Daily Brief China: Shanghai Biren Intelligent Technology, Nameson Holdings, Shandong Gold Mining Co., Ltd, PDD Holdings, Shenzhen Edge Medical, Shaanxi Micot Pharmaceutical Technology and more

• Shanghai Biren Intelligent Technology, a GPGPU chips and computing solutions provider, aims to raise up to US$624m in its Hong Kong listing.
• According to CIC, Biren was the first company in China to package dual AI computing dies using 2.5D chiplet technology and the first to support advanced interconnection specifications.
• We have looked at the company’s past performance in our previous note. In this note, we talk about valuations.

• Biren Technology, a Shanghai-based developer of GPGPU chips and GPGPU-based intelligent computing solutions, is expected to price the offering next week.
• The company’s Global Offering puts the initial price range per share at HK$17.00 to HK$19.60, implying a market cap of ~HK$44.6B or ~$5.7B at midpoint on a fully diluted basis.   
• After enjoying years of technological and market share dominance in the GPU space in China, NVIDIA faces growing competition from “four little dragons” – MetaX, Moore Threads, Biren and Enflame.

• Nameson Holdings is a leading Hong Kong-based knitwear manufacturer with a primary focus on producing sweaters and other knitted apparel for major international brands, most notably Uniqlo.
• The company presents a compelling investment case for income-oriented investors due to its consistently high dividend yield and a commitment to a high payout ratio, supported by resilient profitability and an improving balance sheet.
• Key risks and limitations to growth include a high dependency on its largest customers, exposure to the cyclicality of the apparel industry, flat top-line revenue growth, and volatility in raw material prices.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Earnings inflection is underway: Spot gold (>USD 4,400/oz), rising self-mined output (60t in 2025E), and mix shift drive a step-change in EBITDA and cash flow from FY25 onward.
• Valuation disconnect persists: Shandong Gold trades at ~3× EV/EBITDA—lowest in the China/HK gold peer set—despite leverage peaking in FY25 and de-gearing visible into FY26.
• Index mechanics mask upside: Exclusion from GDX due to revenue-purity rules limits passive flows, leaving scope for active-driven re-rating as earnings and margins normalise

• PDD Holdings has demonstrated a remarkable growth trajectory, driven by its innovative social commerce model in China (Pinduoduo) and its aggressive, low-price international expansion strategy (Temu).
• The company’s asset-light, direct-to-manufacturer model allows for significant cost advantages and strong cash flow generation, positioning it as a price leader in the competitive e-commerce landscape.
• While growth remains robust, the company faces significant risks from intense domestic and international competition, increasing regulatory scrutiny in multiple jurisdictions, and the challenge of sustaining profitability amid heavy investment in global expansion.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Shenzhen Edge Medical, a China-based surgical robotic company, is seeking to raise at least USD 100 million via a Hong Kong listing. MS and GF are the joint book runners.
• In this note, we look at the company’s main product, MP1000, and assess the selling point and the market dynamics.
• We also look at the company’s management experiences and pre-IPO investors.

• In addition to fierce competition in GLP-1 market, Micot also lacks experience in drug production, market promotion and sales. Any mistake in any link may lead to poor market acceptance.
• After a product is launched on the market, whether it can smoothly enter the NRDL and how it is priced will directly determine its market penetration speed and peak sales. 
• The core drivers of Micot’s valuation mainly depend on the future clinical data and market space of pipeline. Valuation could be lower than peers due to lack of commercialized products.