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αSK

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Smartkarma

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 <li>
<a href="https://smartkarma.com/entities/sanergy-group-ltd">Sanergy Group </a>is a global manufacturer of ultra-high power (UHP) graphite electrodes and is expanding into the graphite anode materials market, positioning itself to capitalize on the long-term growth of electric arc furnace (EAF) steelmaking and the electric vehicle (EV) battery sector.</li>
 <li>The company is currently facing significant financial headwinds, with declining revenues and consistent net losses over the past three years. This is attributed to a soft commercial landscape and competitive pressures.</li>
 <li>Management is focused on a turnaround strategy that includes operational efficiency improvements, cost control measures, and a strategic expansion of its production capacity for both graphite electrodes and anode materials to meet anticipated future demand.</li>
</ul>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.


  
Sanergy Group is a global manufacturer of ultra-high power (UHP) graphite electrodes and is expanding into the graphite anode materials market, positioning itself to capitalize on the long-term growth of electric arc furnace (EAF) steelmaking and the electric vehicle (EV) battery sector.
  The company is currently facing significant financial headwinds, with declining revenues and consistent net losses over the past three years. This is attributed to a soft commercial landscape and competitive pressures.
  Management is focused on a turnaround strategy that includes operational efficiency improvements, cost control measures, and a strategic expansion of its production capacity for both graphite electrodes and anode materials to meet anticipated future demand.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Primer: Sanergy Group  (2459 HK) - Apr 2026

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

GoFintech Quantum Innovation / Event-Driven

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<a href="https://www.smartkarma.com/entities/sanergy-group-ltd" target="_blank" data-smartkarma-citation="entities:40079:1" rel="noopener">Sanergy (2459 HK)</a>, a graphite electrode manufacturer, was added to the MSCI Small-Cap Index on 30th August; and was due to enter the Hang Seng Composite Index on 9th September.</li>
<li>However, the SFC <a href="https://www.hkexnews.hk/listedco/listconews/sehk/2024/0902/2024090202067.pdf" target="_blank" rel="noopener">announced</a> a concentration warning on the 2nd September. Shares promptly cratered ~98% yesterday (the 3rd September). Expect the HSCI inclusion to now be yanked.</li>
<li>This Sanergy debacle should refocus investors on other heavily concentrated stocks, such as <a href="https://www.smartkarma.com/entities/jinhai-medical-technology-limited" target="_blank" data-smartkarma-citation="entities:40641:1" rel="noopener">Jinhai Medical (2225 HK)</a>, in which <a href="https://www.smartkarma.com/entities/gofintech-innovation-ltd" target="_blank" data-smartkarma-citation="entities:4384:1" rel="noopener">GoFintech (290 HK)</a> (another heavily concentrated stock) has inexplicably been buying. </li>
</ul>



Sanergy (2459 HK), a graphite electrode manufacturer, was added to the MSCI Small-Cap Index on 30th August; and was due to enter the Hang Seng Composite Index on 9th September.
However, the SFC announced a concentration warning on the 2nd September. Shares promptly cratered ~98% yesterday (the 3rd September). Expect the HSCI inclusion to now be yanked.
This Sanergy debacle should refocus investors on other heavily concentrated stocks, such as Jinhai Medical (2225 HK), in which GoFintech (290 HK) (another heavily concentrated stock) has inexplicably been buying. 


GoFinTech (290 HK)/Jinhai Medical (2225 HK): Double Bubble Trouble

<ul>
<li>Buy dips on the possibility that 3DIP would not agree to Bain. Otherwise, at ¥9,000 <a href="https://www.smartkarma.com/entities/fuji-soft-inc" target="_blank" data-smartkarma-citation="entities:17504:1" rel="noopener">Fuji Soft (9749 JP)</a> is a buy, and at ¥9,500, it's probably a sell near-term.</li>
<li>Drilling down into its balance sheet uncovers additional value for <a href="https://www.smartkarma.com/entities/jardine-matheson-holdings-ltd" target="_blank" data-smartkarma-citation="entities:19718:1" rel="noopener">Jardine Matheson Holdings (JM SP)</a>; but not enough to move the needle</li>
<li>
<a href="https://www.smartkarma.com/entities/exedy-corp" target="_blank" data-smartkarma-citation="entities:6516:1" rel="noopener">Exedy Corp (7278 JP)</a> completed its buyback. Murakami Group bought more. The stock (pro-forma) is at 0.62x book, 0.54x book for the non-cash portion. There's LOTS of cash left.</li>
</ul>


Buy dips on the possibility that 3DIP would not agree to Bain. Otherwise, at ¥9,000 Fuji Soft (9749 JP) is a buy, and at ¥9,500, it's probably a sell near-term.
Drilling down into its balance sheet uncovers additional value for Jardine Matheson Holdings (JM SP); but not enough to move the needle

Exedy Corp (7278 JP) completed its buyback. Murakami Group bought more. The stock (pro-forma) is at 0.62x book, 0.54x book for the non-cash portion. There's LOTS of cash left.


Last Week in Event SPACE: Fuji Soft, Jardine Matheson, Exedy, Henderson

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

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<li>There are 38 adds and 29 deletes for the Hang Seng Composite Index (HSCI) at the September rebalance to take the number of index constituents up to 518.</li>
<li>We expect 33 of the 38 HSCI inclusions to be added to Stock Connect while we expect 27 of the 29 HSCI deletions to be removed from Southbound Stock Connect.</li>
<li>Since the start of the calendar year, shares held though Southbound Connect have increased in 22 of the 27 HSCI deletions that will also be removed from Stock Connect.</li>
</ul>


There are 38 adds and 29 deletes for the Hang Seng Composite Index (HSCI) at the September rebalance to take the number of index constituents up to 518.
We expect 33 of the 38 HSCI inclusions to be added to Stock Connect while we expect 27 of the 29 HSCI deletions to be removed from Southbound Stock Connect.
Since the start of the calendar year, shares held though Southbound Connect have increased in 22 of the 27 HSCI deletions that will also be removed from Stock Connect.


HSCI Index Rebalance: 38 Adds, 29 Deletes & Changes to Southbound Stock Connect

<ul>
<li>We see 37 potential adds (including plenty of new listings) and 25 potential deletes (on market cap and liquidity) for the Hang Seng Composite Index in September.</li>
<li>We expect 32 stocks to be added to Southbound Stock Connect following the rebalance while 24 stocks could be deleted from the trading link and become Sell-only.</li>
<li>There are stocks that have a very high percentage of holdings via Stock Connect and there could be some unwinding prior to the stocks becoming Sell-only.</li>
</ul>


We see 37 potential adds (including plenty of new listings) and 25 potential deletes (on market cap and liquidity) for the Hang Seng Composite Index in September.
We expect 32 stocks to be added to Southbound Stock Connect following the rebalance while 24 stocks could be deleted from the trading link and become Sell-only.
There are stocks that have a very high percentage of holdings via Stock Connect and there could be some unwinding prior to the stocks becoming Sell-only.


HSCI Index Rebalance Preview and Stock Connect: Potential Changes in September

Hong Kong

Sanergy Group manufactures and sells ultra-high power graphite electrodes and graphite anode materials, serving electric arc furnace steel manufacturers globally. The company's products are used in the automotive, infrastructure, construction, appliance, machinery, equipment, and transportation industries. Sanergy Group was founded in 2018 and is headquartered in Xinxiang, China.

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Sanergy Group (2459 HK)

Primer: Sanergy Group (2459 HK) - Apr 2026

Sanergy Group is a global manufacturer of ultra-high power (UHP) graphite electrodes and is expanding into the graphite anode materials market,...

αSK

GoFinTech (290 HK)/Jinhai Medical (2225 HK): Double Bubble Trouble

I would not touch GoFintech Innovation (290 HK) or Jinhai Medical (2225 HK) with a ten foot pole. I can see both companies making the news for all...

David Blennerhassett

Last Week in Event SPACE: Fuji Soft, Jardine Matheson, Exedy, Henderson

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

HSCI Index Rebalance: 38 Adds, 29 Deletes & Changes to Southbound Stock Connect

There are 38 adds and 29 deletes for the HSCI at the September rebalance to take the number of index constituents up to 518. There will be a lot of...

Brian Freitas

HSCI Index Rebalance Preview and Stock Connect: Potential Changes in September

There could be nearly 80 adds/deletes for the HSCI in September. That will trigger changes to the Southbound Stock Connect list and increase flows...

Brian Freitas

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