Daily Brief TMT/Internet: Horizon Robotics, LG Corp, Tencent, Black Sesame International Holding, ASML Holding NV, AAC Technologies Holdings, Koninklijke KPN and more

• We see 38 potential and close adds and 51 potential and close deletes for the Hang Seng Composite Index in March. Some of the stocks are close on market cap/liquidity.
• There have been many new listings in the last weeks of December. Some of them are fairly large and will be added and that increases the number of potential deletions.
• 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.

• On 6 January, LG Corp announced that it plans to purchase 250 billion won worth of LG Electronics and LG Chem from 6 January to 7 March 2025.
• The share buybacks would represent 1.5% and 0.7% of LG Chem and LG Electronics’ market cap, respectively.
• Our base case NAV valuation analysis of LG Corp suggests implied NAV of 14.7 trillion won or NAV per share of 93,430 won, which is 25% higher than current price.

• The HSTECH Index tracks the performance of the top 30 technology companies listed in Hong Kong that have high business exposure to certain technology themes.
• In this insight, we take a look at the final rankings of potential ADDs and potential DELs for the March 2025 index rebal event.
• We expect one change for the HSTECH index in March 2025 and combined with capping flows currently see US$475mn one-way flows.

• This Insight analyzes Tencent (700 HK) tailor-made option strategies traded over the last five trading days on the Hong Kong Exchange. Strategy highlights and volatility insights are provided.
• Historically low implied volatility favors bullish or bearish long volatility strategies.
• Calendar Spreads are a popular strategy. Bulls and bears are both very active in the market, expressing their views through trades.

• The Hang Seng Internet & IT (HSIII) index represents the top 30 stocks related to internet and information technology businesses listed in Hong Kong (HKEX).
• In this insight, we take a look at the final rankings of potential ADDs and potential DELs for the March 2025 index rebal event.
• We expect four changes for the HSIII index in March 2025 and currently expect flows of US$114mn one-way (including capping flows which will change).

• ASML CEO and delegation to visit TSMC, showcasing collaboration in semiconductor industry
• US adds 13 firms, majority Chinese, to entity list amid ongoing tensions
• Samsung Display to unveil 18.1-inch foldable OLED panel at CES 2025, showcasing advancements in display technology

AAC Technologies Holdings Inc is a China-based company formed in 1993 and incorporated in the Cayman Islands. It was listed on the Hong Kong Stock Exchange in 2005. AAC is one of the world’s leading solution providers for smart devices, with: [1] cutting-edge technologies in materials research; and [2] simulation, algorithm, design, automation and process development in areas including acoustics, optics, as well as electromagnetic drives and precision mechanics. The company also offers advanced miniaturised and proprietary technology solutions.

• In this edition: • Ahold Delhaize | formal closing of Profi deal • ING | determines cash payment per share as part of current distribution • PostNL / IDS | termination Russian gas transit: no material impact on Křetínský’s financial flex • TomTom | to partner with Esri delivering advanced location analytics • Dutch housing market | first signs of a normalisation?
• • Corporate Agenda week 2