In today’s briefing:
- OmniVision Integrated Circuits Group A/H Listing – PHIP Updates and Thoughts on A/H Premium
- HashKey Holdings (3887 HK): A Challenging Debut Despite Oversubscription
- CMOC Group (603993 CH): Brazil Gold Deal Lifts Diversification; Valuation Tied to Metals Regime
- Zijin Gold Intl (2259 HK): Gold Leverage Intact; December GDX Non-Inclusion a Near-Term Overhang
- Simcere Pharma (2096 HK): Agreement With Vigonvita Positive, Pipeline and Approvals Key Strength
- Alibaba Group: What’s Behind the Qwen3-Max Momentum- Inside the Model Strategy Shaping Real-World Adoption!
- Zhejiang Sanhua Intelligent Controls IPO Lockup – US$800m Cornerstone Release
- Shanghai Forest Cabin PHIP Update: Strong Topline and Margins in 1H25
- Pre-IPO Shanghai Forest Cabin Cosmetics Group (PHIP Updates) – Some Points Worth the Attention
- Hanx Biopharm (翰思爱泰) Pre-IPO Quick Comment: Innovative I/O Product with Early Signals
OmniVision Integrated Circuits Group A/H Listing – PHIP Updates and Thoughts on A/H Premium
- Omnivision Intgrated Circuit (603501 CH, OVIC), a semiconductor company, aims to raise around US$1bn in its H-share listing.
- OVIC, is the world’s third largest smartphone CIS and the largest automotive CIS provider with a market share of 32.9% based on revenue in 2024, according to Frost & Sullivan
- We have looked at the company’s past performance in our previous note. In this note, we talk about the recent updates and likely A/H premium.
HashKey Holdings (3887 HK): A Challenging Debut Despite Oversubscription
- HashKey (3887 HK) confirmed its IPO price at HK$6.68, 3.9% below the top end. Despite favourable subscription and placement levels, this suggests some concerns.
- Digital asset-related names, BTC and ETH, have retreated by an average of 11.6% last week, implying a challenging environment for the debut.
- It is priced at 14.5x FY26 P/S, vs. 10.5x (peer average) and only a 23% discount to Robinhood Markets (HOOD US). It is only attractive at the low-end price.
CMOC Group (603993 CH): Brazil Gold Deal Lifts Diversification; Valuation Tied to Metals Regime
- Brazil gold acquisition improves diversification and earnings stability; deal appears cash-funded and value-accretive at current gold prices.
- Asset quality improves on a risk-adjusted basis, though Brazilian gold mines are higher-cost and shorter-life than tier-1 peers.
- Valuation already reflects elevated copper and gold prices; upside now depends on commodity price persistence, not rerating.
Zijin Gold Intl (2259 HK): Gold Leverage Intact; December GDX Non-Inclusion a Near-Term Overhang
- Zijin trades at senior multiples after its IPO re-rating, with valuation now anchored to execution and cost normalization rather than index-driven flows.
- Elevated gold prices support cash flows, but upside from here requires sustained bullion strength or visible AISC improvement.
- December GDX non-inclusion removes a near-term catalyst but does not alter asset quality or medium-term fundamentals.
Simcere Pharma (2096 HK): Agreement With Vigonvita Positive, Pipeline and Approvals Key Strength
- Simcere Pharmaceutical Group (2096 HK) entered into a license agreement with Vigonvita Life Science Co. Ltd in respect of new indications (RSV and HMPV) of VV116 (Deuterated Remdesivir Hydrobromide).
- There is no innovative small molecule antiviral drug approved for RSV infection globally. The development of effective RSV treatment represents a huge unmet medical need worldwide.
- The licensing deals signed over the last few months alongside strong innovative drug portfolio, approvals and strong future pipeline makes it a bullish case.
Alibaba Group: What’s Behind the Qwen3-Max Momentum- Inside the Model Strategy Shaping Real-World Adoption!
- Alibaba Group’s recent results demonstrate a mixture of performance across its different business segments, with significant growth in some areas, tempered by challenges in others.
- Positively, the company reported a 15% year-over-year increase in total revenue when excluding contributions from Sun Art and Intime, driven by strong performance in key areas such as Cloud Intelligence, which saw a remarkable 34% revenue growth.
- This growth was largely fueled by sustained demand for AI and the increasing usage of public cloud services, evidencing Alibaba’s strong positioning in the AI and cloud sectors.
Zhejiang Sanhua Intelligent Controls IPO Lockup – US$800m Cornerstone Release
- Zhejiang Sanhua Intelligent Controls (2050 HK), raised around US$1.4bn in its H-share listing. The lockup on its cornerstone investors is set to expire soon.
- ZSIC is a market leader in a number of products, with commanding market share both domestically and globally.
- In this note, we will talk about the lockup dynamics and possible placement.
Shanghai Forest Cabin PHIP Update: Strong Topline and Margins in 1H25
- Shanghai Forest Cabin Biological-Tech (SFCBT HK) is looking to raise US$140m in its upcoming Hong Kong IPO.
- SFC is the leader among China’s premium domestic skincare brands with a focus on anti-wrinkle and firming skincare market.
- We have looked at the company’s past performance in our previous note. In this note, we will undertake a PHIP update.
Pre-IPO Shanghai Forest Cabin Cosmetics Group (PHIP Updates) – Some Points Worth the Attention
- FOREST CABIN’s been subject to administrative penalties for false advertising. The natural ingredient that consumers truly pursue holds the highest premium in essence oil, but its content/efficacy is exaggerated.
- Pre-IPO valuation reached over RMB3.8bn. Some investors may believe that, given that FOREST CABIN’s profitability has initially been proven, its valuation is attractive. However, think FOREST CABIN have some issues.
- Valuation of FOREST CABIN should be lower than Mao Geping. A comfortable range could be P/E of 20-30x. If future growth declined/profit margin deteriorates, valuation may fall to 10-20x P/E.
Hanx Biopharm (翰思爱泰) Pre-IPO Quick Comment: Innovative I/O Product with Early Signals
- Hanx Biopharm, a China-based clinical-stage biotech company, is looking to raise at least USD 100 million via a Hong Kong listing. ICBCI and CITIC are the joint book runners.
- In this note, we look at the company’s core product, HX009, and assess the selling point around the core product.
- We also look at the company’s pre-IPO investors and management team.
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