HK Stock Connect Insight | FS.COM (03355.HK): Southbound stake rises to 1.05% after Stock Connect inclusion on Sept 7

NewTimeSpace News:On 3 November, FS.COM (03355.HK) published a voluntary announcement stating that, under the H share award scheme approved at the shareholders' meeting on 16 September, the trustee had purchased 145,000 H shares in the market on 3 November at an average consideration of about HK$31.543 per share, for a total consideration of about HK$4.574 million, representing about 0.04% of the total number of issued shares. Immediately following that purchase, the trustee held 903,100 H shares under the scheme.

The trustee has been buying in the market since 26 October. On 26 October it bought 123,000 shares at an average consideration of about HK$36.95 per share, for about HK$4.54 million; on 27 October, 370,000 shares at about HK$37.491 each, for about HK$13.8715 million; on 28 October, 265,100 shares at about HK$38.921 each, for about HK$10.318 million; and on 3 November, 145,000 shares at about HK$31.543 each, for about HK$4.574 million. The Board said it would from time to time review and determine at its sole discretion the number of H shares it considers appropriate to award under the scheme and to purchase further in the market.

In the market, FS.COM's shares have fluctuated lower since listing. The company listed on the Main Board of the Stock Exchange on 23 March at an offer price of HK$41.60 and closed at HK$47.200 on its first trading day. The highest intraday price since listing came on 16 April at HK$56.600, with the highest close of HK$54.450 also recorded that day, while the lowest intraday price was HK$27.960 on 10 June. The shares recovered to around HK$38 in the second half of October. As of the close on 4 November, the shares stood at HK$32.920, up 4.18%.

On southbound holdings, the company was added to the Stock Connect list effective 7 September 2026, following the quarterly review results published by Hang Seng Indexes Company on 21 August, which saw the stock admitted to the Hang Seng Composite Index, with the changes implemented after the close on 4 September and taking effect on 7 September. According to Choice data, southbound holdings stood at 232,400 shares on 9 September, equal to 0.04% of issued shares, and have continued to build up since, with the largest single-day net addition of 591,500 shares recorded on 11 September. Holdings rose to 4,244,000 shares, or 1.04% of issued shares, on 30 October, and further to 4,277,100 shares, or 1.05%, on 3 November.

On fundamentals, the company disclosed unaudited financial data for the nine months ended 30 September 2026 on 23 October, prepared under International Financial Reporting Standards. Revenue was RMB2.8945 billion, up 33.1% year on year; net profit was RMB755.6 million, up 78.5%; and adjusted net profit, excluding share-based payment expenses, listing expenses and interest on redemption liabilities, was RMB777.9 million, up 68.9%. The company said results benefited from continued increases in AI infrastructure investment across various sectors, which lifted business sentiment in the enterprise high-speed network infrastructure industry, together with the business synergies delivered by the Boda acquisition, keeping the order book of the group's core business on a solid growth trend.

On institutional research, Northeast Securities noted in a recent research report that the acquisition of Shanghai Boda is key to FS.COM building a full-stack closed loop in network equipment. By deeply integrating the company's existing optical communications devices and DTC online channel with Boda's self-developed capabilities in switches, routers and other data communications equipment, the company has moved from being a standalone module supplier to a full-stack solution provider. At present, more than 80 first-batch self-developed and self-produced network devices have been formally launched into the market, marking the entry of the two sides' synergy into the product landing stage.