Equity Analyst, LightStream Research

Oshadhi Kumarasiri

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 Bottom-Up

<ul>
<li>After hitting the bottom during the COVID crisis, the only direction left for <a href="https://www.smartkarma.com/entities/miniso-group-holdings" target="_blank" data-smartkarma-citation="entities:29673:1" rel="noopener">MINISO Group Holdings (MNSO US)</a> to move is up.</li>
<li>Given the current valuations, Miniso could generate multi-bagger returns during favourable market conditions.</li>
<li>In addition, Miniso could help investors generate sizable returns in the short-term on the short side with increased short exposure to Chinese E-commerce.</li>
</ul>


After hitting the bottom during the COVID crisis, the only direction left for MINISO Group Holdings (MNSO US) to move is up.
Given the current valuations, Miniso could generate multi-bagger returns during favourable market conditions.
In addition, Miniso could help investors generate sizable returns in the short-term on the short side with increased short exposure to Chinese E-commerce.


Miniso: Genuinely Undervalued & A Decent Long Hedge to Increase Short Exposure to Chinese E-Commerce

<ul>
<li>Last week, <a href="https://www.smartkarma.com/entities/miniso-group-holdings" target="_blank" data-smartkarma-citation="entities:29673:1" rel="noopener">MINISO Group Holdings (MNSO US)</a> filed an application to conduct a follow-on public offering of ordinary shares on the main board of the Hong Kong Stock Exchange.</li>
<li>The Hong Kong listing will be treated as a second primary listing, resulting in a substantial improvement in the stock’s liquidity.</li>
<li>With the improvement in liquidity following the Hong Kong offer, there could be a significant upside to Miniso shares in the short term.</li>
</ul>


Last week, MINISO Group Holdings (MNSO US) filed an application to conduct a follow-on public offering of ordinary shares on the main board of the Hong Kong Stock Exchange.
The Hong Kong listing will be treated as a second primary listing, resulting in a substantial improvement in the stock’s liquidity.
With the improvement in liquidity following the Hong Kong offer, there could be a significant upside to Miniso shares in the short term.


Miniso to Increase Liquidity Via a Dual Primary Listing on HKEX

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, 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>On 2nd Apr 2022, CSRC put out a draft for public comments on the revision of certain provisions which would allow easier access by overseas regulators to China ADRs audits.</li>
<li>On 8th Mar 2022, Securities Exchange Commission (SEC) had added five China ADR names to its provisional list of issuers under HFCAA, which set the clock ticking for their delisting.</li>
<li>In this note, we'll talk about the latest developments and its implications.</li>
</ul>


On 2nd Apr 2022, CSRC put out a draft for public comments on the revision of certain provisions which would allow easier access by overseas regulators to China ADRs audits.
On 8th Mar 2022, Securities Exchange Commission (SEC) had added five China ADR names to its provisional list of issuers under HFCAA, which set the clock ticking for their delisting.
In this note, we'll talk about the latest developments and its implications.


China ADRs Delisting - Tide Is Turning with CSRC Showing Signs of a Compromise

After rallying 76% from the IPO price to US$ 35.21 per ADS during the first four months, <a href="https://www.smartkarma.com/entities/miniso-group-holdings" target="_blank" data-smartkarma-citation="entities:29673:1" rel="noopener">MINISO Group Holdings (MNSO US)</a> is currently trading 7.5% below the IPO price, primarily due to the negativity created by Beijing’s anti-monopoly and data security probes and efforts to clampdown domestic companies from listing their shares in overseas markets.
Considering the nature of Miniso’s business operations, we think it is unlikely that Miniso will face targeted regulatory action from the Chinese government, and therefore, we think the current dip in the share price presents an opportunity to own a high-quality company with long- term earnings growth potential.

After rallying 76% from the IPO price to US$ 35.21 per ADS during the first four months, MINISO Group Holdings (MNSO US) is currently trading 7.5% below the IPO price, primarily due to the negativity created by Beijing’s anti-monopoly and data security probes and efforts to clampdown domestic companies from listing their shares in overseas markets.
Considering the nature of Miniso’s business operations, we think it is unlikely that Miniso will face targeted regulatory action from the Chinese government, and therefore, we think the current dip in the share price presents an opportunity to own a high-quality company with long- term earnings growth potential.

Miniso Slides 47% Amidst Beijing’s Clampdown on ADRs: Large Upside Possible Once the Dust Settles

<a href="https://www.smartkarma.com/entities/miniso-group-holdings" target="_blank" data-smartkarma-citation="entities:29673:1" rel="noopener">MINISO Group Holdings (MNSO US)</a>’s share price has been under pressure over the last two months with the lock-up period for the shares held by directors, executive officers and the pre-IPO investors scheduled to end on 13th April 2021. The dip in share price, leading up to the lock-up expiry has us quite interested on the long side and we would consider accumulating more shares at the current price levels.

MINISO Group Holdings (MNSO US)’s share price has been under pressure over the last two months with the lock-up period for the shares held by directors, executive officers and the pre-IPO investors scheduled to end on 13th April 2021. The dip in share price, leading up to the lock-up expiry has us quite interested on the long side and we would consider accumulating more shares at the current price levels.

MINISO’s Impending Lock-Up Expiry: A Chance to Accumulate More Shares

China

MINISO Group Holding is a value retailer with a focus on offering products that are aesthetically pleasing, good-quality, and affordable.

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Miniso (MNSO US)

Miniso: Genuinely Undervalued & A Decent Long Hedge to Increase Short Exposure to Chinese E-Commerce

It might take some time for Miniso to generate multi-bagger returns on a stand-alone basis, but it could still help investors generate sizable...

Oshadhi Kumarasiri

Miniso to Increase Liquidity Via a Dual Primary Listing on HKEX

Miniso filed an application to conduct a follow-on public offering of ordinary shares on the main board of the Hong Kong Stock Exchange. The HK...

Oshadhi Kumarasiri

China ADRs Delisting - Tide Is Turning with CSRC Showing Signs of a Compromise

On 2nd Apr 2022, CSRC put out a draft for public comments on the revision of certain provisions which would allow easier access by overseas...

Sumeet Singh

Miniso Slides 47% Amidst Beijing’s Clampdown on ADRs: Large Upside Possible Once the Dust Settles

It seems like Miniso is collateral damage in China’s crackdown on big tech companies, as the retailer poses no serious threat to the Chinese...

Oshadhi Kumarasiri

MINISO’s Impending Lock-Up Expiry: A Chance to Accumulate More Shares

We believe the pressure on share price immediately before the lock-up expiry is somewhat unwarranted and presents a good entry point to MINISO.

Oshadhi Kumarasiri

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