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 Jun 7th 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 Tencent (700 HK), AIA (1299 HK), Xiaomi Corporation (1810 HK).</li>
<li>In the past 30 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), AIA (1299 HK), Hang Seng Bank (11 HK).</li>
</ul>


We analyze statistics on top repurchases over one week, one month, one quarter and one year periods ended on Jun 7th based on HKEx daily reports.
In the past 7 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), AIA (1299 HK), Xiaomi Corporation (1810 HK).
In the past 30 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), AIA (1299 HK), Hang Seng Bank (11 HK).


Hong Kong Buybacks Weekly (Jun 7th): Tencent, Aia, Xiaomi Corporation

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>Meituan reported (6 Jun) its 1Q24 results: revenue was RMB73.3bn, up 25% YoY, 4/6% higher than our estimate/Bloomberg consensus estimate.</li><li>Adjusted net profit during 1Q24 reached RMB7.5bn, better than our estimate/consensus at RMB5.5bn/5.8bn, due to both better-than-expected operating profit (OP) generated from core local commerce (CLC) business, aided by better-thanexpected order volume growth of on-demand delivery business, and narrowerthan-expected loss generated from new business, in particular the narrowerthan-expected loss generated from Meituan Select.</li><li>We are more positive on Meituan’s 2024E net profit growth prospects, given its likely better unit economics (UE) outlook for on-demand delivery business with the optimization of subsidies and increase in monetization from advertising business, as well as potentially greater loss reduction from Meituan Select. </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Meituan reported (6 Jun) its 1Q24 results: revenue was RMB73.3bn, up 25% YoY, 4/6% higher than our estimate/Bloomberg consensus estimate.Adjusted net profit during 1Q24 reached RMB7.5bn, better than our estimate/consensus at RMB5.5bn/5.8bn, due to both better-than-expected operating profit (OP) generated from core local commerce (CLC) business, aided by better-thanexpected order volume growth of on-demand delivery business, and narrowerthan-expected loss generated from new business, in particular the narrowerthan-expected loss generated from Meituan Select.We are more positive on Meituan’s 2024E net profit growth prospects, given its likely better unit economics (UE) outlook for on-demand delivery business with the optimization of subsidies and increase in monetization from advertising business, as well as potentially greater loss reduction from Meituan Select. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Meituan (3690 HK) - 1Q Results Pointed to a Better Full-Year Earnings Growth Outlook

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

<ul>
<li>Total revenue increased by 25% YoY and all business lines grew strongly.</li>
<li>In 1Q24, the operating losses from new initiatives decreased by 45% YoY, but new initiatives revenue still grow.</li>
<li>We conclude that the price target can be double of the market price.</li>
</ul>


Total revenue increased by 25% YoY and all business lines grew strongly.
In 1Q24, the operating losses from new initiatives decreased by 45% YoY, but new initiatives revenue still grow.
We conclude that the price target can be double of the market price.


MT/ Meituan (3690 HK): 1Q24, Total Revenue Up by 25% and Initiatives Loss Down by 45%

Blue Lotus Research Institute

Andy Fu

China growth and global non-US Internet equities

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

<ul>
<li>During the upcoming Dragon Boat Festival, both flight and railway traffic seems sluggish, indicating a cooled-down enthusiasm for long-distance trips due to budget constraints.</li>
<li>Data points to booming short-distance travel with self-driving as the major means, helped by lower price;</li>
<li>Benefiting from hotel booking and catering, Meituan is the biggest beneficiary of such consumption downgrade.</li>
</ul>


During the upcoming Dragon Boat Festival, both flight and railway traffic seems sluggish, indicating a cooled-down enthusiasm for long-distance trips due to budget constraints.
Data points to booming short-distance travel with self-driving as the major means, helped by lower price;
Benefiting from hotel booking and catering, Meituan is the biggest beneficiary of such consumption downgrade.


Meituan Is the Biggest Beneficiary of China's Domestic Travel Recovery

Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet research

Thematic (Sector/Industry)

<ul>
<li>3690 HK: The prevalence of short-distance trips bodes well for Metiuan, albeit long-distance trips remain lukewarm.(+)</li>
<li>700 HK: NPPA Released the June Import Game Code Approvals, and Tencent's &lt;VALORANT Mobile&gt; received approval.(+)</li>
<li>SHEIN/4385 JP: SHEIN expands its C2C shopping platform into Europe (+/-)</li>
</ul>


3690 HK: The prevalence of short-distance trips bodes well for Metiuan, albeit long-distance trips remain lukewarm.(+)
700 HK: NPPA Released the June Import Game Code Approvals, and Tencent's &lt;VALORANT Mobile&gt; received approval.(+)
SHEIN/4385 JP: SHEIN expands its C2C shopping platform into Europe (+/-)


[Blue Lotus Daily - TMT Update]:3690 HK/700 HK/SHEIN/4385 JP/Douyin

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.

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Meituan (3690 HK)

Hong Kong Buybacks Weekly (Jun 7th): Tencent, Aia, Xiaomi Corporation

We analyzed the Hong Kong buyback data in the past week and highlight the top 3 companies that repurchased the most shares were Tencent (700 HK),...

Ke Yan, CFA, FRM

Meituan (3690 HK) - 1Q Results Pointed to a Better Full-Year Earnings Growth Outlook

Meituan reported (6 Jun) its 1Q24 results: revenue was RMB73.3bn, up 25% YoY, 4/6% higher than our estimate/Bloomberg consensus estimate.

CMB International

MT/ Meituan (3690 HK): 1Q24, Total Revenue Up by 25% and Initiatives Loss Down by 45%

Total revenue increased by 25% YoY and all business lines grew strongly. In 1Q24, the operating losses from new initiatives decreased by 45% YoY....

Ming Lu

Meituan Is the Biggest Beneficiary of China's Domestic Travel Recovery

Consumer enthusiasm for long-distance trips during the Dragon Boat Festival has cooled. Short-distance tours are popular, benefiting low-cost...

Blue Lotus Research Institute

[Blue Lotus Daily - TMT Update]:3690 HK/700 HK/SHEIN/4385 JP/Douyin

Short-distance trips boost Metiuan's prospects, while long-distance trips lag. Tencent's <valorant mobile> gets approval in June import game code....

Blue Lotus Research Institute

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Hong Kong Buybacks Weekly (Jun 7th): Tencent, Aia, Xiaomi Corporation

We analyzed the Hong Kong buyback data in the past week and highlight the top 3 companies that repurchased the most shares were Tencent (700 HK),...

Ke Yan, CFA, FRM

Meituan (3690 HK) - 1Q Results Pointed to a Better Full-Year Earnings Growth Outlook

Meituan reported (6 Jun) its 1Q24 results: revenue was RMB73.3bn, up 25% YoY, 4/6% higher than our estimate/Bloomberg consensus estimate.

CMB International

MT/ Meituan (3690 HK): 1Q24, Total Revenue Up by 25% and Initiatives Loss Down by 45%

Total revenue increased by 25% YoY and all business lines grew strongly. In 1Q24, the operating losses from new initiatives decreased by 45% YoY....

Ming Lu

Meituan Is the Biggest Beneficiary of China's Domestic Travel Recovery

​Consumer enthusiasm for long-distance trips during the Dragon Boat Festival has cooled. Short-distance tours are popular, benefiting low-cost...

Blue Lotus Research Institute

[Blue Lotus Daily - TMT Update]:3690 HK/700 HK/SHEIN/4385 JP/Douyin

​Short-distance trips boost Metiuan's prospects, while long-distance trips lag. Tencent's <valorant mobile> gets approval in June import game code....

Blue Lotus Research Institute

Consumer enthusiasm for long-distance trips during the Dragon Boat Festival has cooled. Short-distance tours are popular, benefiting low-cost...

Short-distance trips boost Metiuan's prospects, while long-distance trips lag. Tencent's <valorant mobile> gets approval in June import game code....