Core Viewpoint - The recent postponement of the IPO for Haixi New Drug highlights ongoing challenges in the Hong Kong stock market, particularly regarding compliance and investor behavior in the context of the FINI system [1][4][5] Group 1: IPO Details - Haixi New Drug's IPO was initially scheduled for October 17, following a successful subscription period from October 9 to October 14, which saw a subscription amount of HKD 309.4 billion, oversubscribed by 3,113 times [4] - The company planned to issue 11.5 million shares, with approximately 10% allocated for public offering in Hong Kong and 90% for international placement, at a price range of HKD 69.88 to HKD 86.40 per share [4] - The announcement of the postponement came after a 25% increase in the dark market, raising concerns and speculation about potential issues with international placements [4][5] Group 2: Market Context - The Hong Kong IPO market has seen a significant increase in activity, with 66 new IPOs in the first three quarters of the year, a year-on-year increase of 46.7%, raising a total of HKD 182.4 billion, which is a 228.1% increase [7] - The healthcare sector has been particularly strong, with seven out of the top ten performing new stocks in the first nine months being in the medical field, showcasing the sector's robust performance amid a booming market for innovative drugs [7] Group 3: Company Profile - Haixi New Drug focuses on a hybrid model of generic and innovative drugs, with a strong emphasis on first-generic, difficult-to-generate, and high-generic drug development [9] - The company has a pipeline that includes one Phase II clinical project and three preclinical projects, targeting oncology, ophthalmology, and respiratory diseases [9] - Financially, Haixi New Drug reported revenues of approximately HKD 2.12 million, HKD 3.17 million, HKD 4.67 million, and HKD 2.49 million over the reporting period, with a compound annual growth rate of 48.4% [9] Group 4: Financial Metrics - The company's gross margin has consistently remained above 80%, indicating strong profitability and stable performance [9] - The estimated price-to-earnings (P/E) ratio for the IPO is around 41 times, which is lower than the average P/E of 58 times for similar A-share generic drug companies, suggesting potential for valuation appreciation [10]

Core Insights - The Hong Kong IPO market has been thriving this year, with a total of 68 new stocks listed in the first three quarters, raising a total of HKD 182.45 billion, representing year-on-year increases of 51% and 227% respectively [1] Group 1 - The number of new IPOs in Hong Kong has reached 68 in the first three quarters of this year [1] - The total amount raised through these IPOs is HKD 182.45 billion [1] - Deloitte China has raised its forecast for the total IPO financing in Hong Kong for the year 2025, estimating it will reach between HKD 250 billion and HKD 280 billion [1]

Core Viewpoint - The Hong Kong Stock Exchange (HKEX) experienced a significant day on July 9, with five companies, including Lens Technology and Geek+, going public simultaneously, marking a historic event with six gongs being struck at once [1][3]. Group 1: Companies Going Public - The five companies listed on July 9 raised a total of approximately HKD 98.21 billion in net proceeds, with Lens Technology leading the fundraising efforts [4]. - Lens Technology's shares were priced at HKD 18.18, achieving a subscription rate of 462.76 times for public offerings and 16.68 times for international offerings, resulting in net proceeds of about HKD 46.94 billion [5][7]. - Geek+ focused on logistics robotics, priced its shares at HKD 16.8, and garnered a subscription rate of 133.62 times for public offerings, raising approximately HKD 25.45 billion [7]. - Xunzhong Communication, a cloud communication service provider, priced its shares at HKD 13.55, achieving a subscription rate of 12.79 times for public offerings, raising around HKD 3.68 billion [7]. - Peak Semiconductor, operating in the semiconductor sector, priced its shares at HKD 120.5, with a subscription rate of 138.26 times for public offerings, raising approximately HKD 21.36 billion [7]. - Dazhong Dental, the only healthcare company among the listings, priced its shares at HKD 20, achieving a subscription rate of 108.25 times for public offerings, raising about HKD 1.78 billion [7]. Group 2: Market Trends and Future Outlook - The IPO market in Hong Kong has been robust, with 44 new listings in the first half of 2025, a 47% increase from 30 in the same period last year, and total fundraising amounting to HKD 107.1 billion, a 699% increase year-on-year [8]. - The Hong Kong IPO market is expected to remain strong in the second half of the year, supported by favorable funding and policy conditions, particularly for technology companies [8]. - As of June 30, 2025, there were 211 companies in the pipeline for IPOs, with over 80% being first-time applicants, primarily in software services, healthcare, and industrial manufacturing [9].