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>China NEV market grew by 35% YoY in first ten months and by 39% YoY in October 2023.</li>
<li>BYD’s production is significantly larger than other NEV producers in China.</li>
<li>We believe the stock has an upside of 80% and a price target of HKD387. Buy.</li>
</ul>


China NEV market grew by 35% YoY in first ten months and by 39% YoY in October 2023.
BYD’s production is significantly larger than other NEV producers in China.
We believe the stock has an upside of 80% and a price target of HKD387. Buy.


BYD (1211 HK): Largest Producer in Dramatically Expanding Market

Consumer Analyst / Channel Surveillance Specialist, Trudence Capital Advisors

Pranav Bhavsar

Consumer Analyst / Channel Surveillance Specialist

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

<ul>
<li>We recently visited a <a href="https://www.smartkarma.com/entities/byd-co-ltd-h" target="_blank" data-smartkarma-citation="entities:20962:1" rel="noopener">BYD (1211 HK)</a>  showroom in Ahmedabad, with the objective of understanding the preference for Electric Vehicles in India.</li>
<li>Pitched as the "Tata" of China, BYD offers 2 models ATTO 3 and e6 in India. </li>
<li>Considering <a href="https://www.smartkarma.com/entities/tesla-inc" target="_blank" data-smartkarma-citation="entities:20279:1" rel="noopener">Tesla Motors (TSLA US)</a> India interest, and <a href="https://www.smartkarma.com/entities/mahindra-mahindra-ltd" target="_blank" data-smartkarma-citation="entities:16441:1" rel="noopener">Mahindra &amp; Mahindra (MM IN)</a> big bet on EV, BYD's current operations in India seem to be minuscule and may find little success.</li>
</ul>


We recently visited a BYD (1211 HK)  showroom in Ahmedabad, with the objective of understanding the preference for Electric Vehicles in India.
Pitched as the "Tata" of China, BYD offers 2 models ATTO 3 and e6 in India. 
Considering Tesla Motors (TSLA US) India interest, and Mahindra &amp; Mahindra (MM IN) big bet on EV, BYD's current operations in India seem to be minuscule and may find little success.


BYD (1211 HK) | Takeaways from India Showroom Visit | "Tata" Of China

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

<ul>
<li>
<a href="https://www.smartkarma.com/entities/tesla-inc" target="_blank" data-smartkarma-citation="entities:20279:1" rel="noopener">Tesla Motors (TSLA US)</a> market share in China has decreased and its 3Q23 operational data suggested it offered discounts to defend its market share. </li>
<li>Albeit losing some market share, <a href="https://www.smartkarma.com/entities/byd-co-ltd-h" target="_blank" data-smartkarma-citation="entities:20962:1" rel="noopener">BYD (1211 HK)</a> operational data is much more solid, even expanded its profit margin during a difficult environment in China. </li>
<li>Tesla share price has outpaced BYD's this year by 70%, it should reverse in the next year.</li>
</ul>



Tesla Motors (TSLA US) market share in China has decreased and its 3Q23 operational data suggested it offered discounts to defend its market share. 
Albeit losing some market share, BYD (1211 HK) operational data is much more solid, even expanded its profit margin during a difficult environment in China. 
Tesla share price has outpaced BYD's this year by 70%, it should reverse in the next year.


2024 High Conviction: Long BYD and Short Tesla

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>This is the somewhat-brand-spanking-new Quiddity Mainland Connect NORTHBOUND Monitor. We work off the same presentation as the A/H Premium Monitor and HK Connect SOUTHBOUND Monitor.</li>
<li>The same few names continue at the top of the gross flows list - Kweichow Moutai, Contemporary Amperex, Zhongji Innolight, etc, but the nets are changing (and Chongqing Changan)</li>
<li>Last week, NORTHBOUND were again net sellers (RMB -3.16bn), but Shanghai saw net buys. The top two flows were <a href="https://www.smartkarma.com/entities/chongqing-changan-automobi-b" target="_blank" data-smartkarma-citation="entities:13472:1" rel="noopener">Chongqing Changan Automobile Company (200625 CH)</a> to buy, BYD to sell.</li>
</ul>


This is the somewhat-brand-spanking-new Quiddity Mainland Connect NORTHBOUND Monitor. We work off the same presentation as the A/H Premium Monitor and HK Connect SOUTHBOUND Monitor.
The same few names continue at the top of the gross flows list - Kweichow Moutai, Contemporary Amperex, Zhongji Innolight, etc, but the nets are changing (and Chongqing Changan)
Last week, NORTHBOUND were again net sellers (RMB -3.16bn), but Shanghai saw net buys. The top two flows were Chongqing Changan Automobile Company (200625 CH) to buy, BYD to sell.


Mainland Connect NORTHBOUND Flows (To 24 Nov 23): Chongqing Changan (Bought) Vs BYD (Sold)

ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN Insight Provider

Cross Asset Strategy

<ul>
<li>Indonesia has been the recipient of significant investment flows for foreign investors with more of a "risk on" environment with a large portion flowing into Indonesian banks. </li>
<li>Indonesia stacks up from an investment perspective with a stable political environment, solid GDP growth of around 5% YoY, rising flows of FDI, and a more stable IDR.</li>
<li>Despite the JCI knocking on all-time highs, valuations continue to look attractive with prospects of a better 2H2024 and lower interest rates. Top picks: Banks, property, consumer, and selective elsewhere. </li>
</ul>


Indonesia has been the recipient of significant investment flows for foreign investors with more of a "risk on" environment with a large portion flowing into Indonesian banks. 
Indonesia stacks up from an investment perspective with a stable political environment, solid GDP growth of around 5% YoY, rising flows of FDI, and a more stable IDR.
Despite the JCI knocking on all-time highs, valuations continue to look attractive with prospects of a better 2H2024 and lower interest rates. Top picks: Banks, property, consumer, and selective elsewhere. 


Indonesia Strategy - Caught in a Perfect Updraft?

China

BYD Company Limited manufactures automotive products. The Company produces ordinary passenger cars, commercial vehicles, and other products. BYD also operates battery making, rail transportation construction, and other businesses.

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BYD (002594 CH)

BYD (1211 HK): Largest Producer in Dramatically Expanding Market

China NEV market grew by 35% YoY in first ten months. BYD’s production is significantly larger than other NEV producers. We believe the stock has...

Ming Lu

BYD (1211 HK) | Takeaways from India Showroom Visit | "Tata" Of China

BYD's presence in India's electric vehicle market may struggle to gain traction compared to Tesla and Mahindra & Mahindra due to its limited...

Pranav Bhavsar

2024 High Conviction: Long BYD and Short Tesla

Tesla operational data has started to crack, while BYD has gotten even better. With Tesla's share price outperformed BYD's this year by around 70%,...

Henry Soediarko

Mainland Connect NORTHBOUND Flows (To 24 Nov 23): Chongqing Changan (Bought) Vs BYD (Sold)

Mainland Connect (NORTHBOUND) flows continue to sell net selling. This week was RMB -3.16bn. The big buy this week was Chongqing Changan, the big...

Travis Lundy

Indonesia Strategy - Caught in a Perfect Updraft?

Despite the JCI knocking on all-time highs, valuations continue to look attractive with prospects of a better 2H2024 and lower interest rates. Top...

Angus Mackintosh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

BYD (1211 HK): Largest Producer in Dramatically Expanding Market

China NEV market grew by 35% YoY in first ten months. BYD’s production is significantly larger than other NEV producers. We believe the stock has...

Ming Lu

BYD (1211 HK) | Takeaways from India Showroom Visit | "Tata" Of China

​BYD's presence in India's electric vehicle market may struggle to gain traction compared to Tesla and Mahindra & Mahindra due to its limited...

Pranav Bhavsar

2024 High Conviction: Long BYD and Short Tesla

Tesla operational data has started to crack, while BYD has gotten even better. With Tesla's share price outperformed BYD's this year by around 70%,...

Henry Soediarko

Mainland Connect NORTHBOUND Flows (To 24 Nov 23): Chongqing Changan (Bought) Vs BYD (Sold)

Mainland Connect (NORTHBOUND) flows continue to sell net selling. This week was RMB -3.16bn. The big buy this week was Chongqing Changan, the big...

Travis Lundy

Indonesia Strategy - Caught in a Perfect Updraft?

Despite the JCI knocking on all-time highs, valuations continue to look attractive with prospects of a better 2H2024 and lower interest rates. Top...

Angus Mackintosh

BYD's presence in India's electric vehicle market may struggle to gain traction compared to Tesla and Mahindra & Mahindra due to its limited...