In today’s briefing:
- Zhejiang Sanhua Intelligent Controls A/H Listing – Relatively Large but Digestible
- Wuxi Biologics Placement – Smaller Deal than Previous as Last Didn’t Do Well, Overhang Remain
- Sanhua Intelligent Controls H Share Listing (2050 HK): Valuation Insights
- Shandong Gold Mining Co., Ltd. (600547.SS, 1787.HK) – Scaling Production and Enhancing Margins
- Bloks Group (0325.HK): Six-Month IPO Lock-Up Will Expire In July, Time To Take Profits
- [IO Technicals 2025/24] Downward Momentum Lingers
- EU Opens Tire Duty Probe Against China, Straining Trade Environs
- Ping An (2318 HK): Strategic Insights and Top Option Trades
- Lucror Analytics – Morning Views Asia
Zhejiang Sanhua Intelligent Controls A/H Listing – Relatively Large but Digestible
- Zhejiang Sanhua Intellignt Controls Co., Ltd. (002050 CH) (ZSIC), a manufacturer of refrigeration and air-conditioning control components, aims to raise around US$1bn in its H-share listing.
- ZSIC is a market leader in a number of products, with commanding market share both domestically and globally.
- 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.
Wuxi Biologics Placement – Smaller Deal than Previous as Last Didn’t Do Well, Overhang Remain
- Wuxi Biologics Holdings is looking to raise up to US$288m by selling about 2% of Wuxi Biologics (2269 HK).
- This is the company’s 17th placement since it listed in June 2017.
- In this note, we talk about the updates since then and run the deal through our ECM Framework.
Sanhua Intelligent Controls H Share Listing (2050 HK): Valuation Insights
- Zhejiang Sanhua Intelligent Controls (2050 HK) has launched its H Share listing at HK$21.21 to HK$22.53 per H Share. Pricing will be on 19 June.
- I discussed the H Share listing in Sanhua Intelligent Controls H Share Listing: The Investment Case.
- The proposed AH discount of 20.2%-24.9% (based on 12 June A Share price) is attractive and I would participate in the H Share listing.
Shandong Gold Mining Co., Ltd. (600547.SS, 1787.HK) – Scaling Production and Enhancing Margins
- EBITDA margin is expected to expand to 19% by FY27, with EPS rising from CNY 0.51 to CNY 1.10, supported by operational efficiencies and a favorable gold price environment.
- Shandong Gold aims for 70–80 tonnes of self-mined gold by 2027, with FY25–FY27 revenue projected to reach CNY118.8 billion at $3,400/oz gold price, driven by volume growth & higher prices.
- Commodity price volatility, geopolitical risks in international ventures (Argentina, Greece), and state ownership influence pose challenges to margins and shareholder value.
Bloks Group (0325.HK): Six-Month IPO Lock-Up Will Expire In July, Time To Take Profits
- Bloks Group is one of the top performing stocks in Hong Kong this year, with shares up 186% over the year versus a ~19% gain on the HSI.
- Chinese assembly character toy maker priced its offering at HK$60.35 per share in January, top of a range, and raised ~HK$1.8B of the net proceeds.
- The offering was 5,000+ times oversubscribed and Bloks Group IPO attracted a surge of retail investors. The company’s six-month IPO lockup will expire on July 9, 2025.
[IO Technicals 2025/24] Downward Momentum Lingers
- The U.S. will impose a 55% tariff on Chinese goods; China responds with 10%, as part of a deal addressing trade and fentanyl concerns.
- China’s steelmakers face pressure as EV price wars cut margins. Platts to lower iron ore spec to 61% in 2026, prompting SGX contract adjustments.
- Prices hold below key moving averages, reflecting downside momentum, while the MACD staying under its signal line supports the ongoing bearish outlook.
EU Opens Tire Duty Probe Against China, Straining Trade Environs
- Investigation covers HS codes 40111000 and 40112010
- China criticizes EU protectionism, warns of market impact
- EU tire makers to benefit but consumers may feel the pinch
Ping An (2318 HK): Strategic Insights and Top Option Trades
- Be inspired by sophisticated, live, multi-leg options strategies on Ping An Insurance (2318 HK), executed over the period from 6 to 12 June on the Hong Kong exchange.
- Highlights: Many strategies creatively utilize weekly expiries, sometimes employing options with as little as one or two days to maturity to generate upfront yield or financing.
- Why read: Detailed examples and break-down of complex option strategies provide actionable insights that could inspire similar strategies,
Lucror Analytics – Morning Views Asia
- US treasuries climbed yesterday, on the back of soft PPI data as well as a solid auction of 30Y notes.
- The UST curve bull flattened, with the yield on the 2Y UST declining 4 bps to 3.91%, while that on the 10Y UST was down 6 bps at 4.36%.
- Equities rose, with the S&P 500 and Nasdaq up 0.4% and 0.2%, respectively.
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