In today’s briefing:
- Quiddity Leaderboard STAR 50/100 Sep26: ADDs/DELs Mostly Final; ~US$2bn Combined One-Way Flow
- Innolight H Share Listing: The Investment Case
- HSCI / HK Connect Sep 2026 Rebalance Forecast
- Aequitas: Sinotruk Placement – Third Selldown in Seven Months After Strong Run-Up
- Aequitas: Innolight A/H Listing – Decent Pricing, Strong Cornerstone
- Z.AI/Knowledge Atlas (2513.HK): No Concern – Kimi Targeting Different Customers
- Limited Upside To JBM (2161 HK)’s Spin-Off
- Z Fin (1168 HK): Despite the High Takeover Premium, the Offer Is Well Short of Intrinsic Value
- JBM (Healthcare) (2161 HK): Synthetic Expert Call Transcript (21 Jul 2026)
- Z Fin (1168 HK): Ou’s “Fair” HK$6.60/Share Offer
Quiddity Leaderboard STAR 50/100 Sep26: ADDs/DELs Mostly Final; ~US$2bn Combined One-Way Flow
- STAR 50 and STAR 100 are tech-focused, blue-chip indices in Mainland China which track the top largest and most liquid names in the STAR market of the Shanghai Stock Exchange.
- In this insight, we look at the potential ADDs/DELs for the STAR50/STAR100 indices for the September 2026 index rebal event.
- The STAR 50 and STAR 100 index rebal events could collectively trigger nearly US$2bn in one-way flows.
Innolight H Share Listing: The Investment Case
- Zhongji Innolight (300308 CH) is a leading global provider of optical interconnect solutions. It is seeking to raise US$7 to US$8 billion.
- The principal products, optical transceivers, are compact devices that convert electrical signals into optical signals, and vice versa, to enable high-speed, energy-efficient and low-latency data transmission.
- The investment case is based on strong market position, AI infrastructure-fuelled revenue growth, margin expansion, cash generation and a strong balance sheet.
HSCI / HK Connect Sep 2026 Rebalance Forecast
- We screen HK stocks ahead of the HSCI September 2026 half-yearly review, with 44 ADD candidates and 26 DELETE candidates.
- ADD candidates are mostly new listings and prior constituents, including seven A+H names already in Connect.
- DELETE candidates include 21 MV DELETEs, three retention-line borderline names, and two velocity cases.
Aequitas: Sinotruk Placement – Third Selldown in Seven Months After Strong Run-Up
- German truckmaker, MAN SE (via MAN Finance and Holding) is looking to sell a ~2% stake in Sinotruk Hong Kong (3808 HK) to raise upto US$261m via a secondary selldown.
- Sinotruk (Hong Kong) Ltd is China’s leading heavy-duty truck manufacturer, focused on commercial vehicles with strong domestic market share, growing exports, and consistent cash generation.
- In this note we talk about the deal dynamics and run the deal through our ECM framework.
Aequitas: Innolight A/H Listing – Decent Pricing, Strong Cornerstone
- Zhongji Innolight (300308 CH) (ZI), one of the world’s largest optical transceiver manufacturers, aims to raise around US$7bn in its H-share listing.
- Innolight was the global leader in 2025 in optical modules, with its products being in high demand for data centers.
- We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the IPO pricing.
Z.AI/Knowledge Atlas (2513.HK): No Concern – Kimi Targeting Different Customers
- Moonshot’s Kimi K3 model outperformed Z.AI’s GLM-5.2 in intelligence on Artificial Analysis.
- However Moonshot’s B2C and B2B customers are very different from Z.AI’s.
- Furthermore, Z.AI’s GLM-5.2 operates at four times the speed of Kimi K3.
Limited Upside To JBM (2161 HK)’s Spin-Off
- On the 17th July 2026 , JBM (Healthcare) (2161 HK), a consumer healthcare company, announced the spin-off of 100%-held JPJ, the group’s branded PCM products and Chinese medicine clinic services.
- Listing is slated for the HKEx, market conditions permitting. An application proof has been lodged. JBM intends to hold at least 50% of JPJ post listing.
- My calcs suggest JBM is fairly valued here – before assigning any holdco discount post spin-off. FWIW, JBM was itself spun-off from Jacobson Pharma (2633 HK) in February 2021.
Z Fin (1168 HK): Despite the High Takeover Premium, the Offer Is Well Short of Intrinsic Value
- Z Fin (1168 HK) announced a scheme privatisation offer from Mr Yaping Ou at HK$6.60 per share, a 61.4% premium to the last close. The offer is final.
- The offer is light and well below intrinsic value. Based on the August 2025 funding round, the implied value of Z Fin’s stake in ZA Global materially exceeds the offer.
- While no disinterested shareholder holds a blocking stake, the vote is not a foregone conclusion, particularly given the noticeable dissent at the recent AGM.
JBM (Healthcare) (2161 HK): Synthetic Expert Call Transcript (21 Jul 2026)
- The Proposed Spin-Off of JPJ (TCM) Limited Lacks Commercial Substance: Creating a three-tier listed structure (Jacobson Pharma to JBM Healthcare to JPJ) serves as financial engineering rather than operating synergy. It will exacerbate holding company discounts across the group and severely restrict JBM’s post-transaction equity liquidity, leaving JBM as an hollowed-out holding company.
- Clinic Acquisitions Dilute JPJ’s High-Margin Heritage Profile: JPJ’s historical strength lies in its dominant 9.2% market share in the Hong Kong Proprietary Chinese Medicine (PCM) space, backed by high-margin legacy brands like Po Chai Pills. However, its recent downstream expansion into lower-margin, labor-and-rent-intensive clinic chains (Kenford and King Pui) compresses consolidated margins and threatens the return-on-capital profile.
- Severe Corporate Governance and Transfer Pricing Risks Exist: High ownership concentration under Derek Sum, combined with rapid connected transactions—such as selling a stake in Li Chung Shing Tong in November 2024 at HK$460 per share and buying it back in June 2026 at HK$600 per share—indicates value leakage from minority shareholders of JBM to the parent. JPJ’s massive HK$506.8 million net current liabilities as of March 31, 2026, highlights major intercompany restructuring risks.
Disclaimer: The following transcripts are synthetic, AI-generated on demand, and compiled exclusively from public data sources; no real-word experts were actually interviewed. This content is designed to highlight potential market mispricings, explore compelling lines of inquiry, and suggest strategic questions rather than present verified facts. All specific financial metrics and data points, including market shares, TAM, margins, and growth rates, are AI-estimated approximations. They may be inaccurate and must be independently verified.
Z Fin (1168 HK): Ou’s “Fair” HK$6.60/Share Offer
- As discussed in Z Fin (1168 HK)’s Suspension: Expect Ou To Make An Offer, following Z Fin (1168 HK)‘s suspension, an Offer from Ou Yaping, Z Fin’s founder, was expected.
- And that is what unfolded late last night (21st July). Ou is Offering HK$6.60/share, by way of a Scheme. Terms are final.
- Terms are a 61.37% premium to undisturbed. Yet a 72.13% discount to NAV. Minorities are somewhat active looking at recent AGM voting. Yet terms are fair to listed peers.
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