Index Rebal Trades & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal Trades & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

AAC Technologies Holdings / Index Rebalance

<ul>
<li>The HSTECH Index tracks the performance of the top 30 technology companies listed in Hong Kong that have high business exposure to certain technology themes.</li>
<li>The official index changes and indicative weights for the December 2025 index rebal event will be announced publicly after the close on Friday 21st November 2025.</li>
<li>We continue to expect one index change for December 2025 and we estimate there to be capping flows of ~US$1.9bn one-way.</li>
</ul>


The HSTECH Index tracks the performance of the top 30 technology companies listed in Hong Kong that have high business exposure to certain technology themes.
The official index changes and indicative weights for the December 2025 index rebal event will be announced publicly after the close on Friday 21st November 2025.
We continue to expect one index change for December 2025 and we estimate there to be capping flows of ~US$1.9bn one-way.


Quiddity Leaderboard HSTECH Dec25: AAC Tech up 9% Vs Peer; ~US$1.9bn One-Way; Announcement Soon

<ul>
<li>The HSTECH Index tracks the performance of the top 30 technology companies listed in Hong Kong that have high business exposure to certain technology themes.</li>
<li>In this insight, we take a look at our final expectations of index changes and the resultant capping flows for HSTECH index rebal event in December 2025.</li>
<li>We expect one index change and roughly US$1.7bn in one-way index flows in December 2025.</li>
</ul>


The HSTECH Index tracks the performance of the top 30 technology companies listed in Hong Kong that have high business exposure to certain technology themes.
In this insight, we take a look at our final expectations of index changes and the resultant capping flows for HSTECH index rebal event in December 2025.
We expect one index change and roughly US$1.7bn in one-way index flows in December 2025.


Quiddity Leaderboard HSTECH Dec25: Final Ranks; US$1.7bn One-Way

<ul>
<li>The HSTECH Index tracks the performance of the top 30 technology companies listed in Hong Kong that have high business exposure to certain technology themes.</li>
<li>In this insight, we take a look at the potential index changes and the resultant capping flows for HSTECH index rebal event in December 2025.</li>
<li>We expect one index change for the HSTECH index in December 2025 based on the latest available data.</li>
</ul>


The HSTECH Index tracks the performance of the top 30 technology companies listed in Hong Kong that have high business exposure to certain technology themes.
In this insight, we take a look at the potential index changes and the resultant capping flows for HSTECH index rebal event in December 2025.
We expect one index change for the HSTECH index in December 2025 based on the latest available data.


Quiddity Leaderboard HSTECH Dec25: One Index Change Likely; US$650mn One-Way with Capping

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

AAC Technologies Holdings / Equity Bottom-Up

<ul><li>AAC’s 1H25 revenue/NP (+18%/63% YoY) were in-line with our/consensus estimates on solid sale growth and one-off fair value gains (PSS), despite lower GPM at 20.7% (vs 21.5%/22.5% in 1H24/2H24) given seasonality and product transitions.</li><li>During the earnings call, mgmt. guided a solid set of sales (2H growth higher than 1H growth) and GPM (FY25E GPM above FY24), which should ease investor concerns over GPM miss and demand uncertainties.</li><li>We believe the market concern is overdone and recommend to accumulate on corrections, as we see AAC as the major beneficiary of AI-driven spec upgrade cycle (acoustics/optics/MEMS/VC), capturing opportunities in AI/foldable phones/AI glasses/robotics. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

AAC’s 1H25 revenue/NP (+18%/63% YoY) were in-line with our/consensus estimates on solid sale growth and one-off fair value gains (PSS), despite lower GPM at 20.7% (vs 21.5%/22.5% in 1H24/2H24) given seasonality and product transitions.During the earnings call, mgmt. guided a solid set of sales (2H growth higher than 1H growth) and GPM (FY25E GPM above FY24), which should ease investor concerns over GPM miss and demand uncertainties.We believe the market concern is overdone and recommend to accumulate on corrections, as we see AAC as the major beneficiary of AI-driven spec upgrade cycle (acoustics/optics/MEMS/VC), capturing opportunities in AI/foldable phones/AI glasses/robotics. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

AAC Tech (2018 HK) - 1H25 In-Line Despite GPM Dip

<ul><li>We estimate AAC to deliver strong revenue/net profit growth of 24%/66% YoY in 1H25E, driven by 1) Acoustics/automotive PSS: Android master-SLS/combo speaker upgrade, AI glasses orders and domestic client wins in auto acoustics;</li><li>2) Electromagnetic drive: haptics spec upgrade and new product ramp-up;</li><li>3) Precision mechanics: Android foldable phone casing, VC in AI phones and hinge order wins...</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We estimate AAC to deliver strong revenue/net profit growth of 24%/66% YoY in 1H25E, driven by 1) Acoustics/automotive PSS: Android master-SLS/combo speaker upgrade, AI glasses orders and domestic client wins in auto acoustics;2) Electromagnetic drive: haptics spec upgrade and new product ramp-up;3) Precision mechanics: Android foldable phone casing, VC in AI phones and hinge order wins...Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

AAC Tech (2018 HK) - 1H25 Preview: Structural Upgrade Cycle Across Multiple Segments

China

AAC Technologies Holdings Inc designs, develops and manufactures a broad range of miniaturized components that include speakers, receivers and microphones in the acoustic segment and others such as haptics vibrators, RF and antennas, and optical lenses. AAC's products are found in mobile devices such as smartphones, tablets, wearables, ultrabooks, notebooks and electronic book-readers.

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AAC Technologies Holdings (2018 HK)

Quiddity Leaderboard HSTECH Dec25: AAC Tech up 9% Vs Peer; ~US$1.9bn One-Way; Announcement Soon

We continue to expect AAC Technologies Holdings (2018 HK) to outperform Sunny Optical Technology Group (2382 HK) over the next few week until the...

Janaghan Jeyakumar, CFA

Quiddity Leaderboard HSTECH Dec25: Final Ranks; US$1.7bn One-Way

We see ASM Pacific Technology (522 HK) as a high-conviction DEL and we see AAC Technologies Holdings (2018 HK) as a low-conviction ADD.

Janaghan Jeyakumar, CFA

Quiddity Leaderboard HSTECH Dec25: One Index Change Likely; US$650mn One-Way with Capping

AAC Technologies could replace ASMPT in the HSTECH index in December 2025. This could trigger one-way flows of US$650mn including capping.

Janaghan Jeyakumar, CFA

AAC Tech (2018 HK) - 1H25 In-Line Despite GPM Dip

AAC’s 1H25 revenue/NP (+18%/63% YoY) were in-line with our/consensus estimates on solid sale growth and one-off fair value gains (PSS), despite...

CMB International

AAC Tech (2018 HK) - 1H25 Preview: Structural Upgrade Cycle Across Multiple Segments

We estimate AAC to deliver strong revenue/net profit growth of 24%/66% YoY in 1H25E, driven by 1) Acoustics/automotive PSS: Android master-SLS...

CMB International

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