Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>Hong Kong market continues in an upward trend after breaking resistance at 27100 last month.  The next resistance level is 28000.  Southbound flows have accelerated over the last week. </li>
<li>The energy, conglomerates, and property sectors outperformed the materials sector in 2026.  Momentum and value have been the top factors for performance YTD.</li>
<li>
<a href="https://www.smartkarma.com/entities/zhejiang-sanhua-intelligent-controls-co-ltd" target="_blank" data-smartkarma-citation="entities:45277:1" rel="noopener">Zhejiang Sanhua Intelligent Controls (2050 HK)</a> was initiated with OUTPERFORM at Shenwan Hongyuan Research.  The manufacturer of air-conditioning and refrigeration components has expanded into energy storage, automotive thermal management, and robotics.
</li>
</ul>


Hong Kong market continues in an upward trend after breaking resistance at 27100 last month.  The next resistance level is 28000.  Southbound flows have accelerated over the last week. 
The energy, conglomerates, and property sectors outperformed the materials sector in 2026.  Momentum and value have been the top factors for performance YTD.

Zhejiang Sanhua Intelligent Controls (2050 HK) was initiated with OUTPERFORM at Shenwan Hongyuan Research.  The manufacturer of air-conditioning and refrigeration components has expanded into energy storage, automotive thermal management, and robotics.



BUY/SELL/HOLD: Hong Kong Market Update (February 10)

Macroeconomics

<ul>
<li>China will roll out its 2026 - 2030 five-year plan this month, which outline the economic and social roadmap until the end of the decade.  </li>
<li>Historically the five-year plans have been a roadmap for investors to look for tailwinds for economic sector performance.  We believe the high-tech industries will remain the main focus for investment.</li>
<li>Exporters of high-end equipment and machinery will continue to benefit with the consumption sector being a focus for international investors.</li>
</ul>


China will roll out its 2026 - 2030 five-year plan this month, which outline the economic and social roadmap until the end of the decade.  
Historically the five-year plans have been a roadmap for investors to look for tailwinds for economic sector performance.  We believe the high-tech industries will remain the main focus for investment.
Exporters of high-end equipment and machinery will continue to benefit with the consumption sector being a focus for international investors.


EMERGING THEMES: China's Next 5 Year Plan

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>Golden Throat Holdings is a gem. It has excellent fundamentals including an eye-catching dividend yield (17.9% in 2023) and a blistering DPS growth (10x from 2020 to 2023). </li>
<li>It also benefits from a compelling long-term theme (relieving sore throats caused by worsening air quality/smog/fine dust problems along with recurrent regular cold/flu symptoms among millions of people in China). </li>
<li>Golden Throat Holdings is one of the leading throat lozenges manufacturers in China. Its net margin averaged 24% from 2019 to 2023.</li>
</ul>


Golden Throat Holdings is a gem. It has excellent fundamentals including an eye-catching dividend yield (17.9% in 2023) and a blistering DPS growth (10x from 2020 to 2023). 
It also benefits from a compelling long-term theme (relieving sore throats caused by worsening air quality/smog/fine dust problems along with recurrent regular cold/flu symptoms among millions of people in China). 
Golden Throat Holdings is one of the leading throat lozenges manufacturers in China. Its net margin averaged 24% from 2019 to 2023.


Asian Dividend Gems: Golden Throat Holdings

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.

Precision Tsugami (China) / Equity Bottom-Up

<ul><li>Tsugami China released a strong set of FY25/26 (Mar year-end) results after market close on 29 Jun, with net profit surging 40% YoY to RMB1.09bn.</li><li>The Company held an analyst meeting on 30 Jun. Key takeaways: (1) Strong order intake was seen in Apr-Jun 2026 with capacity currently running at above designed capacity of 15k units;</li><li>(2) The Company’s precision lathes are now applied in optical module components production, which will serve as a new growth driver over the coming 1-2 years; (3) Explosive growth for machines for universal quick disconnects (UQDs) in liquid cooling is expected in FY26/27E.</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.

Tsugami China released a strong set of FY25/26 (Mar year-end) results after market close on 29 Jun, with net profit surging 40% YoY to RMB1.09bn.The Company held an analyst meeting on 30 Jun. Key takeaways: (1) Strong order intake was seen in Apr-Jun 2026 with capacity currently running at above designed capacity of 15k units;(2) The Company’s precision lathes are now applied in optical module components production, which will serve as a new growth driver over the coming 1-2 years; (3) Explosive growth for machines for universal quick disconnects (UQDs) in liquid cooling is expected in FY26/27E.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.

Tsugami China (1651 HK) - Key Takeaways from Post-Results Meeting

Smartkarma AI Primers, Smartkarma

αSK Primers

Smartkarma AI Primers

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

<ul>
 <li>
<a href="https://smartkarma.com/entities/precision-tsugami-china-corp">Precision Tsugami China</a> is a leading manufacturer of high-precision CNC machine tools in China, benefiting from the technology and brand reputation of its Japanese parent company, Tsugami Corporation.</li>
 <li>The company is poised to capitalize on key secular growth trends in China, including industrial automation, the rise of new energy vehicles (NEVs), and the expansion of the medical device and robotics industries.</li>
 <li>Despite a recent period of revenue volatility, the company has demonstrated strong long-term growth in profitability and maintains a robust dividend payout, supported by significant margin expansion and cost control initiatives.</li>
</ul>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.


  
Precision Tsugami China is a leading manufacturer of high-precision CNC machine tools in China, benefiting from the technology and brand reputation of its Japanese parent company, Tsugami Corporation.
  The company is poised to capitalize on key secular growth trends in China, including industrial automation, the rise of new energy vehicles (NEVs), and the expansion of the medical device and robotics industries.
  Despite a recent period of revenue volatility, the company has demonstrated strong long-term growth in profitability and maintains a robust dividend payout, supported by significant margin expansion and cost control initiatives.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Primer: Precision Tsugami China (1651 HK) - Apr 2026

China

Precision Tsugami (China) manufactures and distributes high-precision computer numerical control (CNC) machine tools, including lathes, machining centers, and grinding machines, under the TSUGAMI brand. These products serve various industries such as automotive, IT electronics, industrial automation, and medical instruments. The company was founded in 2003 and is headquartered in Pinghu, China.

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Precision Tsugami (China) (1651 HK)

BUY/SELL/HOLD: Hong Kong Market Update (February 10)

Hong Kong market continues in an upward trend after breaking resistance at 27100 last month. The next resistance level is 28000. Southbound flows...

David Mudd

EMERGING THEMES: China's Next 5 Year Plan

China will roll out its 2026 - 2030 five-year plan this month, outlining the economic and social roadmap until the end of the decade.Historically...

David Mudd

Asian Dividend Gems: Golden Throat Holdings

Golden Throat Holdings is one of the leading throat lozenges manufacturers in China. It has an eye-catching dividend yield (17.9% in 2023) and a...

Douglas Kim

Tsugami China (1651 HK) - Key Takeaways from Post-Results Meeting

Tsugami China released a strong set of FY25/26 (Mar year-end) results after market close on 29 Jun, with net profit surging 40% YoY to RMB1.09bn.

CMB International

Primer: Precision Tsugami China (1651 HK) - Apr 2026

Precision Tsugami China is a leading manufacturer of high-precision CNC machine tools in China, benefiting from the technology and brand...

αSK Primers

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