Daily Brief China: Beijing ESWIN Computing Technology, Luxvisions Innovation Technology, Tencent, Trip.com, Unitree Robotics, Zhongji InnoLight, CF PharmTech, Biren Technology, Yuen Kee Food Group and more

• 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.