Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

<ul>
<li>In this insight, we take a look at a group of names with reasonably high likelihood of being involved in index changes for the Hang Seng Index in March 2024.</li>
<li>The index changes for the March 2024 index rebal will be announced on 16th February 2024.</li>
<li>While the Hang Seng Index selection process is highly subjective, we continue to believe that identifying eligible names and grouping them by conviction level could be a valuable exercise.</li>
</ul>


In this insight, we take a look at a group of names with reasonably high likelihood of being involved in index changes for the Hang Seng Index in March 2024.
The index changes for the March 2024 index rebal will be announced on 16th February 2024.
While the Hang Seng Index selection process is highly subjective, we continue to believe that identifying eligible names and grouping them by conviction level could be a valuable exercise.


Quiddity Leaderboard for Hang Seng Index Mar 24: More Room Being Created for IT Names?

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

<ul><li>We reiterate BUY rating on BYDE after it preannounced strong FY23 earnings growth of 110-123% YoY, with mid-point 2%/3% above our/consensus estimates.</li><li>For 4Q23, net profit delivered strong growth of 57% YoY. As stated in our note last week, we believe recent stock correction was mainly due to concerns on slower smartphone recovery in 1Q24, NEV biz price pressure and Jabil’s casing earnings uncertainties.</li><li>We believe market concern is overdone given 1) Huawei’s high-end model comeback likely to boost shipments and ASP hikes on titanium upgrade, 2) solid growth for NEV biz on new product ramp-up, parentco orders and new orders wins, and 3) sales synergies from Jabil’s acquisition. After recent correction, the stock now trades at 11.2x FY24E P/E, which is attractive in our view. </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 reiterate BUY rating on BYDE after it preannounced strong FY23 earnings growth of 110-123% YoY, with mid-point 2%/3% above our/consensus estimates.For 4Q23, net profit delivered strong growth of 57% YoY. As stated in our note last week, we believe recent stock correction was mainly due to concerns on slower smartphone recovery in 1Q24, NEV biz price pressure and Jabil’s casing earnings uncertainties.We believe market concern is overdone given 1) Huawei’s high-end model comeback likely to boost shipments and ASP hikes on titanium upgrade, 2) solid growth for NEV biz on new product ramp-up, parentco orders and new orders wins, and 3) sales synergies from Jabil’s acquisition. After recent correction, the stock now trades at 11.2x FY24E P/E, which is attractive in our view. 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.

BYDE (285 HK) - FY23 Positive Profit Alert Above Expectations

<ul><li>We believe BYDE’s recent stock tumble reflected market concerns on smartphone demand recovery, NEV pricing pressure and Jabil’s biz uncertainties.</li><li>After we spoke to BYDE mgmt. this week, we remain positive on Huawei’s comeback and expect Android recovery and titanium upgrade will be positive to shipment/ASP into 1H24E.</li><li>Mgmt. also expected high growth for NEV biz in 2024 thanks to new product rampup, parentco orders and new domestic &amp; overseas 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 believe BYDE’s recent stock tumble reflected market concerns on smartphone demand recovery, NEV pricing pressure and Jabil’s biz uncertainties.After we spoke to BYDE mgmt. this week, we remain positive on Huawei’s comeback and expect Android recovery and titanium upgrade will be positive to shipment/ASP into 1H24E.Mgmt. also expected high growth for NEV biz in 2024 thanks to new product rampup, parentco orders and new domestic &amp; overseas 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.

BYDE (285 HK) - Market Concerns Overdone; Strong NEV and Jabil Mobile Synergies Ahead

APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/guming-holdings-limited" target="_blank" data-smartkarma-citation="entities:40622:1" rel="noopener">Guming Holdings (GUM HK)</a> (Guming) is looking to raise US$300m in its upcoming Hong Kong IPO.</li>
<li>Guming Holdings (Guming) is a maker of freshly-made beverages in China.</li>
<li>In this note, we will talk about the not so positive aspects of the deal.</li>
</ul>



Guming Holdings (GUM HK) (Guming) is looking to raise US$300m in its upcoming Hong Kong IPO.
Guming Holdings (Guming) is a maker of freshly-made beverages in China.
In this note, we will talk about the not so positive aspects of the deal.


Guming Holdings (Goodme) Pre-IPO - The Negatives - Growth Sustainability Remains a Question Mark

<ul>
<li>
<a href="https://www.smartkarma.com/entities/guming-holdings-limited" target="_blank" data-smartkarma-citation="entities:40622:1" rel="noopener">Guming Holdings (GUM HK)</a> (Guming) is looking to raise US$300m in its upcoming Hong Kong IPO.</li>
<li>Guming Holdings (Guming) is a maker of freshly-made beverages in China.</li>
<li>In this note, we will talk about the positive aspects of the deal.</li>
</ul>



Guming Holdings (GUM HK) (Guming) is looking to raise US$300m in its upcoming Hong Kong IPO.
Guming Holdings (Guming) is a maker of freshly-made beverages in China.
In this note, we will talk about the positive aspects of the deal.


Guming Holdings (Goodme) Pre-IPO - The Positives - Benefited from Scaling Its Store Network

China

BYD Electronic (International) Co., Ltd. manufactures and sells handset components and modules, and provides assembly services for mobile phones. The company offers one-stop product solutions leveraging electronic information, AI, 5G, and IoT technologies, with its business spanning smartphones, computers, new energy vehicles, smart home solutions, and communication equipment. It was incorporated in 2007 and is headquartered in Shenzhen, China.

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BYD Electronic (285 HK)

Quiddity Leaderboard for Hang Seng Index Mar 24: More Room Being Created for IT Names?

The index changes for the Hang Seng Index for the March 2024 index rebal event will be announced on 16th February 2024. Although the index...

Janaghan Jeyakumar, CFA

BYDE (285 HK) - FY23 Positive Profit Alert Above Expectations

We reiterate BUY rating on BYDE after it preannounced strong FY23 earnings growth of 110-123% YoY, with mid-point 2%/3% above our/consensus estimates.

CMB International

BYDE (285 HK) - Market Concerns Overdone; Strong NEV and Jabil Mobile Synergies Ahead

We believe BYDE’s recent stock tumble reflected market concerns on smartphone demand recovery, NEV pricing pressure and Jabil’s biz uncertainties.

CMB International

Guming Holdings (Goodme) Pre-IPO - The Negatives - Growth Sustainability Remains a Question Mark

Guming Holdings (GUM HK) (Guming) is looking to raise US$300m in its upcoming Hong Kong IPO. In this note, we will talk about the not so positive...

Clarence Chu

Guming Holdings (Goodme) Pre-IPO - The Positives - Benefited from Scaling Its Store Network

Guming Holdings (GUM HK) (Guming) is looking to raise US$300m in its upcoming Hong Kong IPO. In this note, we will talk about the positive aspects...

Clarence Chu

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