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.

Thematic (Sector/Industry)

<ul><li>According to Bloomberg, India is considering imposing restriction on low-end smartphone (ASP &lt; US$150) from China. Chinese brands dominate India and, among the top-5 players, Chinese brands combined had a market share of 65% in 6M22.</li><li>If we use 1Q22 data, which has more detailed breakdown for smaller players, Chinese brands captured 74% of the market in India.</li><li>The policy, if implemented, would hit Xiaomi (1810 HK, NR) as India was the second largest smartphone market for the company in both 2021 and 6M2022, when the company was also the market leader in India in both periods.</li></ul>

According to Bloomberg, India is considering imposing restriction on low-end smartphone (ASP &lt; US$150) from China. Chinese brands dominate India and, among the top-5 players, Chinese brands combined had a market share of 65% in 6M22.If we use 1Q22 data, which has more detailed breakdown for smaller players, Chinese brands captured 74% of the market in India.The policy, if implemented, would hit Xiaomi (1810 HK, NR) as India was the second largest smartphone market for the company in both 2021 and 6M2022, when the company was also the market leader in India in both periods.

Tactical Trade Ideas - India May Restrict Low-End Chinese Smartphones

Research on Tech Companies

Evelyn Zhang

Equity Bottom-Up

Shenzhen Transsion Holdings  / Equity Bottom-Up

<ul>
<li>The Chinese mobile phone manufacturer Transsion is the largest by sales in Africa.  With over 40% shares of the African market, the company continue to expand in emerging market countries such as India, Bangladesh and Pakistan.</li>
<li>African mobile network is transitioning from 2G to 3G, with a 2G/3G coverage rate of 91% and 4G coverage rate of only 10%; in 2020, only 41% of phones sold were smartphones, with 3G penetration set to increase in the next 5 years.</li>
<li>Transsion’s success in African is largely due to the company’s deep localization for the African market, such as dark-skinned sensor camera, night photo capture, dark skin face recognition and unlocking in dark places, waterproof and sweat proof, multi-card, multi standby features etc. such features are often only found on Transsion phones.</li>
<li>Transsion has 8 apps with more than 10 million monthly active users, its music streaming media platform Boomplay is now 2nd largest in Africa ( after Google play )  with 130 million users by 2020.</li>
</ul>


The Chinese mobile phone manufacturer Transsion is the largest by sales in Africa.  With over 40% shares of the African market, the company continue to expand in emerging market countries such as India, Bangladesh and Pakistan.
African mobile network is transitioning from 2G to 3G, with a 2G/3G coverage rate of 91% and 4G coverage rate of only 10%; in 2020, only 41% of phones sold were smartphones, with 3G penetration set to increase in the next 5 years.
Transsion’s success in African is largely due to the company’s deep localization for the African market, such as dark-skinned sensor camera, night photo capture, dark skin face recognition and unlocking in dark places, waterproof and sweat proof, multi-card, multi standby features etc. such features are often only found on Transsion phones.
Transsion has 8 apps with more than 10 million monthly active users, its music streaming media platform Boomplay is now 2nd largest in Africa ( after Google play )  with 130 million users by 2020.


Transsion's (688036.SH) Conquest of African Mobile Phone Market

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

Post market close on Friday, the China Securities Index Company announced the changes to the <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-index" target="_blank" data-smartkarma-citation="entities:22906:1" rel="noopener">Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX)</a> that will be effective after the close of trading on 11 December.
There are 26 inclusions and exclusions in the review with an estimated one-way turnover of 3.87%.
The inclusions are <a href="https://www.smartkarma.com/entities/tongfang-guoxin-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:15513:1" rel="noopener">Unigroup Guoxin (002049 CH)</a>, <a href="https://www.smartkarma.com/entities/suzhou-dongshan-precision-a" target="_blank" data-smartkarma-citation="entities:8796:1" rel="noopener">Suzhou Dongshan Precision A (002384 CH)</a>, <a href="https://www.smartkarma.com/entities/wuhan-guide-infrared-co-ltd" target="_blank" data-smartkarma-citation="entities:20330:1" rel="noopener">Wuhan Guide Infrared Co,Ltd. (002414 CH)</a>, <a href="https://www.smartkarma.com/entities/jpmf-guangdong-co-ltd-a" target="_blank" data-smartkarma-citation="entities:19050:1" rel="noopener">Jpmf Guangdong Co Ltd A (002600 CH)</a>, <a href="https://www.smartkarma.com/entities/yunnan-chuangxin-new-material" target="_blank" data-smartkarma-citation="entities:27135:1" rel="noopener">Yunnan Chuangxin New Material (002812 CH)</a>, <a href="https://www.smartkarma.com/entities/asymchem-laboratories-tianjin-co-ltd" target="_blank" data-smartkarma-citation="entities:28265:1" rel="noopener">Asymchem Laboratories (002821 CH)</a>, <a href="https://www.smartkarma.com/entities/jafron-biomedical-co-ltd" target="_blank" data-smartkarma-citation="entities:29575:1" rel="noopener">Jafron Biomedical Co Ltd (300529 CH)</a>, <a href="https://www.smartkarma.com/entities/bgi-genomics-co-ltd" target="_blank" data-smartkarma-citation="entities:25890:1" rel="noopener">Bgi Genomics (300676 CH)</a>, <a href="https://www.smartkarma.com/entities/china-cssc-holdings-ltd-a" target="_blank" data-smartkarma-citation="entities:2464:1" rel="noopener">China Cssc Holdings Ltd A (600150 CH)</a>, <a href="https://www.smartkarma.com/entities/beijing-tiantan-biological-products-corp" target="_blank" data-smartkarma-citation="entities:5190:1" rel="noopener">Beijing Tiantan Biological Products (600161 CH)</a>, <a href="https://www.smartkarma.com/entities/jcet-group-co-ltd" target="_blank" data-smartkarma-citation="entities:8628:1" rel="noopener">JCET Group (600584 CH)</a>, <a href="https://www.smartkarma.com/entities/tsingtao-brewery-co-ltd-a" target="_blank" data-smartkarma-citation="entities:846:1" rel="noopener">Tsingtao Brewery Co Ltd A (600600 CH)</a>, <a href="https://www.smartkarma.com/entities/topchoice-medical-corporation" target="_blank" data-smartkarma-citation="entities:1102:1" rel="noopener">Topchoice Medical (600763 CH)</a>, <a href="https://www.smartkarma.com/entities/shanghai-baosight-software-co" target="_blank" data-smartkarma-citation="entities:28228:1" rel="noopener">Shanghai Baosight Software Co (600845 CH)</a>, <a href="https://www.smartkarma.com/entities/jonjee-high-tech-industrial-and-commercial-holding-co-ltd" target="_blank" data-smartkarma-citation="entities:14622:1" rel="noopener">Jonjee High-Tech Ind.&amp; Com. (600872 CH)</a>, <a href="https://www.smartkarma.com/entities/zhongtai-securities-co-ltd" target="_blank" data-smartkarma-citation="entities:29935:1" rel="noopener">Zhongtai Securities Co Ltd (600918 CH)</a>, <a href="https://www.smartkarma.com/entities/boc-international-china-co-a" target="_blank" data-smartkarma-citation="entities:29972:1" rel="noopener">Boc International China Co-A (601696 CH)</a>, <a href="https://www.smartkarma.com/entities/china-merchants-energy-a" target="_blank" data-smartkarma-citation="entities:14450:1" rel="noopener">China Merchants Energy A (601872 CH)</a>, <a href="https://www.smartkarma.com/entities/nanjing-securities-co-ltd" target="_blank" data-smartkarma-citation="entities:27192:1" rel="noopener">Nanjing Securities Co Ltd (601990 CH)</a>, Gan&amp;Lee Pharma (603087 CH), <a href="https://www.smartkarma.com/entities/gongniu-group-co-ltd" target="_blank" data-smartkarma-citation="entities:30060:1" rel="noopener">Gongniu Group Co Ltd (603195 CH)</a>, <a href="https://www.smartkarma.com/entities/beijing-wantai-biological-a" target="_blank" data-smartkarma-citation="entities:30129:1" rel="noopener">Beijing Wantai Biological-A (603392 CH)</a>, <a href="https://www.smartkarma.com/entities/montage-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:28236:1" rel="noopener">Montage Technology Co Ltd (688008 CH)</a>, <a href="https://www.smartkarma.com/entities/china-railway-signal-com-a" target="_blank" data-smartkarma-citation="entities:28237:1" rel="noopener">China Railway Signal &amp; Com-A (688009 CH)</a>, <a href="https://www.smartkarma.com/entities/advanced-micro-fabrication-a" target="_blank" data-smartkarma-citation="entities:30308:1" rel="noopener">Advanced Micro-Fabrication-A (688012 CH)</a> and <a href="https://www.smartkarma.com/entities/shenzhen-transsion-holding-a" target="_blank" data-smartkarma-citation="entities:30323:1" rel="noopener">Shenzhen Transsion Holding-A (688036 CH).</a>
The deletions are <a href="https://www.smartkarma.com/entities/hebei-iron-steel-co-ltd-a" target="_blank" data-smartkarma-citation="entities:11538:1" rel="noopener">Hebei Iron &amp; Steel Co Ltd A (000709 CH)</a>, <a href="https://www.smartkarma.com/entities/sichuan-tianqi-lithium-industries-inc" target="_blank" data-smartkarma-citation="entities:5698:1" rel="noopener">Sichuan Tianqi Lithium Industries, Inc (002466 CH)</a>, <a href="https://www.smartkarma.com/entities/zhejiang-idc-fluid-control-co-ltd" target="_blank" data-smartkarma-citation="entities:18695:1" rel="noopener">STO Express (002468 CH)</a>, <a href="https://www.smartkarma.com/entities/avic-helicopter-co-ltd-a" target="_blank" data-smartkarma-citation="entities:14380:1" rel="noopener">Avic Helicopter Co Ltd A (600038 CH)</a>, <a href="https://www.smartkarma.com/entities/tbea-co-ltd-a" target="_blank" data-smartkarma-citation="entities:20303:1" rel="noopener">Tbea Co Ltd A (600089 CH)</a>, <a href="https://www.smartkarma.com/entities/shanghai-construction-group-co-ltd" target="_blank" data-smartkarma-citation="entities:17136:1" rel="noopener">Shanghai Construction Group Co, Ltd. (600170 CH)</a>, <a href="https://www.smartkarma.com/entities/yanzhou-coal-mining-co-ltd" target="_blank" data-smartkarma-citation="entities:24592:1" rel="noopener">Yanzhou Coal Mining (600188 CH)</a>, <a href="https://www.smartkarma.com/entities/shandong-nanshan-aluminum-a" target="_blank" data-smartkarma-citation="entities:3920:1" rel="noopener">Shandong Nanshan Aluminum A (600219 CH)</a>, <a href="https://www.smartkarma.com/entities/hainan-airlines-co" target="_blank" data-smartkarma-citation="entities:24023:1" rel="noopener">Hainan Airlines Co (600221 CH)</a>, <a href="https://www.smartkarma.com/entities/china-avionics-systems-co-ltd" target="_blank" data-smartkarma-citation="entities:11393:1" rel="noopener">China Avionics Systems Co., Ltd. (600372 CH)</a>, <a href="https://www.smartkarma.com/entities/hla-corp-ltd" target="_blank" data-smartkarma-citation="entities:2586:1" rel="noopener">HLA CORP., Ltd. (600398 CH)</a>, <a href="https://www.smartkarma.com/entities/fangda-carbon-new-material-co-ltd" target="_blank" data-smartkarma-citation="entities:14878:1" rel="noopener">Fangda Carbon New Material Co, Ltd. (600516 CH)</a>, <a href="https://www.smartkarma.com/entities/offshore-oil-engineering-co-ltd-a" target="_blank" data-smartkarma-citation="entities:4968:1" rel="noopener">Offshore Oil Engineering A (600583 CH)</a>, <a href="https://www.smartkarma.com/entities/sichuan-chuantou-energy-stock-co-ltd" target="_blank" data-smartkarma-citation="entities:2557:1" rel="noopener">Sichuan Chuantou Energy Stock (600674 CH)</a>, <a href="https://www.smartkarma.com/entities/tonghua-dongbao-pharmaceutical-co-ltd" target="_blank" data-smartkarma-citation="entities:10358:1" rel="noopener">Tonghua Dongbao Pharmaceutical (600867 CH)</a>, <a href="https://www.smartkarma.com/entities/bank-of-xi-an-co-ltd" target="_blank" data-smartkarma-citation="entities:29936:1" rel="noopener">Bank of Xi'an Co Ltd (600928 CH)</a>, <a href="https://www.smartkarma.com/entities/cnooc-energy-technology-a" target="_blank" data-smartkarma-citation="entities:29941:1" rel="noopener">Cnooc Energy Technology &amp; -A (600968 CH)</a>, <a href="https://www.smartkarma.com/entities/china-film-co-ltd" target="_blank" data-smartkarma-citation="entities:29943:1" rel="noopener">China Film Co Ltd (600977 CH)</a>, <a href="https://www.smartkarma.com/entities/ningbo-port-co-ltd-a" target="_blank" data-smartkarma-citation="entities:9969:1" rel="noopener">Ningbo Port (601018 CH)</a>, <a href="https://www.smartkarma.com/entities/baiyin-nonferrous-group-co-a" target="_blank" data-smartkarma-citation="entities:29955:1" rel="noopener">Baiyin Nonferrous Group Co-A (601212 CH)</a>, <a href="https://www.smartkarma.com/entities/qingdao-port-international-co" target="_blank" data-smartkarma-citation="entities:29958:1" rel="noopener">Qingdao Port International Co (601298 CH)</a>, <a href="https://www.smartkarma.com/entities/red-star-macalline-group-corp" target="_blank" data-smartkarma-citation="entities:26732:1" rel="noopener">Red Star Macalline Group (601828 CH)</a>, <a href="https://www.smartkarma.com/entities/china-coal-energy-co-ltd" target="_blank" data-smartkarma-citation="entities:24607:1" rel="noopener">China Coal Energy (601898 CH)</a>, <a href="https://www.smartkarma.com/entities/bbmg-corporation" target="_blank" data-smartkarma-citation="entities:22769:1" rel="noopener">BBMG Corporation (601992 CH)</a>, <a href="https://www.smartkarma.com/entities/bank-of-guiyang-co-ltd" target="_blank" data-smartkarma-citation="entities:27479:1" rel="noopener">Bank of Guiyang Co Ltd (601997 CH)</a> and <a href="https://www.smartkarma.com/entities/hoshine-silicon-industry-c-a" target="_blank" data-smartkarma-citation="entities:26646:1" rel="noopener">Hoshine Silicon Industry C-A (603260 CH)</a>.
Only 3 of the inclusions have over 1 day of ADV to buy, while there are a lot more deletions that have over 1 day of ADV to sell.
The index universe has also been expanded to include STAR Board stocks that have been listed for over 1 year. The change was implemented at this review (with no advance notice) and will see the inclusion of <a href="https://www.smartkarma.com/entities/montage-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:28236:1" rel="noopener">Montage Technology Co Ltd (688008 CH)</a>, <a href="https://www.smartkarma.com/entities/china-railway-signal-com-a" target="_blank" data-smartkarma-citation="entities:28237:1" rel="noopener">China Railway Signal &amp; Com-A (688009 CH)</a>, <a href="https://www.smartkarma.com/entities/advanced-micro-fabrication-a" target="_blank" data-smartkarma-citation="entities:30308:1" rel="noopener">Advanced Micro-Fabrication-A (688012 CH)</a> and <a href="https://www.smartkarma.com/entities/shenzhen-transsion-holding-a" target="_blank" data-smartkarma-citation="entities:30323:1" rel="noopener">Shenzhen Transsion Holding-A (688036 CH)</a> into the <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-index" target="_blank" data-smartkarma-citation="entities:22906:1" rel="noopener">Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX)</a>.

Post market close on Friday, the China Securities Index Company announced the changes to the Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX) that will be effective after the close of trading on 11 December.
There are 26 inclusions and exclusions in the review with an estimated one-way turnover of 3.87%.
The inclusions are Unigroup Guoxin (002049 CH), Suzhou Dongshan Precision A (002384 CH), Wuhan Guide Infrared Co,Ltd. (002414 CH), Jpmf Guangdong Co Ltd A (002600 CH), Yunnan Chuangxin New Material (002812 CH), Asymchem Laboratories (002821 CH), Jafron Biomedical Co Ltd (300529 CH), Bgi Genomics (300676 CH), China Cssc Holdings Ltd A (600150 CH), Beijing Tiantan Biological Products (600161 CH), JCET Group (600584 CH), Tsingtao Brewery Co Ltd A (600600 CH), Topchoice Medical (600763 CH), Shanghai Baosight Software Co (600845 CH), Jonjee High-Tech Ind.&amp; Com. (600872 CH), Zhongtai Securities Co Ltd (600918 CH), Boc International China Co-A (601696 CH), China Merchants Energy A (601872 CH), Nanjing Securities Co Ltd (601990 CH), Gan&amp;Lee Pharma (603087 CH), Gongniu Group Co Ltd (603195 CH), Beijing Wantai Biological-A (603392 CH), Montage Technology Co Ltd (688008 CH), China Railway Signal &amp; Com-A (688009 CH), Advanced Micro-Fabrication-A (688012 CH) and Shenzhen Transsion Holding-A (688036 CH).
The deletions are Hebei Iron &amp; Steel Co Ltd A (000709 CH), Sichuan Tianqi Lithium Industries, Inc (002466 CH), STO Express (002468 CH), Avic Helicopter Co Ltd A (600038 CH), Tbea Co Ltd A (600089 CH), Shanghai Construction Group Co, Ltd. (600170 CH), Yanzhou Coal Mining (600188 CH), Shandong Nanshan Aluminum A (600219 CH), Hainan Airlines Co (600221 CH), China Avionics Systems Co., Ltd. (600372 CH), HLA CORP., Ltd. (600398 CH), Fangda Carbon New Material Co, Ltd. (600516 CH), Offshore Oil Engineering A (600583 CH), Sichuan Chuantou Energy Stock (600674 CH), Tonghua Dongbao Pharmaceutical (600867 CH), Bank of Xi'an Co Ltd (600928 CH), Cnooc Energy Technology &amp; -A (600968 CH), China Film Co Ltd (600977 CH), Ningbo Port (601018 CH), Baiyin Nonferrous Group Co-A (601212 CH), Qingdao Port International Co (601298 CH), Red Star Macalline Group (601828 CH), China Coal Energy (601898 CH), BBMG Corporation (601992 CH), Bank of Guiyang Co Ltd (601997 CH) and Hoshine Silicon Industry C-A (603260 CH).
Only 3 of the inclusions have over 1 day of ADV to buy, while there are a lot more deletions that have over 1 day of ADV to sell.
The index universe has also been expanded to include STAR Board stocks that have been listed for over 1 year. The change was implemented at this review (with no advance notice) and will see the inclusion of Montage Technology Co Ltd (688008 CH), China Railway Signal &amp; Com-A (688009 CH), Advanced Micro-Fabrication-A (688012 CH) and Shenzhen Transsion Holding-A (688036 CH) into the Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX). 

STAR Board: CSI300 Index Rebalance: Rule Change Sees STAR Board Stocks Included

China

Shenzhen Transsion Holdings Co., Ltd. produces and sells mobile phones. The Company provides mobile phones researching, development, designing, production, sales, after-sales services, and other services. Shenzhen Transsion Holdings markets its products worldwide.

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Shenzhen Transsion Holdings (688036 CH)

Tactical Trade Ideas - India May Restrict Low-End Chinese Smartphones

India’s Potential Restriction on Low-End Chinese Smartphones Could Hit 3-4% of Total Revenue. According to Bloomberg, India is considering imposing...

Quam Securities

Transsion's (688036.SH) Conquest of African Mobile Phone Market

Africa, as diverse as its continental size is vast. How did a Chinese mobile phone manufacturer crack the market and become the de facto leader and...

Evelyn Zhang

STAR Board: CSI300 Index Rebalance: Rule Change Sees STAR Board Stocks Included

There are 26 inclusions/exclusions from the CSI300 index with a one way turnover of 3.87%. An expansion of the universe has 4 STAR Board stocks...

Brian Freitas

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