Portfolio Strategy Research 24 October 2025 | 9:56PM HKT CHINA WEEKLY KICKSTART Markets rebounded 3-4% led by Tech; 4th Plenum largely in line with expectations; We expect Chinese equities to gain ~30% by end-2027 MXCN/CSI300 rebounded 4.0/3.2%, with Tech outperforming (ChiNext/STAR50/HSTECH +8.0%/+7.3%/+5.2%). The 4th Plenum of the CCPCC concluded on Oct 23 and policymakers approved the proposal of the 15th Five-Year Plan. The Plenum highlighted technology, security, and people's livelihood, largely in lin ...

Core Viewpoint - Company Seres is launching its IPO in Hong Kong, aiming to become the first luxury new energy vehicle company listed in both A-share and H-share markets, with a focus on high-end smart electric vehicles [1][5] Group 1: IPO Details - The IPO period runs from October 27 to October 31, with the listing date set for November 5 under the stock code "9927" [1] - Seres plans to issue 100.2 million H-shares, with 10.02 million shares available for public offering in Hong Kong and approximately 90.18 million shares for international placement [3] - The estimated net proceeds from the IPO, assuming the maximum offering price of HKD 131.50 per share and no exercise of the over-allotment option, is expected to be HKD 12.9249 billion [3] Group 2: Investor Interest and Fund Utilization - The IPO has attracted 22 cornerstone investors, including notable funds such as Chongqing Industry Mother Fund and Schroders [3] - The raised funds will be allocated for R&D, diversified marketing channels, overseas sales, charging network services, and general corporate purposes [3] Group 3: Financial Performance - According to the prospectus, Seres is projected to achieve revenue of CNY 145.114 billion in 2024, representing a year-on-year growth of 305.47%, with a net profit of CNY 5.946 billion [4] - For the first half of 2025, the company expects to continue its growth trajectory with revenue of CNY 62.359 billion and a net profit of CNY 2.941 billion, marking an 81.03% increase year-on-year [4] Group 4: Strategic Implications - The Hong Kong listing is anticipated to enhance Seres' global resource integration, technology collaboration, and brand value, showcasing the core competitiveness of Chinese new energy vehicle companies in the high-end market [5]

Core Viewpoint - Company Cybers (601127) plans to go public on the Hong Kong Stock Exchange on November 5, 2025, with a maximum offer price of HKD 131.50 per share, aiming to issue 100.2 million H-shares [1] Group 1: Company Overview - Cybers has nearly 40 years of experience in the industry, focusing on the research, development, manufacturing, sales, and service of new energy vehicles and core electric products [1] - The company fully transitioned to the new energy vehicle sector in 2016 and launched the "Wenjie" brand in 2021, positioning itself as "Intelligent Redefinition of Luxury" [1] Group 2: Sales Performance - The Wenjie brand has seen rapid sales growth, with models M5, M7, M9, and M8 achieving significant market success [1] - In the second half of 2024, the Wenjie brand is expected to rank first in the new energy vehicle reputation list with a Net Promoter Score (NPS) of 82%, and the total annual delivery volume is projected to reach 387,100 units, representing a year-on-year increase of 268% [1] Group 3: Financial Aspects - The company has signed agreements with several cornerstone investors, including the Chongqing Industrial Mother Fund, with a total subscription amount of USD 826 million [1] - Cybers expects to net approximately HKD 12.925 billion from the global offering, with the proceeds primarily allocated to research and development (70%), new marketing channels and overseas market expansion (20%), and working capital and general corporate purposes (10%) [1]

Core Viewpoint - The company, Seres, is set to begin accepting investor subscriptions for its Hong Kong IPO as early as next Monday, with the potential to raise between 1.5 billion to 2 billion USD [1] Group 1 - The IPO is anticipated to attract significant investor interest due to the substantial fundraising target [1] - The fundraising range of 1.5 billion to 2 billion USD indicates a strong market position and growth potential for the company [1]

Group 1 - The company, Seres, plans to conduct a global offering of 100.2 million H-shares from October 27 to October 31, 2025, with a maximum offer price of HKD 131.50 per share [1] - The company has secured cornerstone investment agreements totaling approximately USD 826.5 million from various investors, including Chongqing Industrial Fund and Huatai Capital [2] - Assuming no exercise of the over-allotment option and a share price of HKD 131.50, the net proceeds from the global offering are expected to be around HKD 12.925 billion, with 70% allocated to R&D, 20% to new marketing channels and overseas sales, and 10% for working capital [3] Group 2 - Seres focuses on the research, development, manufacturing, sales, and service of electric vehicles and core components, achieving significant milestones with its core brand, Wanjie [4] - The Wanjie brand has seen rapid sales growth, with models like Wanjie M5, M7, M8, and M9 achieving notable delivery records and market leadership in their respective segments [4] - Financially, the company's revenue is projected to increase from RMB 35.8 billion in 2023 to RMB 145.1 billion in 2024, representing a year-on-year growth of 305.5%, with gross margin rising from 7.2% to 23.8% [5]

Core Viewpoint - The company, Seres, is set to launch an initial public offering (IPO) of 100.2 million H-shares, with a price cap of HKD 131.50 per share, aiming to raise approximately HKD 12.925 billion for various strategic investments [1][3]. Group 1: IPO Details - The IPO will take place from October 27 to October 31, 2025, with 10% allocated for public sale in Hong Kong and 90% for international investors, along with a 15% over-allotment option [1]. - The expected trading start date for the H-shares is November 5, 2025 [1]. Group 2: Cornerstone Investment Agreements - The company has secured cornerstone investment agreements with multiple funds and investment firms, totaling approximately USD 826.5 million [2]. Group 3: Use of Proceeds - Approximately 70% of the net proceeds from the IPO will be allocated to research and development, 20% for diversifying marketing channels and enhancing global brand awareness, and 10% for working capital and general corporate purposes [3]. Group 4: Company Overview - Seres focuses on the research, development, manufacturing, sales, and service of electric vehicles and core components, leveraging nearly 40 years of industry experience [4]. - The company has launched several models under its core brand, "Wenjie," achieving significant sales milestones, including the Wenjie M5, M7, M8, and M9, with the M7 projected to deliver around 200,000 units in 2024 [4]. Group 5: Performance Metrics - The Wenjie brand achieved a total delivery of 387,100 units in 2024, representing a year-on-year growth of 268% [4]. - Financially, the company's revenue is expected to increase from RMB 35.8 billion in 2023 to RMB 145.1 billion in 2024, marking a growth of 305.5% [5]. - The gross margin is projected to rise from 7.2% in 2023 to 23.8% in 2024, an increase of 16.6 percentage points [5].

Core Viewpoint - The company, Seres (09927.HK), is planning a global offering of 100.2 million H-shares, with a maximum price of HKD 131.50 per share, aimed at enhancing its capital for research and development, marketing, and operational needs [1][4]. Group 1: Company Overview - Seres is a technology-driven enterprise focused on the electric vehicle (EV) sector, involved in the research, manufacturing, sales, and service of EVs and core components [1]. - The company has a history of nearly 40 years, starting from its initial venture in springs and shock absorbers, expanding into motorcycles, and eventually transitioning to the EV market in 2016 [1]. Group 2: Product and Market Performance - The company emphasizes a "user-defined car" market approach and a "software-defined car" technology route, aiming to provide sustainable and iterative product experiences [2]. - The core brand, "Wenjie," has seen rapid sales growth since its launch, with models like Wenjie M5, M7, M8, and M9 achieving significant market success [2]. - Wenjie M5 set a record for the fastest delivery of over 10,000 units for a new brand in its launch year, while Wenjie M7 became the best-selling model in the 300,000 RMB price range in China [2]. Group 3: Investment and Financials - The company has secured cornerstone investment agreements totaling approximately USD 826 million (around HKD 64.21 billion), with cornerstone investors committing to purchase 48.83 million shares at the maximum offering price [3]. - Assuming no adjustments to the offering and a share price of HKD 131.50, the estimated net proceeds from the global offering would be around HKD 12.925 billion, with planned allocations of 70% for R&D, 20% for marketing and global brand enhancement, and 10% for working capital [4].

Group 1 - As of October 26, 2023, 1,311 A-share listed companies have disclosed their Q3 reports, with 773 companies reporting a year-on-year net profit growth of approximately 58.96% [1] - Significant profit growth is observed in sectors such as building materials, steel, electronics, non-ferrous metals, power equipment, non-bank financials, computers, and retail [1] - A total of 60 A-share companies have announced dividend plans for Q3 2025, with 42 companies proposing cash dividends exceeding 1 yuan per 10 shares [1] Group 2 - Foreign institutional investors have shown an active stance in Q3 2023, focusing on high-growth performance, technology, and high-end manufacturing sectors, particularly in semiconductors, communications, and new materials [2] - Companies such as Zhongcai Technology, Placo New Materials, and others have seen significant foreign investment, with some experiencing notable stock price increases [2] Group 3 - The A-share market has shown resilience amid recent fluctuations, with public funds maintaining high levels of research activity, particularly favoring the pharmaceutical and electronics sectors [4] - The performance of active equity funds has varied significantly, with those focusing on technology and emerging industries outperforming those with a value-oriented approach [4] Group 4 - The A-share market has experienced a style shift, with large-cap stocks outperforming small-cap stocks, as evidenced by the Shanghai Composite Index rising 4.33% in the past month [7] - Fund managers believe that the market is moving towards larger market capitalization stocks due to economic stabilization and the ongoing Q3 reporting period [7] Group 5 - By the end of Q3 2023, social security funds held shares in 135 stocks, with a total holding of 2.377 billion shares valued at 51.33 billion yuan, indicating a strategic focus on technology sectors [8] - The funds have increased their positions in 63 new stocks, with a significant number showing year-on-year profit growth [8] Group 6 - The ETF market has maintained high activity levels, with the total market value of ETFs in Shanghai exceeding 4 trillion yuan and in Shenzhen surpassing 1.6 trillion yuan, indicating a competitive landscape among brokerage firms [9] Group 7 - Nearly 2,000 public funds have reported a total profit of 101.3 billion yuan for Q3 2023, with a strong focus on technology innovation assets [10] - The investment trend is shifting towards hard technology sectors, reflecting an increase in investor risk appetite and a focus on high-growth sub-industries [10]

Core Viewpoint - Seres is set to launch its IPO on the Hong Kong Stock Exchange, with a total issuance scale of approximately $1.7 billion, marking it as one of the largest tech IPOs in Asia for 2025 [3][4] Group 1: IPO Details - Seres submitted its listing application to the Hong Kong Stock Exchange on April 28, 2023, and passed the hearing on October 13, 2023 [3] - The international placement and public offering began on October 27, 2023, with the final issue price expected to be determined on November 3, 2023, and trading to commence on November 5, 2023 [3] - The issuance scale is approximately $1.7 billion, with 49% or $826 million already subscribed by 22 cornerstone investors, including Schroders and Mirae [3] Group 2: Valuation and Market Position - The target price range for Seres' shares is set between 120-140 RMB (approximately 150-175 HKD), corresponding to a market capitalization of 118.5-142.2 billion RMB [3] - If priced at 131.50 HKD, Seres' market capitalization would reach approximately 215 billion HKD, placing it alongside other new energy vehicle companies like NIO and Li Auto [3] Group 3: Fund Utilization - 70% of the net proceeds from the fundraising will be allocated to technology research and development, 20% to overseas sales networks and charging infrastructure, and 10% for working capital [3] Group 4: Expansion Plans - Seres plans to establish 100 experience centers in Europe and the Middle East by 2026 and collaborate with Huawei to build a supercharging network aimed at covering 80% of major international highways [4]

格隆汇10月27日｜赛力斯在港交所公告，10月27日-10月31日招股，在港上市拟全球发行100,200,000股 H股（视乎发售量调整权及超额配股权行使与否而定）。除非另行公告，发售价将不超过每股发售股份 131.50港元。预期股票将于11月5日在港交所开始交易。 ...