Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Index Rebalance

Shanghai Conant Optical / Index Rebalance

<ul>
<li>On Friday 22 August, the Hang Seng Index team announced the changes to the Hang Seng Healthcare Index for the September 2025 rebalance. That takes us to 73 constituents.</li>
<li>Team Quiddity had expected 6 ADDs+1 DEL. We got 10 ADDs and 4 DELs. Our 7 names were correct and the other three DELs were our next three choices.</li>
<li>This is a smallish index, so we see US$300+mm to trade but there are a couple of big buys in terms of ADV.</li>
</ul>


On Friday 22 August, the Hang Seng Index team announced the changes to the Hang Seng Healthcare Index for the September 2025 rebalance. That takes us to 73 constituents.
Team Quiddity had expected 6 ADDs+1 DEL. We got 10 ADDs and 4 DELs. Our 7 names were correct and the other three DELs were our next three choices.
This is a smallish index, so we see US$300+mm to trade but there are a couple of big buys in terms of ADV.


[Quiddity Index] Sep25 HS Healthcare Index Review Announced; 10 ADDs, 4 DELs, 1 More Member Net

Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

Shanghai Conant Optical / Equity Bottom-Up

<ul>
<li>In 1H25, <a href="https://www.smartkarma.com/entities/shanghai-conant-optical-co-ltd" target="_blank" data-smartkarma-citation="entities:33004:1" rel="noopener">Shanghai Conant Optical (2276 HK)</a> reported revenue rise of 11% to RMB 1.1M buoyed by growth across segments like multifunctional lens (up 9%) and standardized lens (up 20%).</li>
<li>In 1H25, the company kept up with its consistency of expanding its gross margins period after period, as margin expanded from 39.2% in 1H24 to 41% in 1H25 (2024: 38.6%).</li>
<li>Shanghai Conant’s robust demand outlook, capacity expansion plans, R&amp;D initiatives and margin strength offer a strong long term secular growth story.</li>
</ul>


In 1H25, Shanghai Conant Optical (2276 HK) reported revenue rise of 11% to RMB 1.1M buoyed by growth across segments like multifunctional lens (up 9%) and standardized lens (up 20%).
In 1H25, the company kept up with its consistency of expanding its gross margins period after period, as margin expanded from 39.2% in 1H24 to 41% in 1H25 (2024: 38.6%).
Shanghai Conant’s robust demand outlook, capacity expansion plans, R&amp;D initiatives and margin strength offer a strong long term secular growth story.


Conant Optical (2276 HKG): Growth Optics Sharp & Clear with Expanding Margins, Robust Sales in 1H25

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shanghai-conant-optical-co-ltd" target="_blank" data-smartkarma-citation="entities:33004:1" rel="noopener">Shanghai Conant Optical (2276 HK)</a> to utilize proceeds from its January placement for the research, development, design and manufacturing of lenses and vision solutions for smart glasses and XR headsets.</li>
<li>The company will construct an automated RX resin lens production line with a focus on high-end customized lenses, at a cost of $4M, to be funded by internal accruals.</li>
<li>The company declared that based on the preliminary assessments, it expects its 1H25 net profit to increase by 30% mainly due to strong volume growth and higher ASP.</li>
</ul>



Shanghai Conant Optical (2276 HK) to utilize proceeds from its January placement for the research, development, design and manufacturing of lenses and vision solutions for smart glasses and XR headsets.
The company will construct an automated RX resin lens production line with a focus on high-end customized lenses, at a cost of $4M, to be funded by internal accruals.
The company declared that based on the preliminary assessments, it expects its 1H25 net profit to increase by 30% mainly due to strong volume growth and higher ASP.


Shanghai Conant Optical (2276 HKG): Lens of Strong Fundamentals Makes the Growth Optics Visible

Thematic (Sector/Industry)

<ul>
<li>Celltrion is acquiring a biopharmaceutical production plant in the U.S. capable of producing key biopharmaceuticals. Alteogen received positive opinion from European Medicines Agency for its Eylea biosimilar.</li>
<li>Wuxi Biologics has begun construction for new modular Drug Product facility in Singapore. CSPC Pharmaceutical entered into an exclusive license agreement with Madrigal Pharmaceuticals, for its oral GLP-1 drug candidate.</li>
<li>Jiangsu Hengrui Pharmaceuticals has entered into agreements with GlaxoSmithKline, to grant GSK an exclusive worldwide right (excluding China) of HRS-9821 and up to 11 other programs.</li>
</ul>


Celltrion is acquiring a biopharmaceutical production plant in the U.S. capable of producing key biopharmaceuticals. Alteogen received positive opinion from European Medicines Agency for its Eylea biosimilar.
Wuxi Biologics has begun construction for new modular Drug Product facility in Singapore. CSPC Pharmaceutical entered into an exclusive license agreement with Madrigal Pharmaceuticals, for its oral GLP-1 drug candidate.
Jiangsu Hengrui Pharmaceuticals has entered into agreements with GlaxoSmithKline, to grant GSK an exclusive worldwide right (excluding China) of HRS-9821 and up to 11 other programs.


APAC Healthcare Weekly (Aug 3)– Celltrion, Alteogen, Wuxi Bio, CSPC, Jiangsu Hengrui, Eisai, Kissei

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

<ul>
<li>We see 28 potential and close adds and 34 potential and close deletes for the Hang Seng Composite Index in September. Some of the stocks are close on market cap/liquidity.</li>
<li>A lot of the potential adds are very recently listed stocks that have a limited trading history. The low free float could lead to price spikes in the stocks.</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 28 potential and close adds and 34 potential and close deletes for the Hang Seng Composite Index in September. Some of the stocks are close on market cap/liquidity.
A lot of the potential adds are very recently listed stocks that have a limited trading history. The low free float could lead to price spikes in the stocks.
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 (Sep 2025): Plenty of Recent IPOs Could Be Added

China

Shanghai Conant Opitical Co Ltd manufactures and distributes resin spectacle lens. The COmpany produces flat lens, single-vision lens, multifocal lens, progressive lens, and more. Shanghai Conant Optical markets its products across the United States, Japan, India, Australia, Thailand Germany and Brazil.

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Shanghai Conant Optical (2276 HK)

[Quiddity Index] Sep25 HS Healthcare Index Review Announced; 10 ADDs, 4 DELs, 1 More Member Net

The Hang Seng Healthcare Index Review was announced Friday post-close. We expected 6 ADDs 1 DEL but got 10 ADDs 4 DELs. Broad changes announced but...

Travis Lundy

Conant Optical (2276 HKG): Growth Optics Sharp & Clear with Expanding Margins, Robust Sales in 1H25

Shanghai Conant Optical sees 11% revenue rise and consistent margin expansion in 1H25. Robust demand outlook, capacity expansion plans, and margin...

Tina Banerjee