Daily Brief China: Knowledge Atlas Technology, Guangzhou Shiyuan Electronic Technology Company, Luxshare Precision Industry, Peric Special Gases, Ten Pao Group, Hubei Dinglong, ChangXin Memory Technologies Inc, Yangtze Optical Fibre and Cable and more

• Knowledge Atlas Technology (2513 HK) (Zhipu) is looking to raise around US$4.3bn via a primary placement.
• Zhipu is one of the leading players in China’s domestic LLM space. Its IPO linked lockup had recently expired.
• In this note, we will talk about the placement and run the deal through our ECM framework.

• The company is a global leader in intelligent control, specializing in LCD controller boards and IFPDs for education and enterprise, offering intelligent devices and solutions.
• The company is a global leader in education IFPDs (17.0% market share) and LCD controller boards (24.4% market share) in 2025, with revenue increasing 23.9% in 3M 2026.
• Revenue reached RMB24,353,884 in 2025, but gross profit margin decreased from 24.5% (2023) to 19.6% (2025), and gearing ratio increased to 39.0% (3M 2026).

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• Luxshare Precision, a consumer electronics precision components and EMS manufacturer, raised HKD 24,039.1m (USD 3,089.9m) in net proceeds and will list on the HKEX on Thursday, July 9, 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.

• Peric Special Gases is a leading domestic supplier of electronic special gases in China, with a dominant market position in key products like tungsten hexafluoride (WF6).
• The company is strategically positioned to benefit from the rapid growth of China’s semiconductor industry, which is driven by government support and increasing domestic demand for advanced electronics.
• Financial performance shows strong revenue growth, although margins have experienced some volatility. Future growth is supported by capacity expansions for core products, but the company faces risks from geopolitical tensions and reliance on the cyclical semiconductor market.

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• On the 14th May 2026, Ten Pao (1979 HK), a power-supply and charging device manufacturer, announced the spin-off of its 92.4091%-held charging device arm via an A-share listing.
• Shares gained 21% on the news – which were promptly given back, and then some, with shares now down 17% from undisturbed. 
• A circular is now out. A shareholder vote on the carve out has been waived. The transaction requires CSRC approval. 

• Hubei Dinglong Co., Ltd. is an innovative leader in materials application for critical industries in China, providing upstream integrated materials and solutions for semiconductor industries.
• Hubei Dinglong is the largest domestic CMP Pads and OLED coating-type functional materials provider in China, holding 38.5% market share in 2025.
• While 2025 revenue was RMB2,467,551 and profit RMB743,355, net cash used in investing activities was RMB1,102,873, and cash equivalents decreased by RMB272.1 million.

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• CXMT (1726722D CH) aims to raise Rmb29.5bn in its IPO in the A-share STAR market. It is rapidly gaining global market share, which is its key attractiveness.
• It is a beneficiary of a solid industry and demand outlook. It has a leadership position in China’s DRAM market and high competitiveness built on its technological strength. 
• At just 2.8x PER for FY26, based on 10% share capital enlargement, our initial assessment is that it is priced cheaper than global peers. 

• Luxshare Precision Industry (2475 HK) (LP), a precision intelligent manufacturer, raised around US$3.5bn in its H-share listing.
• LP provides cross-sector, vertically integrated development and intelligent manufacturing solutions—from components and modules to systems—for global clients across consumer electronics, automotive electronics, communication and data centers, and other end markets.
• We have looked at the past performance and valuations in our previous note. In this note, we talk about the trading dynamics.

• Luxshare Precision Industry (2475 HK) priced its H Share at HK$63.28, raising HK$24,266.2 million (US$3.1 billion) in gross proceeds. The H Share will be listed tomorrow.
• I discussed the H Share listing in Luxshare H Share Listing (2475 HK): The Investment Case. 
• The H Share listing price implies a 12.1% AH discount (based on the last close of the A Share price), which is unattractive.

• The only fibre maker running all preform processes, with top global share, being repriced from a telecom cyclical to AI infrastructure — 1Q26 operating margin tripled to 22% from 8%.
• After a ~46% de-rating from HK$282 (22 Jun) to HK$151.90, spot implies just a ~13x FY2030E EV/EBITDA exit multiple — under half the peer average, pricing in near-distressed terminal economics.
• We initiate BUY, TP HK$170 (+12%), on a DCF-led blend (60/20/20). Even a deliberately conservative HK$150 DCF anchors the call; probability-weighted EV is HK$180 (+18%).