Equity Analyst

Xin Yu, CFA

Equity Bottom-Up

Estun Automation Co., Ltd. develops and manufactures mechanical equipment. The Company focuses on metal forming and electro-hydraulic robotic machines. Estun operates in China.

<ul>
<li>MIR forecasts China’s industrial robot market growth to accelerate to ~12% y/y in 2023 and will sustain at double digit y/y for the next several years.</li>
<li>Management sees order growth back to normal in Mar and Apr. </li>
<li>Industrial robot sales volume is expected to increase to ~25K in 2023, growing by ~45% y/y. </li>
</ul>


MIR forecasts China’s industrial robot market growth to accelerate to ~12% y/y in 2023 and will sustain at double digit y/y for the next several years.
Management sees order growth back to normal in Mar and Apr. 
Industrial robot sales volume is expected to increase to ~25K in 2023, growing by ~45% y/y. 


Estun Is on Track of Achieving Its Sales Target

Minth Group is a global automotive parts manufacturer specializing in the design, development, and production of exterior and structural components for passenger cars, including aluminum battery cases, trims, and body structural parts. The company also develops components for intelligent exteriors and electric vehicle motor systems. Headquartered in Taipei City, Taiwan, Minth Group was founded in 1992.

<ul>
<li>Minth's stock price has been weak in the past year but its improving fundamentals started to reflect in the results in 2H22. </li>
<li>2023 revenue growth will be supported by the overseas auto market recovery and fast-growing battery housing business. </li>
<li>Minth's valuation is near historical low and is at a discount to its peers</li>
</ul>


Minth's stock price has been weak in the past year but its improving fundamentals started to reflect in the results in 2H22. 
2023 revenue growth will be supported by the overseas auto market recovery and fast-growing battery housing business. 
Minth's valuation is near historical low and is at a discount to its peers


Inner Mongolia Yili Industrial Group (A) / Equity Bottom-Up

Inner Mongolia Yili Industrial Group Co., Ltd. produces milk, powdered milk, ice cream, and other dairy products.  The Company also produces frozen food and noodles.

Inner Mongolia Yili Industrial Group (A) (600887 CH)

<ul>
<li>4Q22 result beat and 1Q23 result was roughly in line</li>
<li>Revenue growth to accelerate and margin to improve in 2023</li>
<li>Long-Term targets remain unchanged and the valuation becomes attractive now</li>
</ul>


4Q22 result beat and 1Q23 result was roughly in line
Revenue growth to accelerate and margin to improve in 2023
Long-Term targets remain unchanged and the valuation becomes attractive now


SANY Heavy Industry Co., Ltd manufactures and markets construction and engineering machinery and related parts. The Company produces and sells concrete pumps, concrete pump vehicles, road rollers, pavers, and other related products. Sany Heavy Industry markets its products worldwide.

<ul>
<li>China’s construction engineering industry declined more than expected in 2022</li>
<li>The industry may reach the inflection point by the end of 2023 or 1H24</li>
<li>Sany Heavy is expected to recover earlier than its peers</li>
</ul>


China’s construction engineering industry declined more than expected in 2022
The industry may reach the inflection point by the end of 2023 or 1H24
Sany Heavy is expected to recover earlier than its peers


China Education Group operates private higher and secondary vocational education institutions across Mainland China, Australia, and the UK. The company offers a range of programs including junior college diplomas, bachelor's and master's degrees, continuing education, and vocational training, alongside educational consultancy services. It was founded in 1989 and is headquartered in Central, Hong Kong.

<ul>
<li>China Education Group (CEG) completed the placement of HKD1.61bn on Jan 9.</li>
<li>CEG used to do 2-3 M&amp;As per year and had a decent track record.</li>
<li>CEG also has chances to acquire public companies or their assets.</li>
</ul>


China Education Group (CEG) completed the placement of HKD1.61bn on Jan 9.
CEG used to do 2-3 M&amp;As per year and had a decent track record.
CEG also has chances to acquire public companies or their assets.


China Education Group (CEG) Completed the Placement for Potential M&As

An equity research analyst with over 5 years of experience in multiple sectors. Previously worked for a global asset manager, covering China equities in multiple markets including A-shares/H-shares/ADRs and multiple sectors including TMT, industrial, consumer, etc. I conduct fundamental research to invest in high quality companies at an attractive valuation.

Xin Yu, CFA
Equity Analyst

Estun Is on Track of Achieving Its Sales Target

MIR forecasts China's IR industry growth to accelerate to ~12% y/y in 2023. Estun's management sees order growth back to normal in Mar and Apr.

Xin Yu, CFA

Minth: Buy

Minth's revenue will be driven by the fast-growing battery housing business and recovery of US and EU auto markets this year. Each segment's GM is...

Xin Yu, CFA

Yili: 4Q22 and 1Q23 Results - Buy

4Q22 result beat and 1Q23 result in line. Revenue growth to accelerate and margin to improve in 2023. Attractive valuation.

Xin Yu, CFA

Sany Heavy: Buy

China’s construction engineering industry declined more than expected in 2022. The industry may reach the inflection point by end of 2023 or 1H24.

Xin Yu, CFA

China Education Group (CEG) Completed the Placement for Potential M&As

China Education Group (CEG) completed the placement of HKD1.61bn on Jan 9. The purpose of the placement is for potential M&As deals, which signals...

Xin Yu, CFA