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

Index Rebalance

MetaX Integrated Circuits / Index Rebalance

<ul>
<li>With the review period nearly complete, we forecast 4 constituent 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 10 constituent changes for the STAR100 Index in June.</li>
<li>Estimated turnover is 6.7% 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 13.9% for the STAR100 Index. The estimated round-trip net trade is CNY 20.15bn (US$2.95bn).</li>
<li>The forecast adds have outperformed the forecast deletes over the last few weeks and months. The forecast deletes have been pressured by ETF redemptions as momentum continues in the adds.</li>
</ul>


With the review period nearly complete, we forecast 4 constituent changes for the SSE STAR50 (STAR50 INDEX) and 10 constituent changes for the STAR100 Index in June.
Estimated turnover is 6.7% for the SSE STAR50 (STAR50 INDEX) and 13.9% for the STAR100 Index. The estimated round-trip net trade is CNY 20.15bn (US$2.95bn).
The forecast adds have outperformed the forecast deletes over the last few weeks and months. The forecast deletes have been pressured by ETF redemptions as momentum continues in the adds.


STAR50/STAR100 Index Rebalance Preview: Huge Outperformance, ETF Redemptions & Fast Entry Conundrum

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Star Sports Medicine / Equity Capital Markets

<ul>
<li>There’s a decrease in selling price due to VBP. If future sales volume growth cannot offset the impact of price reduction, it will have significant adverse effect on STAR SPORTS.</li>
<li>International companies seized the majority of the market share, and local enterprises are making cross-industry expansions. For STAR SPORTS, the greater challenge lies in the unfavorable industry competition situation.</li>
<li>STAR SPORTS can achieve RMB164-236 million net profit in next three years. P/E of 15-25x is comfortable, with the corresponding valuation of RMB2.46-5.9 billion based on 2026 and 2028 forecast.  </li>
</ul>


There’s a decrease in selling price due to VBP. If future sales volume growth cannot offset the impact of price reduction, it will have significant adverse effect on STAR SPORTS.
International companies seized the majority of the market share, and local enterprises are making cross-industry expansions. For STAR SPORTS, the greater challenge lies in the unfavorable industry competition situation.
STAR SPORTS can achieve RMB164-236 million net profit in next three years. P/E of 15-25x is comfortable, with the corresponding valuation of RMB2.46-5.9 billion based on 2026 and 2028 forecast.  


Pre-IPO Star Sports Medicine (PHIP Updates) - Some Points Worth the Attention

Thematic (Sector/Industry)

<ul>
<li>We reviewed the 2021 performance and summarized the 2022 outlook for China healthcare sector.</li>
<li>We listed the 2022 high conviction ideas and mainly analyzed the industry characteristics, the business, the core competitiveness, the forecast and the concerns of related companies.</li>
<li>Overall, there are still good investment opportunities in China healthcare industry in 2022.</li>
</ul>


We reviewed the 2021 performance and summarized the 2022 outlook for China healthcare sector.
We listed the 2022 high conviction ideas and mainly analyzed the industry characteristics, the business, the core competitiveness, the forecast and the concerns of related companies.
Overall, there are still good investment opportunities in China healthcare industry in 2022.


2022 High Conviction (China Healthcare) - Seek the Relative Certainties Out of the Uncertainties

<p>Cosmetic contact lenses, due to the roles of both myopia correction and makeup FMCG products, are loved by young, especially female consumers in China. The potential of this industry is also very large and worth the attention of investors. This insight mainly analyzed the market potential, the business, and related investment opportunities in this industry.</p>

Cosmetic contact lenses, due to the roles of both myopia correction and makeup FMCG products, are loved by young, especially female consumers in China. The potential of this industry is also very large and worth the attention of investors. This insight mainly analyzed the market potential, the business, and related investment opportunities in this industry.

Industry Report - Insights on China Cosmetic Contact Lens Market

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.

Cloudbreak Pharma / Equity Capital Markets

<ul>
<li>Cloudbreak re-filed for a Hong Kong listing in December 2024 to raise at least USD 100 million.</li>
<li>In this note, we look at updates to its product lines. The progress of core products is on track while there are significant delays observed for other products.</li>
<li>We have a negative readthrough from the leading competitor of its core product.</li>
</ul>


Cloudbreak re-filed for a Hong Kong listing in December 2024 to raise at least USD 100 million.
In this note, we look at updates to its product lines. The progress of core products is on track while there are significant delays observed for other products.
We have a negative readthrough from the leading competitor of its core product.


Cloudbreak 拨康视云 IPO: Negative Readthrough from Underperforming Market Leader

China

Eyebright Medical Technology (Beijing) Co., Ltd. produces and sells medical devices. The Company manufactures and sells implantable ophthalmic supplies, surgical instruments, and other products. Eyebright Medical Technology (Beijing) markets its products throughout China.

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Eyebright Medical Technology (688050 CH)

STAR50/STAR100 Index Rebalance Preview: Huge Outperformance, ETF Redemptions & Fast Entry Conundrum

There could be 4 changes for the STAR50 and 10 for the STAR100 in June. Fast Entry inclusions depend on the index committee. ETF redemptions...

Brian Freitas

Pre-IPO Star Sports Medicine (PHIP Updates) - Some Points Worth the Attention

Decrease in selling price due to VBP may harm STAR SPORTS if sales volume growth doesn't offset it. Fierce competition poses a challenge. P/E of...

Xinyao (Criss) Wang

2022 High Conviction (China Healthcare) - Seek the Relative Certainties Out of the Uncertainties

The article analyzed the 2021 review and 2022 high conviction ideas, including the industry characteristics, the business, the core...

Xinyao (Criss) Wang

Industry Report - Insights on China Cosmetic Contact Lens Market

This article mainly analyzed China cosmetic contact lens industry in terms of the market potential, the business, the production capacity, the...

Xinyao (Criss) Wang

Cloudbreak 拨康视云 IPO: Negative Readthrough from Underperforming Market Leader

Cloudbreak re-files for Hong Kong listing to raise $100M, core product progress on track but delays in other products, negative readthrough from...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

STAR50/STAR100 Index Rebalance Preview: Huge Outperformance, ETF Redemptions & Fast Entry Conundrum

There could be 4 changes for the STAR50 and 10 for the STAR100 in June. Fast Entry inclusions depend on the index committee. ETF redemptions...

Brian Freitas

Pre-IPO Star Sports Medicine (PHIP Updates) - Some Points Worth the Attention

​Decrease in selling price due to VBP may harm STAR SPORTS if sales volume growth doesn't offset it. Fierce competition poses a challenge. P/E of...

Xinyao (Criss) Wang

2022 High Conviction (China Healthcare) - Seek the Relative Certainties Out of the Uncertainties

The article analyzed the 2021 review and 2022 high conviction ideas, including the industry characteristics, the business, the core...

Xinyao (Criss) Wang

Industry Report - Insights on China Cosmetic Contact Lens Market

This article mainly analyzed China cosmetic contact lens industry in terms of the market potential, the business, the production capacity, the...

Xinyao (Criss) Wang

Cloudbreak 拨康视云 IPO: Negative Readthrough from Underperforming Market Leader

​Cloudbreak re-files for Hong Kong listing to raise $100M, core product progress on track but delays in other products, negative readthrough from...

Ke Yan, CFA, FRM

Decrease in selling price due to VBP may harm STAR SPORTS if sales volume growth doesn't offset it. Fierce competition poses a challenge. P/E of...

Cloudbreak re-files for Hong Kong listing to raise $100M, core product progress on track but delays in other products, negative readthrough from...