Daily Brief China: Semi-Tech Group, Sa Sa International Hldgs, Midea Group, SGX Rubber Future TSR20, Horizon Robotics, Remegen and more

• Semi-Tech Group (1890554D CH) is looking to raise at least US$200m in its upcoming Hong Kong IPO. The deal will be run by Deutsche Bank, CICC and Guotai.
• It is a leading provider of intelligent industrial software solutions in China.
• With strong commercialization capabilities, ST is one of the few China-based advanced-industry intelligent manufacturing software companies to achieve profitability.

• Sa Sa International Hldgs (178 HK)‘s 1.63x P/B is near-trough level, but the recovery in earnings in FY26 (+56.4%) and improving industry figures suggest earnings have bottomed. 
• Its 2Q FY26 turnover grew 8.4%, accelerating from 4.7% in 1Q and -9.7% in FY25. The 1H turnover equals 49.3% of FY26F (vs. 47.2% historically). We see upgrade potential.
• With net cash amounting to 19.3% of the share price, its 15.9x and 12.4x PERs for FY26F and FY27F do not look stretched.

• Midea will achieve double-digit growth in 2025. As domestic home appliance market enters a stage of competition for existing customers, B-end market and overseas markets have become new growth keys.
• The development path of three giants becomes clear – Midea pursues full industry chain synergy with diversified layout/digital capabilities.Haier builds a global brand matrix through high-end/localized operations.Gree is lagging behind.
• For mature industry leading enterprises, 10-18x P/E is reasonable, or market value of RMB430-855bn based on Midea’s 2025 net profit forecast. Considering higher growth, valuation would be higher than Haier.

• U.S. tire shipments projected at a record 340.2 million units in 2025  
•  Dynamics shift, with Chinese tire imports falling and SE Asian imports rising  
• Top players pursue expansion, innovation, and portfolio revamp  

• Horizon Robotics is a leading provider of integrated hardware and software solutions for Advanced Driver-Assistance Systems (ADAS) and autonomous driving (AD) in China, positioning it to capitalize on the country’s rapidly growing smart vehicle market.
• The company is expected to experience significant near-term tailwinds from passive capital inflows due to its inclusion and increased weighting in major stock indices, as highlighted by Smartkarma analyst Brian Freitas.
• While demonstrating explosive revenue growth, the company remains in a high-investment phase, characterized by substantial operating losses and negative cash flow, reflecting the capital-intensive nature of the semiconductor and AI industries.

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• Remegen (9995 HK) recorded revenue of RMB 1.1B, a 48% rise YoY, driven by robust sales growth of telitacicept (treatment of autoimmune diseases) and disitamab vedotin (treatment of solid tumors).
• Remegen entered into a license agreement with Vor Biopharma (telitacicept global rights) and Santen (RC28-E rights in China and other few countries). Upfront payments to reflect in revenues in 2H25.  
• Vor Biopharma is conducting a global multi-center Phase III clinical trial (first patient enrolled in August 2024, in U.S) of telitacicept for the treatment of patients with myasthenia gravis (gMG).