In today’s briefing:
- Kangji Medical (9997 HK): Precondition Satisfied for the Light Scheme Offer
- PC Partner (1263 HK): Thoughts On The HKEx Delisting
- WuXi XDC Cayman (2268 HK) Placement: Capex to Accelerate Growth Momentum
- 2025 High Conviction: QFIN US – Event-Driven: Regulatory Overhang Sets Up 100%+ Upside Post-Clarity
- Genfleet (劲方医药) Pre-IPO: Thoughts on Valuation
- Ligent Technologies Pre-IPO Tearsheet
- Midea Group(300 HK)-Firing on All Cylinders; Disciplined Execution Across Legacy &Emerging Verticals
- Hesai Secondary HK Offering – Stock Has Been Recovering, a Look at Possible Trading Setup
- 3SBio Inc (1530 HK): NDA Approvals Awaited Amid Sales Decline; Upfront Payment To Boost 2H25
- Pre-IPO Shanghai Forest Cabin Biological-Tech – The Business Model and the Concerns Behind
Kangji Medical (9997 HK): Precondition Satisfied for the Light Scheme Offer
- The precondition for Hangzhou Kangji Medical Instrument Co., Ltd. (9997 HK)’s scheme privatisation from a consortium is satisfied. The offer, which has been declared final, is at HK$9.25 per share.
- The key condition will be approval by at least 75% disinterested shareholders (<10% of all disinterested shareholders rejection). Crucially, the blocking stake is below the substantial disclosure threshold.
- Despite the recent derating of peers, the vote risk remains medium-to-high due to a solid interim, the imminent surgical robot growth story, unfavourable AGM voting patterns, and emerging retail opposition.
PC Partner (1263 HK): Thoughts On The HKEx Delisting
- On the 15th November 2024, personal computer parts and accessories play PC Partner (1263 HK)‘s secondary listing, by way of introduction, was effected.
- The SGX also granted in-principle approval for the conversion of its secondary listing status to a primary listing. This dual-listing status (SGX + HKEx) took effect on the 20th August.
- In tandem with a SGX free float waiver, PCP will now seek a HKEx delisting. This listing/delisting construct is to ensure the uninterrupted supply of NVIDIAs GPUs.
WuXi XDC Cayman (2268 HK) Placement: Capex to Accelerate Growth Momentum
- WuXi XDC Cayman (2268 HK) is placing up to 22M shares at the placing price of HK$58.85 per share to raise a maximum gross proceed of HK$1,311M under general mandate.
- The company will also issue ~24M shares to its controlling shareholder Wuxi Biologics at HK$58.85 per share for a total consideration of ~HK$1,420M, subject to independent shareholders’ approval.
- 90% of the proceeds will be used for further expansion of the company’s production capacity in relation to clinical and commercial manufacturing for bioconjugates, drug substances, and drug products.
2025 High Conviction: QFIN US – Event-Driven: Regulatory Overhang Sets Up 100%+ Upside Post-Clarity
- QFIN US is down 30% since July on fear that the Oct 1 regulatory action on 24%+ loans will lead to significant and sustained earnings downgrades.
- QFIN’s industry-leading franchise, risk management history, capital return yield (~18-20%), and strong balance sheet support a strong recovery post-regulatory clarity and cleanup.
- Valuation at 1.2x FY1 P/BV already discounts worst case; QFIN’s recovery potential leaves scope for 100%+ upside (peak valuation at 2.4x in Mar-24 pre-regulation).
Genfleet (劲方医药) Pre-IPO: Thoughts on Valuation
- Genfleet, a China-based clinical-stage biotech, is looking to raise USD 250 million via a Hong Kong listing. The sole book runner is CITIC.
- In our previous insight, we looked at the company’s core products and its management team, as well as investor backing.
- In this note, we will provide an rNPV-based valuation for the company.
Ligent Technologies Pre-IPO Tearsheet
- Ligent Technologies (LGT HK) is looking to raise about US$100m in its upcoming Hong Kong IPO. The deal will be run by Citibank and CITIC Securities
- Ligent Technologies is a global provider of optical communication and connectivity products that support the high-speed data needs of AI computing networks, cloud services, and telecom infrastructure.
- Its main offerings include optical transceivers (including datacom and telecom solutions), optical chips, and optical network terminals. These solutions power applications for data centers, telecom operators and computing systems.
Midea Group(300 HK)-Firing on All Cylinders; Disciplined Execution Across Legacy &Emerging Verticals
- Firing on All Cylinders :Midea Group (300 HK) delivered robust 15.7% YoY revenue growth and 25% profit increase in H1 2025, driven by strong domestic demand and overseas expansion.
- Disciplined Execution : Smart Home remained the largest contributor, while Energy Solutions and Intelligent Building Technology delivered fastest growth; overseas revenue rose 17.7% YoY, now 42.5% of group sales.
- Available at compelling valuation of 13.7x P/E (FY25e), Midea emphasizes R&D leadership, digital transformation, and green solutions to sustain long-term growth.
Hesai Secondary HK Offering – Stock Has Been Recovering, a Look at Possible Trading Setup
- Hesai Group (HSAI US) plans to raise around US$200-300m in its secondary listing in Hong Kong.
- The company won HK listing approval and filed its PHIP on 31st August 2025. It will look to launch its secondary offering soon.
- In this note, we’ll take a look at the deal and talk about the impact of the raising.
3SBio Inc (1530 HK): NDA Approvals Awaited Amid Sales Decline; Upfront Payment To Boost 2H25
- 3SBio Inc (1530 HK) witnessed a revenue decline of 1% in 1H25. Company’s core product Tpiao’s sales decreased 4% to RMB 2.4B (54% of total) impacted by lower volume.
- Phase III clinical trial of SSS06 (anemia in chronic renal failure), 608 (psoriasis), and 613 (acute gouty arthritis) is complete. NDAs for the same are under review by NMPA.
- 3SBio shares are trading at forward P/E of 11.5x, lower than peers. We feel that there is still upside potential left in the stock.
Pre-IPO Shanghai Forest Cabin Biological-Tech – The Business Model and the Concerns Behind
- FOREST CABIN holds a leading position in camellia oil segmentation, with mid-to-high end positioning and high gross profit margin. But high operating cost will put pressure on net profit margin.
- Considering the risk of recession/depression, consumption downgrade and reducing non-rigid spending will be the main theme in short term. 50% YoY revenue growth in 2024 is likely to be unsustainable.
- Valuation of FOREST CABIN could be lower than peers. Stock price performance would highly depend on market sentiment, company growth trend, and visibility of profitability at the time of listing.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
