China

• RoboTechnik Intelligent Technology (RBTK HK) is looking to raise up to US$662m in its upcoming Hong Kong IPO.
• 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 examine the IPO dynamics, and look at the firm’s valuation.

• Legend Holdings (3396 HK) is seeking to offload its 90% stake in Banque Internationale à Luxembourg for ~HK$23bn.
• Preceding my comments on Legend and Lenovo (992 HK) are the current setup/unwind tables for Asia-Pacific Holdcos.
• These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

• G5 reaches mass production at 11.95nm active-area half-pitch, with ≥50% more gross dies/wafer and two 24Gb LPDDR5X products.
• G5 is unlikely to move FY26 earnings, but 2027 capacity growth could accelerate commodity DRAM pricing normalisation into 2H27.
• Maintain BEARISH/REDUCE: RMB31.40 FV is 44.9% below spot; use G5-driven strength to reduce exposure.

• Ligent, a China-based manufacturer of optical transceivers and optical network terminals, raised HKD 5,445m (USD 694m) from its global offering and will list on HKEX on Tuesday, September 22, 2026.
• In our previous note, we looked at the deal terms and the company’s valuation.
• In this note, we provide an update for the IPO before its trading debut.

• RoboTechnik, a photovoltaic and silicon photonics manufacturing equipment maker, launched its IPO to raise USD 660m through an A+H listing. Huatai, Citi, and Orient Capital are the deal sponsors.
• In this note, we look at the deal terms and provide our thoughts on valuation for the company.
• We analyze reference A+H transactions, cornerstone and sponsor performance and assess the risk-reward of the deal.

• Kinwong, a PCB maker, launched its IPO to raise USD 650m through an A+H listing. CITIC, BOA, and Guolian are the deal sponsors.
• In this note, we look at the deal terms and provide our thoughts on valuation for the company.
• We analyze reference A+H transactions, cornerstone and sponsor performance and assess the risk-reward of the deal.

• Sa Sa (178 HK)‘s positive profit alert suggests net profit will reach HK$150m in 1H FY26/27, equaling a 2x YoY increase, ahead of the consensus. 
• 2H net profit has been historically better than 1H, meaning the market’s full-year forecast of HK$277m provides room for an upgrade. The Jul retail sales trend also supports this.
• Despite a 106% YTD rally, its 2.7x 12-month P/B is only slightly above average. With an ROE of 21-24% and net cash of HK$0.16, valuations remain not stretched.

• Shenzhen Kinwong Electronic (KNWNG HK) is looking to raise up to US$650m in its upcoming Hong Kong IPO. 
• Kinwong is a leading global printed circuit board (PCB) provider with a comprehensive product portfolio spanning rigid PCBs (RPCBs), flexible printed circuits (FPCs), and other specialized PCBs.
• In this note, we examine the IPO dynamics, and look at the firm’s valuation.

• RoboTechnik Intelligent Technologies launched Hongkong IPO to raise HK$ 5.2B. They are a global provider of manufacturing equipment and systems for photovoltaic (PV) industry and silicon photonics (SiPh) industry.
• RoboTechnik Intelligent Technologies intends to use the proceeds for R&D, innovation, expanding production capacity, business promotion, strategic investments and/or acquisition and for general corporate purpose.
• RoboTechnik’s strong R&D capabilities and enhanced focus on intelligent SiPh manufacturing equipment, coupled with strong demand outlook make this issue worth for investors, especially those with a long-term focus.

• HSI remains well below its August high despite a relatively modest weekly decline, while breadth across the optionable universe stayed soft.
• MiniMax dominated option trading throughout the week, accounting for much of the activity among the busiest contracts.
• Index implied volatility has firmed during September but remains subdued on a longer-term basis as the single stock spread continues to normalize.

• Transwarp Technology (688031 CH) , an AI infrastructure software provider, raised US$88m in its H-share listing.
• Transwarp Technology (Shanghai) Co (TTC) is an AI infrastructure software provider in China. TTC enables enterprises to build AI infrastructure software that drives intelligent transformation and business model innovation.
• We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the trading dynamics.

• 2026 A+H IPOs have punished day-one buyers: Luxshare, Innolight and Longsys all closed below issue despite discounts of 13–44%.
• RoboTechnik’s photonics inflection is real, but FY27E at 372x EPS leaves almost no fundamental valuation support.
• Investment positioning: bid only at ≥30% discount, size for a weak open, stop at CNY545 and exit around Southbound eligibility.

• 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, National Stock Exchange (NSEIN IN) managed to garner interst from a long list of anchor investors, while GCash (Mynt) is said to be planning to launch.
• On the placement front, Tencent (700 HK) continues to trim its investment portfolio.

• Policy Pivot: The 2026 Policy Address prioritizes long-term supply and public housing, heavily favouring Northern Metropolis infrastructure over short-term mass-market property stimulus.
• Sector Impact: Mass-market buyers struggle under 50% DSR caps, while luxury inventory and commercial landlords benefit from targeted capital migration and stable yields.
• Actionable Trade: Buy Henderson Land (0012.HK). Its 45m sq ft agricultural land bank captures massive Northern Metropolis monetization, unlocking deep Sum-of-the-Parts value.

• 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: Meta, Hitachi Ltd, SK Hynix  Most oversold: Meituan, ICICI Bank, HKEX and Clearing, Ping An Insurance, Contemporary Amperex Technology (CATL), Komatsu, Hanwha Solutions, Zijin Mining, Shin Etsu Chemical

• Zhejiang Jingxin Pharmaceutical is a group focused on CNS, cardiovascular, and cerebrovascular diseases, generating revenue from drugs, APIs, medical equipment, seeking a primary HKEX listing.
• Sole approved innovative drug, Dimdazenil, launched in 2024 for insomnia. Operates eleven manufacturing facilities, with largest customer accounting for 17.2% of revenue.
• Revenue was RMB4,069,361 and profit RMB771,731 in 2025. Profit for the period decreased by 10.0% to RMB358.0 million (six months ended June 30, 2026).

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• Junshi Biosciences (1877 HK) reported stellar performance for 1H26, with the company reporting its maiden net profit. Steady revenue growth of toripalimab led to breakthroughs in revenue and profit.
• Tuoyi is reporting increasing revenue in China, driven by continued expansion of indications and NRDL coverage. 2Q26 represents 11th consecutive quarter of sequential revenue increase for Tuoyi.
• Continued clinical advancement of core pipelines, including bispecific antibody candidate, JS207 and ADC candidate, JS212 with strong clinical trial data for various types of solid tumors enhance visibility beyond toripalimab.  

• Engineered Unit Economics: Moonshot AI’s widely publicized $1 billion ARR in August 2026 is highly synthetic, heavily reliant on “barter ARR” and non-cash cloud credit offsets from strategic investors like Alibaba and Tencent. Strip out these subsidized credits, and the true cash-generative ARR is estimated to be closer to $250 million to $300 million.
• Unviable Cost-to-Serve: The launch of the massive 2.8-trillion-parameter Kimi K3 in July 2026 has pushed Moonshot’s monthly cash burn to an unsustainable $120 million to $150 million. Gross margins are heavily depressed in the mid-30% range due to reliance on domestic hyperscaler clouds for compute.
• The Blacklist Race: The confidential Hong Kong IPO filing on September 2, 2026, represents an existential race against time. Moonshot is rushing to secure its $3 billion raise before impending US Treasury sanctions—sparked by proven, systematic model distillation campaigns against Anthropic’s Claude—force global institutional investors to divest.

• The space for new franchise projects in regional markets is becoming saturated. Junxin has almost achieved full coverage in Hunan, and the growth space of domestic stock market is limited.
• Ahead of Junxin’s development path lies both vast market space and unknown obstacles. 2026 will be a crucial year for testing Junxin’s strategic choice. High dividend is attractive to investors.
• Junxin’s overseas projects are still in the development stage and it will be difficult to generate substantial profits in short term. Valuation support mainly relies on the domestic core business.

• Moonshot AI has filed confidentially in Hong Kong for a US$3-5bn IPO and is marketing a US$50bn pre-IPO round, up fivefold since February on nine weeks of Kimi K3.
• Reported ARR passed US$1bn in August, but the method is undisclosed; US$50bn needs US$1.8bn of trailing-month ARR, or FY28E revenue of US$2.8-3.3bn, to clear our line.
• Our pre-committed discipline: participate at or below 28x trailing-month ARR, token allocation at 29-35x, avoid above 35x; gross margin, burn, compute and customer concentration are the prospectus tests.

• Ligent Technologies (9856 HK), a leading optical transceiver and chip maker serving the data center market, will IPO on September 22nd.  The company will raise HK$5.67 billion.
• The optical transceiver market is projected to grow at a 40.6% revenue CAGR from 2025–2030, driven by adoption of 800G/1.6T modules in AI data centers.
• Although the US is reportedly considering a ban on imports of new models of Chinese optical transceivers, expanding capacity for US-based transceiver companies would take years and significant capital.

• Full Truck Alliance showed strong improvement in core margin in Q226 due to mix change
• We believe the company’s rate of top-line growth could begin to accelerate by end of H226
• At ~12x FY26 EPS and featuring a 4% dividend yield, shares appear attractive below US$9

• As reported by Brian FreitasBaidu (9888 HK) was added to the CSI Hong Kong Connect Internet Index at the close of trading on September 18, 2026.
• Baidu has been downtrending since mid-January 2026 when it peaked at 161.20. Closed this week at 87.20, a -45% drop in price, and the lowest price reached this year.
• The stock is oversold in our view, and getting close to the 73 price zone floor that has been historically a solid support since 2021. Tactical positioning could be rewarding.

• 17 Education & Technology Group Inc. is a leading AI-enabled education technology company in China that provides digital teaching, learning, and assessment solutions to education authorities, schools, teachers, students, and parents.
• Over its nearly 15 year history, the Company has built a large network of school, teacher and end users, along with an expanding proprietary data set generated by in-school and on-platform activities.
• YQ markets its AI platform and complementary hardware across three connected customer groups, including Government Agencies (G-end), Schools and Educational Institutions (B-end), and Direct to Consumer (C-end).

• Deleveraging takes absolute priority over asset-holding: While New World Development (NWD) averted immediate liquidity pressure with its HK$88.2 billion debt refinancing and the HK$20 billion perpetual security exchange, its structural debt remains severe with net debt rising to HK$122.7 billion and net gearing reaching 59.7% as of late 2025.
• Drastic structural exits replace traditional ownership: The proposed Shanghai Stock Exchange (SSE) REIT spin-off of the Shanghai Hong Kong New World Tower via GF Fund Management, combined with active negotiations to pay an exit fee to terminate the HK$1.8 billion annual lease obligation at 11 Skies, demonstrates that management is prioritizing cash-flow protection over long-term premium branding.
• Institutionalization under Echo Huang: The removal of Adrian Cheng from the board and the appointment of Echo Huang as CEO has restored credibility with onshore and offshore bank consortiums. However, execution friction remains as professional managers struggle to clean up legacy joint-venture debt and reconcile strategic decisions with the Cheng family’s private investment vehicle, Chow Tai Fook Enterprises.

• Small GPU Compute Contract Launches.
• On the conference call, management disclosed that the 3MW infrastructure buildout at its Georgia facility was completed and the containers and GPUs have been arriving on site and being installed.
• All 3MW of EcoHash’s capacity is being allocated to bare metal GPU services, with colocation still to come, however not all GPUs to fill the 3MW have been purchased.

• Geographic margin divergence is the core driver of Hai Robotics’ path to profitability. Brutal domestic price wars with rivals like Hikrobot and Quicktron have suppressed domestic gross margins to 20.8% in FY2025, forcing the company to pivot rapidly toward international markets. In contrast, non-domestic gross margins reached 46.9% in FY2025, which represents the real economic engine for the firm.
• Hardware commoditization has shifted the competitive battleground entirely to software, fleet optimization, and specialized structural innovations. Standard box-handling (HPS1) has been commoditized, forcing a pivot to the hook-based HaiPick System 3 (HPS3) and the 15-meter single-sided climbing “Climb” series to unlock higher density, while multi-agent scheduling software acts as the primary barrier against domestic fast-followers.
• Operating cash burn and working capital cycles represent the most acute threats to the company’s pre-IPO runway. Despite scaling revenue to RMB 2,016.94 million in FY2025, Hai Robotics is highly capital-constrained, burdened by a cumulative loss of RMB 3.523 billion from 2023 to 1H2026 and severe working capital strains due to extended payment milestones and inventory accumulation.

• My base case valuation of Ligent Technologies is HKD45.6 per share, representing 38.3% higher than the IPO offer price.
• I used four comps including Zhongji InnoLight (3308 HK), Yangtze Optical Fibre and Cable (6869 HK), Cowell e (1415 HK), and Eoptolink Technology (300502 CH) to value Ligent Technologies.
• My base case valuation of HKD45.6 per share which is based on a P/E of 24.1x is at a 20% discount to the comps’ average P/E valuation in 2027.

• Skyworth’s monthly update confirms there has been “no substantial update since the Monthly Update Announcement dated 17 August 2026” and that it is “still preparing the listing application.” 
• Skyworth is behind on every precedent’s filing milestone; the lack of proof of filing Skyworth Photovoltaic’s application (AP) is now the standout red flag.
• The delay could reflect unusually complex documentation or a sector policy risk resulting in informal regulatory discouragement before formal filing. Caution is warranted until the AP is filed. 

• Ligent Technologies is getting ready to complete its IPO in Hong Kong in September. Ligent Technologies seeks to raise about HK$5.67 billion ($723 million) in a Hong Kong IPO. 
• Ligent has offered 172 million shares at an offer price of HK$32.96 apiece. The company has already received $340 million from cornerstone investors, or 47% of the base share sale.
• Ligent ⁠makes optical transceivers, optical chips and network terminals used in data centres, cloud computing and telecommunications networks.

• RoboTechnik, a photovoltaic and silicon photonics manufacturing equipment maker, is seeking an A+H listing. Huatai, Citi, and Orient Capital are the joint sponsors.
• We look at the company’s two core segments, silicon photonics equipment and PV manufacturing solutions.
• We discuss our preliminary thoughts on the company’s valuation based on the A-H premium.

• Hai Robotics, a warehouse picking robot solution provider, has filed its prospectus with the HKEX. GS and CITIC are the joint sponsors.
• We look at the company’s core segments: the distribution domain and the manufacturing domain.
• We then look at the company’s financial profile, loss-making status, pre-IPO valuation and investor backing.

• Embattled property developer New World Development (17 HK) has proposed the spin-off and separate listing of a REIT on the Shanghai Stock Exchange.
• The spin-off comprises the mixed-use property (comprising Shanghai K11 Art Mall and Shanghai K11 ATELIER NWT), one of NWD flagship PRC assets.
• Trading at a trailing P/B 0.074x. That pretty much says it all. The impact from the spin-off, if completed, will be minimal. This remains an avoid. 

• As AI training clusters continue to expand, data will flow at high speed between servers/switches/cabinets/clusters.Optical connection system was brought to forefront. ADTEK is precisely positioned at this system-level bottleneck position
• The underlying logic behind fluctuations in performance is that the growth rate of ADTEK’s performance is highly positively correlated with the pace of global construction of ultra-large-scale AI data centers.
• There’re uncertain factors regarding whether current explosive growth can be sustained.Conservative scenario (based on 2026 forecast) is 18-21x P/E, which is a buying range with a relatively high safety margin.

• Ligent Technologies (9856 HK) is an optical communication and connectivity products provider. It is seeking to raise US$723 million at HK$32.96 per share.
• I previously discussed the IPO in Ligent Technologies IPO: The Investment Case. 
• In this note, I present my forecasts and valuation. My analysis suggests that the IPO price is attractive.

• Our 2021 demographic and capacity-growth thesis largely worked, but property-led expansion introduced multi-year lags between capital deployment, occupancy maturation and earnings.
• FY03/2026 headline ROIC is roughly 6.8%; removing property revaluation noise lifts it to 8.1%, while occupancy normalization suggests roughly 9–10%.
• That narrows our original forecasting error but does not erase it: even seasoned-capital returns around 10–11% remain below our former 20% hurdle.

• As expected, a SAMR investigation depressed top-line growth and profitability in Q226 
• Management offered no forward guidance on earnings call, but hinted at headwinds to come
• We believe it may take a few quarters for Trip.com to regain momentum

• RoboTechnik’s fundamentals are currently in a stage of “strong story but weak profits”. The SiPh equipment sector has sufficient market appeal, but the profit scale is still small
• Based on 26H1 explosive growth of optoelectronics business, significant jump in profitability in 26Q2, and the 2.452bn yuan in-hand orders for optoelectronics, the forecast needs to be systematically revised upwards
• Considering the growth potential of RoboTechnik (with a projected CAGR of 100+% in net profits from 2026 to 2028), 35-45x P/E based on 2027 forecast could be a comfortable range

• MFI also plans to apply for a specialized regulatory license from the Bermuda Monetary Authority (BMA) in order to operate a digital asset-denominated direct life insurance business aimed at helping digital asset holders protect, grow and transfer their digital wealth.
• The company is optimistic about this initiative.
• If it obtains the new insurance license, management believes its targeted expansion into the digital asset insurance sector aligns with its strategy to diversify within regulated digital asset services and holds substantial potential.

• First-mover premium in the ACR (Autonomous Case-handling Robots) segment is eroding rapidly as hardware commoditizes: While Hai Robotics holds a dominant 32.8% global ACR market share by revenue as of 2025, the transition from niche pioneering to high-volume commercialization is sparking a severe price war. Competing tote-to-person systems, such as Geek+’s recently launched RoboShuttle Hyper climbing solution and Quicktron’s alternatives, are squeezing hardware pricing power globally.
• The gross margin expansion is real but structurally disconnected from cash profitability: Hai’s gross margin improved from 16.0% in 2023 to 31.2% in 2025, and reached 34.4% in the first half of 2026. This was achieved by standardizing products—specifically the HPS3 system, which rose to 54.3% of H1 2026 revenue—and reducing the share of custom-engineered HPS1 systems. However, this improvement has been entirely neutralized by steep localization, installation, and compliance costs overseas, leading to a massive cumulative net loss of RMB 3.523 billion from 2023 to H1 2026.
• The September 13, 2026 Hong Kong IPO refiling is an urgent liquidity play: After its initial February 2026 filing lapsed in August, the company’s immediate refiling three days ago underscores its critical balance sheet pressure. As of June 30, 2026, Hai carries RMB 4.371 billion in net liabilities and a worsening operating cash outflow of RMB 360 million in the latest half-year. Operating cash-flow breakeven is unlikely before late 2027 under current overseas execution models.

• Eoptolink Technology (300502 CH) one of the world’s largest optical transceiver manufacturers, aims to raise over >US$3bn in its H-share listing.
• Eoptolink was one of the global leaders in 2025 in optical modules, with its products being in high demand for data centers.
• We have looked at the company’s past performance and undertaken a peer comparison in our earlier note. In this note, we will talk about valuations.

• Tencent Captive Loop Moat and Trap: Enflame is fundamentally a captive supplier for Tencent, which accounted for 83.79% of its 2025 revenue and holds a 17.95% post-IPO stake. While this guarantees a high baseline of volume deployment, it structurally strips Enflame of pricing power, resulting in gross margins of 31.8% to 32.7%—massively lagging independent peers like Moore Threads (56.95% gross margin) and Cambricon (55.25%).
• Slowing Gen-4 Testing & Bleeding Edge Access: Enflame’s fourth-generation architecture testing is facing delays because of foundry and advanced packaging constraints. The company is forced to run tape-outs of downgraded designs or pivot entirely to domestic mature-node nodes, which severely degrades training-efficiency metrics. This makes the upcoming Gen-5 launch (slated for 2027) and Gen-6 launch (2029) highly dependent on the IPO proceeds of 6.12 billion yuan.
• Severe Software Friction and High Migration Costs: Enflame’s TopsRider software stack is significantly less mature than Huawei’s CANN or NVIDIA’s CUDA. Outside of Tencent’s customized engineering environments, customer migration costs remain prohibitively high for the general enterprise market. This is capping Enflame’s real-world market share at a mere 1.7% of China’s domestic AI accelerator shipments, compared to NVIDIA’s 55% and Huawei’s 20%.

• STAR 50 and STAR 100 are tech-focused, blue-chip indices in Mainland China which track the largest names in the STAR market of the Shanghai Stock Exchange.
• In this insight, we look at the potential ADDs/DELs for the STAR50/STAR100 indices for the December 2026 index rebal event.
• We expect around US$3.9bn combined one-way flows for STAR 50 and STAR 100 during the December 2026 index rebal event.

• The screen isolates eight Hong Kong-listed companies with a five-year average ROCE above 15% (median 33.0%), spanning exchanges, medical aesthetics, toys, apparel, and networking hardware.
• Capital efficiency converts into cash: all eight have paid dividends every year since FY20, with a median trailing yield of 7.7% and cumulative payouts near half the average share price.
• Valuations remain undemanding: six of eight trades trade below 11x earnings and 6x EV/EBITDA, leaving Taste Gourmet, JNBY, and Dream International the best risk-reward.

• Xiaoxiang Supermarket expanded its footprint from 55 to 68 cities.
• Revenue growth rebounded to double digits After three sluggish quarters.
• The gross margin continued to recover, while marketing expenses has subsided.

• Strong structural demand for high-end computing PCBs (particularly AI and general-purpose servers) has driven Delton Technology’s exceptional H1 2026 financial performance, with revenue surging 80.98% to RMB 4.39 billion and net profit rising 94.39% to RMB 956 million. Server-related products now account for ~90% of total revenue.
• The Thailand manufacturing facility has emerged as a major profitability driver, generating RMB 165 million in net profit in H1 2026 alone. High capacity utilization (85%+) and premium pricing for “China+1” orders have accelerated payback periods to approximately 3.5 years, outperforming domestic expansions.
• To sustain aggressive high-end capacity expansions, Delton is executing a highly capital-intensive strategy with projected annual Capex of RMB 5 to 6 billion for both 2026 and 2027. This is funded by the recent HKD 3.31 billion Hong Kong IPO in March 2026 and a proposed RMB 3.6 billion A-share convertible bond issuance up for shareholder vote at the September 24, 2026 EGM.

• 1H26 adjusted EBITDA +1%, Q2 -5%; every gaming volume line fell and hold carried the quarter. We cut FY26E EBITDA 9% to HK$14.3bn, our initiation bear case.
• Filings show 1H26 capex of HK$1.25bn against a HK$10–11bn guide since halved; Phase 4 slips to FY28E. Net cash HK$35.9bn and payout at 75% got stronger.
• BULLISH, fair value HK$37.00 maintained on 8.3x FY27E EV/EBITDA plus net cash; +13% upside, ~19% TSR. Buy the September shoulder ahead of typhoon-hit comps and Golden Week.

• RoboTechnik Intelligent Technology (RBTK HK) , 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 PHIP updates, peer comparison and valuation.

• Eoptolink Technology (300502 CH) one of the world’s largest optical transceiver manufacturers, aims to raise over >US$3bn in its H-share listing.
• Eoptolink was one of the global leaders in 2025 in optical modules, with its products being in high demand for data centers.
• We have looked at the company’s past performance in our earlier note. In this note, we will undertake a peer comparison.

• Hunan Junxin Environmental Protection (HJXEP HK) , a waste treatment company, aims to raise around US$400m in its H-share listing.
• Hunan Junxin Environmental Protection (HJEP) operates in the solid waste treatment and green energy sectors, specializing in integrated waste treatment and resource utilization projects.
• In this note, we look at the firm’s PHIP updates and valuation.

• Circular “Asset Carousel” Cash Drains: In late 2023, KFM Kingdom structured a highly controversial transaction where the listed company acquired a 70.0% stake in Kingdom Precision Science and Technology (KPST) from the parent, KIG Real Estate, for HK$168.0 million. KIG subsequently used HK$135.0 million of this cash to execute a private buyout of Massive Force’s 75.00% controlling stake in KFM at HK$0.30 per share. This represents a classic “carousel” mechanism where minority shareholder cash effectively financed the founders’ corporate consolidation.
• Speculative Premium vs. Tangible Asset Reality: As of September 15, 2026, KFM’s stock is suspended at HK$4.54, representing a ~700% year-to-date run-up driven by takeover speculation. However, this implies an astronomical 4.4x book value multiple against KFM’s actual book value of HK$1.14 per share, and a P/E of 33x on cyclical peak earnings of HK$83.63 million. Any imminent transaction is highly likely to be structured as a massive “takeunder” priced closer to tangible assets of HK$0.91 to HK$1.14 per share.
• Impassable Regulatory Float Hurdles: Under Rule 26.1 of the Hong Kong Takeovers Code, any block trade representing KIG’s 75.00% stake will trigger an unconditional Mandatory General Offer (MGO). Because public float is currently at the absolute regulatory minimum of 25.00%, a single public acceptance under the MGO will drop public float below the 25.0% threshold, triggering automatic suspension or requiring an immediate, dilutive placing-down process.

• Hai Robotics Innovation Group is a global leader in warehouse automation, specializing in ACR solutions for picking, aiming for flexible, fully autonomous operations in warehouses and factories.
• Hai Robotics was the world’s largest ACR solution provider in 2025, with a footprint in over 40 countries and regions globally.
• Revenue increased from RMB807,007 thousand in 2023 to RMB2,016,936 thousand in 2025, with gross profit margin reaching 34.4% by June 30, 2026.

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• Ligent, a China-based maker of optical transceivers and optical network terminals, launched its Hong Kong IPO to raise USD 723m. Citi and CITIC 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.

• Last week, Lotus Horizon (6063 HK) followed in fellow-contractors WK Group (2535 HK) and Superland Group Holdings (368 HK)‘s footsteps, whereby the controlling family exited, triggering an unconditional (massive) takeunder. 
• Now contractor KFM Kingdom (3816 HK) is suspended pursuant to the Hong Kong Code on Takeovers and Mergers. Its share price is up ~700% since January.
• Controlling shareholders exiting given protracted headwinds for Hong Kong’s private residential and commercial property markets makes sense. Less clear are these irrational price movements before a deal is struck.

• Same 26–27% upside, different entry: MiniMax sits at its July placing price with an MSCI bid in 11 weeks; Z.AI is 11% above Friday’s placing with a Sep-27 CB binary.
• MiniMax’s 17.9% 1H26 gross margin is printed and priced; Z.AI’s decisive number — the 2H26 margin that separates near-breakeven from a RMB4.5bn profit — is six months away.
• BULLISH MiniMax (FV HK$340), NEUTRAL Z.AI (FV HK$1,000), 56% and 40% below the street. Prefer MiniMax; hedge funds should own Z.AI’s convertible, not its equity.

• Tencent (700 HK) (via Image Frame Investment) aims to raise around US$287m via selling a part of its stake in Kanzhun (2076 HK).
• Kanzhun is a Nasdaq and Hong Kong-listed Chinese job listing portal. Kanzhun runs BOSS Zhipin APP.
• In this note we talk about the deal dynamics and run the deal through our ECM framework.

• Delton Technology (1989 HK) raised US$$423m in its March 2026 Hong Kong IPO, with the IPO being offered at a fixed price of HKD 71.88/share.
• It is a leading manufacturer of customized printed circuit boards (PCBs) for high performance servers and other computing applications.
• In this note, we will talk about the lockup dynamics and possible placement.

• Ligent Technologies (9856 HK) is looking to raise about US$723m in its upcoming Hong Kong IPO.
• It develops, manufactures and sells optical transceivers, optical chips and optical network terminals.
• In this note, we examine the IPO dynamics, and look at the firm’s valuation.

• CSI 1000 represents the next 1000 largest stocks by market cap and liquidity from the Shanghai and Shenzhen Exchanges after CSI 800.
• In this insight, we take a look at the potential ADDs and DELs leading the race for the semiannual index rebal event in December 2026.
• Currently, we continue to see 100 ADDs/DELs for the CSI 1000 index.

• CSI 300 represents the 300 largest stocks by market cap and liquidity from the Shanghai and Shenzhen Exchanges. CSI 500 is the next 500 names.
• In this insight, we take a look at the potential ADDs and DELs leading the race for the semiannual index rebal event in December 2026.
• Currently, we see 30 ADDs/DELs for the CSI 300 index and 50 ADDs/DELs for the CSI 500 index. These are the maximum number of changes allowed per review.

• ChiNext and ChiNext 50, respectively, represent the top 100 and top 50 A-share stocks listed on the ChiNext Market of the Shenzhen Stock Exchange.
• We expect 7 changes for the ChiNext index and 5 changes for the ChiNext 50 index in the December 2026 index rebal event.
• The ChiNext and ChiNext 50 index rebal events could trigger US$417mn and US$263mn in one-way flows respectively.

• Ligent Technologies launched Hongkong IPO to raise HK$ 5.7B. They are global optical communication, connectivity product provider that develops, manufactures and sells optical transceivers, optical chips and optical network terminals.
• Ligent Technologies intends to use the proceeds for research and development, expanding production capacity, business promotion, strategic investments and/or acquisition and for general corporate purpose.
• Ligent’s operational capabilities, technological prowess, reasonably strong product portfolio and global market presence, coupled with a more stable demand outlook does make this issue fundamentally worth for investors.

• 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), Z Fin (1168 HK), Tourism Holdings (THL NZ), OFX Group (OFX AU), Cleanaway Waste Management (CWY AU), Atlantic Lithium (A11 AU). 
• Lowest spreads: Kakaku.com Inc (2371 JP), FleetPartners Group (FPR AU), Accent Group (AX1 AU), Vault Minerals Ltd (VAU AU), Japan Property Management Center (3276 JP), Albis Co Ltd (7475 JP). 

• STAR50 rebalance will be effective on 14 Sep 2026 before market open, with 5 ADDs and 5 DELETEs.
• Four of the five ADDs gained at the post-announcement open, and all five then fell over the rest of the bridge. AVIC Chengdu UAS was the only DELETE to gain.
• Historically, ADDs with a negative bridge averaged higher first-week returns than ADDs with a positive bridge. DELETEs with a negative bridge mostly kept falling in the first implementation week.

• Stock trades at .3 x P/B, Cash on books is .38 cents per share, and Liquidation Value is .64 cents ( Net Current Assets less all liabilities is .64 cents.
• Manufacturing business is the main business, and the company has blue-chip customers but not much pricing power.
• The retail business has a chequered history, and the property value per share is 40 cents per share. Dividend Yield is 7%

• ENN Energy (2688 HK)‘s 1H26 results demonstrated that, even without ENN Natural Gas (600803 CH)‘s privatisation, its fundamentals remain solid. 
• Its gross margin decline has stabilised; with cost control initiatives, the FY26 earnings will stay healthy. Upside will come from improvement in the IE and smart home segments.
• At 7.6x PER for FY26 and FY27, it is among the cheapest in the HSI and the gas utilities sector. Its P/B is now over 1SD below average. 

• SHEIN listed on the HKEX Main Board on 1 Sep 2026, and we work out entry timing for HSCI, HSI, HSCEI, HS TECH, Stock Connect and MS-China.
• HSIL confirmed the HSCI ADD after the 14 Sep 2026 close on 2 Sep, and a 2.3% FF holds MS-China and HSCEI entry until the 28 Feb 2027 lock-up expiry.
• The December 2026 HSI review is the first cycle SHEIN can enter, and Southbound inclusion follows the WVR rule of six months plus 20 trading days on 31 Mar 2027.

• Insilico Medicine (3696 HK) has risen since its 1H26 earnings announcement.  The company’s rentosertib drug reversed biological aging markers in its Phase IIa trial.
• Rentosertib holds a singular distinction: it is the first end-to-end AI-discovered and AI-targeted drug to reach Phase III clinical development globally.
• The China CDE permitted a direct jump from Phase IIa to Phase III based on efficacy data, an unusual regulatory concession.

• ASR Microelectronics is a fabless semiconductor platform company, a market leader in cellular connectivity chips, ranking No. 1 globally in 2025.
• ASR Microelectronics ranked No. 1 globally in cellular connectivity chip market by shipment volume in 2025 with 37.8% market share.
• ASR Microelectronics reported a loss of RMB390,285 for 2025 and a profit of RMB84,244 for six months ended June 30, 2026.

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• In this insight we update readers on new developments affecting SHEIN, Temu, AliExpress
• New laws and ongoing investigations are likely to raise the cost of operating in the EU
• We expect to hear about important legal milestones in the coming weeks – stay tuned!

• Revenue grew by 230% YoY in 2Q26 with gross margin up to 66% from 37% in 2Q25.
• Chip giants pursue high-margin HBM and leave the niche DRAM market behind.
• GigaDevice is the only fabless company that focus on niche DRAM.

• 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, Shenzhen Longsys Electronics (9976 HK) didn’t do much at listing and had one of the lowest institutional coverage ratios yet for large A/H listings.
• On the placement front, the week wasn’t as busy but we did look at a few deals and upcoming lockups.

• Transition to “Token Economy” is complete but risky: Z.AI has successfully pivoted its business model from high-margin customized on-premise installations to public API token delivery, with API revenue surging to 86.5% of the mix in H1 2026. However, this shifts the battleground entirely to compute economics and exposes the firm to intense margin pressure.
• The USD 2.4 billion ARR target is heavily concentrated: While Z.AI’s end-of-year target of $2.4 billion in ARR appears technically achievable on current run-rates, over 31% of this revenue is concentrated in just two major customers. This creates immense churn and structural pricing risk as those clients build out their own internal capabilities.
• The USD 5 billion capital raise is a compute-survival play: The dual tranche financing launched on September 11, 2026—comprising a $2 billion share placement and $3 billion in zero-coupon convertible bonds—is driven entirely by the urgent need to fund a massive domestic GPU infrastructure pivot, as U.S. export blacklists restrict access to leading-edge global silicon.

• ARR surged 6× in five months, with token volume up 40× and API ASP up 101% — evidence that Z.AI has achieved genuine production-scale demand.
• Domestic compute is becoming a potential structural advantage, but customer concentration and a 30% FY28E gross margin keep earnings power unproven.
• NEUTRAL, HK$1,000 FV, based on 15× FY28E EV/sales plus net cash; we need >28% 2H26 gross margin to turn bullish.

• Guangdong Mic-Power New Energy Co., Ltd. provides integrated, high-performance, safety-enhanced mini-size lithium-ion batteries for wearable devices, smart medical devices, and portable energy storage.
• Revenue increased by 51.7% to RMB532.9 million in 2024, while net profit grew 755.0% to RMB58.1 million in 2024.
• For the six months ended June 30, 2026, revenue was RMB337,163 thousand and profit for the period was RMB26,345 thousand.

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• NetEase, Inc. reported steady financial and operational performance for the second quarter of 2026, with total net revenue reaching RMB 30.1 billion (USD 4.4 billion), driven predominantly by its games business.
• The company’s games and related value-added services (VAS) generated RMB 25 billion in net revenues, reflecting a 10% year-over-year increase, despite a 2% sequential decline attributed primarily to certain self-developed and licensed titles.
• This growth was supported by a diverse portfolio spanning original IPs, live operations, and innovations such as the recent launch of Sea of Remnants in China and new content updates to established games like Sword of Justice, Identity V, and the NARAKA: BLADEPOINT franchise.

• PDD Holdings, Inc. reported steady revenue growth in the second quarter of 2026 amid ongoing investments in platform governance, supply chain enhancement, and broader ecosystem support.
• Group revenue rose 8% year-over-year to RMB 112.4 billion, driven primarily by an increase in transaction service revenues, which grew 13%.
• However, net income declined 12% year-over-year to RMB 27.2 billion, influenced by elevated investment levels in platform improvement and industry ecosystem development.

• Trip.com will finally report Q2 results after the US close on Tuesday, September 15
• Earlier investigation, now concluded, was likely a drag on growth & earnings in period
• Management commentary could indicate pace of recovery from Trip.com’s latest stumble