In today’s briefing:
- Hansoh Pharma Placement – Somewhat Expected but Still Opportunistic
- Hang Seng Index (HSI) Outlook Ahead of Sep25 Rebalance
- Pop Mart (9992 HK): Revenue Up by 204%, Margin Up by 17 PPT, 64% Upside
- Aux Electric Pre-IPO: Competitive Niche
- SICC A/H Trading – Strong Retail, Lukewarm Insti Demand
- Smart Share Global: An Interesting Merger Arb Play
- Commodities & Metals – August 2025
- Shuangdeng Group IPO: Weak Earnings This Year but Potentially Hot Data Centre Trade
- Aux Electric IPO: The Investment Case
- Lucror Analytics – Morning Views Asia
Hansoh Pharma Placement – Somewhat Expected but Still Opportunistic
- Hansoh Pharmaceutical Group (3692 HK) aims to raise around US$500m via a primary placement.
- The stock has done exceptionally well this year but is now trading at near its all-time highs and it doesn’t really need the cash.
- In this note, we will talk about the deal dynamics and run the deal through our ECM framework.
Hang Seng Index (HSI) Outlook Ahead of Sep25 Rebalance
- Brian Freitas has highlighted in his August 18th’s insight the details of what to expect in the upcoming, September 5, index rebalance for the Hang Seng Index (HSI INDEX) .
- The HSI started a modest pullback this week, outlook for the index remains bullish, this insight will try to determine both buy-the-dip and profit targets areas for the coming weeks.
- We have attached at the end of the insight an Excel file with all our price and time model’s data for the HSI INDEX. Check it out.
Pop Mart (9992 HK): Revenue Up by 204%, Margin Up by 17 PPT, 64% Upside
- In 1H25, Pop Mart’s revenue surged by 204% YoY with all major business lines growing significantly.
- We believe the operating margin will improve strongly in 2025 and rise slightly in 2026.
- The P/E band suggests an upside of 64% for the end of 1H265. Buy.
Aux Electric Pre-IPO: Competitive Niche
- Aux Electric Co Ltd (0917839D HK) is looking to raise up to US$600m in its upcoming Hong Kong IPO.
- It is one of the global top five air conditioner providers, with capabilities covering the design, R&D, production, sales and related services of household and central air conditioners.
- In this note, we look at the firm’s past performance.
SICC A/H Trading – Strong Retail, Lukewarm Insti Demand
- SICC (688234 CH), a manufacturer of high-quality SiC substrates, raised around US$260m in its H-share listing.
- In terms of market share, as per Frost & Sullivan, based on 2024 sales, its market share was at 16.7%.
- We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the trading dynamics.
Smart Share Global: An Interesting Merger Arb Play
- Smart Share Global (EM US) , previously known as “Energy Monster”, is a rather interesting merger arbitrage situation.
- It provides a unique risk/reward balance analogous to the famous adage, “heads I win, tails I don’t lose too much”.
- In this note, we examine the company and the merger dynamics.
Commodities & Metals – August 2025
- Key Trends: Precious metals, cobalt, and rare earths sustain leadership, while uranium equities face a short-term correction despite strong structural drivers.
- Key Idea: Markets reward miners with policy support, scale, and cost efficiency, while penalizing those exposed to cyclical weakness or geopolitical uncertainty.
- Key News: China tightened rare earth quotas, India moved forward on steel safeguard duties, and uranium equities corrected even as nuclear fundamentals remain robust
Shuangdeng Group IPO: Weak Earnings This Year but Potentially Hot Data Centre Trade
- Shuangdeng Group Co Ltd (JISHUZ CH) is looking to raise around US$109m in its upcoming Hong Kong IPO.
- It’s a global leader in energy storage business for big-data and telecommunication industries with a diverse customer base comprising telecom base station operations, data centers, power stations and power grids.
- In this note, we examine the IPO dynamics, and look at the firm’s valuation.
Aux Electric IPO: The Investment Case
- Aux Electric Co Ltd (0917839D HK) is the fifth-largest air conditioner provider globally as measured by volume. It is seeking to raise US$600 million.
- Aux is known for its aggressive low pricing, which has helped it establish itself as an affordable option to larger peers.
- The investment case is bullish due to strong growth, increasing contract liabilities, encouraging margin profile despite the low-price strategy/higher ODM mix and cash generation.
Lucror Analytics – Morning Views Asia
- In today’s Morning Views publication we comment on developments of the following high yield issuers: Yuexiu REIT
- UST yields rose 1-2 bps yesterday, with limited major catalysts ahead of Fed Chairman Jerome Powell’s Jackson Hole appearance later this week. The yield on the 2Y UST inched up 1 bp to 3.77%, while that on the 10Y UST was up 2 bps at 4.33%.
- Equities were flat, with the S&P 500 and Nasdaq stable at 6,449 and 21,630, respectively.
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