In today’s briefing:
- Hang Seng Indexes: Announcement Tomorrow; Potential Changes & Updated Flows
- Hansoh Pharmaceutical (3692 HK): Placing Shares to Fund R&D Amid Stellar 1H Performance
- Hillhouse’s Competing Bid Challenges Smart Share Global’s Management-Led Privatization
- Ascletis Pharma (1672 HK): Placement Bleak; Commercialization To Take Time; Lack Formidable Pipeline
- Wanguo Gold Group Placement – Industry Momentum Strong, Stock Run-Up Quite a Bit, but Deal Is Small
- Yum China: Focus On Innovation & Customer Engagement to Foster Solid Growth Channels Via Advanced Digital Capabilities!
- Megatronix Inc. Pre-IPO: Favorable Growth Drivers, But Losses and Concentration Risks Persist
- HK-Listed Apparel & Footwear Screener Aug 2025: Lever Style (1346 HK) Conference Call
- Lucror Analytics – Morning Views Asia
- Wuxi Biologics (2269 HK) 25H1 – Concerns Behind the Performance Rebound
Hang Seng Indexes: Announcement Tomorrow; Potential Changes & Updated Flows
- Hang Seng Indexes announces changes to the Hang Seng Index, Hang Seng China Enterprises Index, Hang Seng TECH Index, HSIII Index, HSHKBIO Index and HSCI Index post market close tomorrow.
- The net round-trip trade across the stocks is estimated to be HK$54.3bn (US$6.9bn) with big impact in a lot of names.
- The largest inflows will be in Geely Auto if added to the HSTECH, Pop Mart if added to the HSCEI and HSI, and Horizon Robotics due to a FAF increase.
Hansoh Pharmaceutical (3692 HK): Placing Shares to Fund R&D Amid Stellar 1H Performance
- Hansoh Pharmaceutical Group (3692 HK) is placing 108M shares at the price of HK$36.30 per share. 65% of the proceeds will be used for the R&D of new innovative drugs.
- Hansoh’s late-stage pipeline seems to be interesting, as its key focus areas being oncology and metabolic diseases, which are among the fast-growing therapeutic areas, with huge addressable patient population.
- Hansoh has announced better-than-expected 1H25 result, with both revenue and net profit beating consensus. Innovative drugs revenue increased 22% YoY to RMB6B, contributing 82.7% of total revenue.
Hillhouse’s Competing Bid Challenges Smart Share Global’s Management-Led Privatization
- Smart Share Global’s management consortium signed a definitive agreement to acquire the company at $1.25/ADS, later challenged by Hillhouse’s $1.77/ADS bid.
- Hillhouse’s competing bid is 40% higher than management’s offer, with significant shareholder stakes potentially influencing the outcome.
- EM’s business is unprofitable, with declining power bank rentals, but holds a net cash pile of $1.6/ADS.
Ascletis Pharma (1672 HK): Placement Bleak; Commercialization To Take Time; Lack Formidable Pipeline
- Ascletis Pharma Inc (1672 HK) announced the placement of 52.4M shares for subscription at HK$16.45 per share.
- The company intends to use 90% of proceeds for further R&D of its drug candidates with respect to both subcutaneously injected peptides and oral peptides, into clinical trials for obesity.
- The company will take time to cash in fully from the commercialization efforts in near future, given the limited opportunity it has in terms of the drug pipeline basket.
Wanguo Gold Group Placement – Industry Momentum Strong, Stock Run-Up Quite a Bit, but Deal Is Small
- Wanguo International Mining (3939 HK) is looking to raise upto US$96m via a 2.1% stake sale, while Prominent Investment Holding is looking to pare down another 0.7%, to raise US$32m.
- The company intends to use the proceeds towards funding the expansion of its Gold Ridge Mine in the Solomon Islands, along with other business development purposes.
- In this note, we will talk about the placement and run the deal through our ECM framework.
Yum China: Focus On Innovation & Customer Engagement to Foster Solid Growth Channels Via Advanced Digital Capabilities!
- Yum China Holdings, Inc. reported strong financial results for Q2 2025, marked by new record levels in revenue, operating profit, and operating margin.
- The company’s dual-focused strategy emphasizing both same-store sales and system sales growth has yielded significant results.
- Notably, overall same-store sales grew by 1%, driven by a 17% increase in same-store transactions at Pizza Hut and 5% system sales growth at KFC.
Megatronix Inc. Pre-IPO: Favorable Growth Drivers, But Losses and Concentration Risks Persist
- Megatronix Inc. (1888582D CH) is looking to raise about US$100m in its upcoming Hong Kong IPO.
- MI is an innovation-driven automotive technology company. MI focuses on developing and delivering AI-powered integrated domain control solutions that enable automakers to build the next generation of software-defined vehicles.
- In this note, we look at the company’s past performance.
HK-Listed Apparel & Footwear Screener Aug 2025: Lever Style (1346 HK) Conference Call
- Tariff confusion has hit stocks, but the names in focus continue to be resilient as they pass on the costs, and the future impact of demand is to be determined.
- The investing world is now searching for stocks that are not directly affected by Trump tariffs. Lever Style (1346 HK) is one such stock trading at 7.2x trailing PE.
- With a trailing dividend yield of 6.2%, net cash of 27% of market cap, and impressive metrics on growth, this is a stock worth exploring.
Lucror Analytics – Morning Views Asia
- In today’s Morning Views publication we comment on developments of the following high yield issuers: Country Garden, Softbank Group, Xiaomi Corp, Sunny Optical
- UST yields declined 2-3 bps across the curve yesterday, with limited catalysts on the macro front and amid a sell-off in equities. The yield on the 2Y UST fell 2 bps to 3.75%, while the yield on the 10Y UST declined 3 bps to 4.31%. Equities retreated, driven by a sell-off in tech stocks. The S&P 500 declined 0.6% to 6,411, while the Nasdaq slumped 1.5% to 21,315.
- In the US, July housing starts rose 5.2% m-o-m (-1.8% e / 5.9% p) to an annualised 1.43 mn units. That said, the July (preliminary) building permits fell 2.8% m-o-m (-0.5% e / -0.1% p) to an annualised 1.35 mn units.
Wuxi Biologics (2269 HK) 25H1 – Concerns Behind the Performance Rebound
- WuXi Bio’s 25H1 growth was driven by XDC against the backdrop of BD wave of innovative drug assets. Coupled with biotech booming market, we witnessed obvious recovery in CXO’s performance.
- Intensive share reduction by major shareholders has weakened market confidence in long-term value. Given Li Ge’s rich experience in capital operation, WuXi Bio’s valuation potential may have been fully realized.
- Current investment logic has shifted to the growth of overseas BD/licensing cooperation based on China’s low-priced but high-quality innovative drugs due to engineer dividend, which may have certain growth ceilings.
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