Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

China Merchants China Direct Investments / Event-Driven

<ul>
<li>Activist Argyle Street's approach to closed-end investment company <a href="https://www.smartkarma.com/entities/china-merchants-china-direct-investments" target="_blank" data-smartkarma-citation="entities:6862:1" rel="noopener">China Merchants China Direct Investments (133 HK)</a> (CMCDI) has a certain David Webb-like quality.</li>
<li>Apart from the deep value angle, the analysis of director Elizabeth Kan's potential conflict of interest is particularly insightful. Argle will vote against Kan's re-election at the 20th June AGM</li>
<li>Given this upcoming vote, as I've done with <a href="https://www.smartkarma.com/entities/giordano-international-ltd" target="_blank" data-smartkarma-citation="entities:13899:1" rel="noopener">Giordano (709 HK)</a> and <a href="https://www.smartkarma.com/entities/l-occitane-international-sa" target="_blank" data-smartkarma-citation="entities:6772:1" rel="noopener">L'Occitane (973 HK)</a> previously, it's useful to investigate the lesser-known shareholder register, a byproduct of investigative disclosure reports.</li>
</ul>


Activist Argyle Street's approach to closed-end investment company China Merchants China Direct Investments (133 HK) (CMCDI) has a certain David Webb-like quality.
Apart from the deep value angle, the analysis of director Elizabeth Kan's potential conflict of interest is particularly insightful. Argle will vote against Kan's re-election at the 20th June AGM
Given this upcoming vote, as I've done with Giordano (709 HK) and L'Occitane (973 HK) previously, it's useful to investigate the lesser-known shareholder register, a byproduct of investigative disclosure reports.


CMCDI (133 HK): AGM Outcome May Provide Another Leg-Up

Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

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.

Equity Bottom-Up

<ul>
<li>AI software company SenseTime’s share price dropped more than 50% over the last one week with the expiry of lock-up period as pre-investors of the company took some profits.  </li>
<li>The company was placed in an investment blacklist by the US government prior to the IPO which forced to launch the IPO without investors from the US.</li>
<li>The company also priced the IPO at the bottom of the price range and despite all of this, shares quickly went up to HK$8.20 from IPO price of US$3.85.</li>
</ul>


AI software company SenseTime’s share price dropped more than 50% over the last one week with the expiry of lock-up period as pre-investors of the company took some profits.  
The company was placed in an investment blacklist by the US government prior to the IPO which forced to launch the IPO without investors from the US.
The company also priced the IPO at the bottom of the price range and despite all of this, shares quickly went up to HK$8.20 from IPO price of US$3.85.


SenseTime: Shares Fall with Lock-Up Expiry; Further Downside with More Selling at the Next Expiry

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>NTES US: &lt;Naraka: Bladepoint&gt; PC Celebrates Third Anniversary with Several New Updates (+)</li>
<li>BIDU US: Baidu Netdisk Adds Vertical Screen Playback Feature to Accommodate Micro-Dramas (+)</li>
<li>AMZN US/BABA US: TikTok Shop to launch in Spain (-)</li>
</ul>


NTES US: &lt;Naraka: Bladepoint&gt; PC Celebrates Third Anniversary with Several New Updates (+)
BIDU US: Baidu Netdisk Adds Vertical Screen Playback Feature to Accommodate Micro-Dramas (+)
AMZN US/BABA US: TikTok Shop to launch in Spain (-)


[Blue Lotus Daily-TMT Update]:NTES US/BIDU US/AMZN US/BABA US/002230 SZ/9992 HK/1024 HK

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Equity Capital Markets

Shanghai Voicecomm Information Technology / Equity Capital Markets

Shanghai Voicecomm Information Technology

<ul>
<li>Shanghai Voicecomm Information Technology Co., an IT solution provider for enterprise-level users in China, plans to price its IPO by July 10, 2024 and raise ~HK$664M.</li>
<li>CICC is leading the offering in Hong Kong and the IPO is expected to be priced at HK$152.10 per H share, implying a market cap of ~HK$5.4B or ~$690M.</li>
<li>Cornerstone investors have agreed to acquire ~1.8M H shares, representing 41% of the offer shares or ~5% of the total outstanding shares.</li>
</ul>


Shanghai Voicecomm Information Technology Co., an IT solution provider for enterprise-level users in China, plans to price its IPO by July 10, 2024 and raise ~HK$664M.
CICC is leading the offering in Hong Kong and the IPO is expected to be priced at HK$152.10 per H share, implying a market cap of ~HK$5.4B or ~$690M.
Cornerstone investors have agreed to acquire ~1.8M H shares, representing 41% of the offer shares or ~5% of the total outstanding shares.


Shanghai Voicecomm IPO Preview: Superior Growth Profile and Collaboration With Baidu on ERNIE Bot

<ul>
<li>The recent news on <a href="https://www.smartkarma.com/entities/china-merchants-china-direct-investments" target="_blank" data-smartkarma-citation="entities:6862:1" rel="noopener">China Merchants China Direct Investments (133 HK)</a> was director Elizabeth Kan narrowly getting re-elected. Of interest, ISS recommended shareholders vote AGAINST. Glass Lewis was FOR re-election.</li>
<li>The key takeaway here is that the majority of the minorities want change. The next development may occur in the lead up to the management agreement renewal in November. </li>
<li>In addition, Argyle Street Management, CMSCI's key shareholder activist, is also requesting the company buy back 20% of shares outstanding at 90% of NAV. </li>
</ul>


The recent news on China Merchants China Direct Investments (133 HK) was director Elizabeth Kan narrowly getting re-elected. Of interest, ISS recommended shareholders vote AGAINST. Glass Lewis was FOR re-election.
The key takeaway here is that the majority of the minorities want change. The next development may occur in the lead up to the management agreement renewal in November. 
In addition, Argyle Street Management, CMSCI's key shareholder activist, is also requesting the company buy back 20% of shares outstanding at 90% of NAV. 


CMCDI (133 HK): Buybacks And Management Fees Into Focus

China

IFLYTEK Co., Ltd. specializes in speech intelligence and artificial intelligence technology.  The company also develops chip product, voice messaging software and e-government system integration software.

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IFlytek Co Ltd A (002230 CH)

CMCDI (133 HK): AGM Outcome May Provide Another Leg-Up

CMCDI is cheap. If small, illiquid names, with a activism angle are your thing, pick up shares here. Keep an eye on the AGM. If Kan is booted, this...

David Blennerhassett

SenseTime: Shares Fall with Lock-Up Expiry; Further Downside with More Selling at the Next Expiry

SenseTime’s share price dropped more than 50% over the last one week with the expiry of lock-up period. Some shareholders have agreed to extend...

Shifara Samsudeen, ACMA, CGMA

[Blue Lotus Daily-TMT Update]:NTES US/BIDU US/AMZN US/BABA US/002230 SZ/9992 HK/1024 HK

Celebrating third anniversary with updates, Baidu Netdisk adds vertical screen playback, TikTok Shop to launch in Spain.

Blue Lotus Research Institute

Shanghai Voicecomm IPO Preview: Superior Growth Profile and Collaboration With Baidu on ERNIE Bot

Shanghai Voicecomm Information Technology is going to complete its IPO in Hong Kong next week. The offering is attractively priced vs. peers and my...

Andrei Zakharov

CMCDI (133 HK): Buybacks And Management Fees Into Focus

CMCDI remains cheap. I think a buyback is a distinct possibility. And changes to the management agreement have to occur within the next few months.

David Blennerhassett

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

CMCDI (133 HK): AGM Outcome May Provide Another Leg-Up

CMCDI is cheap. If small, illiquid names, with a activism angle are your thing, pick up shares here. Keep an eye on the AGM. If Kan is booted, this...

David Blennerhassett

SenseTime: Shares Fall with Lock-Up Expiry; Further Downside with More Selling at the Next Expiry

SenseTime’s share price dropped more than 50% over the last one week with the expiry of lock-up period. Some shareholders have agreed to extend...

Shifara Samsudeen, ACMA, CGMA

[Blue Lotus Daily-TMT Update]:NTES US/BIDU US/AMZN US/BABA US/002230 SZ/9992 HK/1024 HK

​Celebrating third anniversary with updates, Baidu Netdisk adds vertical screen playback, TikTok Shop to launch in Spain.

Blue Lotus Research Institute

Shanghai Voicecomm IPO Preview: Superior Growth Profile and Collaboration With Baidu on ERNIE Bot

Shanghai Voicecomm Information Technology is going to complete its IPO in Hong Kong next week. The offering is attractively priced vs. peers and my...

Andrei Zakharov

CMCDI (133 HK): Buybacks And Management Fees Into Focus

CMCDI remains cheap. I think a buyback is a distinct possibility. And changes to the management agreement have to occur within the next few months.

David Blennerhassett

Celebrating third anniversary with updates, Baidu Netdisk adds vertical screen playback, TikTok Shop to launch in Spain.