This is a bug in v5. In v4 everything works correctly.
I've created a small repo where I reproduce the problem. Demo: https://everdimension.github.io/react-redux-5-composition-bug/build/
Here's the code
Here's the repo
If you install react-redux@4, components are updated correctly.
My guess is that PR #589 might have something to do with the problem but I didn't read it thoroughly.