Summary of Key Points Core Viewpoint - The Hong Kong IPO market saw four companies submit listing applications this week, with no companies passing the hearing, and four companies in the process of offering shares, including one that has officially listed. Group 1: Companies Submitting Listing Applications - On March 18, Zhuozheng Medical Holdings Limited submitted a listing application to the Hong Kong Stock Exchange, marking its second attempt after a previous application in May 2024. The company operates 20 medical service institutions in China and is the third-largest private mid-to-high-end comprehensive medical service provider in the country, with a market share of 1.7% based on 2023 revenue [2]. - On March 21, Aolian Service Group Co., Ltd. submitted a listing application, focusing on business and community service in Guangdong Province, China. The company ranked 16th and 11th among independent property management service providers in China based on total revenue and net profit, respectively [3]. - On March 21, Jiangbolong (301308.SZ), a leading independent semiconductor memory manufacturer, submitted a listing application. The company reported a revenue of 17.464 billion RMB in the previous year, a 72.48% increase, and a net profit of 499 million RMB, up 160.24% [4]. - On March 21, Beijing Yunji Technology Co., Ltd. submitted a listing application, aiming to become the first stock in the robot service sector. The company is the largest in the global market for hotel scene robot service agents based on 2023 revenue [4][5]. Group 2: Companies in the Offering Process - Weisheng Pharmaceutical-B (02561.HK) was open for subscription from March 13 to March 18, 2025, with a subscription rate of 72.64 times. The stock officially listed on March 21, 2025, and closed at the issue price after an initial drop of over 6% [6]. - Nanshan Aluminum International (02610.HK) is in the process of offering 88.2353 million shares, with a price range of 26.60 to 31.50 HKD per share, expected to start trading on March 25, 2025 [6]. - Shubao International (02569.HK) is offering 250 million shares, with a price range of 0.5 to 0.6 HKD per share, expected to start trading on March 27, 2025 [7]. - Jiangsu Hongxin (02625.HK) is offering 53.562 million shares, with a price range of 2.5 to 3 HKD per share, expected to start trading on March 31, 2025 [7].

Investment Rating - The report assigns a "Neutral" rating with a total score of 69 out of 100 [3][14]. Core Insights - The company has a promising pipeline with products that, if approved, could meet significant demand in the Chinese market, particularly for conditions like Pediatric Growth Hormone Deficiency (PGHD) and Hypoparathyroidism [2][8][10]. - The company is positioned as the first endocrine drug manufacturer in the Hong Kong market, which may provide a competitive edge [14]. Industry Outlook - PGHD is prevalent among children under 18, accounting for 41.5% of short stature cases in China, with only 5.3% treatment rate in 2023, indicating a substantial unmet need [2]. - The market for achondroplasia treatment is currently limited, with only two products in clinical trials, suggesting a strong first-mover advantage for the company's product, Navepegritide [6]. - The demand for drugs treating Hypoparathyroidism is expected to grow, with the patient population projected to increase from 410,100 in 2023 to 495,600 by 2030 [7]. Company Operations - The company has not yet launched any products, resulting in no sales revenue. The net loss for shareholders in 2023 was approximately 250 million RMB, a 13.5% reduction year-on-year [8]. - Research and development costs have decreased significantly, contributing to the reduced net loss, while cash flow from operating activities remains healthy with no bank loans [8]. - The company has a robust pipeline with core products already approved in Europe and the U.S., with expectations for approval in China by 2025 [5][10]. Valuation Level - The company's valuation is considered reasonable, with a market capitalization range of 77.0 to 84.6 billion HKD, slightly lower than comparable companies in the biotech sector [10][12]. - The price-to-book ratio for the company's IPO price is estimated at 18.3 to 20.2 times, which is competitive compared to peers [10]. Market Sentiment - The recent market atmosphere has improved, with a higher percentage of newly listed companies experiencing price increases on their debut [13]. - The presence of notable cornerstone investors, such as WuXi Biologics, indicates confidence in the company's research capabilities [14].

Investment Rating - The report assigns a "Neutral" rating with a total score of 69 out of 100 [3][14]. Core Insights - The company has a promising pipeline with products that, if approved, could meet significant demand in the Chinese market, particularly for conditions like Pediatric Growth Hormone Deficiency (PGHD) and others [2][6][8]. - The company is positioned as the first endocrine drug manufacturer in the Hong Kong market, which may provide a competitive edge [14]. Industry Outlook - PGHD is prevalent among children under 18, with 41.5% of the total short stature cases in this age group in China. The treatment rate for this condition is currently low at 5.3%, indicating a substantial unmet need [2]. - The company’s product, Lonapegsomatropin, is the first long-acting growth hormone approved in the US and Europe, with expectations for approval in China by 2025 [5][8]. - There is a lack of approved drugs for Achondroplasia in China, with only the company’s Navepegritide and Sanofi's SAR442501 in clinical trials, suggesting a strong first-mover advantage if successful [6]. - For Hypoparathyroidism, the market is expected to grow from 410,100 cases in 2023 to 495,600 by 2030, highlighting a significant demand for effective treatments [7]. Company Operations - The company has not yet launched any products, resulting in no sales revenue. The net loss for shareholders in 2023 was approximately 250 million RMB, a 13.5% decrease year-on-year, primarily due to reduced R&D costs [8]. - The company’s cash flow from operating activities has remained stable, with net cash used in operations of 270 million RMB in 2023 and 100 million RMB in the first half of 2024 [8]. - The company has no bank borrowings, indicating a healthy balance sheet despite the absence of product approvals [8]. Valuation Level - The company’s valuation is considered reasonable, with a market capitalization range of 77.0 to 84.6 billion HKD, slightly lower than comparable companies in the biotech sector [10]. - The price-to-book ratio for the company is projected to be between 18.3 and 20.2 times, which is competitive compared to peers [10]. Market Sentiment - Recent market conditions have improved, with 14 out of 19 newly listed companies experiencing price increases on their first trading day, indicating a favorable environment for new listings [13].