Daily Brief China: Goodbaby International, Tencent, Tongda Group, Air China, Cafe de Coral, Contemporary Amperex Technology (CATL), Orbbec, Shenzhen ADTEK Technology, Minth Group and more

• Goodbaby International (1086 HK) disclosed a scheme offer from Mr Song Zhenghuan (Chairman and founder) at HK$1.50, a 38.9% premium to the undisturbed price. The offer is final. 
• The offer looks light next to peers, at 0.38x book and 2.0x EV/EBITDA against an 11.4x peer median. However, the offer looks fair compared to historical trading ranges.
• The vote is low risk, as no independent holder holds a blocking stake. The last AGM showed little opposition, and thin trading makes it hard to build an activist stake.

• Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
• On the IPO front, GCash (Mynt) (GCASH PM) launched with a strong cornerstone book, while National Stock Exchange (NSEIN IN) didn’t make much of a splash.
• On the placement front, GIC sold out of Sunway Healthcare Holdings (SUNMED MK), while it was the chairman’s turn to sell some more of Kanzhun (2076 HK) stock.

• The management of Tongda Group (698 HK) has decided to focus on the growth of its subsidiary, Tongda smart tech, thus less dependant on smart phone replacement cycle. 
• The subsidiary generated ~30% of the parent’s revenue but contributed to most of the parent’s operating profit. 
• Although the valuation gap presents a real arbitrage opportunity with the HK listed present a deep discount, the key lies in the not-so-difficult monetization potential to realize the gap. 

• August air activity largely matched July’s improved pace of growth (versus weak Q2)
• The improvement in domestic activity has been more dramatic than in outbound 
• Effectively, high fuel costs appear to be keeping travelers closer to home here in Q3

• Share buyback, dividend increase to 30 cents, yielding around 7.6% with PBR 1x and 0.4x price to sales are good catalysts to own Cafe de Coral (341 HK) .
• Greater Bay connectivity provides an opportunity to expand margin as the cost is lower, as well as to capture customer leakage when HK residents travel to China over the weekend. 
• Cafe de Coral (341 HK) benefits from the economic downturn when customers pull back from premium dining.

• WEEKLY tactical global macro recap/analysis for several markets and stocks we track, grouped by sector.
• We apply our quantitative models to each instrument’s trend, to determine which stocks/markets are just starting a trend, are in the middle of it, or are about to end it.
• Most overbought: KS200, META, Samsung Electronics, Tokyo Electron, SK Hynix, Komatsu, Nikkei 225, Hitachi Most oversold: Contemporary Amperex Technology, S&P/ASX200, Bharti Airtel, ICICI Bank, Zijin Mining Group Company 

• The 3D visual perception market is undergoing a decisive transition toward active stereo vision (e.g., Orbbec’s Gemini series), which is eclipsing older structured light and iToF modalities in robotics because it offers robust outdoor performance, zero motion blur via global shutters, and integrated edge-processing ASICs.
• Cognex’s $500 million cash acquisition of Intel spinoff RealSense on September 22, 2026, marks a massive consolidation wave in the robotic perception market, validating the high growth of Physical AI but presenting Orbbec with a formidable, deeply capitalized competitor in Western industrial markets.
• Orbbec is executing a sharp, dual-track strategic pivot to improve profitability, filing for a Hong Kong Stock Exchange (HKEX) listing in September 2026. This capital-raising effort aims to support their high-margin B2B sensor segment (which grew 52% in 1H 2026 with a 57.6% gross margin) while offsetting declines in their mature finished-device consumer business.

• Shenzhen ADTEK Technology (ADTEK HK) aims to raise at least US$500m in its Hong Kong listing.
• It is a provider of optical connectivity products and solutions.
• In this note, we look at its past performance and other deal dynamics that might impact the listing.

• Along with other Hong Kong stocks, Minth Group (425 HK) share price took a beating this year that is caused by market sentiment rather than fundamentals. 
• They launched a robot-making factory in Serbia, a JV in Indonesia, that in the near term drained FCF but revenues and earnings are still growing. 
• With PER 8x, EV/EBITDA 6x, and PBR<1, Minth has become a value stock that calls for  re-rating. 

• Shenzhen Transsion Holdings Co., Ltd. is a smart device and mobile Internet service provider, specializing in smart devices, focusing on mobile phones.
• Shenzhen Transsion Holdings ranked eighth in the global mobile phone market in 2025 and reported a 21.9% revenue increase for the six months ended June 30, 2026.
• FY2025 revenue was RMB65,591,236 thousand and net profit was RMB2,605,236 thousand, with both decreasing from 2024 figures.

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