Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

T&S Communications Co Ltd / Index Rebalance

<ul>
<li>ChiNext and ChiNext 50, respectively, represent the top 100 and top 50 A-share stocks listed on the ChiNext Market of the Shenzhen Stock Exchange.</li>
<li>We expect 7 changes for the ChiNext index and 5 changes for the ChiNext 50 index in the December 2026 index rebal event.</li>
<li>With just over two months remaining in the reference period, there is still room for the expected ADDs/DELs to change.</li>
</ul>


ChiNext and ChiNext 50, respectively, represent the top 100 and top 50 A-share stocks listed on the ChiNext Market of the Shenzhen Stock Exchange.
We expect 7 changes for the ChiNext index and 5 changes for the ChiNext 50 index in the December 2026 index rebal event.
With just over two months remaining in the reference period, there is still room for the expected ADDs/DELs to change.


Quiddity Leaderboard ChiNext & ChiNext 50 Dec26: Expected ADDs/DELs Can Change; US$655mn One-Way

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

Equity Bottom-Up

T&S Communications Co Ltd / Equity Bottom-Up

<ul>
  <li>T&amp;S Communications is a high-growth manufacturer of essential fiber optic components, capitalizing on the global demand for increased data transmission speeds driven by 5G, data centers, and AI.</li>
  <li>The company has demonstrated a strong financial track record, with impressive compound annual growth in revenue and net income over the past three and five years, coupled with expanding margins.</li>
  <li>Valuation appears stretched, with key metrics trading at a significant premium to telecommunication operator peers, suggesting high growth expectations are already priced in. Key risks include dependency on cyclical telecom capital expenditures and potential technological shifts.</li>
</ul><p><em>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.</em></p>


  T&amp;S Communications is a high-growth manufacturer of essential fiber optic components, capitalizing on the global demand for increased data transmission speeds driven by 5G, data centers, and AI.
  The company has demonstrated a strong financial track record, with impressive compound annual growth in revenue and net income over the past three and five years, coupled with expanding margins.
  Valuation appears stretched, with key metrics trading at a significant premium to telecommunication operator peers, suggesting high growth expectations are already priced in. Key risks include dependency on cyclical telecom capital expenditures and potential technological shifts.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Primer: T&S Communications Co Ltd (300570 CH) - Aug 2026

<ul>
<li>The ChiNext index represents the performance of the 100 largest and most liquid A-share stocks listed on the ChiNext Market of the Shenzhen Stock Exchange.</li>
<li>The ChiNext 50 index is a subset of the ChiNext index and it consists of the top 50 names in the ChiNext index with the highest daily average turnover.</li>
<li>We see 10 changes for the ChiNext index and 5 changes for the ChiNext 50 index in the next index rebal event.</li>
</ul>


The ChiNext index represents the performance of the 100 largest and most liquid A-share stocks listed on the ChiNext Market of the Shenzhen Stock Exchange.
The ChiNext 50 index is a subset of the ChiNext index and it consists of the top 50 names in the ChiNext index with the highest daily average turnover.
We see 10 changes for the ChiNext index and 5 changes for the ChiNext 50 index in the next index rebal event.


Quiddity Leaderboard ChiNext & ChiNext 50 Dec26: Many Changes; US$2.1bn+ Combined One-Way Flows

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

Foxconn Industrial Internet / Technical Analysis

<ul>
<li>We remain near-term bullish SPX and ACWI since 4/22/25, and our intermediate-term outlook remains bullish as well (as of our 5/14/25 Compass), with Int’l Compass reports all echoing this sentiment.</li>
<li>We discussed in our July 31, 2025 Int'l Compass how $128, $125-$126, and $123-$123.50 were short-term supports to watch on ACWI-US, and ACWI-US found support at $128 the next day.</li>
<li>Europe (EURO STOXX 50) is the last of the major countries (from a global market cap perspective) to break out; we expect it to be next</li>
</ul>


We remain near-term bullish SPX and ACWI since 4/22/25, and our intermediate-term outlook remains bullish as well (as of our 5/14/25 Compass), with Int’l Compass reports all echoing this sentiment.
We discussed in our July 31, 2025 Int'l Compass how $128, $125-$126, and $123-$123.50 were short-term supports to watch on ACWI-US, and ACWI-US found support at $128 the next day.
Europe (EURO STOXX 50) is the last of the major countries (from a global market cap perspective) to break out; we expect it to be next


Europe Next to Break Out?; Bullish Outlook Intact; Remain Overweight Korea, Greece, and the U.S.

HK/China Equity Long-Short

Osbert Tang, CFA

Equity Capital Markets

Ligent Technologies / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/ligent-technologies-inc" target="_blank" data-smartkarma-citation="entities:45722:1" rel="noopener">Ligent Technologies (9856 HK)</a>' IPO looks to raise HK$5.4bn at HK$32.96/share. This optical communication and connectivity product provider, however, does not stand out. </li>
<li>It will benefit from the current AI investment trend, driving a 3-year EPS CAGR of 59.7%. With Hisense Group being its controlling shareholder, it can leverage on this relationship.</li>
<li>Its 1H26 gross margin is low, hence difficult to justify a premium. Optimistically, it can trade on par with <a href="https://www.smartkarma.com/entities/cig-shanghai-co-ltd-class-h" target="_blank" data-smartkarma-citation="entities:46336:1" rel="noopener">CIG Shanghai (6166 HK)</a>'s 10.7x FY27 PER, equalling HK$36.06. </li>
</ul>



Ligent Technologies (9856 HK)' IPO looks to raise HK$5.4bn at HK$32.96/share. This optical communication and connectivity product provider, however, does not stand out. 
It will benefit from the current AI investment trend, driving a 3-year EPS CAGR of 59.7%. With Hisense Group being its controlling shareholder, it can leverage on this relationship.
Its 1H26 gross margin is low, hence difficult to justify a premium. Optimistically, it can trade on par with CIG Shanghai (6166 HK)'s 10.7x FY27 PER, equalling HK$36.06. 


Ligent Technologies (9856 HK) IPO: Low Expectations

China

T&S Communications Co., Ltd. manufactures optic fiber products. The Company designs, produces, and sells ceramic ferrule, connectors, separators, and other related equipment. T&S Communications serves customers throughout China.

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T&S Communications Co Ltd (300570 CH)

Quiddity Leaderboard ChiNext & ChiNext 50 Dec26: Expected ADDs/DELs Can Change; US$655mn One-Way

Some of the ChiNext potential ADDs are very close to the border. Depending on the relative price performance between now and the end of the...

Janaghan Jeyakumar, CFA

Primer: T&S Communications Co Ltd (300570 CH) - Aug 2026

T&S Communications is a high-growth manufacturer of essential fiber optic components, capitalizing on the global demand for increased data...

αSK Primers

Quiddity Leaderboard ChiNext & ChiNext 50 Dec26: Many Changes; US$2.1bn+ Combined One-Way Flows

Both ChiNext and ChiNext 50 ADDs have strongly outperformed ChiNext and ChiNext 50 DELs on average during the last month. There are multiple months...

Janaghan Jeyakumar, CFA

Europe Next to Break Out?; Bullish Outlook Intact; Remain Overweight Korea, Greece, and the U.S.

Europe Next to Break Out?; China and Japan Remain Attractive and a big focus since our July 3rd report titled "China and Japan Breaking Out;"...

Vermilion Research

Ligent Technologies (9856 HK) IPO: Low Expectations

Ligent's IPO is not particularly attractive, given its low margin against peers and mid-tier industry position. It is cheap though, and at par to...

Osbert Tang, CFA

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