Daily Brief China: Victory Giant Technology (HuiZhou), Luxshare Precision Industry, Peric Special Gases, Momenta Global, Sichuan Kelun-Biotech Biopharmaceutical, GigaDevice Semiconductor, EACON Group Co., Ltd, SmartMore Inc, Sunwoda Electronic Co Ltd A, Shanjin International Gold-A and more

• There could be 55 potential inclusions and 14 potential deletions for the Hang Seng Composite Index in September. There are more stocks that are close on market cap/liquidity.
• A lot of the potential adds are very recently listed stocks that have a limited trading history. The low free float could lead to price spikes in the stocks.
• There are stocks that have a very high percentage of holdings via Stock Connect and there could be some unwinding prior to the stocks becoming Sell-only.

• Luxshare Precision Industry (2475 HK) is a leading manufacturer of electronic components. It is seeking to raise US$3.1 billion.
• Luxshare is a global leader in the PIMS industry, holding top positions in the PIMS markets of consumer electronics, automotive electronics, and data centres by revenue in 2025.
• The investment case is based on a strong market position, acquisition-driven growth, a relatively stable margin profile, an expected return to cash generation, and a strong balance sheet.  

• Peric Special Gases is a leading domestic supplier of electronic special gases in China, with a dominant market position in key products like tungsten hexafluoride (WF6).
• The company is strategically positioned to benefit from the rapid growth of China’s semiconductor industry, which is driven by government support and increasing domestic demand for advanced electronics.
• Financial performance shows strong revenue growth, although margins have experienced some volatility. Future growth is supported by capacity expansions for core products, but the company faces risks from geopolitical tensions and reliance on the cyclical semiconductor market.

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• Momenta Global (6880 HK) raised ~US$750m in its upcoming Hong Kong IPO.
• It is a leading autonomous driving company, focused on developing and commercializing driving automation technologies to improve safety and efficiency in mobility and logistics.
• In this note, we will talk about the demand and trading dynamics.

• Sichuan Kelun-Biotech Biopharmaceutical (6990 HK) is looking to raise up to US$350m from a primary placement.
• Kelun is a China-based biopharmaceutical company focused on developing and commercializing innovative oncology therapies, with a particular emphasis on antibody-drug conjugates (ADCs), bispecific antibodies, and other biologics.
• In this note, we will talk about the placement and run the deal through our ECM framework.

• GigaDevice Semiconductor (3986 HK) (GD), an IC design house, raised around US$690m in its H-share listing. Its cornerstone investors will soon be released from their lockup.
• GD is a leading specialty memory chip and MCU company in mainland China.
• In this note, we will talk about the lockup dynamics and possible placement.

• EACON Group Co., Ltd (1868613D CH) raised around US$293m in its Hong Kong IPO.
• EACON designs, develops, and integrates the core intelligent components, such as autonomous driving software, domain controllers, and drive-by-wire platforms.
• We have looked at the company’s background and pricing in our earlier note, in this note we talk about the trading dynamics.

• SmartMore Inc (1811514D CH) plans to raise around US$300m in its upcoming Hong Kong IPO.
• SmartMore Inc. (SMI) offers solutions built on its proprietary industrial multi-modal large model family, IndustryGPT, and seeks to redefine how industrial automation operates in the artificial intelligence era.
• In this note, we look at the company’s past performance.

• Sunwoda, a lithium-ion battery manufacturer, is seeking an A+H listing. Goldman Sachs and CITIC are the sponsors.
• We look at the company’s core segments: consumer battery, EV battery and ESS.
• We discussed our preliminary thoughts on the company’s valuation based on A-H premium.

• Shanjin International Gold is seeking an A+H listing. CITIC, CICC, and UBS are the sponsors.
• We look at the company’s core segments: gold and non-ferrous metals mining and metal trading.
• We discuss our preliminary thoughts on the company’s valuation based on A-H premium.