Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

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.

Equity Bottom-Up

<ul>
<li>Meituan's operating loss in “initiatives” reached its record high in 3Q21.</li>
<li>However, we believe loss will decrease in 2022 as small community-group-purchase companies are struggling.</li>
<li>We believe the stock has a downside of 27% for the end of 2022.</li>
</ul>


Meituan's operating loss in “initiatives” reached its record high in 3Q21.
However, we believe loss will decrease in 2022 as small community-group-purchase companies are struggling.
We believe the stock has a downside of 27% for the end of 2022.


Meituan (3690 HK): 3Q21, Record Loss, But Will Beat Small Companies in Community Group Purchase

Equity Analyst, LightStream Research

Shifara Samsudeen, FCMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Capital Markets

<ul>
<li>Meituan’s 3Q2021 revenue grew 37.9% YoY to RMB48.8bn (vs consensus RMB49.6bn) while operating losses for the quarter increased to RMB10.1bn (vs RMB5.5bn). </li>
<li>The reported operating loss was the biggest ever quarterly losses for the company due to the antitrust fine. Even excl. the fine, Meituan’s operating losses were 13.8% of revenues. </li>
<li>Food delivery OPM dropped to 3.3% during the period while new initiatives &amp; others segment continued to post heavy losses during the quarter.</li>
</ul>


Meituan’s 3Q2021 revenue grew 37.9% YoY to RMB48.8bn (vs consensus RMB49.6bn) while operating losses for the quarter increased to RMB10.1bn (vs RMB5.5bn). 
The reported operating loss was the biggest ever quarterly losses for the company due to the antitrust fine. Even excl. the fine, Meituan’s operating losses were 13.8% of revenues. 
Food delivery OPM dropped to 3.3% during the period while new initiatives &amp; others segment continued to post heavy losses during the quarter.


Meituan Posts Biggest Ever Operating Losses Due to Antitrust Fine

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

China Tourism Group Duty Free Corp Ltd / Equity Capital Markets

<ul>
<li>China Tourism Group Duty Free Corporation Limited (CDF) aims to raise around US$5bn in its H-share listing in Hong Kong.</li>
<li>As per Frost &amp; Sullivan, CDF had 92.3% market share by retail revenue in China duty-free merchandise sales in 2020.</li>
<li>In this note, we will talk about the recent updates and look at the likely valuations.</li>
</ul>


China Tourism Group Duty Free Corporation Limited (CDF) aims to raise around US$5bn in its H-share listing in Hong Kong.
As per Frost &amp; Sullivan, CDF had 92.3% market share by retail revenue in China duty-free merchandise sales in 2020.
In this note, we will talk about the recent updates and look at the likely valuations.


China Tourism Group A/​H Listing - Recent Updates and a Quick Look at Valuations

Research from EqualOcean, EqualOcean

EqualOcean

Research from EqualOcean

EqualOcean is an investment research firm and information service provider focusing on China's Technology, Automotive and Consumer Internet sectors. With unique research and due diligence methodology, we provide tailored insights into a wide range of industries and companies, empowering our clients' value-added decisions.

Founded in 2014, EqualOcean is headquartered in Beijing and has offices in Shanghai, Shenzhen and New York.

<ul><li>ByteDance's ambition in healthcare - According to EqualOcean data, ByteDance has invested in 56 companies in 2021 only</li><li>Expanding in adjacent fields - It is generally easier to invest in areas that are more compatible with a company's core businesses.</li><li>Still, a long way to go - Online healthcare is a domain full of risks. </li></ul>

ByteDance's ambition in healthcare - According to EqualOcean data, ByteDance has invested in 56 companies in 2021 onlyExpanding in adjacent fields - It is generally easier to invest in areas that are more compatible with a company's core businesses.Still, a long way to go - Online healthcare is a domain full of risks. 

A Late Starter, ByteDance Begins to Accelerate Its Effort in Healthcare

<ul>
<li>Cloud Village Inc. (CVI), also known as NetEase Music, plans to raise around US$450m in its Hong Kong IPO.</li>
<li>The company has also obtained investments from Baidu and Alibaba, along with other investors.</li>
<li>In this note, we will run the deal through our ECM framework and talk about valuations.</li>
</ul>


Cloud Village Inc. (CVI), also known as NetEase Music, plans to raise around US$450m in its Hong Kong IPO.
The company has also obtained investments from Baidu and Alibaba, along with other investors.
In this note, we will run the deal through our ECM framework and talk about valuations.


Cloud Village (NetEase Music) IPO - Cornered Deal but Offers Limited Upside

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)

Meituan (3690 HK): 3Q21, Record Loss, But Will Beat Small Companies in Community Group Purchase

Operating loss in “initiatives” reached record high 3Q21. We believe loss will decrease in 2022 as small community-group-purchase companies are...

Ming Lu

Meituan Posts Biggest Ever Operating Losses Due to Antitrust Fine

Meituan's 3Q21 operating loss was the biggest ever quarterly loss for the company due to the antitrust fine. Even excluding the fine, operating...

Shifara Samsudeen, FCMA, CGMA

China Tourism Group A/H Listing - Recent Updates and a Quick Look at Valuations

China Tourism Group Duty Free Corporation Limited (CDF) aims to raise around US$5bn in its H-share listing in Hong Kong. In this note we talk about...

Sumeet Singh

A Late Starter, ByteDance Begins to Accelerate Its Effort in Healthcare

The Chinese upstart behind TikTok has emerged into a major venture capital investor. Online healthcare (or telehealth) has been in the spotlight in...

EqualOcean

Cloud Village (NetEase Music) IPO - Cornered Deal but Offers Limited Upside

Cloud Village, also known as NetEase Music, plans to raise around US$450m in its Hong Kong IPO. In this note, we run the deal through our ECM...

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Meituan (3690 HK): 3Q21, Record Loss, But Will Beat Small Companies in Community Group Purchase

Operating loss in “initiatives” reached record high 3Q21. We believe loss will decrease in 2022 as small community-group-purchase companies are...

Ming Lu

Meituan Posts Biggest Ever Operating Losses Due to Antitrust Fine

Meituan's 3Q21 operating loss was the biggest ever quarterly loss for the company due to the antitrust fine. Even excluding the fine, operating...

Shifara Samsudeen, FCMA, CGMA

China Tourism Group A/​H Listing - Recent Updates and a Quick Look at Valuations

China Tourism Group Duty Free Corporation Limited (CDF) aims to raise around US$5bn in its H-share listing in Hong Kong. In this note we talk about...

Sumeet Singh

A Late Starter, ByteDance Begins to Accelerate Its Effort in Healthcare

The Chinese upstart behind TikTok has emerged into a major venture capital investor. Online healthcare (or telehealth) has been in the spotlight in...

EqualOcean

Cloud Village (NetEase Music) IPO - Cornered Deal but Offers Limited Upside

Cloud Village, also known as NetEase Music, plans to raise around US$450m in its Hong Kong IPO. In this note, we run the deal through our ECM...

Sumeet Singh

China Tourism Group A/H Listing - Recent Updates and a Quick Look at Valuations