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

Alibaba Group Holding  / Equity Bottom-Up

<ul>
<li>Alibaba Pictures’ revenue increased by 44% YoY and EBTIDA increased by 61% in the March quarter.</li>
<li>Cainiao, Alibaba’s logistics network, plans to purchase fresh food from the places of origin.</li>
<li>Li Auto finished a round of layoff, in which headcount was reduced to 22,000 from 30,000.</li>
</ul>


Alibaba Pictures’ revenue increased by 44% YoY and EBTIDA increased by 61% in the March quarter.
Cainiao, Alibaba’s logistics network, plans to purchase fresh food from the places of origin.
Li Auto finished a round of layoff, in which headcount was reduced to 22,000 from 30,000.


China Consumption Weekly (3 Jun 2024): Alibaba, Alibaba Pictures, Li Auto, JD.com, JD Health

Analyst

Steve Zhou, CFA

Equity Capital Markets

Alibaba Group Holding  / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd-d7b798e2-202d-4e01-9a1e-799e2ae8f0c7" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group Holding (9988 HK)</a> and <a href="https://www.smartkarma.com/entities/jd-com-inc" target="_blank" data-smartkarma-citation="entities:29043:1" rel="noopener">JD.com (9618 HK)</a> both announced the issuance of convertible debt last week (Alibaba on May 23 and JD.com on May 21). </li>
<li>Both have mentioned that the reasons for the issuance are the low funding cost (0.25% coupon for JD.com and 0.5% for Alibaba) and to fund their current share repurchase program. </li>
<li>I think the convertible debt structures makes sense and it is beneficial for both companies to buy back as much as possible at the current share price.</li>
</ul>



Alibaba Group Holding (9988 HK) and JD.com (9618 HK) both announced the issuance of convertible debt last week (Alibaba on May 23 and JD.com on May 21). 
Both have mentioned that the reasons for the issuance are the low funding cost (0.25% coupon for JD.com and 0.5% for Alibaba) and to fund their current share repurchase program. 
I think the convertible debt structures makes sense and it is beneficial for both companies to buy back as much as possible at the current share price.


Alibaba/JD.com:  Thoughts On The Recent Convertible Bond Issuance

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>Alibaba Group’s March Quarter and Full Fiscal Year 2024 results show that major segments such as the Taobao and Tmall Group, Alibaba International Digital Commerce, and core public cloud offerings are experiencing growth.</li><li>The Taobao and Tmall Group achieved double-digit year-over year growth, while Alibaba International Digital Commerce revenue increased by 45%.</li><li>Moreover, AI related revenue increased triple digit year-over-year, demonstrating the potential of AI technology in fueling the company’s growth.</li></ul>

Alibaba Group’s March Quarter and Full Fiscal Year 2024 results show that major segments such as the Taobao and Tmall Group, Alibaba International Digital Commerce, and core public cloud offerings are experiencing growth.The Taobao and Tmall Group achieved double-digit year-over year growth, while Alibaba International Digital Commerce revenue increased by 45%.Moreover, AI related revenue increased triple digit year-over-year, demonstrating the potential of AI technology in fueling the company’s growth.

Alibaba Group: A Story Of Cross-Border E-commerce Scale-up! - Major Drivers

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Event-Driven

<ul>
<li>PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US listed China companies.</li>
<li>The Hong Kong visit was on the back of the 26th Aug 2022 announcement by PCAOB and CSRC that they had entered into an agreement with US authorities for access.</li>
<li>In this note, we'll talk about the latest developments, possible outcomes and implications.</li>
</ul>


PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US listed China companies.
The Hong Kong visit was on the back of the 26th Aug 2022 announcement by PCAOB and CSRC that they had entered into an agreement with US authorities for access.
In this note, we'll talk about the latest developments, possible outcomes and implications.


China ADRs Delisting - Friday Could Be Judgment Day for over US$800bn Mcap of Stocks

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

Quantitative Analysis

<ul>
<li>We analyzed the latest HK SFC report for aggregate short position as of Aug 16th.</li>
<li>Top short increases and decreases were tabulated for one week and four week period. </li>
<li>We highlight short changes in Baba, Wuxi Bio, HSBC, Galaxy Ent, Link Reit.</li>
</ul>


We analyzed the latest HK SFC report for aggregate short position as of Aug 16th.
Top short increases and decreases were tabulated for one week and four week period. 
We highlight short changes in Baba, Wuxi Bio, HSBC, Galaxy Ent, Link Reit.


HK Short Interest Weekly: Baba, Wuxi Bio, HSBC, Galaxy Ent, Link Reit

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)

China Consumption Weekly (3 Jun 2024): Alibaba, Alibaba Pictures, Li Auto, JD.com, JD Health

Alibaba Pictures’ revenue increased by 44% YoY in the March quarter. Alibaba’s Cainiao plans to purchase fresh food from the places of origin. Li...

Ming Lu

Alibaba/JD.com: Thoughts On The Recent Convertible Bond Issuance

I think the convertible debt structures makes sense and it is beneficial for both companies to buy back as much as possible at the current share...

Steve Zhou, CFA

Alibaba Group: A Story Of Cross-Border E-commerce Scale-up! - Major Drivers

Alibaba Group’s March Quarter and Full Fiscal Year 2024 results show that major segments such as the Taobao and Tmall Group, Alibaba International...

Baptista Research

China ADRs Delisting - Friday Could Be Judgment Day for over US$800bn Mcap of Stocks

PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US...

Sumeet Singh

HK Short Interest Weekly: Baba, Wuxi Bio, HSBC, Galaxy Ent, Link Reit

We analyzed the latest HK SFC report for aggregate short position as of Aug 16th and highlight short interest changes in Baba, Wuxi Bio, HSBC,...

Ke Yan, CFA, FRM

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52-week Range

Market Cap (USDm)

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