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>Tencent authorized video editing right to Douyin, one of its main competitors.</li>
<li>Some of Bilibili’s video uploaders cannot survive the hard time.</li>
<li>Both Alibaba and Baidu launched their ChatGPT-like apps, but Baidu's app was .</li>
</ul>


Tencent authorized video editing right to Douyin, one of its main competitors.
Some of Bilibili’s video uploaders cannot survive the hard time.
Both Alibaba and Baidu launched their ChatGPT-like apps, but Baidu's app was .


China Internet Weekly (10Apr2023): Tencent, Douyin, Bilibili, Alibaba, Baidu, World Perfect

APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC IPOs & Placements

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>While sentiment took a hit as <a href="https://www.smartkarma.com/entities/trial-holdings-inc" target="_blank" data-smartkarma-citation="entities:36821:1" rel="noopener">Trial Holdings (5882 JP)</a>'s pulled its IPO, <a href="https://www.smartkarma.com/entities/rakuten-bank-ltd" target="_blank" data-smartkarma-citation="entities:35638:1" rel="noopener">Rakuten Bank (5838 JP) </a>cutting its price range leaves more upside on the table for investors.</li>
<li>
<a href="https://www.smartkarma.com/entities/merdeka-battery-materials" target="_blank" data-smartkarma-citation="entities:36864:1" rel="noopener">Merdeka Battery Materials (2012725D IJ)</a> concluded its US$586m IPO bookbuild in Indonesia, with decent upside waiting for the longer-term investor. </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.
While sentiment took a hit as Trial Holdings (5882 JP)'s pulled its IPO, Rakuten Bank (5838 JP) cutting its price range leaves more upside on the table for investors.

Merdeka Battery Materials (2012725D IJ) concluded its US$586m IPO bookbuild in Indonesia, with decent upside waiting for the longer-term investor. 


ECM Weekly (10th Apr 2023) - Rakuten Bank, Merdeka Battery, ZJLD, Socionext, Trial Holdings

<ul>
<li>
<a href="https://www.smartkarma.com/entities/zjld-group" target="_blank" data-smartkarma-citation="entities:36734:1" rel="noopener">ZJLD Group (ZJLD HK)</a> is looking to raise up to US$500m in its upcoming Hong Kong IPO.</li>
<li>ZJLD Group (ZJLD) is a Chinese liquor company primarily producing baijiu.</li>
<li>In this note, we discuss our earnings assumptions and share our thoughts on ZJLD’s valuation.</li>
</ul>



ZJLD Group (ZJLD HK) is looking to raise up to US$500m in its upcoming Hong Kong IPO.
ZJLD Group (ZJLD) is a Chinese liquor company primarily producing baijiu.
In this note, we discuss our earnings assumptions and share our thoughts on ZJLD’s valuation.


ZJLD Group Pre-IPO - Thoughts on Valuation

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

Thematic (Sector/Industry)

<ul>
<li>JD: Douyin new merchant services aims to improve eCommerce quality (-)</li>
<li>BABA/PDD: Taobao begins to roll out “99 Bargain” portal (-)</li>
<li>1024HK / 3690HK: Kuaishou resumes exploration of local services (+/-)</li>
</ul>


JD: Douyin new merchant services aims to improve eCommerce quality (-)
BABA/PDD: Taobao begins to roll out “99 Bargain” portal (-)
1024HK / 3690HK: Kuaishou resumes exploration of local services (+/-)


China TMT Update (Apr. 7) JD/Baba/PDD/1024HK/3690HK: Kuaishou Resumes Exploration of Local Services

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.

Alibaba Group Holding  / Equity Bottom-Up

<ul><li>Alibaba’s core China marketplace GMV is on stable recovery track, aided by discretionary consumption recovery, macro recovery, and Alibaba’s strategy to enhance value proposition for both customers and merchants.</li><li>With the unveiling of reorganization plan on 28 March, we expect overall business agility and innovative capabilities would be better propelled, and improving shareholder return.</li><li>Taking into consideration of China e-commerce market and key business segments outlook, we adjust our forecasts and SOTP derived target price accordingly to US$154.0 (prior US$155.5), mainly reflecting near term revenue growth headwind on direct sales business due to high-base effect. Maintain BUY.</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’s core China marketplace GMV is on stable recovery track, aided by discretionary consumption recovery, macro recovery, and Alibaba’s strategy to enhance value proposition for both customers and merchants.With the unveiling of reorganization plan on 28 March, we expect overall business agility and innovative capabilities would be better propelled, and improving shareholder return.Taking into consideration of China e-commerce market and key business segments outlook, we adjust our forecasts and SOTP derived target price accordingly to US$154.0 (prior US$155.5), mainly reflecting near term revenue growth headwind on direct sales business due to high-base effect. Maintain BUY.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) – A recovery year ahead with more to expect

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 (9988 HK)

China Internet Weekly (10Apr2023): Tencent, Douyin, Bilibili, Alibaba, Baidu, World Perfect

Tencent authorized video editing right to Douyin, one of its main competitors. Some of Bilibili’s video uploaders cannot survive the hard time....

Ming Lu

ECM Weekly (10th Apr 2023) - Rakuten Bank, Merdeka Battery, ZJLD, Socionext, Trial Holdings

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

Clarence Chu

ZJLD Group Pre-IPO - Thoughts on Valuation

ZJLD Group (ZJLD HK) is looking to raise up to US$500m in its upcoming Hong Kong IPO. In this note, we discuss our earnings assumptions and share...

Clarence Chu

China TMT Update (Apr. 7) JD/Baba/PDD/1024HK/3690HK: Kuaishou Resumes Exploration of Local Services

1024HK/3690HK: Kuaishou resumes exploration of local services (+/-); BABA/PDD: Taobao begins to roll out “99 Bargain” portal (-); JD: Douyin new...

Blue Lotus Research Institute

Alibaba (BABA US) – A recovery year ahead with more to expect

With the unveiling of reorganization plan on 28 March, we expect overall business agility and innovative capabilities would be better propelled,...

CMB International

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