Daily Brief China: Momenta Global, Zhongji InnoLight, Guangzhou Tinci Materials Technology, DST Sustainable Technology Shenzhen Co Ltd, Major Holdings, Suzhou Dongshan Precision A, Changzhou Microintelligence, Dynamic Electronics, Plover Bay Technologies, LONGi Green Energy Technology and more

• We screen third-quarter listings ahead of the HSCI fast-entry result, due on 20 Nov 2026 after market close.
• Unlike September, the December cycle adds only third-quarter listings, by market value coverage within the HSCI.
• Three stocks are screened as high-conviction ADD candidates this cycle.

• There were 31 new listings on the Hong Kong Exchanges and Clearing (388 HK) in Q3, of which 14 were A/H listings.
• We forecast 5 additions to the HSCI in December and 2 of those additions will then be added to Southbound Stock Connect. SHEIN was already added to the index earlier.
• As a stock with Weighted Voting Rights (WVR), Momenta Global (6880 HK) will need to wait till early February to be added to Southbound Stock Connect.

• Guangzhou Tinci Materials Technology (TINCI HK), the world’s largest lithium-ion battery electrolyte supplier, is premarketing an H-share offering, which could raise about US$400–500 million.
• It makes electrolytes and their core compositions (LiPF6, LiFSI, and additives), cathode materials, and battery adhesives for EV, energy storage (ESS), and consumer battery makers.
• The investment case is cautious: Tinci is an integrated, low-cost leader in a growing market, but 1H26 earnings reflect a price spike, revenue is concentrated, and the FCF turned negative.

• DST Sustainable Technology Shenzhen Co Ltd (2659720D HK) DST Sustainable Technology is looking to raise US$400m in its upcoming Hong Kong IPO.
• DST Sustainable Technology (Shenzhen) is a leading provider of intelligent logistics electric vehicle (EV) management solutions in China.
• In this note, we look at the company’s past performance.

• Subdued Top-Line Trajectory and Restructuring Progress: Major Holdings Limited (1389 HK) continues to navigate prolonged top-line contraction, with revenue declining from HK$63.04M in FY2024 to HK$52.76M in FY2026 (a 3-year CAGR of -10.84%). Nevertheless, aggressive operational streamlining and reduced inventory impairment provisions enabled a gross margin recovery to 12.19% and a significant reduction in attributable net loss to -HK$1.85M in FY2026 from -HK$13.36M in FY2025.
• Persistent Cash Burn and Balance Sheet Strain: Despite earnings loss containment, operating cash flow remained deeply negative at -HK$5.33M in FY2026 and -HK$12.20M in FY2025, driven by tied-up working capital in slow-moving inventory and constrained trade credit terms. Free cash flow stood at -HK$5.33M in FY2026, leading to a sustained drawdown of cash balances and zero dividend payouts over the last three fiscal years.
• Unfavourable Risk-Reward Profile at Current Valuation: At the last closing price of HK$0.52, Major Holdings carries a market capitalisation of approximately HK$288.25M against reported net assets of HK$107.76M, implying a Price-to-Book multiple of ~2.67x. Given ongoing operational losses, micro-cap liquidity constraints, concentrated board leadership, and severe competitive intensity within Hong Kong luxury wine retail, the risk-adjusted return profile remains uncompelling for institutional capital.

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• Suzhou Dongshan Precision A (002384 CH) (SDPM), a global PCB and other component provider, aims to raise up to US$3bn in its H-share listing.
• SDPM was the third largest PCB supplier and seventh largest global transceiver supplier by revenue in 2025, according to CIC.
• We have looked at the company’s past performance in our previous note. In this note, we talk about the recent updates and likely A/H premium.

• EIIR transition drives margin expansion: Changzhou Microintelligence’s shift from traditional industrial automation hardware to Embodied Intelligent Industrial Robots (EIIR) increased its overall gross margin from 42.4% in 2023 to 48.4% in 2025, with high-margin EIIR units (gross margin 53.5% in 2025) now representing 57.0% of total revenue (RMB 453.3 million).
• Payback threshold sits at 14–18 months: Industrial customers in 3C electronics and automotive require hard payback periods under 18 months and an IRR exceeding 25% before approving EIIR deployment; adoption is driven by labor cost replacement, defect reduction in high-precision assembly, and real-time yield optimization rather than general-purpose automation.
• Operating cash flow inflection proves commercial viability: Net cash flow from operating activities swung from negative RMB 154.0 million in 2024 to positive RMB 141.0 million in 2025, alongside GAAP net profit rebounding to RMB 22.5 million in the first five months of 2026, confirming that upfront R&D investments (RMB 235.0 million in 2025) are yielding scalable software-hardware leverage.

• Global Leadership in Automotive HDI and AI Storage: Dynamic Electronics occupies the #1 global market share in automotive High-Density Interconnect (HDI) PCBs (Frost & Sullivan) and ranks #3 globally in memory module and AI data storage PCBs. The company provides mission-critical interconnects to leading global Tier-1 automotive suppliers (including Continental, Bosch, Valeo, and Aptiv) and major hyperscale computing customers.
• Severe Near-Term Margin Squeeze and Net Loss: Despite strong revenue momentum—with FY2025 revenue rising 15.3% YoY to RMB 4.75bn and 1H2026 revenue accelerating 33.3% YoY to RMB 2.91bn—the company swung to a net loss of RMB 191mn in 1H2026. Profitability was severely undermined by escalating raw material costs (copper/CCL), limited pricing pass-through resulting in automotive gross margin compressing to 2.8%, and RMB 171mn in net foreign exchange losses.
• Strategic Global Footprint Pivot to Thailand: To mitigate geopolitical friction and capture AI computing demand, Dynamic is investing over RMB 3.3bn in its Prachinburi, Thailand manufacturing facility. While initial ramp-up costs and unabsorbed depreciation have depressed near-term earnings, the commercial scaling of advanced mSAP and high-layer-count HDI lines positions Dynamic for high-end market share gains as global supply chains re-shore.

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• Starlink’s planned entry into US mobile carrier service adds another bondable network and should lower the cost of enterprise data plans, expanding the use case for Peplink’s SpeedFusion multi-WAN bonding.
• We expect 18% YoY growth in FY26, stable inventory, and deeper Starlink back-end integration; the NASDAQ spin-off of the North American business is now expected in 2Q 2027.
• Based on FY26e net income of US$56.6m (+24% YoY), 44.0% EBITDA margin; FY25 ROE 78.9%; the stock trades at 19.0x P/E, 15.0x EV/EBITDA, 5.0% yield.

• Private cleantech is not short of capital; it is short of proof.
• Climate-tech venture and growth funding reached US$26.1bn in 1H26A on one provider’s count, yet deal numbers fell 25% and about a third of the money went to data centres.
• We examine whether the main risk has moved from technology to commercial and legal diligence.