China

• 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.

• The stock plunged further after the company unlocked 48.9% of its total equity.
• However, the company still has tech advantages globally and domestically, especially in voice.
• Given sales based multiples, we believe there is limited downside risk remaining for the stock.

• A-Share Shenzhen Transsion Holdings (688036 CH) is seeking a H-share IPO in HK. Its 1Q26 net profit has surged by 42.9%, thanks to revenue growth and margin expansion.
• Key positives are its dominant market position in the emerging markets, established ecosystem beyond handsets, and strategic AI investment to drive premiumisation.
• Key negatives are cost inflation which poses pressure margin, increasingly fierce market competition, and its exposure to political and currency risks.

• The “service + technology” dual-engine structure constitutes the most valuable strategic depth for Easy Click in the current situation where the overseas marketing service providers are all experiencing intense competition.
• The fluctuations in performance do not indicate a deterioration in Easy Click’s operations. Instead, it is the result of the Company using short-term profits to secure long-term strategic depth.
• Considering the valuation in Hong Kong stock market is usually 20% to 40% lower than in A-share market, a comfortable P/E range could be 35x-45x (based on forecast in 2026).

• Ming Yu Pharmaceutical, a China-based clinical-stage biotech company, is seeking a Hong Kong Chapter 18A listing. MS, BOA, and CITIC are the joint sponsors.
• In our previous note, we looked at the company’s core products MHB018A and MHB036C, as well as its management and investor backings.
• In this note, we look at the developments in the company’s assets and the competitive landscape.

• HK$35.0bn net cash funds Phase 4 — Macau’s largest expansion — without a single dollar of new debt or dilution, while peers carry leverage at 2–8x EBITDA.
• FY2025 EBITDA grew 19% and NPAS rose 22%, yet shares fell. A 50-percentage-point divergence between fundamentals and price is not noise — it is the trade.
• We are BULLISH with a derived FV of HK$37.0 – 6.1x FY2027E EV/EBITDA — near the bottom of Galaxy’s historical range — we apply 8.0x for Fair Value.

• On the 30th October 2025, China Modern Dairy (1117 HK) (CMD) entered into a SPA to acquire 1.28% in China Shengmu (1432 HK), the completion of which triggered a MGO.  
• The Composite Doc was dispatched on the 30th June 2026, with a First Close on the 21st July. 31st August is the final close – unless unconditional 14 days beforehand. 
• CMD intends to Shengmu’s maintain listing. The Offer is conditional on CMD holding 50%. By my estimate, ~14.4% of shares out have now tendered, lifting CMD’s stake to ~45.66%. 

• NetEase (9999 HK) converted from a Secondary Listing to a Dual Primary Listing on the HKEX (388 HK) on 30 June as added to Southbound Stock Connect the same day.
• There has been steady buying in NetEase (9999 HK) via the link in the past 2 weeks and the inclusion in the HKC Internet index should double those holdings.
• Marketingforce (2556 HK) will be deleted from the index, and the stock could break to new lows as passives sell.

• ~26% GGR share, five resorts, 12,000+ rooms — the largest integrated gaming and hospitality footprint in Macau, and the sector’s leading non-gaming and MICE business.
• The LVS-consolidated leverage figure is misleading. SCL-specific net debt (~US$5.75bn) is materially lower than the parent figure, which includes Marina Bay Sands Singapore — a distinction consistently missed.
• Bullish, Fair Value HK$16.40. At 7.5x FY2027E EV/EBITDA — a 14% discount to our 8.75x warranted — the GGR franchise leader is priced as though the margin compression never stabilises.

• Supply side support lifted iron ore prices, yet deteriorating steel mill profitability keeps the underlying demand picture under pressure.
• Managed money participants maintained a firm bearish stance, suggesting downside risks continue to outweigh expectations of a sustained recovery.
• CMRG’s broader restrictions on Fortescue’s Super Special Fines could gradually pressure shipments, clouding the miner’s near-term sales outlook.

• Dekon is a major, vertically integrated producer of pork and poultry in China, the world’s largest pork market. Its performance is intrinsically linked to the highly cyclical nature of hog prices, which drives significant volatility in profitability.
• The company is focused on a ‘Company + Family Farm’ model, which aims to leverage the efficiency of local farmers while providing them with technology, breeding stock, and feed. This strategy, combined with investments in genetics and digital farming, is designed to create a cost-competitive advantage.
• While the industry is undergoing consolidation, providing opportunities for large players like Dekon, it faces persistent risks from animal diseases (such as African Swine Fever), volatile feed costs, and ongoing oversupply issues in the Chinese pork market which pressure prices and profitability.

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• Strong Financial Performance and Shareholder Returns: The company exhibits a robust growth profile, with a 3-year net income CAGR of 33.18% and an impressive 3-year free cash flow CAGR of 88.11%. This financial strength supports a very attractive dividend yield of 11.39%, underpinned by a 3-year dividend CAGR of nearly 26%.
• Attractive Valuation Relative to Peers: Prosperous Industrial trades at a significant discount to its peers across key valuation metrics, including a P/E ratio of 4.4x and a P/B ratio of 0.6x. This suggests a potentially undervalued opportunity for investors, especially given its strong growth and dividend profile.
• Established OEM/ODM with Diversified Production Base: With over 50 years of experience, the company has established itself as a key manufacturing partner for renowned global brands. Its production facilities are strategically located in China, Vietnam, and Cambodia, mitigating concentration risk and enhancing supply chain flexibility.

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• Robotechnik Intelligent Te-A (300757 CH), aims to raise up to US$1bn in its H-share listing.
• It is a leading global provider of high-precision intelligent manufacturing equipment and systems specializing in photovoltaic (PV) manufacturing solutions and silicon photonics (SiPh) assembly and testing equipment.
• In this note, we look at its past performance and other deal dynamics that might impact the listing.

• Megmeet, a power supply manufacturer, is seeking an A+H listing. Huatai and Citi are the sponsors.
• We look at the company’s core segments: smart home appliances and power supplies.
• We discuss preliminary thoughts on the company’s valuation based on A-H premiums.

• Dream International is a well-established contract toy manufacturer with a strong dividend track record and a diversified manufacturing base across China and Vietnam, positioning it to navigate supply chain shifts.
• The company faces headwinds from declining gross margins, as seen in its recent financial performance, and high dependency on a concentrated base of major toy brands and retailers in North America and Japan.
• Future growth hinges on management’s ability to secure new programs from key clients, expand its manufacturing capacity efficiently in regions like Vietnam and Indonesia, and adapt to the growing demand for licensed and smart toys.

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• China Shengmu Organic Milk (1432 HK)’s mandatory offer from China Modern Dairy (1117 HK) is HK$0.35, subject to a 50% minimum acceptance condition. The first closing date is 21 July.
• I previously opined that meeting the minimum would be challenging. However, based on CCASS data, including acceptances, CMD’s shareholding was 45.69% of outstanding shares as of 10 July.
• The offer is on track to be declared unconditional by the first closing date. At the last close and the 30 July payment, the gross/annualised spread is 7.7%/294%.

• Ministry of Industry and Information Technology (MIIT) issued a high-risk warning targeting Claude Code.
• Knowledge Atlas’ GLM-5.2 ranks No. 1 in China in terms of intelligence and speed.
• However, another batch of restricted stock, accounting for 40% of total shares, is scheduled to unlock in January 2027.

• XTX Technology Inc. is a Chinese Mainland fabless memory chip provider specializing in R&D, design, and sales of code storage flash memory, analog IC, and MCUs.
• XTX Technology achieved net profit of RMB75.9 million in the three months ended March 31, 2026, representing 278.8% of its 2025 full year.
• For the three months ended March 31, 2026, XTX reported RMB224,112 revenue, RMB124,674 gross profit, and RMB75,889 net profit.

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• More than three years after her arrest, Lijuan Chen was sentenced to 30 months in prison
• The California woman ran a scheme linked to tens of millions of parcels from China
• We believe US Feds may develop case against the companies who benefited from the fraud

• I summarise the latest spreads and newsflow for the merger arb situations covered across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, the Philippines, Thailand, and Chinese ADRs.
• Highest spreads: Skyworth (751 HK), Changhong Jiahua (3991 HK), Arclands Corporation (9842 JP), Cygnus Metals (CY5 AU), Atlantic Lithium (A11 AU), Continental Aerospace Technologies (232 HK). 
• Lowest spreads: Accent Group (AX1 AU), Kakaku.com Inc (2371 JP), Taiyo Holdings (4626 JP), Vault Minerals Ltd (VAU AU), Shinko Shoji (8141 JP), J.S.B (3480 JP). 

• Shanghai Enflame Technology (ENFLAME CH), one of the “Four Domestic GPU Little Dragons”, has just been approved by the CSRC to list on the STAR market, aiming to raise Rmb6bn.
• The company’s strengths lie in its comprehensive product portfolio, differentiated architecture (DSA vs. GPGPU), strong shareholder backing, and position for China’s AI self-sufficiency.
• At 27.1x P/S for FY26 (10% share capital enlargement), Enflame is inexpensive relative to A-share peers, Biren Technology (6082 HK) and Iluvatar CoreX (9903 HK). 

• Shanghai Henlius Biotech (2696 HK) reported 10% YoY revenue growth in China to RMB1.4B for core innovative product serplulimab. Henlius is now pursuing its globalization initiatives for serplulimab.
• Thus far, the drug has been approved in ~50 countries. With its license-out areas comprehensively covering over 100 countries and regions, the international commercialization has further growth potential.
• With continuous indication and geography expansion, serplulimab is accelerating toward its next milestone as a domestically developed blockbuster with the potential to exceed RMB10B (~$1.5B) in annual sales before 2030.

• China General Education operates in a challenging environment, marked by a consistent decline in revenue, net income, and profitability margins over the last three years. This is coupled with a highly negative free cash flow, signaling potential liquidity and investment constraints.
• The company faces significant regulatory uncertainty inherent in China’s private education sector. Government policies can shift rapidly, impacting operational models, profitability, and enrollment, representing a material risk for investors.
• Despite poor fundamental performance, the company’s valuation appears mixed, with a low price-to-book ratio suggesting potential value, but this is contrasted by strong share price momentum and a high P/E ratio relative to some peers. A recent acquisition in art examination training and a proposed name change to ‘Trillion Holding Group Limited’ signal a strategic shift, but the success of this pivot is uncertain.

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• Compared to open-loop platforms, LALATECH’s closed-loop model has stronger bilateral network effects.The downward trend in monetization rate is not a short-term phenomenon, but a structural trend under regulatory constraints/fierce competition
• If monetization rate drops to 8% and cannot recover, the efficiency of converting GTV into revenue will continue to decline.Even if GTV maintains growth, the incremental revenue will be eroded.
• Based on 2026 forecast, we think a conservative valuation range could be 18-22x P/E. A neutral valuation range could be 20-24x P/E. An optimistic valuation range could be 25-30x P/E. 

• HSTECH June 2026 added KNOWLEDGE ATLAS and MINIMAX-W and deleted KINGSOFT and KINGDEE INT’L. All event windows through the fourth post-implementation week are complete.
• Both ADDs fell in the first implementation week, far beyond the historical ADD first-week means. KNOWLEDGE ATLAS then gained +46.8% in weeks two to four.
• The positive-bridge DELETE rebound held for KINGSOFT at +3.9% but missed for KINGDEE INT’L at -12.3%.

• China’s CXO sector is growing rapidly, with China’s dominant companies providing critical services to global pharmaceutical companies.  New modalities, particularly GLP-1/TIDES, ADCs, and bispecific antibodies, are structural demand drivers.
• The biggest overhang for the sector, the US BioSecure Act, is overblown due to the US pharma industry’s substantial structural dependency on China’s CXO sector.
• Pharmaron’s investment case rests on three interlocking pillars: an irreplaceable integrated platform, a landmark commercial anchor in the GLP-1 supercycle, and the structural impossibility of a rapid US-China CXO decoupling.

• SHEIN has received formal permission from China’s CSRC to list its shares in Hong Kong
• The IPO could value SHEIN at US$40-50B per reports, about half of its valuation in 2022
• Also: Temu fined 200M Euros for unsafe goods | New EU fee on cheap Chinese imports

• Weichai Lovol is the largest agricultural machinery manufacturer in China, holding a dominant market share in key product segments like tractors and combine harvesters.
• As a core subsidiary of Weichai Power, the company benefits from significant synergies, including access to industry-leading powertrain technology (engines, transmissions), hydraulic systems, and new energy solutions, creating a unique vertically integrated industrial chain.
• The company is strategically focused on intelligent agriculture, developing high-end, smart agricultural machinery and integrated digital platforms to capitalize on China’s push for agricultural modernization and food security. A planned IPO on the Hong Kong Stock Exchange is expected to fund future growth and global expansion.

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• Ziyond Pharmaceutical is a specialized topical dermatology company in China, offering category-leading products. It seeks HKEX listing to fund portfolio, manufacturing, and market expansion.
• Revenue increased from RMB1,030,560 thousand in 2023 to RMB1,323,670 thousand in 2025, with adjusted net profit reaching RMB180,933 thousand in 2025.
• Gross profit margin decreased from 71.8% in 2023 to 66.1% by March 31, 2026, while the debt-to-assets ratio increased to 64.9%.

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• Zhipu & MiniMax both IPO’d on the Hang Seng within a single day of each other back in January & both exited their lockup expiry dates earlier this week
• Zhipu (Knowledge Atlas 2513.HK) now trades at HK$1,884 compared to its IPO price of HK$116 while MiniMax now trades at HK$259 as compared to its IPO price of HK$165
• Zhipu placed up to 19,780,000 new H shares at HK$1,588 (~13% discount) each on July 9, raising an expected gross proceeds of approximately HK$31.41 billion. Smart move. 

• This morning Z Fin (1168 HK) was suspended pursuant to Hong Kong Code on Takeovers and Mergers. I expect a Scheme Offer from founder Ou Yaping, who currently holds 64.61%.
• Z Fin was previously known as Sinolink Worldwide, a PRC property developer.
• Despite the fintech rebranding, Z Fin very much remains a property play, and should be assessed accordingly. At 0.2x trailing P/B, Z Fin is trading bang in line with peers. 

• My base case valuation of CXMT is market cap of 835.8 billion RMB (P/E of 5.9x using my base case estimated net profit of 140.9 billion RMB in 2026).
• The target P/E of 5.9x is based on a 30% discount to the comps’ P/E valuation in 2026.
• If CXMT achieves market cap of about 836 billion RMB (US$123 billion), this would represent about 12% of SK Hynix’s market cap of 1,558 trillion KRW (US$1.03 trillion).

• Omnivision Integrated Circuits (501 HK) (OVIC, 603501 CH), a semiconductor company, raised around US$600m in its H-share listing. The lockup on its cornerstone investors is set to expire soon.
• OVIC, is the world’s third largest smartphone CIS and the largest automotive CIS provider with a market share of 32.9% based on revenue in 2024, according to Frost & Sullivan.
• In this note, we will talk about the lockup dynamics and possible placement.

• Hysan faces a fatal 2026 earnings cliff. When Lee Gardens Phase 8 completes, 0.69 bn HK dollars of masked capitalised interest will instantly crush the income statement.
• A 15.5% office vacancy rate and a 0.6 m sq ft annual supply glut ensure Hysan’s 1 m sq ft of new space faces catastrophic leasing headwinds.
• Plunging luxury retail sales and mainland China’s deceleration have structurally impaired Hysan’s Causeway Bay stronghold, stripping away its traditional defence mechanism against office market weakness.

• The market’s recovery broadened further, supported by strong participation across stocks and a pickup in single stock option activity.
• Single stock implied vols remain elevated relative to their recent history despite a slight easing during the week.
• Alibaba stood out for strong price and option activity, with trading spread broadly across strikes and expiries.

• POCO Holding Co., Ltd. is a leading global provider of alloy soft magnetic powder-based products. It ranked first in the global alloy soft magnetic powder core market by revenue in.
• POCO Holding Co., Ltd. ranked first in the global alloy soft magnetic powder core market with 27.1% share and fifth in the AI chip inductor market in 2025.
• Profit for the year was RMB426,124 in 2025. Net profit margin decreased from 23.6% in 2025 to 18.1% by March 31, 2026.

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• Nexchip, an IC foundry, raised HKD 6,779m (USD 871m) from its global offering and will list on the Hong Kong Stock Exchange on Friday, 10 Jul 2026.
• In our previous notes, we looked at the company’s fundamentals and the deal terms.
• In this note, we provide an update for the IPO before its trading debut.

• Ming Yu Pharmaceutical, established in 2018, focuses on oncology (ADCs, immunotherapies) and advanced autoimmune assets, seeking HKEX Chapter 18A listing due to profitability.
• The company boasts 11 product candidates, including core products MHB036C and MHB018A, leveraging its proprietary SuperTopoi ADC platform with high potency.
• Ming Yu reported significant losses, including RMB919,308 in 2025, and net liabilities of RMB2,148,726 as of May 31, 2026.

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• HSCEI June 2026 added Hansoh Pharma and Akeso and deleted Sunny Optical and Haier Smart Home. All event windows through the fourth post-implementation week are complete.
• ADDs were mixed in the first implementation week, then both rallied in weeks two to four.
• DELETEs broke the historical positive-bridge rebound pattern. Sunny Optical drove the miss with a -12.8% first-week return.

• Nexchip Semiconductor (688249 CH) raised US$880m in its upcoming Hong Kong IPO.
• It is a pure-play 12-inch wafer foundry providing comprehensive wafer fabrication services across mainstream technology nodes ranging from 150nm to 40nm, while steadily advancing 28nm platforms.
• We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.

• Leading Interconnect Semiconductor Technology (LIST HK) is looking to raise at least US$100m in its upcoming Hong Kong IPO. The deal will be run by CITIC.
• Leading Interconnect Semiconductor Technology (LIST) is an advanced integrated circuit (IC) substrate provider that leverages intelligent manufacturing to focus on the research, development, production, and sale of high-density interconnection platforms. 
• LIST serves as a critical leader in the industry and ranked third among IC substrate manufacturers located in the China based on 2025 revenue, according to Frost & Sullivan (F&S).

• Salubris, a CKM-focused innovative pharmaceutical company, is seeking an A+H listing. Goldman Sachs, Citi, and CITIC are the sponsors.
• We look at the company’s core segments: innovative drugs and other pharmaceuticals.
• We discuss our preliminary thoughts on the company’s valuation based on A-H premium.

• The difficulty of developing KRAS G12D has been recognized by the industry. Investors will be more cautious about any early and unverified G12D projects, demanding higher risk premiums.
• Without data validation, the market cannot assess whether the efficacy/safety of TSN1611 are competitive. The “good safety” data of TSN222 still needs to be validated through larger clinical trials.
• We think Tyligand’s valuation may not exceed the valuations of comparable companies such as Jacobio Pharmaceuticals (1167 HK) and GenFleet Therapeutics (GENFL12 HK).

• Befar Group Co Ltd A (601678 CH) raised ~US$156m in its upcoming Hong Kong IPO. 
• It is a comprehensive chemical group in China primarily engaged in the manufacturing and sale of chlor-alkali chemicals, C3-C4 chemicals, and wet electronic chemicals.
• We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.

• Knowledge Atlas Technology (2513 HK) (Zhipu) is looking to raise around US$4.3bn via a primary placement.
• Zhipu is one of the leading players in China’s domestic LLM space. Its IPO linked lockup had recently expired.
• In this note, we will talk about the placement and run the deal through our ECM framework.

• The company is a global leader in intelligent control, specializing in LCD controller boards and IFPDs for education and enterprise, offering intelligent devices and solutions.
• The company is a global leader in education IFPDs (17.0% market share) and LCD controller boards (24.4% market share) in 2025, with revenue increasing 23.9% in 3M 2026.
• Revenue reached RMB24,353,884 in 2025, but gross profit margin decreased from 24.5% (2023) to 19.6% (2025), and gearing ratio increased to 39.0% (3M 2026).

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• Luxshare Precision, a consumer electronics precision components and EMS manufacturer, raised HKD 24,039.1m (USD 3,089.9m) in net proceeds and will list on the HKEX on Thursday, July 9, 2026.
• In our previous notes, we looked at the company’s fundamentals and the deal terms.
• In this note, we provide an update for the IPO before its trading debut.

• 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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• On the 14th May 2026, Ten Pao (1979 HK), a power-supply and charging device manufacturer, announced the spin-off of its 92.4091%-held charging device arm via an A-share listing.
• Shares gained 21% on the news – which were promptly given back, and then some, with shares now down 17% from undisturbed. 
• A circular is now out. A shareholder vote on the carve out has been waived. The transaction requires CSRC approval. 

• Hubei Dinglong Co., Ltd. is an innovative leader in materials application for critical industries in China, providing upstream integrated materials and solutions for semiconductor industries.
• Hubei Dinglong is the largest domestic CMP Pads and OLED coating-type functional materials provider in China, holding 38.5% market share in 2025.
• While 2025 revenue was RMB2,467,551 and profit RMB743,355, net cash used in investing activities was RMB1,102,873, and cash equivalents decreased by RMB272.1 million.

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• CXMT (1726722D CH) aims to raise Rmb29.5bn in its IPO in the A-share STAR market. It is rapidly gaining global market share, which is its key attractiveness.
• It is a beneficiary of a solid industry and demand outlook. It has a leadership position in China’s DRAM market and high competitiveness built on its technological strength. 
• At just 2.8x PER for FY26, based on 10% share capital enlargement, our initial assessment is that it is priced cheaper than global peers. 

• Luxshare Precision Industry (2475 HK) (LP), a precision intelligent manufacturer, raised around US$3.5bn in its H-share listing.
• LP provides cross-sector, vertically integrated development and intelligent manufacturing solutions—from components and modules to systems—for global clients across consumer electronics, automotive electronics, communication and data centers, and other end markets.
• We have looked at the past performance and valuations in our previous note. In this note, we talk about the trading dynamics.

• Luxshare Precision Industry (2475 HK) priced its H Share at HK$63.28, raising HK$24,266.2 million (US$3.1 billion) in gross proceeds. The H Share will be listed tomorrow.
• I discussed the H Share listing in Luxshare H Share Listing (2475 HK): The Investment Case. 
• The H Share listing price implies a 12.1% AH discount (based on the last close of the A Share price), which is unattractive.

• The only fibre maker running all preform processes, with top global share, being repriced from a telecom cyclical to AI infrastructure — 1Q26 operating margin tripled to 22% from 8%.
• After a ~46% de-rating from HK$282 (22 Jun) to HK$151.90, spot implies just a ~13x FY2030E EV/EBITDA exit multiple — under half the peer average, pricing in near-distressed terminal economics.
• We initiate BUY, TP HK$170 (+12%), on a DCF-led blend (60/20/20). Even a deliberately conservative HK$150 DCF anchors the call; probability-weighted EV is HK$180 (+18%).

• 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.

• 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.  

• Perfect Medical Health Management (1830 HK) has had a tough last two years, with profits/revenues falling 31%/44%, respectively, from FY24 to FY26 as the retail environment in HK was soft. 
• The last few quarters have seen revenue stabilization and, more recently, a gradual improvement, as the company has flagged in its post-results report (with cost savings gradually kicking in).
• We now estimate a modest 7%/14% revenue/profit growth for FY27, with net margin improvement to 20%. Stock trades at 7.8x FY27 PE with a 13.5% dividend yield and net cash.  

• 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.

• 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.

• 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.

• 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.

• Sieyuan Electric, a power equipment manufacturer, is seeking an A+H listing. CITIC is the sole sponsor.
• We look at the company’s core segments: switchgear, transformers and protection and automation.
• We discuss our preliminary thoughts on the company’s valuation based on A-H premium.

• 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.

• GEM has established a three-in-one closed-loop model of “critical metal recycling-battery recycling-new energy materials”. GEM is superior to competitors in terms of integration/cost optimization in a single manufacturing process.
• The slowdown in downstream new energy vehicle and European/American demand growth or subsidy reduction will impact the demand for ternary materials, which may affect the achievement of 2026-2027 growth targets.
• There could be a discount of 25%-35% compared to the A-shares. Conservative scenario is P/E of 12-13x. Neutral scenario is P/E of 14-15x. Optimistic scenario is P/E of 16-17x.