Group 1: New IPO Performance - Nobikang, focused on AI industrial applications, saw a significant increase of 275.75% in its dark market trading, closing at 300.60 HKD per share with a total transaction volume of 65.22 million HKD [1] - Qingsong Health, operating in the "AI + Health" sector, also performed well with a rise of 127.95%, closing at 51.7 HKD per share and achieving over 1000 times subscription during the public offering [2] - Hansi Aitai - B, a pre-profit biotech company, had an impressive public offering with approximately 2600 times oversubscription, but its dark market performance was subdued, closing at 32.66 HKD per share with only a 2.06% increase [2] Group 2: Market Outlook for IPOs - The Hong Kong IPO market is expected to recover significantly in 2025, with around 100 companies projected to raise over 250 billion HKD [3] - Forecasts for 2026 suggest that 150 to 200 new stocks may be listed, with fundraising potentially exceeding 300 billion HKD, maintaining Hong Kong's position as the top global IPO market [3] - The success rate and apparent return of new IPOs have improved, with nearly 70% of new stocks reporting gains on their first day, and 16 stocks achieving over 100% cumulative increase throughout the year [3] Group 3: Investment Considerations - Recent research indicates an increase in the first-day loss rate for new stocks since Q4, highlighting the importance of selecting quality stocks for investment [4] - The performance of the secondary market for the industry of the IPO project is crucial; better recent performance correlates with higher potential returns for IPOs [4] - High average returns from recent IPOs may signal a turning point, as returns exceeding 30% could lead to lower average returns for subsequent IPOs [4]

Core Viewpoint - Oklo, a nuclear power startup, has seen its market value soar to $20 billion despite lacking binding contracts and revenue, raising questions about the sustainability of its valuation, which appears to be driven by "promises" rather than fundamentals [1][2]. Group 1: Valuation and Market Sentiment - The current market enthusiasm for Oklo is reminiscent of Tesla's stock surge in 2014, where revolutionary promises led to inflated valuations that far exceeded actual production capabilities [2]. - Oklo claims a project reserve value of $30 billion but has not clarified how many of these projects have a solid economic basis, lacking clear pricing per megawatt (MW) and timelines for cash flow conversion [2][4]. - The company's potential project reserve is stated to be 14 GW, but these agreements are non-binding, meaning actual demand hinges on investor belief rather than contractual obligations [4]. Group 2: Financial Health and Cash Flow - Oklo's first reactor, Aurora, is not expected to be operational until 2027-2028, making revenue generation unrealistic in the near term [5]. - The company has approximately $682.9 million in cash and securities, but it is burning through cash rapidly, with a trailing twelve-month cash flow of approximately -$56 million [7][9]. - Even if the company maintains current spending without new investments, its cash reserves could be depleted in 8-10 years, especially with plans to build a $1.68 billion fuel refining facility that lacks revenue support [9][11]. Group 3: Management Actions and Risks - Recent insider selling by management, including significant sales by co-founders and the CFO, raises concerns about their confidence in the company's short-term profitability [12][13][14]. - The management's plan to build a fuel manufacturing plant is still in the planning stages, and the company currently lacks its own fuel production capacity, relying on external sources for initial fuel [15]. - Oklo's timeline for reactor development is unrealistic, with the U.S. Department of Energy requiring critical milestones to be met by mid-2026, which the company is unlikely to achieve [16][21]. Group 4: Potential Catalysts and Future Outlook - The recent inclusion of Oklo in the U.S. Department of Energy's reactor pilot program may provide regulatory support, potentially facilitating faster financing and approval processes [17]. - Strategic partnerships with companies like KHNP and Liberty Energy indicate efforts to secure supply chains, but many agreements remain non-binding and could be canceled at any time [18]. - Oklo is positioning itself as a solution provider for AI and data center energy needs, which could drive stock price increases despite unclear financial details [19]. Group 5: Upcoming Financial Reporting - Analysts will focus on cash burn rates and reserves, progress on fuel and reactor development, and the existence of binding customer contracts or power purchase agreements (PPAs) in the upcoming Q3 2025 financial report [20][21].