Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy 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

Equity Bottom-Up

<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>The operating margin in 1Q24 reached the highest since 2Q16, as the gross margins of all businesses improved.</li>
<li>The growth rate of online advertising is high than our estimate, but the growth rate of FinTech is lower than our estimate.</li>
<li>We believe there is still an upside of 9% and the price target will be HK$415 for the end of 2024.</li>
</ul>


The operating margin in 1Q24 reached the highest since 2Q16, as the gross margins of all businesses improved.
The growth rate of online advertising is high than our estimate, but the growth rate of FinTech is lower than our estimate.
We believe there is still an upside of 9% and the price target will be HK$415 for the end of 2024.


Tencent (700 HK): 1Q24, Highest Margin in Seven Years

Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

<ul>
<li>The HSCEI serves as a benchmark to reflect the overall performance of the top 50 "Mainland China" securities listed in Hong Kong.</li>
<li>The index changes and indicative weights for the June 2024 index rebal event will be announced after market close on Friday 17th May 2024.</li>
<li>In this insight, we take a look at the potential index changes and our latest flow expectations.</li>
</ul>


The HSCEI serves as a benchmark to reflect the overall performance of the top 50 "Mainland China" securities listed in Hong Kong.
The index changes and indicative weights for the June 2024 index rebal event will be announced after market close on Friday 17th May 2024.
In this insight, we take a look at the potential index changes and our latest flow expectations.


Quiddity HSCEI Jun 24 Final Expectations: 2 Changes Likely; US$496mn One-Way Flow

APAC IPOs & Placements, Aequitas Research

Ethan Aw

APAC IPOs & Placements

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/tbo-tek" target="_blank" data-smartkarma-citation="entities:36284:1" rel="noopener">TBO Tek (0395045D IN)</a> raised around US$186m in its India IPO, after pricing the deal at the top end of the range at INR920/share.</li>
<li>TBO Tek is a global travel distribution platform. Its two-sided technology platform serves companies involved in the travel industry such as hotels, airlines, travel agencies and travel management companies.</li>
<li>We have looked at various aspects of the deal in our previous notes. In this note, we talk about demand and trading dynamics.</li>
</ul>



TBO Tek (0395045D IN) raised around US$186m in its India IPO, after pricing the deal at the top end of the range at INR920/share.
TBO Tek is a global travel distribution platform. Its two-sided technology platform serves companies involved in the travel industry such as hotels, airlines, travel agencies and travel management companies.
We have looked at various aspects of the deal in our previous notes. In this note, we talk about demand and trading dynamics.


TBO Tek IPO Trading - Has One of the Highest Subscription Rates so Far This Year

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

Zijin Mining Group Co Ltd H / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sensetime-group-inc" target="_blank" data-smartkarma-citation="entities:34319:1" rel="noopener">SenseTime Group (20 HK)</a> is a potential deletion in June while <a href="https://www.smartkarma.com/entities/zijin-mining-group-co-ltd-h" target="_blank" data-smartkarma-citation="entities:6358:1" rel="noopener">Zijin Mining Group Co Ltd H (2899 HK)</a> is a potential inclusion.</li>
<li>For yet another review, <a href="https://www.smartkarma.com/entities/beigene-ltd" target="_blank" data-smartkarma-citation="entities:27352:1" rel="noopener">BeiGene (6160 HK)</a> is a close add with the Velocity Test determining if the stock will be added to the index or not.</li>
<li>Estimated one-way turnover at the rebalance is 2.95% resulting in a one-way trade of HK$1.6bn. Official capping will be based off the close of trading on 4 June.</li>
</ul>



SenseTime Group (20 HK) is a potential deletion in June while Zijin Mining Group Co Ltd H (2899 HK) is a potential inclusion.
For yet another review, BeiGene (6160 HK) is a close add with the Velocity Test determining if the stock will be added to the index or not.
Estimated one-way turnover at the rebalance is 2.95% resulting in a one-way trade of HK$1.6bn. Official capping will be based off the close of trading on 4 June.


HSCEI Index Rebalance Preview: One Change or Two in June?

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)

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

Tencent (700 HK): 1Q24, Highest Margin in Seven Years

The operating margin in 1Q24 reached the highest since 2Q16, as the gross margins of all businesses improved. The growth rate of online advertising...

Ming Lu

Quiddity HSCEI Jun 24 Final Expectations: 2 Changes Likely; US$496mn One-Way Flow

SenseTime Group (20 HK) and Xinyi Solar Holdings (968 HK) are Expected DELs while Zijin Mining Group Co Ltd H (2899 HK) and PICC Property &...

Janaghan Jeyakumar, CFA

TBO Tek IPO Trading - Has One of the Highest Subscription Rates so Far This Year

TBO Tek (0395045D IN) raised around US$186m in its India IPO, after pricing the deal at the top end of the range at INR920/share.

Ethan Aw

HSCEI Index Rebalance Preview: One Change or Two in June?

Announcement is in 4 trading days. Among the potential deletes, SenseTime has soared while Xinyi Glass has dropped. Zijin Mining, Beigene and PICC...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

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

Tencent (700 HK): 1Q24, Highest Margin in Seven Years

The operating margin in 1Q24 reached the highest since 2Q16, as the gross margins of all businesses improved. The growth rate of online advertising...

Ming Lu

Quiddity HSCEI Jun 24 Final Expectations: 2 Changes Likely; US$496mn One-Way Flow

SenseTime Group (20 HK) and Xinyi Solar Holdings (968 HK) are Expected DELs while Zijin Mining Group Co Ltd H (2899 HK) and PICC Property &...

Janaghan Jeyakumar, CFA

TBO Tek IPO Trading - Has One of the Highest Subscription Rates so Far This Year

TBO Tek (0395045D IN) raised around US$186m in its India IPO, after pricing the deal at the top end of the range at INR920/share.

Ethan Aw

HSCEI Index Rebalance Preview: One Change or Two in June?

Announcement is in 4 trading days. Among the potential deletes, SenseTime has soared while Xinyi Glass has dropped. Zijin Mining, Beigene and PICC...

Brian Freitas

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