Daily Brief China: Kuang-Chi Technologies , Dawning Information Industry C, ANE Cayman Inc, Meituan, Taste Gourmet, JD Industrial Technology , Mandi, Wuhu Conch Profiles And Science Co., and more

• There are 11 changes for the Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX) with implementation taking place at the close on 12 December.
• Nearly all the changes are in line with forecasts. Jiangsu Zhongtian Technologies Co, Ltd. (600522 CH) is the one surprise addition.
• The adds outperformed the deletes and the CSI300 from June-September but have given back a chunk of the gains since then. Expect positioning to build over the next few days.

• There are 4 constituent changes for the SSE50 Index (SSE50 INDEX) that will be implemented at the close on 12 December.
• Dawning Information Industry C (603019 CH) is a surprise add given the upcoming merger with Hygon Information Technology C (688041 CH). 
• The SSE50 Index adds have underperformed the deletes over the last couple of months and there could be outperformance from here as positioning builds ahead of the implementation of the changes.

• The precondition for the consortium’s privatisation offer for ANE Cayman Inc (9956 HK) has been satisfied. The right to increase the share alternative cap was also satisfied. 
• The consortium has until 12 December to decide whether to increase the share cap. The option helps the consortium gain support from shareholders who would not accept the cash offer. 
• The scheme vote remains low risk, as the offer is attractive relative to historical ranges and peer multiples. The de-rating of peers is also helpful. 

• Back on the 28th October, ANE Cayman (9956 HK), a road freight transportation play, announced an Offer from Centurium Partners, a pre-IPO investor, Temasek, and Singapore-based asset manager True Light.
• The consortium offered HK$12.18/share (best & final) via a Scheme, a 48.54% premium to undisturbed. A scrip alternative (mix & match) was also afforded. Plus a special dividend bolted on.
• Pre-Cons included SAMR signing off. With JPM as the FA, I previously concluded, given JPM’s recent track record, the reg process should be straightforward. Those pre-cons have now been satisfied.

• Meituan (MT)’s revenue growth rate plummeted to 2% YoY in 3Q25.
• The discount campaign has not actually ended after the authorities warned twice.
• We expect that MT’s price has a downside of 30% in the next twelve months.

• Taste Gourmet (8371 HK) reported H1 FY26 results of Revenues/Pat 11.8% YoY/17.8%YoY. Profits were in line with our expectations as the company reined in costs and showed slight margin improvements. 
• Cash continues to pile on the balance sheet, with 242 mn HKD of net cash representing >30% of market capitalization. The company paid an 8-cent semi-annual dividend.
• The stock trades at a 6.8x PE for FY26e, has an 8.6% dividend yield, and plans to grow at a CAGR of at least 15%.

• JD Industrials’ business model integrates the advantageous resources of JD Group and follows “self-operated heavy asset” route.The operation model is to rely on JD Logistics network to achieve efficient performance.
• The platform’s openness of JD Industrials is relatively limited. The entry and listing thresholds for merchants are higher than that of peers, which limits the rapid expansion of product richness.
• P/S is more appropriate because net profit fluctuates greatly and is more suitable for growth-oriented supply chain companies.JD Industrials’ valuation could be higher than ZKH but lower than Ww Grainger.   

• Mandi has filed for a Hongkong IPO. The company which at present operates as a subsidiary of 3SBio Inc will be spun off and separately listed.
• Mandi intends to use the IPO proceeds for funding product expansion, enhance early-stage R&D capabilities, invest in sales and marketing initiatives and, for working capital and general corporate purposes.
• Minoxidil will be the main growth catalyst for now cashing on its leadership position while accelerating the development and commercialization of the pipeline assets will be key for future growth.

• Wuhu Conch Profiles and Science Co., Ltd. is a leading manufacturer of plastic profiles and other building materials in China, facing a challenging domestic construction market. The company has diversified its product portfolio to include energy-saving and environmentally friendly materials, which presents a potential growth avenue.
• The financial performance has been under pressure, with the company reporting net losses in recent years. This is largely attributable to the downturn in the Chinese real estate sector, which is a key end-market for its products.
• Despite the current headwinds, the company’s strong brand recognition, extensive distribution network, and focus on technological innovation provide a solid foundation for future recovery and growth as the construction market stabilizes and demand for higher-value, specialized products increases.

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