Rate Of Return[HK IPO Analysis] Haizhi Technology, Wolong Nuclear Material, no need to overthink it.
In our previous sharing, the two stocks we were particularly bullish on, Montage Technology and Han's CNC, were successfully allocated and made money, although we sold a bit too early in both cases.
Additionally, we avoided the pitfall of Aixin Yuanzhi, which broke its issue price. I mentioned in my article at the time that its offering was too expensive, and now it seems the market agrees.
This article discusses the two latest Hong Kong IPO stocks: Haizhi Technology and Wuer Nuclear Materials.
No.1
Haizhi Technology
A first-time IPO stock, a company working on AI hallucination removal. The concept is excellent, and the company is still in a loss-making state. However, looking at revenue, growth is very rapid, increasing from RMB 313 million in 2022 to RMB 503 million in 2024, representing a compound annual growth rate of 26.8%. Revenue from the Atlas agent increased from RMB 8.9 million in 2023 to RMB 86.6 million in 2024, a surge of 872.2%. Gross profit margin increased from 28.4% in Q3 2024 to 39.7% in the same period of 2025. The company currently has 101 customers. The company's annual loss narrowed from RMB 176 million in 2022 to RMB 93 million. Furthermore, the public offering only has 14,000 lots, and it's currently very hot. Personally, I think it's highly likely to be a decent gain.
Its lot size is the same as Ming Ming Hen Mang at 14,000 lots, and it's also very hot. Referring to Ming Ming, the tail-end of Group A had only a 4% allocation rate, and only about 25% of Group B heads got allocated. The allocation rate is relatively low, it's too competitive, and Haizhi can't get shares from the international placement either.
No.2
Wuer Nuclear Materials
An A-to-H secondary listing stock, engaged in businesses like communication cables and electronic materials. It has concepts like AI and new energy. Its performance is good. Based on its A-share valuation not being expensive relative to its performance, the H-share is discounted by 35%. Although this isn't a very high discount rate, this pricing shows the company has some sincerity. Moreover, like previous stocks Jihong and Guo'en, it hasn't set up a greenshoe, allowing entry into Stock Connect on the first day of listing. This is also an important positive factor. This stock's public offering has about 70,000 lots, a moderate amount. Tail-end Group A and Group B heads should mostly be able to get a small piece of the pie.
No.3
Summary
The conclusion is clear: Personally, I believe that if you get allocated Haizhi Technology, it's a pretty good gain, but it's hard to get. Wuer Nuclear Materials has the expectation of first-day Stock Connect entry and a decent discount rate as a floor. Even if it's hard to surge significantly, it wins in terms of controllable risk and larger lot size. Personally, I think large investors seeking stability (at least able to go for Group B3 or above) can prioritize Haizhi Technology. For small and medium investors, I think prioritize Wuer. Of course, if you're very confident in your luck, ignore what I said.
Wishing everyone successful allocation and gains!
$HAIZHI TECH GP(02706.HK) $WOER(09981.HK)
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