ChinaDaily Briefs

China: Yidu Tech Inc, Bilibili Inc, Alibaba Group, JD.com Inc., China Tourism Group Duty Free Corp Ltd, Garuda Indonesia (Persero), Imeik Technology Development, Transcenta Holding and more

In today’s briefing:

  • Yidu Tech (医渡云) Lock-Up Expiry – About US$2bn Worth of Shares Unlocked
  • Bilibili: Buy the Dip
  • Alibaba (BABA): China E-Commerce Growth Rate Not Declining, But Accelerating
  • Jd.com – a Critical Quarter on the Horizon
  • CTG Duty Free (601888 CH) H-Share Pre-IPO: Fundamentally Speaking
  • Morning Views Asia: Fantasia Holdings Group Co, Garuda Indonesia (Persero), MGM China Holdings
  • Imeik Technology Development (300896.CH) – The Valuation Bubble?
  • Transcenta (创胜) Pre-IPO: Thoughts on Valuation

Yidu Tech (医渡云) Lock-Up Expiry – About US$2bn Worth of Shares Unlocked

By Zhen Zhou, Toh

Yidu Tech Inc (2158 HK) (Yidu) IPO lock-up expired on 15th July, 2021. Earlier in January, the company raised about US$539m in its Hong Kong IPO after pricing at HK$26.30 per share, the top-end of the price range.

Yidu is a healthcare data solution provider. It leverages big data and artificial intelligence (AI) technologies and provides solutions to key healthcare participants that include mainly hospitals, pharmaceutical, biotech and medical device companies, regulators and policy makers. 

Our previous coverage of the IPO:


Bilibili: Buy the Dip

By Shifara Samsudeen, ACMA, CGMA

The Chinese mobile games and video platform Bilibili Inc (BILI US) ’s shares have dropped 30.3% to US$109.01 per ADS from its peak of US$156.37 per ADS in mid-February 2021 due to the widening antitrust probe and cyberspace crackdown on Chinese tech companies, those that are listed in the US in particular.
However, considering Bilibili’s business operations and its not so dominant market share in the Chinese mobile games and video streaming markets, we believe Bilibili is less likely to be probed by the Chinese antitrust authorities and the current drop in the company’s share price offers a good point of entry.

Alibaba (BABA): China E-Commerce Growth Rate Not Declining, But Accelerating

By Ming Lu

  • We believe China online retail growth rate accelerated in May and June 2021 compared to the same months in 2019.
  • In 2021, e-commerce apps managed to retain most users who started online shopping during the lockdown in 2020.
  • The YoY growth rates are misleading. It is a mistake that online shopping is slowing down after the pandemic has eased in China.

Jd.com – a Critical Quarter on the Horizon

By Rickin Thakrar

We believe a critical quarter looms for JD.com. The company will face the first in a series of brutally tough quarterly comps from last year. In addition, we believe further scrutiny is likely to arise on the durability of JD.com’s cash flow which started to show weakness in 1Q21. We provide an early preview as investors may also look through to other companies as an early read-across for JD.com


CTG Duty Free (601888 CH) H-Share Pre-IPO: Fundamentally Speaking

By Osbert Tang, CFA

We have expressed our positive view on China Tourism Group Duty Free Corp Ltd (601888 CH) in various Insights previously. In this Insight, we look at the proposed H-share IPO from the perspective of investors who do not know it well. For seasoned investors in this name, this Insight serves as a summary of our views and provides background details on the proposed IPO.

Fundamentally speaking, the key positives for CTG Duty Free are: 1.) absolute leadership in China’s duty free market, 2.) encouraging growth outlook, and 3.) solid profitability and financial position. Key negatives are: 1.) policy risk and rising competition, 2.) concern on payback of new projects, and 3.) risk of overseas expansion. If the IPO is being priced at the current average H-A discount, it will be on 32.7x FY21F PER, we see this not expensive relative to the premium retailers listed in Hong Kong. 


Morning Views Asia: Fantasia Holdings Group Co, Garuda Indonesia (Persero), MGM China Holdings

By Charles Macgregor

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.


Imeik Technology Development (300896.CH) – The Valuation Bubble?

By Xinyao (Criss) Wang

Imeik Technology Development (300896 CH) is undoubtedly one of the hottest stars in the capital market in 2021. At the beginning of 2021, its share price was once over RMB1300/share, making it the third company whose share price exceeded RMB1000/share in the history of A-share market. After that, Imeik’s share price reentered the upward trend after a period of correction. As of July 16, 2021, its share price was RMB773.19/share, with a market value of RMB167.3 billion. However, interestingly, the revenue of Imeik in 2020 was just RMB700 million and its net profit was RMB433 million. So, could Imerk support its high valuation?


Transcenta (创胜) Pre-IPO: Thoughts on Valuation

By Ke Yan, CFA, FRM

Transcenta, formerly Mabspace, is a global clinical stage biopharmaceutical company. It is looking to raise up to USD 200m via a Hong Kong listing.  

In our previous note, we looked at two drug candidates, the next generation PD-L1 MSB2311, and the Claudin 18.2 antibody, TS001. MSB2311 features PH-dependent binding property that can result in recycling of the antibody. TS001 improves the binding property and hence increases the addressable market vs the benchmark zolbetuximab. We think the company’s products are differentiated though both PD-1/PD-L1, and the Claudin 18.2 class of drugs are intensely contested. The company has a strong management team with relevant experience of R&D. It also has pre-IPO investors with four rounds of capital raising pre-IPO. 

In this note, we will provide our thoughts on valuation.


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