Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Tracking Traffic

Focusing on Asian logistics, transportation, and travel companies

Equity Bottom-Up

<ul>
<li>Chinese outbound travel demand continued its gradual recovery in April </li>
<li>Moderating domestic demand? It's not new, and outbound matters more </li>
<li>On a pullback to below US$50, we would again BUY Trip.com's ADRs</li>
</ul>


Chinese outbound travel demand continued its gradual recovery in April 
Moderating domestic demand? It's not new, and outbound matters more 
On a pullback to below US$50, we would again BUY Trip.com's ADRs


Monthly Chinese Tourism Tracker | Outbound Grinds Forward | Domestic Weakness Not New | (May 2024)

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

China International Capital Corporation / Event-Driven

<ul>
<li>The New/Better A-H Premium Tracker has tables, charts, measures galore to track A/H premium positioning, southbound and northbound positioning/volatility in pairs over time, etc.</li>
<li>SOUTHBOUND's buy streak was interrupted again this past week, but they still net bought, as did NORTHBOUND. HK stocks continued bouncing VERY hard. Hs outperformed As very strongly.</li>
<li>As had a chance to catch up. Did not. Liquid Hs outperformed their As by 4.8% from 30-April through 10-May. Wide premia narrowed more than narrow premia.</li>
</ul>


The New/Better A-H Premium Tracker has tables, charts, measures galore to track A/H premium positioning, southbound and northbound positioning/volatility in pairs over time, etc.
SOUTHBOUND's buy streak was interrupted again this past week, but they still net bought, as did NORTHBOUND. HK stocks continued bouncing VERY hard. Hs outperformed As very strongly.
As had a chance to catch up. Did not. Liquid Hs outperformed their As by 4.8% from 30-April through 10-May. Wide premia narrowed more than narrow premia.


A/H Premium Tracker (To 10 May 2024):  Excellent Quiddity Portfolio Gains as Hs Rally Huge Vs As

Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

News from Caixin

Cross Asset Strategy

<ul><li>Middle East / In Depth: Why Chinese PE and VC firms are chasing Middle East money</li><li>China-France /: China to further open up telecom, medical sectors to foreign investors, Xi says</li><li>Insurance /: Shanghai Insurance Exchange appoints new chief as ex-chair falls to probe</li></ul>

Middle East / In Depth: Why Chinese PE and VC firms are chasing Middle East moneyChina-France /: China to further open up telecom, medical sectors to foreign investors, Xi saysInsurance /: Shanghai Insurance Exchange appoints new chief as ex-chair falls to probe

CX Daily: Why Chinese PE and VC Firms Are Chasing Middle East Money 

<ul>
<li>Outbound continues to improve, March load factor matched pre-Covid level</li>
<li>Appears Chinese tourists are "spreading their wings", travelling farther afield</li>
<li>Trip.com has been best YTD performer in the space; can airlines catch up?</li>
</ul>


Outbound continues to improve, March load factor matched pre-Covid level
Appears Chinese tourists are "spreading their wings", travelling farther afield
Trip.com has been best YTD performer in the space; can airlines catch up?


Monthly Chinese Tourism Tracker | Outbound Recovery Continues, but Some Regional Destinations Lag

HK/China Equity Long-Short

Osbert Tang, CFA

<ul>
<li>Losses at <a href="https://www.smartkarma.com/entities/air-china-ltd-h" target="_blank" data-smartkarma-citation="entities:8239:1" rel="noopener">Air China Ltd (H) (753 HK)</a> narrowed by 42.8% YoY to Rmb1.67bn in 1Q24. If not for the exchange losses, it will be reduced to below Rmb1bn.</li>
<li>Higher jet fuel prices have dragged result despite record 1Q revenue. However, an 8.3pp YoY margin expansion and a 4% decline in unit costs indicated profitability is climbing. </li>
<li>Valuations are too depressed as the share price is still lacklustre but quarterly losses and gross margin have already trimmed from the troughs of Rmb10.5bn and -98%, respectively.</li>
</ul>


Losses at Air China Ltd (H) (753 HK) narrowed by 42.8% YoY to Rmb1.67bn in 1Q24. If not for the exchange losses, it will be reduced to below Rmb1bn.
Higher jet fuel prices have dragged result despite record 1Q revenue. However, an 8.3pp YoY margin expansion and a 4% decline in unit costs indicated profitability is climbing. 
Valuations are too depressed as the share price is still lacklustre but quarterly losses and gross margin have already trimmed from the troughs of Rmb10.5bn and -98%, respectively.


Air China (753 HK): Steering Back to the Right Lane

China

Air China Limited provides passenger, cargo, and airline-related services in China.  The Company is primarily based in Beijing and a major hub for domestic and international air transportation.  Air China's airline-related services include aircraft maintenance, repair, overhaul service, ground services, and in-flight catering services.

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Air China Ltd (H) (753 HK)

Monthly Chinese Tourism Tracker | Outbound Grinds Forward | Domestic Weakness Not New | (May 2024)

Outbound Chinese travel demand continued its recovery in April. Chinese travel-linked shares have pulled back over concerns about hotel and air...

Tracking Traffic

A/H Premium Tracker (To 10 May 2024): Excellent Quiddity Portfolio Gains as Hs Rally Huge Vs As

AH Premia narrowed significantly. As an average, they are down near 52wk lows, with most of the move having taken place in the last 3 weeks. Some...

Travis Lundy

CX Daily: Why Chinese PE and VC Firms Are Chasing Middle East Money

Middle East / In Depth: Why Chinese PE and VC firms are chasing Middle East money Chinese venture capital (VC) and private equity (PE) firms are...

Caixin Global

Monthly Chinese Tourism Tracker | Outbound Recovery Continues, but Some Regional Destinations Lag

The recovery in Chinese outbound tourism demand continued in March, but certain data suggest the pace of growth for some regional destinations is...

Tracking Traffic

Air China (753 HK): Steering Back to the Right Lane

Exchange losses, lower load, and higher jet fuel prices dragged 1Q24 despite record revenue. However, an 8.3pp YoY margin expansion and a 4% unit...

Osbert Tang, CFA

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