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 Ltd. manufactures exterior automobile body parts.  The Company produces structural body parts, decorative parts, and trim.  Minth supplies multinational automobile manufacturers operating in China.

<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 Holdings Limited offers educational services. The Company provides private universities operating services, education training services, and other services. China Education Group Holdings offers services in 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.