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

Yonyou Network Technology A / Equity Bottom-Up

<ul><li>Yonyou reported (28 Oct) mixed 3Q23 results: revenue was RMB2.3bn (+14 % YoY), in line with Bloomberg consensus estimates, and demonstrated an improvement from -5% YoY decline in 1H23, thanks to the gradual wear off of reorganizational impact.</li><li>3Q23 net loss attributable to ordinary shareholders was RMB185mn; although it narrowed from that of RMB284mn in 3Q22, it missed consensus of a loss of RMB138mn, which we attribute to the 4.3ppt miss on GPM, which came in at 50.9% (3Q22: 49.9%).</li><li>We upgrade the stock from SELL to HOLD given likely better outlook on revenue growth and margin improvement in 4Q23 with the wear off of reorganizational impact, but overall macro and enterprises’ budget pressure takes time to relieve, and we await more concrete evidence to become more positive. </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.

Yonyou reported (28 Oct) mixed 3Q23 results: revenue was RMB2.3bn (+14 % YoY), in line with Bloomberg consensus estimates, and demonstrated an improvement from -5% YoY decline in 1H23, thanks to the gradual wear off of reorganizational impact.3Q23 net loss attributable to ordinary shareholders was RMB185mn; although it narrowed from that of RMB284mn in 3Q22, it missed consensus of a loss of RMB138mn, which we attribute to the 4.3ppt miss on GPM, which came in at 50.9% (3Q22: 49.9%).We upgrade the stock from SELL to HOLD given likely better outlook on revenue growth and margin improvement in 4Q23 with the wear off of reorganizational impact, but overall macro and enterprises’ budget pressure takes time to relieve, and we await more concrete evidence to become more positive. 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.

Yonyou (600588 CH) – Inflection Point Appeared, but Structural Improvement Likely Takes Time

<ul><li>Yonyou reported in-line revenue growth of +15% YoY to RMB1,475mn in FY1Q23.</li><li>Excluding one-off items (mainly fair value gains), adjusted net loss widened to RMB496mn as margin remained under pressure (OPM -1.2 ppts YoY to -37.6%).</li><li>Cloud revenue grew +27% YoY to RMB950mn, mainly driven by mid-sized enterprises (+65% YoY), but ARR was no longer disclosed. </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.

Yonyou reported in-line revenue growth of +15% YoY to RMB1,475mn in FY1Q23.Excluding one-off items (mainly fair value gains), adjusted net loss widened to RMB496mn as margin remained under pressure (OPM -1.2 ppts YoY to -37.6%).Cloud revenue grew +27% YoY to RMB950mn, mainly driven by mid-sized enterprises (+65% YoY), but ARR was no longer disclosed. 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.

Yonyou (600588 CH) – Lacks visibility in cloud

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

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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.

Quantitative Analysis

<ul>
<li>We analyze the monthly Shanghai/Shenzhen northbound Connect flows with our data engine.</li>
<li>Consumer Discretionary (inflows of $2,146 million), Financials (inflows of $1,619 million), Consumer Staples (inflows of $1,100 million) led the inflows while led the outflows.</li>
<li>We highlight flows for Moutai, CATL, BYD, Wuliangye, East Money, Haitian Flavoring, Luxshare, Longi Green, Wus Printed, Yonyou Network.</li>
</ul>


We analyze the monthly Shanghai/Shenzhen northbound Connect flows with our data engine.
Consumer Discretionary (inflows of $2,146 million), Financials (inflows of $1,619 million), Consumer Staples (inflows of $1,100 million) led the inflows while led the outflows.
We highlight flows for Moutai, CATL, BYD, Wuliangye, East Money, Haitian Flavoring, Luxshare, Longi Green, Wus Printed, Yonyou Network.


Northbound Flows Monthly (July): $7.3bn Inflows

<ul>
<li>We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of July 28th.</li>
<li>We estimate the weekly inflows to be US$5,187.1 million, led by financials, consumer staples, industrials sectors, and offset by information technology.</li>
<li>We highlight flows for Moutai, CATL, East Money Information, Wuliangye, Ping An Insurance, Haitian Flavouring, LUxshare, BOE.</li>
</ul>


We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of July 28th.
We estimate the weekly inflows to be US$5,187.1 million, led by financials, consumer staples, industrials sectors, and offset by information technology.
We highlight flows for Moutai, CATL, East Money Information, Wuliangye, Ping An Insurance, Haitian Flavouring, LUxshare, BOE.


Northbound Flows (Jul 28th): $5.2bn Inflows

<ul>
<li>We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of July 21st.</li>
<li>We estimate the weekly outflows to be US$1,012.2 million, led by information technology, financials, and offset by consumer discretionary, communication services, real estate.</li>
<li>We highlight flows for ZTE, Moutai, Zhongji Innolight, Longi Green, CATL.</li>
</ul>


We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of July 21st.
We estimate the weekly outflows to be US$1,012.2 million, led by information technology, financials, and offset by consumer discretionary, communication services, real estate.
We highlight flows for ZTE, Moutai, Zhongji Innolight, Longi Green, CATL.


Northbound Flows (Jul 21st): ZTE, Moutai, Zhongji Innolight, Longi Green, CATL

China

Yonyou Network Technology Co., Ltd. develops and markets enterprise-wide business applications software, including financial, web-based, management, and security development software. The Company also offers training programs.

Yonyou Network Technology A (600588 CH)

Yonyou (600588 CH) – Inflection Point Appeared, but Structural Improvement Likely Takes Time

Yonyou reported (28 Oct) mixed 3Q23 results: revenue was RMB2.3bn (+14 % YoY), in line with Bloomberg consensus estimates, and demonstrated an...

CMB International

Yonyou (600588 CH) – Lacks visibility in cloud

Cloud revenue grew +27% YoY to RMB950mn, mainly driven by mid-sized enterprises (+65% YoY), but ARR was no longer disclosed.

CMB International

Northbound Flows Monthly (July): $7.3bn Inflows

We analyzed the Shanghai/Shenzhen Connect Scheme for July and highlight flows for Moutai, CATL, BYD, Wuliangye, East Money, Haitian Flavoring,...

Ke Yan, CFA, FRM

Northbound Flows (Jul 28th): $5.2bn Inflows

We analyzed the Shanghai/Shenzhen Connect Scheme for last week and highlight flows for Moutai, CATL, East Money Information, Wuliangye, Ping An...

Ke Yan, CFA, FRM

Northbound Flows (Jul 21st): ZTE, Moutai, Zhongji Innolight, Longi Green, CATL

We analyzed northbound Shanghai/Shenzhen connect flows in the past week and highlight flows for ZTE, Moutai, Zhongji Innolight, Longi Green, CATL.

Ke Yan, CFA, FRM