Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Equity Bottom-Up

Smoore International Holdings / Equity Bottom-Up

<ul>
<li>China's National Team was steadily buying ETF's during and after the Third Plenum.  Southbound Connect Flows continue to be positive during July.</li>
<li>
<a href="https://www.smartkarma.com/entities/smoore-international-holdings" target="_blank" data-smartkarma-citation="entities:28241:1" rel="noopener">Smoore International Holdings (6969 HK)</a> , <a href="https://www.smartkarma.com/entities/xinjiang-goldwind-science-technology-h" target="_blank" data-smartkarma-citation="entities:10112:1" rel="noopener">Xinjiang Goldwind Science &amp; Technology (2208 HK)</a> and <a href="https://www.smartkarma.com/entities/hisense-home-appliances-group-co-ltd-h" target="_blank" data-smartkarma-citation="entities:20107:1" rel="noopener">Hisense Home Appliances Group Co., Ltd. H (921 HK)</a>  benefited from positive news sentiment this week.</li>
<li>
<a href="https://www.smartkarma.com/entities/chow-tai-fook-jewellery-group" target="_blank" data-smartkarma-citation="entities:549:1" rel="noopener">Chow Tai Fook Jewellery (1929 HK)</a> and <a href="https://www.smartkarma.com/entities/asm-pacific-technology-ltd" target="_blank" data-smartkarma-citation="entities:15061:1" rel="noopener">ASM Pacific Technology (522 HK)</a> suffered on negative news, while <a href="https://www.smartkarma.com/entities/meituan" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a> continued its pullback in concert with the retail food sector.</li>
</ul>


China's National Team was steadily buying ETF's during and after the Third Plenum.  Southbound Connect Flows continue to be positive during July.

Smoore International Holdings (6969 HK) , Xinjiang Goldwind Science &amp; Technology (2208 HK) and Hisense Home Appliances Group Co., Ltd. H (921 HK)  benefited from positive news sentiment this week.

Chow Tai Fook Jewellery (1929 HK) and ASM Pacific Technology (522 HK) suffered on negative news, while Meituan (3690 HK) continued its pullback in concert with the retail food sector.


The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (July 26)

Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Thematic (Sector/Industry)

<ul>
<li>1797 HK/JD US: Popular live streamer Dong Yuhui leaves East Buy (-/+)</li>
<li>BABA US/PDD US: AliExpress receives small fine in Korea due to data privacy violation (+)</li>
<li>Chinese Gaming Industry: Games Can Now Be Filed for Testing Without Approval of Game Code, Guangdong Province Leads the Way  (+)</li>
</ul>


1797 HK/JD US: Popular live streamer Dong Yuhui leaves East Buy (-/+)
BABA US/PDD US: AliExpress receives small fine in Korea due to data privacy violation (+)
Chinese Gaming Industry: Games Can Now Be Filed for Testing Without Approval of Game Code, Guangdong Province Leads the Way  (+)


[Blue Lotus Daily-TMT Update]:1797 HK/JD US/BABA US/PDD US/3690 HK/1024HK/700HK/NTE US/TCOMUS/AMZNUS

<ul>
<li>We expect Meituan’s C2Q24 rev. and non-IFRS NI to be 0.7% and 12.3% higher than cons, driven by resilient catering demand and eased competition.</li>
<li>We expect Meituan in-store OPM improve to 33%/35% in 2Q24/2H24 supported by increasing commission rate and cutting BD cost.</li>
<li>We maintain the stock as BUY rating and raise TP by HK$4 to HK$160/share to factor in the better profitability.</li>
</ul>


We expect Meituan’s C2Q24 rev. and non-IFRS NI to be 0.7% and 12.3% higher than cons, driven by resilient catering demand and eased competition.
We expect Meituan in-store OPM improve to 33%/35% in 2Q24/2H24 supported by increasing commission rate and cutting BD cost.
We maintain the stock as BUY rating and raise TP by HK$4 to HK$160/share to factor in the better profitability.


[Meituan (3690 HK, BUY, TP HK$160) TP Change]: Resilient Catering & Eased Competition Support Growth

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyze statistics on top repurchases over one week, one month, one quarter and one year periods ended on Jul 26th based on HKEx daily reports.</li>
<li>In the past 7 days, the top 3 companies that repurchased the most shares from the market were Meituan (3690 HK), AIA (1299 HK), HSBC (5 HK).</li>
<li>In the past 30 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), Meituan (3690 HK), AIA (1299 HK).</li>
</ul>


We analyze statistics on top repurchases over one week, one month, one quarter and one year periods ended on Jul 26th based on HKEx daily reports.
In the past 7 days, the top 3 companies that repurchased the most shares from the market were Meituan (3690 HK), AIA (1299 HK), HSBC (5 HK).
In the past 30 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), Meituan (3690 HK), AIA (1299 HK).


Hong Kong Buybacks Weekly (Jul 26th): Meituan, Aia, Hsbc

Andy Fu

<ul>
<li>We call the communique courageous because it pressed ahead on three fundamental, long standing issues of Chinese economy: fiscal revenue, social security and over-capacity;</li>
<li>But we question its timing as well as the wisdom of staunch refusal to print money to revive consumption. In our view, such measure doesn't run counter to the communique;</li>
<li>We believe the likelihood points to prolonged slow recovery in consumption, investment, job market and eventually manufacturing. But we see positive momentum in healthcare, infrastructure and eventually consumption.</li>
</ul>


We call the communique courageous because it pressed ahead on three fundamental, long standing issues of Chinese economy: fiscal revenue, social security and over-capacity;
But we question its timing as well as the wisdom of staunch refusal to print money to revive consumption. In our view, such measure doesn't run counter to the communique;
We believe the likelihood points to prolonged slow recovery in consumption, investment, job market and eventually manufacturing. But we see positive momentum in healthcare, infrastructure and eventually consumption.


The 3rd Plenum of CCPCC Announced An Courageous But Tough-To-Execute Communique

China

Meituan operates as a web based shopping platform for locally found consumer products and retail services. The Company offers deals of the day by selling vouchers on local services and entertainment, dining, delivery, and other services. Meituan provides its services throughout China.

Price Gauge
52-week Range	0.00 - 0.00
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Meituan (3690 HK)

The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (July 26)

China's National Team continued buying in the ETF market. Smoore International, Xinjiang Goldwind and Hisense had positive news sentiment, while...

David Mudd

[Blue Lotus Daily-TMT Update]:1797 HK/JD US/BABA US/PDD US/3690 HK/1024HK/700HK/NTE US/TCOMUS/AMZNUS

Popular live streamer Dong Yuhui leaves East Buy, AliExpress fined for data privacy violation in Korea, and Guangdong Province allows games to be...

Blue Lotus Research Institute

[Meituan (3690 HK, BUY, TP HK$160) TP Change]: Resilient Catering & Eased Competition Support Growth

Meituan's strong performance in Q2 2024 driven by resilient catering demand and improved profitability, stock maintained as BUY with raised target...

Blue Lotus Research Institute

Hong Kong Buybacks Weekly (Jul 26th): Meituan, Aia, Hsbc

We analyzed the Hong Kong buyback data in the past week and highlight the top 3 companies that repurchased the most shares were Meituan (3690 HK),...

Ke Yan, CFA, FRM

The 3rd Plenum of CCPCC Announced An Courageous But Tough-To-Execute Communique

The communique of CCP's 3rd Plenum of the 20th CC has pressed forward with tough reforms in the next five years. While timing is quite bad, it...

Blue Lotus Research Institute

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (July 26)

China's National Team continued buying in the ETF market. Smoore International, Xinjiang Goldwind and Hisense had positive news sentiment, while...

David Mudd

[Blue Lotus Daily-TMT Update]:1797 HK/JD US/BABA US/PDD US/3690 HK/1024HK/700HK/NTE US/TCOMUS/AMZNUS

​Popular live streamer Dong Yuhui leaves East Buy, AliExpress fined for data privacy violation in Korea, and Guangdong Province allows games to be...

Blue Lotus Research Institute

[Meituan (3690 HK, BUY, TP HK$160) TP Change]: Resilient Catering & Eased Competition Support Growth

​Meituan's strong performance in Q2 2024 driven by resilient catering demand and improved profitability, stock maintained as BUY with raised target...

Blue Lotus Research Institute

Hong Kong Buybacks Weekly (Jul 26th): Meituan, Aia, Hsbc

We analyzed the Hong Kong buyback data in the past week and highlight the top 3 companies that repurchased the most shares were Meituan (3690 HK),...

Ke Yan, CFA, FRM

The 3rd Plenum of CCPCC Announced An Courageous But Tough-To-Execute Communique

​The communique of CCP's 3rd Plenum of the 20th CC has pressed forward with tough reforms in the next five years. While timing is quite bad, it...

Blue Lotus Research Institute

Popular live streamer Dong Yuhui leaves East Buy, AliExpress fined for data privacy violation in Korea, and Guangdong Province allows games to be...

Meituan's strong performance in Q2 2024 driven by resilient catering demand and improved profitability, stock maintained as BUY with raised target...

The communique of CCP's 3rd Plenum of the 20th CC has pressed forward with tough reforms in the next five years. While timing is quite bad, it...