In today’s briefing:
- Alibaba (9988 HK): 2Q24, Higher Margin Means Smooth Reorganization, Buy
- Wuxi XDC: Thoughts on First Day Trading
- WuXi XDC IPO: Trading Debut
- Hong Kong CEO/Director Dealings (17 Nov): ENN’s Controlling Shareholder Buying; Li Buys More PCCW
Alibaba (9988 HK): 2Q24, Higher Margin Means Smooth Reorganization, Buy
- Alibaba’s operating margin rose to 15% in 2Q24 versus 12% in 2Q23.
- Every expense as percentage of total revenue decreased and EBITDA of every business line increased.
- We believe the reorganization is going smoothly and the stock has an upside of 82%. Buy.
Wuxi XDC: Thoughts on First Day Trading
- Wuxi XDC priced its IPO at HK$20.60 per share (upper-end of range), and raised HK$3.5bn (US$417m) at a market capitalisation of HK$24.3bn and post-money EV of HK$20.4bn.
- Both HK offering and the international offering of the company were significantly oversubscribed by 49.96x and 19.6x respectively.
- Our DCF value per share is still at a significant premium to the final IPO price, and we expect Wuxi XDC’s IPO to have a strong debut.
WuXi XDC IPO: Trading Debut
- WuXi XDC Cayman (1877628D HK) priced its IPO at HK$20.60 per share to raise the gross proceeds of US$470 million. The shares will start trading tomorrow.
- We previously discussed the IPO in WuXi XDC IPO: The Bull Case, WuXi XDC IPO: The Bear Case and WuXi XDC IPO: Valuation Insights.
- The market sentiment on the sector has modestly weakened. However, the IPO price is attractive, with our DCF valuation of HK$22.89 per share, 11.1% above the IPO price.
Hong Kong CEO/Director Dealings (17 Nov): ENN’s Controlling Shareholder Buying; Li Buys More PCCW
- The data in this insight is collated from the “shareholding disclosure” link on the HKEx website.
- Often there is a corresponding HKEx announcement on the increase – or decrease – in the shareholding by directors. Or pledging. However, such disclosures are by no means an absolute.
- The key stocks mentioned in this regular insight are ENN Energy (2688 HK), PCCW Ltd (8 HK) and Wuxi Biologics (2269 HK).
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
