Currently 6 companies are in IPO, strategies are all out!

Impression Da Hong Pao$IMPRESSION DHP(02695.HK) 

Impression Da Hong Pao Limited is a state-owned cultural tourism service enterprise headquartered in Wuyishan, Fujian Province.

Performance and show services account for 95% of revenue, with the rest being Impression Cultural Tourism Town business and tea-themed hotel business.

Flagship project: "Impression·Da Hong Pao" live performance (directed by Zhang Yimou), which has been performed over 6,700 times since its premiere in 2010, attracting over 9.4 million viewers. The performance is themed around Wuyishan tea culture, combined with natural landscapes. In terms of 2024 box office revenue, it ranks third among all Chinese live tourism performances and tenth among all cultural tourism performances.

This company participated in roadshows before, and the boss of Da Hong Pao is quite nice—next time I go, I can save on ticket money~

Revenue: ¥63 million, ¥144 million, ¥137 million.

Net profit margin: -4.1%, 33.0%, 31.2%.

Gross margin: 27.2%, 57.8%, 54.6%.

Apart from the pandemic and seasonal impacts, it's relatively stable, linked to climate and consumer sentiment. The growth point—ticket prices—rises by about 3~4% annually, which is quite moderate.

The company's IPO valuation is ¥590 million, small-cap, 10.6PE/4.3PS, cheaper than the industry leader Songcheng Performance's 25PE/9.36PS, and also cheaper than the general cultural tourism sector's 20-40PE/6-10PS.

Subscription: Can participate

Da Hong Pao is purely small-cap, with decent fundamentals but only stable operations, somewhat well-known, and the company's valuation is cheap, with 3,610 lots in public offering, a lottery within a lottery.Old Cat Rating gives it 3-5 stars, detailed strategies are on Knowledge Planet!

Nanhua Futures$NANHUA FUTURES(02691.HK) 

Nanhua Futures is A+H, the first futures stock in the A-share market (603093.SH). By 2024 total revenue, the company ranks eighth among all Chinese futures companies and first among all non-financial institution-backed futures companies, with an AA rating (highest tier, 22 companies in total).

The company's business is divided into four segments:

Futures brokerage: 36%, domestic trading commissions and margin interest, declining due to low-commission competition.

Risk management: 4~10%, operated by Nanhua Capital, including OTC derivatives, basis trading, and market-making.

Wealth management: 5~7%, Nanhua Fund.

Overseas financial services: 55%, through platforms like Trans-Hong Kong International, providing overseas futures, securities brokerage, asset management, and leveraged forex trading services. 24% YoY in 2024 but flat in 2025.

In terms of valuation, Nanhua is discounted by 25~44%, the gap is huge. Hongye Futures is discounted by 70% and often holds the title of the lowest AH discount. While Nanhua isn't that extreme, its discount is normal among brokers but with high uncertainty.

Subscription: Case-by-case & Do not participate

Nanhua Futures has an extremely high overseas business proportion, large in scale and a pillar business. The fundamentals are decent, but the A+H discount range of 25~44% is too wide. Looking at the lower bound, the upside is limited with such uncertainty. The only reason to participate is to gamble on lower-bound pricing in a cold sector.Old Cat Rating gives it 2-4 stars, detailed strategies are on Knowledge Planet!

Huazi Biotech$B&K CORP-B(02396.HK) 

Huazi Biotech is a clinical-stage biopharmaceutical company headquartered in China. Jia, Wang, Zhang, and Li control 66% of the company's equity through a concerted action agreement.

The company has two core PDGF candidate products:

Pro-101-1: Completed Phase II, initiating Phase III in 25Q4 for treating burns (a must-have indication for growth factors).

Pro-101-2: Phase II for treating diabetic foot (affecting 1/4 of diabetic patients).

PDGF products once cooled due to warnings about carcinogenic risks from the only overseas-approved drug, with few new entrants. However, the warning was later withdrawn. The mainstream FGF, EGF, and NGF in the Chinese market were approved in large numbers during the early imperfect system, with many mature products. Later, strict controls reduced new entrants, making competition extremely fierce.

The company's valuation cap is ¥6 billion, doubling from ¥3.3 billion in 2023 isn't exaggerated. The free float is ¥4.2 billion, requiring a 126% rise for inclusion in Stock Connect. In December's IPO, capable investors will likely rush for inclusion.

Subscription: Can participate

Huazi is a growth factor pharmaceutical company, positioning itself as an adjuvant for burns and diabetic foot. The market competition is fierce, fundamentals are weak, and the public offering of 9,000 lots is a pure lottery ticket. Huatai is the lead sponsor, but CITIC is the greenshoe (a strange structure). The valuation isn't too expensive, and the biotech theme still has some support. There might be an inclination for Stock Connect inclusion,Old Cat Rating gives it 3-5 stars!

BenQ Medical$BENQ HOLDING(02581.HK) 

BenQ Medical Group is a private for-profit comprehensive hospital group in mainland China. Qisda Technology directly and indirectly owns about 95% of the company's shares (dropping to 75% post-IPO). Controlled by Taiwan—no wonder it took so long.

The company owns and operates two comprehensive hospitals in Jiangsu Province, China:

Nanjing BenQ Hospital (Tier 3A): The third-largest private for-profit comprehensive hospital in China, with a 0.3% national share.

Suzhou BenQ Hospital (Tier 3): Fifth in the province.

Revenue: ¥2.336 billion, ¥2.688 billion, ¥2.659 billion

Net profit margin: 3.8%, 6.2%, 4.1%

Gross margin: 16.4%, 18.9%, 18.1%

Growth has stalled, fluctuating due to illness and policy impacts, overall stable operations.

Valuation at ¥3.644 billion, PS1.38, PE38.8, compared to Huaren Medical's 8x PE, Universal Medical and Ruici Medical's ~5x PE, it's definitely expensive. But earlier, another oncology hospital, Baize Medical$BAYZED HEALTH(02609.HK) also listed, still losing money, with a 4.9x PS—even more expensive—but it was aiming for Stock Connect inclusion. IPO at ¥5.5 billion market cap, hitting the inclusion line within a week. After crossing the line, it successfully entered Stock Connect in September, a classic case of surging then collapsing—now IPO gains are almost wiped out. Middle finger.

Three cornerstone investors hold 44%, a high proportion, including Taiwan-listed Herong Technology, Hefu Holdings (603122.SH), and Suzhou Finance Bureau.

Subscription: Can participate

BenQ is a stable hospital stock, controlled by Taiwan, with high cornerstone participation. The valuation is expensive but no greenshoe, likely driven by Stock Connect sentiment (same as Baize Medical),Old Cat Rating gives it 3-5 stars!

$JD INDUSTRIALS(07618.HK) $HASHKEY HLDGS(03887.HK) $CIDI(03881.HK) $ZHIHUI MINING(02546.HK)$JD INDUSTRIALS(07618.HK) $BAO PHARMA-B(02659.HK)