In today’s briefing:
- Quiddity Leaderboard STAR 50/100 Sep25: Some High-Impact Names; New Sector-Neutral Pair Trade Ideas
- Eternal Beauty IPO – Not Expensive but Its Not Enticing Either
- Foshan Haitian Flavouring A/H Trading – Very Strong Demand, Weak Price Momentum
- Foshan Haitian Flavouring H Share Listing (3288 HK): Trading Debut
- Zhou Liu Fu Pre-IPO: Not Blindingly Cheap but Peer Momentum Is Strong
- CaoCao IPO: Forecasts and Valuation
- Zhou Liu Fu (6168 HK) IPO: Not Our Cup of Tea
- FS.COM Limited Pre-IPO – Positioned to Capture Structural Demand in Networking
- [IO Fundamentals 2025/24] Retail Revival Vs. Real Estate Rut: Uneven China Recovery Tempers Outlook
- Pre-IPO Saint Bella (PHIP Updates) – Some Points Worth the Attention
Quiddity Leaderboard STAR 50/100 Sep25: Some High-Impact Names; New Sector-Neutral Pair Trade Ideas
- STAR 50 Index is a tech-focused, blue-chip index in Mainland China which tracks the top 50 largest and most liquid names in the STAR market of the Shanghai Stock Exchange.
- STAR 100 index tracks the next 100 names (51st-150th ranks) and it represents the mid-cap segment of the STAR market.
- In this insight, we take a look at the potential ADDs/DELs for the STAR 50 and STAR 100 indices for the September 2025 index rebal event.
Eternal Beauty IPO – Not Expensive but Its Not Enticing Either
- Eternal Beauty Holdings Limited is looking to raise around US$144m in its Hong Kong IPO.
- Eternal Beauty is the largest brand management company of perfumes in the combined markets of Mainland China, Hong Kong and Macau, in terms of retail sales in 2023.
- We have looked at the company’s past performance in our previous note. In this note we talk about valuations.
Foshan Haitian Flavouring A/H Trading – Very Strong Demand, Weak Price Momentum
- Foshan Haitian Flavouring & Food (603288 CH) (FHCC), China’s leading condiments company, raised around US$1.5bn (including over-allocation) in its H-share listing.
- FHCC is China’s leading condiments company within its main product categories of soy sauce, oyster sauce, flavored sauce, specialty condiment products and other products.
- We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the trading dynamics.
Foshan Haitian Flavouring H Share Listing (3288 HK): Trading Debut
- Foshan Haitian Flavouring & Food Company (3288 HK) priced its H Share at HK$36.30 to raise HK$10,128.9 million (US$1.3 billion) in gross proceeds. The H Share will be listed tomorrow.
- I discussed the H Share listing in Foshan Haitian Flavouring H Share Listing: The Investment Case.
- Haitian had the highest oversubscription rates among recent large AH listings. The AH discount implied by the offer is attractive.
Zhou Liu Fu Pre-IPO: Not Blindingly Cheap but Peer Momentum Is Strong
- Zhou Liu Fu Jewellery Co., Ltd. (1716396D CH) is looking to raise up to $143m in its upcoming Hong Kong IPO.
- It is a leading and fast growing jewellery franchise in China offering a diverse range of products through offline and online sales channels.
- In this note, we examine the IPO dynamics, and look at the firm’s valuation.
CaoCao IPO: Forecasts and Valuation
- Chinese ride-hailing platform CaoCao plans to issue 44.2m shares at the HKEx IPO at an indicative price of HK$41.9/share, and raise net proceeds of US$219m at a valuation of HK$28.9bn.
- CaoCao’s earnings have seen strong growth during the last 2-3 years, however, much of this growth is driven through debt financing which has resulted in a highly geared balance sheet.
- Our valuation analysis suggests that CaoCao (2643 HK) ‘s IPO is overvalued at the indicative IPO price and we would recommend staying on the sidelines.
Zhou Liu Fu (6168 HK) IPO: Not Our Cup of Tea
- Zhou Liu Fu Jewelery Co., Ltd. (6168 HK)‘s IPO does not appeal to us, given deteriorating profitability, smaller size, and inferior financials.
- Its IPO price of HK$24.0 appears to be fair relative to the peers’ valuation, leaving limited upside and downside in the secondary market.
- We value the stock at HK$22.5-25.7, based on 20-30% discount to Chow Tai Fook Jewellery (1929 HK). It is not another Laopu Gold (6181 HK).
FS.COM Limited Pre-IPO – Positioned to Capture Structural Demand in Networking
- FS.COM Limited (FS) is looking to raise at least US$100m in its upcoming Hong Kong IPO.
- FS presents a compelling growth story rooted in structural demand for enterprise-grade networking and a differentiated DTC model that delivers both scale and customer proximity.
- Its dominant SKU breadth, global Fortune 500 penetration, and aggressive shift toward high-performance solutions support sustained revenue expansion.
[IO Fundamentals 2025/24] Retail Revival Vs. Real Estate Rut: Uneven China Recovery Tempers Outlook
- China’s May retail sales surged 6.4% YoY, driven by holiday spending and trade-in programs, though fading property prices may dampen future consumer sentiment.
- China’s new home prices fell 3.5% YoY in May, marking a 23-month decline streak, though policy support shows signs of easing the prolonged property downturn.
- Iron ore port inventories rose in mid-June as weaker steel margins cut pig iron output, reducing pick-up volumes and softening near-term demand despite steady arrivals.
Pre-IPO Saint Bella (PHIP Updates) – Some Points Worth the Attention
- The mismatch between supply and demand in the postpartum center market has become apparent, coupled with consumption downgrades in high-end market, which has limited the growth potential of SAINT BELLA.
- The gross margin of SAINT BELLA that focuses on high-end postpartum services is surprisingly lower than that of traditional general hospital business, indicating that the Company’s profitability is disappointing.
- SAINT BELLA attempts to attract capital through the story of “high-end services+overseas expansion”,but its model has contradictions.The essence of IPO is “a last ditch effort” for capital to cash out.
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