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.

Equity Capital Markets

<ul>
<li>Orbbec, a maker of 3D vision sensors and devices for robots and connected machines, is seeking an A+H listing. GS and Haitong are the joint sponsors.</li>
<li>We look at the company's core segments: system-level devices and solutions, and sensors.</li>
<li>We discuss our preliminary thoughts on the company's valuation based on the A-H premium.</li>
</ul>


Orbbec, a maker of 3D vision sensors and devices for robots and connected machines, is seeking an A+H listing. GS and Haitong are the joint sponsors.
We look at the company's core segments: system-level devices and solutions, and sensors.
We discuss our preliminary thoughts on the company's valuation based on the A-H premium.


Orbbec (奥比中光) A+H Pre-IPO: Early Thoughts

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>The value of SmartMore’s business model is based on IndustryGPT, combined with sensors and robots, it achieves a leap from "single-point AI" to "system-level AI", effectively solving industry pain points.</li>
<li>The "software and hardware integration" approach leads to a “heavy” business model, with higher demands for supply chain, hardware manufacturing, after-sales maintenance, and may result in lower asset turnover rates.</li>
<li>As an industry leader with faster growth, SmartMore can enjoy a certain premium. If based on 2026 forecast, market value could be about RMB9.1 billion – RMB12.2 billion.</li>
</ul>


The value of SmartMore’s business model is based on IndustryGPT, combined with sensors and robots, it achieves a leap from "single-point AI" to "system-level AI", effectively solving industry pain points.
The "software and hardware integration" approach leads to a “heavy” business model, with higher demands for supply chain, hardware manufacturing, after-sales maintenance, and may result in lower asset turnover rates.
As an industry leader with faster growth, SmartMore can enjoy a certain premium. If based on 2026 forecast, market value could be about RMB9.1 billion – RMB12.2 billion.


Pre-IPO SmartMore - Valuation Premium Is Expected

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<p>Risk-on signals continue to pile up, which continues to support our constructive outlook. Building off of last week's report, growth Sectors such as Technology and Communications continue to improve and we recommend adding exposure (e.g., Bilibili BILI-US/9626-HK).</p>

Risk-on signals continue to pile up, which continues to support our constructive outlook. Building off of last week's report, growth Sectors such as Technology and Communications continue to improve and we recommend adding exposure (e.g., Bilibili BILI-US/9626-HK).

Global Equity Strategy: Growth Sectors Continue To Improve -- Add Exposure

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

<ul>
<li>There is 1 constituent change 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">STAR50 INDEX</a> and 4 changes for the STAR100 Index at the next rebalance that will be implemented at the close on 13 June.</li>
<li>We estimate turnover of 2.35% 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 4.9% for the STAR100 Index. The estimated round-trip trade is CNY 9.8bn (US$1.35bn).</li>
<li>There are multiple stocks that are adds or deletes for other indices and the passive flows will be a lot larger than just for the STAR50/STAR100 indices.</li>
</ul>


There is 1 constituent change for the STAR50 INDEX and 4 changes for the STAR100 Index at the next rebalance that will be implemented at the close on 13 June.
We estimate turnover of 2.35% for the SSE STAR50 (STAR50 INDEX) and 4.9% for the STAR100 Index. The estimated round-trip trade is CNY 9.8bn (US$1.35bn).
There are multiple stocks that are adds or deletes for other indices and the passive flows will be a lot larger than just for the STAR50/STAR100 indices.


STAR50/STAR100 Index Rebalance: 10 Changes and US$1.4bn Trade

<ul>
<li>With the review period complete, we forecast 1 change 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 4 changes for the STAR100 Index in June.</li>
<li>We estimate turnover of 2.26% 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 5.05% for the STAR100 Index. The estimated round-trip trade is CNY 8.1bn (US$1.11bn).</li>
<li>There are multiple stocks that are forecast adds or deletes for other indices and the passive flows will be a lot larger than just for the STAR50/STAR100 indices.</li>
</ul>


With the review period complete, we forecast 1 change for the SSE STAR50 (STAR50 INDEX) and 4 changes for the STAR100 Index in June.
We estimate turnover of 2.26% for the SSE STAR50 (STAR50 INDEX) and 5.05% for the STAR100 Index. The estimated round-trip trade is CNY 8.1bn (US$1.11bn).
There are multiple stocks that are forecast adds or deletes for other indices and the passive flows will be a lot larger than just for the STAR50/STAR100 indices.


STAR50/STAR100 Index Rebalance Preview: Strong Outperformance for STAR50 Changes

China

OPT Machine Vision Tech Co., Ltd. manufactures and distributes automated core components. The Company produces light source controllers, vision systems, light sources, lens, industrial cameras, three dimensional laser sensors, industrial code readers, and other related products. OPT Machine Vision Tech markets its products worldwide.

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OPT Machine Vision Tech (688686 CH)

Orbbec (奥比中光) A+H Pre-IPO: Early Thoughts

Orbbec is seeking an A+H listing. In this note, we look at the company's business, its industry context and provide our early thoughts on valuation.

Ke Yan, CFA, FRM

Pre-IPO SmartMore - Valuation Premium Is Expected

SmartMore's innovative business model, combining IndustryGPT with sensors and robots, solves industry pain points. As industry leader with faster...

Xinyao (Criss) Wang

Global Equity Strategy: Growth Sectors Continue To Improve -- Add Exposure

Building off of last week's report, growth Sectors such as Technology and Communications continue to improve and we recommend adding exposure...

Vermilion Research

STAR50/STAR100 Index Rebalance: 10 Changes and US$1.4bn Trade

There is 1 STAR50 changes and 4 STAR100 changes. The round-trip trade across both indices is US$1.4bn. Bestechnic Shanghai will have more inflows...

Brian Freitas

STAR50/STAR100 Index Rebalance Preview: Strong Outperformance for STAR50 Changes

There could be 1/4 changes for the STAR50/100 indices. Estimated net round-trip trade is US$1.1bn. There are multiple stocks that will have same...

Brian Freitas

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Orbbec (奥比中光) A+H Pre-IPO: Early Thoughts

Orbbec is seeking an A+H listing. In this note, we look at the company's business, its industry context and provide our early thoughts on valuation.

Ke Yan, CFA, FRM

Pre-IPO SmartMore - Valuation Premium Is Expected

​SmartMore's innovative business model, combining IndustryGPT with sensors and robots, solves industry pain points. As industry leader with faster...

Xinyao (Criss) Wang

Global Equity Strategy: Growth Sectors Continue To Improve -- Add Exposure

Building off of last week's report, growth Sectors such as Technology and Communications continue to improve and we recommend adding exposure...

Vermilion Research

STAR50/STAR100 Index Rebalance: 10 Changes and US$1.4bn Trade

There is 1 STAR50 changes and 4 STAR100 changes. The round-trip trade across both indices is US$1.4bn. Bestechnic Shanghai will have more inflows...

Brian Freitas

STAR50/STAR100 Index Rebalance Preview: Strong Outperformance for STAR50 Changes

There could be 1/4 changes for the STAR50/100 indices. Estimated net round-trip trade is US$1.1bn. There are multiple stocks that will have same...

Brian Freitas

SmartMore's innovative business model, combining IndustryGPT with sensors and robots, solves industry pain points. As industry leader with faster...