Hong Kong Hot Stock Analysis: Dazhong Public Utilities (01635.HK) Driven by Shenzhen Venture Capital IPO Expectations and Explosive Growth in Venture Capital Business

Shanghai Dazhong Public Utilities (Group) Co., Ltd. (01635.HK) is a comprehensive public utilities enterprise, with its core business being gas sales (accounting for 89.67%), and also involved in environmental protection and financial venture capital [0]. As a Hong Kong Stock Connect target, the southbound capital shareholding ratio is 68.60%, ranking third in Hong Kong Stock Connect holdings [1].

The stock’s popularity comes from multiple driving factors:

1. Shenzhen Venture Capital IPO Expectations
   : As the second largest shareholder of Shenzhen Venture Capital (holding 10.8% of shares), the market expects Shenzhen Venture Capital to list on Hong Kong Stock Exchange in Q2 2026 with a valuation of 1.02-1.53 trillion yuan [4]. If realized, the value of the shares held may reach 8 billion yuan.
2. Explosive Growth in Venture Capital Business
   : In the first three quarters of 2025, net profit increased by 205.14%, with venture capital contributing 437 million yuan in revenue (+1379.49%) [0]. Shenzhen Venture Capital completed IPO exits for 27 enterprises in 2025 (including Moore Threads) [4].
3. Nuclear Power Concept Catalyst
   : In October, nuclear power stocks strengthened against the market, and the company’s stock price once rose by more than 30% to a new high [5].
4. Driven by Moore Threads
   : Its listing on the Sci-Tech Innovation Board (STAR Market) pushed the company’s stock price up [7].

• Business Transformation
  : Traditional public utilities have achieved a second growth curve through venture capital, and stable cash flow supports venture capital layout.
• Southbound Preference
  : The high 68.6% shareholding reflects southbound capital’s favor for the “stable + growth” hybrid model [1].
• Valuation Reconstruction
  : Venture capital business breaks through the valuation ceiling of traditional public utilities, bringing long-term valuation improvement space.

• Overheating Sentiment
  : The company warns of irrational speculation, with a cumulative increase of 33.74% [0].
• IPO Uncertainty
  : Shenzhen Venture Capital’s listing process may be delayed due to market influences [4].
• Valuation Pressure
  : The current valuation has partially reflected IPO expectations, so we need to be alert to corrections.

• IPO Implementation Benefits
  : Shenzhen Venture Capital’s listing will directly enhance the company’s revenue and valuation [4].
• Accelerated Exits
  : Subsequent venture capital exit projects will continue to contribute revenue [0].
• Cash Flow Guarantee
  : Stable cash flow from the gas business supports venture capital layout.

The popularity of Dazhong Public Utilities (01635.HK) stems from its unique business structure and multiple catalysts. We need to pay attention to Shenzhen Venture Capital’s IPO progress, venture capital exit rhythm, and market sentiment. The hybrid model brings differentiated advantages, but short-term fluctuations need to be alerted to.