In today’s briefing:
- HSI Index Options Weekly (May 26-30): Choppy Tape, One Strike Rules Them All
- Shanghai Zhida Technology Development Pre-IPO – Market Leader Faces Pricing Pressures
- CATL (3750.HK): Rich Vols, Strong Start, and a Tactical Hedge
- CSPC Pharmaceutical (1093 HK): Finished Drugs Drag 1Q25; Out Licensing And New Launches To Be Key
HSI Index Options Weekly (May 26-30): Choppy Tape, One Strike Rules Them All
- HSI traded sideways for a third straight week as macro headlines swirled and tariffs turned internally litigious.
- Volatility drifted lower, with 1M implied vol dropping below its 1-year median for the first time in months.
- Call volumes were significantly higher led by one strike in particular.
Shanghai Zhida Technology Development Pre-IPO – Market Leader Faces Pricing Pressures
- Shanghai Zhida Technology Development (SZTD) is looking to raise about US$128m in its upcoming Hong Kong IPO.
- SZTD presents a compelling leadership position in the EV home charging market, both in China and globally, underpinned by strong industry tailwinds and a diversified product-service offering.
- However, recent declines in revenue and margins driven by pricing pressures and high customer concentration raise concerns about the sustainability of its growth and profitability.
CATL (3750.HK): Rich Vols, Strong Start, and a Tactical Hedge
- CATL’s options debut in Hong Kong has been active, with strong Call interest and rising open interest suggesting early investor enthusiasm.
- Implied vols are holding firm post-listing and appear rich —potentially justifiable given the trading dynamics and catalysts.
- We recommend a tactical hedge structure that skews return favourably, targeting recent highs and protecting against downside drift.
CSPC Pharmaceutical (1093 HK): Finished Drugs Drag 1Q25; Out Licensing And New Launches To Be Key
- CSPC Pharmaceutical Group (1093 HK) 1Q25 revenue dropped 22% YoY as finished drugs witnessed decrease on VBP and NRDL inclusion. Bulk products and license fees compensated to an extent.
- Operating margin (23.7%) remained stable despite 11% higher R&D expenses at RMB 1.3B.
- License and collaboration in relation to the development, manufacturing, and commercialization of certain products of the company augur well in terms of future revenue visibility.
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