In today’s briefing:
- Quiddity Leaderboard CSI Medical Dec25: US$300mn+ One-Way; Some Changes to Expectations
- Smart Share Global (EM US): Hillhouse Emerges with a Competing Offer
- ECM Weekly (18 August 2025)- Eve Energy, CNGR, Will Semi, 52 Toys, JSW, Bluestone, Tuas, Hexaware
- Kangji Medical (9997 HK) Privatization – The Cancellation Price Is Not Attractive
- Weekly Deals Digest (17 Aug) – Kangji Medical, HKBN, Shengjing, Carenet, Shibaura, Rezil, Yomeishu
- SITC International (1308 HK): A Charming 1H25
Quiddity Leaderboard CSI Medical Dec25: US$300mn+ One-Way; Some Changes to Expectations
- CSI Medical Service represents the top 50 largest and most-liquid stocks involved in medical devices, medical care, medical informatization, and other medical theme from the Shanghai, Shenzhen and Beijing Exchanges.
- In this insight, we take a look at the potential ADDs and DELs leading the race for the semiannual index rebal event in December 2025.
- We expect up to five ADDs and four DELs for the CSI Medical Service index during this index review event based on the latest available data.
Smart Share Global (EM US): Hillhouse Emerges with a Competing Offer
- Smart Share Global (EM US) has disclosed a competing non-binding offer from Hillhouse at US$1.77 per ADS, a 41.6% premium to the Trustar offer.
- The Hillhouse proposal meets the criteria for a superior proposal. The support agreement enables management rollover shareholders to switch allegiance from Trustar to Hillhouse.
- Unlike the Trustar offer, the Hillhouse offer is above the last reported net cash (US$1.62 per ADS). The high premium suggests a low probability that Trustar bumps.
ECM Weekly (18 August 2025)- Eve Energy, CNGR, Will Semi, 52 Toys, JSW, Bluestone, Tuas, Hexaware
- Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
- On the IPO front, a number of companies are lining up to start 2H listing season, which is likely to be one of the busiest over the past few years.
- On the placements front as well, given ongoing earnings annoucement there were only one large placement last week.
Kangji Medical (9997 HK) Privatization – The Cancellation Price Is Not Attractive
- Valuation based on Cancellation Price hasn’t fully reflected the potential of Weijing Medical Robot business, nor does it reflect the future growth driven by import substitution due to centralized procurement.
- The medical device sector is expected to have a strong trend of performance reversal/valuation repair. Kangji’s fundamentals/prospects are moving in a positive direction. Reasonable valuation is HK$12-15 billion at least.
- The current Cancellation Price of HK$9.25 is too low to normally reflect the Company’s true fundamentals and prospects. Therefore, we’re worried that there would be some investors opposing this privatization.
Weekly Deals Digest (17 Aug) – Kangji Medical, HKBN, Shengjing, Carenet, Shibaura, Rezil, Yomeishu
- A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
- ECM developments: Tata Capital Limited (TATACAP IN) is seeking to raise US$2.0 billion.
- Event-Driven developments: Hangzhou Kangji Medical Instrument Co., Ltd. (9997 HK), HKBN Ltd (1310 HK), Carenet Inc (2150 JP), Shibaura Electronics (6957 JP), Rezil (176A JP), Yomeishu Seizo (2540 JP).
SITC International (1308 HK): A Charming 1H25
- The 1H25 net profit of US$630m (+79.7% YoY) for SITC International (1308 HK) is impressive. It maintains a generous 70% payout ratio, yielding 4.8% for the interim.
- Its outlook for 2H25 stays positive despite the recent pull-back in spot rates. Overall demand-supply dynamics continue to be favourable in the short and medium term.
- With interim earnings already accounting for 58% of full-year consensus, there is room for an upgrade. At 3.3x P/B, it is not expensive given 30-40% ROEs.
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