HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/lenovo-group-ltd" target="_blank" data-smartkarma-citation="entities:13359:1" rel="noopener">Lenovo (992 HK)</a>, <a href="https://www.smartkarma.com/entities/aac-technologies-holdings-inc" target="_blank" data-smartkarma-citation="entities:6544:1" rel="noopener">AAC Technologies Holdings (2018 HK)</a>, <a href="https://www.smartkarma.com/entities/byd-electronic-international-co-ltd" target="_blank" data-smartkarma-citation="entities:1927:1" rel="noopener">BYD Electronics (285 HK)</a>, and <a href="https://www.smartkarma.com/entities/tcl-multimedia-technology" target="_blank" data-smartkarma-citation="entities:15654:1" rel="noopener">Tcl Multimedia Technology (1070 HK)</a> are the prime beneficiaries of Trump's tariff exemption.</li>
<li>On average, they have 24.5% of revenue from the US market, and their share price has collapsed 19.8% MTD. They are well set to have a decent rebound.</li>
<li>There will be speculations that more exemptions in other sectors will be granted, and the big losers will see a relief rally. </li>
</ul>



Lenovo (992 HK), AAC Technologies Holdings (2018 HK), BYD Electronics (285 HK), and Tcl Multimedia Technology (1070 HK) are the prime beneficiaries of Trump's tariff exemption.
On average, they have 24.5% of revenue from the US market, and their share price has collapsed 19.8% MTD. They are well set to have a decent rebound.
There will be speculations that more exemptions in other sectors will be granted, and the big losers will see a relief rally. 


China & HK Strategy: Tariff Exemption Beneficiaries

<ul>
<li>Our list of HK-listed industrial companies indicated that the US generated an average of 22.9% of sales. With diversified production bases, higher tariffs may only affect ~10% of revenue.</li>
<li>
<a href="https://www.smartkarma.com/entities/vesync" target="_blank" data-smartkarma-citation="entities:31067:1" rel="noopener">Vesync (2148 HK)</a>, <a href="https://www.smartkarma.com/entities/chervon-holdings-limited" target="_blank" data-smartkarma-citation="entities:35309:1" rel="noopener">Chervon Holdings (2285 HK)</a>, and <a href="https://www.smartkarma.com/entities/aac-technologies-holdings-inc" target="_blank" data-smartkarma-citation="entities:6544:1" rel="noopener">AAC Technologies Holdings (2018 HK)</a> are more exposed given their significant US sales yet most production is still in China. </li>
<li>While the US generated over 50% of the revenue of <a href="https://www.smartkarma.com/entities/techtronic-industries-co-ltd" target="_blank" data-smartkarma-citation="entities:4561:1" rel="noopener">Techtronic Industries (669 HK)</a> and <a href="https://www.smartkarma.com/entities/nexteer-automotive-group-ltd" target="_blank" data-smartkarma-citation="entities:15483:1" rel="noopener">Nexteer Automotive (1316 HK)</a>, they are less exposed given their worldwide manufacturing presence. </li>
</ul>


Our list of HK-listed industrial companies indicated that the US generated an average of 22.9% of sales. With diversified production bases, higher tariffs may only affect ~10% of revenue.

Vesync (2148 HK), Chervon Holdings (2285 HK), and AAC Technologies Holdings (2018 HK) are more exposed given their significant US sales yet most production is still in China. 
While the US generated over 50% of the revenue of Techtronic Industries (669 HK) and Nexteer Automotive (1316 HK), they are less exposed given their worldwide manufacturing presence. 


China & HK Strategy: Stocks Exposed to the US and Higher Tariffs

Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

Equity, Bottom-up Analyst

Investics Research

It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity Bottom-up Research

Equity Bottom-Up

<ul>
<li>Results releases from <a href="https://www.smartkarma.com/entities/stella-international-holdings-limited" target="_blank" data-smartkarma-citation="entities:7610:1" rel="noopener">Stella International (1836 HK)</a> / <a target="_blank" rel="noopener">Crystal International (2232 HK)</a> were contrasting, with the former showing a 19% decline in profitability and the latter a 11% increase, despite headwinds.</li>
<li>We discuss <a href="https://www.smartkarma.com/entities/fountain-set-holdings-limited" target="_blank" data-smartkarma-citation="entities:11520:1" rel="noopener">Fountain Set Hldgs (420 HK)</a> and the likelihood of a dividend increase, coupled with its 59% discount to NCAV, making it a net-net. </li>
<li>Our top pick is <a href="https://www.smartkarma.com/entities/jnby-design-limited" target="_blank" data-smartkarma-citation="entities:23642:1" rel="noopener">JNBY Design (3306 HK)</a>, still for its high ROCE &gt;30%, coupled with a good net margin, single-digit profit growth, 9.5x PE, and ~7% dividend yield. </li>
</ul>


Results releases from Stella International (1836 HK) / Crystal International (2232 HK) were contrasting, with the former showing a 19% decline in profitability and the latter a 11% increase, despite headwinds.
We discuss Fountain Set Hldgs (420 HK) and the likelihood of a dividend increase, coupled with its 59% discount to NCAV, making it a net-net. 
Our top pick is JNBY Design (3306 HK), still for its high ROCE &gt;30%, coupled with a good net margin, single-digit profit growth, 9.5x PE, and ~7% dividend yield. 


HK-Listed Apparel & Footwear Screener August 2026: 12 Stock Universe With Average Yield 8.8%

Doing bespoke work since 2002....., Custom Products Group

Patrick Hansen

Doing bespoke work since 2002.....

Custom Products Group

Custom Products was started 14 years ago at Lehman Brothers by current co-founder Patrick Hansen, CFA. After 3 years at Lehman, Patrick moved the team to Macquarie Securities where Simon Rigney (co-founder) joined. 3 years ago we took Custom Products independent. 

Our core strength can be summed up three words. 1- Customization - we have very little off the shelf products and most work is done on a one on one bespoke basis. 2- Speed - We pride ourselves in our ability to get requests back to the client very quickly. 3- Confidentiality - We do not redistribute. There is no grace period where we wait a week and then mass blast. Any request stops with that client.

<p>Inspired by helping my son review for his first Accounting Final, I went and screened for names in Asia that have a less than strong balance sheet. We started with Debt to Equity and then continued to narrow the screen by Current, then Quick and finally Cash Ratios. The largest names to make the screen was <a href="https://www.smartkarma.com/entities/947" target="_blank" data-smartkarma-citation="entities:947:1">Advanced Info Service Pcl (ADVANC TB)</a> with a 460% debt to Equity ratio and a .42x current ratio. Other current liabilities is almost as big as total current assets.</p><h2>Screen Criteria</h2><ol><li>Debt to…</li></ol>

Inspired by helping my son review for his first Accounting Final, I went and screened for names in Asia that have a less than strong balance sheet. We started with Debt to Equity and then continued to narrow the screen by Current, then Quick and finally Cash Ratios. The largest names to make the screen was Advanced Info Service Pcl (ADVANC TB) with a 460% debt to Equity ratio and a .42x current ratio. Other current liabilities is almost as big as total current assets.Screen CriteriaDebt to…

<ul>
<li>
<a href="https://www.smartkarma.com/entities/jnby-design-ltd" target="_blank" data-smartkarma-citation="entities:23642:1" rel="noopener">JNBY Design Ltd (3306 HK)</a> and <a href="https://www.smartkarma.com/entities/nameson-holdings-ltd" target="_blank" data-smartkarma-citation="entities:22670:1" rel="noopener">Nameson Holdings (1982 HK)</a> continue to be our preferred picks. </li>
<li>
<a target="_blank" rel="noopener">Stella International (1836 HK)</a> reported a weak result, with profits in FY25/H2FY25 down 19% YoY/26.5% YoY, but dividends remained solid, with the FY25 dividend at 1.45 HKD/share (~10.1% yield).</li>
<li>
<a href="https://www.smartkarma.com/entities/crystal-international-group" target="_blank" data-smartkarma-citation="entities:25979:1" rel="noopener">Crystal International (2232 HK)</a> reported strong results, with revenues/profits up 6% and 12% YoY, respectively. The company upped its dividend to 40.8 cents/share (~6.5% yield). </li>
</ul>



JNBY Design Ltd (3306 HK) and Nameson Holdings (1982 HK) continue to be our preferred picks. 

Stella International (1836 HK) reported a weak result, with profits in FY25/H2FY25 down 19% YoY/26.5% YoY, but dividends remained solid, with the FY25 dividend at 1.45 HKD/share (~10.1% yield).

Crystal International (2232 HK) reported strong results, with revenues/profits up 6% and 12% YoY, respectively. The company upped its dividend to 40.8 cents/share (~6.5% yield). 


HK-Listed Apparel & Footwear Screener March 2026: Stella FY25 Result Update

Hong Kong

Crystal International is a global apparel manufacturer that produces a diversified portfolio of products, including lifestyle wear, denim, intimate apparel, sweaters, sportswear, and outdoor apparel. The company serves leading global brands through a "co-creation" business model. It was founded in Hong Kong in 1970.

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Crystal International (2232 HK)

China & HK Strategy: Tariff Exemption Beneficiaries

Lenovo, AAC Technologies, BYD Electronics, and Tcl Multimedia are set to benefit from Trump's tariff exemption, with potential for a rebound in...

Osbert Tang, CFA

China & HK Strategy: Stocks Exposed to the US and Higher Tariffs

With the Trump administration announcing global reciprocal tariffs, even companies with manufacturing presence in other countries will suffer...

Osbert Tang, CFA

HK-Listed Apparel & Footwear Screener August 2026: 12 Stock Universe With Average Yield 8.8%

Our textile screener universe is a high-yield value hunting ground. The average yield on the basket of stocks is 8.8%. Following a recent market...

Sameer Taneja

Bad Balance Sheets in Asia....

Inspired by helping my son review for his first Accounting Final, I went and screened for names in Asia that have a less than strong balance sheet....

Custom Products Group

HK-Listed Apparel & Footwear Screener March 2026: Stella FY25 Result Update

We go into detail on Stella International's 1836 HK results for FY25 and our thoughts on the sustainability of the ~10.1% divident yield.

Sameer Taneja

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China & HK Strategy: Tariff Exemption Beneficiaries

​Lenovo, AAC Technologies, BYD Electronics, and Tcl Multimedia are set to benefit from Trump's tariff exemption, with potential for a rebound in...

Osbert Tang, CFA

China & HK Strategy: Stocks Exposed to the US and Higher Tariffs

With the Trump administration announcing global reciprocal tariffs, even companies with manufacturing presence in other countries will suffer...

Osbert Tang, CFA

HK-Listed Apparel & Footwear Screener August 2026: 12 Stock Universe With Average Yield 8.8%

Our textile screener universe is a high-yield value hunting ground. The average yield on the basket of stocks is 8.8%. Following a recent market...

Sameer Taneja

Bad Balance Sheets in Asia....

Inspired by helping my son review for his first Accounting Final, I went and screened for names in Asia that have a less than strong balance sheet....

Custom Products Group

HK-Listed Apparel & Footwear Screener March 2026: Stella FY25 Result Update

We go into detail on Stella International's 1836 HK results for FY25 and our thoughts on the sustainability of the ~10.1% divident yield.

Sameer Taneja

Lenovo, AAC Technologies, BYD Electronics, and Tcl Multimedia are set to benefit from Trump's tariff exemption, with potential for a rebound in...