Daily Brief China: MiniMax, Hua Hong Semiconductor, Sigenergy Technology, Maxnerva Technology Services, Unitree Robotics, Hangzhou Yodosmart Automotive Technology, Big Catering International Holding and more

• The Hang Seng Internet & IT (HSIII) index represents the top 30 stocks related to internet and information technology businesses listed in Hong Kong (HKEX).
• We continue to expect five index changes for September 2026 and we currently estimate one-way flows ~US$153mn.
• The index changes will be announced after the close on Friday 21st August 2026.

• The HSCEI serves as a benchmark to reflect the overall performance of the top 50 “Mainland China” securities listed in Hong Kong.
• We expect one index change and we expect this to trigger total one-way flows of US$87mn including the effects of capping.
• The index review results will be announced on 21 August.

• We screen our HSCI September 2026 review candidates for southbound Connect action, with 36 Connect ADDs and 25 DELETEs.
• ADD candidates split into 31 ADD-NEW and 5 ADD-REJOIN, with one WVR name deferred and seven A+H names already in Connect.
• DELETE candidates are 23 MV cases and 2 velocity cases, after one A+H name is exempt from Connect deletion.

• On the 27th July 2026, IT integrator Maxnerva Technology Services (1037 HK) announced its two top shareholders – FSK and FDG – had entered into SPA’s with Foxconn at HK$0.6374/share.
• Assuming the SPAs complete (primarily requiring Vietnam Competition Commission approval), Foxconn’s stake increases from 6.61% (indirect) to 40.46%, triggering a conditional mandatory general offer (50% tendering condition) also at HK$0.6374/share. 
• Arguably this is a Hon Hai/Foxconn internal restructuring exercise. It’s a decent premium though; enough to (likely) clear the 50% tendering condition. Listing status maintained, hence a decent back-end proposition. 

• Southbound Stock Connect buying begins this morning; the Zhipu precedent saw US$4.9bn of inflow in eight weeks — yet a 57m-share unlock lands just four weeks later, in early Sept.
• Vendor screens still show negative equity and 343% gearing from preferred shares that converted on listing day; MiniMax actually holds US$3.45bn of cash, ~25% of its market capitalisation.
• We initiate BULLISH with a HK$340 fair value — 18x our FY2028E sales of US$700m plus HK$20.4bn net cash — sitting 1.5% above July’s institutional convertible strike.

• Unitree Robotics (688836 CH) concluded its IPO price at Rmb150.8, and we estimate this equals 78.5x PER for FY26 and 55.3x for FY27.
• The IPO valuation is cheap when compared with the peer median of 86.7x and 119.7x, respectively. Its higher P/S of 21.2x and 15.2x is due to its better profitability.
• We calculate that it can reach 146.5x PER, or a price of Rmb399.5, 164.9% upside if we apply the current AH premium to the peers’ median FY27 PER. 

• Hangzhou Yodosmart Automotive Technology Co., Ltd. is a leading domestic provider of in-vehicle intelligent connectivity solutions in China, offering customized solutions to OEM customers.
• Hangzhou Yodosmart is the fourth largest domestic provider of in-vehicle communication solutions in China with 4.9% market share in 2025.
• For the five months ended May 31, 2026, gross profit was 42,237 RMB’000 and adjusted net profit was 13,141 RMB’000.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• My base case valuation of Unitree Robotics IPO is implied market cap of 106.9 billion RMB, which is 155% higher than the company’s target valuation of 42 billion RMB. 
• My base case valuation is based on P/E of 81.9x (30% premium to the comps) using my estimated net profit of 1.3 billion RMB for the company in 2028.
• Unitree Robotics is one of the major leaders in the humanoid and quadruped robotics industry in China. 

• The advantage of Big Catering lies in its differentiated Buffet model, but its disadvantage is “heavy asset” model, which results in significant lagging behind in cost control and expansion speed.
• The core of low net profit margin stems from the rigid pressure of cost structure.If Big Catering wants to expand southward, it will face intense competition and high education costs.
• Big Catering has very limited room for downward adjustment in its pricing strategy. Valuation would be lower than Domino’s Pizza, but higher than that of traditional restaurants with slow growth.

• Maxnerva Technology Services is strategically positioned in high-growth technology sectors, including smart manufacturing (Industry 4.0), smart office, and new retail solutions. However, the company faces significant profitability challenges, having reported consistent net losses over the past three fiscal years.
• The company’s financial performance has been weak, characterized by negative net margins and volatile operating cash flows. Despite a significant increase in revenue in the most recent fiscal year, net losses widened, highlighting persistent margin pressures and operational inefficiencies.
• An affiliate of Foxconn Technology Group, Maxnerva leverages deep manufacturing IT expertise. This relationship could provide a competitive advantage in its Industrial Solution segment, but the company’s ability to translate this into sustainable profitability remains a key uncertainty for investors.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.