In today’s briefing:
- SICC A/H Listing – Needs a Very Deep Discount
- A/H Premium Tracker (To 8 Aug 2025): Premium Hs Unwind, Again. Beautiful Skew Flavour Continues
- HK Connect SOUTHBOUND Flows (To 8 Aug 2025); Big Swing Out of ETFs into TECH
- Chongqing Taiji Industry (Group) (600129 CH) – Investors Are Betting on the Merger with China TCM
- Mobvoi Inc. Revenue From AIGC Solutions Continues To Post Hyper Growth, TicNote Debuted in April
- Lucror Analytics – Convertibles Brief
- Conant Optical (2276 HKG): Growth Optics Sharp & Clear with Expanding Margins, Robust Sales in 1H25
- Lucror Analytics – Morning Views Asia
SICC A/H Listing – Needs a Very Deep Discount
- SICC (688234 CH) , a manufacturer of high-quality SiC substrates, aims to raise up to US$260m in its H-share listing.
- In terms of market share, as per Frost & Sullivan, based on 2024 sales, its market share was at 16.7%.
- We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the IPO pricing.
A/H Premium Tracker (To 8 Aug 2025): Premium Hs Unwind, Again. Beautiful Skew Flavour Continues
- AH premia down, bouncing back. “Beautiful Skew” continues generally, but curve skew less pronounced. Average AH moves remain volatile – often the sign of significant distribution changes.
- The Quiddity Portfolio is now smaller, less concentrated, and the net H vs A bias is MUCH smaller. Alpha continues, predicated on beautiful skew. But pair vol is very high.
- The data tables below update on a daily basis in the Tools section of Smartkarma. The SOUTHBOUND Flow Monitor and AH Monitor are both there free for SK readers.
HK Connect SOUTHBOUND Flows (To 8 Aug 2025); Big Swing Out of ETFs into TECH
- Gross SOUTHBOUND volumes just over US$16+bn a day this past 5-day week. A comedown from the previous week. Net buying OK at just over +US$550mm/day. One-third of the previous week.
- Last week’s reco was Great Wall Motor (2333 HK) up 9.8% on the week, and H/A spread contracted 6.2%.
- The data tables below update on a daily basis in the Tools section of Smartkarma. The SOUTHBOUND Flow Monitor and AH Monitor are both there free for SK readers.
Chongqing Taiji Industry (Group) (600129 CH) – Investors Are Betting on the Merger with China TCM
- The current channel inventory digestion has been ongoing for nearly a year. If the terminal sales data in 25Q3 improves, it is expected to support the revenue recovery in 25Q4.
- China TCM and CNPGC had signed relevant agreement on the free transfer of equity. Investors think this is paving the way for the future integration of China TCM and Taiji.
- Investors have reignited interest in betting on China TCM’s privatization and merger with Taiji .According to Taiji, CNPGC will still fulfill its commitment to resolving the issue of horizontal competition
Mobvoi Inc. Revenue From AIGC Solutions Continues To Post Hyper Growth, TicNote Debuted in April
- Mobvoi Inc., a Google-backed provider of AIGC software solutions and TicWatch maker, will announce interim results for the six months ended June 30, 2025, soon.
- The AI firm currently adjusts its business strategy, shifting to AIGC business model from traditional project-based revenue generating model.
- In April 2025, Mobvoi unveiled TicNote, a compact AI-powered voice recorder. It’s a separate device from smartphone, which gathered significant attention from media and users.
Lucror Analytics – Convertibles Brief
- Credit markets tightened on Friday, with the iTraxx X-Over narrowing 3 bps to 268 bps.
- European bourses rose 0.2-0.9% except for the FTSE 100 and DAX, which both fell 0.1%.
- In the US, the S&P 500 and Nasdaq were up 0.8% and 1.0%, respectively.
Conant Optical (2276 HKG): Growth Optics Sharp & Clear with Expanding Margins, Robust Sales in 1H25
- In 1H25, Shanghai Conant Optical (2276 HK) reported revenue rise of 11% to RMB 1.1M buoyed by growth across segments like multifunctional lens (up 9%) and standardized lens (up 20%).
- In 1H25, the company kept up with its consistency of expanding its gross margins period after period, as margin expanded from 39.2% in 1H24 to 41% in 1H25 (2024: 38.6%).
- Shanghai Conant’s robust demand outlook, capacity expansion plans, R&D initiatives and margin strength offer a strong long term secular growth story.
Lucror Analytics – Morning Views Asia
- UST yields rose on Friday, in a continuation of Thursday’s increase following the weak 30Y notes auction.
- In addition, there were no macro catalysts, ahead of Tuesday’s CPI data release (which may alter market expectations for the rate cuts currently priced in).
- The yield on the 2Y UST rose 3 bps to 3.76%, while that on the 10Y UST was up 3 bps at 4.28%.
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