Daily Brief China: Shenzhen Salubris Pharmaceuticals A, Perfect Medical Health Management, Hunan Junxin Environmental Protection, Want Want China, Skyworth, Sirnaomics, Shenzhen Kinwong Electronic, Genfleet Therapeutics, Insilico Medicine and more

• Dongxing Securities (601198 CH) and Cinda Securities (601059 CH) shares will stop trading after 14 September following the merger with China International Capital (601995 CH). 
• There will be buying in China International Capital (601995 CH) from global index trackers at the close on Monday.
• There will be additions and other flows for the CSI 300 Index, CSI 500 Index and the CSI 1000 Index at the time of delisting of Dongxing Securities and Cinda Securities.

• Our 2020 thesis correctly identified Perfect Medical’s cash generation and management discipline, but underestimated how narrow and execution-dependent its moat was.
• The full financial history shows resilience rather than compounding: overseas expansion disappointed, margins compressed sharply, and competitive pressure remained persistent.
• At roughly 9x FY03/2026 earnings with an 11% trailing dividend yield, the stock is interesting again – but the thesis is now stabilization and cash return.

• 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.
• In this note, we talk about the company’s past performance.

• The “Split-Brain” Strategy and Crisis: Want Want China is experiencing an operational bottleneck, highlighted by Chairman Tsai Eng-meng’s August 2026 internal letter calling their 38% Q1 profit plunge a “major operating crisis”. Senior management is paralyzed: they are pushing the R&D team to innovate sugar-free and healthy products, while concurrently incentivizing the sales force to dump legacy, high-sugar, high-margin products like Want Want Milk to meet aggressive short-term volume targets.
• Channel Conflict and Cannibalization: Legacy traditional wholesale channels (which historically represented the core of Want Want’s business) are in a structural decline, down high single-digits. The rapid expansion into hard-discount specialty snack retail (now representing 15% of total revenue) is cannibalizing traditional distributors. Lower-tier distributor channel inventory has ballooned from a healthy 30-day baseline to a dangerous 90 to 100 days.
• Macro and Raw Material Pressures: Recent margin erosion is structural rather than cyclical. Spiking raw materials—with global sugar hitting a multi-month high above 18.36 cents per pound and palm oil hovering around RM 4,966 per tonne—are colliding with high internal M&A hurdle rates (WACC of 15%) that prevent the company from acquiring healthy snack brands defensively, leaving them trapped with declining legacy assets.

• On the 20th January 2026, Skyworth (751 HK) announced an inter-conditional Scheme and concurrent listing of 70%-held Skyworth Photovoltaic (Skyworth PV) on the HKEx, by way of introduction.
• The Dongfeng (489 HK)/Voyah (7489 HK)-like structure appeared fair. The challenge was that Skyworth PV’s key comps were/are A-share listed, and Skyworth PV should trade at an H-share discount.
• Currently trading right at the Scheme cash consideration, assigning zero value for Skyworth PV. Skyworth’s share price is 22% below the pre-spin-off announcement price.  I can see this trending lower.

• VASRO GmbH has initiated coverage of Sirnaomics Ltd. (HKEX: 2257) with a BUY recommendation and a target price of HK$7.07 per share.
• Sirnaomics develops siRNA medicines, drugs that silence a disease-causing gene before it is turned into protein. The hard part is delivery, and beyond the liver very few groups can do it. The company owns two platforms: PNP, which it places among the world’s few extra-hepatic siRNA delivery systems with clinically proven safety, and GalAhead, which it describes as the only programmable RNAi platform for dosing intervals in global clinical development. Four programmes are in human trials, a fifth is IND-ready, and the company holds global rights across them.
• The five years since listing were costly. Accumulated losses reached US$536.8m, spending was cut from US$91.8m in 2022 to US$15.3m in 2025, and headcount fell from 225 to 37. The audit opinion is qualified and going concern is flagged.

• Shenzhen Kinwong Electronic Co., Ltd. is a globally recognized PCB manufacturer, holding the world’s largest market share in automotive electronics PCB. The company is undertaking a primary listing on HKEX.
• Kinwong Electronic is the world’s largest automotive electronics PCB provider with 10.6% market share in 2025, and achieved 14 consecutive years of revenue growth.
• Revenue was RMB15,308,052 thousand in 2025, with a 20.9% growth rate. Gross profit margin decreased to 18.7% by April 30, 2026.

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• Genfleet Therapeutics (2595 HK) (GFT) raised around US$240m in its Hong Kong IPO in September 2025. The lockup on its pre-IPO investors is set to expire soon.
• GFT is a biopharmaceutical company focused on developing novel treatment options in the fields of oncology.
• In this note, we will talk about the lockup dynamics and possible placement.

• Shenzhen Kinwong Electronic (KNWNG HK) is looking to raise about US$600m in its upcoming Hong Kong IPO.
• Kinwong is a leading global printed circuit board (PCB) provider with a comprehensive product portfolio spanning rigid PCBs (RPCBs), flexible printed circuits (FPCs), and other specialized PCBs.
• In this note, we look at the company’s past performance.

• Insilico Medicine (3696 HK)‘s lead asset rentosertib has demonstrated potential for biological age reversal. Data from Phase 2a trial shows 3–4 years reversal in biological age.  
• Recently, the company has announced 1H26 result, with revenue increasing 287% YoY to $106M, and achieved its first profitable half-year since listing, with an adjusted net profit of $36M.
• Execution of additional strategic collaborations to maximize the application and commercial opportunity of Pharma.AI platform will be the near-term catalyst.