Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

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.

Equity Bottom-Up

<ul>
<li>Trip.com's domestic hotel bookings increased by 70% over pre-COVID 3Q19.</li>
<li>Xiaomi's revenue began to grow in 3Q23 after decreasing for five quarters.</li>
<li>China home appliance export surged in October, for example, fridge export amount growing by 42% YoY.</li>
</ul>


Trip.com's domestic hotel bookings increased by 70% over pre-COVID 3Q19.
Xiaomi's revenue began to grow in 3Q23 after decreasing for five quarters.
China home appliance export surged in October, for example, fridge export amount growing by 42% YoY.


China Consumption Weekly (27 Nov 2023): Trip.com, Xiaomi, IQiyi, Full Truck, Home Appliance Export

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.

<ul><li>Trip.com Group (TCOM) announced (21 Nov) 3Q23 results: net revenue was RMB13.7bn, up 99% YoY, in line with both our forecast and Bloomberg consensus expectation, and was 31% higher than 3Q19 level.</li><li>Non-GAAP operating income (OP) was RMB4.4bn, 6% better than our forecast, thanks to a better-than-expected GPM driven by better-than-expected operating leverage, and more efficient-than-expected sales and marketing spend.</li><li>Recovery of outbound travel business on QTD basis in 4Q23 is slightly slower than our previous expectation owing to the slower-than-expected recovery in international flights in the short term, while TCOM’s outbound travel business is on track to see full recovery in 2024 given that consumer demand remains healthy. </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.

Trip.com Group (TCOM) announced (21 Nov) 3Q23 results: net revenue was RMB13.7bn, up 99% YoY, in line with both our forecast and Bloomberg consensus expectation, and was 31% higher than 3Q19 level.Non-GAAP operating income (OP) was RMB4.4bn, 6% better than our forecast, thanks to a better-than-expected GPM driven by better-than-expected operating leverage, and more efficient-than-expected sales and marketing spend.Recovery of outbound travel business on QTD basis in 4Q23 is slightly slower than our previous expectation owing to the slower-than-expected recovery in international flights in the short term, while TCOM’s outbound travel business is on track to see full recovery in 2024 given that consumer demand remains healthy. 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.

Trip.com (TCOM US) – Release of Pent-Up Demand as Expected

Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Tracking Traffic

Focusing on Asian logistics, transportation, and travel companies

<ul>
<li>Trip.com reported strong Q3 earnings, reflecting 2023's ongoing tourism revival</li>
<li>Net Income beat expectations, and company made progress on expense control</li>
<li>But we don't see "game-changing" numbers in Trip.com's latest earnings release</li>
</ul>


Trip.com reported strong Q3 earnings, reflecting 2023's ongoing tourism revival
Net Income beat expectations, and company made progress on expense control
But we don't see "game-changing" numbers in Trip.com's latest earnings release


Trip.com Q3 Quick Take: Net Inc > Consensus | Progress on Expenses | But Not a Game-Changer

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>The accretion trade is going to plan as <a href="https://www.smartkarma.com/entities/prosus-nv" target="_blank" data-smartkarma-citation="entities:28104:1" rel="noopener">Prosus NV (PRX NA)</a> sells <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a>; and Prosus and Tencent both back their own shares.</li>
<li>Preceding my comments on Prosus/Tencent One are the current setup/unwind tables for Asia-Pacific Holdcos</li>
<li>These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.</li>
</ul>


The accretion trade is going to plan as Prosus NV (PRX NA) sells Tencent (700 HK); and Prosus and Tencent both back their own shares.
Preceding my comments on Prosus/Tencent One are the current setup/unwind tables for Asia-Pacific Holdcos
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.


StubWorld: Prosus Trading "Rich". And So It Should Be

<ul>
<li>September outbound tourism metrics plummeted, in some cases to levels seen in Q223</li>
<li>Domestic air travel demand also fell vs August; normal seasonal patterns are dominating</li>
<li>As recovery fizzles, travel shares languish, and we see few reasons for optimism, near-term</li>
</ul>


September outbound tourism metrics plummeted, in some cases to levels seen in Q223
Domestic air travel demand also fell vs August; normal seasonal patterns are dominating
As recovery fizzles, travel shares languish, and we see few reasons for optimism, near-term


Monthly Chinese Tourism Tracker | Tourism Recovery Derailed By Normal Seasonality | (October 2023)

China

Trip.com Group Ltd. provides online travel agency services. The Company offers mobile applications, hotel reservations, flight ticketing, package tours, corporate travel management, and train ticketing services.

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Trip.com (TCOM US)

China Consumption Weekly (27 Nov 2023): Trip.com, Xiaomi, IQiyi, Full Truck, Home Appliance Export

Trip.com’s domestic hotel bookings increased 70% over pre-COVID 3Q19. Xiaomi’s revenue began to grow in 3Q23 after decreasing for five quarters....

Ming Lu

Trip.com (TCOM US) – Release of Pent-Up Demand as Expected

Trip.com Group (TCOM) announced (21 Nov) 3Q23 results: net revenue was RMB13.7bn, up 99% YoY, in line with both our forecast and Bloomberg...

CMB International

Trip.com Q3 Quick Take: Net Inc > Consensus | Progress on Expenses | But Not a Game-Changer

Trip.com reported Q323 results that featured strong top-line growth, sharp Y/Y improvement in margins, and progress on cost control. But its Q323...

Tracking Traffic

StubWorld: Prosus Trading "Rich". And So It Should Be

For long-onlies, the trade is still to replace your Tencent with Prosus. For rel-value players, ~80% of the NAV portfolio is easily hedge-able.

David Blennerhassett

Monthly Chinese Tourism Tracker | Tourism Recovery Derailed By Normal Seasonality | (October 2023)

Outbound tourism activity in September declined vs August, in some cases down to levels seen in Q2. Domestic activity also disappointed, and we see...

Tracking Traffic

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