In today’s briefing:
- Keymed Bioscience Placement – Track Record Isn’t Great but Recent Performance Has Been Better
- Foshan Haitian Flavouring & Food (3288 HK): Offering Details & Index Inclusion
- BYD (1211 HK) Options: Unpacking the Top Trades of the Week
- Miniso: TOP TOY Spin-Off – Early Stage Pop Mart. Valuation Upside
- MINISO Group (9896 HK): Assessing the TOP TOY Spin-Off
- Saint Bella Pre-IPO: A Few Things to like but Still Unprofitable
- PDD’s Q125 Profit Decline Occurred Before US Squeeze | April-May US Sales Far Weaker for Temu, SHEIN
- Pre-IPO Zhou Liu Fu Jewellery (PHIP Updates) – Some Points Worth the Attention
Keymed Bioscience Placement – Track Record Isn’t Great but Recent Performance Has Been Better
- Keymed Biosciences (2162 HK), along with its controlling shareholder, is looking to raise around US$112m to fund its R&D requirements.
- Keymed Biosciences, a China-based biotech company which focuses on therapeutic areas of autoimmune and oncology
- In this note, we will talk about the placement and run the deal through our ECM framework.
Foshan Haitian Flavouring & Food (3288 HK): Offering Details & Index Inclusion
- Foshan Haitian Flavouring & Food (603288 CH)‘s global offering opens today and the raise could reach up to US$1.5bn if the offer-size adjustment option and the overallotment option are exercised.
- There is a large allocation to cornerstone investors. The discount of around 22% to the A-shares is attractive given the recent trend for Midea (300 HK) and CATL (3750 HK).
- The H-shares could be added to a global index and the FXI ETF in December. Inclusion in the HSCI should be in September and Southbound Stock Connect in July.
BYD (1211 HK) Options: Unpacking the Top Trades of the Week
- This Insight analyzes sophisticated, live, multi-leg options strategies on BYD (1211 HK), executed over the period from 2 June to 9 June on the HKEX
- Highlights: Discover a range of noteworthy strategies, from an in-the-money bear put spread, to a bold short-term bullish iron condor, and a butterfly aiming at a narrow price target.
- Why read: In-depth breakdown of complex option strategies, shedding light on market sentiment and positioning. Detailed examples provide actionable insights that could inspire similar strategies,
Miniso: TOP TOY Spin-Off – Early Stage Pop Mart. Valuation Upside
- MINISO has confirmed that it is considering a possible spin-off listing of TOP TOY, its pop toy division, signalling its intent to unlock value from its collectible toy business.
- Pop Mart International Group L (9992 HK), the leading player in the pop toy retail segment, is trading at nearly 50x forward earnings compared to Miniso’s 13.5x forward P/E.
- TOP TOY is in an early stage of its growth curve compared to Pop Mart and could be valued at a discount given notably lower operating margins.
MINISO Group (9896 HK): Assessing the TOP TOY Spin-Off
- We preliminarily estimate TOP TOY may be valued at 19.1-40.3% of MINISO Group Holding (9896 HK)‘s market capitalisation, though there are still a lot of moving parts.
- TOP TOY is doing well in FY24 with a 41.1% surge in GMV, and for 1Q25, its revenue grew by 58.9%, reflecting exciting growth prospects.
- Bloks Group (325 HK) is a better comparable as its revenue is 2.3x TOP TOY’s, but its profit is 8x. A successful TOP TOY spin-off should benefit Miniso.
Saint Bella Pre-IPO: A Few Things to like but Still Unprofitable
- Saint Bella (SAINT HK) is looking to raise $US200m in its upcoming Hong Kong IPO.
- It operates the second largest and fastest growing postpartum care and recovery service in China, as per Frost & Sullivan report.
- In this note, we provide updates on the firm’s past performance.
PDD’s Q125 Profit Decline Occurred Before US Squeeze | April-May US Sales Far Weaker for Temu, SHEIN
- Pinduoduo’s surprise Q125 OP & NP declines happened before US tariff, de minimis changes
- Recent data from Bain & Co. suggests extremely difficult US conditions for Temu, SHEIN
- If representative, the April-May US data suggest deep, lasting US challenges for the platforms
Pre-IPO Zhou Liu Fu Jewellery (PHIP Updates) – Some Points Worth the Attention
- The performance slowdown and decrease in number of newly opened stores from 2023 to 2024 was due to the rapid surge in gold prices,which would put franchise model at risk.
- Future performance of Zhou Liu Fu may not be benefit from the high gold prices, but could be under pressure due to rising raw material costs and reduced customer demand.
- Valuation of Zhou Liu Fu could be lower than peers and the industry average. A comfortable P/E range could be 10-15x if based on 2025 net profit.
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