Core Viewpoint - Chongqing Zhixin Industrial Co., Ltd. is accelerating its listing process, backed by Changan and Geely, despite facing significant financial challenges and high customer concentration risks [2][3]. Company Overview - Zhixin Industrial is an automotive parts manufacturer with major clients including Changan Automobile, Geely Automobile, NIO, and Li Auto, which account for over 70% of its revenue [3][14]. - The company has seen a steady increase in accounts receivable, exceeding 1.1 billion yuan by the end of 2024 [3][14]. Financial Performance - Revenue from 2022 to 2024 was 2.091 billion yuan, 2.564 billion yuan, and 3.088 billion yuan, with net profits of 70.69 million yuan, 132 million yuan, and 204 million yuan respectively [14]. - The top five customers contributed 73.86%, 79.77%, and 74.82% of total revenue during the same period [14]. Customer Dependency and Risks - The company has a high dependency on major clients, with Changan and Geely being the top two customers, contributing 28.94%-30.26% and 24.20%-29.51% of revenue respectively from 2022 to 2024 [14]. - Zhixin Industrial faced a significant loss of nearly 100 million yuan due to issues with Neta Auto, leading to increased credit impairment losses [16][17]. Capital Structure and Control - The actual controllers of Zhixin Industrial are Chen Zhiyu and Jing Bing, who together control over 83.75% of the voting rights through various holding platforms [4][6]. - Chen Xiaohan, their daughter, serves as the board secretary and has a background in the underwriting institution for the company's listing [4][12]. Funding Needs and Challenges - The company plans to raise 1.329 billion yuan, with 300 million yuan allocated for working capital, highlighting its urgent need for funds [22]. - Zhixin Industrial has a projected operational funding gap of approximately 800 million yuan over the next three years [22]. Debt and Cash Flow - The company has faced consistent cash flow challenges, with cash reserves decreasing from 162 million yuan in 2022 to 154 million yuan in 2024 [19]. - Short-term and long-term borrowings indicate ongoing financial pressure, with short-term debts totaling 615 million yuan to 706 million yuan from 2022 to 2024 [20][21].

Core Viewpoint - UBS maintains a "Sell" rating on MTR Corporation (00066) due to unattractive risk/return profile and lowers earnings per share forecasts for 2025 to 2027 by 2% to 12% reflecting higher interest expenses [1] Financial Projections - Target price increased from HKD 21.6 to HKD 24, representing a 30% discount to net asset value per share [1] - Estimated funding gap of HKD 117 billion for MTR from 2025 to 2029 due to rising capital expenditures on new railway projects and increased interest expenses [1] Dividend and Cash Flow Analysis - MTR's dividend yield is 4.7%, compared to an average of 5.4% for leading developers, indicating limited upside for dividends and weak independent credit status [1] - Projected negative free cash flow after dividends for 2025 is HKD -12.98 billion, with further negative projections for 2026 to 2029 of HKD -8.517 billion, HKD -26.369 billion, HKD -34.47 billion, and HKD -35.078 billion respectively [1] - Expected dividend per share for the next two years is HKD 1.31 [1]

Core Viewpoint - UBS maintains a "sell" rating on MTR Corporation, reflecting a lack of attractive risk/reward profile, while lowering earnings per share forecasts for 2025 to 2027 by 2% to 12% due to increased interest expenses [1] Financial Projections - Target price raised from HKD 21.6 to HKD 24, representing a 30% discount to net asset value per share [1] - Estimated funding gap of HKD 117 billion for MTR from 2025 to 2029 due to rising capital expenditures on new railway projects and increased interest expenses [1] Debt and Dividend Concerns - If the land market remains sluggish, the net asset-to-debt ratio (considering perpetual capital securities as debt) could approach 100% by 2029, raising concerns about the sustainability of long-term dividends [1]