In today’s briefing:
- CATL H Share Listing: PHIP Reinforces the Investment Case
- Ant Group Considering on Listing Overseas Unit Ant International in Hong Kong
- Urban Company Ltd Pre-IPO Tearsheet
- Canara HSBC Life Insurance Pre-IPO Tearsheet
- Auntea Jenny (2589 HK): What Is the Fair Value?
- Hainan Drinda New Energy (A/H IPO) Trading – Tepid Demand, No Over-Allotment
- Pre-IPO Jiangsu Hengrui Medicine H Share Listing (PHIP Updates) – Some Points Worth the Attention
- CATL: Key Highlights in 1Q 2025 and PHIP Updates on Hong Kong Listing
- Jiangsu Hengrui Pharma A/H Listing – PHIP Updates and Updated Thoughts on A/H Premium
CATL H Share Listing: PHIP Reinforces the Investment Case
- Contemporary Amperex Technology (CATL) (300750 CH), the world’s largest supplier of EV and ESS batteries, has filed its PHIP for an H-Share listing to raise US$5 billion.
- I previously discussed the H Share listing in CATL H Share Listing: The Investment Case and CATL H Share Listing: AH Discount Views.
- In this note, I examine the latest results and developments outlined in the PHIP. Overall, the PHIP reinforces my positive view.
Ant Group Considering on Listing Overseas Unit Ant International in Hong Kong
- Ant Group is considering on listing its overseas unit Ant International in Hong Kong. Ant International contributes approximately 20% to Ant Group’s total revenue.
- Ant International operates four core business lines: Alipay+ (cross-border payment platform), Antom (global merchant acquiring network), WorldFirst (remittance service), and Bettr (digital payment solution).
- Given the growing political to delist Chinese stocks from the US exchanges, there could be a greater political pressure on the Chinese government to approve Chinese IPOs in Hong Kong.
Urban Company Ltd Pre-IPO Tearsheet
- Urban Company (URBAN IN) (UCL) is looking to raise about US$223m in its upcoming India IPO. The bookrunners for the deal are Kotak, Morgan Stanley, Goldman Sachs, JM Fin.
- UCL is a tech-enabled platform offering home and beauty services delivered by trained professionals at customer’s location.
- As of Dec 24, it operated in 59 cities across India and overseas.
Canara HSBC Life Insurance Pre-IPO Tearsheet
- Canara HSBC Life Insurance (2908709Z IJ) is looking to raise about US$354m in its upcoming India IPO with bookrunners HSBC, JM Fin, Motilal, BNP Paribas and SBI Caps.
- Canara HSBC Life Insurance is a private life insurer in India and promoted by Canara Bank and HSBC Insurance (Asia-Pacific) Holdings Limited, a member of the HSBC group.
- According to CRISIL, it was ranked second amongst public sector bank-led life insurers in India based on the number of lives covered for FY24.
Auntea Jenny (2589 HK): What Is the Fair Value?
- Auntea Jenny (Shanghai) Industrial (2589 HK)‘s IPO price is set at HK$113.12, which is aggressive based on its financial and operational metrics.
- At 29.3x FY25F PER, Auntea Jenny’s multiple is close to Mixue Group (2097 HK) and Guming Holdings (1364 HK), but it is significantly smaller in scale and lower in profitability.
- Our fair value of 25x PER and 5.3x P/B for FY25 means a share price of HK$94.70-96.68. Initial euphoria may inflate its debut, but we will exit on the rally.
Hainan Drinda New Energy (A/H IPO) Trading – Tepid Demand, No Over-Allotment
- Hainan Drinda Automotive Trim (002865 CH) (HDNET) raised around US$180m via its A/H listing.
- HDNET is a specialized manufacturer of PV cells which are used in making PV modules.
- We have looked at the company’s past performance and other deal dynamics, in our earlier notes. In this note, we talk about the trading dynamics.
Pre-IPO Jiangsu Hengrui Medicine H Share Listing (PHIP Updates) – Some Points Worth the Attention
- Hengrui’s high growth in 2024/25Q1 mainly relies on the realization of BD cooperation. The short-term performance improvement cannot conceal the long-term pressure. The turning point of endogenous growth hasn’t arrived.
- Hengrui would continue to be affected by VBP. The generic drug business is “outdated”, whose valuation contribution is negligible. The BD model will lead to significant fluctuations in performance.
- Our forecast is net profit YoY growth in 2025-2027 would fall back to 15-20%. Hengrui’s valuation should be lower than that of BeiGene and Hansoh in Hong Kong stock market.
CATL: Key Highlights in 1Q 2025 and PHIP Updates on Hong Kong Listing
- CATL reported a 6.2% YoY increase in revenue in 1Q 2025. EV battery sales rose 14.0% YoY driven by healthy demand offset by lower ESS battery sales.
- CATL provided discussions about ongoing tariff disputes. It mentioned that the overall impact and outcome remain uncertain. The U.S. market accounts for about 7% of CATL’s total EV battery business.
- We maintain a Positive View of CATL. Our base case valuation of CATL is implied market cap of 1.3 trillion CNY which is 32% higher than current market cap.
Jiangsu Hengrui Pharma A/H Listing – PHIP Updates and Updated Thoughts on A/H Premium
- Jiangsu Hengrui Medicine (600276 CH) (JHP), a China-based pharmaceutical company, aims to raise around US$2bn in its H-share listing.
- JHP has been ranked as one of the global Top 50 pharmaceutical companies by Pharm Exec for six consecutive years since 2019.
- We have looked at the past performance and other dynamics in our previous note. In this note, we talk about the updates and provide our thoughts on the A/H premium.
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