Daily Brief China: Zijin Mining Group Co Ltd H, Iron Ore, BYD, Logan Property Holdings, mF International, Viomi Technology Co Ltd, Vipshop Holdings, CK Hutchison Holdings and more

• As Zijin Gold (2259 HK)‘s share price defies gravity, so does Zijin Mining Group Co Ltd H (2899 HK)‘s.
• Full disclosure: I misread the room. I thought Zijin Gold was fully priced at HK$71.59/share. As was Zijin Mining. Zijin Gold is now up 92% and Zijin Mining 20%.
• Zijin Gold currently trades at a 100% premium to peers on forward PER and EV/EBITDA multiples. 

• Negative steel mill margins will likely result in production cuts that could adversely impact the near-term demand for iron ore. 
• Beijing’s stricter stance on BHP and Simandou’s safety-related suspension are altering the iron ore power dynamics and tightening supply.
• Bearish MA crossover and weakening MACD signal fading momentum, with prices below key MAs, pointing to increasing downside pressure.

• BYD (1211 HK) is currently in a position from where it could rally. Our previous insight suggested a possible bottoming area around 100.9 but the stock never reached that low.
• This week the stock rallied to 114.7, then pulled back. If the stock is temporarily bottoming, it could rally past 115 and up to 130 from here. 
• According to our TIME MODEL the duration of the rally could be up to 3-4 weeks (2-3 more weeks up from here).

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Logan Group
• The UST curve flattened marginally yesterday, as long-end yields declined marginally while the short end was stable.
• Trading volumes were reported to be below average, as macro releases were stalled in the second day of the US government shutdown.

• Key 1H25 takeaways include: 1) As previously disclosed, MFI’s co-founders recently sold the company to Fire Lucky Investment Co., controlled by Mr. Dawei Yuan.
• Looking ahead, we would not be surprised to see Mr. Yuan increasingly leverage his considerable background/expertise, particularly as it relates to digital assets, to shift MFI’s strategic vision/business model, thereby enhancing the company’s growth prospects, revenue profile, and earnings power over time.
• 2) In September, MFI filed a prospectus as part of a previously-filed “shelf” registration statement to potentially raise up to $700 million via the sale of equity, debt, and/or warrants.

• Viomi filed its Form 20-F annual report with the SEC, and the audited financial statements did not materially change from the preliminary results released roughly six months ago in March.
• We will update our complete model and review our price target once the complete first-half results are released later this month.
• Viomi introduced a new high-end filtration system for the US market and announced several new marketing initiatives in China ahead of the key shopping holidays in November and December.

• We remain near-term bullish since our 4/22/25 Compass, and our intermediate-term outlook remains bullish as well (as of our 5/14/25 Compass), with Int’l Compass reports all echoing this sentiment.
• Our bullish near-term outlook will remain in place as long as the 4+ month uptrend continues on ACWI-US. Remain aggressively long/continue to expect more upside into year-end and the early2026.
• Europe’s EURO STOXX 50 is breaking out from its 7-month base, above the crucial 5500 level, and RS is attempting to reverse its 5-month downtrend — buy.

• CK Hutchison is a global conglomerate with leading positions in ports, retail, infrastructure, and telecommunications, offering significant diversification benefits.
• The company is currently trading at a substantial discount to its intrinsic value, indicated by low price-to-book and price-to-earnings ratios, presenting a potentially attractive entry point for long-term investors.
• Significant uncertainty surrounds the company due to a major pending sale of its port assets, which faces considerable geopolitical and regulatory hurdles, making it a key catalyst and risk.

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