Thanks to the short-term and fast-track inclusion mechanism of the Southbound Stock Connect, over ten companies from various sectors have rushed to list in Hong Kong since late June this year, aiming to seize the golden window for "Connect" inclusion. MICOT PHARMA-B (02335) is one of them. On June 24th, MICOT PHARMA made its debut, with its opening price surging to HK$34.02, a significant 86.92% premium over its IPO price of HK$8.20. Although the stock price dipped below the daily average line twice within the first half-hour of trading, it subsequently trended upward amidst volatility, closing the morning session at HK$34.50. In the afternoon, the stock continued its volatile ascent, ultimately closing up 102.75% at HK$36.90, just slightly below the day's peak. It is evident that MICOT PHARMA's core strategy revolves around "immediate inclusion upon listing."

According to the official review rules of the Hang Seng Index, the September quarterly review for small and mid-cap companies only counts trading data from their first trading day of the year up to June 30th, with no retrospective adjustments after the window closes. For MICOT PHARMA, which listed on June 24th, its review period consisted of merely five trading days. This exceptionally short assessment window naturally mitigates the typical disadvantages of high volatility and unstable trading volume often seen in newly listed stocks. During these five trading days from listing, MICOT PHARMA's stock closed higher on three days and lower on two. Final data shows that as of June 30th this year, the company's average market capitalization during the review period was HK$10.251 billion, exceeding the current inclusion threshold of HK$9.395 billion. Assuming liquidity requirements were met, this indicates MICOT PHARMA has secured eligibility for the Southbound Stock Connect in this review cycle.

Pushing for Inclusion Against Market Trends

Since June this year, the Hang Seng Index has experienced a sustained downtrend. From June 3rd to June 11th, the index continued to decline, technically falling from the middle Bollinger Band to the lower band. Although a brief rebound occurred on June 12th and 15th, the upward momentum was insufficient to reach the middle band, followed by a "nine consecutive down days" pattern. Two 18A companies, Huajian Future and MICOT PHARMA, listed on June 23rd and 24th respectively, amidst this pessimistic market sentiment. However, their first-day performances diverged sharply: Huajian Future closed at its daily low of HK$35.26, plummeting 56.89%, while MICOT PHARMA soared over 100%. As both companies aimed for "immediate Connect inclusion," this vast difference in performance meant MICOT PHARMA likely qualified while Huajian Future missed out.

Examining MICOT PHARMA's issuance strategy, the global offering comprised 58.0544 million H shares, representing 17.50% of the post-issuance share capital. The offering was split 90% for international placement and 10% for public offering, with a 15% over-allotment option. The final offer price was set at the lower end of the range at HK$18.20, raising approximately HK$1.057 billion in gross proceeds and HK$959 million in net proceeds. The public offering portion consisted of 29,028 board lots with an application fee of HK$4,242.36. Final data showed the Hong Kong public offering was approximately 1,181.46 times oversubscribed.

From an issuance strategy perspective, similar to Huajian Future, MICOT PHARMA also utilized a "Mechanism B" offering, establishing a shareholder base dominated by institutional, cornerstone, and anchor investors. Both companies had cornerstone investors subscribing to over 40% of the offering, and both had international placement subscription multiples below 10 times, indicating a relatively higher proportion of short-term "trading-type anchor" investors. However, the outcome reveals that in the overall volatile market environment, these short-term "trading-type" funds adopted markedly different strategies for the two stocks, choosing to sell Huajian Future at higher levels while supporting MICOT PHARMA's entry into the Stock Connect. This divergence is likely attributable to differences in their fundamental performance.

Variations Within the 18A Category

MICOT PHARMA is a biotechnology company focused on the discovery, development, and commercialization of bi-/multi-specific peptide-based therapeutics, primarily targeting metabolic and cardio-cerebrovascular diseases. Its pipeline structure features "one core product + multiple significant products," centered around advancing the industrialization of its bi-/multi-functional peptides and innovative drug candidates. The prospectus indicates its core product is MT1013, a dual-target receptor agonist peptide targeting both CaSR and OGP receptors. It is being developed primarily for treating secondary hyperparathyroidism in chronic kidney disease (CKD-SHPT) and has potential for expansion into additional indications like CKD-MBD with osteoporosis and non-dialysis CKD-SHPT.

Notably, MT1013's clinical data demonstrates clear differentiated advantages. In a head-to-head Phase II evaluation, its composite达标 rate for iPTH, serum calcium, and serum phosphorus was approximately 2.5 times that of the active comparator, Etelcalcetide. Phase II trial observations showed it took effect within three weeks and sustained iPTH level control through the ninth week, alongside a more significant reduction in FGF23, suggesting potential cardiovascular benefits.

Currently, MICOT PHARMA and Huajian Future appear similar in terms of innovative R&D, with both core valuations anchored to a single product. However, they differ in the commercialization prospects of their core assets. Huajian Future's core product, HJ787, is still in the R&D stage. Its Phase II trial for topical atopic dermatitis is expected to complete in September 2026, with Phase III initiation in 2027, and the earliest potential market approval is 2029. In contrast, MICOT PHARMA initiated a Phase III trial for MT1013 in treating CKD-SHPT in July 2025. Furthermore, in February this year, the company entered into an agreement with one of its cornerstone investors for the commercialization of MT1013 in the Asia-Pacific region (excluding Japan) for CKD-SHPT. This move completes a deep "R&D + commercialization + investment" binding with the cornerstone investor, demonstrating clear commercialization potential.

Additionally, the disparity in secondary market performance is also related to their respective valuation growth potential. Taking Huajian Future as an example, its post-money valuation after a Series C2 financing round in July 2025 was approximately RMB 2.7 billion. Its Hong Kong IPO, priced at HK$81.8 per share, implied a post-issuance market cap of about HK$6.02 billion (approximately RMB 5.39 billion), representing a near 100% increase in valuation within roughly a year. Conversely, MICOT PHARMA experienced a typical "valuation inversion" before listing—its post-money valuation after a Series C round in early 2023 was about RMB 2.745 billion, which slightly decreased to RMB 2.636 billion by the Series D financing in the second half of 2025. Its Hong Kong IPO, priced at the lower end of HK$18.2 per share, implied a post-issuance market cap of about HK$5.1 billion (approximately RMB 4.417 billion), a roughly 67.6% increase from the Series D valuation. In essence, MICOT PHARMA's pricing at the lower end of the range left ample room for upside in the secondary market, which may be a key reason short-term market funds chose to bet on its Stock Connect inclusion.