HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/zhongji-innolight" target="_blank" data-smartkarma-citation="entities:55331:1" rel="noopener">Zhongji InnoLight (3308 HK)</a>'s 2Q26 net profit surged 228.2%, with gross and operating margins expanding 5.3pp and 7.9pp, respectively, rebuffing the market's concerns.</li>
<li>There is room for earnings upgrades. Management has indicated that raw material price pressure will soften and that inventory is sufficient, benefiting 2H26 margin.</li>
<li>Its HA premium has picked up after the IPO and is currently at 3.6%. Applying a 10% maximum justifiable premium, it means an H-share price of HK$1,210.50.</li>
</ul>



Zhongji InnoLight (3308 HK)'s 2Q26 net profit surged 228.2%, with gross and operating margins expanding 5.3pp and 7.9pp, respectively, rebuffing the market's concerns.
There is room for earnings upgrades. Management has indicated that raw material price pressure will soften and that inventory is sufficient, benefiting 2H26 margin.
Its HA premium has picked up after the IPO and is currently at 3.6%. Applying a 10% maximum justifiable premium, it means an H-share price of HK$1,210.50.


Zhongji InnoLight (3308 HK): Rebuffing the Margin Concerns

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.

Quantitative Analysis

<ul>
<li>We analyzed the changes in margin trading positions of A-share stocks as of Aug 21st. The aggregated net margin trading position is USD356,345m.</li>
<li>We tabulate league tables for top/bottom net long/short of margin trading by value, net margin buy as multiple of ADT.</li>
<li>We highlight net margin buy/sell changes in COSCO SHIPPING, EAST MONEY INFORMATION, Mindray, CHENGDU XUGUANG ELECTRONICS, CNOOC.</li>
</ul>


We analyzed the changes in margin trading positions of A-share stocks as of Aug 21st. The aggregated net margin trading position is USD356,345m.
We tabulate league tables for top/bottom net long/short of margin trading by value, net margin buy as multiple of ADT.
We highlight net margin buy/sell changes in COSCO SHIPPING, EAST MONEY INFORMATION, Mindray, CHENGDU XUGUANG ELECTRONICS, CNOOC.


A-Share Margin Trading Weekly (Aug 21st): COSCO SHIPPING, EAST MONEY INFORMATION, Mindray, CNOOC

Research from Quam Securities, Quam Securities

Quam Securities Research

Research from Quam Securities

Quam Securities

Since its inception in 1986, Quam Securities Limited (Quam Securities) has grown to become one of the few mid-tier securities brokerages in Hong Kong with global execution capabilities for both private and institutional clients. It boasts a well-established network in Greater China including Taiwan and in major world markets through the Global Alliance Partners (GAP). Quam Securities is well-positioned not only to harness and drive business within the China Tonghai International Financial Limited but also between China and the world markets.

Grand Agriseeds Technology / Equity Bottom-Up

<ul><li>The HSI opened up 186 pts, with upswing once widening to more than 460 pts.</li><li>The market rebounded from a fourth consecutive session of decline, supported by strength in technology and semiconductor shares, as upbeat earnings and optimism surrounding AI-related businesses boosted investor confidence.</li><li>SSEC/SZSE/GEI moved by +1.41%/+2.44%/+3.14%, reaching their highest levels in more than a month as technology stocks staged strong gains.</li></ul>

The HSI opened up 186 pts, with upswing once widening to more than 460 pts.The market rebounded from a fourth consecutive session of decline, supported by strength in technology and semiconductor shares, as upbeat earnings and optimism surrounding AI-related businesses boosted investor confidence.SSEC/SZSE/GEI moved by +1.41%/+2.44%/+3.14%, reaching their highest levels in more than a month as technology stocks staged strong gains.

Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

<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>Currently, we expect 6 changes for the ChiNext index and 5 changes for the ChiNext 50 index in the next index rebal event.</li>
<li>The ChiNext and ChiNext 50 index rebal events could trigger US$226mn and US$220mn in one-way flows respectively.</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.
Currently, we expect 6 changes for the ChiNext index and 5 changes for the ChiNext 50 index in the next index rebal event.
The ChiNext and ChiNext 50 index rebal events could trigger US$226mn and US$220mn in one-way flows respectively.


Quiddity Leaderboard ChiNext & ChiNext 50 Dec26: Momentum Against the Expected ADDs Vs DELs Trade

Equity Capital Markets

Zhongji InnoLight / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/zhongji-innolight" target="_blank" data-smartkarma-citation="entities:55331:1" rel="noopener">Zhongji InnoLight (3308 HK)</a> fixed its IPO price at HK$980, 3% below the maximum, due to the recent weakness of AI-related stocks. Its HA discount is now at just 11.1%.  </li>
<li>Its peers have retreated an average of 12.1% in a week, and its A-share was off by 10.4%. Futubull's grey market price was down 1% from the IPO.</li>
<li>It may dip below IPO on debut, but anything below 15% HA discount is a bargain (HK$936.8). For initial upside, we look for par with A-share, i.e. HK$1,102.</li>
</ul>



Zhongji InnoLight (3308 HK) fixed its IPO price at HK$980, 3% below the maximum, due to the recent weakness of AI-related stocks. Its HA discount is now at just 11.1%.  
Its peers have retreated an average of 12.1% in a week, and its A-share was off by 10.4%. Futubull's grey market price was down 1% from the IPO.
It may dip below IPO on debut, but anything below 15% HA discount is a bargain (HK$936.8). For initial upside, we look for par with A-share, i.e. HK$1,102.


Zhongji InnoLight (3308 HK) IPO: Debut and Trading Strategy

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.

Price Gauge
52-week Range	0.00 - 0.00
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T&S Communications Co Ltd (300570 CH)

Zhongji InnoLight (3308 HK): Rebuffing the Margin Concerns

Zhongji InnoLight's 2Q26 results demonstrated its margin resilience, providing room for an earnings upgrade. Its HA premium has also steadily...

Osbert Tang, CFA

Quam Morning Note (18 Aug)

The HSI opened up 186 pts, with upswing once widening to more than 460 pts. The market rebounded from a fourth consecutive session of decline,...

Quam Securities

Quiddity Leaderboard ChiNext & ChiNext 50 Dec26: Momentum Against the Expected ADDs Vs DELs Trade

The ChiNext and ChiNext 50 Expected ADDs have strongly underperformed the ChiNext and ChiNext 50 Expected DELs in the last month. This is another...

Janaghan Jeyakumar, CFA

Zhongji InnoLight (3308 HK) IPO: Debut and Trading Strategy

Zhongji InnoLight prices IPO at 3% below the maximum due to AI stock weakness. It may dip below IPO price, but anything more than 15% HA discount...

Osbert Tang, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Zhongji InnoLight (3308 HK): Rebuffing the Margin Concerns

Zhongji InnoLight's 2Q26 results demonstrated its margin resilience, providing room for an earnings upgrade. Its HA premium has also steadily...

Osbert Tang, CFA

A-Share Margin Trading Weekly (Aug 21st): COSCO SHIPPING, EAST MONEY INFORMATION, Mindray, CNOOC

We analyzed A-share margin trading positions report for the past week and highlighted COSCO SHIPPING, EAST MONEY INFORMATION, Mindray, CHENGDU...

Ke Yan, CFA, FRM

Quam Morning Note (18 Aug)

The HSI opened up 186 pts, with upswing once widening to more than 460 pts. The market rebounded from a fourth consecutive session of decline,...

Quam Securities

Quiddity Leaderboard ChiNext & ChiNext 50 Dec26: Momentum Against the Expected ADDs Vs DELs Trade

The ChiNext and ChiNext 50 Expected ADDs have strongly underperformed the ChiNext and ChiNext 50 Expected DELs in the last month. This is another...

Janaghan Jeyakumar, CFA

Zhongji InnoLight (3308 HK) IPO: Debut and Trading Strategy

​Zhongji InnoLight prices IPO at 3% below the maximum due to AI stock weakness. It may dip below IPO price, but anything more than 15% HA discount...

Osbert Tang, CFA

Zhongji InnoLight prices IPO at 3% below the maximum due to AI stock weakness. It may dip below IPO price, but anything more than 15% HA discount...