Market Performance - The Hong Kong stock market showed weak performance on November 17, with the Hang Seng Index closing at 26,384.28 points, down 188.18 points, a decline of 0.71% [1] - The Hang Seng Tech Index closed at 5,756.88 points, down 55.92 points, a decrease of 0.96% [2] New Listings - Zhongwei New Materials (02579.HK) debuted but faced a decline, with an initial offering price of 34 HKD, experiencing a maximum drop of over 5% to a low of 32 HKD before closing at 33.96 HKD, down 0.12% [4][6] Sector Performance - In the technology sector, most stocks declined, with Lenovo dropping over 3%, Baidu down over 2%, and Bilibili and JD.com each falling over 1% [6] - Conversely, defense stocks performed well, with China Shipbuilding Defense rising over 3% [6] - Gold stocks generally fell, with Chifeng Jilong Gold down over 3% and Zijin Mining down over 2% [6] - Innovative pharmaceutical stocks also saw a pullback, with Lianbang Pharmaceutical dropping over 6% [6] Capital Flow - Despite market adjustments, southbound capital continued to buy, with a net purchase of over 8.4 billion HKD in Hong Kong stocks by the end of the trading day [7] Market Outlook - Galaxy Securities suggests that the risk appetite in the Hong Kong market will remain cautious, with a likelihood of continued volatility and faster rotation of market hotspots [9] - The firm also indicates that attention should be given to cyclical stocks benefiting from changes in supply and demand dynamics under the "anti-involution" policy, which may have rebound potential [9] - Jianyin International believes that the valuation repair phase for Hong Kong stocks is nearing completion, with future growth dependent on potential valuation expansion next year [9] - The performance of domestic stocks in Q3 has been mixed, and the market is expected to focus more on standout technology innovations, with the potential for downward pressure if tech earnings fall short of expectations [9]

Core Viewpoint - Zhongwei New Materials Co., Ltd. (referred to as "Zhongwei New Materials") has officially listed on the Hong Kong Stock Exchange, opening at HKD 34.00 and closing at HKD 33.96, a slight decline of 0.12% from the issue price [1]. Summary by Sections Company Overview - Zhongwei New Materials is a company focused on the research, development, production, and sales of new energy battery materials, primarily involving precursor materials for positive electrode active materials (pCAM) and new energy metal products [1]. IPO Details - The total number of shares offered in the IPO was 104,225,400, with 10,422,600 shares allocated for public sale in Hong Kong and 93,802,800 shares for international sale. The total number of shares issued at listing (before the exercise of the over-allotment option) was 1,042,253,858 [2][3]. - The final offer price was set at HKD 34.00, resulting in total proceeds of HKD 3,543,663,600. After deducting estimated listing expenses of HKD 111,053,825, the net proceeds amounted to HKD 3,432,609,775 [2][3]. Use of Proceeds - The net proceeds from the global offering are intended to be used for expanding production and supply chain capabilities, research and development of new energy battery materials, digital transformation, working capital, and other general corporate purposes [3]. Key Investors - Key cornerstone investors include Guizhou New Industrialization Development Equity Investment Fund, Baoda Investment (Hong Kong) Limited, Zhongchu Innovation Technology Group Co., Ltd., and several others [5]. Financial Performance - For the years 2022, 2023, and 2024, Zhongwei New Materials reported revenues of RMB 30,343.7 million, RMB 34,273.2 million, and RMB 40,222.9 million, respectively. The net profits for the same years were RMB 1,539.4 million, RMB 2,100.5 million, and RMB 1,787.8 million [6][7]. - As of the nine months ending September 30, 2025, the company recorded revenues of RMB 33,297.5 million, a 10.4% increase from RMB 30,162.9 million for the same period in 2024. However, profits decreased from RMB 1,646.7 million to RMB 1,111.1 million [8][9].

Core Insights - Zhongwei New Materials Co., Ltd. has successfully listed on the Hong Kong Stock Exchange, becoming the second "A+H" company in the new energy sector after CATL [2] - The company specializes in the research, production, and sales of new energy battery materials, particularly focusing on precursor cathode active materials (pCAM) [2] - The global market share for Zhongwei's nickel and cobalt pCAM is 20.3% and 28.0% respectively, maintaining the top global shipment volume for five consecutive years [2] Industry Overview - The global new energy battery market is experiencing significant growth, with shipments projected to increase from 260.6 GWh in 2020 to 1393.2 GWh by 2024, reflecting a compound annual growth rate (CAGR) of 52.1% [3] - By 2030, the market is expected to grow over three times, reaching 6019.1 GWh [3] - The expansion of electric vehicles, energy storage systems, and consumer electronics is driving demand for new energy materials [3] Company Performance - In 2024, Zhongwei is expected to achieve revenue of 40.223 billion RMB, a year-on-year increase of 17.77% [3] - For the first three quarters of 2025, the company reported revenue of 33.297 billion RMB, maintaining a growth rate of over 10% for three consecutive years [3] - The company’s high-nickel products are projected to capture 31.7% of the global market share in 2024, with ultra-high nickel products accounting for 89.5% [2] Future Development - Zhongwei emphasizes that technology and research are core to its business, aiming to enhance product performance and cost efficiency through continuous innovation [4] - The recent IPO will provide approximately 3.628 billion HKD for various initiatives, including the construction of a production base in South Korea and mining expenditures [3][4] - The listing is expected to strengthen the company's global integration and enhance its competitive edge in the international market [4]

Group 1 - Zhongwei New Materials Co., Ltd. (stock code 02579.HK) was listed on the Hong Kong Stock Exchange on November 17, becoming the second "A+H" company in the new energy sector after CATL [1] - The company, established in 2014, focuses on the research and development of cutting-edge new energy materials and has a global market share of 20.3% in nickel-based and 28.0% in cobalt-based pCAM as of 2024, ranking first in global shipments for five consecutive years [1] - Zhongwei New Materials has established a vertically integrated supply chain from upstream metal mining to material recycling, securing key mineral resources globally, including nickel ore in Indonesia and lithium salt in Argentina [1] Group 2 - The global new energy battery market is projected to grow from 260.6 GWh in 2020 to 1393.2 GWh in 2024, with a compound annual growth rate of 52.1%, and is expected to exceed 6019.1 GWh by 2030 [2] - The company achieved a revenue of 40.223 billion RMB in 2024, a year-on-year increase of 17.77%, and has maintained over 10% growth for three consecutive years [2] - The company raised approximately 3.628 billion HKD from its IPO, with about 50% allocated for the construction of a production base in South Korea and 15% for mining expenses in Kaiyang [2] Group 3 - The company emphasizes technology and R&D as the core of its business, aiming to enhance product performance and cost efficiency through continuous innovation [3] - The successful listing on the Hong Kong Stock Exchange opens new financing channels and strengthens the company's global integration strategy, enhancing product competitiveness [3] - The listing reflects the company's commitment to participating in international capital markets and providing new opportunities for international investors to access quality assets in the new energy sector [3]

Core Insights - The article highlights the top and bottom AH share premium rates, indicating significant discrepancies in market valuations between H-shares and A-shares for various companies [1][2][3]. Group 1: Top AH Share Premium Rates - Northeast Electric (00042) leads with a premium rate of 815.25%, followed by Hongye Futures (03678) at 277.62% and Sinopec Oilfield Service (01033) at 276.83% [1][2]. - The premium rates for the top three companies indicate a strong market preference for their H-shares compared to A-shares [2]. Group 2: Bottom AH Share Premium Rates - Contemporary Amperex Technology (03750) has the lowest premium rate at -7.20%, with China Merchants Bank (03968) at -0.80% and Heng Rui Medicine (01276) at 4.11% [1][3]. - The negative premium for Contemporary Amperex Technology suggests a potential undervaluation of its H-shares relative to A-shares [3]. Group 3: Premium Deviation Values - Zhongwei New Materials (02579) has the highest deviation value at 77.12%, indicating a significant difference from its historical average premium rate [1][4]. - The lowest deviation values are seen in Northeast Electric (00042) at -22.71%, suggesting a consistent underperformance compared to its historical premium [1][5].

Group 1 - The Hong Kong IPO market has cooled significantly, shifting from strong gains to frequent failures, breaking the myth of guaranteed profits from new listings [2] - Zhongwei New Materials (02579.HK) listed on November 17, 2025, with its stock price falling to 32.14 HKD, down 5.47% from the issue price of 34 HKD [2] - The company raised approximately 34.33 billion HKD by issuing 104 million shares, but the subscription was lukewarm, with only 27.9 times for the public offering and 4.08 times for the international offering [2] Group 2 - In the first ten months of the year, the Hong Kong IPO market was buoyant, with an average first-day return of 38.3%, and only 21.25% of the 80 new listings experienced a drop on their first day [2] - However, in November, the market sentiment turned cautious due to a high number of new listings consuming market funds and some new stocks being overpriced, leading to a sharp increase in the first-day failure rate to 50% [2] - Notable companies like WeRide (00800.HK) and Pony.ai (02026.HK) also faced first-day declines, with significant drops in their stock prices since listing [2] Group 3 - Zhongwei New Materials is facing dual challenges from a declining industry outlook and concerns about its fundamentals [4] - The domestic new energy battery materials industry has entered a cyclical downturn, shifting from a high-growth phase to one under performance pressure, altering valuation logic [4] - Despite a revenue increase to 21.32 billion RMB in the first half of 2025, the company's net profit has been declining since 2024, with a 17.33% drop in net profit reported in Q3 2025 despite an 18.84% revenue growth [4]

Core Viewpoint - Zhongwei New Materials successfully listed on the Hong Kong Stock Exchange, raising approximately HKD 35.44 billion through the issuance of 104.2254 million H-shares at a price of HKD 34.00 per share [3]. Group 1: IPO Details - The IPO was oversubscribed, with a public offering receiving 27.90 times subscription and the international offering receiving 4.08 times subscription [3]. - Nine cornerstone investors participated in the IPO, collectively subscribing to shares worth approximately USD 213.5 million (around HKD 1.659 billion) [3]. Group 2: Shareholder Structure - Prior to the listing, the shareholder structure indicated that Mr. Deng Weiming and Ms. Wu Xiaoge held a combined 50.69% of the shares [4]. - Post-listing, Mr. Deng holds 2.84%, while Zhongwei Holdings, controlled by Mr. Deng (65%) and Ms. Wu (35%), holds 46.21% [5]. Group 3: Company Overview - Established in 2014, Zhongwei New Materials specializes in the research, production, and sales of new energy battery materials, particularly focusing on precursor materials for nickel and cobalt-based cathodes [5]. - The company is a global leader in the production of nickel and cobalt precursor materials, ranking first in shipment volume for five consecutive years since 2020, with market shares of 20.3% and 28.0% respectively for nickel and cobalt precursor materials in 2024 [5]. - Zhongwei New Materials has developed an integrated operation model covering the entire supply chain from upstream metal mining to recycling, offering a comprehensive product matrix including various innovative battery materials [5]. Group 4: Market Performance - As of midday trading, Zhongwei New Materials' shares were priced at HKD 32.30, with a total market capitalization of approximately HKD 33.665 billion [6]. - The IPO's trading statistics included a high of HKD 34.00, a low of HKD 32.00, and a trading volume of 10.4082 million shares, reflecting a turnover rate of 9.99% [7].

Core Viewpoint - Zhongwei Co., Ltd. has successfully completed its H-share listing on the Hong Kong Stock Exchange, marking a significant milestone in its internationalization strategy and enhancing its global market integration [1][2]. Group 1: Listing and Capital Raising - Zhongwei New Materials' global offering consisted of 104 million shares, with a public offering of approximately 10.42 million shares in Hong Kong and 93.80 million shares internationally [2]. - The estimated net proceeds from the global offering, assuming no exercise of the over-allotment option, are approximately HKD 34.33 billion [2]. Group 2: Capital Operations and Growth - Since its listing on the Shenzhen Stock Exchange in December 2020, Zhongwei has effectively utilized capital market reforms to execute multiple financing operations, raising funds of RMB 50 billion and RMB 43.07 billion in 2021 and 2022, respectively [3]. - The company has engaged in strategic mergers and acquisitions, including the acquisition of nickel resources in Indonesia and investments in lithium battery recycling, creating a vertically integrated supply chain [3]. - Zhongwei has employed futures and derivatives to hedge against raw material price and exchange rate fluctuations, establishing risk limits for commodity and foreign exchange hedging [3]. Group 3: Business Performance and Market Position - Zhongwei's total assets increased from RMB 2.03 billion at the end of 2017 to RMB 74.69 billion by mid-2025, with revenue growing from RMB 1.86 billion in 2017 to an estimated RMB 40.22 billion in 2024 [7]. - The company has established ten major production bases globally and expects to have over 16,000 employees by the end of 2024 [7]. - Zhongwei has positioned itself as a leader in the global market for nickel and cobalt lithium-ion battery precursors, achieving the highest shipment volumes for five consecutive years [5][7]. Group 4: Future Vision and Strategic Goals - Zhongwei aims to become a leading global materials science company, focusing on technological innovation, cost advantages through global resource integration, and establishing a sustainable ecological framework [4][8]. - The company has identified three key areas for value enhancement: deepening technological expertise, improving profitability through resource integration, and solidifying its ecological foundation [4].

Core Viewpoint - The company Zhongwei New Materials has successfully listed on the Hong Kong Stock Exchange, marking a new journey in the global new energy battery materials market, with significant investor recognition reflected in a 16.5 times oversubscription during the public offering phase [1] Industry Outlook - The new energy materials sector is poised for long-term growth driven by the increasing demand from electric vehicles and energy storage solutions, with the global market for electrochemical energy storage expected to grow at a compound annual growth rate (CAGR) of 45% from 2024 to 2030 [9][10] - The penetration rate of electric vehicles is projected to continue growing at a CAGR of over 20.9% from 2024 to 2030, which will significantly boost the demand for nickel and phosphorus battery materials [8][10] Company Strengths - Zhongwei New Materials has established a strong competitive edge through its deep focus on the new energy materials sector, creating a product matrix of nickel, cobalt, phosphorus, and sodium, supported by a "technology + market" dual barrier [3] - The company has maintained the highest global shipment volume of nickel and cobalt-based precursor materials for lithium batteries for five consecutive years, with market shares of 20.3% and 28.0% respectively in 2024 [3] - The company has formed deep partnerships with key global battery manufacturers such as CATL, LG Energy Solution, and Samsung SDI, ensuring stable supply chains and customer retention [4] Financial Performance - Zhongwei New Materials has demonstrated strong revenue growth, with revenues projected to rise from 30.34 billion in 2022 to 40.22 billion in 2024, alongside improvements in profit margins for core products [5] - The gross margin for nickel materials is expected to increase from 12.5% in 2022 to 19.9% in 2024, while cobalt materials are projected to rise from 5.7% to 10.6% [5] Strategic Development - The company is leveraging a vertical integration strategy to enhance resource allocation and cost control, which positions it well to navigate global supply chain challenges and resource price fluctuations [5] - Zhongwei New Materials is expanding its production bases in regions such as Guizhou, Hunan, and Guangxi, as well as overseas in Indonesia, South Korea, and Morocco, to better serve domestic and international markets [5] Future Prospects - The successful listing and capital raise are expected to accelerate the company's growth trajectory and enhance its global market share and influence [11] - With the ongoing evolution of the global new energy industry and the optimization of energy structures, Zhongwei New Materials is well-positioned to capitalize on diverse market demands and solidify its status as a leading player in the sector [11]

Core Viewpoint - Zhongwei New Materials Co., Ltd. successfully listed on the Hong Kong Stock Exchange, marking the largest IPO in the new energy materials sector in nearly three years [1] Group 1: IPO Details - The global offering was priced at HKD 34 per share, with a total issuance scale of approximately HKD 3.54 billion (before the green shoe option) [1] - The international placement was oversubscribed by 4.08 times, while the Hong Kong public offering was oversubscribed by 27.90 times [1] Group 2: Strategic Goals - The company aims to become a global leader in new materials science, aligning with its "New Four Modernizations" strategy focused on global development [1] - The listing is a significant step towards integrating into international capital markets, enhancing the company's global brand image and service capabilities [1] - The move also aims to bring high-quality Chinese enterprises into the view of international investors [1]