Daily Brief China: NIO , Contemporary Amperex Technology (CATL), Copper, Jiangsu Hengrui Medicine, Blackstone , Meituan, Health And Happiness (H&H) and more

• NIO (9866 HK) is looking to raise around US$450m via a primary placement in Hong Kong.
• The shares haven’t done much this year or ever since they were listed.
• In this note, we will talk about the placement and run the deal through our ECM framework.

• Given the slew of A/H offerings in the Hong Kong IPO pipeline, in this note, we talk about the overall A/H premiums currently.
• We also had a quick look at the past A/H listing performance, including subscription rates and A/H premiums at the time of listing.
• Overall, most of the A/H listings haven’t done much in the near term, with a few exceptions.

• Copper pricing reporter Han Lu, sulfuric acid reporter Ong Jialun, and China content reporter Lucy Tang share insights on copper market trends and trade flows
• China copper concentrates assessments have hit negative levels in 2025 due to tight supply and growing demand from China and India
• Smelters are running at production losses due to low TCRC but continue to buy in the market to meet output targets and maintain production levels

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• Jiangsu Hengrui Medicine (600276 CH) and Merck entered into an exclusive license agreement for HRS-5346, an investigational oral small-molecule drug. The collaboration positions Merck to challenge two other pharma giants.
• Hengrui has granted Merck exclusive rights to develop, manufacture, and commercialize HRS-5346 worldwide for an upfront payment of $200M. Hengrui is also eligible to receive milestone payments up to $1.77B.
• Hengrui reported strong 19% YoY revenue growth during 9MFY25 to RMB 20B, while profits rose 6% YoY to RMB 5B. The company will report full-year 2024 result on March 31.

• Rava has enlisted Blackstone MDs to spearhead growth in Japan, highlighting their intent to expand operations in the region.
• GreenFort and Gaw have partnered to explore land lease opportunities in Australia, with a focus on showcasing their collaboration on MTD TV.
• SC Capital, based in Singapore, has successfully closed their sixth APAC fund at $900M, demonstrating their commitment to making opportunistic investments in the region.

• Meituan reported C4Q24 revenue in-line, and non-IFRS OP miss 7.9%/1.9% vs. our estimate/consensus, due to extra Opex on purchasing GPU, while core biz profitability improved.
• We see membership initiatives and enhancing O2O penetration as the main catalyst in 2025, and the downside risk on competition, social security, and overseas investment are limited.
• We rise TP to HK$196 to factor in the promising OP growth trajectory and keep as TOP BUY in China e-commerce.

• Health and Happiness’ (H&H) FY 2024 results were soft, as the company continued to report weaker earnings and margins from the Baby Nutrition & Care (BNC) business in Mainland China.
• The weakness was only partly offset by continued growth in the Adult Nutrition & Care (ANC) and Pet Nutrition & Care (PNC) segments.
• Positively, management guided for the infant milk formula business in Mainland China to improve during H1/25 (after a 25% revenue decline in FY 2024), supported by completion of the transition to new Guobiao regulatory standards as well as continued market share gains.