On August 21, 2026, Hang Seng Indexes Company unveiled the results of its quarterly index review as of June 30, 2026, with TSUGAMI CHINA (01651) being added to the Hang Seng Composite Index. The index changes are scheduled to take effect after the market close on Friday, September 4, and will become active starting Monday, September 7, at which point the Shanghai and Shenzhen stock exchanges will correspondingly adjust the list of eligible securities for Stock Connect investment.
TSUGAMI CHINA (01651) stands a strong chance of being incorporated into the Stock Connect program, as it has met a series of criteria including market capitalization and liquidity thresholds. In a recent research report, Citi initiated coverage on TSUGAMI CHINA (01651) with a "Buy/High Risk" rating and a target price of HK$72, anticipating that the company will benefit from robust capital expenditure growth in the electronics and AI liquid cooling industries. These two sectors together account for approximately 40% of new orders, already surpassing the automotive sector's contribution, which stands at under 30%.
Additionally, Citi suggests that humanoid robots could emerge as the next significant growth driver for the company, although such orders currently contribute only about 2%. With the potential inclusion in Stock Connect also on the horizon, this could serve as a positive short-term catalyst for the stock.
Comments