Global Emerging Market Equities, Propitious Research

Wium Malan, CFA

Global Emerging Market Equities

Independent, Fundamental Quantitative Research

Propitious Research

Fully independent, fundamental and quantitative equity research, focused on companies in the Telecommunication, Media, Technology, Internet and Healthcare sectors in the Global Emerging Markets. Idea generation focused on Quality stocks, trading below their intrinsic Value, with sound Corporate Governance.

Equity Bottom-Up

<ul>
<li>The slowdown in Chinese retail sales of apparel seems to have been factored into <a href="https://www.smartkarma.com/entities/vipshop-holdings-ltd-adr" target="_blank" data-smartkarma-citation="entities:1088:1" rel="noopener">Vipshop Holdings (VIPS US)</a> 1Q 2024 revenue growth expectations whilst bottom-line is supported by margin expansion.</li>
<li>With net cash at ~40% of its market cap, the share price should be supported by the ongoing share repurchase program and its inaugural annual dividend policy.</li>
<li>Its 6.6x NTM PE ratio (~4x ex-cash) seems extremely attractive for a highly cash-generative business set to (conservatively) grow earnings at high-single-digits whilst buying back shares and paying dividends.</li>
</ul>


The slowdown in Chinese retail sales of apparel seems to have been factored into Vipshop Holdings (VIPS US) 1Q 2024 revenue growth expectations whilst bottom-line is supported by margin expansion.
With net cash at ~40% of its market cap, the share price should be supported by the ongoing share repurchase program and its inaugural annual dividend policy.
Its 6.6x NTM PE ratio (~4x ex-cash) seems extremely attractive for a highly cash-generative business set to (conservatively) grow earnings at high-single-digits whilst buying back shares and paying dividends.


Vipshop: Net Cash at 40% of Market Cap, Now Paying Dividends and Buying Back Shares

Equity Analyst, LightStream Research

Oshadhi Kumarasiri

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Alibaba Group Holding  / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba Group Holding (BABA US)</a>'s FQ4 announcement portrays a resilient comeback to growth, suggesting the past four years' challenges barely impacted its dominance in Chinese e-commerce.</li>
<li>However, a closer look beyond the surface of <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>'s FQ4 results announcement reveals that little has actually changed in recent months.</li>
<li>Taobao and Tmall face challenges in a tough, stagnant market; AIDC's growth largely covers for other Alibaba units' failings, while AliExpress's expansion cuts into margins.</li>
</ul>



Alibaba Group Holding (BABA US)'s FQ4 announcement portrays a resilient comeback to growth, suggesting the past four years' challenges barely impacted its dominance in Chinese e-commerce.
However, a closer look beyond the surface of Alibaba Group Holding (9988 HK)'s FQ4 results announcement reveals that little has actually changed in recent months.
Taobao and Tmall face challenges in a tough, stagnant market; AIDC's growth largely covers for other Alibaba units' failings, while AliExpress's expansion cuts into margins.


Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet research

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 US/DADA US/3690 HK:JD.com Upgrades "Hour Delivery" to "Instant Delivery", reflecting strong growth potential in the on-demand retail sector.(+)</li>
<li>700 HK: &lt;Honors of Fighters&gt; will be released on May 24th.(+)</li>
<li>ZTO US/1519 HK/PDD US/BABA US/Douyin: PDD launches new product price competitiveness rules (+/+/-/-/-)</li>
</ul>


JD US/DADA US/3690 HK:JD.com Upgrades "Hour Delivery" to "Instant Delivery", reflecting strong growth potential in the on-demand retail sector.(+)
700 HK: &lt;Honors of Fighters&gt; will be released on May 24th.(+)
ZTO US/1519 HK/PDD US/BABA US/Douyin: PDD launches new product price competitiveness rules (+/+/-/-/-)


[Blue Lotus Daily - TMT Update]:JD US/DADA US/3690 HK/700 HK/ZTO US/1519 HK/PDD US/BABA US/Douyin

Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy Research

<ul>
<li>We notice a pickup in consumer acceptance of instrashopping, as result of COVID-cultivated behavior. We notice similar business model worked outside of China (Coupang) for densely populated urban upper-middle-class customers;</li>
<li>Meituan's launch of membership is a wise step towards strengthening user stickiness and emphasizing transaction soundness over impulsive buying. Meituan's portfolio in food, dining, hotel &amp; travel offer unparalleled value;</li>
<li>We see Meituan's success in Hong Kong honed a replicable business model targeting single and low priced segment. Consolation on a global scale now seems a possibility.</li>
</ul>


We notice a pickup in consumer acceptance of instrashopping, as result of COVID-cultivated behavior. We notice similar business model worked outside of China (Coupang) for densely populated urban upper-middle-class customers;
Meituan's launch of membership is a wise step towards strengthening user stickiness and emphasizing transaction soundness over impulsive buying. Meituan's portfolio in food, dining, hotel &amp; travel offer unparalleled value;
We see Meituan's success in Hong Kong honed a replicable business model targeting single and low priced segment. Consolation on a global scale now seems a possibility.


Meituan (3690 HK): Out of the Woods and Light a Fire

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.

<ul>
<li>Customer management as the largest business began to increase compared to the past two stagnant quarters.</li>
<li>We believe margin will continue to decline as the company turned its focus to growth.</li>
<li>We conclude an upside of 41% for March 2025 based on peer companies’ P/S ratios.</li>
</ul>


Customer management as the largest business began to increase compared to the past two stagnant quarters.
We believe margin will continue to decline as the company turned its focus to growth.
We conclude an upside of 41% for March 2025 based on peer companies’ P/S ratios.


Alibaba (9988 HK): 4Q24, Main Business Began to Grow

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)

Vipshop: Net Cash at 40% of Market Cap, Now Paying Dividends and Buying Back Shares

In this insight, we analyse Vipshop’s growth outlook, referencing reported Chinese retail sales data, its margin progression, strong balance sheet,...

Wium Malan, CFA

Alibaba: Our Take on 4QFY24

Taobao and Tmall face challenges in a tough, stagnant market; AIDC's growth largely covers for other Alibaba units' failings, while AliExpress's...

Oshadhi Kumarasiri

[Blue Lotus Daily - TMT Update]:JD US/DADA US/3690 HK/700 HK/ZTO US/1519 HK/PDD US/BABA US/Douyin

JD.com upgrades "Hour Delivery" to "Instant Delivery" showing growth potential in on-demand retail; new game to release May 24th; PDD introduces...

Blue Lotus Research Institute

Meituan (3690 HK): Out of the Woods and Light a Fire

Meituan plans to launch a comprehensive membership program as it extends instrashopping from grocery to daily goods, positive for its profit...

Blue Lotus Research Institute

Alibaba (9988 HK): 4Q24, Main Business Began to Grow

Customer management as the largest business began to increase compared to the past two stagnant quarters. We believe margin will continue to...

Ming Lu

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Vipshop: Net Cash at 40% of Market Cap, Now Paying Dividends and Buying Back Shares

In this insight, we analyse Vipshop’s growth outlook, referencing reported Chinese retail sales data, its margin progression, strong balance sheet,...

Wium Malan, CFA

Alibaba: Our Take on 4QFY24

Taobao and Tmall face challenges in a tough, stagnant market; AIDC's growth largely covers for other Alibaba units' failings, while AliExpress's...

Oshadhi Kumarasiri

[Blue Lotus Daily - TMT Update]:JD US/DADA US/3690 HK/700 HK/ZTO US/1519 HK/PDD US/BABA US/Douyin

​JD.com upgrades "Hour Delivery" to "Instant Delivery" showing growth potential in on-demand retail; new game to release May 24th; PDD introduces...

Blue Lotus Research Institute

Meituan (3690 HK): Out of the Woods and Light a Fire

​Meituan plans to launch a comprehensive membership program as it extends instrashopping from grocery to daily goods, positive for its profit...

Blue Lotus Research Institute

Alibaba (9988 HK): 4Q24, Main Business Began to Grow

Customer management as the largest business began to increase compared to the past two stagnant quarters. We believe margin will continue to...

Ming Lu

JD.com upgrades "Hour Delivery" to "Instant Delivery" showing growth potential in on-demand retail; new game to release May 24th; PDD introduces...

Meituan plans to launch a comprehensive membership program as it extends instrashopping from grocery to daily goods, positive for its profit...