In today’s briefing:
- Hansoh Pharma Placement – Somewhat Expected but Still Opportunistic
- Aux Electric Pre-IPO: Competitive Niche
- SICC A/H Trading – Strong Retail, Lukewarm Insti Demand
- Shuangdeng Group IPO: Weak Earnings This Year but Potentially Hot Data Centre Trade
- Vikram Solar IPO – RHP Updates, Peer Comp and Thoughts on Valuations
- Aux Electric IPO: The Investment Case
- Pre-IPO Aux Electric Co (PHIP Updates) – Concerns About Business Model and Valuation Outlook
- Aardvark Therapeutics (AARD) Six Month Summary: A Cold Debut That Froze the Biotech Market
Hansoh Pharma Placement – Somewhat Expected but Still Opportunistic
- Hansoh Pharmaceutical Group (3692 HK) aims to raise around US$500m via a primary placement.
- The stock has done exceptionally well this year but is now trading at near its all-time highs and it doesn’t really need the cash.
- In this note, we will talk about the deal dynamics and run the deal through our ECM framework.
Aux Electric Pre-IPO: Competitive Niche
- Aux Electric Co Ltd (0917839D HK) is looking to raise up to US$600m in its upcoming Hong Kong IPO.
- It is one of the global top five air conditioner providers, with capabilities covering the design, R&D, production, sales and related services of household and central air conditioners.
- In this note, we look at the firm’s past performance.
SICC A/H Trading – Strong Retail, Lukewarm Insti Demand
- SICC (688234 CH), a manufacturer of high-quality SiC substrates, raised around US$260m in its H-share listing.
- In terms of market share, as per Frost & Sullivan, based on 2024 sales, its market share was at 16.7%.
- We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the trading dynamics.
Shuangdeng Group IPO: Weak Earnings This Year but Potentially Hot Data Centre Trade
- Shuangdeng Group Co Ltd (JISHUZ CH) is looking to raise around US$109m in its upcoming Hong Kong IPO.
- It’s a global leader in energy storage business for big-data and telecommunication industries with a diverse customer base comprising telecom base station operations, data centers, power stations and power grids.
- In this note, we examine the IPO dynamics, and look at the firm’s valuation.
Vikram Solar IPO – RHP Updates, Peer Comp and Thoughts on Valuations
- Vikram Solar (0490158D IN) is looking to raise about US$238m in its India IPO.
- Vikram Solar is an integrated solar photo-voltaic modules producer and an integrated solar energy solutions provider offering engineering, procurement and construction services, and operations and maintenance services to its customers.
- In our earlier notes, we have looked at the company’s past performance. In this note, we talk about the RHP updates, peer comp and implied valuations in the price range.
Aux Electric IPO: The Investment Case
- Aux Electric Co Ltd (0917839D HK) is the fifth-largest air conditioner provider globally as measured by volume. It is seeking to raise US$600 million.
- Aux is known for its aggressive low pricing, which has helped it establish itself as an affordable option to larger peers.
- The investment case is bullish due to strong growth, increasing contract liabilities, encouraging margin profile despite the low-price strategy/higher ODM mix and cash generation.
Pre-IPO Aux Electric Co (PHIP Updates) – Concerns About Business Model and Valuation Outlook
- AUX mainly relies on low-price strategy to compete in the industry and has maintained robust growth in revenue/net profit.However, there’s already a significant gap in scale compared with leading peers
- Due to higher growth, AUX’s valuation could be higher than that of Midea and Gree. However, due to risks such as high debt and weak R&D, valuation premium is limited.
- A high valuation (e.g. P/E >15x) can be justified only if the transition to a technology-driven value model can be completed before the cash flow of low-price model dries up.
Aardvark Therapeutics (AARD) Six Month Summary: A Cold Debut That Froze the Biotech Market
- The company priced 5.88 million shares at $16.00—the low end of its $16.00–$18.00 range—and opened immediately underwater at $15.18, a 5.1% decline.
- In our pre-pricing notes, we flagged the lack of sector-dedicated crossover funds in earlier rounds and a muted “buzz factor” ahead of launch.
- Aardvark closed out the 2025 biotech IPO calendar—and in many ways, its performance “froze” the market.
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