Analyst

Steve

Equity Bottom-Up

<ul>
<li>According to public news two days ago, COFCO Group is rumored to be a potential suitor for Alibaba’s 78% stake in <a href="https://www.smartkarma.com/entities/sun-art-retail-group-ltd" target="_blank" data-smartkarma-citation="entities:401:1" rel="noopener">Sun Art Retail (6808 HK)</a>. </li>
<li>Alibaba wants to eventually get rid of the Sun Art stake, especially after Alibaba’s management change in late 2023.  </li>
<li>Given limited downside, I believe it is worth a bet on the uncertain timeline but certain intention of the eventual divestiture of Sun Art by Alibaba.</li>
</ul>


According to public news two days ago, COFCO Group is rumored to be a potential suitor for Alibaba’s 78% stake in Sun Art Retail (6808 HK). 
Alibaba wants to eventually get rid of the Sun Art stake, especially after Alibaba’s management change in late 2023.  
Given limited downside, I believe it is worth a bet on the uncertain timeline but certain intention of the eventual divestiture of Sun Art by Alibaba.


Sun Art (6808 HK):  Potential Divestiture By Alibaba Worth A Bet

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Shanghai Electric Group Company / Equity Bottom-Up

<ul>
<li>Hong Kong Long-Only portfolio launched on October 1st with objective to generate alpha in the Hong Kong market.</li>
<li>Stocks are chosen from single stock insights as well as sector and weekly publications.</li>
<li>Positions will be adjusted once a month and the cash position will vary based on market conditions.</li>
</ul>


Hong Kong Long-Only portfolio launched on October 1st with objective to generate alpha in the Hong Kong market.
Stocks are chosen from single stock insights as well as sector and weekly publications.
Positions will be adjusted once a month and the cash position will vary based on market conditions.


Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Reuters this afternoon carried an <a href="https://www.reuters.com/markets/deals/exclusive-tencent-plans-divest-24-bln-meituan-stake-sources-2022-08-16/" target="_blank" rel="noopener">article</a> that <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> was seeking to divest "US$24bn" (17%) of $78bn market cap delivery company <a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a> by year-end to mollify domestic regulators.</li>
<li>Tencent would seek to launch a share sale within 2022 "if market conditions are favourable." Meituan shares tanked 9%, immediately.</li>
<li>The article suggests disposal via block sale (faster than negotiating with a private buyer), odd given Tencent's Q1 2022 experience with the JD.com unwind. But it leads to BIG flows.</li>
</ul>


Reuters this afternoon carried an article that Tencent (700 HK) was seeking to divest "US$24bn" (17%) of $78bn market cap delivery company Meituan (3690 HK) by year-end to mollify domestic regulators.
Tencent would seek to launch a share sale within 2022 "if market conditions are favourable." Meituan shares tanked 9%, immediately.
The article suggests disposal via block sale (faster than negotiating with a private buyer), odd given Tencent's Q1 2022 experience with the JD.com unwind. But it leads to BIG flows.


Tencent (700 HK) To Divest Meituan (3690 HK) - Impact and Index Implications

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.

Alibaba Group Holding  / Equity Bottom-Up

<ul>
<li>Total revenue grew slightly as we expected in our preview note.</li>
<li>The operating margin improved significantly, but this was due to the shrinks of non-cash items.</li>
<li>However, we believe Alibaba will benefit from the boycott against JD.com and the disposal of Sun Art.</li>
</ul>


Total revenue grew slightly as we expected in our preview note.
The operating margin improved significantly, but this was due to the shrinks of non-cash items.
However, we believe Alibaba will benefit from the boycott against JD.com and the disposal of Sun Art.


Alibaba (BABA US): 2Q25, Weak Quarter, But Waiting for Two Events to Benefit Top Line

<ul>
<li>There were many positive events, but we believe most effects will emerge after the September quarter.</li>
<li>We believe total revenue will grow by 6% and the operating margin will be stable for FY 2Q25.</li>
<li>We conclude an upside of 105% and a price target of US$200 for the end of March 2025.</li>
</ul>


There were many positive events, but we believe most effects will emerge after the September quarter.
We believe total revenue will grow by 6% and the operating margin will be stable for FY 2Q25.
We conclude an upside of 105% and a price target of US$200 for the end of March 2025.


Alibaba (BABA US) 2Q25 Earnings Preview: Many Events Happened, But to Boost Later Quarters

Hong Kong

Sun Art Retail Group Ltd. operates hypermarkets.  The Company retails food and offers amenities such as restaurants, automated teller machines, pharmacies and dry cleaners.

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Sun Art Retail (6808 HK)

Sun Art (6808 HK): Potential Divestiture By Alibaba Worth A Bet

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Steve

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David Mudd

Tencent (700 HK) To Divest Meituan (3690 HK) - Impact and Index Implications

Tencent is said to be looking at a $20bn block sale of its stake in Meituan (3690 HK) by year end. That's a big block. Maybe a repeat of JD.com?...

Travis Lundy

Alibaba (BABA US): 2Q25, Weak Quarter, But Waiting for Two Events to Benefit Top Line

Total revenue grew slightly and the margin improvement was due to the shrinks of non-cash items. However, we believe Alibaba will benefit from the...

Ming Lu

Alibaba (BABA US) 2Q25 Earnings Preview: Many Events Happened, But to Boost Later Quarters

There were many positive events, but we believe most effects will emerge after the September quarter. We believe total revenue will grow by 6% and...

Ming Lu

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