Review of Wolong Electric and Haizhi Technology, with analysis of AH margin positions!
The performance of the two new stocks is as follows:
The strategy is as follows:
【Wolong Electric】$WOER(09981.HK)
A-shares performed averagely today, with a slight decline followed by a continuous pullback, ultimately falling nearly 3%. Hong Kong shares surged past the grey market high of 6~7% during the session but failed to hold, with a sharp skid in the final minutes.
International placement subscription was only 8.2 times, not as hot as imagined!
The past relationship between A-H share price movements and their international placement margin data is as follows:
Wolong Electric's margin of 8.2 can only be considered a regular tier (8~10). There are many companies in this tier, but they can only be considered mainstream level.
The medium tier (10~20) consists of companies with good prospects or strong market positions. Those with good prospects include Cambridge Technology, GigaDevice Innovation, while those with strong positions include Sany Heavy Industry, Dongpeng Beverage!
The first two are second-tier manufacturers, but the latter's storage narrative is still too strong. Cambridge had a 25% discount at IPO, now down to 40%, while GigaDevice has narrowed to 4%! The latter two have strong overseas positions and solid fundamentals!
Frankly, woer originally hoped to reach Cambridge's (x16.5) tier, as it's a core business with many other ventures. Perhaps it was because Jensen Huang's procurement hype was too strong during Cambridge's time, while woer's previous profit forecast in the earnings report was relatively average, dampening sentiment!
The high tier (20+) only includes Han's CNC, Montage Technology. Those who have seen the analysis know these two are players strong in both narrative and position, truly deserving of their reputation!
Currently, a high multiple in international placement does not necessarily mean high profit potential. Factors related to profit potential are still tied to pricing space/valuation. It can only be said that pricing affects some subscription sentiment, but subscription sentiment is still dominated by two major factors: industry narrative and industry position. The former is speculation, the latter is investment!
【Haizhi Technology】$HAIZHI TECH GP(02706.HK)
Haizhi is truly amazing! Grey market up 210%, first day up 240%!
The reasons for participation are as follows: theme imagination + cornerstone quality + controllable risk!
If you bottom-fished Haizhi in the grey market, you could still capture profits between 210~240%! However, Haizhi's resilience on the first day was also due to strong performance in external markets. AI application stocks rose significantly, and a bunch of Korean investors came down to buy. Look at the recent performance of MINMAX$MINIMAX-WP(00100.HK) and ZhiPu Technology$KNOWLEDGE ATLAS(02513.HK) . Many stocks that had fallen quite badly also followed with a wave of gains!
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