Daily Brief TMT/Internet: Eoptolink Technology , Kokusai Electric , Pateo Connect Technology, Coherent and more

• There could be 18 changes at the December rebalance with the Industrials sector gaining 3 index spots and the Information Technology sector losing 5 spots.
• We estimate one-way turnover of 3.3% at the rebalance leading to a one-way trade of CNY 22.07bn (US$3bn). There are a lot of stocks with multiple days ADV to trade.
• The potential adds have outperformed the potential deletes. There were ETF inflows last week amid a short selling crackdown as the Third Plenum kicks off.

• Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
• On the IPO front, there were a number of listing in the past week, most of which performed as per our expectations.
• On the placement front, Japan continued to dominate the ECM flows.

• Pateo Connect Technology (PTC HK) seeks to raise up to US$300m in its upcoming HK IPO. The deal will be run by CICC, Guotai Junan, CMBI, Huatai and Citic Securities.
• Pateo Connect Technology (PCT) provides one-stop smart cockpit solutions and intelligent vehicle connectivity solutions. Its smart cockpit solutions enhance driving safety, convenience and connectivity, offering a more intelligent driving experience. 
• It offers OEM customers the flexibility to choose individual software and products or combine various components into a seamless and integrated smart cockpit solution. 

• Coherent Corp. is a maker of optical components with a focus on optical connectivity within GPU clusters
• Predicted 20%+ internal rate of return over a 3-year holding period due to secular adoption trends
• Emphasis on addressing interconnect bandwidth wall issue in data centers to improve data movement speed in relation to compute speeds

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.