MSCI standard stocks quarterly adjustment of new stocks Wang Xinhua! Foreign investors reiterated buying and raised the target price to 6,000 yuan

MSCI announced today the latest quarterly adjustment for November. The global standard index added 6 shares of Wang Xinhua and eliminated 7 shares of Acer, while the global small-cap index added 11 shares of Acer and eliminated 24 shares of ADLINK. It is expected that on November 24 Effective after the market close, Xinhua's foreign investors reiterated their "buy" target price to 6,000 yuan due to strong order momentum from U.S. cloud service providers and Chinese server customers.

According to MSCI’s latest quarterly adjustment, the Global Standard Index constituent stocks have added six new stocks: Xinhua, Bizlian-KY, Chimao, Jinxiang Electronics, KYEC, and TECO, and eliminated seven stocks: Acer, AUO, MSI, Silicon Power, Synnex, Asahi Falcon, and Dalian. The quarterly adjustment results will take effect after the close of trading on November 24, Taiwan time.

The global small-cap index has added Canon, Acer, AUO, Dynamic, Eton, Liangwei, MSI, Silicon Power, Synnex, Asahi Falcon, and Dalianda, and eliminated ADLINK, Mingxuan, Xinhua, Bizlian-KY, Zhimao, Huangpu, Duntai, Jinxiang Electric, Food-KY, Haiyue, Shin Kong Steel, KYEC, High-end, Sanshang Investment Holdings, Zhongtian, Beiji, Prince Construction, Fengyi, Xinyi Housing, Zhiguan, TECO, TSRC, Tiwei West, Daxueguang.

Share Wang Xinhua announced revenue in the third quarter of this year of 2.33 billion yuan, a quarterly increase of 3.69%, an annual increase of 17.32%; gross profit margin 69.27%, a quarterly increase of 1.39 percentage points, an annual increase of 4.99 percentage points; operating profit rate 52.83%, a quarterly increase of 0.12 percentage points, an annual increase of 4.93 percentage points; after-tax net income 12.14 billion, a quarterly increase of 93%, an annual increase of 33.11%, and after-tax net earnings per share (EPS) of 32.12 yuan.

Foreign investors stated that Xinhua's gross profit margin reached a new high in the third quarter, which was better than originally set expectations. It mainly benefited from a favorable product mix, of which AST2600 accounts for a higher proportion. As sales volume continues to grow, the cost structure of AST2600 is also more reasonable. Therefore, it is estimated that gross profit margin in the fourth quarter is expected to continue to hit a record high.

Foreign investors believe that benefiting from strong order momentum and sufficient inventory from US cloud service providers and Chinese server customers, although Xinhua has not yet provided financial forecasts for 2026, judging from the current order momentum, management has seen that order visibility will continue until the first quarter of 2026, so it reiterated the "buy" rating and raised the target price to 6,000 yuan

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