In today’s briefing:
- Luxshare H Share Listing (2475 HK): The Investment Case
- Perfect Medical (1830 HK): Firming Up Outlook For FY27, Improving HK Retail Beneficiary
- HSCI Index Rebalance Preview and Stock Connect (Sep 2026): Adds Outnumber Deletes as IPOs Dominate
- Aequitas: Kelun-Biotech Placement – Steady Performance; Valuation May Temper Appeal
- Aequitas: EACON Group IPO Trading – Ok-Ish Retail And Insti Demand, Still Expensive
- Aequitas: Momenta IPO Trading – Retail Demand Relatively Weak but Insti Subs Strong
- Sieyuan Electric (思源电气) A+H Pre-IPO: Early Thoughts
- Aequitas: GigaDevice A/H Lockup Expiry – US$1.4bn Lockup Release with 5x Gains
- Pre-IPO Gem Co Ltd (A/H Listing) – The Strengths Are Obvious, but Challenges Are Inevitable
Luxshare H Share Listing (2475 HK): The Investment Case
- Luxshare Precision Industry (2475 HK) is a leading manufacturer of electronic components. It is seeking to raise US$3.1 billion.
- Luxshare is a global leader in the PIMS industry, holding top positions in the PIMS markets of consumer electronics, automotive electronics, and data centres by revenue in 2025.
- The investment case is based on a strong market position, acquisition-driven growth, a relatively stable margin profile, an expected return to cash generation, and a strong balance sheet.
Perfect Medical (1830 HK): Firming Up Outlook For FY27, Improving HK Retail Beneficiary
- Perfect Medical Health Management (1830 HK) has had a tough last two years, with profits/revenues falling 31%/44%, respectively, from FY24 to FY26 as the retail environment in HK was soft.
- The last few quarters have seen revenue stabilization and, more recently, a gradual improvement, as the company has flagged in its post-results report (with cost savings gradually kicking in).
- We now estimate a modest 7%/14% revenue/profit growth for FY27, with net margin improvement to 20%. Stock trades at 7.8x FY27 PE with a 13.5% dividend yield and net cash.
HSCI Index Rebalance Preview and Stock Connect (Sep 2026): Adds Outnumber Deletes as IPOs Dominate
- There could be 55 potential inclusions and 14 potential deletions for the Hang Seng Composite Index in September. There are more stocks that are close on market cap/liquidity.
- A lot of the potential adds are very recently listed stocks that have a limited trading history. The low free float could lead to price spikes in the stocks.
- There are stocks that have a very high percentage of holdings via Stock Connect and there could be some unwinding prior to the stocks becoming Sell-only.
Aequitas: Kelun-Biotech Placement – Steady Performance; Valuation May Temper Appeal
- Sichuan Kelun-Biotech Biopharmaceutical (6990 HK) is looking to raise up to US$350m from a primary placement.
- Kelun is a China-based biopharmaceutical company focused on developing and commercializing innovative oncology therapies, with a particular emphasis on antibody-drug conjugates (ADCs), bispecific antibodies, and other biologics.
- In this note, we will talk about the placement and run the deal through our ECM framework.
Aequitas: EACON Group IPO Trading – Ok-Ish Retail And Insti Demand, Still Expensive
- EACON Group Co., Ltd (1868613D CH) raised around US$293m in its Hong Kong IPO.
- EACON designs, develops, and integrates the core intelligent components, such as autonomous driving software, domain controllers, and drive-by-wire platforms.
- We have looked at the company’s background and pricing in our earlier note, in this note we talk about the trading dynamics.
Aequitas: Momenta IPO Trading – Retail Demand Relatively Weak but Insti Subs Strong
- Momenta Global (6880 HK) raised ~US$750m in its upcoming Hong Kong IPO.
- It is a leading autonomous driving company, focused on developing and commercializing driving automation technologies to improve safety and efficiency in mobility and logistics.
- In this note, we will talk about the demand and trading dynamics.
Sieyuan Electric (思源电气) A+H Pre-IPO: Early Thoughts
- Sieyuan Electric, a power equipment manufacturer, is seeking an A+H listing. CITIC is the sole sponsor.
- We look at the company’s core segments: switchgear, transformers and protection and automation.
- We discuss our preliminary thoughts on the company’s valuation based on A-H premium.
Aequitas: GigaDevice A/H Lockup Expiry – US$1.4bn Lockup Release with 5x Gains
- GigaDevice Semiconductor (3986 HK) (GD), an IC design house, raised around US$690m in its H-share listing. Its cornerstone investors will soon be released from their lockup.
- GD is a leading specialty memory chip and MCU company in mainland China.
- In this note, we will talk about the lockup dynamics and possible placement.
Pre-IPO Gem Co Ltd (A/H Listing) – The Strengths Are Obvious, but Challenges Are Inevitable
- GEM has established a three-in-one closed-loop model of “critical metal recycling-battery recycling-new energy materials”. GEM is superior to competitors in terms of integration/cost optimization in a single manufacturing process.
- The slowdown in downstream new energy vehicle and European/American demand growth or subsidy reduction will impact the demand for ternary materials, which may affect the achievement of 2026-2027 growth targets.
- There could be a discount of 25%-35% compared to the A-shares. Conservative scenario is P/E of 12-13x. Neutral scenario is P/E of 14-15x. Optimistic scenario is P/E of 16-17x.
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