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

<ul><li>Net profit of RMB717mn came in at the low end of the pre-announcement, when revenue reportedly stood at a 9.4% YoY decline to RMB5.1bn.</li><li>A large part of the decline was explained by an 81.5% YoY tumble in China revenue to RMB393mn (or 96.3% YoY to RMB62mn should we excluding re-exporters), as a result of the enactment of the new national standard governing e-vapor, together with other market malignant practices.</li><li>From here, China revenue only represents only 1.2% to the total, and will no longer move the needle. </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.

Net profit of RMB717mn came in at the low end of the pre-announcement, when revenue reportedly stood at a 9.4% YoY decline to RMB5.1bn.A large part of the decline was explained by an 81.5% YoY tumble in China revenue to RMB393mn (or 96.3% YoY to RMB62mn should we excluding re-exporters), as a result of the enactment of the new national standard governing e-vapor, together with other market malignant practices.From here, China revenue only represents only 1.2% to the total, and will no longer move the needle. 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.

Smoore Int’l (6969 HK) – 1H Rev/Np -9%/-48%; Potential Turn-Around by 2024

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>Hang Seng Indexes has started a consultation on the eligibility of Foreign Companies in the <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">Hang Seng Index</a>, a review of the seven Industry Groups and number of HK constituents.</li>
<li>We agree that foreign companies should be added to the index, no change needed to the Industry Groups, and the cap on the number of HK constituents should be removed.</li>
<li>There are a few potential adds due to the removal of the cap on HK companies, while there are potential foreign company additions later this year or in 2024.</li>
</ul>


Hang Seng Indexes has started a consultation on the eligibility of Foreign Companies in the Hang Seng Index, a review of the seven Industry Groups and number of HK constituents.
We agree that foreign companies should be added to the index, no change needed to the Industry Groups, and the cap on the number of HK constituents should be removed.
There are a few potential adds due to the removal of the cap on HK companies, while there are potential foreign company additions later this year or in 2024.


HSI Market Consultation: Foreign Companies, Industry Groups, HK Companies

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>After broker <a href="https://www.smartkarma.com/entities/mason-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:17664:1" rel="noopener">Mason Group (273 HK)</a> was suspended pursuant to Hong Kong's Takeovers Code on the 31 May, it has now announced a privatisation by way of Scheme at HK$0.0338/share.</li>
<li>The Offer price is only a 20.7% premium to last close, and a 12.7% premium to the three-month average closing price. It has not been declared final.</li>
<li>The Offeror is Red Emerald. Shareholders with 47.55% of shares out have given irrevocables in support of the Scheme. </li>
</ul>


After broker Mason Group (273 HK) was suspended pursuant to Hong Kong's Takeovers Code on the 31 May, it has now announced a privatisation by way of Scheme at HK$0.0338/share.
The Offer price is only a 20.7% premium to last close, and a 12.7% premium to the three-month average closing price. It has not been declared final.
The Offeror is Red Emerald. Shareholders with 47.55% of shares out have given irrevocables in support of the Scheme. 


<ul>
<li>Lithium battery maker, <a href="https://www.smartkarma.com/entities/eve-energy-co-ltd" target="_blank" data-smartkarma-citation="entities:14769:1" rel="noopener">EVE Energy (300014 CH)</a>, is expected to invest US$2.3bn in expanding its battery manufacturing capabilities in two new plants. </li>
<li>Both plants are expected to come online within 18-24 months, depending on market conditions and various approvals. </li>
<li>Eve is down 57% from its December 2021 high, and trading around its lowest level since November 2020, excluding a brief dip in April 2022. </li>
</ul>


Lithium battery maker, EVE Energy (300014 CH), is expected to invest US$2.3bn in expanding its battery manufacturing capabilities in two new plants. 
Both plants are expected to come online within 18-24 months, depending on market conditions and various approvals. 
Eve is down 57% from its December 2021 high, and trading around its lowest level since November 2020, excluding a brief dip in April 2022. 


Eve Energy (300014 CH): Hooked On Lithium

<ul><li>Smoore reported 1Q rev/ net profits at RMB2.5b/300mn, tracking below our full year estimates at only 16%/10%, respectively.</li><li>By region, China revenue was down 98% YoY while that of overseas was up 58%, thanks to strong sales of disposable refillers in Europe.</li><li>Although weakness in the China market was very much expected (as fruit flavoured refillers were still legal in 1Q22), the magnitude of decline is more severe than our/ market’s expectation of a c80-90% decline.</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.

Smoore reported 1Q rev/ net profits at RMB2.5b/300mn, tracking below our full year estimates at only 16%/10%, respectively.By region, China revenue was down 98% YoY while that of overseas was up 58%, thanks to strong sales of disposable refillers in Europe.Although weakness in the China market was very much expected (as fruit flavoured refillers were still legal in 1Q22), the magnitude of decline is more severe than our/ market’s expectation of a c80-90% decline.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.

Smoore Int’l (6969 HK) – 1Q tracking below us on weak domestic sales

China

Smoore International is a global leader in atomization technology solutions, specializing in the research, design, and manufacturing of vaping devices, components, and heat-not-burn products for corporate clients and under its own brands like Vaporesso and FEELM. The company also develops beauty atomization products. Headquartered in Shenzhen, China, Smoore International was founded in 2009.

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Smoore International (6969 HK)

Smoore Int’l (6969 HK) – 1H Rev/Np -9%/-48%; Potential Turn-Around by 2024

Net profit of RMB717mn came in at the low end of the pre-announcement, when revenue reportedly stood at a 9.4% YoY decline to RMB5.1bn.

CMB International

HSI Market Consultation: Foreign Companies, Industry Groups, HK Companies

The conclusions of the market consultation have been announced. Primary-listed foreign companies will be eligible for inclusion in the HSI and...

Brian Freitas

Mason (273 HK): Red Emerald's Scheme

Provided Hsu Yu Yu is supportive - and I assume she is - I can't see this Scheme being blocked. Assuming late September payment, buy up to...

David Blennerhassett

Eve Energy (300014 CH): Hooked On Lithium

One wonders what it will take to reverse this trend (impacting not just Eve) which illustrates a highly competitive market, one with a low moat.

David Blennerhassett

Smoore Int’l (6969 HK) – 1Q tracking below us on weak domestic sales

Smoore reported 1Q rev/ net profits at RMB2.5b/300mn, tracking below our full year estimates at only 16%/10%, respectively.

CMB International

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