In today’s briefing:
- Innovent Biologics Placement – Second for the Month, Stock Has Doubled but Momentum Is Strong
- Anjoy Foods Group A/H Listing – Isn’t Great but Can’t Ask for It to Cheaper
- FWD Pre-IPO – PHIP Updates – Growth Slowing, Metrics Evolution Continues
- Laopu Gold (6181 HK): Lockup Expiry Ahead. After 2000% Rally, Is There Still Shine Left?
- Eternal Beauty IPO Trading – Weak Demand, Close to Fair Value
- Zhou Liu Fu IPO Trading: Fundamentally Weak but Oversubscribed
- Anjoy Foods Group (2648 HK) IPO: Reasonably Attractive
- China Dongxiang (3818 HK): Better than It Appears
- Lenovo – ESG Report – Lucror Analytics
- Pre-IPO Nanjing Leads Biolabs (PHIP Updates) – Thoughts on the Valuation and the Outlook
Innovent Biologics Placement – Second for the Month, Stock Has Doubled but Momentum Is Strong
- Innovent Biologics Inc (1801 HK) aims to raise around US$500m for R&D and marketing.
- The company has undertaken a number of deals in the past, with the overall results being mixed but recent deals have done well.
- In this note, we will talk about the deal dynamics and run the deal through our ECM framework.
Anjoy Foods Group A/H Listing – Isn’t Great but Can’t Ask for It to Cheaper
- Anjoy Foods Group (603345 CH), a quick-frozen food company in China, aims to raise around US$336m in its H-share listing.
- AFG was the largest quick-frozen food company in China in terms of revenue in 2023, with a market share of 6.2%, according to the Frost & Sullivan report.
- 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.
FWD Pre-IPO – PHIP Updates – Growth Slowing, Metrics Evolution Continues
- FWD Group Holdings (FWD HK), a pan-Asian life insurer founded by Richard Li, now aims to raise around US$500m in its HK IPO.
- FWD is a pan-Asia life insurer operating in ten markets including Hong Kong (and Macau), Thailand (and Cambodia), Japan, the Philippines, Indonesia, Singapore, Vietnam and Malaysia.
- We looked at the company’s 2018-21 performance in our past notes. In this note, we will talk about the updates since then.
Laopu Gold (6181 HK): Lockup Expiry Ahead. After 2000% Rally, Is There Still Shine Left?
- Laopu Gold (6181 HK)’s 365-day lockup on shares held by pre-IPO investors expires tomorrow (June 27), more than doubling its current free float.
- Near-Term pressure on the stock is likely, given the sharp increase in tradable shares, mixed gold price outlook, and limited retail investor access after a steep rally.
- A potential stock split could broaden investor participation, improve liquidity and serve as a catalyst for next leg of stock upside.
Eternal Beauty IPO Trading – Weak Demand, Close to Fair Value
- Eternal Beauty Holdings raised around US$125m in its Hong Kong IPO.
- Eternal Beauty is the largest brand management company of perfumes in the combined markets of Mainland China, Hong Kong and Macau, in terms of retail sales in 2023.
- We have looked at the company’s past performance in our previous note. In this note we talk about the trading dynamics.
Zhou Liu Fu IPO Trading: Fundamentally Weak but Oversubscribed
- Zhou Liu Fu Jewellery Co., Ltd. (1716396D CH) is looking to raise up to $143m in its upcoming Hong Kong IPO
- It is a leading and fast growing jewellery franchise in China offering a diverse range of products through offline and online sales channels.
- We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.
Anjoy Foods Group (2648 HK) IPO: Reasonably Attractive
- Anjoy Foods Group (2648 HK)‘s H-share IPO at a maximum price of HK$66.00 appears reasonably attractive, as this equals a 33-34% discount to peer average FY25F PER.
- It is well-positioned to capture quick-frozen food demand growth, will gain from geographical and market share expansion, and has solid product, marketing and production capability.
- We value the stock at HK$72.66, 12.7x FY25F PER, or a 25% discount to the sector PER. It will also be on a 13.9% discount to its A-share.
China Dongxiang (3818 HK): Better than It Appears
- While the 2H FY25 result of China Dongxiang (3818 HK) does not look exciting, there are meaningful operating and financial improvements deep inside.
- The HSI change is a good proxy for its investment gains, and the 5.9% gain since end-FY25 (Mar) should positively reflect on CNDX’s 1H FY26 results.
- The sports goods business is not expected to be a drag in FY26. Trading at a steep 76.5% discount, the stock stays highly undervalued.
Lenovo – ESG Report – Lucror Analytics
- Lenovo is the largest PC maker globally, with a c. 25% market share. It is also a major mobile-phone maker and Top 5 server manufacturer.
- At FYE 2024-25 (ended March 2025), Lenovo’s revenue was USD 69 bn.
- The largest shareholders of the HKEX-listed company are Legend Holdings (37%) and Chairman/CEO Yang Yuanqing (6.2%).
Pre-IPO Nanjing Leads Biolabs (PHIP Updates) – Thoughts on the Valuation and the Outlook
- Even if the first indication of LBL-024 is approved, it wouldn’t bring significant performance growth due to small market size for EP-NEC. Commercialization prospects of LBL-007 are also not optimistic.
- Leads Biolabs’ CD3 pipelines would have higher hope to be successful. However, early-stage investors transferred their equity at a discount before IPO, which may reflect their concerns about the prospects.
- Comfortable valuation is RMB3-4bn, which provides investors with a greater margin of safety.Especially in the context of current bull market of innovative drugs, biotech valuation has been full of bubble
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