Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>Along with its fiscal 2024 results, <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 (9988 HK)</a> announced that they were preparing for their primary listing in Hong Kong and the conversion was expected to complete by August.</li>
<li>If the conversion is completed by the end of August, <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 (9988 HK)</a> could be added to Southbound Stock Connect in September and that could bring in significant flows.</li>
<li>We do not forecast any passive inflows due to the change with <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> capped at 8% of the <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">HSI</a>, <a href="https://www.smartkarma.com/entities/hang-seng-china-enterprises-index" target="_blank" data-smartkarma-citation="entities:22900:1" rel="noopener">HSCEI</a> and <a href="https://www.smartkarma.com/entities/hang-seng-tech-index" target="_blank" data-smartkarma-citation="entities:31367:1" rel="noopener">HSTECH</a> indices.</li>
</ul>


Along with its fiscal 2024 results, Alibaba (9988 HK) announced that they were preparing for their primary listing in Hong Kong and the conversion was expected to complete by August.
If the conversion is completed by the end of August, Alibaba (9988 HK) could be added to Southbound Stock Connect in September and that could bring in significant flows.
We do not forecast any passive inflows due to the change with Alibaba Group Holding (9988 HK) capped at 8% of the HSI, HSCEI and HSTECH indices.


Alibaba (9988 HK): Dual Primary Listing & Potential Southbound Flows

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 Bottom-Up

<ul>
<li>Giant Biogene was listed in Hong Kong IPO in 2022. It has done well since and is now trading 45% above its IPO price, but its still cheap.</li>
<li>GB is a leader in the bioactive ingredient-based professional skin treatment product industry in China.</li>
<li>In this note, we will talk about the company’s past performance and future prospects.</li>
</ul>


Giant Biogene was listed in Hong Kong IPO in 2022. It has done well since and is now trading 45% above its IPO price, but its still cheap.
GB is a leader in the bioactive ingredient-based professional skin treatment product industry in China.
In this note, we will talk about the company’s past performance and future prospects.


2024 High Conviction - Giant Biogene - Growth Rate Keeps Moving Higher

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

Alibaba Group Holding  / Equity Bottom-Up

<ul>
<li>The revenue growth rate rose to 14% in 1Q24, compared to the past four stagnant quarters.</li>
<li>All businesses continued to improve their margins, so that the general operating margin rose to 19% in 1Q24 versus 12% in 1Q23.</li>
<li>We believe the re-organization is successful and the stock price is overly impacted. Buy.</li>
</ul>


The revenue growth rate rose to 14% in 1Q24, compared to the past four stagnant quarters.
All businesses continued to improve their margins, so that the general operating margin rose to 19% in 1Q24 versus 12% in 1Q23.
We believe the re-organization is successful and the stock price is overly impacted. Buy.


Alibaba (9988 HK): 1Q24, Brilliant Result After Reorganization, 90% Upside

Greater China Equity Long/Short Analyst

Eric Chen

<ul>
<li>Alibaba reported a largely in-line December quarter as lower take rate and widened loss from international commerce businesses resulted in pressured bottom line.</li>
<li>The results also suggest a persisting pattern of China consumers trading down, which - along with the company’s ongoing internal overhaul – will continue to be headwind in 1H24.</li>
<li>That said, we see increase of US$25 billion share repurchase program and dividend policy to well support share price at current valuation. </li>
</ul>


Alibaba reported a largely in-line December quarter as lower take rate and widened loss from international commerce businesses resulted in pressured bottom line.
The results also suggest a persisting pattern of China consumers trading down, which - along with the company’s ongoing internal overhaul – will continue to be headwind in 1H24.
That said, we see increase of US$25 billion share repurchase program and dividend policy to well support share price at current valuation. 


Alibaba (BABA US): Upzised Share Repurchase to Support Share Price

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 reported 3QFY24 (March year-end) results: total revenue was RMB260.3bn, up 5% YoY, and non-GAAP net income for the quarter was RMB48.2bn, down 4% YoY, both largely inline with Bloomberg consensus.</li><li>Management remains committed to investment to drive top-line growth and market share gains for core businesses, as well as to continued loss reduction and exit of non-core business when market conditions improve.</li><li>Although business transition will likely take time, with an upsizing of the share repurchase program to US$35.3bn and guidance of at least 3% in annual reduction of total shares outstanding through Mar 2027, management’s determination in enhancing shareholder return remains firm. </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 reported 3QFY24 (March year-end) results: total revenue was RMB260.3bn, up 5% YoY, and non-GAAP net income for the quarter was RMB48.2bn, down 4% YoY, both largely inline with Bloomberg consensus.Management remains committed to investment to drive top-line growth and market share gains for core businesses, as well as to continued loss reduction and exit of non-core business when market conditions improve.Although business transition will likely take time, with an upsizing of the share repurchase program to US$35.3bn and guidance of at least 3% in annual reduction of total shares outstanding through Mar 2027, management’s determination in enhancing shareholder return remains firm. 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) - Enhancing Shareholder Return While Remaining Ambitious

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.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Alibaba Group Holding (9988 HK)

Alibaba (9988 HK): Dual Primary Listing & Potential Southbound Flows

Alibaba expect to convert to a Primary Listing on the HKEX by end August. That could mean inclusion in Southbound Stock Connect in September. With...

Brian Freitas

2024 High Conviction - Giant Biogene - Growth Rate Keeps Moving Higher

Giant Biogene was listed in Hong Kong IPO in 2022. It has done well since and is now trading 45% above its IPO price, but its still cheap.

Sumeet Singh

Alibaba (9988 HK): 1Q24, Brilliant Result After Reorganization, 90% Upside

The revenue growth rate rose to 14% in 1Q24, compared to the past four stagnant quarters. All businesses continued to improve their margins. We...

Ming Lu

Alibaba (BABA US) - Enhancing Shareholder Return While Remaining Ambitious

Alibaba reported 3QFY24 (March year-end) results: total revenue was RMB260.3bn, up 5% YoY, and non-GAAP net income for the quarter was RMB48.2bn,...

CMB International

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Alibaba (9988 HK): Dual Primary Listing & Potential Southbound Flows

Alibaba expect to convert to a Primary Listing on the HKEX by end August. That could mean inclusion in Southbound Stock Connect in September. With...

Brian Freitas

2024 High Conviction - Giant Biogene - Growth Rate Keeps Moving Higher

Giant Biogene was listed in Hong Kong IPO in 2022. It has done well since and is now trading 45% above its IPO price, but its still cheap.

Sumeet Singh

Alibaba (9988 HK): 1Q24, Brilliant Result After Reorganization, 90% Upside

The revenue growth rate rose to 14% in 1Q24, compared to the past four stagnant quarters. All businesses continued to improve their margins. We...

Ming Lu

Alibaba (BABA US): Upzised Share Repurchase to Support Share Price

While deflationary pressure continues to be headwind for Alibaba in the near term, we expect upsized share repurchase program and dividend policy...

Eric Chen

Alibaba (BABA US) - Enhancing Shareholder Return While Remaining Ambitious

Alibaba reported 3QFY24 (March year-end) results: total revenue was RMB260.3bn, up 5% YoY, and non-GAAP net income for the quarter was RMB48.2bn,...

CMB International