HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>The appreciation of Rmb will bring benefits to some companies. With a lower USD rate and an inflow of funds to China, this trend is expected to continue into 2026.</li>
<li>
<a href="https://www.smartkarma.com/entities/h-world-group-ltd" target="_blank" data-smartkarma-citation="entities:33487:1" rel="noopener">H World Group (1179 HK)</a>, <a href="https://www.smartkarma.com/entities/china-everbright-environment-group-limited" target="_blank" data-smartkarma-citation="entities:15946:1" rel="noopener">China Everbright Environment (257 HK)</a>, and <a href="https://www.smartkarma.com/entities/china-national-building-ma-h" target="_blank" data-smartkarma-citation="entities:184:1" rel="noopener">China National Building Material (3323 HK)</a> are the most likely ones to gain the most.</li>
<li>The newly listed companies in Hong Kong are exposed due to the translation of massive HKD proceeds to Rmb, with the impact on <a href="https://www.smartkarma.com/entities/sicc-co-ltd-e5b2bacc-ed46-4d8e-bfb1-ff952e730eae" target="_blank" data-smartkarma-citation="entities:45752:1" rel="noopener">SICC (2631 HK)</a> being the heaviest. </li>
</ul>


The appreciation of Rmb will bring benefits to some companies. With a lower USD rate and an inflow of funds to China, this trend is expected to continue into 2026.

H World Group (1179 HK), China Everbright Environment (257 HK), and China National Building Material (3323 HK) are the most likely ones to gain the most.
The newly listed companies in Hong Kong are exposed due to the translation of massive HKD proceeds to Rmb, with the impact on SICC (2631 HK) being the heaviest. 


China Strategy: Revisiting the Rmb Appreciation Story

Director, RaaS Research Group, Research as a Service (RaaS)

RaaS Research Group (RaaS)

Director, RaaS Research Group

Insightful Financial Models and Research Analysis

Research as a Service (RaaS)

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Equity Bottom-Up

Amaero International Ltd / Equity Bottom-Up

Amaero International Ltd manufactures metal working machinery. The Company offers laser-based additive, 3D printing, and other related technologies. Amaero International serves customers in Australia.

<ul><li>Amaero Ltd (ASX:3DA) is a global specialist in advanced materials manufacturing for the defence, aerospace and other industrial sectors, developing a critical metals alloy powder manufacturing facility in Tennessee, USA.</li><li>The company has announced that it has received a $4.6m purchase order from Titomic (ASX:TTT) for refractory alloy powders with powder shipments expected across Q3 and Q4 FY26.</li><li>The order has been received under the previously announced five-year exclusive supplier and development agreement between Titomic and Amaero for refractory and titanium spherical powders.</li></ul>

Amaero Ltd (ASX:3DA) is a global specialist in advanced materials manufacturing for the defence, aerospace and other industrial sectors, developing a critical metals alloy powder manufacturing facility in Tennessee, USA.The company has announced that it has received a $4.6m purchase order from Titomic (ASX:TTT) for refractory alloy powders with powder shipments expected across Q3 and Q4 FY26.The order has been received under the previously announced five-year exclusive supplier and development agreement between Titomic and Amaero for refractory and titanium spherical powders.

Amaero International Ltd - Order from Titomic adds to FY26 revenue

External broker reports(aggregated public sources), HDFC Securities

HDFC Securities

External broker reports(aggregated public sources)

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Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Voltas Limited offers engineering solutions for a wide spectrum of industries in areas such as heating, ventilation and air conditioning, refrigeration, electro-mechanical projects, textile machinery, machine tools, mining and construction equipment, materials handling, water management, building management systems, indoor air quality and chemicals.

<ul><li>We attended Voltas' analyst group meeting</li><li>Management indicated that demand continued to stay subdued in Q3</li><li>The industry decline, however, was less pronounced compared to Q2</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We attended Voltas' analyst group meetingManagement indicated that demand continued to stay subdued in Q3The industry decline, however, was less pronounced compared to Q2Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Voltas: Muted Demand Continues Amid Rising Cost Pressures. Maintain ADD

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

ANE (Cayman) Inc. operates as an integrated logistics company. The Company provides sorting, line-haul transportation, pickup and dispatch services, and other services. ANE (Cayman) offers services in China.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/ane-cayman-inc" target="_blank" data-smartkarma-citation="entities:35025:1" rel="noopener">ANE Cayman (9956 HK)</a>'s Scheme Doc is out, absent any reference to CDH (holding an estimated 18%). Given precedents with similar fact patterns, this is probably one deal to avoid.</li>
<li>
<a href="https://www.smartkarma.com/entities/hogy-medical-co-ltd" target="_blank" data-smartkarma-citation="entities:10493:1" rel="noopener">Hogy Medical (3593 JP)</a>'s Offer Price is more than expected; but the fact that Dalton , who really wanted to sell, but isn't selling, suggests the price should be higher.</li>
<li>8th January vote on <a href="https://www.smartkarma.com/entities/hsbc-holdings-plc" target="_blank" data-smartkarma-citation="entities:516:1" rel="noopener">HSBC (5 HK)</a>'s Offer for <a href="https://www.smartkarma.com/entities/hang-seng-bank-ltd" target="_blank" data-smartkarma-citation="entities:24:1" rel="noopener">Hang Seng Bank (11 HK)</a>.  Safe deal. This is effectively a term deposit hybrid.</li>
</ul>



ANE Cayman (9956 HK)'s Scheme Doc is out, absent any reference to CDH (holding an estimated 18%). Given precedents with similar fact patterns, this is probably one deal to avoid.

Hogy Medical (3593 JP)'s Offer Price is more than expected; but the fact that Dalton , who really wanted to sell, but isn't selling, suggests the price should be higher.
8th January vote on HSBC (5 HK)'s Offer for Hang Seng Bank (11 HK).  Safe deal. This is effectively a term deposit hybrid.


Last Week In Event SPACE: ANE Cayman. Hogy Medical, Hang Seng, Zhejiang Sanhua Intelligent

Japan Experts, Extraordinary Performance, Astris Advisory Japan

Astris Advisory Japan

Japan Experts, Extraordinary Performance

Our Corporate Advisory service is designed to give clients access to a wider range of investors. These include Japan specialists as well as global investors. The goal is to help achieve a fair equity valuation.

INTLOOP Inc. offers professional services. The Company provides business strategy, business reform consulting, project management supporting, professional human resources supporting, temporary staffing, and other services. INTLOOP also offers information technology consulting services.

<ul><li>Q1 FY7/26 results were positive with record-high quarterly sales and OP, illustrating management’s continued solid execution on multiple fronts: 1) margin enhancement by winning high-margin projects and improving the sales mix,</li><li>2) continued capacity expansion with new staff hires, and 3) bolt-on M&amp;A activity to increase the service offering in Infrastructure &amp; Telecommunications (such as data center construction), and growing its in-house freelance talent pool.</li><li>We believe management’s core growth strategy remains consistent and well-positioned to deliver sustainable growth, with a positive demand environment, high order visibility from large system integrators, and an increasingly proven execution track record.</li></ul>

Q1 FY7/26 results were positive with record-high quarterly sales and OP, illustrating management’s continued solid execution on multiple fronts: 1) margin enhancement by winning high-margin projects and improving the sales mix,2) continued capacity expansion with new staff hires, and 3) bolt-on M&amp;A activity to increase the service offering in Infrastructure &amp; Telecommunications (such as data center construction), and growing its in-house freelance talent pool.We believe management’s core growth strategy remains consistent and well-positioned to deliver sustainable growth, with a positive demand environment, high order visibility from large system integrators, and an increasingly proven execution track record.

Intloop (9556 Jp) - Solid Start to the Year

Industrials
Industrials Insights

China Strategy: Revisiting the Rmb Appreciation Story

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Research as a Service (RaaS)

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We attended Voltas' analyst group meeting. Management indicated that demand continued to stay subdued in Q3. The industry decline, however, was...

HDFC Securities

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We believe management’s core growth strategy remains consistent and well-positioned to deliver sustainable growth, with a positive demand...

Astris Advisory Japan

China Strategy: Revisiting the Rmb Appreciation Story

​Appreciation of Rmb benefits companies include H World Group, China Everbright Environment, and CNBM. Newly listed companies in Hong Kong are...

Osbert Tang, CFA

Amaero International Ltd - Order from Titomic adds to FY26 revenue

Amaero Ltd (ASX:3DA) is a global specialist in advanced materials manufacturing for the defence, aerospace and other industrial sectors,...

Research as a Service (RaaS)

Voltas: Muted Demand Continues Amid Rising Cost Pressures. Maintain ADD

We attended Voltas' analyst group meeting. Management indicated that demand continued to stay subdued in Q3. The industry decline, however, was...

HDFC Securities

Last Week In Event SPACE: ANE Cayman. Hogy Medical, Hang Seng, Zhejiang Sanhua Intelligent

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

Intloop (9556 Jp) - Solid Start to the Year

We believe management’s core growth strategy remains consistent and well-positioned to deliver sustainable growth, with a positive demand...

Astris Advisory Japan

Appreciation of Rmb benefits companies include H World Group, China Everbright Environment, and CNBM. Newly listed companies in Hong Kong are...