China

• Shein is actively preparing for an IPO on the Hong Kong Stock Exchange, tentatively scheduled for the second half of 2026.
• The company is targeting a listing valuation of US$40 billion to US$50 billion, representing a significant haircut from its historical peak valuations.
• I think the company is likely to face tough challenges in in reaching valuation at even lower end of its target valuation range. 

• SHEIN, a global online fashion and lifestyle retailer, has passed the HKEX listing hearing. GS, MS and JPM are joint sponsors.
• In our previous note, we briefly looked at the company’s business, financials and investor backing.
• In this note, we compare the company with listed peers from financial, operating and valuation perspectives.

• Context: Tencent (700 HK)will announce H1 2026 results on 12 Aug, with 14 Aug options providing direct exposure to the earnings event.
• Highlight: Historical earnings-day moves have been modest in absolute terms but remain above the current option-implied move, despite realised and implied volatility sitting near the top of their historical ranges.
• Why Read: Gain insight into Tencent’s earnings-day price history, option-implied move, volatility term structure, and trade implications around straddles and calendar spreads.

• Despite its recent rally, Meituan (3690 HK) still lags the HSI YTD. For FY26-27F, it will be the sector’s main growth driver. Its P/B is 1SD below the 5-year average.
• It is disciplined in AI investments, focusing on operational efficiency, cost control, new business capabilities, and long-term strategic positioning. 
• Its portfolio of investments equals 9.5% of market capitalisation, and includes high-profile names like Moonshot AI (MOONSHOTAI HK), Unitree Robotics (UNITREE CH), etc.

• Amos Food, a Chinese sugar confectionery maker, has filed its prospectus with the HKEX. BOA, CMS, and JPM are the joint sponsors.
• We look at the company’s core segments: Amos, Biobor and third-party brands.
• We think the deal is not interesting. Revenue growth and margin expansion prospects are outweighed by large concentration risk, geopolitical risk and weak consumer-sector sentiment.

• JL MAG is a global market leader in high-performance Neodymium-Iron-Boron (NdFeB) permanent magnets, critical components for rapidly growing sectors like new energy vehicles (NEVs), wind power, and energy-efficient appliances.
• The company’s strategic position is reinforced by long-term supply agreements with key Chinese rare-earth suppliers and a vertically integrated production process, which provides a competitive advantage in a geopolitically sensitive industry.
• Financial performance is intrinsically linked to the volatile prices of rare-earth raw materials, which can cause significant margin fluctuations. However, the strong secular demand from electrification and green energy provides a robust long-term growth outlook.

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• Pioneering Chinese AI with a Focus on Large Context Models: Moonshot AI has rapidly emerged as a leading AI research lab in China, distinguished by its development of large language models (LLMs) with extensive context windows, such as its flagship Kimi chatbot. This technical specialization allows for the processing and analysis of vast amounts of text, a key differentiator in the competitive AI landscape.
• Strong Financial Backing and Rapidly Growing Valuation: The company has successfully attracted significant investment from major tech players like Alibaba and Tencent, as well as state-backed funds, leading to a multi-billion dollar valuation. This robust financial support is crucial for funding the high costs of AI research and infrastructure.
• Navigating a Complex Regulatory and Geopolitical Environment: While poised for significant growth, Moonshot AI operates within a rapidly evolving regulatory framework for AI in China and faces geopolitical tensions that could impact its access to key technologies and international expansion plans.

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• Iron ore remains on the back foot as deepening steel mill losses sap demand. Any lift from lower Fortescue shipments will likely fade without meaningful production cuts.
• Options traders are turning more bullish, adding upside bets above 100 while steadily unwinding downside protection despite weak near-term fundamentals.
• Managed money is leaning decisively bearish. With short positions jumping by 21% in July, participants are signalling iron ore’s downside risks are far from over.

• Dominant Market Leader with Deep Vertical Integration: BYD is a global leader in New Energy Vehicles (NEVs), underpinned by a formidable competitive advantage in its deep vertical integration. The in-house production of critical components, including its proprietary Blade Batteries and semiconductors, provides significant cost control, supply chain resilience, and rapid innovation capabilities.
• Aggressive International Expansion as a Key Growth Driver: Facing a hyper-competitive and maturing domestic market, BYD is aggressively expanding its global footprint. This strategy involves not just exporting vehicles but also establishing localized manufacturing hubs in regions like Southeast Asia, Latin America, and Europe to mitigate tariff impacts and cater to local market preferences.
• Intense Competition and Geopolitical Risks Present Headwinds: The company’s profitability is under pressure from a severe price war in the Chinese domestic market. Furthermore, its international ambitions face significant geopolitical risks, including the imposition of tariffs and trade barriers in key markets like the European Union, which could temper its growth trajectory.

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• The investment thesis is currently dominated by a potential privatization offer from its controlling shareholder, Guotai Haitong Securities, which analysts anticipate could occur at a significant premium to the last traded price.
• The company has demonstrated a strong financial turnaround, with FY25 revenue growing 41% and net income surging, reversing the weaker performance of the preceding two years and highlighting a recovery in its core operations.
• Strategic expansion into new growth areas, notably the recent regulatory approval to provide virtual-asset trading services, positions the company to capitalize on the burgeoning digital finance sector in Hong Kong.

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• Dickson Concepts exhibits a robust financial position, characterized by a substantial net cash balance and strong free cash flow generation, underpinning significant dividend payouts.
• The company’s performance is closely tied to the cyclical nature of the luxury goods market in Hong Kong and Taiwan, which faces headwinds from shifting tourist spending patterns and competition from other regions.
• Led by its experienced founder, Dickson Poon, the company leverages long-standing, exclusive relationships with premier luxury brands, though it faces corporate governance risks typical of a founder-controlled entity.

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• We spent the past week meeting ECM focused clients in Hong Kong.
• Overall, IPO flow doesn’t appear to be showing any signs of slowing down with multiple investor teams being in expansion mode.
• In this note, we talk about some of the feedback for the upcoming IPOs and placements.

• 2Q26 topline (RMB16.5bn) growing at 32% QoQ driven by Wuxi Chemistry (+35% QoQ to RMB14.4bn) thanks to strong growth from oligo & peptide business TIDES (+105% QoQ to RMB4.88bn). 
• While 2026 revenue guidance raised by c.14%, it implies 2H26 revenue of RMB30.6bn or a HoH growth of 6%, which we believe is still conservative considering the strong 2Q26 momentum
• See inside for detailed quarterly financial analysis for 1Q26 and 2Q26; Wuxi Apptec will host results call tomorrow 8am Beijing time

• WuXi AppTec (2359 HK) announced 1H26 result, with revenue increasing 39% to RMB29B and net profit climbing 83% to RMB12B. 2Q26 revenue growth accelerated to 48% from 29% in 1Q26.
• Driven by continued focus on core CRDMO strategy, backlog for continuing operations reached RMB63B as of June 30,2026, up 25% YoY, further enhancing business visibility.
• The company is targeting 2026 total revenue of RMB58.5B– 60.5B (up from RMB51.3B–53.0B), with continuing operations revenue growing 35%–39% YoY (up from 18%–22%).

• Luxvisions Innovation, a camera module and precision optical solutions supplier, has filed its prospectus with the HKEX. CITIC and CICC are the joint sponsors.
• We look at the company’s core segments: consumer electronics and smart office applications.
• We then look at the company’s financial profile, profit growth, pre-IPO valuation and investor backing.

• Alibaba is navigating a period of significant transition, refocusing on its core e-commerce and cloud computing businesses while facing unprecedented competitive intensity from rivals like PDD Holdings and Tencent.
• The company is making a substantial strategic pivot towards Artificial Intelligence, highlighted by the development of its large-parameter Qwen AI model, which it aims to monetize through its extensive cloud infrastructure and enterprise client base.
• Despite a challenging macroeconomic and regulatory environment that has compressed margins and slowed growth, the company has initiated shareholder returns through dividends and is pursuing a corporate restructuring to unlock value across its various business segments.

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• Dominant Player in a High-Growth Market: Angelalign is the market leader in China’s rapidly expanding clear aligner market, which is projected to grow at a CAGR of over 19% through 2033. The market remains significantly underpenetrated compared to the US, offering a long runway for growth driven by a large patient base, rising disposable incomes, and increasing aesthetic awareness.
• Aggressive Global Expansion Strategy: The company is actively pursuing a ‘glocalization’ strategy, expanding its footprint to over 50 countries across Europe, Asia-Pacific, and the Americas. This diversification mitigates reliance on the domestic market and taps into the multi-billion dollar global clear aligner industry. Strategic moves include the acquisition of Aditek in Brazil and the construction of a new manufacturing facility in the US.
• Intensifying Competition and Valuation Concerns: While a market leader, Angelalign faces significant competition from global giant Align Technology (maker of Invisalign) and other domestic players. This rivalry could lead to pricing pressure and margin erosion. The stock trades at a premium valuation compared to some peers, which may not be fully justified if growth slows or competitive pressures intensify.

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• Market Leader with Unmatched Scale: China Mobile is the world’s largest telecommunications operator by subscribers, possessing a dominant market position in China. This scale provides significant competitive advantages, including network superiority, cost efficiencies, and substantial bargaining power over suppliers.
• Strategic Pivot to Digital Services Driving Growth: The company is successfully transitioning from a traditional connectivity provider to an integrated digital services powerhouse. Strong growth in its DICT (Data, Information, and Communications Technology) segment, particularly cloud computing and enterprise solutions, is becoming the primary engine for future revenue and earnings growth, offsetting the maturity in its core mobile business.
• Attractive Shareholder Returns and Financial Fortitude: China Mobile combines a strong commitment to shareholder returns, evidenced by a high and growing dividend payout ratio, with a robust balance sheet and strong free cash flow generation. This financial strength allows for sustained network investment while rewarding investors.

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• The accumulated data from over a decade of continuous operations form the core competitive barrier. New entrants find it difficult to obtain high-quality data. This is the highest entry barrier.
• The concern is as AIGC tools become homogeneous, self-built celebrity marketing system can integrate data at a lower cost, and the technical barriers of Inmyshow face the risk of erosion.
• The IPO of HK stocks usually has a discount of 20%-30% compared to A-shares. Considering Inmyshow has weak profitability/high risks in accounts receivable, A/H discount may be close to 35%-45%.

• High Customer Concentration and Margin Erosion: Luxvisions’ revenue is heavily reliant on “Customer A” (Apple), which accounted for 71.0% of total revenue in 2025 and 68.2% in the first five months of 2026. To maintain this high volume, the company has compromised on price, dragging consolidated gross margins down from 12.2% in 2022 to a stagnant 10.8% by mid-2025.
• Capacity Mismatch and Underutilization: Aggressive acquisitions—such as Cowell in 2021, Lite-On’s imaging business in 2022, and Konica Minolta’s Shanghai plant in 2023—have saddled the balance sheet with RMB 1.9 billion in goodwill while creating redundant capacity. Consequently, consumer electronics line utilization sits at 66%, while automotive lines linger at a dismal 33% as of mid-2025.
• Forced Geopolitical Relocation Dilutes Returns: Client-driven supply chain relocations to Vietnam and India are forcing redundant capex spend. This geographic restructuring satisfies “Customer A’s” risk mitigation requirements but dilutes Luxvisions’ return on invested capital (ROIC) by duplicating fixed-cost structures in lower-yield environments.

• Beijing ESWIN Computing Technology Co., Ltd. is a RISC-V oriented chip product provider in China, researching and designing chips, chipsets, and circuit boards. It was China’s largest domestic smart device.
• Beijing ESWIN Computing Technology served 220 customers worldwide and was China’s largest domestic smart device human-machine interaction chip product provider in 2025.
• The company reported a loss of RMB(1,515,844) thousand for 2025 and net cash used in operating activities of RMB(1,171,001) thousand.

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• Luxvisions Innovation Technology is a globally leading provider of precision optical solutions for consumer electronics, automotive, smart office, and emerging sectors. It ranked second globally in consumer electronics camera modules.
• Luxvisions is a globally leading precision optical solutions provider, ranked first in laptop and tablet camera modules. Revenue CAGR was 51.0% from RMB15.2 billion (2023) to RMB34.8 billion (2025).
• For the five months ended May 31, 2026, revenue was 13,623,763 RMB’000, with a net profit margin of 5.7% and return on equity of 15.9%.

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• The 22 July rout traded gross receipts as revenue. They are not: Spring Festival deferrals flow into 2Q’s P&L, so domestic games should print +13% against perceived decline.
• We forecast 2Q26E revenue RMB203.3bn (+10%), non-IFRS net profit RMB68.0bn (+8%), both above street; 2H catalysts stack up — Xiaowei launch, official HY3, Manus stake, ASIC-backed capex step-up.
• We are BULLISH with fair value of HK$670, set on SOTP — 20x games and marketing earnings, 4.0–4.5x fintech/cloud sales, investments at 30% discount; +41% upside.

• Trip.com paid out US$770M in fines, illegal profits, and deposits to resolve investigation
• The penalty is equivalent to ~9% of 2025 Net Revenue — larger than Alibaba’s 2021 case (4%)
• In this insight we look at why the company engaged in anti-competitive practices

• Unitree Robotics (688836 CH) will finally go ahead with its A-share IPO, with price consultation starting on 5 Aug and fixing on 6 Aug.
• Recent U.S. FCC regulation has added uncertainties, as historically, it derived 13-19% revenue from the country. Nonetheless, we project a 3-year earnings CAGR of 72.4%.
• On our forecasts and Rmb42bn market cap, it sits on 54.5x PER and 14.6x P/S for FY26. Such multiples are not expensive relative to peers, considering its high margin.

• 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, Zhongji InnoLight (3308 HK) made a tepid debut in HK’s largest IPO this year.
• There weren’t many placements over the past week, apart from Quanta Computer (2382 TT)‘s GDRm  but we did look at a few upcoming lockup expiries.

• CF PharmTech (2652 HK) intends to place 22M H Shares at the price of HK$13.82 per share. The placing price represents a discount of ~12% to the undisturbed closing price.
• The company intends to apply the net proceeds mainly for clinical and pre-clinical development of its innovative drug candidates and development of its complex inhalation formulation products globally.
• On October 8, 2025, CF PharmTech got listed on the HK Stock Exchange. The net proceeds from the Global Offering amounted to ~HK$525M, of which HK$129M had been utilized.

• Policy excluded NVIDIA. Biren is the only Hong Kong-listed beneficiary — fully funded through its next product cycle and priced 25% below what six institutions paid three weeks ago.
• BR20X launches 4Q26 — fully domestic supply chain, H200-class benchmark — into a >60%-growth market where NVIDIA is banned. Two percent unit share underwrites our RMB 5.0bn FY27E revenue.
• BULLISH, FV HK$46.00 (+32%). Basis: 20x FY27E EV/Sales plus ~HK$11bn net cash — a 40% discount to A-share GPU peers, where the wafer queue and CSP gap are priced.

• Cyclical Margin Expansion Fueled by Commodity Tailwinds: Yuen Kee Food Group’s (YKF) spectacular profit growth in early 2026—with net profit rising 176% year-over-year to 157 million yuan for the first five months of the year—is primarily a function of historically low pork prices. The company’s B2B supply model allowed the gross margin on pork fillings sold to franchisees to surge from 28.1% to 36.1%, masking structural headwinds at the retail level.
• Diverging Growth Profiles: A critical divergence has emerged between headquarters-level revenue growth (39.8% year-over-year) and terminal store GMV growth (27.3% year-over-year). This 12.5 percentage-point gap indicates that YKF’s top-line expansion is heavily driven by upfront inventory stocking for new franchise openings rather than organic, repeat consumer demand at existing outlets.
• Delivery Platform Dependency and Unit Economics: Online delivery has climbed to account for 45.3% of total store GMV. While this has supported high inventory turnover (13.7 days), it exposes franchisees to severe margin pressure from rising gig-economy delivery commissions and platform subsidies. This dynamic threatens the stability of YKF’s ultra-lean neighborhood store format, which currently relies on low rent-to-sales ratios (8% to 10%) to remain viable.

• Tencent’s stock price has firmly established itself above the support level throughout July.
• Tencent holds the third-largest global share in LLM API calls, which will drive existing businesses.
• Based on the five-year P/E band, the stock offers a 35% upside by the end of 2027.

• New regulations affecting SHEIN and other retailers are becoming visible on the horizon
• We believe coming changes will hit SHEIN and its peers harder than traditional retailers
• We look at California’s SB 707 law as an illustrative example of new challenges facing SHEIN

• Yuen Kee Food Group is the largest Chinese-style quick service restaurant (QSR) company in China by number of stores, serving dumplings, wontons, and related products.
• The company was the largest Chinese-style QSR by stores as of December 31, 2025, ranking 3rd with 0.7% market share in 2025 GMV.
• Revenue was RMB2,795,104 thousand in 2025, with profit for the year at RMB198,740 thousand and total assets of RMB2,043,474 thousand as of May 31, 2026.

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• A weekly summary of key developments in ECM and Event-Driven names tracked by us in Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India, and Chinese ADRs.
• ECM developments: SHEIN Global Holdings (SHEIN HK) and Manipal Health Enterprises Ltd (1217834D IN) IPOs.
• Event-Driven developments: Future Corporation (4722 JP), Kakaku.com Inc (2371 JP), Tamron Co Ltd (7740 JP), Australian Strategic Materials (ASM AU), Perpetual Ltd (PPT AU). 

• Pure Self-Pay Model vs. Public Alternatives: Harbin Yuyantang operates an out-of-pocket model that does not participate in public medical insurance (GHI). While this shields the company from state-driven price caps, Volume-Based Procurement (VBP), and DRG/DIP cost controls, it exposes them entirely to consumer discretionary spending volatility and regulatory risks around the “以药养医” (using medicine sales to subsidize healthcare services) model.
• High Margin, High Attrition Unit Economics: Yuyantang’s high gross margin (62.5% in 2025) is driven by customized TCM decoction pastes (膏剂), where they hold the top national market share of 8.4%. However, their reliance on full-time employed doctors has led to a high physician turnover rate (26.1% in 2025), presenting a stark contrast to Gushentang’s capital-light, part-time “multi-site practice” model.
• Aggressive Capital Expansion and Liquidity Risks: The network’s rapid expansion from 14 clinics in 2023 to 59 in May 2026 has been funded almost entirely through operational cash flow and unpaid operational obligations, resulting in consecutive net current liabilities (RMB 15.10 million as of May 31, 2026). The plans to open 155 to 170 more clinics through 2029 will stress liquidity, especially given a 57.2% year-on-year drop in operating cash flow in early 2026.

• Strategic Evolution through “Active Slimming”: Hand has improved its consolidated gross margins to 35.67% (or 34.8% on an IFRS basis) in 2025 by actively contracting its legacy foreign ERP implementation business (declining 4.85% to RMB 1.015 billion) in favor of higher-margin proprietary solutions. This represents an active retreat from a highly competitive, low-margin space rather than a direct competitive victory.
• Hidden Balance Sheet & Compliance Vulnerabilities: Hand’s margin improvements are partly supported by tight human capital management, characterized by a massive surge in subcontractor costs (RMB 520 million in 2025, or 23.3% of sales costs) and a cumulative social security underpayment of RMB 155 million from 2023 through early 2026, creating severe regulatory exposure up to three times the deficit.
• Enterprise AI Monetization Obstacles: While Hand’s AI business grew to RMB 310 million in 2025, the business remains heavily weighted toward standard, man-day system integration projects. The transition to highly-valued software subscription modules faces structural friction because large Chinese enterprises resist recurring SaaS licensing models, preferring customized, one-time-payment architectures.

• Smart System Verticalization is the Real Margin Savior: While basic LED assemblies have commoditized to under 500 RMB, driving severe price-erosion pressure, Xingyu has defended its gross margin around 19.67% by aggressively verticalizing into light controllers, actuators, and software. Designing its own control units—such as for the Aito M9—allows it to capture higher unit economics than legacy Tier 1s who outsource these components to Tier 2s.
• HK IPO is a Structural Bypassing of Capital Controls, Not a Cash Squeeze: The company’s recent July 29, 2026 Hong Kong listing application is not driven by a domestic funding crisis, given their strong domestic cash flow with Q1 2026 operating cash flow at 421.06 million RMB. Rather, it represents a structural bypass to establish an offshore capital pool, allowing Xingyu to fund aggressive global expansion in Europe and North America without getting snarled in Beijing’s capital export regulations.
• The Serbian Plant is a Necessary, but Costly Tariff Hedge: Operating in Nis, Serbia, generated 430 million RMB in revenue in 2025 but remains structurally loss-making. The facility serves as an essential regional backdoor into the EU, bypassing direct tariff headwinds, yet it suffers from low local-content supply chains, severe local engineering talent bottlenecks, and agonizingly slow OEM validation cycles that drag heavily on return on investment (ROI).

• AI Infrastructure Boom Driving Explosive Demand: Han’s CNC is experiencing unprecedented demand, with first half 2026 net profit forecasted at RMB 900 million to 1 billion (up over 240% year-on-year). This structural tailwind is driven by high-multilayer boards, HDI, and mSAP class carrier boards for AI servers and 1.6T transceivers.
• The Core Competitive Moat and Gaps: Han’s CNC dominates domestic market share, but a clear technical gap persists against global leaders. While Han’s mechanical drillers (±4μm precision) compete on price against Schmoll (±3μm precision), its laser drilling equipment relies heavily on imported key optical modules to narrow the gap with Mitsubishi and Via Mechanics.
• High Key-Component Import Dependencies: Despite efforts in domestic substitution, critical high-value components remain highly vulnerable. Sieb & Meyer AG remains the sole supplier of CNC systems for high-end mechanical drillers, and high-speed spindles above 200k RPM are still largely sourced from foreign providers like Westwind, leaving the margin pool concentrated upstream.

• SaaS as a Trojan Horse, Not a Revenue Driver: While Yueshi’s digital solutions carry high gross margins of over 90%, they contribute less than 1% of total revenue (0.7% in 2025). The software serves primarily to lock in operators and capture transaction data to power the capital-intensive, low-margin trading business.
• Working Capital Strain from Rapid Volume Scaling: The transition to physical trading of cold-chain agricultural products has driven a massive volume expansion to 200,000 tons in 2025, but at the cost of chronic operating cash flow deficits (expanding to a net outflow of RMB 315.00 million in the first four months of 2026), heavily squeezing liquidity.
• Low Gross Margin Profile Restricts True Profitability: Despite posting an adjusted net profit of RMB 35.88 million in the first four months of 2026, Yueshi’s core trading gross margins remain stuck in the low-2% range (2.60% in early 2026), meaning its financial viability remains highly sensitive to upstream meat/shrimp price fluctuations and working capital efficiency.

• SMC Electric operates a dual-pronged business model, manufacturing rechargeable electric tools for overseas brands (Non-SMC segment) and selling electric fans under its own ‘SMC’ brand, with the Non-SMC segment being the primary revenue driver.
• The company exhibits a concerning financial trajectory, with multi-year declines in revenue, net income, and cash flow, contrasting sharply with a recent surge in market capitalization. A profit warning for the first half of 2026 signals continued headwinds from weaker demand and higher costs.
• Valuation appears stretched, with key metrics like P/E and P/B ratios trading at a significant premium to peers, which is inconsistent with the company’s negative growth track record and recent profit warnings.

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• COSMOPlat IoT Technology Co., Ltd. provides industrial intelligence products and solutions for intelligent transformation across various industrial sectors.
• The company ranked first in China for platform-based industrial data intelligence solutions and edge intelligent controllers by 2025 revenue.
• COSMOPlat IoT Technology reported a net profit margin of 1.7% in 2023.

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• Shenzhen Han’s CNC Technology (3200 HK) raised around US$615m in its H-share listing in Feb 2026. The lockup on its cornerstones is set to expire soon.
• Shenzhen Han’s CNC Technology is a leading specialized PCB production equipment solution provider in China, focused on the manufacturing and sale of equipment used across key stages of PCB manufacturing.
• In this note, we will talk about the lockup dynamics and possible placement.

• Shenzhen Yueshi Holding is a technology-driven enterprise selling cold chain agricultural products and providing digital cold chain solutions. In 2025, it ranked sixth in China’s market with a 1.0% share.
• The company had over 1,200 sales customers and over 1,000 suppliers during the Track Record Period. Product sales revenue grew over 99.2% year-to-year from 2024 to 2025.
• In 2025, gross profit was RMB168,616 and adjusted net profit was RMB68,717. Net loss was RMB(1,764,225) in 2025, with net liabilities of RMB(274,008) as of December 31, 2024.

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• Hong Kong equities extended their rally with broad participation and continued outperformance versus North American technology stocks.
• Single stock option activity rebounded, with Call trading most active during the week’s strongest market session and Xiaomi seeing a large uptick in volume.
• Consumer Staples and Consumer Discretionary stood out as the strongest sectors during another broadly positive week.

• Changzhou Xingyu designs, manufactures, and sells automotive lighting products and electronic components globally, leveraging technology innovation and intelligent manufacturing. It is the largest provider in China and a major global.
• The company holds 11.6% Chinese automotive lighting market share and 10.2% global intelligent automotive lighting market share in 2025. It covers nine of the world’s top ten automotive manufacturers.
• Revenue was RMB15,256,666 and profit for the year was RMB1,624,084 in 2025. Total equity was RMB11,573,021 as of March 31, 2026.

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• Hand Enterprise Solutions Co., Ltd. is a proven enterprise IT consulting and digital solution service provider in China, offering solutions to large and top-tier enterprises. It ranks fourth overall and.
• Revenue increased by 8.7% from RMB2.98 billion in 2023 to RMB3.24 billion in 2024, and profit increased by 19.2% to RMB234.1 million in 2025.
• In 2025, revenue was RMB3,415,370, gross profit was RMB1,188,101, and gross profit margin was 34.8%.

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• Harbin Yuyantang is a private chain TCM healthcare service provider in China, operating through self-established offline medical institutions. It offers integrated TCM healthcare services, focusing on chronic disease treatment and.
• Harbin Yuyantang ranked fifth in China in 2025. Its offline medical institutions increased from 14 to 59 by May 2026. Revenue grew from RMB150.0 million to RMB399.7 million.
• Revenue was RMB399,725 in 2025, with profit for the year at RMB70,467. Net current liabilities were RMB15,108 as of May 31, 2026.

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• XREAL’s HKEX IPO is a critical refinancing event rather than a strategic milestone. The company’s cash and cash equivalents dwindled to 64 million yuan at the end of 2025, while its annual adjusted losses over the past three years reached nearly 1.1 billion yuan. With 2025 sales, administrative, and R&D expenses standing at 2.35 times its gross profit, the company is heavily reliant on the IPO to survive its cash-burn rate.
• The transition to spatial computing via the Google Android XR partnership is a high-risk gamble. While the upcoming XREAL AURA glasses boast a 70-degree field of view and integration with Google Gemini, the wired split-device design (relying on a companion compute puck) runs counter to the explosive consumer preference for lightweight, untethered smart glasses.
• Luxshare’s operational leverage and equity backing provide a vital safety net, but also limit margins. Luxshare’s 1.18% stake and assembly partnership shield XREAL from the manufacturing scaling challenges faced by smaller players like Rokid and Viture. However, XREAL’s hardware-level 35.2% gross margin in 2025 is capped by expensive microOLED display panels and the high transaction costs of utilizing such advanced manufacturing partners.

• Strategic Vision 2035 accelerates under CEO Michael Smith, pivoting to a USD100 bn ultra-premium property manager, driving third-party capital expansion and double-digit dividend growth.
• Outstanding 1H 2026 results feature USD3.7bn in recycled capital, slashing gearing to 11%, validating the USD 1bn Tomorrow’s CENTRAL transformation in Hong Kong.
• The SGD8.2bn SCPREF launch and Orchard Road acquisition secure recurring fees; trading at a massive NAV discount, Hongkong Land offers immense upside with robust buybacks.

• NASN Intelligent launched its Hongkong IPO aiming to raise up to HK$ 643.9M (~ US$ 82M). NASN develops intelligent driving motion control technologies, currently offering brake-by-wire solutions.
• NASN Intelligent intends to use the IPO proceeds to enhance R&D capabilities, upgrade production/manufacturing facilities, raise service capabilities, raise brand recognition and working capital.
• Valuation that the company is seeking does seem stretched just because the company relatively is in its early stages of growth and it will slowly and steadily scale up.

• Montage Technology (6809 HK) (MT), a provider of memory interface chips and interconnect chips, raised around US$1bn in its H-share listing. Its cornerstone investors will soon be released from their lockup.
• MT’s product portfolio, mainly comprises memory interface chips and interconnect chips, addresses interconnect bottlenecks while enhancing data rate/bandwidth, reliability, and power efficiency, as per the company.
• In this note, we will talk about the lockup dynamics and possible placement.

• The ChiNext index represents the performance of the 100 largest and most liquid A-share stocks listed on the ChiNext Market of the Shenzhen Stock Exchange.
• Currently, we expect 6 changes for the ChiNext index and 5 changes for the ChiNext 50 index in the next index rebal event.
• The ChiNext and ChiNext 50 index rebal events could trigger US$226mn and US$220mn in one-way flows respectively.

• SHEIN Global Holdings (SHEIN HK), a global online fashion and lifestyle company, is pre-marketing a HKEx IPO to raise US$3 billion.
• In SHEIN Global IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
• The bear case rests on a business model under severe strain, as reflected in rapidly declining growth, margin pressure, and down rounds. 

• CSI Medical Service represents the top 50 largest and most-liquid stocks involved in medical devices, medical care, medical informatization, and other medical theme from the Shanghai, Shenzhen, and Beijing Exchanges.
• In this insight, we take a look at the potential ADDs and DELs for the semiannual index rebal event in December 2026.
• We expect up to 5 ADDs/DELs and we estimate one-way flows of approximately US$271mn.

• Contractor WK Group (2535 HK) is suspended pursuant to the Hong Kong Code on Takeovers and Mergers. Expect a Scheme Offer from the Chan family, who collectively hold ~39%.
• WK Group was listed in March 2024 at HK$0.25/share, and closed up 9.7% yesterday at HK$0.51/share.
• Interestingly, this is the second HK contractor suspended in as many days due to the Takeovers code, after Superland (368 HK) – see Superland (368 HK) Suspended: MBO (Takeunder) Expected.

• H1FY26 Balance Sheet Expansion is Strategic, Not Structural Decay: The sharp increase in Plover Bay’s inventory and receivables in H1FY26 is driven by proactive component stockpiling (specifically 5G cellular modules and chipsets) to facilitate the upcoming US manufacturing transition, alongside selectively extended Net 60/90 payment terms to major North American Managed Service Providers (MSPs) to secure multi-year government and transit contracts.
• Starlink is a Complementary Catalyst, Not a Disintermediator: Despite market concerns regarding Starlink’s entry into enterprise routers, the operational reality is that Starlink acts as a major demand driver for Peplink’s high-margin multi-WAN bonding hardware. Enterprise, maritime, and blue-light customers require the redundancy of Peplink’s SpeedFusion protocol to bond Starlink with terrestrial LTE/5G networks, preserving Plover Bay’s channel relationships.
• The US Spin-off Faces Severe Cross-Border Tax Friction: While a US listing would unlock a higher valuation multiple, the lack of a comprehensive double taxation treaty between the US and Hong Kong subjects all repatriated dividends from the US entity to the HK parent to a 30% withholding tax. Mitigation strategies like intercompany IP licensing will face intense IRS transfer pricing scrutiny under Section 482 rules, creating a significant drag on net shareholder payouts.

• We screen the Hong Kong-listed mainland stocks ahead of the HSCEI August 2026 review.
• The screen produces one ADD and one DELETE, and the DELETE fires only if the ADD lands.
• We note that the committee skipped the same ADD candidate last review but re-iterate our call.

• Zhongji InnoLight (3308 HK) IPO could not happen on a worse day, right after a US sell-off, but both the HK and the China mainland stock (300308 CH) will recover.
• H-Share float expansion, IPO arbitrage, and sector profit-taking created a tactical dislocation against intact fundamental bull cases. 
• Consensus Rating is overwhelmingly bullish. Analyst coverage shows ~87.5% “Strong Buy” and ~12.5% “Buy” with zero “Hold” or “Sell” ratings. Our model indicates the stock is short-term oversold.

• Montage Technology is a dominant player in the memory interface chip market, poised to capitalize on the secular growth trends of AI and cloud computing, driven by the industry’s transition to DDR5 memory.
• The company exhibits a robust financial profile, characterized by accelerating revenue growth, significant margin expansion, and strong operating cash flow generation.
• Despite strong fundamentals and a positive outlook, the company’s stock trades at a premium valuation, which presents a key risk for investors and makes it susceptible to shifts in market sentiment.

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• Dominant Market Leader in a High-Growth Sector: Zhongji InnoLight is the world’s largest provider of optical interconnect solutions, a market experiencing explosive growth driven by the proliferation of AI, cloud computing, and data center expansion. The company holds a significant global market share, estimated at 21.2% in 2025, and is a key supplier to major hyperscalers like Nvidia, Google, Amazon, and Meta.
• Exceptional Financial Performance: The company is demonstrating remarkable financial results, with triple-digit percentage growth in revenue and net profit. In the first quarter of 2026, revenue surged 192% year-over-year to RMB 19.5 billion, while net profit grew 262% to RMB 5.73 billion, driven by strong demand for its high-speed optical modules (800G and 1.6T) which command higher profit margins.
• Geopolitical Risks and High Valuation Present Headwinds: Despite its strong market position and financial performance, the company faces significant risks related to US-China geopolitical tensions and a high valuation. A large portion of its revenue is derived from the US, making it vulnerable to trade restrictions and tariffs. Additionally, its valuation multiples are elevated, which could lead to volatility, as seen in the recent stock price correction and the initial dip in its Hong Kong IPO.

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• We review the HSLMI universe for potential candidates for the upcoming HSI August 2026 review.
• Three stocks stand out as ADD candidates this cycle, one of them high conviction.
• We also highlight substantial FF and weight changes for CATL.

• Zhongji Innolight has placed its dual-listed H shares at HK$980 per share, approximately a 10% discount to its A shares.  The listing will be the largest in HK since Alibaba.
• Zhongji Innolight is the world’s largest manufacturer of optical transceiver modules, holding 21.2–23.1% global market share in datacom optical modules as of 2025.
• The company supports global cloud and AI computing infrastructure with strong hyperscaler qualification relationships with Google, Amazon, Meta, and Nvidia, its largest customers.

• YMTC is getting ready to complete its IPO in China in 2H 2026/1H 2027. Many investors are lining up to subscribe to the YMTC IPO after the huge CXMT IPO. 
• Reuters has mentioned that YMTC may be pushing internally for a 1 trillion won yuan ($148 billion) valuation target which is 28% of CXMT’s current market cap. 
• Both CXMT and YMTC are quickly emerging as formidable competitors to SK Hynix (000660 KS) and Samsung Electronics (005930 KS). 

• Zhongji Innolight raised HKD 52,891m (USD 6,746m) from its global offering and will list on the HKEx on Thursday, July 30, 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.

• Zhongji InnoLight (3308 HK) fixed its IPO price at HK$980, 3% below the maximum, due to the recent weakness of AI-related stocks. Its HA discount is now at just 11.1%.  
• Its peers have retreated an average of 12.1% in a week, and its A-share was off by 10.4%. Futubull’s grey market price was down 1% from the IPO.
• It may dip below IPO on debut, but anything below 15% HA discount is a bargain (HK$936.8). For initial upside, we look for par with A-share, i.e. HK$1,102.

• Zhongji InnoLight (3308 HK) (ZI), one of the world’s largest optical transceiver manufacturers, raised around US$7.8bn in its H-share listing.
• Innolight was the global leader in 2025 in optical modules, with its products being in high demand for data centers.
• We have looked at the past performance and valuations in our previous note. In this note, we talk about the trading dynamics.

• Yadea (1585 HK) has introduced new capabilities, including sodium batteries and battery swapping, that will yield revenue growth. 
• Investments in the overseas manufacturing facilities will produce higher margins and avoid a price war in China. 
• After a big jump in the sales and earnings in FY 2025 while AIMA Technology Group (603529 CH) result is worse, the share price has not really moved. A buying opportunity. 

• Muyuan Foods Co (2714 HK) (MF), a leader in the hog farming industry, raised around US$1.6bn in its H-share listing. Its cornerstone investors will soon be released from their lockup.
• MF is a leading pork company with over 30 years of expertise in the hog farming industry.
• In this note, we will talk about the lockup dynamics and possible placement.

• Own-Brand Growth Vulnerability: While Amos Food has successfully pivoted from OEM to proprietary brands, driving revenue to 2.78 billion yuan in 2025, this growth is highly dependent on “viral” hit-product cycles like Peelerz, which are structurally difficult to sustain and carry lower pricing power than established global brands.
• Severe Tariff & Supply Chain Headwinds: U.S. tariff expenses exploded from 6 million yuan to 108 million yuan between 2023 and 2025, eating 18% of net profit. The planned Vietnam factory, scheduled for late 2026, faces major supply chain maturity constraints and escalating geopolitical risks that limit its effectiveness as a tariff hedge.
• Squeezed Margins & Retail Volatility: Securing shelf space in North American retail (Walmart, Target, Costco) requires high slotting fees, trade promotions, and co-op marketing. This, paired with inflating customer acquisition costs (CAC) and copycat pressure from deep-pocketed legacy players like Haribo, threatens Amos’s long-term operating margins post-IPO.

• Standard Robots (Wuxi) Co., Ltd. is a leader in industrial intelligent mobile robotic solutions, seeking HKEX Main Board listing under Chapter 18C.
• Revenue increased by 54.5% from RMB162.2 million in 2023 to RMB250.5 million in 2024.
• Revenue was RMB162,166 in 2023, RMB250,522 in 2024, and RMB301,493 in 2025.

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• SHEIN Global Holdings (SHEIN HK), a global online fashion and lifestyle company, is pre-marketing a HKEx IPO to raise US$3 billion.
• Shein is the largest online fashion destination globally as measured by apparel and footwear retail sales value in 2025.
• The bull case rests on scale and cost advantages that are hard to replicate, robust order growth, the largest geographic segment not being constrained by tariff politics, and cash generation. 

• SHEIN Global Holdings (SHEIN HK) (SHEIN), a global online fashion and lifestyle company, aims to raise up to US$3bn in its Hong Kong listing.
• Shein is a global online fashion and lifestyle company serving approximately 273m active customers in approximately 160 markets in 2025.
• In this note, we talk about the positive aspects of the deal.

• Boqian New Materials, a high-end electronic metal powders manufacturer, is seeking an A+H listing. GTJA is the sole sponsor.
• We look at the company’s core segments: nickel-based powders for MLCC electrodes and copper-based powders for PV metallization.
• We discussed our preliminary thoughts on the company’s valuation based on A-H premium.

• Tencent (700 HK) is scheduled to report its H1 / Q2 2026 financial results on August 11–12, 2026. In our recent insight (July 17) we signaled a BUY opportunity.
• There has been some bottoming process and the PROFIT TARGETS have been reset on our model.
• This insight updates the profit targets for a rally that may be starting from the current lows. Consensus ratings remains overwhelmingly bullish: “Buy” or “Strong Buy”.

• SHEIN’s cash conversion cycle is -46.5 days and widening — suppliers (108.6 payable days) and prepaying customers fund growth, while gross margin hit 67.9%, the highest among fashion peers.
• Revenue growth fell to 1.1% as US tariffs bit, but adjusted net profit (stripping preferred-share accounting) still fell 42% YoY — real margin compression from marketing costs, not just optics.
• We think fair value US$50bn (+11% vs target midpoint), as 1.19x sales still undervalues SHEIN versus Inditex’s 4.6x despite superior margins and cash generation.

• SHEIN, which previously operates on light-asset model of “cross-border direct mail”,has been forced to shift to heavy-asset model of “local fulfillment” (construction of overseas warehouses).This demands more precise inventory forecasting
• SHEIN’s net profit has continued to decline.YoY growth of global website traffic has dropped to single digits in June 2026, indicating that the global traffic boom has reached its peak. 
• The peak valuation of ~US$100bn in 2022 would not be achievable, and valuation discount in IPO is inevitable. We think comfortable valuation could be 27.3-45.5x P/E based on 2026 forecast.

• A-Share optoelectronics names hold the largest single-country share of merchant optical transceivers; Innolight leads globally at CNY38.24bn FY25 revenue, with Eoptolink next at CNY24.84bn.
• AI has multiplied demand: Big-5 hyperscaler capex reached US$353bn in 2025, 2026 plans sum to roughly US$790bn, and the market is in year one of the 1.6T generation.
• The module leaders trade at roughly 27x forward earnings, the cheapest layer of their own supply chain; upstream chip, DSP, and EMS peers run 29-52x.

• SHEIN Global Holdings (SHEIN HK), a global online fashion and lifestyle company, aims to raise up to US$3bn in its Hong Kong listing.
• Shein is a global online fashion and lifestyle company serving approximately 273m active customers in approximately 160 markets in 2025.
• In this note, we talk about the not-so-positive aspects of the deal. 

• Huizhou Desay Sv Automotive (002920 CH) , an intelligent automotive solutions provider, aims to raise around US$300m in its H-share listing.
• Huizhou Desay SV Automotive (DSV) is a global leading mobility and intelligent technology platform company. 
• In this note, we talk about the company’s past performances.

• Internationalization as a Margin and Survival Hedge: Desay SV’s planned USD 300 million H-share listing is a direct response to a saturated, low-margin domestic market. While 92.6% of its current revenue is domestic, the 27.3% gross margin generated by its RMB 2.41 billion in overseas sales dwarfs its declining domestic margins, making localized assembly in Spain and Mexico the primary target for capital allocation.
• Structural Gross Margin Compression: Overall gross margins have eroded from 24.6% in 2021 to 19.07% in 2025. This is driven by a software-to-hardware mismatch where Desay SV acts primarily as a low-margin hardware integrator (assembly/testing) with limited software monetization, combined with a rising share of low-margin contract manufacturing models for major EV players.
• Intelligent Driving ASP Collapse: The average sales price (ASP) of Desay SV’s smart driving products plummeted from RMB 856 to RMB 651 in a single year. Price wars waged by domestic OEMs, combined with high sourcing costs for Nvidia’s Orin chips and aggressive competition from Horizon Robotics and Huawei, have structurally capped the profitability of its high-level ADAS domain controllers.

• SHEIN, a global online fashion and lifestyle retailer, has passed the HKEX listing hearing. GS, MS, and JPM are the joint sponsors.
• We look at the company’s core segments: apparel and non-apparel.
• We then look at the company’s financial profile, profit decline, pre-IPO valuation and investor backing.

• CXMT closed its debut at Rmb49.00 (+466% from IPO, intraday high +531%), making it China’s most valuable listed company on Rmb100bn+ turnover.
• A 6.73% free float and 462.85x oversubscription explain the pop better than fundamentals do; professional allocation holders sold immediately, and P/B–ROE now sits off the chart.
• We move to BEARISH, TP unchanged at Rmb11.65 — a valuation-gap call, not a business downgrade: spot is 4.2x our TP and 3.4x even our bull case.

• Indonesia’s Mother & Baby e-commerce category grew 36% year on year in Q1 2026 to roughly 20 trillion IDR across the three platforms Cube tracks inTradewinds: Shopee, TikTok Shop, and Lazada.
• Shopee still commands the category with a 69% share, but TikTok Shop is the fastest-rising force, and Baby personal care is where the shift is most visible.
• Here is what the data says, and what brands should do about it.

• SHEIN Global Holdings Limited is a global online fashion and lifestyle company serving approximately 273 million active customers in 160 markets in 2025, pioneering a proprietary LATR operating model.
• SHEIN is the largest online fashion destination globally in 2025, with 273 million active customers and US$41.8 billion net revenues, achieving US$2,064 million net income.
• Net revenues were US$41,847 million in 2025, with net income of US$2,064 million. A net loss of US$99 million was recorded for the three months ended 31 March 2026.

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• SHEIN’s Q1 2026 net loss of $99 million was driven by a combination of a $328 million non-cash fair-value charge on convertible preferred shares and a 14.3% year-over-year decline in U.S. revenue to $2.04 billion, directly triggered by the Trump administration’s May 2025 removal of the de minimis duty-free exemption.
• The core LATR (Large-scale Automated Test and Reorder) model is highly sensitive to cross-border logistics costs. Imposing U.S. tariffs ranging from 10% to 87.5% on direct-to-consumer parcels destroys the unit economics of shipping micro-batches (100–200 units) from China, forcing price increases of 20% to 30% that alienate its core Gen Z base.
• Competition with Temu has descended into an unsustainable “stop-start” marketing war, with both players whipsawing ad auctions—such as Temu cutting U.S. ad spend by 51% in March 2026 before ramping back up—while struggling with low 5% conversion rates compared to Amazon’s 12%.

• BYD is also making an inroad towards intelligence driving, democratizing LIDAR but also made The World’s First Dual “Full Damage Coverage” Pledge.  
• 2026 1H was marked with a combination of a slow 1Q and a more promising 2Q thanks to new model launch and growing export business. 
• BYD Company (1211 HK) is trading at 6.5x EV//EBITDA while still being the largest EV makers globally. 

• Eastroc Beverage (9980 HK) (EB), a China-based functional beverage company, raised around US$1.3bn in its H-share listing. Its cornerstone investors will soon be released from their lockup.
• According to Frost & Sullivan (F&S), EB has been the largest functional beverage company in China in terms of sales volume for four consecutive years since 2021.
• In this note, we will talk about the lockup dynamics and possible placement.

• SHEIN Global Holdings (SHEIN HK) aims to raise HK$15.7-23.5bn in its upcoming HK IPO and has passed the listing committee hearing. It recorded losses of US$99m in 1Q26. 
• Key positives are its leadership position with global presence, excellent brand portfolio with comprehensive offerings, and unique operating model and end-to-end intelligent supply chain.
• Key negatives are its exposure to regulatory and tariff uncertainties, geopolitical and supply chain scrutiny, and challenges from intensifying competition.

• Context: Over the past five trading days, Tencent (700 HK) multi-leg option strategies showcased a variety of approaches. Strategy highlights are provided.
• Highlights: Diagonal spreads accounted for 31% of observed trades, supported by an inverted term structure leading into earnings.
• Why read: This breakdown of complex option strategies sheds light on market sentiment and positioning. Detailed examples provide actionable insights that could inspire similar strategies.

• In this insight we discuss about Chow Tai Fook Jewellery (1929 HK)’s remarkable growth in Q1FY2027 detailing about the various aspects of this growth.
• We also discuss what is the signs of change in product mix and how it may impact the financials in coming period.
• Finally, we provide our view on near term performance along with valuation table.

• 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), OFX Group (OFX AU), Cygnus Metals (CY5 AU), Atlantic Lithium (A11 AU), Tourism Holdings (THL NZ), Z Fin (1168 HK). 
• Lowest spreads: Accent Group (AX1 AU), Australian Strategic Materials (ASM AU), Kakaku.com Inc (2371 JP), Shinko Shoji (8141 JP), Taiyo Holdings (4626 JP), J.S.B (3480 JP), Clearview Wealth (CVW AU). 

• PrimeGenX Therapeutics Co., Ltd. is a biotech company founded in 2016, specializing in locally-delivered targeted therapies for immune-inflammation diseases.
• The pipeline includes 4 proprietary drug candidates and 5 generic drug candidates, with PG-011 targeting atopic dermatitis and allergic rhinitis.
• Cash and cash equivalents were RMB127,682 thousand as of April 30, 2026, with net liabilities of RMB(7,191) thousand.

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• Zhongan Information Technology (Shenzhen) Co., Ltd. provides AI solutions for intelligent marketing and operations management to enterprises across financial services, IT, and retail.
• Cumulative clients grew from 88 to 409 by May 31, 2026, with revenue increasing from RMB225,864 (2023) to RMB477,104 (2025).
• Revenue was RMB477,104 in 2025, with a profit for the year of RMB39,065 and net assets of RMB611,773 as of May 31, 2026.

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• The proposed transaction—concurrently privatizing Skyworth Group and spinning off its solar business (SKYWORTH Solar Co., Ltd.) by way of introduction—is structurally designed to offload a highly capital-intensive, low-margin business to public markets while retaining the stable, cash-generating traditional appliance assets for the controlling family.
• The appraised valuation of HK$16.57 per share for the solar business is highly optimistic, implying a P/E multiple of around 21x based on estimated 2025 net profit margins of 3% to 4%. This appraisal fails to account for severe domestic overcapacity, plummeting module prices to RMB 0.74/W to RMB 0.77/W, and significant contingent liabilities arising from Skyworth’s minimum income guarantees to residential financial leasing users.
• Transaction execution faces major regulatory hurdles, primarily the outstanding CSRC filing notice for the spin-off, which has delayed the despatch of the scheme document past the original February 24, 2026 deadline. This delay reflects increased regulatory scrutiny over restructuring deals that appear to hollow out listed entities to the detriment of minority shareholders.

• 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, Zhongji Innolight (300308 CH) launched HK’s largest listing so far this year, while SBI Funds Management reopened the Indian markets.
• There weren’t many placements over the past week but we did look at a few upcoming lockup expiries.

• SHEIN’s new IPO filing in Hong Kong shows the company recording a Net Loss in Q126
• A sharp increase in Q126 fulfilment costs helps to explain the period’s weaker profitability
• SHEIN’s ability to rein in unit fulfilment costs should be a key driver of long-term performance

• This round of the “super cycle” did bring about a profit explosion, but once the cycle turns, the decline in profits will also be equally severe.
• In the second quarter of 2026, the increase in storage prices slightly narrowed compared to the previous period. 2027 might be the turning point for the price trend.
• If based on 2026 forecast, a conservative scenario could be 8-10x P/E. A neutral scenario could be 15-20x P/E. An optimistic scenario could be 25-35x P/E

• Context: Over the past five trading days, Alibaba (9988 HK) multi-leg option strategies showcased a variety of approaches. Selected trades are highlighted.
• Highlights: Option traders positioned for a recovery into August earnings while retaining downside protection beyond the event through diagonal put spreads.
• Why read: This breakdown of complex option strategies sheds light on market sentiment and positioning. Detailed examples provide actionable insights that could inspire similar strategies.

• Founded in 2007, Guangzhou Novaken Pharm is a clinical-stage pharmaceutical company developing modified new drugs using alternative formulations and drug-delivery technologies.
• DHMP is the first dissolving microneedle drug patch approved for clinical trials in China and the only one to Phase II.
• Net current liabilities were (RMB573,269) as at May 31, 2026, with a current ratio of 0.2.

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• Hong Kong equities extended their advance, although recent momentum showed signs of levelling off after a strong start to the week.
• Strong gains across several Materials stocks helped distinguish the sector from the broader market advance.
• Tencent’s sharp decline generated exceptionally heavy option activity and drove the increase in Communication Services sector volumes.