China

• A perfect 100 GRESB score and approved science-based targets lower the cost of capital, making the portfolio a magnet for SFDR Article 8 and 9 institutional funds.
• Transitioning to a USD 100bn AUM fund manager unlocks massive value, supported by a USD 650m share buyback exploiting a steep net asset value discount.
• Exiting the build-to-sell segment de-risks cash flows and accelerates capital returns, while providing a hard yield floor through a secure US cents 25.0 base dividend.

• Sustained peak margins in 2025/2026 are cyclical, not structural: The 2026 oil price volatility and the onset of the 2% ReFuelEU Aviation mandate in 2025 have pushed Sustainable Aviation Fuel (SAF) prices to over $2,600 per ton, but the industry remains highly cyclical. Historical oversupply in 2024 halved Neste’s margins, indicating that EcoCeres must be valued on a mid-cycle valuation framework rather than its current windfall earnings.
• EcoCeres holds a unique yield and feedstock flexibility advantage: Under CEO Matti Lievonen (former Neste CEO), EcoCeres has optimized its proprietary Hydroprocessed Esters and Fatty Acids (HEFA) technology to achieve an 85% total product yield and process low-grade Palm Oil Mill Effluent (POME) at its new Pasir Gudang, Johor facility. This offsets the impact of the elimination of China’s 13% export tax rebate on raw Used Cooking Oil (UCO).
• Johor expansion is the strategic bridge to a $5 billion IPO valuation: The 420,000 tonnes per annum (tpa) Johor plant, commissioned in October 2025 at a cost of $500 million, allows EcoCeres to bypass EU anti-dumping duties on Chinese HVO. This capacity doubling serves as the financial foundation for its targeted $1 billion Hong Kong IPO by the end of 2026.

• Youlife International Holdings Inc. (NASDAQ: YOUL / 1759732D CH) operates as China’s largest blue-collar lifetime service provider, offering a vertically integrated platform covering vocational education, recruitment, employee management, and value-added market services across a nationwide network of 37 vocational schools, 146 curriculum development programs, and 180 domestic service branches.
• The company achieved a pivotal financial inflection in FY2025, with total revenues expanding 16.9% year-over-year to RMB 1,854.3 million (US$265.2 million) and net income rebounding to RMB 42.7 million (US$6.1 million), compared to a net loss of RMB 52.4 million in FY2024, driven by accelerated demand for flexible workforce management and vocational integration.
• Trading at an enterprise value-to-sales multiple of approximately 0.12x and a single-digit trailing price-to-earnings ratio (~5.8x), Youlife presents significant asymmetric upside potential within a RMB 2+ trillion total addressable market growing at a 13.3% CAGR, though realization is tempered by small-cap market volatility, gross margin pressure (10.4% in FY2025), and post-de-SPAC liquidity dynamics.

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• Putailai, a lithium-ion battery materials and equipment supplier, is seeking an A+H listing. CICC is the sole sponsor.
• We look at the company’s core segments: battery key materials and battery automation equipment.
• We discuss our preliminary thoughts on the company’s valuation based on the A-H premium.

• The Imminent “Takeunder” Reality: Despite Trio Industrial Electronics Group’s share price surging 567% since June-end to a market cap of HK$2.13 billion prior to its September 30, 2026 suspension, any upcoming deal will almost certainly be structured as a “takeunder” at a massive discount (likely near the tangible book value of HK$0.35 per share), mirroring recent transactions of HKEx-listed shell structures like Lotus Horizon and Superland Group.
• Siphoning Cash Ahead of Exit: While Trio is deeply in the red with a HK$20.45 million net loss in 1H2026, management continues to approve highly questionable connected-party consulting agreements with escalating fee caps and discretionary “gratuities” for insiders, effectively serving as a capital extraction mechanism for the founding group before they relinquish control.
• Regulatory Backdoor Trap: Any attempt by an acquirer to use Trio as a shell to inject high-growth assets (such as mainland new energy operations) will run directly into the HKEx’s stringent reverse takeover (RTO) and backdoor listing rules, creating a high-risk compliance bottleneck that could trap minority shareholders in a prolonged suspension.

• YUDO HOLDINGS CO., LIMITED is a global precision thermal management technology company and the world’s largest provider of Hot Runner Systems by revenue in 2025.
• Yudo Holdings reported 92.4% of revenue from repeat customers in 1H 2026 and maintained gross profit margins over 50% during the Track Record Period.
• Yudo Holdings reported US$380,816 thousand in revenue for FY2025, alongside a loss of US$(57,711) thousand for the same year.

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• The sharp decline in average selling price (ASP) from RMB 7.16 in 2023 to RMB 4.91 in early 2026 is not a symptom of terminal price erosion, but rather a deliberate structural shift. By transitioning away from material-heavy, low-margin external modular packaging and scaling production of high-margin monolithic TMR chip-level sensors, Sinomags successfully expanded its gross margin from 18.0% to 28.0% over the same period.
• The ongoing intellectual property warfare with Jiangsu MultiDimension Technology has been operationally neutralized. Although MultiDimension successfully petitioned the CNIPA to invalidate 20 out of 25 disputed patents, Sinomags systematically designed out the contested IP, shrinking revenue exposure of the disputed products from 12.0% in 2023 to just 0.1% by mid-2026.
• The IDM model via Germany’s Sensitec Mainz fab represents a high-fixed-cost operating leverage bottleneck. To achieve profitability and offset the high-cost German overhead, the Mainz fab must sustain a capacity utilization threshold of at least 60% to break even and 75-80% to generate meaningful cash flows, making the upcoming HKEX IPO capital allocation for the Wuxi base and Mainz upgrades a vital strategic pivot given that cash reserves dropped to RMB 165.0 million by late 2025.

• Global Market Leadership & Scale: YUDO Holdings Co., Limited is the world’s leading designer, engineer, and manufacturer of Hot Runner Systems (HRS) and precision thermal management solutions, commanding a global market share of 12.5% (ranking No. 1 worldwide in 2025) and 21.5% across Asia, alongside holding the No. 1 position in both automotive and electronics/home appliance applications.
• Superior Profitability & In-House Vertical Integration: YUDO achieves industry-leading gross margins consistently exceeding 54% (54.1% in 2023, 54.4% in 2024, 54.4% in 2025, and 55.3% in 1H 2026) and delivered an adjusted net profit of US$87.9 million in 2025 with an operating cash flow conversion ratio exceeding 100%, underpinned by complete in-house manufacturing across all core components and an exceptional 92.4% repeat customer rate.
• Structural Growth & Technological Moats: The group is strategically positioned to capture tailwinds from electric vehicle (EV) lightweighting, high-cavity medical and packaging tooling, and green polymer processing, leveraging 596 global patents, 9 global R&D centers, the flagship Suzhou Mega Hub, and an expansive global footprint spanning 83 locations across 39 countries.

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• DataCanvas Co., Ltd. is a leading AI computing service provider in China, supporting compute-intensive AI workloads and delivering on-demand cloud computing services.
• The company was ranked as the largest neocloud in China by revenue in 2025, with controllable computing capacity exceeding 29,000 PFLOPS.
• The company reported revenue of RMB588,383 thousand for H1 2026, alongside a loss of RMB(1,094,878) thousand and net liabilities.

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• Dominant Market Position: JD Health International Inc. (6618 HK) is China’s largest online healthcare platform and digital pharmacy by revenue, delivering RMB 79.65 billion in FY2025 revenue with an expanding gross margin of 24.78% and net profit of RMB 5.83 billion.
• Supply Chain and Fulfillment Moat: Backed by parent JD.com’s nation-leading logistics and proprietary pharmaceutical cold-chain infrastructure, JD Health maintains a defensible operational moat over digital and offline retail peers in direct pharmaceutical distribution (1P) and platform services (3P).
• Operating Leverage and Cash Generation: The business demonstrates compounding operating leverage, with net margin expanding from 4.00% in FY2023 to 7.32% in FY2025 and free cash flow reaching RMB 10.86 billion, providing robust balance sheet flexibility for strategic growth and share repurchases.

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• In the past two months, Lotus Horizon (6063 HK), WK (2535 HK), and Superland (368 HK) have been subject to conditional/unconditional (massive) takeunders. Expect the same for KFM (3816 HK).
• Now fellow contractor/manufacturer, Trio Industrial Electronics Group (1710 HK), is suspended pursuant to the Hong Kong Code on Takeovers and Mergers. Its share price is up ~567% since June-end.
• Not a great look for the exchange. I’ve reached out to the HKEx to get their read.

• Moore Threads Technology (688795 CH) (MTT), a domestic GPU producer, aims to raise over >US$1bn in its H-share listing.
• MTT mainly engages in the research, design, and sales of GPUs and related products. It listed its A-shares just last year.
• We looked at its past performance in our earlier note. In this note, undertake a peer comparison and talk about valuations.

• In H1 and Q2 this year, JD Logistics’ top-line growth remained strong, growing by 20%+
• But margins have continued to erode in recent periods, probably due to changes in mix
• Down close to HK$10 per share, we believe lots of negativity is “baked in” to price

• NAURA ownership has surged seven-fold since 2023: 18.3% of active funds now hold it, with $2.4bn invested and holders running a committed 1.86% average position.
• The register is built on emerging markets: owned by 63% of China A-Share funds and 22% of GEM funds, with GEM investors leading 2026’s buying.
• Global and ACWI ex-USA funds hold nearly $15bn in NAURA’s listed peers but under $100m in NAURA itself. Breaking into global portfolios is the next leg.

• Source Photonics Integration as the Core Profit Engine: Following its consolidation in October 2025, Source Photonics has fundamentally reshaped DSBJ’s financial profile, accounting for 52.92% of consolidated net profit in Q1 2026. This vertical integration into high-value Indium Phosphide (InP) EML laser chips offers a structural margin cushion against severe ASP erosion in the pluggable assembly market.
• The Capital Allocation Paradox of the Hong Kong Listing: The targeted $2 billion to $3 billion Hong Kong IPO—which received CSRC clearance for up to 234.04 million H shares on September 29, 2026—is driven by onshore balance sheet deleveraging and funding the aggressive $1.2 billion domestic capacity expansion for Source Photonics. This heavy domestic spend contrasts with modest capital allocations for Mexico and Southeast Asia, highlighting a strategy that prioritizes technology-heavy domestic capex over rapid geopolitical footprint diversification.
• Divergent Cyclical Realities (AI vs. Mobile & EV): DSBJ faces a stark divergence between its hyper-growth AI optical and high-layer HDI segments (propelled by North American hyperscaler demand) and its legacy consumer and automotive units. While AI demand is structural and currently constrained only by EML chip and high-frequency copper-clad laminate (CCL) supply, the traditional FPC business (tied to Apple’s smartphone cycle) and the precision automotive metal business (tied to Tesla’s Mexico slowdown) are operating in late-cycle, margin-compressed territory.

• Shandong Linuo Pharmaceutical Packaging Co.,Ltd. is an established Chinese provider of borosilicate technical glass, specializing in pharmaceutical glass packaging and household heat-resistant glass.
• The company ranked ninth in China’s pharmaceutical glass packaging market and first in China’s household heat-resistant glass market by sales revenue in 2025.
• The company reported a decrease in profit for FY2025 and negative net cash from operating activities for FY2025 and H1 2026.

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• QL adopts a comprehensive business model of “independent R&D + full industrial chain layout + diversified pipeline”.Based on proprietary technology platforms, QL is able to form a structural cost advantage.
• The competition for GLP-1 is moving from the broad stage to the “efficacy, safety, convenience, and economy” refined competition stage, and QL is facing intense competition in multiple dimensions.
• With the comprehensive assessment of QL – “no commercialized product + strong pipeline”, and “first mover advantage + product differentiation”, a neutral scenario is HK$15-20 billion market value.

• A rare pure-play listing. EcoCeres, a Bain-backed Hong Kong producer of sustainable aviation fuel, targets a ~US$1bn IPO by end-2026, in a market created by law.
• It lists near a margin peak. The 2026 oil shock inflated SAF profits; in 2024, oversupply more than halved Neste’s margins. Value it on mid-cycle earnings, not the windfall.
• Price discipline matters. Law-mandated green sectors (solar, wind, renewable fuels) trade at 6–12x EV/EBITDA. The reported US$5bn valuation implies ~14x. Engage below US$3.5bn; pass above US$5bn.

• Top Hong Kong Stock Exchange listed covered call candidates for the month of October.
• The top 10 provide an average ~7.42% premium with a potential ~8.82% upside P&L if exercised.
• Investors with a neutral 1-month view on the underlying can seek to generate income.

• Anhui Sinomags Technology is an IDM in the magnetic sensor industry, offering one-stop solutions across diverse industries. The company ranked tenth globally in magnetic sensor revenue in 2025.
• Anhui Sinomags Technology ranked tenth globally in magnetic sensor revenue in 2025 and fifth in xMR sensor revenue, with revenue increasing 20.2%.
• The company reported a net profit of RMB52,584 thousand in 2025, following a net loss of RMB66,562 thousand in 2023.

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• Moore Threads Technology (688795 CH) (MTT), a domestic GPU producer, aims to raise over >US$1bn in its H-share listing.
• MTT mainly engages in the research, design, and sales of GPUs and related products. It listed its A-shares just last year.
• In this note, we look at its past performance and other deal dynamics that might impact the Hong Kong listing.

• A consortium comprising CSI Properties (497 HK), Asia Standard International Group (129 HK), and Cheung Chung-kiu, applied to the Town Planning Board to redevelop “Harbourside HQ”  into two residential towers.
• The Planning Department previously indicated no objection to the application. However, Hong Kong’s Town Planning Board rejected the proposal last Friday.
• Vacancy rates for HK commercial properties remain elevated. 25% for Harbourside HQ. Yet, rezoning sets a precedent that cannot easily be reversed (as and) when economic conditions rebound.

• Shenzhen Transsion Holdings (TRAN HK), aims to raise up to US$500m in its A/H share listing.
• A smart device and mobile Internet service provider primarily engaged in the design, R&D, manufacturing, sales, and brand management of smart devices, with a core focus on mobile phones.
• In this note, we look at its PHIP updates and valuation.

• We update our March A+H Connect study with 18 ADDs since mid-March, 10 after stabilization and 8 on listing day, against 31 earlier events.
• After stabilization ends, H-shares now outperform A-shares for about 20 trading days after the Connect ADD, the reverse of the March pattern.
• On listing-day ADDs, Southbound holdings built faster than on ADDs after stabilization, yet most H-shares fell below the IPO price within 20 trading days.

• Asymmetric Trade Setup: Initiate a tactical long in Sino Land (0083.HK) before the October 29, 2026 ex-dividend date to capture VWAP-anchored price stability driven by the sponsor’s structural scrip election.
• Float Compression Catalyst: Tsim Sha Tsui Properties consistently elects scrip on its 58.11% stake, locking up massive equity, tightening public float liquidity, and engineering a highly predictable price support floor.
• Fortress Balance Sheet: Unlike highly levered peers, Sino Land boasts HKD 59.07 bn in cash, providing an impenetrable macroeconomic shield that virtually eliminates downside credit and refinancing risks.

• Suzhou Dongshan Precision A (002384 CH) said in a filing that it has received approval from China’s securities regulator for the Hong Kong offering.  The company may raise $2-$3B.
• The company makes PCBs and optical transceivers, both key to the AI buildout. Despite falling almost 40% from a June peak, its shares have more than doubled YTD.
• The company’s vertically integrated AI interconnect business—spanning laser chips, optical modules, and AI server boards—is viewed as a unique, differentiated position in the optical networking supply chain.

• Jieneng Investment’s offer for Zheneng Jinjiang Environment (ZJE SP) is at S$0.70 a share, a 19.7% premium to the undisturbed price. Two potential S$0.0225 dividends take the total to S$0.7225–S$0.745.
• The Chinese regulatory approvals look low-risk because the buyers are SOEs, a precedent (Canvest) got the same approvals, and waste-to-energy is a favoured sector. The main risk is timing.
• Holders of 83% of disinterested shares have given irrevocables, above the 75% needed. The shares have not closed above S$0.70 for over 5.5 years. This is a done deal.

• Sitoy announced full-year results yesterday. Operationally, they were below expectations.
• Its Net Current Assets minus all liabilities were HK$ .58 per share.
• Its book value was HK$ 1.51 per share and at 0.28 P/B

• Robotechnik Intelligent Te-A (300757 CH) has dual-listed H-shares (3757 HK) today.  The company operates in the automation equipment industry, primarily serving the PV solar cell and electronics/semiconductor industries.
• RoboTechnik ranked first among all brands in China’s industrial robot market by shipment volume in H1 2026 and has held the top position among domestic brands for eight consecutive years. 
• The company’s risks include: solar overcapacity, intense competition, regulatory & geopolitical issues, customer concentration, capital needs, rising leverage, and governance issues.  

• AI-driven optical infrastructure spend remains highly durable in the near term as hyperscalers transition to 1.6T architectures, but the cycle faces a sharp risk of demand deceleration by late 2027 due to aggressive capacity build-outs and localized oversupply of standard fiber assemblies.
• ADTEK’s high gross margins (39.5% in FY25) are defensible only on highly customized, low-tolerance multi-fiber assemblies where fast-turn manufacturing and low insertion loss (<0.1 dB) are required, whereas standard fiber patch cords are rapidly commoditizing.
• Extreme customer concentration (top five clients represent 90.6% of 2025 revenue) and geopolitical exposure (86.2% of sales to the US market) are the primary structural risks. The company’s aggressive shift to Vietnam and strategic raw material pre-procurement (104 inventory days in FY25) are defensive moves to mitigate these vulnerabilities.

• HK Connect’s September 2026 implementation had 53 ADDs and 15 DELETEs. We review the first implementation week vs history.
• ADDs fell in the first implementation week, vs the historical pattern of a first-week gain. Implementation day accounted for most of the average first-week drop.
• DELETEs fell further than the historical first-week decline, except Low-vel DELETEs.

• HS TECH September 2026 had 1 ADD and 1 DELETE. With the first implementation week complete, we review current-cycle performance vs history.
• Iluvatar Corex fell through the first implementation week after its bridge decline. The negative-bridge ADD pattern held, with a deeper fall than the historical average.
• Tongcheng Travel also kept falling after implementation. The negative-bridge DELETE pattern held, and its decline was deeper than the historical average.

• ESWIN Computing, a RISC-V oriented chip product provider, launched its Hong Kong IPO to raise USD 318m. CITIC and CSC are the joint sponsors.
• In this note, we look at the deal terms and provide our thoughts on valuation for the company.
• We analyze cornerstone and sponsor performance and assess the risk-reward of the deal.

• Mr Hung’s offer for Get Nice (64 HK) is HK$2.00 in cash plus a HK$2.00 special dividend. The gross spread is now 3.6%, and the vote is on 26 October.
• Mr Hung holds 51.67%. Blocking the scheme requires 4.83% of outstanding shares (10% of disinterested holders), and no disinterested shareholder appears to be close to that.
• The IFA says the offer is fair and reasonable. It justifies the 62.5% NAV discount by past trading discounts and the cost of selling assets. This is a done deal.

• The HSI Sep 2026 implementation included two ADDs, and the first implementation week is complete.
• Both ADDs rose on implementation day, unlike most historical negative-bridge ADDs.
• The first week split. Weichai Power ended down, in line with history, and Hua Hong Grace ended up.

• Overseas revenue is 60-100% more profitable, and interestingly, it has reached more than 50% of BYD’s total revenue for the first time. 
• The recent recall is not significant enough to dent the group’s overall business. BYD Company (1211 HK) has one of the highest overseas sales contributions compared to the peers. 
• The lower valuation, combined with a stronger operation including higher overall margin thanks to the growing overseas business, presents an opportunity to own BYD. 

• RoboTechnik, a photovoltaic and silicon photonics manufacturing equipment maker, raised HKD 4,961.3m (USD 632.5m) from its global offering and will list on HKEX on Tuesday, 29 Sep 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.

• Transsion, a mobile phone maker focused on Africa and other emerging markets, is seeking an A+H listing. CITIC is the sole sponsor.
• While our previous note covers the fundamentals of the company, in this note we look at its 1H26 results, changes and valuation versus our previous note.
• The recovery held up in 1H while maket position weakened. 

• We compile our selection of companies across Japan, China & India based on bottom-up triggers in each company.
• This is a mid-quarter update on companies as most companies will be announcing their September quarter results in next 45 days.
• Based on these new results and guidance, we will update the list of top ideas accordingly.

• Beijing ESWIN Computing Technology (ESWIN HK) is looking to raise up to US$318m in its upcoming Hong Kong IPO.
• Beijing ESWIN Computing (ESWIN) is a fabless chip product provider based in China that specializes in researching, designing, and commercializing hardware-software integrated semiconductor solutions built on the open-source  RISC-V architecture.
• In this note, we look at the company’s past performance and valuations.

• 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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• Weak breadth and uneven daily price action kept the tone heavy as Hong Kong equities continued to struggle for momentum in the shadow of Xi-Trump.
• Hong Kong’s implied volatility divergence mirrors a broader pattern also appearing across other major indexes and their constituents.
• Call participation remained unusually strong through most of the week as overall single stock option activity edged higher.

• Operating cash flow degradation and a massive working capital buildup—culminating in an H1 2026 inventory turnover of 313 days—directly caused the lapse of Onyx’s Hong Kong IPO application on July 16, 2026. Despite crossing the 1 billion yuan revenue threshold, the company prioritized short-term shareholder distributions over liquidity, paying out 90 million yuan in dividends while operating cash flow deteriorated.
• Onyx’s open Android ecosystem (BOOX OS) occupies a volatile middle ground. It offers superior versatility compared to Kindle and reMarkable, but suffers from margin compression as customer acquisition costs escalate, with sales expenses climbing from 9.1% to 13.9% of revenue to defend domestic market share post-Kindle’s exit.
• The company is severely bottlenecked by E Ink Holdings’ near-monopoly on e-paper film. This forces Onyx into defensive raw material stockpiling to ensure supply, which in turn spiked their gearing ratio to 253% in H1 2026 as they relied on short-term bank borrowings to fund working capital.

• China-Listed express firms reported softer volume growth in August (vs July and Q2)
• SF Holding and Yunda Holding continued to lose share in August; STO Express gained
• We believe softer volume growth in August could indicate weak online retail activity

• Orbbec Inc. is a global leader pioneering 3D visual perception solutions, building foundational platforms for Physical AI and robotic intelligence, serving customers across robotics and AIoT.
• Orbbec Inc. was ranked first in the global robot 3D visual perception market in 2025, holding a 29.0% market share by revenue.
• The company reported a net profit of RMB127,621 thousand in FY2025, following net losses in FY2023 and FY2024.

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• Pateo’s hardware-software decoupling is hitting a commercial ceiling, forcing the company into highly dilutive capital raises and high-risk upstream acquisitions to survive. The ongoing domestic EV price war has crushed hardware-integrated smart cockpit margins, and software-only monetization is near-impossible in China. Pateo’s RMB 1.4 billion acquisition of a 70% stake in Chengdu Meenyi Electronic (CME) is a desperate land-grab for higher gross margins, shifting the story from vehicle connectivity to AI computing.
• The company’s balance sheet is under severe liquidity strain, with RMB 2.4 billion in short-term bank loans vs. only RMB 1.54 billion in cash and cash equivalents as of June 30, 2026. This gap, compounded by the heavy cash outflows required for the CME and Guangzhou Seagull transactions, explains why Pateo has executed three dilutive equity placements in 2026 alone, raising roughly HK$1 billion.
• The recent open-market share purchases by CFO Zhang Fukai, Executive Director Lai Weilin, and Procurement VP Liang Chen are tactical defensive PR signals ahead of the pre-IPO lockup release. While management has publicly emphasized these purchases as evidence of fundamental undervaluation, the actual volumes are nominal and intended to preempt market panic ahead of the massive H-share lockup expiration on September 30, 2026.

• Pateo Connect Technology (PTC HK) raised US$140m from its Hong Kong IPO in September 2025 via a primary offering of HKD102.23/share in its IPO.
• It is one of the largest domestic providers of smart cockpit and intelligent connectivity solutions in China, providing full-stack smart cockpit solution and cloud-based vehicle connectivity, for Chinese OEMs.
• In this note, we will talk about the lockup dynamics and possible placement.

• Our 2020 caution held: learning products and contract manufacturing finished FY03/2026 below FY03/2020 revenue, telecom held up only through acquisition, and EPS fell 30%.
• The bond-proxy framing failed: shareholders collected about 58% of the 2020 price in dividends, but shrinking earnings held annual returns below 8%.
• At an 8% yield and 12.5x earnings, one variable decides returns: whether earnings stop shrinking, because a 100% payout leaves nothing to compound.

• Onyx International Inc. is a global consumer technology electronics brand in the knowledge-driven productivity tools industry, offering e-paper tablets and e-notes powered by its BOOX OS.
• Onyx International Inc. was the largest knowledge-driven productivity tool brand in China and the second largest globally in 2025 with 4.2% market share.
• Revenue increased from RMB803,580 thousand in 2023 to RMB1,128,185 thousand in 2025. However, profit for the period decreased in H1 2026, and the gearing ratio increased significantly.

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• Unprecedented tight copper concentrate supply has driven 2026 annual benchmark TC/RCs to $0/t and spot rates deeply negative (reaching -$132/t to -$173/t in mid-2026), shifting immense margin from smelters to miners. Consequently, Guangdong Rising Mineral-Rich Mountain Copper (Dabaoshan) achieved a copper concentrate gross margin of 65.3% in H1 2026.
• The company’s profitability is heavily double-leveraged to both copper and sulfur. Its sulfur concentrate gross margin climbed to 74.6% in H1 2026 due to a global sulfur supply crunch driven by Middle East geopolitical tensions and explosive domestic demand from the lithium iron phosphate (LFP) battery value chain.
• Dabaoshan remains a highly vulnerable single-mine operation with a remaining mine life of only 13 years. Reinvestment and external M&A are severely constrained by the Guangdong State-owned Assets Supervision and Administration Commission (SASAC), which prioritizes production volumes and stable dividend payouts over return on invested capital (ROIC) maximization.

• Dominant Platform Ecosystem and Network Effects: Full Truck Alliance (YMM) is the undisputed leader in China’s digital freight matching market, operating the flagship Yunmanman and Huochebang mobile platforms. By connecting millions of shippers and truck drivers, YMM has transformed a fragmented logistics sector into a digitized, centralized ecosystem, driving substantial operating leverage and expanding gross margins to over 72% in recent quarters.
• Accelerating Monetization and Cash Generation: YMM has successfully transitioned its revenue mix toward high-margin transaction commissions and value-added solutions, resulting in a 3-year EPS CAGR of 118.73% and a 3-year Free Cash Flow CAGR of 252.03%. Q2 2026 operating cash flow grew 64% year-over-year to $315.51M, demonstrating superior cash conversion capabilities.
• Compelling Valuation and Shareholder Capital Return: Trading at $8.16, shares offer an attractive entry valuation (~12x FY26 P/E) well below analyst fair-value thresholds of US$9.00. The company’s expanding shareholder return program delivers an attractive 4.12% dividend yield, backed by a robust net cash balance sheet and sustainable operational cash flows.

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• Semiconductor Manufacturing International Corporation (SMIC) stands as mainland China’s premier pure-play foundry and the world’s third-largest contract semiconductor manufacturer by capacity, strategically positioned as the cornerstone of China’s semiconductor localization drive across automotive, edge AI, and consumer electronics.
• The company delivered record financial performance in Q2 2026, generating revenue of RMB 21.02 billion (up 19.7% QoQ and 36.0% YoY) and net income of RMB 3.11 billion, catalyzed by a 40% surge in AI companion chip demand, improved blended ASPs, and gross margin expansion to 22.5%-25.3%.
• Despite strong top-line momentum (10-year revenue CAGR of 16.94%), substantial ongoing capital expenditures continue to elevate depreciation headwinds, capping gross margin expansion and causing cash flow cyclicality, while persistent geopolitical export controls constrain leading-edge node scalability.

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• Strategic Linchpin of Chinese Semiconductor Localization: Semiconductor Manufacturing International Corporation (SMIC) is the indispensable anchor of mainland China’s integrated circuit (IC) manufacturing ecosystem, capturing robust domestic fabless demand across consumer, automotive, and industrial end-markets amid heightened supply chain regionalization.
• Financial Inflection and Margin Expansion: Following a resilient revenue trajectory from 222,056.55M in 2023 to 307,483.60M in 2025, SMIC demonstrated accelerated operating performance into 1H 2026, highlighted by record quarterly revenue of 100,607.22M and net margin expanding to 14.78% in Q2 2026, driven by high fab utilization and fixed-cost absorption.
• Capital Intensity vs. Geopolitical Headwinds: While heavy capital expenditure programs in 300mm mature and advanced-patterning capacity have kept annual free cash flows negative (-162,793.83M in 2025), substantial state-backed funding and captive domestic market share provide structural balance sheet protection against ongoing Western export controls on advanced tooling.

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• Sustained Profitability Remains Far Off Due to a Structural Scissors Gap: Despite solid revenue growth reaching RMB 2.43 billion in 2025, Beijing ESWIN Computing’s operating model is severely compressed by a gross margin of just 18.6% (which dropped further to 14.8% in Q1 2026) facing massive R&D overheads of RMB 1.04 billion. Achieving breakeven requires a successful scale-up of its higher-margin computing and interconnect divisions, which currently represent only 15.8% of total revenue.
• Strategic De-risking from BOE Is Underway but Client Concentration remains High: While ESWIN’s revenue dependency on its largest customer, BOE (Customer A), fell from 82.1% in 2023 to 39.3% in Q1 2026, the company’s top five customers still command 83.1% of overall sales. Real commercial terms are heavily constrained by BOE’s pricing power, resulting in aggressive “price-for-volume” concessions that have eroded human-machine interaction (HMI) chip margins down to 7.3% for core display driver components.
• RISC-V in Embedded/Automotive Ecosystems Faces a Multi-Year Adoption Lag: Despite launching high-performance SoCs like the EIC7700X (19.95 TOPS NPU, SiFive P550 cores), displacing ARM and x86 in the automotive and robotics sectors is limited by extreme software ecosystem fragmentation. Real-world migration is currently confined to deep-edge microcontrollers (MCUs) and niche co-processors, with main cockpit and safety-critical powertrain displacements pushed out beyond 2030 due to toolchain gaps and qualification barriers.

• RoboTechnik Intelligent Technology (RBTK HK) makes manufacturing equipment for the PV and silicon photonics (SiPh) industries. It is seeking to raise up to US$663 million at HK$436.00 per share.
• Its legacy PV business is collapsing, while SiPh assembly and testing equipment, acquired through ficonTEC in 2025, generated 80% of 1H26 revenue.
• The investment case is cautious: RoboTechnik leads a fast-growing SiPh niche, but is barely profitable, leveraged and goodwill-heavy, with a weak governance record.

• ESWIN Computing, a RISC-V chip product provider, has passed the HKEX listing hearing and is seeking a Main Board listing. CITIC and CSC are the joint sponsors.
• We look at the company’s core segments: human-machine interaction and multimedia processing chip products, and interconnectivity and computing chip products.
• We then look at the company’s financial profile, loss-making status, pre-IPO valuation and investor backing.

• Tencent’s massive AI pivot is reshaping its capital allocation strategy. The company’s Q2 2026 capital expenditure nearly tripled year-on-year to RMB 52.8 billion, driving reported free cash flow negative to negative RMB 13.8 billion. This has triggered a structural reduction in share buybacks, which are expected to drop to HKD 40 billion to HKD 60 billion in 2026, down from HKD 112 billion in 2024.
• WeChat Video Accounts (VA) remain the primary engine of near-term monetization, shields against ByteDance (Douyin), and the ultimate host for AI agents. VA user time spent grew over 20% year-on-year in Q2 2026, yet its ad-load remains low at 3% to 4% (compared to Douyin’s 10% to 12%), representing significant untapped pricing power and ad inventory headroom.
• Divestment of the listed investee portfolio (valued at RMB 673 billion as of late 2025) is transitioning from a regulatory defense mechanism to an active capital-funding tool. While domestic consumer tech holdings (like remaining stakes in Bilibili or KE Holdings) are prime monetization targets, Tencent is selectively redeploying capital toward international gaming M&A and high-performance computing clusters rather than returning all cash to shareholders.

• Shenzhen Kinwong Electronic (3228 HK) is a global printed circuit board (PCB) manufacturer, seeking to raise up to US$653 million at a maximum offer price of HK$69.88 per share.
• I discussed the H Share listing in Kinwong Electronic H Share Listing (3228 HK): The Investment Case. 
• In this note, I present my forecasts and valuation. The AH discount is light compared to peer multiples. Given my concerns about fundamentals, I would avoid the listing. 

• Link REIT (823 HK) represents Asia’s largest and most defensively structured real estate investment trust, anchored by a HK$210B+ portfolio comprising necessity-focused neighbourhood retail, fresh wet markets, and car parks predominantly situated in Hong Kong’s high-density public housing estates.
• Despite headline statutory net losses in 2025 and 2026 driven entirely by non-cash property revaluation writedowns amid global cap rate expansions, underlying cash flows remain robust with operating cash flow of HK$6.82B in 2026 and an attractive forward distribution yield of ~6.80%.
• Management’s strategic pivot toward the ‘Link 3.0’ capital management framework—focused on capital recycling (e.g., partial divestment of 100 Market Street in Sydney), institutional joint ventures, and accretive unit buybacks—provides balance sheet resilience and supports long-term distribution per unit (DPU) stability.

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• Yield Illusion: Spring REIT slashed its interim dividend as revenues plunged, trapping investors who expected a safe yield within a mathematically flawed, debt-heavy income vehicle.
• Supply Avalanche: A massive influx of Grade-A office supply in Beijing shifted pricing power entirely to tenants, triggering devastating negative rental reversions for the flagship asset.
• Leverage Vice: Shrinking property valuations and structurally elevated debt costs are driving the REIT perilously close to strict loan-to-value covenant breaches, accelerating fundamental destruction.

• CSPC Pharmaceutical (1093 HK) 1H26 revenue rose 40% YoY as finished drugs and licensing revenue, both witnessed growth. The company ended 1H26 with a net profit of RMB 6.5B.
• The finished drug segment achieved revenue of RMB 10.2B, up 11% YoY, with the nervous system and cardiovascular system revenue up 28% and 19% respectively.
• CSPC Pharmaceutical aims to expand into the high-end market to achieve competitive differentiation and thereby command higher prices. We remain bullish on the name.

• Volume Leadership vs. Price Squeeze: Dynamic Electronics is the undisputed global leader in automotive HDI PCBs, holding the No. 1 position by sales revenue. However, this volume leadership has come at the expense of profitability. Standard annual price-downs of 3% to 5% demanded by major Tier-1 automotive clients (Bosch, Continental, Valeo) are colliding with a severe upstream raw material cost squeeze.
• Upstream Supplier Power & Margin Squeeze: Upstream copper-clad laminate (CCL) and fiberglass cloth suppliers wield absolute pricing power. In 2026, aggressive price increases from giants like Kingboard (up to 20% on thin-cloth prepreg in August 2026) have compressed Dynamic’s parent-level gross margins to 14% as of Q2 2026 (a 2.1 percentage point contraction quarter-on-quarter).
• Capital Dilution & Thailand Execution Risks: Dynamic’s massive capital expenditure expansion—revised upward to NT$38.3 billion for 2026—is stretching the balance sheet during a period of net losses. The first phase of the Prachinburi, Thailand plant is facing operational learning curves and a delayed full-utilization target of Q1 2027. Coupled with a second Thai plant investment of CNY 3.3 billion and severe FX translation losses on the Thai Baht, Dynamic is suffering near-term net losses (reporting a net loss of NT$230 million in Q2 2026) despite a 33.3% YoY revenue jump in 1H 2026.

• This follows up on our piece, Ticking Different: A Comparison of the World’s Listed Luxury Watch Retailers With Exposure to Rolex, where we follow five listed luxury watch retailers.
• This is an update on the names as well as a valuation pit stop, heading into the earnings season for a few of the March-end companies 
• We like Oriental Watch (398 HK) for its net cash position (~60% of market cap) and 12% dividend yield, and The Hour Glass (HG SP) for its buybacks and superior metrics.

• Silicon Photonics (SiPh) Inflection Overcoming PV Cyclicality: RoboTechnik’s business model is undergoing a dramatic structural shift, with SiPh assembly and testing equipment—via the fully consolidated German subsidiary ficonTEC—rising to 80.3% of group revenue in 1H2026 (reaching RMB 488.2 million), successfully buffering the company against the massive capex downturn in the domestic photovoltaic (PV) market.
• Precision vs. Throughput Moat: While competitors like ASMPT (AMICRA) and Mycronic (MRSI) lead in high-throughput eutectic die-bonding (800+ UPH) with sub-micron capabilities, RoboTechnik’s ficonTEC dominates the hyper-precise, active optical multi-axis alignment space, achieving post-bond accuracies of <250 nm and rolling out pioneering double-sided electro-optical wafer-level test systems (WLT-D2) to drastically improve early-stage yield rates.
• IPO Capital Allocation and Profitability Headwinds: The pricing of RoboTechnik’s HK$4.9 billion (up to HK$5.18 billion) Hong Kong IPO on September 24, 2026, represents a crucial step to fund international manufacturing capacity and R&D. While group operations returned to a slim RMB 6.6 million net profit in 1H2026 (reversing an RMB 45.5 million net loss in FY2025), long-term margins depend on shifting ficonTEC from high-touch, customized engineering prototypes to standardized, scalable machines, alongside managing severe sole-source dependencies on Western motion-control suppliers.

• Tencent (700 HK) has been active since the start of the year in selling down some of its stake in its investee companies to raise over US$3.3bn cash.
• Tencent did report a negative free cash flow quarter in 2Q26. Given the elevated spending, it might look to sell some more of its stakes.
• Tencent owned over US$66bn worth of shares in over 39 companies, with the bulk of it stemming from US, US-HK listed and overseas listed companies.

• The US outspent China 23-to-1 on private AI investment in 2025, yet the model performance gap collapsed from ~31 percentage points to 2.7% in under three years.
• Beijing is not chasing AGI. It is deploying AI as industrial infrastructure — robots, healthcare, manufacturing — backed by state capital, open-source models, and a 2030 deadline.
• A dozen Chinese AI pure-plays now trade publicly, mostly in Hong Kong, with more IPOs in the pipeline. Valuations are steep but structural tailwinds are durable.

• Shenzhen Kinwong Electronic (3228 HK) is a global printed circuit board (PCB) manufacturer, seeking to raise up to US$653 million at a maximum offer price of HK$69.88 per share.
• It makes rigid PCBs (RPCBs), flexible printed circuits (FPCs), and other PCBs for automotive electronics, smart devices, industrial control, telecommunications, and data infrastructure customers.
• The investment case is bearish: Kinwong is a price-taker in a fragmented, capital-intensive industry, with squeezed core margins, profits propped up by copper-scrap sales and heavy capex-driven cash burn.

• RoboTechnik is a global provider of manufacturing equipment and systems for the PV and SiPh industries, ranking first in intelligent SiPh equipment by revenue in 2025.
• RoboTechnik ranked first globally in intelligent SiPh manufacturing equipment by revenue in 2025 with a 20.5% market share.
• Net cash generated from operating activities was RMB232,602 for 6M2026, with cash and cash equivalents at RMB463,646 as of June 30, 2026.

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• ASR Microelectronics, a fabless designer of cellular connectivity chips and AI SoCs, is seeking an A+H listing. MS and Haitong are the joint sponsors.
• We look at the company’s three segments: wireless connectivity chips, smart device SoCs and custom ASIC solutions.
• We discuss our preliminary thoughts on the company’s valuation based on the A-H premium.

• Zhejiang Taotao Vehicles (ZTTV HK) , provider of outdoor leisure and electrified mobility solutions, aims to raise around US$250m in its H-share listing.
• Zhejiang Taotao Vehicles (ZTV) is a global provider of outdoor leisure and electrified mobility solutions.
• In this note, we talk about the company’s past performance.

• Hunan Yuneng New Energy Battery Material (301358 CH) (HYNEB), a new energy materials company, aims to raise around US$600m in its H-share listing.
• HYNEB focuses on the research and development, manufacturing and sales of phosphate-based cathode materials, primarily lithium iron phosphate (LFP) cathode materials.
• In this note, we look at its past performance and other deal dynamics that might impact the listing.

• Aspirational Luxury Wipeout: A macroeconomic squeeze has erased 50m middle-class luxury consumers, devastating mainland turnover rents as megabrands like Gucci and LVMH report plunging sales.
• Hong Kong Office Contagion: Swire faces a brutal second front, with Grade A office vacancies hitting 17.5% and flagship portfolios suffering negative rental reversions up to 16% amid financial exoduses.
• Dividend Under Threat: With 7.7 bn HKD in fair value losses and sliding recurring profits, reliance on capital recycling masks underlying decay, threatening dividend growth and valuation.

• A capital cycle story with minimal supply coming online but booming demand in the pipeline
• Consolidation in the industry leading to better pricing not more supply
• COSL’s recent results show a marked improvement in the international business masked by FX translation losses

• Ligent priced at 14.5x FY27E and trades at 15.7x, below Innolight and Eoptolink on every multiple, for a third of their revenue growth and half their gross margin.
• The H-share ladder is Cambridge 12x, Ligent 16x, Innolight 20x. Hong Kong ranks quality and will not pay a leader multiple for a 24% gross margin and negative cash flow.
• We are BEARISH and think share price will be under pressure. You can start Buying below HK$27, the Cambridge-H 12x floor; sell above HK$39, the leaders’ 17.5x.

• Chery Automobile raised around US$1.2bn in its Hong Kong IPO. The lockup on its pre-IPO investors is set to expire soon.
• Chery Auto is a Chinese passenger vehicle company which designs, develops, manufactures and sells passenger vehicles, including internal combustion engine vehicles and new energy vehicles, both domestically and overseas.
• In this note, we will talk about the lockup dynamics and possible placement.

• The recently launched sale of Legend Holdings’ 89.94% stake in Banque Internationale à Luxembourg (BIL) is a critical turning point. It is a forced exit aimed at shrinking the holding company’s massive RMB 143.67 billion debt load and narrowing its steep 75% NAV discount. However, the reported €2.5 billion valuation faces a significant bid-ask spread.
• Monopolizing on domestic unlisted assets will be difficult. While the 1.09 billion yuan restructuring of Joy Wing Mau signals a path toward a Hong Kong listing by late 2027, other non-core assets like Joyvio’s salmon business remain functionally unmonetizable due to lingering litigation and operational bottlenecks.
• The transition of the CEO role to Yu Hao in November 17, 2025, marks a structural shift away from the legacy diversified investment model toward a state-aligned, tech-centric holding structure. With the Chinese Academy of Sciences (CAS) holding a 29.04% stake, all capital allocation and divestments are tightly constrained by Beijing’s scientific and capital repatriation mandates.

• Direct Drive Tech (DDT HK) is looking to raise around US$138m in its upcoming Hong Kong IPO.
• Direct Drive Tech Limited (DDT) is a China-based robotics technology company that specializes in direct drive technology as its core capability.
• In this note, we talk about the company’s past performance and valuations.

• Elevated portside inventories and a fresh WoW increase suggest Golden Week restocking has yet to translate into meaningful inventory drawdowns.
• Options positioning is turning increasingly constructive, with call OI building at strikes 105 and 110. OI PCR of 0.61 reinforces the bullish bias.
• Managed money extended its bearish positioning for a 12th straight week, trimming long exposure by ~4% while increasing short positions by ~3%. 

• The expiration of Chery Auto’s post-IPO lockup on September 25, 2026, unlocks an estimated $8 billion in pre-IPO shares, representing a major technical overhang for 9973.HK. This occurs exactly one year after its landmark September 2025 Hong Kong IPO, which raised HK$9.145 billion ($1.17 billion).
• Chery’s financial structure relies heavily on a stark domestic-export margin divergence, which is under severe threat as export regulatory loopholes close. While domestic sales crashed by 40.24% in early 2026 due to crippling dealer channel conflicts, exports have historically carried gross margins in the high teens. However, the European Commission’s June 19, 2026, decision to slap countervailing duties on plug-in hybrids (PHEVs) is closing the regulatory loophole that allowed Chery to bypass the standard 21% extra BEV tariff.
• Capital allocation remains dictated by state-led (SASAC) employment and volume targets rather than return on capital (ROCE) metrics. This dynamic is illustrated by Chery’s aggressive expansion of its offline distribution into eight overlapping domestic dealer networks, which has caused severe price inversions and compromised dealer liquidity to sustain top-line factory utilization.

• Camsense is fundamentally a provider of spatial sensing solutions for the intelligent robot field. Its core focus is to offer “eyes” for intelligent devices such as vacuum cleaners 
• Downward trend in prices is driven by strong bargaining power of downstream customers.When they squeeze profits upward to upstream suppliers to compete for terminal market share, Camsense has little countermeasures
• As a consumer-grade LiDAR supplier with relatively weak profitability and narrow application scope, reasonable P/S should be lower than peers. Comfortable range could be 2.5-3.5x P/S, based on 2026 forecast. 

• Kinwong Electronic launched IPO to raise HK$ 5.1B. Company is a PCB manufacturer providing connectivity infrastructure for global customers in automotive electronics, telecommunication & data, smart devices, industrial control etc.
• Kinwong Electronic intends to use the proceeds for research and development, expanding production capacity, repay borrowings, working caital and general corporate purpose.
• Given the overall industry dynamics and company’s focus on cost optimization, price competitiveness and high margin products we can expect a sustained incremental demand scenario in near to medium term.

• XREAL Ltd (XREAL HK) is looking to raise up to US$400m in its upcoming Hong Kong IPO.
• It operates a leading global augmented reality (AR) eyewear company.
• In this note, we look at its past performance and other deal dynamics that might impact the listing.