Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

<ul>
<li>The December rebalance of the HSI, HSCEI and HSTECH indices will use today's closing prices to cap the index constituents at 8%. This will lead to large flows.</li>
<li>The largest passive outflows as a result of capping will be on <a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a> and <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> due to their weight exceeding 8% in all three indices.</li>
<li>There are large funding outflows (in terms of days of ADV to trade) on quite a few Hong Kong property stocks as well as stocks from the financials sector.</li>
</ul>


The December rebalance of the HSI, HSCEI and HSTECH indices will use today's closing prices to cap the index constituents at 8%. This will lead to large flows.
The largest passive outflows as a result of capping will be on Meituan (3690 HK) and Tencent (700 HK) due to their weight exceeding 8% in all three indices.
There are large funding outflows (in terms of days of ADV to trade) on quite a few Hong Kong property stocks as well as stocks from the financials sector.


HSI, HSCEI, HSTECH: December Rebalance Flows Post Capping

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 the weekly Hong Kong Connect flows with our data engine.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight inflows into Kuaishou, Smoore, and outflows from Tencent and Wuxi Biologics.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight inflows into Kuaishou, Smoore, and outflows from Tencent and Wuxi Biologics.


Hong Kong Connect Flows: Kuaishou, Smoore, Tencent, Wuxi Biologics

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/weibo-corp-adr" target="_blank" data-smartkarma-citation="entities:3826:1" rel="noopener">Weibo Corp (WB US)</a> is offering 11 million shares to raise $471 million through an HKEx secondary listing. The primary/secondary spilt is 50:50 (Sina is the secondary seller).  </li>
<li>Weibo is navigating macro and regulatory headwinds by delivering better than expected top-line growth, strong margins and cash generation. </li>
<li>While the near-term visibility remains limited, the valuation at last close is undemanding in comparison to historical P/E and PEG ratios. </li>
</ul>



Weibo Corp (WB US) is offering 11 million shares to raise $471 million through an HKEx secondary listing. The primary/secondary spilt is 50:50 (Sina is the secondary seller).  
Weibo is navigating macro and regulatory headwinds by delivering better than expected top-line growth, strong margins and cash generation. 
While the near-term visibility remains limited, the valuation at last close is undemanding in comparison to historical P/E and PEG ratios. 


Weibo Secondary Listing: Braving Uncertainty

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.

Kuaishou Technology / Equity Capital Markets

<ul>
<li>Kuaishou’s 3Q2021 revenues grew 33.4% YoY to RMB20.5bn (vs consensus RMB20bn) while operating losses for the quarter widened to 36.1% of revenues vs 9.0% in 3Q2020.</li>
<li>Live streaming revenues for the quarter decreased 3.0% YoY to RMB7.7bn, however, it has increased 7.4% sequentially after seeing QoQ declines over the last 6 quarters.</li>
<li>Online marketing services reported another quarter of strong growth with revenues increasing 76.5% YoY to RMB11.0bn. However, we have observed that the growth is decelerating.</li>
</ul>


Kuaishou’s 3Q2021 revenues grew 33.4% YoY to RMB20.5bn (vs consensus RMB20bn) while operating losses for the quarter widened to 36.1% of revenues vs 9.0% in 3Q2020.
Live streaming revenues for the quarter decreased 3.0% YoY to RMB7.7bn, however, it has increased 7.4% sequentially after seeing QoQ declines over the last 6 quarters.
Online marketing services reported another quarter of strong growth with revenues increasing 76.5% YoY to RMB11.0bn. However, we have observed that the growth is decelerating.


Kuaishou 3Q2021: ARPPU and User Growth Point to Recovery in Live Streaming Earnings

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

Equity Bottom-Up

<ul>
<li>We believe Kuaishou (KS)’s loss was acceptable, as the rapid growth of active users are extremely valuable.</li>
<li>Online marketing revenue and e-commerce revenue increased dramatically and the declining rate of live streaming slowed down.</li>
<li>We believe the stock will have an upside of 36% for the end of 2022.</li>
</ul>


We believe Kuaishou (KS)’s loss was acceptable, as the rapid growth of active users are extremely valuable.
Online marketing revenue and e-commerce revenue increased dramatically and the declining rate of live streaming slowed down.
We believe the stock will have an upside of 36% for the end of 2022.


Kuaishou (1024 HK): 3Q21, Growth Rates of Active Users Recovered Strongly

China

Kuaishou Technology operates as a content community and social platform. The Company helps users create, upload and watch short videos on mobile devices. Kuaishou Technology offers services worldwide.

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Kuaishou Technology (1024 HK)

HSI, HSCEI, HSTECH: December Rebalance Flows Post Capping

The Dec rebalance of the HK indices will use today's closing prices to cap the stocks at 8%. Meituan and Tencent will see large outflows due to...

Brian Freitas

Hong Kong Connect Flows: Kuaishou, Smoore, Tencent, Wuxi Biologics

We highlight HK Connect inflows into Kuaishou (1024 HK), Smoore (6969 HK), as well as outflows from Tencent (700 HK), Wuxi Biologics (2269 HK).

Ke Yan, CFA, FRM

Weibo Secondary Listing: Braving Uncertainty

Weibo is offering 11m shares through an HKEx secondary listing. While the near-term visibility remains limited, the valuation at last close is...

Arun George

Kuaishou 3Q2021: ARPPU and User Growth Point to Recovery in Live Streaming Earnings

After seeing continued decline in live streaming revenues, paying users and ARPPU have started recovering in 3Q2021. User acquisition and focus on...

Shifara Samsudeen, FCMA, CGMA

Kuaishou (1024 HK): 3Q21, Growth Rates of Active Users Recovered Strongly

We believe Kuaishou (KS)’s loss was acceptable, as active user bases grew fast. We believe the stock will have an upside of 36% for the end of 2022.

Ming Lu

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