Daily Brief China: WeRide, Pony AI, ANE Cayman Inc, Pop Mart, Sichuan Biokin Pharmaceutical Co Ltd, Ningbo Joyson Electronic, Henderson Land Development, Guoco Group Ltd, Yangtuo Technology Inc. and more

• WeRide (WRD US) plans to raise around US$325m in its secondary listing in Hong Kong.
• We have looked at the deal dynamics in our previous note.
• In this note, we talk about the deal structure and updates since then.

• Pony AI (PONY US)  plans to raise around US$825m in its secondary listing in Hong Kong.
• We have looked at the deal dynamics in our previous note.
• In this note, we talk about the deal structure and updates since then.

• ANE Cayman Inc (9956 HK) has disclosed a preconditional scheme privatisation offer from a consortium. The offer is cash (HK$12.18) or scrip (One TopCo Class A Share per scheme share). 
• The precondition relates to SAMR approval. The scheme vote is low risk, as the offer is attractive relative to historical ranges and peer multiples. 
• The offer price is final. Mr Wang Yongjun, the former chairman, holds a blocking stake but should be supportive. Timing is the key risk. 

• Pop Mart (9992 HK)’s share price is down 33% from its peak levels in late August 2025. Going forward, we expect further downside risk on Pop Mart.
• We highlight the growing concerns about the declining resale values of Labubu. After reaching their peak prices in this summer, the resale prices of Labubu dolls have continued to drop.
• Its share price declining below the critical HK$250 support on big volumes suggest negative technicals on this stock. 

• Sichuan Biokin is looking to raise up to USD 500 million from an A-H listing. The sponsors are GS, JPM, and CITIC.
• Sichuan Biokin recently published its post-hearing prospectus. The company also released financial results for 3Q 2025.
• We think the company has progressed well in its core asset and has reported encouraging clinical data since the beginning of the year.

• Ningbo Joyson Electronic (600699 CH) is looking to raise up to US$471m in its upcoming Hong Kong IPO.
• It is an intelligent automotive technology solution provider, offering advanced products and solutions across the auto part industry’s key areas including automotive electronics and automotive safety.
• In this note, we examine the IPO dynamics, and look at the firm’s valuation.

• Dominant Hong Kong Developer with Unmatched Land Bank: Henderson Land is a premier property developer in Hong Kong with a vertically integrated model and a substantial, strategically acquired land bank. Its most significant competitive advantage lies in possessing the largest agricultural land holdings among its peers, positioning it uniquely to benefit from government-led development initiatives like the Northern Metropolis.
• Resilient Financials and Attractive Shareholder Returns: Despite challenging market conditions that have impacted net income, the company has demonstrated strong growth in operating and free cash flow. It maintains a commitment to shareholders, evidenced by a stable dividend policy and a high dividend yield, which is a key attraction for income-focused investors.
• Navigating a Cyclical Market with a Clear Strategy: The company faces headwinds from Hong Kong’s volatile property market and a high interest rate environment. However, its strategic focus on urban renewal, converting its extensive farmland reserves, and launching new, high-quality projects like ‘The Henderson’ provides a clear path for future growth and value creation.

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• Guoco Group is a diversified investment holding company with a strong presence in property development, hospitality, and financial services across key Asian and European markets. It serves as the overseas investment flagship for Malaysia’s Hong Leong Group.
• The company exhibits a stark contrast between its recent operational performance and long-term market valuation. While 3-year compound annual growth rates for revenue (15.33%) and net income (27.06%) are robust, its market capitalization has declined over 3, 5, 7, and 10-year periods, suggesting a significant valuation discount.
• Valuation appears attractive, highlighted by a low price-to-book ratio of 0.33. This, combined with a consistent dividend and strong recent cash flow growth, presents a potential value opportunity, albeit with risks associated with its conglomerate structure and exposure to cyclical industries.

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• Yangtuo’s business model is B2B2C, targeting lower-tier market, but the consumption upgrade in lower-tier market lags behind, which will affect the sales of high-margin products and require more marketing/promotion investment.
• Yangtuo decides to shift from digital marketplace business to self-operated business, but such strategic adjustments may force Yangtuo to abandon the light-asset model and turn to heavy-asset model.
• Overall performance and key operating metrics have shown a downward trend. Continuous decline in profit margins is expected. Valuation of Yangtuo should be lower than Kidswant Children Products (301078 CH).