Daily Brief China: Shenzhen Transsion Holdings, Skyworth, Wuxi Biologics, Wharf Real Estate Investment Company, Biren Technology, Changzhou Microintelligence, Jiangsu Hengrui Pharmaceuticals, Suzhou Dongshan Precision Manufacturing, Pinnacle Marine Holdings and more

• Firmus pulled its USD 5.5bn ASX IPO. AS Watson’s USD 30bn dual listing was reportedly delayed to 2027, and Moonshot reportedly eyes an HK IPO of up to USD 5bn.
• ESWIN, the week’s only HK listing, raised USD 319m and fell 1.0% on day one. Eight listings in the past month have a median return of -2.5% since IPO.
• On HKEX, one company filed an AP and three posted PHIPs. Transsion’s USD 428m A+H IPO lists on 15 Oct.

• I summarise the latest spreads and newsflow for the merger arb situations covered across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, the Philippines, Thailand, and Chinese ADRs.
• Highest spreads: Skyworth (751 HK), OFX Group (OFX AU), Peet Ltd (PPC AU), Atlantic Lithium (A11 AU), Z Fin (1168 HK), Xin Yuan Enterprises (1748 HK), EQT Holdings (EQT AU). 
• Lowest spreads: Kadoya Sesame Mills (2612 JP), Kakaku.com Inc (2371 JP), FleetPartners Group (FPR AU), Taiyo Holdings (4626 JP), Accent Group (AX1 AU), Gunma Bank (8334 JP). 

• Shenzhen Transsion Holdings (2636 HK), Africa’s largest smartphone seller, is seeking to raise up to US$429 million at an H Share offer price range of HK$35.30-HK$38.80.
• I discussed the H Share listing in Transsion Holdings H Share Listing: The Investment Case. 
• While I have concerns around the fundamentals, the proposed AH discount is attractive on several fronts. 

• WuXi Bio launched a Placement,aiming to raise up to US$500mn.After a significant surge, selling shares at this share price level indicates a feature of cashing out at a high price. 
• Based on HK$51.77-52.31 and 2026 forecast, P/E is 32-33x, higher than our estimate 25-30x P/E.This means the market has already priced in most of growth for WuXi Bio this year.
• Although Wuxi’s affiliated companies have demonstrated solid fundamentals and signs of valuation recovery since 2025, the share reduction by major shareholders has still weakened market confidence in their long-term value

• Structural retail decay from Shenzhen consumption leakage makes Hong Kong commercial property a prime macro short opportunity.
• Wharf REIC offers an institutional-grade, highly liquid vehicle with cheap borrow rates to short this trend safely.
• While PBOC stimulus poses tactical risks, expanding cap rates and permanent shifts in consumer behaviour ensure long-term valuation overhangs.

• Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
• On the IPO front, Jio Platforms is set to launch its US$3bn+ offering this week, while some listings continue to trickle through in Hong Kong. 
• On the placement front, the HK flows picked up post the holidays and we had a look at a few of the upcoming lockup expiries.

• Changzhou Microintelligence Co., Ltd. is an embodied intelligent industrial robotics company designing, developing, and commercializing industrial robots and solutions.
• The company was the largest EIIR product provider in China in 2025 by revenue, with approximately 20.0% market share. It holds over 800 proprietary intellectual properties.
• The company reported net profit of RMB22,528 thousand for five months ended May 31, 2026, but had accumulated losses of RMB142,706 thousand as of May 31, 2026.

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• Jiangsu Hengrui Pharmaceuticals (1276 HK) entered into a license agreement with Novo Nordisk for obesity drug candidate HRS-1596, with potential for once-weekly oral dosing for total deal value of $2.6B.
• The company is expected to launch GLP-1/GIP injectable ribupatide (HRS9531) in early 2027. If launched, injectable ribupatide will be third drug of its class in China market.
• With near-to-market GLP-1 anchor assets, Hengrui is ready to build a leading obesity franchise in China. Although obesity market is competitive, China market is large enough to accommodate multiple players.

• Suzhou Dongshan Precision Manufacturing Co., Ltd. manufactures PCBs, precision components, touch panels, LCMs, and optical transceivers globally.
• The company was ranked as the third-largest PCB supplier in 2025 and seventh among global optical transceiver suppliers.
• The company reported revenue of RMB40,124,859 thousand for 2025, but profit for the year decreased by 44.8% in 2024. Net current assets also decreased significantly by December 31, 2025.

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• Pinnacle Marine Holdings operates at a structural capacity ceiling with 97% yard utilization across its 153,000 sq ft waterfront site, limiting organic top-line expansion without net IPO capital deployment to clear short-term liquidity bottlenecks.
• High leverage (61.3% gearing) and S$5.8M in net current liabilities stem from working capital drag—specifically customer milestone retainages and inventory prepayments for long-lead aluminum marine engines—rather than bad debt or structural unprofitability.
• Pinnacle retains defensible market power in the regional niche for aluminum crew boats and harbor workboats, ranking third in Singapore behind Penguin International and Strategic Marine, but lacks the yard footprint of tier-one yards to capture heavy offshore conversion orders.