APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC IPOs & Placements

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 Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/beijing-dmall-e-commerce-co-ltd" target="_blank" data-smartkarma-citation="entities:36623:1" rel="noopener">Dmall Inc (1751691D CH)</a> is looking to raise around US$200m in its upcoming Hong Kong IPO.</li>
<li>Dmall provides cloud-based, end-to-end SaaS platform purpose-built for the Chinese retail industry.</li>
<li>In this note, we will talk about the not so positive aspects of the deal.</li>
</ul>



Dmall Inc (1751691D CH) is looking to raise around US$200m in its upcoming Hong Kong IPO.
Dmall provides cloud-based, end-to-end SaaS platform purpose-built for the Chinese retail industry.
In this note, we will talk about the not so positive aspects of the deal.


Dmall Pre-IPO - The Negatives - Path to Profitability Remains Murky and Related Party Sales an Issue

China/Asia TMT

Shawn Yang

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

Equity Bottom-Up

<ul>
<li>Baidu delivered 1Q23 results with top line beat our estimate by 3.5%, and non-GAAP net income beat our estimate by 14.7%. </li>
<li>We expect both its ads and AI cloud revenues to recover with accelerated pace, which could offset the increase of R&amp;D spending in AIGC. </li>
<li>Reiterate BUY rating and slightly raise TP to US$ 178 to reflect the faster recovery. Our TP implies 17.9x PE in 2023.</li>
</ul>


Baidu delivered 1Q23 results with top line beat our estimate by 3.5%, and non-GAAP net income beat our estimate by 14.7%. 
We expect both its ads and AI cloud revenues to recover with accelerated pace, which could offset the increase of R&amp;D spending in AIGC. 
Reiterate BUY rating and slightly raise TP to US$ 178 to reflect the faster recovery. Our TP implies 17.9x PE in 2023.


[Baidu (BIDU US, BUY, TP US$178) Target Price Change]: Maintain BUY for Faster Recovery and AIGC

<ul>
<li>
<a href="https://www.smartkarma.com/entities/beijing-dmall-e-commerce-co-ltd" target="_blank" data-smartkarma-citation="entities:36623:1" rel="noopener">Dmall Inc (1751691D CH)</a> is looking to raise around US$200m in its upcoming Hong Kong IPO.</li>
<li>Dmall provides cloud-based, end-to-end SaaS platform purpose-built for the Chinese retail industry.</li>
<li>In this note, we will talk about the positive aspects of the deal.</li>
</ul>



Dmall Inc (1751691D CH) is looking to raise around US$200m in its upcoming Hong Kong IPO.
Dmall provides cloud-based, end-to-end SaaS platform purpose-built for the Chinese retail industry.
In this note, we will talk about the positive aspects of the deal.


Dmall Pre-IPO - The Positives - Ambitions of Aiding the Retail Digitization Journey for Retailers

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.

<ul><li>Baidu announced (16 May) its 1Q23 results: quarterly revenue was RMB31.1bn, up 9.6% YoY, 5/4% higher than our forecast/Bloomberg consensus estimates.</li><li>Non-GAAP net income was RMB5.3bn, higher than our forecast/Bloomberg consensus estimates at RMB4.2/4.3bn, driven by stronger than expected recovery of ads business, and better than expected margin expansion of cloud business, which achieved profitability on non-GAAP operating profit level.</li><li>The ongoing recovery in offline activities is likely to benefit Baidu more than its peers given its relatively greater exposure in offline ads categories, and Baidu’s strategy to drive for quality growth for cloud business likely aids a continuous margin expansion for cloud business in the medium term.</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>

Baidu announced (16 May) its 1Q23 results: quarterly revenue was RMB31.1bn, up 9.6% YoY, 5/4% higher than our forecast/Bloomberg consensus estimates.Non-GAAP net income was RMB5.3bn, higher than our forecast/Bloomberg consensus estimates at RMB4.2/4.3bn, driven by stronger than expected recovery of ads business, and better than expected margin expansion of cloud business, which achieved profitability on non-GAAP operating profit level.The ongoing recovery in offline activities is likely to benefit Baidu more than its peers given its relatively greater exposure in offline ads categories, and Baidu’s strategy to drive for quality growth for cloud business likely aids a continuous margin expansion for cloud business in the medium term.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.

Baidu (BIDU US) – Cloud business turned profitable

Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

News from Caixin

Cross Asset Strategy

<ul><li>AI /: China’s AI charge part 3: Short on chips and talent</li><li>China-Canada /: Tit-for-Tat: China expels Canadian diplomat after Ottawa’s move declaring a Chinese envoy as persona non grata</li><li>Gold /: China’s gold buying spree stretches into sixth straight month</li></ul>

AI /: China’s AI charge part 3: Short on chips and talentChina-Canada /: Tit-for-Tat: China expels Canadian diplomat after Ottawa’s move declaring a Chinese envoy as persona non grataGold /: China’s gold buying spree stretches into sixth straight month

CX Daily: China’s AI Charge Part 3: Short on Chips and Talent

China

Baidu, Inc. operates an Internet search engine. The Company offers algorithmic search, enterprise search, news, MP3, and image searches, voice assistance, online storage, and navigation services. Baidu serves clients globally.

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Baidu (BIDU US)

[Baidu (BIDU US, BUY, TP US$178) Target Price Change]: Maintain BUY for Faster Recovery and AIGC

We expect both its ads and AI cloud revenues to recover with accelerated pace, which could offset the increase of R&D spending in AIGC.

Blue Lotus Research Institute

Dmall Pre-IPO - The Positives - Ambitions of Aiding the Retail Digitization Journey for Retailers

Dmall Inc (1751691D CH) is looking to raise around US$200m in its upcoming Hong Kong IPO. In this note, we will talk about the positive aspects of...

Clarence Chu

Baidu (BIDU US) – Cloud business turned profitable

Baidu announced (16 May) its 1Q23 results: quarterly revenue was RMB31.1bn, up 9.6% YoY, 5/4% higher than our forecast/Bloomberg consensus estimates.

CMB International

CX Daily: China’s AI Charge Part 3: Short on Chips and Talent

AI /: China’s AI charge part 3: Short on chips and talent China-Canada /: Tit-for-Tat: China expels Canadian diplomat Gold /: China’s gold buying...

Caixin Global

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Dmall Pre-IPO - The Negatives - Path to Profitability Remains Murky and Related Party Sales an Issue

Dmall Inc (1751691D CH) is looking to raise around US$200m in its upcoming Hong Kong IPO. In this note, we will talk about the not so positive...

Clarence Chu

[Baidu (BIDU US, BUY, TP US$178) Target Price Change]: Maintain BUY for Faster Recovery and AIGC

We expect both its ads and AI cloud revenues to recover with accelerated pace, which could offset the increase of R&D spending in AIGC.

Blue Lotus Research Institute

Dmall Pre-IPO - The Positives - Ambitions of Aiding the Retail Digitization Journey for Retailers

Dmall Inc (1751691D CH) is looking to raise around US$200m in its upcoming Hong Kong IPO. In this note, we will talk about the positive aspects of...

Clarence Chu

Baidu (BIDU US) – Cloud business turned profitable

Baidu announced (16 May) its 1Q23 results: quarterly revenue was RMB31.1bn, up 9.6% YoY, 5/4% higher than our forecast/Bloomberg consensus estimates.

CMB International

CX Daily: China’s AI Charge Part 3: Short on Chips and Talent

AI /: China’s AI charge part 3: Short on chips and talent China-Canada /: Tit-for-Tat: China expels Canadian diplomat Gold /: China’s gold buying...

Caixin Global