Global Multi-Asset Investment Strategist, True Insights

Jeroen Blokland

Global Multi-Asset Investment Strategist

Build Well-Diversified Multi-Asset Portfolios

True Insights

Our research helps investors build well-diversified multi-asset portfolios and profit from market developments. In addition, our unique and proven Macro – Sentiment – Valuation (MSV) investment framework ensures a consistent flow of new investment opportunities. Together with our market views, these opportunities will be reflected in our live ETF-based Global Multi-Asset Portfolios.

Cross Asset Strategy

<ul>
<li>AI-Hyped US Equities are not off the hook. The US Leading Indicator dropped for the 13th consecutive month, taking the index further into recessionary territory.</li>
<li>The rally in Big Tech stocks hides that only just over one-third of NASDAQ stocks are trading above their 200-day moving average, the threshold between positive and negative future returns.</li>
<li>Singapore electronics exports were down a whopping 23.3% year-on-year in April, indicating a severe decline in global earnings-per-share numbers.</li>
</ul>


AI-Hyped US Equities are not off the hook. The US Leading Indicator dropped for the 13th consecutive month, taking the index further into recessionary territory.
The rally in Big Tech stocks hides that only just over one-third of NASDAQ stocks are trading above their 200-day moving average, the threshold between positive and negative future returns.
Singapore electronics exports were down a whopping 23.3% year-on-year in April, indicating a severe decline in global earnings-per-share numbers.


Weekly Market Monitor - Week 19 Macro Momentum Is Fading, but Market Momentum Is Building.

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

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 Capital Markets

<ul>
<li>Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.</li>
<li>On the IPO front, <a href="https://www.smartkarma.com/entities/jd-com-inc-adr" target="_blank" data-smartkarma-citation="entities:446:1" rel="noopener">JD.com Inc (ADR) (JD US)</a> and <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba (ADR) (BABA US)</a>'s spin-off's continue to draw interest.</li>
<li>The REIT were out in full force this week for placements as interest rates globally appear to be approaching their peak.</li>
</ul>


Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
On the IPO front, JD.com Inc (ADR) (JD US) and Alibaba (ADR) (BABA US)'s spin-off's continue to draw interest.
The REIT were out in full force this week for placements as interest rates globally appear to be approaching their peak.


ECM Weekly (21st May 2023) - Alibaba, Cainiao, Baba Cloud, Nexus, DXN, Growatt, Rakuten, JD Ind

China/Asia TMT

Shawn Yang

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Equity Bottom-Up

Alibaba Group Holding  / Equity Bottom-Up

<ul>
<li>BABA reported 1Q23 revenue/non-GAAP net income in-line/17.7% vs. cons. International commerce and local services revenues beat our est., while Cloud missed.</li>
<li>We expect there is still room for margin improvement in FY24. Although Taobao/Tmall will increase spending, the cost savings of other business groups will lead to an overall improvement; </li>
<li>We maintain BUY and US$ 109 TP as (1) Douyin’s impact is becoming less significant; (2) International business is growing quickly; and (3) Positive on the effect of separate listing.  </li>
</ul>


BABA reported 1Q23 revenue/non-GAAP net income in-line/17.7% vs. cons. International commerce and local services revenues beat our est., while Cloud missed.
We expect there is still room for margin improvement in FY24. Although Taobao/Tmall will increase spending, the cost savings of other business groups will lead to an overall improvement; 
We maintain BUY and US$ 109 TP as (1) Douyin’s impact is becoming less significant; (2) International business is growing quickly; and (3) Positive on the effect of separate listing.  


[Alibaba (BABA US, BUY, TP US$109) Earnings Review]: Taobao Growth to Return on Douyin Slow-Down

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>Alibaba announced (18 May) its 4QFY23 (March year-end) results: total revenue was RMB208.2bn, up 2% YoY, in line with our forecast and Bloomberg consensus.</li><li>Driven by sustained operating efficiency improvement across business lines, non-GAAP net income grew 30% YoY to RMB28.0bn, 9/14% ahead of our estimate/consensus.</li><li>For FY23, total revenue grew 2% YoY to RMB868.7bn, and non-GAAP net profit reached RMB143.9bn, flat YoY.</li></ul><p><em>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.</em></p>

Alibaba announced (18 May) its 4QFY23 (March year-end) results: total revenue was RMB208.2bn, up 2% YoY, in line with our forecast and Bloomberg consensus.Driven by sustained operating efficiency improvement across business lines, non-GAAP net income grew 30% YoY to RMB28.0bn, 9/14% ahead of our estimate/consensus.For FY23, total revenue grew 2% YoY to RMB868.7bn, and non-GAAP net profit reached RMB143.9bn, flat YoY.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.

Alibaba (BABA US) – In Progress to Enhance Shareholder Value

APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC IPOs & Placements

<ul>
<li>
<a href="https://www.smartkarma.com/entities/beijing-dmall-e-commerce-co-ltd" target="_blank" data-smartkarma-citation="entities:36623:1" rel="noopener">Dmall Inc (1751691D CH)</a> is looking to raise around US$200m in its upcoming Hong Kong IPO.</li>
<li>Dmall provides cloud-based, end-to-end SaaS platform purpose-built for the Chinese retail industry.</li>
<li>In this note, we will talk about the not so positive aspects of the deal.</li>
</ul>



Dmall Inc (1751691D CH) is looking to raise around US$200m in its upcoming Hong Kong IPO.
Dmall provides cloud-based, end-to-end SaaS platform purpose-built for the Chinese retail industry.
In this note, we will talk about the not so positive aspects of the deal.


Dmall Pre-IPO - The Negatives - Path to Profitability Remains Murky and Related Party Sales an Issue

China

Alibaba Group Holding Limited provides online sales services. The Company provides internet infrastructure, electronic commerce, online financial, and internet content services through its subsidiaries. Alibaba Group Holding offers its products and services worldwide.

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Alibaba Group Holding (BABA US)

Weekly Market Monitor - Week 19 Macro Momentum Is Fading, but Market Momentum Is Building.

Macro Momentum is fading, but market Momentum is building. Even though the outlook for Equities is challenging, markets couldn't care less currently.

Jeroen Blokland

ECM Weekly (21st May 2023) - Alibaba, Cainiao, Baba Cloud, Nexus, DXN, Growatt, Rakuten, JD Ind

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.

Sumeet Singh

[Alibaba (BABA US, BUY, TP US$109) Earnings Review]: Taobao Growth to Return on Douyin Slow-Down

We maintain BUY and US$ 109 TP as (1) Douyin’s impact is becoming less significant; (2) International business is growing quickly; and (3) Positive...

Blue Lotus Research Institute

Alibaba (BABA US) – In Progress to Enhance Shareholder Value

Alibaba announced (18 May) its 4QFY23 (March year-end) results: total revenue was RMB208.2bn, up 2% YoY, in line with our forecast and Bloomberg...

CMB International

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Weekly Market Monitor - Week 19 Macro Momentum Is Fading, but Market Momentum Is Building.

Macro Momentum is fading, but market Momentum is building. Even though the outlook for Equities is challenging, markets couldn't care less currently.

Jeroen Blokland

ECM Weekly (21st May 2023) - Alibaba, Cainiao, Baba Cloud, Nexus, DXN, Growatt, Rakuten, JD Ind

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.

Sumeet Singh

[Alibaba (BABA US, BUY, TP US$109) Earnings Review]: Taobao Growth to Return on Douyin Slow-Down

We maintain BUY and US$ 109 TP as (1) Douyin’s impact is becoming less significant; (2) International business is growing quickly; and (3) Positive...

Blue Lotus Research Institute

Alibaba (BABA US) – In Progress to Enhance Shareholder Value

Alibaba announced (18 May) its 4QFY23 (March year-end) results: total revenue was RMB208.2bn, up 2% YoY, in line with our forecast and Bloomberg...

CMB International

Dmall Pre-IPO - The Negatives - Path to Profitability Remains Murky and Related Party Sales an Issue

Dmall Inc (1751691D CH) is looking to raise around US$200m in its upcoming Hong Kong IPO. In this note, we will talk about the not so positive...

Clarence Chu