In today’s briefing:
- Wuxi XDC Cayman (2268 HK): Soaring Pharma Stocks & Global Index Inclusion
- STAR Chip Index Rebalance Preview: Forecast Changes for September
- [IO Fundamentals 2025/29] IO Recovery in Spotlight Amid China’s Infrastructure Drive
- Chow Tai Fook(1929 HK) – What’s Clicking in Q1FY26? Brand Revamp, Cost Focus and SSS Recovery
- Innogen (银诺医药) Pre-IPO Update: New Data Points
- Lucror Analytics – Morning Views Asia
- MicroPort MedBot (2252 HK): Growth Flash Amid Favorable Momentum with Approvals and Overseas Sales
Wuxi XDC Cayman (2268 HK): Soaring Pharma Stocks & Global Index Inclusion
- WuXi XDC Cayman (2268 HK)‘s stock price has recovered from the tariff fear induced selloff and the higher market cap should result in global index inclusion in August.
- WuXi XDC Cayman (2268 HK) has gone from bottom of the pack to middle over the last 9 months and there could be further relative upside.
- There is positioning in the stock but it appears to be lower than positioning in its peers. Long/short trades could offer better risk/return.
STAR Chip Index Rebalance Preview: Forecast Changes for September
- There could be 2 constituent change for the STAR Chip Index at the September rebalance. There will also be a few capping changes.
- Estimated one-way turnover is 1.4% resulting in a round-trip trade of CNY 983m (US$137m). Passives need to trade between 0.4-1.9x ADV in the potential changes.
- Both forecast inclusions are newly eligible for index inclusion and the passive buying could provide some support following the drop in the stock price post listing.
[IO Fundamentals 2025/29] IO Recovery in Spotlight Amid China’s Infrastructure Drive
- China’s mega hydropower project signals stronger infrastructure-led steel demand, offering a lifeline to mills and boosting near-term iron ore demand and prices amid weak property activity.
- Rio Tinto’s strong Q2 output boosts near-term iron ore momentum, but muted shipments, cyclone impact, and gradual Simandou ramp-up may limit upside in prices.
- Portside iron ore inventory data showed mixed signals last week, with SMM reporting a sharp drop while CISA data reflected a slight increase.
Chow Tai Fook(1929 HK) – What’s Clicking in Q1FY26? Brand Revamp, Cost Focus and SSS Recovery
- Chow Tai Fook Jewellery (1929 HK) saw lowest degrowth in retail sales value(RSV) in Q1FY26 among last few quarters.
- Same-Store sales growth showed a clear sequential improvement across key regions. Mainland China self-operated stores saw the decline narrow sharply.
- Driven by store optimization and brand transformation, earnings quality should sustain. At 16.9x P/E valuation on FY26e EPS, we believe investors will increasingly view CTF as a long-term structural winner.
Innogen (银诺医药) Pre-IPO Update: New Data Points
- Innogen, a China-based near-commercial stage biotech company, is looking to raise at least USD 100 million via a Hong Kong listing. CITIC Securities and CICC are the joint sponsors.
- In this note, we look at changes to the company’s refiled application proof.
- We also did a comparison between the company’s product and PegBio’s PB-119. PegBio was listed on HKEx in May. We also check its products’ online listing.
Lucror Analytics – Morning Views Asia
- In today’s Morning Views publication we comment on developments of the following high yield issuers: Road King Infrastructure, Continuum Green, Softbank Group
- UST yields declined for a second straight day yesterday. There were no major macro catalysts, albeit the move was in line with gains across most European government bonds.
- The UST curve bull flattened, with the yield on the 2Y UST falling 1 bp to 3.86%, while that on the 10Y UST was down 4 bps at 4.38%. Equities climbed to fresh record highs, with the S&P 500 advancing 0.1% to 6,306 and the Nasdaq up 0.4% at 20,974.
MicroPort MedBot (2252 HK): Growth Flash Amid Favorable Momentum with Approvals and Overseas Sales
- Shanghai MicroPort MedBot Group (2252 HK) announced flash results for 1H25 where they expect the revenue to rise 70–80% YoY and net loss to narrow down to RMB 125M.
- Toumai Laparoscopic Surgical Robot continued to be the main growth driver securing new orders of 18 units and achieving commercial installation of more than 13 units in overseas markets.
- MedBot’s recent approvals of Toumai variants, technology advantages, and commercialization strength places it at an inflection point, expected to be back in the black soon.
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