In today’s briefing:
- Aequitas: Chery Auto IPO Lockup – US$8bn Pre-IPO Release
- Legend Holdings (3396 HK): Synthetic Expert Call Transcript (22 Sep 2026)
- Aequitas: Direct Drive Tech IPO – Expensive Robotics Play, Priced To Perfection
- Iron Ore’s GWH Restocking Is Back in Play, But Mill Margins Lag
- Chery (9973 HK): Synthetic Expert Call Transcript (22 Sep 2026)
- Pre-IPO Shenzhen Camsense Technologies (PHIP Updates) – Some Points Worth the Attention
- Shenzhen Kinwong Electronic IPO: Diversified Circuitry Coming Into Play
- Aequitas: XReal Pre-IPO – Fast Growing Market; Still Burning Cash
- ZJK: 1H26 Revenue Up 37%; AI Infrastructure and Liquid Cooling Orders Secured
Aequitas: Chery Auto IPO Lockup – US$8bn Pre-IPO Release
- Chery Automobile raised around US$1.2bn in its Hong Kong IPO. The lockup on its pre-IPO investors is set to expire soon.
- Chery Auto is a Chinese passenger vehicle company which designs, develops, manufactures and sells passenger vehicles, including internal combustion engine vehicles and new energy vehicles, both domestically and overseas.
- In this note, we will talk about the lockup dynamics and possible placement.
Legend Holdings (3396 HK): Synthetic Expert Call Transcript (22 Sep 2026)
- The recently launched sale of Legend Holdings’ 89.94% stake in Banque Internationale à Luxembourg (BIL) is a critical turning point. It is a forced exit aimed at shrinking the holding company’s massive RMB 143.67 billion debt load and narrowing its steep 75% NAV discount. However, the reported €2.5 billion valuation faces a significant bid-ask spread.
- Monopolizing on domestic unlisted assets will be difficult. While the 1.09 billion yuan restructuring of Joy Wing Mau signals a path toward a Hong Kong listing by late 2027, other non-core assets like Joyvio’s salmon business remain functionally unmonetizable due to lingering litigation and operational bottlenecks.
- The transition of the CEO role to Yu Hao in November 17, 2025, marks a structural shift away from the legacy diversified investment model toward a state-aligned, tech-centric holding structure. With the Chinese Academy of Sciences (CAS) holding a 29.04% stake, all capital allocation and divestments are tightly constrained by Beijing’s scientific and capital repatriation mandates.
Disclaimer: The following transcripts are synthetic, AI-generated on demand, and compiled exclusively from public data sources; no real-word experts were actually interviewed. This content is designed to highlight potential market mispricings, explore compelling lines of inquiry, and suggest strategic questions rather than present verified facts. All specific financial metrics and data points, including market shares, TAM, margins, and growth rates, are AI-estimated approximations. They may be inaccurate and must be independently verified.
Aequitas: Direct Drive Tech IPO – Expensive Robotics Play, Priced To Perfection
- Direct Drive Tech (DDT HK) is looking to raise around US$138m in its upcoming Hong Kong IPO.
- Direct Drive Tech Limited (DDT) is a China-based robotics technology company that specializes in direct drive technology as its core capability.
- In this note, we talk about the company’s past performance and valuations.
Iron Ore’s GWH Restocking Is Back in Play, But Mill Margins Lag
- Elevated portside inventories and a fresh WoW increase suggest Golden Week restocking has yet to translate into meaningful inventory drawdowns.
- Options positioning is turning increasingly constructive, with call OI building at strikes 105 and 110. OI PCR of 0.61 reinforces the bullish bias.
- Managed money extended its bearish positioning for a 12th straight week, trimming long exposure by ~4% while increasing short positions by ~3%.
Chery (9973 HK): Synthetic Expert Call Transcript (22 Sep 2026)
- The expiration of Chery Auto’s post-IPO lockup on September 25, 2026, unlocks an estimated $8 billion in pre-IPO shares, representing a major technical overhang for 9973.HK. This occurs exactly one year after its landmark September 2025 Hong Kong IPO, which raised HK$9.145 billion ($1.17 billion).
- Chery’s financial structure relies heavily on a stark domestic-export margin divergence, which is under severe threat as export regulatory loopholes close. While domestic sales crashed by 40.24% in early 2026 due to crippling dealer channel conflicts, exports have historically carried gross margins in the high teens. However, the European Commission’s June 19, 2026, decision to slap countervailing duties on plug-in hybrids (PHEVs) is closing the regulatory loophole that allowed Chery to bypass the standard 21% extra BEV tariff.
- Capital allocation remains dictated by state-led (SASAC) employment and volume targets rather than return on capital (ROCE) metrics. This dynamic is illustrated by Chery’s aggressive expansion of its offline distribution into eight overlapping domestic dealer networks, which has caused severe price inversions and compromised dealer liquidity to sustain top-line factory utilization.
Disclaimer: The following transcripts are synthetic, AI-generated on demand, and compiled exclusively from public data sources; no real-word experts were actually interviewed. This content is designed to highlight potential market mispricings, explore compelling lines of inquiry, and suggest strategic questions rather than present verified facts. All specific financial metrics and data points, including market shares, TAM, margins, and growth rates, are AI-estimated approximations. They may be inaccurate and must be independently verified.
Pre-IPO Shenzhen Camsense Technologies (PHIP Updates) – Some Points Worth the Attention
- Camsense is fundamentally a provider of spatial sensing solutions for the intelligent robot field. Its core focus is to offer “eyes” for intelligent devices such as vacuum cleaners
- Downward trend in prices is driven by strong bargaining power of downstream customers.When they squeeze profits upward to upstream suppliers to compete for terminal market share, Camsense has little countermeasures
- As a consumer-grade LiDAR supplier with relatively weak profitability and narrow application scope, reasonable P/S should be lower than peers. Comfortable range could be 2.5-3.5x P/S, based on 2026 forecast.
Shenzhen Kinwong Electronic IPO: Diversified Circuitry Coming Into Play
- Kinwong Electronic launched IPO to raise HK$ 5.1B. Company is a PCB manufacturer providing connectivity infrastructure for global customers in automotive electronics, telecommunication & data, smart devices, industrial control etc.
- Kinwong Electronic intends to use the proceeds for research and development, expanding production capacity, repay borrowings, working caital and general corporate purpose.
- Given the overall industry dynamics and company’s focus on cost optimization, price competitiveness and high margin products we can expect a sustained incremental demand scenario in near to medium term.
Aequitas: XReal Pre-IPO – Fast Growing Market; Still Burning Cash
- XREAL Ltd (XREAL HK) is looking to raise up to US$400m in its upcoming Hong Kong IPO.
- It operates a leading global augmented reality (AR) eyewear company.
- In this note, we look at its past performance and other deal dynamics that might impact the listing.
ZJK: 1H26 Revenue Up 37%; AI Infrastructure and Liquid Cooling Orders Secured
- 1H26 revenue rose 36.6%, well above our previous expectations.
- Revenue increased to $33.74M from $24.70M, compared with our prior expectation for 8–12% growth.
- Average selling prices rose 35.3%, reflecting a shift toward more sophisticated, higher-value products, although sales volumes declined.
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