In today’s briefing:
- Lens Technology (6613 HK): Offering Details & Index Inclusion
- Midea Group (300 HK) – Annto Logistics Spin-Off & IPO; Valuation Scenarios
- Lens Technology H-Share Listing: Thoughts on Valuation
- Lens Technology H Share Listing (6613 HK): Valuation Insights
- Foshan Haitian Flavouring & Food Company (3288 HK) – The Dull Post-IPO Share Price and the Outlook
- Fortior Tech A/H Listing – Fast but Volatile Growth and Margins
Lens Technology (6613 HK): Offering Details & Index Inclusion
- Lens Technology (6613 HK)‘s global offering opened yesterday, and the raise could reach up to US$800m if the offer-size adjustment option and the overallotment option are exercised.
- The allocation to cornerstone investors is smaller than in other recent AH listings. The discount of over 25% to the A-shares is attractive given the recent trend for large listings.
- Lens Technology (6613 HK) could be added to a global index in December. Inclusion in Southbound Stock Connect in August and HSCI inclusion could take place in March 2026.
Midea Group (300 HK) – Annto Logistics Spin-Off & IPO; Valuation Scenarios
- Midea Group (300 HK) has received shareholder approval to spin off its technology-driven supply chain arm,Annto Logistics,for a separate listing on the Main Board of the Hong Kong Stock Exchange.
- Annto has demonstrated consistent profitability, with cumulative net profit attributable to shareholders of the parent company reaching RMB 883.42 million for 2022-2024.
- Size to not exceed 20% of the enlarged share capital. The objective is to expand Annto’s financing avenues, accelerate growth, & bolster operational independence within the Midea ecosystem.
Lens Technology H-Share Listing: Thoughts on Valuation
- Chinese iPhone glass supplier Lens Technology (6613 HK) has announced the terms for its H-share listing, and plans to raise around US$600m through issuing 262.3m shares.
- The company’s listing is priced at HK$17.38-18.18 per share, at a 25-28% discount to the last close price of the A-shares as of 27th June.
- Our valuation analysis suggests that the company’s H-share offering is priced reasonably compared to domestic and international peers.
Lens Technology H Share Listing (6613 HK): Valuation Insights
- Lens Technology (6613 HK), an industry-leading integrated one-stop precision manufacturing solution provider, has launched an H Share listing to raise US$600 million.
- I discussed the H Share listing in Lens Technology H Share Listing (6613 HK): The Investment Case.
- The proposed AH discount of 24.8% to 28.1% (based on the 27 June A Share price) is attractive, and I would participate in the H Share listing.
Foshan Haitian Flavouring & Food Company (3288 HK) – The Dull Post-IPO Share Price and the Outlook
- Recent positive sentiment towards A/H listings fails to drive Haitian’s post-IPO stock price performance, as the market still has doubts about whether Haitian can effectively break through the growth bottleneck.
- The core contradiction of Haitian lies in the mismatch between high valuation and slow growth. Haitian’s fundamentals are difficult to support high valuation – 20-30x P/E is a reasonable range.
- The intensification of geopolitical tensions has brought considerable uncertainty to the market, which has reduced investors’ risk appetite and made them more willing to avoid investment targets with potential risks.
Fortior Tech A/H Listing – Fast but Volatile Growth and Margins
- Fortior Technology (Shenzhen) (688279 CH), a BLDC motor IC design company, aims to raise around US$250m in its H-share listing.
- Fortior Tech is an IC design company dedicated to the design and R&D of BLDC motor control ICs.
- In this note, we look at the past performance and likely A/H premium.
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