes. In this note, we talk about the trading dynamics.

• At the top end of the price range (HK$6.95), HashKey (3887 HK)‘s IPO equals a FY26F P/S of 14.9x, and this is not a particularly appealing level. 
• While it is the industry leader in the region and Hong Kong, it is expected to stay in the red for FY25-27, making a PER comparison meaningless. 
• Tiny public shareholder base, cryptocurrency volatilities, and the increasingly competitive environment heightened risks. Only a low-end IPO price, or 12.7x FY26F P/S, is attractive.

• Poised to capture the full recovery of Chinese international travel, SIA’s primary asset, Shanghai Pudong International Airport (PVG), stands as China’s premier international gateway. The ongoing recovery in passenger volumes, particularly on lucrative international routes, is the primary catalyst for earnings growth.
• Non-aeronautical revenue, especially from duty-free concessions, represents a significant value driver. The upcoming renewal of duty-free contracts from 2026 provides a potential upside, although recent negotiations have sometimes favored the operator, indicating a key area to monitor.
• Massive infrastructure investment, including the Phase IV expansion and a new T3 terminal, will solidify PVG’s long-term competitive position as a mega-hub in Asia. This expansion is designed to increase annual passenger capacity to 130 million, accommodating future growth in the Yangtze River Delta region.

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• Revenue growth is just at the industry level and the growth rate is lower than the CAGR of market size of domestic brands. So, CHANDO is not a fast-growing company.
• Profit margin is disappointing due to high selling and marketing costs. Net profit fluctuated. This reflects that CHANDO’s profit model is not yet stable, with relatively weak risk resistance capacity
• Due to lower performance growth and profit margin, we think valuation of CHANDO would be lower than peers such as Giant Biogene, Mao Geping, Chicmax in Hong Kong market.