Global TMT analyst with Asia ex-Japan focus.

Mitchell Kim

Thematic (Sector/Industry)

<ul>
<li>Our analysis of China retail sales data for 1Q21 shows online retail spending growth has been big.  If I am looking for an entry point, I would look to take a long position now before the earnings rather than after.   </li>
<li>Online sales growth was strongest for apparel, food, then general merchandise and electronics. </li>
<li>Vipshop (apparel) and PDD (food) should be big winners.   </li>
<li>but Alibaba's 54% revenue growth and JD's 34% is not to be brushed aside.  </li>
<li>Find out why I would still prefer to own Alibaba and JD.com over VIPS and PDD. </li>
<li>More details on China retail sales data breakdown, 1Q21 earnings expectations and valuations comparisons provided in this report. </li>
</ul>


Our analysis of China retail sales data for 1Q21 shows online retail spending growth has been big.  If I am looking for an entry point, I would look to take a long position now before the earnings rather than after.   
Online sales growth was strongest for apparel, food, then general merchandise and electronics. 
Vipshop (apparel) and PDD (food) should be big winners.   
but Alibaba's 54% revenue growth and JD's 34% is not to be brushed aside.  
Find out why I would still prefer to own Alibaba and JD.com over VIPS and PDD. 
More details on China retail sales data breakdown, 1Q21 earnings expectations and valuations comparisons provided in this report. 


China E-Commerce: Robust Consumption Data Hints at Online Spending Spree

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>The State Administration for Market Regulation (SAMR) began to investigate Meituan.</li>
<li>We believe Meituan must be fined after the investigation.</li>
<li>We also believe Alibaba’s Ele.me will benefit from the investigation and may possibly change its disadvantageous situation.</li>
<li>We set the downside for Meituan between 21% and 23%.</li>
</ul>


The State Administration for Market Regulation (SAMR) began to investigate Meituan.
We believe Meituan must be fined after the investigation.
We also believe Alibaba’s Ele.me will benefit from the investigation and may possibly change its disadvantageous situation.
We set the downside for Meituan between 21% and 23%.


Meituan (3690 HK): Forthcoming Punishment Will Benefit Alibaba

APAC IPOs & Placements

Zhen Zhou, Toh

Equity Capital Markets

<div>
<p>Wuxi Biologics Holdings is looking to raise up to US$1.3bn by selling about 2.3% of <a href="https://www.smartkarma.com/entities/wuxi-apptec" target="_blank" data-smartkarma-citation="entities:23679:1" rel="noopener">Wuxi Biologics (2269 HK)</a>. This is the company's 14th placement since it listed in June 2017. </p>
<p>In this note, we will discuss deal dynamics, past deal performance, and share the scores on our ECM framework.</p>
</div><div><p>Links to our coverage of the IPO and past deals:</p></div><div><ul style="list-style-type: disc;">
<li>Jun 2017 - US$500m: <a href="https://www.smartkarma.com/insights/wuxi-biologics-ipo-review-an-opportunity-to-get-exposure-to-biologics-in-china" target="_blank" rel="noopener">WuXi Biologics IPO Review - An Opportunity to Get Exposure to Biologics in China</a>
</li>
<li>Dec 2017- US$650m: <a href="https://www.smartkarma.com/insights/wuxi-biologics-placement-selldown-right-when-lockup-expires-suggests-eagerness-to-offload" target="_blank" rel="noopener">Wuxi Biologics Placement - Selldown Right when Lockup Expires Suggests Eagerness to Offload</a>
</li>
<li>Mar 2018 - US$605m: <a href="https://www.smartkarma.com/insights/wuxi-biologics-placement-in-time-for-the-next-lock-up-returns-will-probably-not-match-prior-ones" target="_blank" rel="noopener">Wuxi Biologics Placement - In Time for the Next Lock-Up, Returns Will Probably Not Match Prior Ones</a>
</li>
<li>Jun 2018 - US$510m: <a href="https://www.smartkarma.com/insights/wuxi-biologics-placement-probably-not-a-surprise-to-sell-again-when-lock-up-expires" target="_blank" rel="noopener">Wuxi Biologics Placement - Probably Not a Surprise to Sell Again when Lock-Up Expires</a>
</li>
<li>Mar 2019 - US$517m: <a href="https://www.smartkarma.com/insights/wuxi-biologics-placement-past-deals-have-done-well-but-progressive-returns-are-getting-lower" target="_blank" rel="noopener">Wuxi Biologics Placement - Past Deals Have Done Well but Progressive Returns Are Getting Lower</a>
</li>
<li>June 2019 - US$495m: <a href="https://www.smartkarma.com/insights/wuxi-biologics-placement-past-deal-did-well-despite-sell-down-overhang" target="_blank" rel="noopener">Wuxi Biologics Placement: Past Deal Did Well Despite Sell-Down Overhang</a>
</li>
<li>October 2019 - US$1,020m: <a href="https://www.smartkarma.com/insights/wuxi-biologics-placement-a-larger-deal-but-performance-track-record-weighs" target="_blank" rel="noopener">Wuxi Biologics Placement: A Larger Deal but Performance Track Record Weighs</a>
</li>
<li>Jan 2020 - US$753m: <a href="https://www.smartkarma.com/insights/wuxi-biologics-placement-almost-all-of-the-past-deals-have-done-well-would-bid-near-the-bottom-end" target="_blank" rel="noopener">Wuxi Biologics Placement: Almost All of the past Deals Have Done Well, Would Bid near the Bottom End</a>
</li>
<li>Mar 2020 - US$599m: <a href="https://www.smartkarma.com/insights/wuxi-biologics-placement-another-pre-lockup-placement-but-past-deals-have-done-well" target="_blank" data-smartkarma-citation="insights:37994" rel="noopener">Wuxi Biologics Placement: Another Pre-Lockup Placement but Past Deals Have Done Well</a> </li>
<li>May 2020 - US$984m: <a href="https://www.smartkarma.com/insights/wuxi-biologics-placement-biggest-deal-size-at-launch-well-ahead-of-lock-up-expiry" target="_blank" rel="noopener">Wuxi Biologics Placement - Biggest Deal Size at Launch, Well Ahead of Lock-Up Expiry</a>
</li>
<li>Jun 2020 - US$798m: <a href="https://www.smartkarma.com/insights/wuxi-biologics-placement-this-time-it-s-different" target="_blank" rel="noopener">Wuxi Biologics Placement - This Time It’s Different</a>
</li>
<li>Round-up of past deals performance - <a href="https://www.smartkarma.com/insights/wuxi-biologics-recap-learnings-from-past-placements" target="_blank" rel="noopener">Wuxi Biologics - Recap/​Learnings from past Placements</a>
</li>
<li>Sep 2020 -  US$800m: <a href="https://www.smartkarma.com/insights/wuxi-biologics-placement-another-pre-lockup-placement-but-past-deals-have-done-well" target="_blank" data-smartkarma-citation="insights:37994" rel="noopener">Wuxi Biologics Placement: Another Pre-Lockup Placement but Past Deals Have Done Well</a> </li>
<li>Jan 2021 - US$1bn: <a href="https://www.smartkarma.com/insights/wuxi-biologics-placement-well-ahead-of-lock-up-again" target="_blank" data-smartkarma-citation="insights:46751" rel="noopener">Wuxi Biologics Placement - Well Ahead of Lock-Up, Again</a> </li>
<li>Feb 2021 - US$1.7bn: <a href="https://www.smartkarma.com/insights/wuxi-biologics-placement-laying-the-groundwork-for-future-growth" target="_blank" data-smartkarma-citation="insights:47704" rel="noopener">Wuxi Biologics Placement - Laying the Groundwork for Future Growth</a> </li>
</ul></div>


Wuxi Biologics Holdings is looking to raise up to US$1.3bn by selling about 2.3% of Wuxi Biologics (2269 HK). This is the company's 14th placement since it listed in June 2017. 
In this note, we will discuss deal dynamics, past deal performance, and share the scores on our ECM framework.
Links to our coverage of the IPO and past deals:
Jun 2017 - US$500m: WuXi Biologics IPO Review - An Opportunity to Get Exposure to Biologics in China

Dec 2017- US$650m: Wuxi Biologics Placement - Selldown Right when Lockup Expires Suggests Eagerness to Offload

Mar 2018 - US$605m: Wuxi Biologics Placement - In Time for the Next Lock-Up, Returns Will Probably Not Match Prior Ones

Jun 2018 - US$510m: Wuxi Biologics Placement - Probably Not a Surprise to Sell Again when Lock-Up Expires

Mar 2019 - US$517m: Wuxi Biologics Placement - Past Deals Have Done Well but Progressive Returns Are Getting Lower

June 2019 - US$495m: Wuxi Biologics Placement: Past Deal Did Well Despite Sell-Down Overhang

October 2019 - US$1,020m: Wuxi Biologics Placement: A Larger Deal but Performance Track Record Weighs

Jan 2020 - US$753m: Wuxi Biologics Placement: Almost All of the past Deals Have Done Well, Would Bid near the Bottom End

Mar 2020 - US$599m: Wuxi Biologics Placement: Another Pre-Lockup Placement but Past Deals Have Done Well 
May 2020 - US$984m: Wuxi Biologics Placement - Biggest Deal Size at Launch, Well Ahead of Lock-Up Expiry

Jun 2020 - US$798m: Wuxi Biologics Placement - This Time It’s Different

Round-up of past deals performance - Wuxi Biologics - Recap/​Learnings from past Placements

Sep 2020 -  US$800m: Wuxi Biologics Placement: Another Pre-Lockup Placement but Past Deals Have Done Well 
Jan 2021 - US$1bn: Wuxi Biologics Placement - Well Ahead of Lock-Up, Again 
Feb 2021 - US$1.7bn: Wuxi Biologics Placement - Laying the Groundwork for Future Growth 


Wuxi Biologics Placement - Market Is Likely Well-Positioned for the Selldown

Insurance, Fintech & EM-focused Analyst, KT Capital Group, KT Capital Group

Alec Tseung

Insurance, Fintech & EM-focused Analyst, KT Capital Group

ZhongAn Online P&C Insurance C / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/zhongan-online-p-c-insurance-co-ltd" target="_blank" data-smartkarma-citation="entities:23681:1" rel="noopener">ZhongAn Online P&amp;C Insurance (6060 HK)</a> and <a href="https://www.smartkarma.com/entities/lemonade-inc" target="_blank" data-smartkarma-citation="entities:29163:1" rel="noopener">Lemonade Inc (LMND US)</a> are two widely known Insurtech companies in the world's two largest property &amp; casualty (P&amp;C) insurance markets</li>
<li>Based on the comparison in the following article, ZhongAn is preferred to Lemonade, both in terms of the valuation and company development</li>
<li>ZhongAn further showed encouraging signs in 2020 as it shifted the product mix towards the health segment, thanks to the pandemic, and its combined ratio was at the lowest since it started operations  </li>
</ul>



ZhongAn Online P&amp;C Insurance (6060 HK) and Lemonade Inc (LMND US) are two widely known Insurtech companies in the world's two largest property &amp; casualty (P&amp;C) insurance markets
Based on the comparison in the following article, ZhongAn is preferred to Lemonade, both in terms of the valuation and company development
ZhongAn further showed encouraging signs in 2020 as it shifted the product mix towards the health segment, thanks to the pandemic, and its combined ratio was at the lowest since it started operations  


ZhongAn Vs. Lemonade: Which One Is a Better Insurtech Bet?

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Quantitative Analysis

<div><p>The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.</p></div><div><p>Hong Kong saw shorts rise on <a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a>, <a href="https://www.smartkarma.com/entities/beijing-kuaishou-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:29725:1" rel="noopener">Kuaishou Technology (1024 HK)</a>, <a href="https://www.smartkarma.com/entities/ping-an-healthcare-and-technology-company-limited" target="_blank" data-smartkarma-citation="entities:27008:1" rel="noopener">Ping An Healthcare and Technology Company Limited (1833 HK)</a> and <a href="https://www.smartkarma.com/entities/alibaba-group" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group (9988 HK)</a> while there was short covering on <a href="https://www.smartkarma.com/entities/ping-an-insurance-grp-co-of-china-ltd" target="_blank" data-smartkarma-citation="entities:12880:1" rel="noopener">Ping An Insurance (H) (2318 HK)</a>, <a href="https://www.smartkarma.com/entities/zhongsheng-group-holdings" target="_blank" data-smartkarma-citation="entities:10573:1" rel="noopener">Zhongsheng Group (881 HK)</a>, <a href="https://www.smartkarma.com/entities/aac-technologies-holdings-inc" target="_blank" data-smartkarma-citation="entities:6544:1" rel="noopener">AAC Technologies Holdings (2018 HK)</a> and <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>. Shorts increased in the Consumer Discretionary, Health Care, Materials and Real Estate sectors, and decreased in the Information Technology, Financials and Consumer Staples sectors.</p></div><div><p>In Japan, stocks that saw the most shorts were <a href="https://www.smartkarma.com/entities/toshiba-corp" target="_blank" data-smartkarma-citation="entities:637:1" rel="noopener">Toshiba Corp (6502 JP)</a>, <a href="https://www.smartkarma.com/entities/asahi-kasei-corp" target="_blank" data-smartkarma-citation="entities:19771:1" rel="noopener">Asahi Kasei (3407 JP)</a>, <a href="https://www.smartkarma.com/entities/olympus-corp" target="_blank" data-smartkarma-citation="entities:356:1" rel="noopener">Olympus Corp (7733 JP)</a> and <a href="https://www.smartkarma.com/entities/monex-group-inc" target="_blank" data-smartkarma-citation="entities:14211:1" rel="noopener">Monex Group Inc (8698 JP)</a> while shorts decreased on <a href="https://www.smartkarma.com/entities/orix-corp" target="_blank" data-smartkarma-citation="entities:9936:1" rel="noopener">Orix Corp (8591 JP)</a>, <a href="https://www.smartkarma.com/entities/nippon-telegraph-telephone-corporation" target="_blank" data-smartkarma-citation="entities:623:1" rel="noopener">NTT (Nippon Telegraph &amp; Telephone) (9432 JP)</a>, <a href="https://www.smartkarma.com/entities/shimano-inc" target="_blank" data-smartkarma-citation="entities:3777:1" rel="noopener">Shimano Inc (7309 JP)</a> and <a href="https://www.smartkarma.com/entities/japan-tobacco-inc" target="_blank" data-smartkarma-citation="entities:13498:1" rel="noopener">Japan Tobacco (2914 JP)</a>. Shorts increased in the Industrials, Materials and Health Care sectors, and decreased in the Communication Services, Financials and Consumer Staples sectors.</p></div><div><p>In Korea, shorts increased on <a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a>, <a href="https://www.smartkarma.com/entities/celltrion-inc" target="_blank" data-smartkarma-citation="entities:991:1" rel="noopener">Celltrion Inc (068270 KS)</a>, <a href="https://www.smartkarma.com/entities/hyundai-motor-co" target="_blank" data-smartkarma-citation="entities:155:1" rel="noopener">Hyundai Motor Co (005380 KS)</a> and <a href="https://www.smartkarma.com/entities/sk-hynix-inc" target="_blank" data-smartkarma-citation="entities:16955:1" rel="noopener">SK Hynix (000660 KS)</a> during the week. This was the first week where short increased substantially in Korea and comes a week ahead of the end of the short sell ban.</p></div><div><p>Stocks in Taiwan that saw the highest increase in shorts were <a href="https://www.smartkarma.com/entities/china-steel-corp" target="_blank" data-smartkarma-citation="entities:962:1" rel="noopener">China Steel (2002 TT)</a>, <a href="https://www.smartkarma.com/entities/china-airlines-ltd" target="_blank" data-smartkarma-citation="entities:4591:1" rel="noopener">China Airlines (2610 TT)</a>, <a href="https://www.smartkarma.com/entities/united-microelectronics-corp" target="_blank" data-smartkarma-citation="entities:6450:1" rel="noopener">United Microelectronics Corp (2303 TT)</a> and <a href="https://www.smartkarma.com/entities/taiwan-cement" target="_blank" data-smartkarma-citation="entities:19736:1" rel="noopener">Taiwan Cement (1101 TT)</a> while shorts were covered on <a href="https://www.smartkarma.com/entities/innolux-corp" target="_blank" data-smartkarma-citation="entities:4509:1" rel="noopener">Innolux Corp (3481 TT)</a>, <a href="https://www.smartkarma.com/entities/genius-electronic-optical-co-ltd" target="_blank" data-smartkarma-citation="entities:9632:1" rel="noopener">Genius Electronic Optical (3406 TT)</a>, <a href="https://www.smartkarma.com/entities/delta-electronics-inc" target="_blank" data-smartkarma-citation="entities:12688:1" rel="noopener">Delta Electronics (2308 TT)</a> and <a href="https://www.smartkarma.com/entities/pegatron-corp" target="_blank" data-smartkarma-citation="entities:12852:1" rel="noopener">Pegatron Corp (4938 TT)</a>.</p></div>

The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.Hong Kong saw shorts rise on Meituan (3690 HK), Kuaishou Technology (1024 HK), Ping An Healthcare and Technology Company Limited (1833 HK) and Alibaba Group (9988 HK) while there was short covering on Ping An Insurance (H) (2318 HK), Zhongsheng Group (881 HK), AAC Technologies Holdings (2018 HK) and Tencent Holdings (700 HK). Shorts increased in the Consumer Discretionary, Health Care, Materials and Real Estate sectors, and decreased in the Information Technology, Financials and Consumer Staples sectors.In Japan, stocks that saw the most shorts were Toshiba Corp (6502 JP), Asahi Kasei (3407 JP), Olympus Corp (7733 JP) and Monex Group Inc (8698 JP) while shorts decreased on Orix Corp (8591 JP), NTT (Nippon Telegraph &amp; Telephone) (9432 JP), Shimano Inc (7309 JP) and Japan Tobacco (2914 JP). Shorts increased in the Industrials, Materials and Health Care sectors, and decreased in the Communication Services, Financials and Consumer Staples sectors.In Korea, shorts increased on Samsung Electronics (005930 KS), Celltrion Inc (068270 KS), Hyundai Motor Co (005380 KS) and SK Hynix (000660 KS) during the week. This was the first week where short increased substantially in Korea and comes a week ahead of the end of the short sell ban.Stocks in Taiwan that saw the highest increase in shorts were China Steel (2002 TT), China Airlines (2610 TT), United Microelectronics Corp (2303 TT) and Taiwan Cement (1101 TT) while shorts were covered on Innolux Corp (3481 TT), Genius Electronic Optical (3406 TT), Delta Electronics (2308 TT) and Pegatron Corp (4938 TT).

Asia Shorts: Meituan, Kuaishou, Zhongsheng, Toshiba, Monex, Orix, Samsung, HMC, China Steel, Innolux

China

Tencent Holdings Limited operates as an investment holding company. The Company, through its subsidiaries, provides Internet and mobile value-added services (VAS), online advertising, and e-commerce transactions. Tencent Holdings offers services to users worldwide.

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Tencent Holdings (ADR) (TCEHY US)

China E-Commerce: Robust Consumption Data Hints at Online Spending Spree

China retail sales data hints at a big online spending quarter. Vipshop and PDD are expected to be big winners, but find out why you should jump...

Mitchell Kim

Meituan (3690 HK): Forthcoming Punishment Will Benefit Alibaba

State Administration for Market Regulation (SAMR) began to investigate Meituan. We believe penalty must follow. We also believe Alibaba’s Ele.me...

Ming Lu

Wuxi Biologics Placement - Market Is Likely Well-Positioned for the Selldown

Wuxi Biologics Holdings is looking to raise up to US$1.3bn by selling about 2.3% of Wuxi Biologics (2269 HK). This is the company's 14th placement...

Zhen Zhou, Toh

ZhongAn Vs. Lemonade: Which One Is a Better Insurtech Bet?

With encouraging signs shown in 2020, ZhongAn Online is preferred to Lemonade, both from the perspectives of the valuation and company development.

Alec Tseung

Asia Shorts: Meituan, Kuaishou, Zhongsheng, Toshiba, Monex, Orix, Samsung, HMC, China Steel, Innolux

The Insight looks at large short interest movements across HK, Japan, Korea and Taiwan stocks and highlights large increases/decreases in shorts to...

Brian Freitas

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