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>European Commission will impose provisional tariffs on imported Chinese battery electric vehicles.</li>
<li>Zeekr’s deliveries increased by 117% YoY in 1Q24 and by 112% YoY in the first five months of 2024.</li>
<li>Ant Group will pay RMB1 billion to sponsor content creators on AliPay.</li>
</ul>


European Commission will impose provisional tariffs on imported Chinese battery electric vehicles.
Zeekr’s deliveries increased by 117% YoY in 1Q24 and by 112% YoY in the first five months of 2024.
Ant Group will pay RMB1 billion to sponsor content creators on AliPay.


China Consumption Weekly (17 Jun 2024): BYD, Geely, Zeekr, Zhihu, China Literature, Tencent

<ul>
<li>The new energy vehicle producers’ ranks changed a lot in April.</li>
<li>GAC began to sell batteries to outside new energy vehicle producers.</li>
<li>Kuaishou’s GMV (Gross Merchandise Value) increased by 420% YoY during the Labor Day.</li>
</ul>


The new energy vehicle producers’ ranks changed a lot in April.
GAC began to sell batteries to outside new energy vehicle producers.
Kuaishou’s GMV (Gross Merchandise Value) increased by 420% YoY during the Labor Day.


China Consumption Weekly (13 May 2024): Guangzhou Auto, NIO, CALT, Kuaishou, Trip.com, Seres

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>The Quiddity Mainland Connect NORTHBOUND Monitor. Like the A/H Premium Monitor and HK Connect SOUTHBOUND Monitor. Lots of Flows/Position Tables and Charts with which to play.</li>
<li>Last week saw NORTHBOUND net BUY RMB 4.8bn of A-shares on high gross low net volume in the two days. NORTHBOUND bought Kweichow Moutai, banks, Haier Smarthome, etc.</li>
<li>HUGE week in H vs A (since the 30 April close). This may be colouring foreigner activity in As quite a bit. </li>
</ul>


The Quiddity Mainland Connect NORTHBOUND Monitor. Like the A/H Premium Monitor and HK Connect SOUTHBOUND Monitor. Lots of Flows/Position Tables and Charts with which to play.
Last week saw NORTHBOUND net BUY RMB 4.8bn of A-shares on high gross low net volume in the two days. NORTHBOUND bought Kweichow Moutai, banks, Haier Smarthome, etc.
HUGE week in H vs A (since the 30 April close). This may be colouring foreigner activity in As quite a bit. 


Mainland Connect NORTHBOUND Flows (To 10 May 2024): So-So Volumes, As Did Not Play Catchup

<ul>
<li>We believe revenue will grow by 44% in 2023 according to the sales volume and the price trend.</li>
<li>We believe net profit will increase by 100%, higher than the company’s estimate.</li>
<li>We conclude an upside of 54% and a price target of HK$304. Buy.</li>
</ul>


We believe revenue will grow by 44% in 2023 according to the sales volume and the price trend.
We believe net profit will increase by 100%, higher than the company’s estimate.
We conclude an upside of 54% and a price target of HK$304. Buy.


BYD (1211 HK) 2023 Earnings Preview: Strong Top Line and Bottom Line

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>Maintain BUY. Although BYD’s 1Q24 net profit of RMB 4.6bn missed our prior forecast on a massive R&amp;D spending of RMB10.6bn, we believe the automaker is still on track to achieve our FY24E net profit forecast of RMB33bn.</li><li>BYD’s 1Q24 GPM also underscored our prior argument that its price cuts in Feb 2024 could be largely absorbed by cost reduction from suppliers.</li><li>Nevertheless, we expect BYD to be more self-disciplined in SG&amp;A and R&amp;D expenses in the following quarters, should it put earnings at a higher priority.</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>

Maintain BUY. Although BYD’s 1Q24 net profit of RMB 4.6bn missed our prior forecast on a massive R&amp;D spending of RMB10.6bn, we believe the automaker is still on track to achieve our FY24E net profit forecast of RMB33bn.BYD’s 1Q24 GPM also underscored our prior argument that its price cuts in Feb 2024 could be largely absorbed by cost reduction from suppliers.Nevertheless, we expect BYD to be more self-disciplined in SG&amp;A and R&amp;D expenses in the following quarters, should it put earnings at a higher priority.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.

BYD (1211 HK) - Our FY24 Forecasts Still on Track Post 1Q24

China

BYD Company Limited, through its subsidiaries, manufactures and sells automobiles. The Company also researches, develops, manufactures and sells batteries, which are applied on mobile phones, cordless phones, power tools and other kinds of portable electronic devices.

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BYD (1211 HK)

China Consumption Weekly (17 Jun 2024): BYD, Geely, Zeekr, Zhihu, China Literature, Tencent

European Commission will impose tariffs on Chinese electric vehicles. Zeekr’s deliveries increased by 112% YoY from Jan to May. Ant Group will pay...

Ming Lu

China Consumption Weekly (13 May 2024): Guangzhou Auto, NIO, CALT, Kuaishou, Trip.com, Seres

The NEV producers’ ranks changed a lot in April. GAC began to sell batteries to outside new energy vehicle producers. Kuaishou’s GMV increased by...

Ming Lu

Mainland Connect NORTHBOUND Flows (To 10 May 2024): So-So Volumes, As Did Not Play Catchup

NORTHBOUND tried to rally flows to catch up to the HK move over the holiday and could not. After Monday, 3 of 4 days were outflows. Local investors...

Travis Lundy

BYD (1211 HK) 2023 Earnings Preview: Strong Top Line and Bottom Line

We believe revenue will grow by 44% in 2023 according to the sales volume and the price trend. We also believe net profit will increase by 100%,...

Ming Lu

BYD (1211 HK) - Our FY24 Forecasts Still on Track Post 1Q24

BYD’s 1Q24 GPM also underscored our prior argument that its price cuts in Feb 2024 could be largely absorbed by cost reduction from suppliers.

CMB International

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