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.

Thematic (Sector/Industry)

<div><ul><li>Competition on user time spend intensified in 3Q22. Per MoonFox data, in 3Q22, average number of apps installed per capita was 74 in 3Q22, up from 71 in 2Q22 and 66 in 3Q21, while average user time spend per capita per day on apps was 5.4 hours, flat QoQ and declined 0.1 hour YoY, indicating an intensifying competition on user time spend.</li><li>Leading internet giants are enlarging their shares in user time spend: combined user time spend on apps related to Tencent, ByteDance, Alibaba and Baidu accounted for 69.3% of total user time spend in Sep 2022 (Sep 2021: 68.5%; Jun 2022: 68.4%).</li><li>Tencent related apps grew its share in user time spend to 28.3% in Sep 2022 (Sep 2021: 26.7%; June 2022: 27.5%), which in our view could be attributed to the robust ramp-up of Video Accounts, indicating additional monetization opportunities ahead.</li></ul></div><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>

Competition on user time spend intensified in 3Q22. Per MoonFox data, in 3Q22, average number of apps installed per capita was 74 in 3Q22, up from 71 in 2Q22 and 66 in 3Q21, while average user time spend per capita per day on apps was 5.4 hours, flat QoQ and declined 0.1 hour YoY, indicating an intensifying competition on user time spend.Leading internet giants are enlarging their shares in user time spend: combined user time spend on apps related to Tencent, ByteDance, Alibaba and Baidu accounted for 69.3% of total user time spend in Sep 2022 (Sep 2021: 68.5%; Jun 2022: 68.4%).Tencent related apps grew its share in user time spend to 28.3% in Sep 2022 (Sep 2021: 26.7%; June 2022: 27.5%), which in our view could be attributed to the robust ramp-up of Video Accounts, indicating additional monetization opportunities ahead.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.

China Internet Sector – 3Q22 industry data trend recap

Equity Bottom-Up

<div><div><div><div><ul><li>Baidu saw sequential recovery on core search and feed ads demand in July- August compared to June as pandemic impact gradually waned.</li><li>Although ads demand recovery is likely to be rocky given uncertain COVID resurgence conditions, we expect limited room for incremental negative impacts rolling into 2023.</li><li>Cash flows generated from ads business provide solid support for investing into new initiatives.</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></div></div></div></div>

Baidu saw sequential recovery on core search and feed ads demand in July- August compared to June as pandemic impact gradually waned.Although ads demand recovery is likely to be rocky given uncertain COVID resurgence conditions, we expect limited room for incremental negative impacts rolling into 2023.Cash flows generated from ads business provide solid support for investing into new initiatives.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) – Eyes on New Technologies Development

<div><ul><li>Factoring in 2Q22E ads headwinds. We expect 2Q22 rev -7% YoY, 1% below consensus.</li><li><p>Auto on good progress, while ads recovery needs more time.</p></li><li><p><span style="font-size: var(--content-font-size);">Maintain BUY. We trimmed earnings by 3-6% in FY22-24E, with SOTP-based TP at US$203 (24x FY23E P/E). Multiple downside risk is limited, and suggest to look into 2H22E ads recovery and LT AI cloud contribution.</span></p></li></ul></div><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>

Factoring in 2Q22E ads headwinds. We expect 2Q22 rev -7% YoY, 1% below consensus.Auto on good progress, while ads recovery needs more time.Maintain BUY. We trimmed earnings by 3-6% in FY22-24E, with SOTP-based TP at US$203 (24x FY23E P/E). Multiple downside risk is limited, and suggest to look into 2H22E ads recovery and LT AI cloud contribution.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) – Auto on progress, despite slower ads recovery

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><p>In Depth: Why relocating mainlanders see Singapore as a safe haven for their businesses and property</p></li><li><p>Caixin Explains: Who controls China’s health code app</p></li><li><p>Developers face mounting debt payments in coming months</p></li></ul>

In Depth: Why relocating mainlanders see Singapore as a safe haven for their businesses and propertyCaixin Explains: Who controls China’s health code appDevelopers face mounting debt payments in coming months

CX Daily: Why Relocating Mainlanders See Singapore as a Safe Haven for Their Businesses and Property

Actionable Insights, Assured Alpha, ANTYA Investments

ANTYA Investments

Actionable Insights, Assured Alpha

Investing That Empowers You

ANTYA Investments Inc., regulated by the Ontario Securities Commission, is registered to provide wealth management services in Canada. ANTYA manages institutional, and high net-worth client portfolios on a discretionary basis. Our investment philosophy embraces a Core-Satellite approach.  The core of the portfolio is chosen from a group of fifteen asset classes. A few stock specific asymmetrical investment opportunities comprise the satellite segment. ANTYA invests only in global, large capitalization, and investment grade companies.  

Equity Capital Markets

<p>The proposed IPO of  <a href="https://www.smartkarma.com/entities/27255" target="_blank" data-smartkarma-citation="entities:27255:1">Tencent Music Entertainment (TME US)</a> although highly anticipated is no slam dunk for investors. China's online social entertainment  market is hyper -competitive with multiple players vying for attention. Online music streaming is no less competitive with <a href="https://www.smartkarma.com/entities/179" target="_blank" data-smartkarma-citation="entities:179:1">Baidu Inc (ADR) (BIDU US)</a> and <a href="https://www.smartkarma.com/entities/17203" target="_blank" data-smartkarma-citation="entities:17203:1">Netease Inc (Adr) (NTES US)</a> joining forces to compete head-on with TME. We remain on the sidelines and suspect that a better entry point will present itself. </p>

The proposed IPO of  Tencent Music Entertainment (TME US) although highly anticipated is no slam dunk for investors. China's online social entertainment  market is hyper -competitive with multiple players vying for attention. Online music streaming is no less competitive with Baidu Inc (ADR) (BIDU US) and Netease Inc (Adr) (NTES US) joining forces to compete head-on with TME. We remain on the sidelines and suspect that a better entry point will present itself. 

Tencent Music Entertainment Group – Back in the Groove with an Unjustified Valuation Multiple

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)

China Internet Sector – 3Q22 industry data trend recap

Combined user time spend on apps related to Tencent, ByteDance, Alibaba and Baidu accounted for 69.3% of total user time spend in Sep 2022 (Sep...

CMB International

Baidu (BIDU US) – Eyes on New Technologies Development

Baidu saw sequential recovery on core search and feed ads demand in July- August compared to June as pandemic impact gradually waned.

CMB International

Baidu (BIDU US) – Auto on progress, despite slower ads recovery

We expect 2Q22E topline/bottom line -7% YoY/-38% YoY, 1%/3% below consensus. 2Q22E would be the trough of ads (forecasting core ads -14% YoY, vs....

CMB International

CX Daily: Why Relocating Mainlanders See Singapore as a Safe Haven for Their Businesses and Property

In Depth: Why relocating mainlanders see Singapore as a safe haven for their businesses and property. Caixin Explains: Who controls China’s health...

Caixin Global

Tencent Music Entertainment Group – Back in the Groove with an Unjustified Valuation Multiple

The proposed IPO of Tencent Music Entertainment (TME US) although highly anticipated is no slam dunk for investors. China's online social...

ANTYA Investments

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