The IPO market picked up in August

Compared with the 10 IPOs in July, the overall number of listings significantly declined in August, with only 3 new stocks listed on HKEX. As of August 31st, the monthly overall performance of the IPO market was diverse. Among them, only the share price of TYK MEDICINES-B (2410.HK) increased by 78.51% since listing, while ZHONGMIAO (1471.HK) and BLACK SESAME (2533.HK) experienced a 12.71% and 6.43% drop in share price, respectively.

Phillip Hong Kong Newly Listed Equities Index ETF (2835.HK)

The ETF aims to fully replicate the Solactive Hong Kong Newly Listed Equities Index, a rules-based equity benchmark designed to track the performance of securities that had a recent initial public offering or new listing on the main board of HKEX. The index is rebalanced quarterly, incorporating securities with IPOs or new listings within the last 756 business days, aiming for a total of 50 securities based on free-float market capitalization. The index also undergoes monthly IPO reviews to include recent IPOs, subject to liquidity and market capitalization criteria.

August Monthly Review

There was no constituent included in the Solactive HK Newly listed Equities Index in August, while 7 existing constituents were removed, including: DPC DASH (1405.HK), FOURTH PARADIGM (6682.HK), RIMAG GROUP (2522.HK), YSB (9885.HK), CARSGEN-B (2171.HK), CLOUDR (9955.HK), and STAR CM (6698.HK). The current number of constituent stocks has reduced from 45 to 38.

Top 10 Holdings

The top 10 holdings of the Solactive Hong Kong IPO changed this month. In August, LEAPMOTOR (9863.HK) fell out of the top ten holdings during this period due to the fall in share price, while MINISO (9896.HK) became the new top ten holdings. Currently, the index focuses on industries as follows: consumer discretionary (including EV companies like Li Auto, Nio, X Peng, etc.), health care (including HUTCHMED, QUANTUMPHARM INC, and WUXI XDC CAYMAN INC), and industrials (including J&T Global Express, JD Logistics, and TUHU Car). The following figures show the top 10 holdings and sector breakdown of the Phillip HK Newly Listed Equities Index:

Key Components Update

• XPENG (9868.HK): According to the August delivery data released by XPENG, the company delivered 14,036 new vehicles this month, a 3% year-on-year increase and a 26% month-on-month increase. The company delivered a total of 77,209 vehicles this year, a YOY increase of 17%. Besides, the cumulative orders for XPENG MONA M03 exceeded 30,000 orders within 48 hours of its launch, and the first batch of new car deliveries were completed at the Chengdu Auto Show at the end of August.
• LI AUTO (2015.HK): According to the August delivery data released by Li Auto, the company delivered 48,122 new vehicles this month, a 37.8% year-on-year increase but a 5.64% fall compared with July. In August, the monthly delivery volume of Ideal L6 exceeded 20,000 units for three consecutive months, further expanding its market share. Li Auto delivered a total of 288,103 vehicles this year and a total of 921,467 vehicles to date.
• Nio (9866.HK): According to August delivery data released by Nio, the company delivered a total of 20,176 new cars this month, a 4% year-on-year increase and a 1.6% month-on-month decrease, but it has remained a 20,000 more monthly delivery volume for four consecutive months. The sales figure includes 11,923 luxury smart electric SUVs and 8,253 luxury smart electric cars. Nio had delivered a total of 128,100 vehicles this year, with a YOY increase of 35.8%. Nio has delivered a total of 577,694 vehicles to date.
• SENSETIME GROUP INC-CLASS B (20.HK): On August 27th, SENSETIME released its performance for the first half of 2024. Data shows that the company achieved 1.74 billion yuan in revenue in the first half of this year, a year-on-year increase of 21%. The generative AI business revenue was nearly 1.1 billion yuan, a significant year-on-year increase of 256%, accounting for 60% of the company’s revenue, becoming the leading business of the group. However, SenseTime still lost 2.477 billion yuan in the first half of this year, a 21.2% less loss YOY.
• JD LOGISTICS (2618.HK): According to the second quarter and interim reports of 2024, JD Logistics’ total revenue in the first half of the year reached 86.3 billion yuan, a year-on-year increase of 11%. The adjusted net profit was 3.12 billion yuan, a year-on-year increase of 2631.2%, which reached a new high level. As of June 2024, JD Logistics has been profitable for five consecutive quarters, and its profitability has increased steadily. Revenue from integrated supply chain customers of the company reached 41.8 billion yuan, and revenue from external integrated supply chain customers reached 15.4 billion yuan, maintaining a steady growth trend.

Top constituent movers in August:

Bottom constituent movers in August:

The Phillip HK Newly Listed Index ETF (2835.HK) Monthly performance for August

The Phillip HK Newly Listed Index ETF (2835.HK) recorded a monthly increase of 0.95% in August, underperforming the Hang Seng Index’s (HSI) 3.72% monthly increase and underperforming the Hang Seng Tech Index’s (HSTI) 1.24% monthly increase. As of August 31st, this ETF had fallen 23.38% since its listing, underperforming the HSI’s fall of 0.02% and the HSTI’s fall of 4.87%.

The IPO market picked up in July

Compared with the 9 IPOs in June, the overall number of listings continued to increase in July, with a total of 10 new stocks listed on HKEX. As of July 31st, the monthly overall performance of the IPO market was poor. Among them, the share prices of CARLINK TECH (2531.HK) and VOICECOMM (2495.HK) increased by 67% and 15%, respectively, since their listing, while ZHONGGAN COMM (2545.HK) and METASURFACE (8637.HK) experienced a 70% and 48% drop in share price, respectively.

Phillip Hong Kong Newly Listed Equities Index ETF (2835.HK)

The ETF aims to fully replicate the Solactive Hong Kong Newly Listed Equities Index, a rules-based equity benchmark designed to track the performance of securities that had a recent initial public offering or new listing on the main board of HKEX. The index is rebalanced quarterly, incorporating securities with IPOs or new listings within the last 756 business days, aiming for a total of 50 securities based on free-float market capitalization. The index also undergoes monthly IPO reviews to include recent IPOs, subject to liquidity and market capitalization criteria.

July Monthly Review

A total of 3 stocks, Quantumpharm INC (2228.HK), RIMAG GROUP (2522.HK), and QUNABOX GROUP LTD (917.HK), were included in the Solactive HK Newly listed Equities Index in July through the monthly fast-track mechanism. In addition, 5 existing constituents were removed, including: KEEP (3650.HK), PALASINO (2536.HK), EDA GROUP HLDGS (2505.HK), MOBVOI (2438.HK), and JENSCARE-B (9877.HK). The current number of constituent stocks has reduced from 47 to 45.

RIMAG GROUP (2522.HK) is a new component stock that performed well this month. The company is the only medical imaging platform operator and manager in China that provides diversified imaging services and value to the entire medical imaging industry chain. It also provides imaging solution services and Rimag Cloud services.

As of December 31st, 2023, the company’s revenue in 2023 was 928.9 million yuan (RMB, the same below), a YOY increase of 18.4%. Gross profit was 332.6 million yuan, a YOY increase of 40.4%; the gross profit margin in 2023 increased from 30.2% in 2022 to 35.8%. The profit for the year attributable to the company’s equity holders was 44.4 million yuan, a significant YOY increase of 12101.9%. The significant increase in profit was mainly because of the company’s recovery from the adverse impact of the COVID-19 epidemic on its business operations and financial condition. In addition, all flagship imaging centers of the company opened between 2018 and 2021 are in the ramp-up period of development, causing it to generate gross losses in 2021 and 2022.

Top 10 Holdings

The top 10 holdings of the Solactive Hong Kong IPO changed this month. In July, ONEWO INC-H (2602.HK) fell out of the top ten holdings during this period due to the decline in share price, while HUTCHMED CHINA LTD (13.HK) became the new top ten holdings. Currently, the index focuses on industries as follows: consumer discretionary (including EV companies like Li Auto, Nio, X Peng, etc.), health care (including HUTCHMED, QUANTUMPHARM INC, and WUXI XDC CAYMAN INC), and industrials (including J&T Global Express, JD Logistics, and TUHU Car). The following figures show the top 10 holdings and sector breakdown of the Phillip HK Newly Listed Equities Index:

Key Components Update

• XPENG (9868.HK): According to the July delivery data released by XPENG, the company delivered 11,145 new vehicles in July, a 1% year-on-year increase and a 4% month-on-month increase. Among them, the delivery volume of the XPENG X9 in July reached 1,459 vehicles, and the cumulative delivery volume since its launch has reached 14,602 vehicles, continuing to lead China’s all-electric MPV and three-row models. The company delivered 63,173 vehicles this year, a YOY increase of 20%.
• LI AUTO (2015.HK): According to the July delivery data released by Li Auto, the company delivered 51,000 new vehicles in July, a 49.4% year-on-year increase, reaching a new record high in monthly deliveries. Sales of the Li Auto L6 remained strong in July, as it had kept delivering over 20,000 vehicles this month. Li Auto delivered a total of 239,981 vehicles this year. As of July 2024, Li Auto had delivered a total of 873,345 vehicles, ranking first among all Chinese new energy vehicle brands.
• Nio (9866.HK): According to July delivery data released by Nio, the company delivered a total of 20,498 new cars in July. Although the delivery volume dropped slightly from June, it has remained a 20,000 more monthly delivery volume for three consecutive months. The sales figure includes 11,964 luxury smart electric SUVs and 8,534 luxury smart electric cars. Nio had delivered a total of 107,924 vehicles this year, with a YOY increase of 43.9%. Nio has delivered a total of 557,518 vehicles to date.
• J&T GLOBAL EXPRESS (1519.HK): According to data from Frost & Sullivan, J&T Global Express has a market share of 11.6% in China based on parcel handling volume in 2023. As of the end of 2023, the company has been widely recognised since it partnered with more well-known branded customers such as Blue Moon, BOTARE, Senma, Be & Cheery, Xtep, Peak, QIAODAN, and Anta. According to the latest operating data for the second quarter of 2024, J&T processed 4.89 billion parcels in the Chinese market, a YOY increase of 30.6%, which is significantly higher than peers and the overall industry level. As of June 30, 2024, its express delivery network in China covers more than 99% of county-level cities, operates a total of 83 transshipment centres, more than 5,900 trunk vehicles, and has built more than 260 sets of automated intelligent sorting equipment.
• SENSETIME GROUP INC-CLASS B (20.HK): During the Paris Olympics, the AI solutions of SenseTime will fully participate in the Chinese national basketball team’s tournament journey by providing advanced data analysis and strategic optimization. In addition, its sports broadcast technologies will provide extensive live coverage of table tennis and archery events. According to reports, based on the InnoMotion broadcasting solution that was jointly developed with SMT, audiences without the need for wearable devices can leverage SenseTime’s 3D markerless motion capture capabilities to achieve multi-person, large-area, and multi-angle coverage of various sporting scenes.

Top constituent movers in July:

Bottom constituent movers in July:

The Phillip HK Newly Listed Index ETF (2835.HK) Monthly performance for July

The Phillip HK Newly Listed Index ETF (2835.HK) recorded a monthly decline of 3.40% in July, underperforming the Hang Seng Index’s (HSI) 2.39% monthly decline and underperforming the Hang Seng Tech Index’s (HSTI) 0.63% monthly decline. As of July 31st, this ETF had fallen 24.10% since its listing, underperforming the HSI’s fall of 3.60% and the HSTI’s fall of 6.03%.

The IPO market picked up in June

Compared with the six IPOs in May, the overall number of listings in June continued to increase, with a total of nine new stocks listed on HKEX. As of June 28th, the IPO market for the month was mixed, and the performance of these stocks was divergent. Among them, the share prices of EASOU TECH (2550.HK) and LAOPU GOLD (6181.HK) increased by 221% and 73%, respectively, since their listing, while UBOT HOLDING (8529.HK) and TIANJUDIHE (2479.HK) experienced a 31% and 28% drop in share price, respectively.

Phillip Hong Kong Newly Listed Equities Index ETF (2835.HK)

The ETF aims to fully replicate the Solactive Hong Kong Newly Listed Equities Index, a rules-based equity benchmark designed to track the performance of securities that had a recent initial public offering or new listing on the main board of HKEX. The index is rebalanced quarterly, incorporating securities with IPOs or new listings within the last 756 business days, aiming for a total of 50 securities based on free-float market capitalization. The index also undergoes monthly IPO reviews to include recent IPOs, subject to liquidity and market capitalization criteria.

June Monthly Review

A total of 21 stocks were included in the Solactive HK Newly listed Equities Index in June through the quarterly rebalancing mechanism, including: KE HOLDINGS INC (2423.HK), CLOUD MUSIC INC (9899.HK), SICHUAN KELUN-BIOTECH BIOPHA (6990.HK), BEIJING FOURTH PARADIGM TECH (6682.HK), ANE CAYMAN INC (9956.HK), SHANGHAI CHICMAX COSMETIC CO (2145.HK), SUPER HI INTERNATIONAL HOLDING LTD (9658.HK), IMOTION AUTOMOTIVE TECHNOLOG (1274.HK), GLOBAL NEW MATERIAL INTERNAT (6616.HK), LEPU BIOPHARMA CO LTD-H (2157.HK), STAR PLUS LEGEND HOLDINGS-H (6683.HK), CARSGEN THERAPEUTICS HOLDING (2171.HK), PALASINO HOLDINGS LTD (2536.HK), CLOUDR GROUP LTD (9955.HK), AINNOVATION TECHNOLOGY GROUP CO LTD (2121.HK), DINGDANG HEALTH TECHNOLOGY G (9886.HK), EDA GROUP HOLDINGS LTD (2505.HK), MOBVOI INC (2438.HK), JENSCARE SCIENTIFIC CO LTD-H (9877.HK), and EDIANYUN LTD-H (2416.HK). In addition, 11 existing constituents were removed, including: TRIP.COM GROUP LTD (9961.HK), KUAISHOU TECHNOLOGY (1024.HK), BAIDU INC (9888.HK), BILIBILI INC (9626.HK), SCICLONE PHARMACEUTICALS HOL (6600.HK), SHANGHAI MICROPORT MEDBOT GR (2252.HK), BAIRONG INC (6608.HK), FLOWING CLOUD TECHNOLOGY LTD (6610.HK), LESI GROUP LTD (2540.HK), CHONGQING HONGJIU FRUIT CO-H (6689.HK), and NEW HORIZON HEALTH LTD (6606.HK). The current number of constituent stocks has increased from 37 to 47.

DPC DASH LTD. (1405.HK) is a new constituent that performs well and accounts for a large proportion of this month’s index. The company is the exclusive franchisee of Domino’s Pizza in Mainland China, Hong Kong SAR, and Macau SAR. The company has localised its main features based on the needs of Chinese consumers and adjusted and developed its business model accordingly. Also, the number of its stores increased by 119.4%, from a total of 268 stores as of January 1st, 2020, to a total of 588 stores as of December 31st, 2022.

As of December 31st, 2023, the revenue of the company in 2023 was RMB 3050.7 million, a 51.0% YoY increase. The gross profit was RMB 2.3 million, turning the original loss position into a profit. The loss for the year attributable to the company’s equity holders was RMB 26.6 million, an 88.1% YoY decrease. The net loss of the company is because it keeps promoting rapid growth and plans to achieve long-term profitability by expanding geographical coverage and deepening market penetration.

Top 10 Holdings

The top 10 holdings of the Solactive Hong Kong IPO changed this month. TRIP.COM GROUP LTD (9961.HK), KUAISHOU TECHNOLOGY (1024.HK), BAIDU INC (9888.HK), and BILIBILI INC (9626.HK), the original top ten holdings in May, were removed from the index since they listed over 756 trading days; While KE HOLDINGS INC (2423.HK), ZHEJIANG LEAPMOTOR TECHNOLOG (9863.HK), JD LOGISTICS INC (2618.HK), and GIANT BIOGENE HOLDING CO LTD (2367.HK), became the new top ten holdings of the month. Currently, the index focuses on industries as follows: consumer discretionary (including EV companies like Li Auto, Nio, X Peng, etc.), real estate (including KE HOLDINGS INC and ONEWO INC), and industrials (including J&T Global Express, JD Logistics, and TUHU Car). The following figures show the top 10 holdings and sector breakdown of the Phillip HK Newly Listed Equities Index:

Key Components Update

• KE HOLDINGS (2423.HK): Beijing introduced new policies for its real estate market, including reducing the down payment ratio to 20% for first-time home buyers and to 35% for second home buyers, decreasing the lower limit of mortgage rates, relaxing the definition of first-time home ownership for families with multiple children, and encouraging developers and brokers to participate in the trade-in program. Since this policy will help to increase the activity of the first-hand and second-hand housing markets in Beijing, KE HOLDINGS will have core competitiveness as a real estate agency platform as 25% of the company’s total second-hand transaction volume comes from Beijing.
• LI AUTO (2015.HK): According to the June delivery data released by Li Auto, the company delivered 47,774 new vehicles in June, a 46.7% year-on-year increase. Sale potential for the L series kept rising in June, and Li Auto L6 successfully delivered over 20,000 vehicles this month. In the second quarter, Li Auto delivered a total of 108,581 vehicles, a 25.5% year-on-year increase. As of June 2024, Li Auto had delivered a total of 822,345 vehicles, ranking first among all Chinese new energy vehicle brands.
• Nio (9866.HK): According to June delivery data released by Nio, the company delivered a total of 21,209 new cars in June, a year-on-year increase of 98.1%, hitting a record high. The sales figure includes 11,581 luxury smart electric SUVs and 9,628 luxury smart electric cars. In the second quarter, Nio delivered a total of 57,373 new cars, a year-on-year increase of 143.9%. Nio has delivered a total of 537,020 vehicles to date.
• XPENG (9868.HK): According to the June delivery data released by XPENG, the company delivered 10,668 new vehicles in June, a 23.76% year-on-year increase and a 5.14% month-on-month increase. Among them, the delivery volume of the XPENG X9 in June reached 1,687 vehicles, and the cumulative delivery volume since its launch has reached 13,143 vehicles, maintaining an astonishing sales record in China’s all-electric MPV and three-row model area.
• J&T GLOBAL EXPRESS (1519.HK): According to the operating data for Q2 2024 that was released by J&T Global Express, the total parcel volume of the company in the second quarter reached 5.983 billion pieces, a 30.7% year-on-year increase; its average daily parcel volume was 65.8 million pieces, a 30.7% year-on-year increase. The cumulative parcel volume of J&T Global Express in the first half of the year was 11.015 billion pieces, a 38.3% year-on-year increase; the average daily parcel volume was 60.5 million pieces, a 37.5% year-on-year increase.

Top Constituent movers in June:

Bottom constituent movers in June:

The Phillip HK Newly Listed Index ETF (2835.HK) Monthly performance for June

The Phillip HK Newly Listed Index ETF (2835.HK) recorded a monthly decline of 8.80% in June, underperforming the Hang Seng Index’s (HSI) 2% monthly decline and underperforming the Hang Seng Tech Index’s (HSTI) 3.69% monthly decline. As of June 28th, this ETF had fallen 21.11% since its listing, underperforming the HSI’s fall of 1.52% and the HSTI’s fall of 5.03%.