Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>A shares were up on the week, while Hs were down. BIG divergence among liquid names. </li>
<li>Net SOUTHBOUND buying was +HK32.1bn. SOUTHBOUND ended its consecutive post-CNY daily net buy streak on 25 March, then started a new one. No net sell days since.</li>
<li>Little market news. More geopolitical news. SOE bank H-shares are seeing relentless net and gross buying, very very little selling.</li>
</ul>


A shares were up on the week, while Hs were down. BIG divergence among liquid names. 
Net SOUTHBOUND buying was +HK32.1bn. SOUTHBOUND ended its consecutive post-CNY daily net buy streak on 25 March, then started a new one. No net sell days since.
Little market news. More geopolitical news. SOE bank H-shares are seeing relentless net and gross buying, very very little selling.


HK Connect SOUTHBOUND Flows (To 19 Apr 2024); Strong Net Buying on Energy/Finance/Telco SOEs. Again.

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>Tencent remains on track of margins expansion, underpinned by increased revenue contribution from high-margin businesses and operating leverage.</li><li>The company is also committed to enhancing shareholder return, with daily share repurchase amount reaching HK$1bn (c.13% of average daily turnover) since 4Q23 earning release in March.</li><li>For 1Q24E, we forecast total revenue to increase by 6% YoY to RMB158.6bn, while non-IFRS net income to grow by 31% YoY to RMB43.1bn, primarily driven by the solid GPM expansion (+c.3ppt YoY). </li></ul><p><em>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.</em></p>

Tencent remains on track of margins expansion, underpinned by increased revenue contribution from high-margin businesses and operating leverage.The company is also committed to enhancing shareholder return, with daily share repurchase amount reaching HK$1bn (c.13% of average daily turnover) since 4Q23 earning release in March.For 1Q24E, we forecast total revenue to increase by 6% YoY to RMB158.6bn, while non-IFRS net income to grow by 31% YoY to RMB43.1bn, primarily driven by the solid GPM expansion (+c.3ppt YoY). 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.

Tencent (700 HK) - Expect Solid Earnings Growth and Enhancing Shareholder Return in FY24

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.

<ul>
<li>There is a rumor in social media that Tencent will dismiss 10% - 30% of its employees.</li>
<li>Alibaba withdrew the IPO application of its subsidiary Cainiao and all the other IPOs were halted as well.</li>
<li>Xiaomi began to sell its first vehicle model SU7, but it is too late for the company to enter the market.</li>
</ul>


There is a rumor in social media that Tencent will dismiss 10% - 30% of its employees.
Alibaba withdrew the IPO application of its subsidiary Cainiao and all the other IPOs were halted as well.
Xiaomi began to sell its first vehicle model SU7, but it is too late for the company to enter the market.


China Consumption Weekly (1 Apr 2024): Tencent, Alibaba, Xiaomi, Midea

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

<ul>
<li>China announced game approval for the Feb batch. The number of games approved remained at a higher level than 2023.</li>
<li>The pace of China game approval appears to have accelerated to the same level as pre-tightening.</li>
<li>However, neither Tencent and Netease got any approval in March.</li>
</ul>


China announced game approval for the Feb batch. The number of games approved remained at a higher level than 2023.
The pace of China game approval appears to have accelerated to the same level as pre-tightening.
However, neither Tencent and Netease got any approval in March.


Tencent/Netease: Both Zeroed in March Game Approval

<ul>
<li>A shares were down on the week, but rallied Thursday and Friday.</li>
<li>Net SOUTHBOUND buying was +HK8.5bn after $57bn the two weeks before. SOUTHBOUND ended its consecutive net daily buy streak Monday, then started buying again.</li>
<li>The flavour of SOUTHBOUND buying has been high-div SOEs for months and months. That is starting to change slightly. Tencent was the top net buy this week. Again.</li>
</ul>


A shares were down on the week, but rallied Thursday and Friday.
Net SOUTHBOUND buying was +HK8.5bn after $57bn the two weeks before. SOUTHBOUND ended its consecutive net daily buy streak Monday, then started buying again.
The flavour of SOUTHBOUND buying has been high-div SOEs for months and months. That is starting to change slightly. Tencent was the top net buy this week. Again.


HK Connect SOUTHBOUND Flows (To 28 Mar 2024); Strong Net Buying on Tencent, Telcos, and Energy

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.

Tencent (700 HK)

HK Connect SOUTHBOUND Flows (To 19 Apr 2024); Strong Net Buying on Energy/Finance/Telco SOEs. Again.

Strong HK SOUTHBOUND Connect buying, again. HKD $32.1bn which is very strong. Energy, Finance, and Telco SOEs continue to dominate. Some may be...

Travis Lundy

Tencent (700 HK) - Expect Solid Earnings Growth and Enhancing Shareholder Return in FY24

Tencent remains on track of margins expansion, underpinned by increased revenue contribution from high-margin businesses and operating leverage.

CMB International

China Consumption Weekly (1 Apr 2024): Tencent, Alibaba, Xiaomi, Midea

There is a rumor in social media that Tencent will dismiss 10% - 30% of its employees. Alibaba withdrew the IPO application of its subsidiary,...

Ming Lu

Tencent/Netease: Both Zeroed in March Game Approval

China's game approval process shows higher levels than in 2023, with an accelerated pace resembling pre-tightening, but major companies like...

Ke Yan, CFA, FRM

HK Connect SOUTHBOUND Flows (To 28 Mar 2024); Strong Net Buying on Tencent, Telcos, and Energy

HK SOUTHBOUND Connect was a net buyer again this week, but the streak of consecutive buying since Chinese New Year was broken on Monday. SOEs and...

Travis Lundy

HK Connect SOUTHBOUND Flows (To 19 Apr 2024); Strong Net Buying on Energy/Finance/Telco SOEs. Again.

Strong HK SOUTHBOUND Connect buying, again. HKD $32.1bn which is very strong. Energy, Finance, and Telco SOEs continue to dominate. Some may be...

Travis Lundy

Tencent (700 HK) - Expect Solid Earnings Growth and Enhancing Shareholder Return in FY24

Tencent remains on track of margins expansion, underpinned by increased revenue contribution from high-margin businesses and operating leverage.

CMB International

China Consumption Weekly (1 Apr 2024): Tencent, Alibaba, Xiaomi, Midea

There is a rumor in social media that Tencent will dismiss 10% - 30% of its employees. Alibaba withdrew the IPO application of its subsidiary,...

Ming Lu

Tencent/Netease: Both Zeroed in March Game Approval

​China's game approval process shows higher levels than in 2023, with an accelerated pace resembling pre-tightening, but major companies like...

Ke Yan, CFA, FRM

HK Connect SOUTHBOUND Flows (To 28 Mar 2024); Strong Net Buying on Tencent, Telcos, and Energy

HK SOUTHBOUND Connect was a net buyer again this week, but the streak of consecutive buying since Chinese New Year was broken on Monday. SOEs and...

Travis Lundy

China's game approval process shows higher levels than in 2023, with an accelerated pace resembling pre-tightening, but major companies like...