Daily Brief China: Hua Hong Semiconductor, Xiamen Tungsten Co Ltd A, CXMT Corporation, Hangzhou BOCO Electronics, Alibaba, Genfleet Therapeutics, New Hope Dairy Co Ltd, Eastern Communications , Verisilicon Microelectronics S and more

• CSI added four stocks and deleted four in the Jun 2026 STAR50 rebalance. The first implementation week and weeks 2 to 4 are complete.
• Every ADD rose through the first implementation week, vs the historical fade, and most of the cohort kept the gain through weeks 2 to 4.
• Most DELETEs fell in the first week, in line with history. SICC rallied vs its negative-bridge base rate before a reversal in weeks 2 to 4.

• CSI 300 June 2026 added 19 stocks and deleted 19. With all post-implementation windows complete, we review current-cycle performance vs history.
• ADDs rose broadly in the first implementation week. The historical fade read was offset by a stronger CSI 300 tape and tungsten-specific newsflow. Weeks 2 to 4 reversed the gains.
• DELETEs fell in the first week and drifted lower in weeks 2 to 4. The direction matched history, and the losses were milder than in prior cycles.

• CXMT Corporation (688825 CH) concluded its IPO price at Rmb8.66, and we estimate this equals 5x PER for FY26 and 3.4x for FY27.
• It is inexpensive relative to global peers, as they are trading at an average of 8.1x and 6.1x, respectively. Normally, A-shares trade at a higher multiple than global peers. 
• Applying the Hang Seng AH premium on the IPO, there is a 74.5% upside. Aggressively, if GPU companies are used as references, it may even provide a 3x upside.

• Hangzhou BOCO Electronics is the second largest provider of high-performance computing server power supply in Chinese mainland by 2025 revenue, also expanding into ESS Power Conversion.
• BOCO is the second largest Chinese mainland high-performance computing server power supply provider with 15.8% market share in 2025, seeing revenue and profit growth.
• Revenue reached RMB1,044,596 and profit RMB97,131 in 2025, but Q1 2026 saw a RMB(5,324) loss and (2.5)% net profit margin.

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• Cloud Intelligence AI revenue has posted 11 straight quarters of triple-digit growth; four banks cut targets in July but kept Buy-equivalent ratings.
• DOJ settlement resolved, Qwen approved for Apple Intelligence in China — geopolitical overhangs are clearing faster than consensus assumes.
• SOTP-Derived TP of US$170/ADS (44% upside) & CNY151.9 (65% upside) applies an explicit 10% discount for unresolved geopolitical risk that most sell-side models don’t itemise.

• Genfleet Therapeutics (2595 HK) announced the placement of 13.6M shares for subscription at HK$ 34.69 per share. The placing price represents a discount of 9.7% to the undisturbed price.
• Genfleet Therapeutics intends to use the proceeds majorly to advance core products of RAS inhibitors and other innovative treatments, enhance company’s research and development platforms and for working capital.
• Genfleet is rightly placed at this point to accelerate the clinical development of core products, rapidly advance their innovative product pipeline to later stages of development and expand the portfolio.

• New Hope Dairy Co Ltd (002946 CH), a nutritional food company specializing in dairy products, aims to raise around US$100m in its H-share listing.
• New Hope Dairy (NHD) is a technology-driven nutritional food company dedicated to the R&D and production of dairy products and other nutritional foods.
• In this note, we talk about the company’s past performances.

• Eastern Communications is a diversified technology company with a significant presence in China’s telecommunications and financial technology sectors. The company is well-positioned to benefit from the country’s ongoing 5G network expansion and digital transformation initiatives.
• Despite a recent history of declining revenues, the company has demonstrated impressive growth in net income and earnings per share, suggesting successful cost management and a shift towards higher-margin businesses.
• The stock’s valuation appears attractive on a price-to-book basis compared to peers, but its high price-to-earnings ratio and the competitive nature of the Chinese telecom market present notable risks for investors.

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• VeriSilicon is a rare company in the world that can provide a complete IP portfolio and one-stop services from design to production, and has a faster response to regional services.
• The challenge is the ecological barriers of ARM and Synopsys is extremely deep, making it difficult to form substantive competition in the field of general-purpose processor IP in short term
• Considering the differences in liquidity between SSE Star Market and HK stock market, a discount of approximately 30%-40% is more comfortable, which may leave enough “margin of safety” for investors.