In today’s briefing:
- EQD | Hong Kong Single Stock Options Weekly
- EQD | Hong Kong Index Options Weekly – HSI and HSCEI
- JST Group Pre-IPO: Growing Rapidly but with Some Accounting Red Flags
- Ascentage Pharma (6855.HK) – The Future Valuation Leap Is Worth Looking Forward To
- IO Weekly Technicals Review [2024/47]: IO Uptrend to Continue
- CRRC (1766): Still Far from the Highs
EQD | Hong Kong Single Stock Options Weekly
- Implied vols were lower across all sectors on the week with option volumes peaking on Friday.
- Post-Earnings vol crush helped push vols lower for key names.
- Tencent stands out with low implied vols over the past year, high liquidity and is trading almost 17% below its 52 week high.
EQD | Hong Kong Index Options Weekly – HSI and HSCEI
- Move away from short gamma levels and position covering help push HSI implied vols lower on the week.
- Short dated Puts are still very active in HSCEI at the 6300 and 6800 strikes.
- Both HSI and HSCEI implied vols are trading about 2 points above their pre-stimulus levels.
JST Group Pre-IPO: Growing Rapidly but with Some Accounting Red Flags
- JST Group (1703609D CH) is looking to raise up to US$100m in its upcoming Hong Kong IPO.
- It is China’s largest and most popular e-commerce SaaS ERP provider to facilitate the connection of merchants with over 400 e-commerce platforms in China and across the world.
- In this note, we look at the firm’s past performance.
Ascentage Pharma (6855.HK) – The Future Valuation Leap Is Worth Looking Forward To
- For full-year 2024, sales of olverembatinib is expected to reach about RMB240 million, and there is a possibility of exceeding expectations. RMB500 million sales of olverembatinib is expected in 2025.
- Market value of US$1.25 – 1.9 billion is reasonable range for Ascentage if just considering olverembatinib alone. The peak sales of APG-2575 is expected to surpass olverembatinib in overseas markets.
- The next big catalyst is the potential licensing cooperation with MNCs for APG-2575, if reaches, would push Ascentage’s market value to surpass HUTCHMED, as prospects of APG-2575 is basically guaranteed.
IO Weekly Technicals Review [2024/47]: IO Uptrend to Continue
- SGX IO Futures closed USD 3.83/ton higher for the week ending on 22/Nov. It traded in a range of USD 6.90/ton, which was smaller than the prior week.
- Chinese portside inventories increased by 350k tons WoW to 148.86 MT as of 22/Nov. Steel mill inventories rose 13.8% to 15.6 MT in mid-November compared to early November.
- Iron ore prices remain well supported in the near term despite high stockpiles at Chinese ports due to strong consumption and robust steel production ahead of the Lunar New Year.
CRRC (1766): Still Far from the Highs
- CRRC Corp Ltd H (1766 HK) recent innovation on carbon-fibre subway trains for commercial operation has displayed their capability to decarbonize transport.
- Free cash flow improved from RMB -11 billion last year to now -1.4 billion and 28% of its market caps are in cash.
- CRRC used to trade at as high as 40x PER and 67x price to cash flow and currently is trading at 10x PER and 4x price to cash flow.
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