Daily Brief China: CXMT Corporation, Plover Bay Technologies, Meituan, Delton Technology, Galaxy Entertainment Group, RoboTechnik Intelligent Technology, Eoptolink Technology , Hunan Junxin Environmental Protection, KFM Kingdom, Hai Robotics Innovation Group and more

• 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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