In today’s briefing:
- Horizon Robotics Placement – Momentum Is Strong but Raising Seems Opportunistic
- CSI Hong Kong Connect Internet Index Rebalance: 10 Changes & Big Impact
- MINISO (9896 HK)’s (Possible) TOP TOY Spin-Off Is Priced In
- Foshan Haitian Flavouring A/H Listing – Strong Cornerstone, Weak Momentum
- Quiddity Leaderboard HSCEI Sep25: One Change Likely; US$245mn One-Way Flow
- Foshan Haitian Flavouring (3288 HK) IPO: The Valuation Perspective
- Foshan Haitian Flavouring H Share Listing (3288 HK): Valuation Insights
- JD.com (9618 HK): Top Trades and Strategic Insights from HKEX Options Trading
- [IO Fundamentals 2025/23] Deflation Concerns and Declining Portside Inventories
- Saint Bella IPO: Revenue Growth Re-Accelerated, 34 Postpartum Centers Were Opened In 2024
Horizon Robotics Placement – Momentum Is Strong but Raising Seems Opportunistic
- Horizon Robotics (9660 HK) raised around US$800m in its Hong Kong IPO in October 2024. It’s back again to raise another US$600m via a placement.
- Horizon Robotics (HR) is a provider of advanced driver assistance systems (ADAS) and autonomous driving (AD) solutions for passenger vehicles, empowered by its proprietary software and hardware technologies.
- In this note we talk about the deal dynamics and run the deal through our ECM framework.
CSI Hong Kong Connect Internet Index Rebalance: 10 Changes & Big Impact
- There are 5 constituent changes for the CSI Hong Kong Connect Internet Index in June. Plus there are capping changes for some stocks.
- A lot of the adds have moved significantly in the last couple of days, so the impact over the next couple of days will be smaller.
- There could be opportunities to trade the reversion strategy. Getting borrow may not be easy on some names.
MINISO (9896 HK)’s (Possible) TOP TOY Spin-Off Is Priced In
- Three months ago, local media reported that Chinese lifestyle retailer MINISO Group Holding (9896 HK) was considering spinning off its collectible toy unit TOP TOY on the Hong Kong exchange.
- Reportedly, MINISO could raise ~US$300mn from an IPO. MINISO has now confirmed that a spin-off is being contemplated; although a proposal is only at a preliminary stage.
- TOP TOY has been a growth engine. But its contribution to the group is still ~6%. Applying a holding company discount, post spin-off, MINISO’s upside appears limited.
Foshan Haitian Flavouring A/H Listing – Strong Cornerstone, Weak Momentum
- Foshan Haitian Flavouring & Food (603288 CH) (FHCC), China’s leading condiments company, aims to raise around US$1.2bn in its H-share listing.
- FHCC is China’s leading condiments company within its main product categories of soy sauce, oyster sauce, flavored sauce, specialty condiment products and other products.
- We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the IPO pricing.
Quiddity Leaderboard HSCEI Sep25: One Change Likely; US$245mn One-Way Flow
- The HSCEI serves as a benchmark to reflect the overall performance of the top 50 “Mainland China” securities listed in Hong Kong.
- In this insight, we take a look at the potential index changes and capping flows for HSCEI index rebal event in September 2025.
- Based on the latest data, we see one ADD and one DEL.
Foshan Haitian Flavouring (3288 HK) IPO: The Valuation Perspective
- Fundamentals first, Foshan Haitian Flavouring & Food Company (3288 HK)‘s IPO is interesting given a positive growth outlook – 1Q25 growth accelerated to 14.8% with margin expansion.
- We value the H-share at HK$39.35, 8.4% higher than the high-end of the IPO price based on 28.2x FY25F PER to reflect its significantly stronger 3-year earnings growth.
- It equals 5.9x pre-money FY25F P/B, justified by ROE of 21.8-22%, sharply ahead of peers. Net cash equals 12.4% of its A-share market cap.
Foshan Haitian Flavouring H Share Listing (3288 HK): Valuation Insights
- Foshan Haitian Flavouring & Food Company (3288 HK) has launched its H Share listing at HK$35.00 to HK$36.30 per H Share. Pricing will be on 17 June.
- I discussed the H Share listing in Foshan Haitian Flavouring H Share Listing: The Investment Case.
- The proposed AH discount can be argued as either light or attractive. I lean toward the latter and would participate in the H Share listing.
JD.com (9618 HK): Top Trades and Strategic Insights from HKEX Options Trading
- Discover sophisticated, live, multi-leg options strategies on JD.com (9618 HK), executed over the period from 4 June to 10 June on the HKEX
- Highlights: A range of noteworthy strategies, including a deep in-the-money, three-months Diagonal Call Spread and an ultra-low-cost, one-week Calendar Put Spread, highlighting diverse approaches to capitalize on market movements.
- Why read: This breakdown of complex option strategies sheds light on market sentiment and positioning. Detailed examples provide actionable insights that could inspire similar strategies,
[IO Fundamentals 2025/23] Deflation Concerns and Declining Portside Inventories
- China’s CPI plunged 0.1% YoY in May-25, while producer prices declined by 3.3% driven by softening domestic demand and US tariff tensions.
- China’s iron ore imports declined due to seasonal factors and early clearances, while strong steel exports may pressure prices amid front-loaded global supply.
- Iron ore portside inventories fell further in early June, but weakening demand and slower pick-up volumes may soon reverse the trend and pressure prices.
Saint Bella IPO: Revenue Growth Re-Accelerated, 34 Postpartum Centers Were Opened In 2024
- Saint Bella, a premium postpartum care and recovery provider, moves toward Hong Kong IPO following strong +43% y/y revenue growth in 2024.
- The company is uniquely positioned in premium segment under Saint Bella, Bella Isla and Baby Bella brands.
- I believe Saint Bella has the potential to become one of the key postpartum care and recovery providers targeting HNW, high income and young middle class families in China
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