In today’s briefing:
- ESR (1821 HK): A Shareholder Register Look-Through
- CSI Liquor/ Alcoholic Drink Index Rebalance: Adds, Deletes & Capping Changes
- HSI Tactical Outlook: Buy This Dip
- Pre IPO Eastroc Beverage Group (H Share) – The Strength, the Concerns and the Outlook
- China Northern Rare Earth (Ticker: 600111.SH): Dominant Force Riding REE Upswing
- SDA: SunCar reports 1st quarter 2025 financial and operating results which showed strong revenue growth. The company continues to secure multiple partnerships and business agreements.
ESR (1821 HK): A Shareholder Register Look-Through
- Today, I was the first analyst to gain access to ESR (1821 HK)‘s lesser-known shareholder register, a byproduct of investigative disclosure reports under s329 of the Securities and Futures Ordinance.
- This is the same register discussed in Giordano (709 HK): A Closer Look At The Shareholder Register Ahead Of The SGM and L’Occitane (973 HK): Who Owns What, And When
- It is also used by proxy solicitors. My takeaway, still, is that this Offer is a done deal. But yes; there are a few shareholder activists lurking in the register.
CSI Liquor/ Alcoholic Drink Index Rebalance: Adds, Deletes & Capping Changes
- There is 1 add for the CSI Liquor Index and 1 add/ 2 deletes for the CSI Alcoholic Drink Index in June.
- Gansu Huangtai Wine Mktg Ind Co., (000995 CH) will be added to the CSI Liquor Index and the CSI Alcoholic Drink Index.
- There will be big selling in Kweichow Moutai (600519 CH) due to the stock being capped in both indices. Smaller capping flows in the other stocks.
HSI Tactical Outlook: Buy This Dip
- After a 7-week rally the Hang Seng Index (HSI INDEX) last week gave up and close the week down (CC=-1 on our WEEKLY LONG model).
- The pullback continued on Monday, reaching 22668 and in our WEEKLY LONG model this price support zone is oversold.
- The pullback may continue, so in this insight we are going to offer some perspective on possible support zones where to buy. We think this setback is a buy opportunity.
Pre IPO Eastroc Beverage Group (H Share) – The Strength, the Concerns and the Outlook
- 2024 is a milestone year. The weighted average ROE set a new high. Due to cost dilution brought by economies of scale, net profit growth was higher than revenue growth.
- The risk of relying on a single category hasn’t been eliminated. Traditional advantages of offline channels are becoming saturated. There is a gap between channel structure and new consumer forces
- Eastroc’s valuation is expected to be higher than the industry average and peers due to its higher growth rate, but investors needs to consider the H/A premium
China Northern Rare Earth (Ticker: 600111.SH): Dominant Force Riding REE Upswing
- CNRE posted a 727% YoY net profit surge in Q1 2025, driven by rising PrNd prices and strong volume growth, earnings momentum could continue amid recovering demand and operational leverage.
- With exclusive access to the Bayan Obo mine—holding the world’s largest REE reserves—CNRE commands a near-monopoly in China’s rare earth supply chain.
- Its dominant 70% share of national separation quotas ensures structural pricing power and long-term resource security.
SDA: SunCar reports 1st quarter 2025 financial and operating results which showed strong revenue growth. The company continues to secure multiple partnerships and business agreements.
- SunCar Technology Group ((NASDAQ: SDA) is a leading Chinese cloud-based provider of digital enterprise auto services and auto eInsurance services in China.
- The company offers one-stop, fully digital, on-demand automotive service systems to help enterprise clients build up their customer base and serve their end customers (auto owners).
- The company has grown revenues rapidly in recent years, which we expect to continue in the near-to-midterm.
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