Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>Hong Kong market showed defensiveness during early August selloff and the overall breadth of the market continues to improve.</li>
<li>
<a href="https://www.smartkarma.com/entities/j-t-global-express-ltd" target="_blank" data-smartkarma-citation="entities:36819:1" rel="noopener">J&amp;T Global Express (1519 HK)</a> received upgrades after reporting strong 2Q24 results.  Its SEA and China business showed growth in revenue and profitability.</li>
<li>
<a href="https://www.smartkarma.com/entities/galaxy-entertainment-group-limited" target="_blank" data-smartkarma-citation="entities:806:1" rel="noopener">Galaxy Entertainment Group (27 HK)</a> received an upgrade after revenue and EBITDA approached pre-COVID levels.  <a href="https://www.smartkarma.com/entities/fit-hon-teng-ltd" target="_blank" data-smartkarma-citation="entities:22868:1" rel="noopener">FIT Hon Teng (6088 HK)</a> is seeing improvement in AI server, AirPod, and EV segments.</li>
</ul>


Hong Kong market showed defensiveness during early August selloff and the overall breadth of the market continues to improve.

J&amp;T Global Express (1519 HK) received upgrades after reporting strong 2Q24 results.  Its SEA and China business showed growth in revenue and profitability.

Galaxy Entertainment Group (27 HK) received an upgrade after revenue and EBITDA approached pre-COVID levels.  FIT Hon Teng (6088 HK) is seeing improvement in AI server, AirPod, and EV segments.


BUY/SELL/HOLD: Hong Kong Stock Updates (August 21)

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

Shenton Research

Shenton 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 analyzed the changes in margin trading positions of A-share stocks as of Aug 21st. The aggregated net margin trading position is USD356,345m.</li>
<li>We tabulate league tables for top/bottom net long/short of margin trading by value, net margin buy as multiple of ADT.</li>
<li>We highlight net margin buy/sell changes in COSCO SHIPPING, EAST MONEY INFORMATION, Mindray, CHENGDU XUGUANG ELECTRONICS, CNOOC.</li>
</ul>


We analyzed the changes in margin trading positions of A-share stocks as of Aug 21st. The aggregated net margin trading position is USD356,345m.
We tabulate league tables for top/bottom net long/short of margin trading by value, net margin buy as multiple of ADT.
We highlight net margin buy/sell changes in COSCO SHIPPING, EAST MONEY INFORMATION, Mindray, CHENGDU XUGUANG ELECTRONICS, CNOOC.


A-Share Margin Trading Weekly (Aug 21st): COSCO SHIPPING, EAST MONEY INFORMATION, Mindray, CNOOC

<ul>
<li>We analyzed the changes in margin trading positions of A-share stocks as of Aug 7th. The aggregated net margin trading position is USD352,973m.</li>
<li>We tabulate league tables for top/bottom net long/short of margin trading by value, net margin buy as multiple of ADT.</li>
<li>We highlight net margin buy/sell changes in Yangtze Power, Wuliangye, Mindray, VICTORY GIANT TECHNOLOGY (HUIZHOU), BYD.</li>
</ul>


We analyzed the changes in margin trading positions of A-share stocks as of Aug 7th. The aggregated net margin trading position is USD352,973m.
We tabulate league tables for top/bottom net long/short of margin trading by value, net margin buy as multiple of ADT.
We highlight net margin buy/sell changes in Yangtze Power, Wuliangye, Mindray, VICTORY GIANT TECHNOLOGY (HUIZHOU), BYD.


A-Share Margin Trading Weekly (Aug 7th): Yangtze Power, Wuliangye, Mindray, BYD

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Zhongji Innolight   / Equity Capital Markets

<ul>
<li>ZHONGJI adopts a "sales-driven" approach. The core is to respond quickly to customer orders rather than stockpiling goods for sale.Supply chain is efficient during prosperous periods but vulnerable during disruptions.</li>
<li>The uncertainty of the technical route and the development progress of the 3.2T optical transceivers are both turning points. The outcome of the technological competition is far from being settled.</li>
<li>The recent sharp fluctuations in A-shares may affect the pricing benchmark for H-shares. In our view, a comfortable valuation range could be P/E of 25-35x, based on 2026 forecast.</li>
</ul>


ZHONGJI adopts a "sales-driven" approach. The core is to respond quickly to customer orders rather than stockpiling goods for sale.Supply chain is efficient during prosperous periods but vulnerable during disruptions.
The uncertainty of the technical route and the development progress of the 3.2T optical transceivers are both turning points. The outcome of the technological competition is far from being settled.
The recent sharp fluctuations in A-shares may affect the pricing benchmark for H-shares. In our view, a comfortable valuation range could be P/E of 25-35x, based on 2026 forecast.


Pre-IPO Zhongji InnoLight (PHIP Updates) - Some Points Worth the Attention

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, 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.

Luxshare Precision Industry / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/luxshare-precision-industry-co-ltd" target="_blank" data-smartkarma-citation="entities:12310:1" rel="noopener">Luxshare Precision Industry (002475 CH)</a> (LP), a precision intelligent manufacturer, aims to raise around US$3.1bn in its H-share listing.</li>
<li>LP provides cross-sector, vertically integrated development and intelligent manufacturing solutions—from components and modules to systems—for global clients across consumer electronics, automotive electronics, communication and data centers, and other end markets.</li>
<li>We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the IPO pricing.</li>
</ul>



Luxshare Precision Industry (002475 CH) (LP), a precision intelligent manufacturer, aims to raise around US$3.1bn in its H-share listing.
LP provides cross-sector, vertically integrated development and intelligent manufacturing solutions—from components and modules to systems—for global clients across consumer electronics, automotive electronics, communication and data centers, and other end markets.
We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the IPO pricing.


Aequitas: Luxshare Precision A/H Listing - Strong Cornerstone, Tight Pricing

Taiwan

Foxconn Industrial Internet Co., Ltd. operates as a communication network equipment development company. The Company develops and sells network switches, routers, wireless devices, web servers, set top boxes, smart home gateways, and other products. Foxconn Industrial Internet also manufactures storage equipment.

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Foxconn Industrial Internet (601138 CH)

BUY/SELL/HOLD: Hong Kong Stock Updates (August 21)

The Hong Kong market breadth continues to improve as the market has shown defensive qualities during recent selloff. J&T Global, Galaxy and FIT...

David Mudd

Pre-IPO Zhongji InnoLight (PHIP Updates) - Some Points Worth the Attention

ZHONGJI’s plans to issue 54.5mn share at maximum offer price of HK$1,010 each. If based on our 2026 forecast, P/E is 30x, precisely falling at the...

Xinyao (Criss) Wang

Aequitas: Luxshare Precision A/H Listing - Strong Cornerstone, Tight Pricing

Luxshare Precision Industry (002475 CH) (LP), a precision intelligent manufacturer, aims to raise around US$3.1bn in its H-share listing. In this...

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

BUY/SELL/HOLD: Hong Kong Stock Updates (August 21)

The Hong Kong market breadth continues to improve as the market has shown defensive qualities during recent selloff. J&T Global, Galaxy and FIT...

David Mudd

A-Share Margin Trading Weekly (Aug 21st): COSCO SHIPPING, EAST MONEY INFORMATION, Mindray, CNOOC

We analyzed A-share margin trading positions report for the past week and highlighted COSCO SHIPPING, EAST MONEY INFORMATION, Mindray, CHENGDU...

Ke Yan, CFA, FRM

A-Share Margin Trading Weekly (Aug 7th): Yangtze Power, Wuliangye, Mindray, BYD

We analyzed A-share margin trading positions report for the past week and highlighted Yangtze Power, Wuliangye, Mindray, VICTORY GIANT TECHNOLOGY...

Ke Yan, CFA, FRM

Pre-IPO Zhongji InnoLight (PHIP Updates) - Some Points Worth the Attention

ZHONGJI’s plans to issue 54.5mn share at maximum offer price of HK$1,010 each. If based on our 2026 forecast, P/E is 30x, precisely falling at the...

Xinyao (Criss) Wang

Aequitas: Luxshare Precision A/H Listing - Strong Cornerstone, Tight Pricing

Luxshare Precision Industry (002475 CH) (LP), a precision intelligent manufacturer, aims to raise around US$3.1bn in its H-share listing. In this...

Sumeet Singh