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αSK

Smartkarma's AI Co-Pilot

Smartkarma

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Research Reinvented

Equity Bottom-Up

AVIC (Chengdu) UAS Co Ltd / Equity Bottom-Up

<ul>
  <li>AVIC (Chengdu) UAS is a dominant player in China's military Unmanned Aerial System (UAS) market, primarily known for its Wing Loong series of drones, positioning it as a key asset in the nation's defense infrastructure.</li>
  <li>The company exhibits a high degree of dependency on domestic military contracts, leading to lumpy revenue streams and volatile financial performance, as evidenced by recent declines in revenue and profitability.</li>
  <li>While facing significant geopolitical and competitive risks, the company is poised to benefit from the growing global and domestic demand for military UAS, driven by evolving modern warfare doctrines and increasing defense budgets.</li>
</ul><p><em>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.</em></p>


  AVIC (Chengdu) UAS is a dominant player in China's military Unmanned Aerial System (UAS) market, primarily known for its Wing Loong series of drones, positioning it as a key asset in the nation's defense infrastructure.
  The company exhibits a high degree of dependency on domestic military contracts, leading to lumpy revenue streams and volatile financial performance, as evidenced by recent declines in revenue and profitability.
  While facing significant geopolitical and competitive risks, the company is poised to benefit from the growing global and domestic demand for military UAS, driven by evolving modern warfare doctrines and increasing defense budgets.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Primer: AVIC (Chengdu) UAS Co Ltd (688297 CH) - Jan 2026

Research on Tech Companies

Evelyn Zhang

Thematic (Sector/Industry)

<ul>
<li>In modern warfare, UAVs have unbeatable advantages: zero casualties, low overall cost, strong maneuverability, strong adaptability to the environment, with a higher proportion of payload,  and will be widely used.  </li>
<li>Military UAV growth mainly depends on the defense spending. Israel, the United States, and China dominate the military UAV trade market.</li>
<li>Top listed Chinese producers ranked by UAV revenue (in RMB) in 2021: <a href="https://www.smartkarma.com/entities/avic-chengdu-uas-co-ltd" target="_blank" data-smartkarma-citation="entities:36280:1" rel="noopener">China AVIC (688297 CH)</a> (2.48bn); <a href="https://www.smartkarma.com/entities/zhejiang-nanyang-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:16813:1" rel="noopener">Zhejiang Nanyang Technology Co,Ltd. (002389 CH)</a> (1.12bn); <a href="https://www.smartkarma.com/entities/china-aerospace-times-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:3330:1" rel="noopener">China Aerospace Times Electronics (600879 CH)</a> (780mn).</li>
</ul>


In modern warfare, UAVs have unbeatable advantages: zero casualties, low overall cost, strong maneuverability, strong adaptability to the environment, with a higher proportion of payload,  and will be widely used.  
Military UAV growth mainly depends on the defense spending. Israel, the United States, and China dominate the military UAV trade market.
Top listed Chinese producers ranked by UAV revenue (in RMB) in 2021: China AVIC (688297 CH) (2.48bn); Zhejiang Nanyang Technology Co,Ltd. (002389 CH) (1.12bn); China Aerospace Times Electronics (600879 CH) (780mn).


No Man's Sky: China Military UAV Market Overview

Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

Moore Threads Technology / Index Rebalance

<ul>
<li>In this insight, we have presented our expectations for index changes and passive flows for STAR 50 and STAR 100 which are tech-focused indices in Mainland China.</li>
<li>Currently, we see four ADDs/DELs for the STAR 50 index for the June 2026 review but our expectations can change because there are some names lurking close to the border.</li>
<li>During the June 2026 index rebal event, STAR 50 and STAR 100 could see one-way flows of around US$1.5bn and US$415mn respectively. Some names have multiple days to trade.</li>
</ul>


In this insight, we have presented our expectations for index changes and passive flows for STAR 50 and STAR 100 which are tech-focused indices in Mainland China.
Currently, we see four ADDs/DELs for the STAR 50 index for the June 2026 review but our expectations can change because there are some names lurking close to the border.
During the June 2026 index rebal event, STAR 50 and STAR 100 could see one-way flows of around US$1.5bn and US$415mn respectively. Some names have multiple days to trade.


Quiddity Leaderboard STAR 50/100 Jun26: Discretionary Powers and Borderline Eligibility Issues

Asia Pac ECM and Index Rebal, DZT Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analysed the earning revision of component stocks of STAR50 in the past month.</li>
<li>We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.</li>
<li>We highlighted EPS revision on LOONGSON TECHNOLOGY, TRINA SOLAR, Xinjiang Daqo, SHENGYI ELECTRONICS, QI AN XIN TECHNOLOGY, NATIONAL SILICON INDUSTRY, JINKO SOLAR, Shengyi Electronics, Qi An Xin Technology, Jinko Solar.</li>
</ul>


We analysed the earning revision of component stocks of STAR50 in the past month.
We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.
We highlighted EPS revision on LOONGSON TECHNOLOGY, TRINA SOLAR, Xinjiang Daqo, SHENGYI ELECTRONICS, QI AN XIN TECHNOLOGY, NATIONAL SILICON INDUSTRY, JINKO SOLAR, Shengyi Electronics, Qi An Xin Technology, Jinko Solar.


STAR50 Index Earning Revision (Sep): LOONGSON TECHNOLOGY, TRINA SOLAR, Xinjiang Daqo

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

United Nova Technology   / Index Rebalance

<ul>
<li>There are 3 changes for the <a href="https://www.smartkarma.com/entities/sse-science-and-technology-innovation-board-50-index" target="_blank" data-smartkarma-citation="entities:29279:1" rel="noopener">SSE STAR50 (STAR50 INDEX)</a> and 9 changes for the STAR100 Index. Implementation will take place at the close on 14 June.</li>
<li>
<a href="https://www.smartkarma.com/entities/united-nova-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:40389:1" rel="noopener">United Nova Technology (688469 CH)</a> and <a href="https://www.smartkarma.com/entities/biwin-storage-technology-co-lt" target="_blank" data-smartkarma-citation="entities:40391:1" rel="noopener">Biwin Storage Technology (688525 CH)</a> were not added at the March rebalance since they were consistently loss-making. But they have been added this time.</li>
<li>
<a href="https://www.smartkarma.com/entities/united-nova-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:40389:1" rel="noopener">United Nova Technology (688469 CH)</a> had been trading poorly and then the stock dropped further after non-inclusion in March. That could change now with inclusion confirmed.</li>
</ul>


There are 3 changes for the SSE STAR50 (STAR50 INDEX) and 9 changes for the STAR100 Index. Implementation will take place at the close on 14 June.

United Nova Technology (688469 CH) and Biwin Storage Technology (688525 CH) were not added at the March rebalance since they were consistently loss-making. But they have been added this time.

United Nova Technology (688469 CH) had been trading poorly and then the stock dropped further after non-inclusion in March. That could change now with inclusion confirmed.


STAR50/STAR100 Index Rebalance: Index Committee Flip-Flops on Profitability

China

AVIC (Chengdu) UAS Co., Ltd. develops, manufactures, and distributes UAV (unmanned aerial vehicle) systems and products. The Company produces large fixed-wing long-endurance drones and provides related technical services. AVIC (Chengdu) UAS markets its products across worldwide.

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AVIC (Chengdu) UAS Co Ltd (688297 CH)

Primer: AVIC (Chengdu) UAS Co Ltd (688297 CH) - Jan 2026

AVIC (Chengdu) UAS is a dominant player in China's military Unmanned Aerial System (UAS) market, primarily known for its Wing Loong series of...

αSK

No Man's Sky: China Military UAV Market Overview

With tension ratcheting up across the Taiwan strait, and an ongoing war in Ukraine, the role of UAVs in modern warfare is being accelerated. Will...

Evelyn Zhang

Quiddity Leaderboard STAR 50/100 Jun26: Discretionary Powers and Borderline Eligibility Issues

There are two large cap ADDs that could be fast-tracked into the index but the index provider could use discretionary powers to overrule them....

Janaghan Jeyakumar, CFA

STAR50 Index Earning Revision (Sep): LOONGSON TECHNOLOGY, TRINA SOLAR, Xinjiang Daqo

We analyzed STAR50's consensus for Sep 2025 and highlighted changes of EPS in LOONGSON TECHNOLOGY (688047 CH), TRINA SOLAR (688599 CH), Xinjiang...

Ke Yan, CFA, FRM

STAR50/STAR100 Index Rebalance: Index Committee Flip-Flops on Profitability

There are 3 changes for the STAR50 index and 9 for the STAR100. Some stocks will have same way flows from other index trackers. United Nova Tech is...

Brian Freitas

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