Daily Brief China: Zijin Gold International, Zhongji InnoLight, Yangtze Memory Technologies, Yadea, Muyuan Foods Co, Amos Food Group, Standard Robots (Wuxi) and more

• We review the HSLMI universe for potential candidates for the upcoming HSI August 2026 review.
• Three stocks stand out as ADD candidates this cycle, one of them high conviction.
• We also highlight substantial FF and weight changes for CATL.

• Zhongji Innolight has placed its dual-listed H shares at HK$980 per share, approximately a 10% discount to its A shares.  The listing will be the largest in HK since Alibaba.
• Zhongji Innolight is the world’s largest manufacturer of optical transceiver modules, holding 21.2–23.1% global market share in datacom optical modules as of 2025.
• The company supports global cloud and AI computing infrastructure with strong hyperscaler qualification relationships with Google, Amazon, Meta, and Nvidia, its largest customers.

• YMTC is getting ready to complete its IPO in China in 2H 2026/1H 2027. Many investors are lining up to subscribe to the YMTC IPO after the huge CXMT IPO. 
• Reuters has mentioned that YMTC may be pushing internally for a 1 trillion won yuan ($148 billion) valuation target which is 28% of CXMT’s current market cap. 
• Both CXMT and YMTC are quickly emerging as formidable competitors to SK Hynix (000660 KS) and Samsung Electronics (005930 KS). 

• Zhongji Innolight raised HKD 52,891m (USD 6,746m) from its global offering and will list on the HKEx on Thursday, July 30, 2026.
• In our previous notes, we looked at the company’s fundamentals and the deal terms.
• In this note, we provide an update for the IPO before its trading debut.

• Zhongji InnoLight (3308 HK) fixed its IPO price at HK$980, 3% below the maximum, due to the recent weakness of AI-related stocks. Its HA discount is now at just 11.1%.  
• Its peers have retreated an average of 12.1% in a week, and its A-share was off by 10.4%. Futubull’s grey market price was down 1% from the IPO.
• It may dip below IPO on debut, but anything below 15% HA discount is a bargain (HK$936.8). For initial upside, we look for par with A-share, i.e. HK$1,102.

• Zhongji InnoLight (3308 HK) (ZI), one of the world’s largest optical transceiver manufacturers, raised around US$7.8bn in its H-share listing.
• Innolight was the global leader in 2025 in optical modules, with its products being in high demand for data centers.
• We have looked at the past performance and valuations in our previous note. In this note, we talk about the trading dynamics.

• Yadea (1585 HK) has introduced new capabilities, including sodium batteries and battery swapping, that will yield revenue growth. 
• Investments in the overseas manufacturing facilities will produce higher margins and avoid a price war in China. 
• After a big jump in the sales and earnings in FY 2025 while AIMA Technology Group (603529 CH) result is worse, the share price has not really moved. A buying opportunity. 

• Muyuan Foods Co (2714 HK) (MF), a leader in the hog farming industry, raised around US$1.6bn in its H-share listing. Its cornerstone investors will soon be released from their lockup.
• MF is a leading pork company with over 30 years of expertise in the hog farming industry.
• In this note, we will talk about the lockup dynamics and possible placement.

• Own-Brand Growth Vulnerability: While Amos Food has successfully pivoted from OEM to proprietary brands, driving revenue to 2.78 billion yuan in 2025, this growth is highly dependent on “viral” hit-product cycles like Peelerz, which are structurally difficult to sustain and carry lower pricing power than established global brands.
• Severe Tariff & Supply Chain Headwinds: U.S. tariff expenses exploded from 6 million yuan to 108 million yuan between 2023 and 2025, eating 18% of net profit. The planned Vietnam factory, scheduled for late 2026, faces major supply chain maturity constraints and escalating geopolitical risks that limit its effectiveness as a tariff hedge.
• Squeezed Margins & Retail Volatility: Securing shelf space in North American retail (Walmart, Target, Costco) requires high slotting fees, trade promotions, and co-op marketing. This, paired with inflating customer acquisition costs (CAC) and copycat pressure from deep-pocketed legacy players like Haribo, threatens Amos’s long-term operating margins post-IPO.

• Standard Robots (Wuxi) Co., Ltd. is a leader in industrial intelligent mobile robotic solutions, seeking HKEX Main Board listing under Chapter 18C.
• Revenue increased by 54.5% from RMB162.2 million in 2023 to RMB250.5 million in 2024.
• Revenue was RMB162,166 in 2023, RMB250,522 in 2024, and RMB301,493 in 2025.

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