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 class="">
<li>Xiaomi plans to produce electric vehicle.</li>
<li>The court forces Douyu to compensate Huya for broadcaster poaching.</li>
<li>Tencent Music and Vipshop launch share repurchase programs.</li>
</ul>
<p><strong>Our coverage on Chinese equities:</strong></p>
<p>E-commerce: Alibaba (9988 HK, BABA US), Meituan (3690 HK), JD.com (9618 HK, JD US), JD Health (6618 HK), KE (BEKE US).</p>
<p>Online Entertainment: Tencent (700 HK), Kuaishou (1024 HK), NetEase (9999 HK, NTES US), Bilibili (BILI US), Tencent Music (TME).</p>
<p>Others: Xiaomi (1810 HK).</p>


Xiaomi plans to produce electric vehicle.
The court forces Douyu to compensate Huya for broadcaster poaching.
Tencent Music and Vipshop launch share repurchase programs.

Our coverage on Chinese equities:
E-commerce: Alibaba (9988 HK, BABA US), Meituan (3690 HK), JD.com (9618 HK, JD US), JD Health (6618 HK), KE (BEKE US).
Online Entertainment: Tencent (700 HK), Kuaishou (1024 HK), NetEase (9999 HK, NTES US), Bilibili (BILI US), Tencent Music (TME).
Others: Xiaomi (1810 HK).

China Internet Weekly (Apr 5): Xiaomi Plans Electric Vehicle, Huya Gets Compensation from Douyu

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

WM Tech Corporation / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/wm-tech-corporation" target="_blank" data-smartkarma-citation="entities:32976:1" rel="noopener">WM Tech Corporation (WMT HK)</a> is a leading fresh food and FMCG (fast-moving consumer goods) retailer in China through the Wumart and Metro China brands. It is the largest premium store-based fresh food and FMCG retailer in China with a 19.5% market share as measured by sales in 2020, according to Frost &amp; Sullivan. WM Tech counts <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a> and <a href="https://www.smartkarma.com/entities/lenovo-group-ltd" target="_blank" data-smartkarma-citation="entities:13359:1" rel="noopener">Lenovo (992 HK)</a> as shareholders. WM Tech has filed for an HKEx IPO to raise potentially $1 billion, according to press reports.  </p><p>The confusing “WM Tech” holdco name is to emphasise that the proprietary technology platform (WDOS) is a key differentiation from other players in an increasingly competitive market. The technology platform is claimed to provide a unified data loop between the online and offline channels to maximize operational efficiency and greatly improve the shopping experience. </p><div class="content-highlight"><p>The full adoption of this technology platform is viewed as the key to delivering synergies from the April 2020 acquisition of Metro China from <a href="https://www.smartkarma.com/entities/metro-ag" target="_blank" data-smartkarma-citation="entities:21673:1" rel="noopener">METRO AG (MEO GR)</a>. While WM Tech is not the only store-based retailer with a complete technology platform, Wumart’s performance suggests that there is some merit in the claim of technology differentiation. Overall, we believe that WM Tech’s fundamentals offer more positives than negatives.</p></div>

WM Tech Corporation (WMT HK) is a leading fresh food and FMCG (fast-moving consumer goods) retailer in China through the Wumart and Metro China brands. It is the largest premium store-based fresh food and FMCG retailer in China with a 19.5% market share as measured by sales in 2020, according to Frost &amp; Sullivan. WM Tech counts Tencent Holdings (700 HK) and Lenovo (992 HK) as shareholders. WM Tech has filed for an HKEx IPO to raise potentially $1 billion, according to press reports.  The confusing “WM Tech” holdco name is to emphasise that the proprietary technology platform (WDOS) is a key differentiation from other players in an increasingly competitive market. The technology platform is claimed to provide a unified data loop between the online and offline channels to maximize operational efficiency and greatly improve the shopping experience. The full adoption of this technology platform is viewed as the key to delivering synergies from the April 2020 acquisition of Metro China from METRO AG (MEO GR). While WM Tech is not the only store-based retailer with a complete technology platform, Wumart’s performance suggests that there is some merit in the claim of technology differentiation. Overall, we believe that WM Tech’s fundamentals offer more positives than negatives.

Smartkarma Research Team, Smartkarma

Smartkarma Research

Smartkarma Research Team

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

<p>For our next Webinar, we welcome Insight Provider <a href="https://www.smartkarma.com/profiles/mitchell-kim" target="_blank" data-smartkarma-citation="accounts:5259" rel="noopener">Mitchell Kim</a> to go over his view on <a href="https://www.smartkarma.com/entities/pinduoduo-inc" target="_blank" data-smartkarma-citation="entities:27250:1" rel="noopener">Pinduoduo (PDD US)</a>. The share price dropped 18% in March and Mitchell has flagged that, despite the appeal of ultra-growth, the risk-return favours the downside on both operating momentum and valuations. Join us to hear more.</p>
<div>
<h3>The webinar was hosted on Wednesday, 7 April 2021, 11:00 SGT/HKT.</h3>
</div>
<p><span>Subscribe and listen on the go:</span></p>
<p><span><iframe src="https://open.spotify.com/embed/episode/5oaavG3BGK4ViHlvuC25bP" width="100%" height="232" frameborder="0" allowtransparency="true" allow="encrypted-media"></iframe></span></p>
<div>
<p></p>
<p><span>Mitchell Kim is a fundamental equity research analyst with 20+ years of both hedge fund and a bulge bracket sell-side experience. He has a reputation for rigorous analysis, focusing on stock price drivers and providing differentiated or contrarian ideas.</span></p>
</div>

For our next Webinar, we welcome Insight Provider Mitchell Kim to go over his view on Pinduoduo (PDD US). The share price dropped 18% in March and Mitchell has flagged that, despite the appeal of ultra-growth, the risk-return favours the downside on both operating momentum and valuations. Join us to hear more.

The webinar was hosted on Wednesday, 7 April 2021, 11:00 SGT/HKT.

Subscribe and listen on the go:



Mitchell Kim is a fundamental equity research analyst with 20+ years of both hedge fund and a bulge bracket sell-side experience. He has a reputation for rigorous analysis, focusing on stock price drivers and providing differentiated or contrarian ideas.


Smartkarma Webinar | Pinduoduo (PDD US): Know When to Fold

<ul class="">
<li>Chinese equities plunged, because a Chinese equity holder had to meet a margin call.</li>
<li>Alibaba's Taobao Deals is planning a store on Tencent's WeChat.</li>
<li>Xiaomi's Internet of Things is facing an industry stagnance.</li>
<li>Huay improved both growth and margin, but still cannot acquire Douyu.</li>
</ul>
<p>Our main coverage on overseas listed Chinese equities: Alibaba (9988 HK), Bilibili (BILI US), JD.com (9618 HK), KE (BEKE US), Kuaishou (1024), Meituan (3690 HK), NetEase (9999 HK), Tencent (700 HK), Xiaomi (1810 HK).</p>


Chinese equities plunged, because a Chinese equity holder had to meet a margin call.
Alibaba's Taobao Deals is planning a store on Tencent's WeChat.
Xiaomi's Internet of Things is facing an industry stagnance.
Huay improved both growth and margin, but still cannot acquire Douyu.

Our main coverage on overseas listed Chinese equities: Alibaba (9988 HK), Bilibili (BILI US), JD.com (9618 HK), KE (BEKE US), Kuaishou (1024), Meituan (3690 HK), NetEase (9999 HK), Tencent (700 HK), Xiaomi (1810 HK).

China Internet Weekly (Mar 29): Margin Call Punched Chinese Equities, Alibaba Plans Store on Tencent

Silver Point

Thomas J. Monaco

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

<p><em><strong>*4Q20 Results In Line:</strong></em>Tencent Holdings’ (700.HK) [Tencent] 4Q20 results were basically in line with consensus, with total revenues coming in at CNY 133.7 bn, increasing 7% linked quarter.  Non-GAAP operating profit amounted to CNY 38.1bn, flattish on a linked quarter basis; and </p><p><em><strong>*Elephant In The Room: </strong></em>According to Bloomberg, Tencent likely will be required to create a financial holding company for all of its banking, insurance, and payment services businesses – and be regulated along the lines of the banking sector. For Tencent, WeChat Pay and the broader lending/deposit taking business are likely to be reined-in. </p>

*4Q20 Results In Line:Tencent Holdings’ (700.HK) [Tencent] 4Q20 results were basically in line with consensus, with total revenues coming in at CNY 133.7 bn, increasing 7% linked quarter.  Non-GAAP operating profit amounted to CNY 38.1bn, flattish on a linked quarter basis; and *Elephant In The Room: According to Bloomberg, Tencent likely will be required to create a financial holding company for all of its banking, insurance, and payment services businesses – and be regulated along the lines of the banking sector. For Tencent, WeChat Pay and the broader lending/deposit taking business are likely to be reined-in. 

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 Internet Weekly (Apr 5): Xiaomi Plans Electric Vehicle, Huya Gets Compensation from Douyu

Xiaomi plans to produce electric vehicle.The court forces Douyu to compensate Huya for broadcaster poaching.Tencent Music and Vipshop launches...

Ming Lu

WM Tech IPO Initiation: Food for Thought

WM Tech has filed for an HKEx IPO to raise potentially $1 billion, according to press reports. Overall, we believe that WM Tech’s fundamentals...

Arun George

Smartkarma Webinar | Pinduoduo (PDD US): Know When to Fold

Join us on 7 April, 11am SGT, as we welcome Insight Provider Mitchell Kim to go over his view on Pinduoduo (PDD US), whose share price dropped 18%...

Smartkarma Research

China Internet Weekly (Mar 29): Margin Call Punched Chinese Equities, Alibaba Plans Store on Tencent

Chinese equities plunged, because a Chinese equity holder had to meet a margin call.Alibaba's Taotao Deals is planning a store on Tencent's WeChat.

Ming Lu

Tencent Holdings – Living By The Sword

TENCENT HOLDINGS: Tencent 4Q20 results were basically in line with consensus, increasing 7% linked quarter. Tencent will be required to create a...

Thomas J. Monaco

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