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>Tuniu’s revenue grew by 71% YoY in 1Q24, as the company benefited from the travel industry’s recovery.</li>
<li>Smart Share Global’s revenue plunged by 52% YoY in 1Q24 due to fewer customers in shopping malls.</li>
<li>PDD plans to price products on behalf of retailers, which reflects the severe competition in e-commerce.</li>
</ul>


Tuniu’s revenue grew by 71% YoY in 1Q24, as the company benefited from the travel industry’s recovery.
Smart Share Global’s revenue plunged by 52% YoY in 1Q24 due to fewer customers in shopping malls.
PDD plans to price products on behalf of retailers, which reflects the severe competition in e-commerce.


China Consumption Weekly (10 Jun 2024): Tencent, PDD, Meituan, NIO, Tuniu, Smart Share

Greater China Equity Long/Short Analyst

Eric Chen

<ul>
<li>A stabilizing property market matters more than other factors such as industry rivalry and shareholder return policies for the performance of leading China e-commerce players in our view.</li>
<li>China's worst property market downturn is probably behind us. This will gradually help restore consumer confidence and lift consumer propensity to spend, improving growth outlook for China e-commerce sector.</li>
<li>We believe China e-commerce players will in general benefit from a stabilizing housing market. Alibaba remains the most attractive play in the space. </li>
</ul>


A stabilizing property market matters more than other factors such as industry rivalry and shareholder return policies for the performance of leading China e-commerce players in our view.
China's worst property market downturn is probably behind us. This will gradually help restore consumer confidence and lift consumer propensity to spend, improving growth outlook for China e-commerce sector.
We believe China e-commerce players will in general benefit from a stabilizing housing market. Alibaba remains the most attractive play in the space. 


China E-Commerce: Stabilizing Property Market Matters a Lot

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Event-Driven

Sumitomo Mitsui Financial Group / Event-Driven

<ul>
<li>Following up on our earlier cross-shareholding notes, in this note we look at <a href="https://www.smartkarma.com/entities/sumitomo-mitsui-financial-group-inc" target="_blank" data-smartkarma-citation="entities:217:1" rel="noopener">Sumitomo Mitsui Financial Group (8316 JP)</a> cross-shareholding.</li>
<li>SMFG had a stake over US$100m in at least 47 listed Japanese stocks, amounting to a total of around US$17bn.</li>
<li>In this note, we take a look at its stakes in various companies to see which ones could possibly be candidates for further selldowns.</li>
</ul>


Following up on our earlier cross-shareholding notes, in this note we look at Sumitomo Mitsui Financial Group (8316 JP) cross-shareholding.
SMFG had a stake over US$100m in at least 47 listed Japanese stocks, amounting to a total of around US$17bn.
In this note, we take a look at its stakes in various companies to see which ones could possibly be candidates for further selldowns.


SMFG Cross-Shareholding - At Least US$17bn of Cross-Shareholding to Sell, Planning to Speed It Up

Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet research

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

Thematic (Sector/Industry)

<ul>
<li>PDD/SHEIN/AMZN: U.S. CBP suspends customs brokers handling cross-border parcels for Temu and SHEIN (-/-/+)</li>
<li>BABA US/JD US/PDD US/3690 HK:The upcoming regulatory policies on internet platform fees should not be overly negatively interpreted(///////)</li>
<li>BABA US/JD US/3690 HK/1810 HK:Beijing Follows up with Subsidies for Replacing Old Appliances with New Ones, but National Subsidies Are Still Lacking(+/+/+/+)</li>
</ul>


PDD/SHEIN/AMZN: U.S. CBP suspends customs brokers handling cross-border parcels for Temu and SHEIN (-/-/+)
BABA US/JD US/PDD US/3690 HK:The upcoming regulatory policies on internet platform fees should not be overly negatively interpreted(///////)
BABA US/JD US/3690 HK/1810 HK:Beijing Follows up with Subsidies for Replacing Old Appliances with New Ones, but National Subsidies Are Still Lacking(+/+/+/+)


[Blue Lotus Daily - TMT Update]:PDD/SHEIN/AMZN/BABA US/JD US/3690 HK/1810 HK/700 HK/MNSO US

Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Tracking Traffic

Focusing on Asian logistics, transportation, and travel companies

Equity Capital Markets

<ul>
<li>CaiNiao and JD Logistics have grown far faster than their parents' platforms in recent years, and also far faster than "plain vanilla" Chinese express companies</li>
<li>CaiNiao, JD Logistics, and SF Holding enjoy more avenues to growth than just the continued gradual expansion of China's domestic e-commerce activity</li>
<li>In the medium-term, we believe shares of market leader SF Holding can outperform a basket of shares from SF's "plain vanilla" peers in express</li>
</ul>


CaiNiao and JD Logistics have grown far faster than their parents' platforms in recent years, and also far faster than "plain vanilla" Chinese express companies
CaiNiao, JD Logistics, and SF Holding enjoy more avenues to growth than just the continued gradual expansion of China's domestic e-commerce activity
In the medium-term, we believe shares of market leader SF Holding can outperform a basket of shares from SF's "plain vanilla" peers in express


CaiNiao & SF Holding Enjoy More Avenues to Growth Than "Plain Vanilla" Express Companies

China

PDD Holdings Inc. is a multinational commerce group that owns and operates a portfolio of businesses. The Company focuses on digital economy so that local communities and small businesses can benefit from the increased productivity and new opportunities. PDD Holdings has built a network of sourcing, logistics, and fulfillment capabilities for its underlying businesses.

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PDD Holdings (PDD US)

China E-Commerce: Stabilizing Property Market Matters a Lot

The worst slump of China property market is probably behind us, which should slowly remove the key drag on China e-commerce sector. Alibaba is best...

Eric Chen

SMFG Cross-Shareholding - At Least US$17bn of Cross-Shareholding to Sell, Planning to Speed It Up

Following up on our earlier cross-shareholding notes, in this note we look at Sumitomo Mitsui Financial Group (8316 JP) cross-shareholding. SMFG...

Sumeet Singh

[Blue Lotus Daily - TMT Update]:PDD/SHEIN/AMZN/BABA US/JD US/3690 HK/1810 HK/700 HK/MNSO US

US CBP suspends customs brokers for Temu and SHEIN; upcoming regulatory policies on internet platform fees should not be overly negative; Beijing...

Blue Lotus Research Institute

CaiNiao & SF Holding Enjoy More Avenues to Growth Than "Plain Vanilla" Express Companies

On Sunday June 2, SF Holding announced via a notice at the Shenzhen Stock Exchange that it plans to sell up to 625 mn new shares in a secondary...

Tracking Traffic

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

China Consumption Weekly (10 Jun 2024): Tencent, PDD, Meituan, NIO, Tuniu, Smart Share

Tuniu’s revenue grew by 71% YoY in 1Q24. Smart Share Global’s revenue plunge by 52% YoY in 1Q24. PDD plans to price products on behalf of retailers.

Ming Lu

China E-Commerce: Stabilizing Property Market Matters a Lot

The worst slump of China property market is probably behind us, which should slowly remove the key drag on China e-commerce sector. Alibaba is best...

Eric Chen

SMFG Cross-Shareholding - At Least US$17bn of Cross-Shareholding to Sell, Planning to Speed It Up

Following up on our earlier cross-shareholding notes, in this note we look at Sumitomo Mitsui Financial Group (8316 JP) cross-shareholding. SMFG...

Sumeet Singh

[Blue Lotus Daily - TMT Update]:PDD/SHEIN/AMZN/BABA US/JD US/3690 HK/1810 HK/700 HK/MNSO US

​US CBP suspends customs brokers for Temu and SHEIN; upcoming regulatory policies on internet platform fees should not be overly negative; Beijing...

Blue Lotus Research Institute

CaiNiao & SF Holding Enjoy More Avenues to Growth Than "Plain Vanilla" Express Companies

On Sunday June 2, SF Holding announced via a notice at the Shenzhen Stock Exchange that it plans to sell up to 625 mn new shares in a secondary...

Tracking Traffic

US CBP suspends customs brokers for Temu and SHEIN; upcoming regulatory policies on internet platform fees should not be overly negative; Beijing...