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.

Equity Bottom-Up

Poly Property Services   / Equity Bottom-Up

<ul><li>Poly Services recorded 22% YoY increase in net profit in 1H23, in line with its full-year target.</li><li>NP growth was largely higher than that of revenue (+11% YoY) reflecting margin improvement backed by higher business concentration and optimized VAS business structure.</li><li>Accounts receivable remains a concern as public service (with longer cash collection period) is contributing more in revenue, while that will be an industry puzzle as the business is one the GFA growth points for the sector. </li></ul>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.

Poly Services recorded 22% YoY increase in net profit in 1H23, in line with its full-year target.NP growth was largely higher than that of revenue (+11% YoY) reflecting margin improvement backed by higher business concentration and optimized VAS business structure.Accounts receivable remains a concern as public service (with longer cash collection period) is contributing more in revenue, while that will be an industry puzzle as the business is one the GFA growth points for the sector. 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.

Poly Services (6049 HK) – 1H23 Results in Line but AR Remains a Concern

HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>Although 5% GDP growth target for 2023 is at the low end of market speculation of 5.5-6%, we think this reflects the government's conservative stance amid post-COVID recovery. </li>
<li>A 0.2pp higher budget deficit and a special purpose bond quota of Rmb3.8trn suggested that government spending will stay as important economic driver.</li>
<li>Consumption is another major stimulus for economic growth, and more supportive measures will be rolled out - we have seen many cities planning to hand out consumption vouchers.</li>
</ul>


Although 5% GDP growth target for 2023 is at the low end of market speculation of 5.5-6%, we think this reflects the government's conservative stance amid post-COVID recovery. 
A 0.2pp higher budget deficit and a special purpose bond quota of Rmb3.8trn suggested that government spending will stay as important economic driver.
Consumption is another major stimulus for economic growth, and more supportive measures will be rolled out - we have seen many cities planning to hand out consumption vouchers.


China NPC: Implications of Government Working Report 2023

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.

China property management companies (PMCs) have had a dramatic pull back despite asset-light models and strong earnings visibility. We think it gives investors a chance to accumulate positions in the leaders of the industry.In this note, we take a brief look at the industry, how the PMCs have traded, and share some thoughts on which names that could continue to do well in the industry.

China property management companies (PMCs) have had a dramatic pull back despite asset-light models and strong earnings visibility. We think it gives investors a chance to accumulate positions in the leaders of the industry.In this note, we take a brief look at the industry, how the PMCs have traded, and share some thoughts on which names that could continue to do well in the industry.

China Property Management Services - Pullback Is a Chance to Accumulate the Leaders

<ul><li>Relaxation of demand-related policies continued with Beijing further optimizing mortgage loan requirement for divorced people and multiple cities removing the lower limit on mortgage rate for first-home buyers.</li><li>Around 35 cities joined the group of adopting “trade in old house for new” policies through 3 approaches (Figure 1).</li><li>These moves may not bring a surge in property sales but could prevent a sharp decline by marginally boosting demand in our view. </li></ul>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.

Relaxation of demand-related policies continued with Beijing further optimizing mortgage loan requirement for divorced people and multiple cities removing the lower limit on mortgage rate for first-home buyers.Around 35 cities joined the group of adopting “trade in old house for new” policies through 3 approaches (Figure 1).These moves may not bring a surge in property sales but could prevent a sharp decline by marginally boosting demand in our view. 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.

Property - Weekly highlight: +ve progress on policy implementation, no remarkable recovery on sales

<ul><li>NBS property data in 1Q24 remained sluggish but was well expected by the market.</li><li>REI decline widened to 9.5% from -9.0% in 2M24 even though continued base adjustment lowered the number in 1Q23 by 6%. REI was at - 15% if excluding this impact.</li><li>The decline of property sales value narrowed a bit more than decline in sales volume, reflecting a 1.4% hike in ASP as more supply was from higher tier cities with higher ASP in Mar. </li></ul>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.

NBS property data in 1Q24 remained sluggish but was well expected by the market.REI decline widened to 9.5% from -9.0% in 2M24 even though continued base adjustment lowered the number in 1Q23 by 6%. REI was at - 15% if excluding this impact.The decline of property sales value narrowed a bit more than decline in sales volume, reflecting a 1.4% hike in ASP as more supply was from higher tier cities with higher ASP in Mar. 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.

Property - NBS 1Q24: Weakness Was Well Expected, Expecting More Financing-Side Policies

China

Poly Property Services Co., Ltd. provides property services. The Company offers property management, property projects pre-consultation, post-delivery evaluation and analysis, professional equipment and facilities maintenance, housekeeping, and other services. Poly Property Services provides services in China.

Poly Property Services (6049 HK)

Poly Services (6049 HK) – 1H23 Results in Line but AR Remains a Concern

NP growth was largely higher than that of revenue (+11% YoY) reflecting margin improvement backed by higher business concentration and optimized...

CMB International

China NPC: Implications of Government Working Report 2023

A 0.2pp higher budget deficit and a Rmb3.8trn special purpose bond quota suggested government spending will remain important economic driver. More...

Osbert Tang, CFA

China Property Management Services - Pullback Is a Chance to Accumulate the Leaders

China property management companies (PMCs) have had a dramatic pull back despite asset-light models and strong earnings visibility. We think this...

Sumeet Singh

Property - Weekly highlight: +ve progress on policy implementation, no remarkable recovery on sales

These moves may not bring a surge in property sales but could prevent a sharp decline by marginally boosting demand in our view.

CMB International

Property - NBS 1Q24: Weakness Was Well Expected, Expecting More Financing-Side Policies

REI decline widened to 9.5% from -9.0% in 2M24 even though continued base adjustment lowered the number in 1Q23 by 6%. REI was at - 15% if...

CMB International