Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<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>-backed hypermarket play <a href="https://www.smartkarma.com/entities/sun-art-retail-group-ltd" target="_blank" data-smartkarma-citation="entities:401:1" rel="noopener">Sun Art Retail (6808)</a> is currently suspended pursuant to the Takeovers Code.</li>
<li>Reportedly, SASAC-backed COFCO Group may acquire Alibaba’s <a href="https://di.hkex.com.hk/di/NSForm2.aspx?fn=CS20210312E00462&amp;sa2=as&amp;sid=62065&amp;corpn=Sun+Art+Retail+Group+Ltd.&amp;sd=27%2f09%2f2023&amp;ed=27%2f09%2f2024&amp;cid=0&amp;sa1=cl&amp;scsd=27%2f09%2f2023&amp;sced=27%2f09%2f2024&amp;sc=6808&amp;src=MAIN&amp;lang=EN&amp;g_lang=en&amp;" target="_blank" rel="noopener">78.7% stake</a>. Sun Art's shares are up 45% since the middle of the month.</li>
<li>Alibaba exiting - if true - follows <a href="https://www.smartkarma.com/entities/jd-com-inc" target="_blank" data-smartkarma-citation="entities:29043:1" rel="noopener">JD.com (9618 HK)</a> (and <a href="https://www.smartkarma.com/entities/dfi-retail-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:7427:1" rel="noopener">DFI Retail Group Holdings (DFI SP)</a>) selling their respective stakes in <a href="https://www.smartkarma.com/entities/yonghui-superstores-co-ltd" target="_blank" data-smartkarma-citation="entities:15910:1" rel="noopener">Yonghui Superstores Co., (601933 CH)</a> earlier this week.</li>
</ul>



Alibaba Group Holding (9988 HK)-backed hypermarket play Sun Art Retail (6808) is currently suspended pursuant to the Takeovers Code.
Reportedly, SASAC-backed COFCO Group may acquire Alibaba’s 78.7% stake. Sun Art's shares are up 45% since the middle of the month.
Alibaba exiting - if true - follows JD.com (9618 HK) (and DFI Retail Group Holdings (DFI SP)) selling their respective stakes in Yonghui Superstores Co., (601933 CH) earlier this week.


Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

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 Capital Markets

China Resources Beverage / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/china-resources-beverage" target="_blank" data-smartkarma-citation="entities:41984:1" rel="noopener">China Resources Beverage</a> is looking to raise US$1bn in its upcoming Hong Kong IPO.</li>
<li>China Resources Beverage manufactures and sells packaged drinking water and RTD soft beverages in China.</li>
<li>In our earlier notes, we talked about the company’s past performance and undertook a peer comparison. In this note, we will look at valuations.</li>
</ul>



China Resources Beverage is looking to raise US$1bn in its upcoming Hong Kong IPO.
China Resources Beverage manufactures and sells packaged drinking water and RTD soft beverages in China.
In our earlier notes, we talked about the company’s past performance and undertook a peer comparison. In this note, we will look at valuations.


China Resources Beverage Pre-IPO - Thoughts on Valuation

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/1810 HK/BABA US:NRDC announces positive results for “old-for-new” trade-in during September (+)</li>
<li>BILI US:Bilibili's &lt;Three Kingdoms: MDTX&gt; Shows Robust Gross Billings Performance After Season 3 Update (+)</li>
<li>PDD US/BABA US/JD US: PDD reduces the minimum withdrawal threshold for funds (/)</li>
</ul>


JD US/1810 HK/BABA US:NRDC announces positive results for “old-for-new” trade-in during September (+)
BILI US:Bilibili's &lt;Three Kingdoms: MDTX&gt; Shows Robust Gross Billings Performance After Season 3 Update (+)
PDD US/BABA US/JD US: PDD reduces the minimum withdrawal threshold for funds (/)


[Blue Lotus Daily-TMT Update]:JD US/1810 HK/BABA/BILI/PDD/1519HK/ZTO /SE/700HK/BIDU/20HK/3690HK

<ul>
<li>Low-Cost retailer <a href="https://www.smartkarma.com/entities/miniso-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:36659:1" rel="noopener">MINISO (9896 HK)</a> has <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0923/2024092301478.pdf" target="_blank" rel="noopener">entered into SPAs to acquire a 29.4% stake</a> in supermarket chain <a href="https://www.smartkarma.com/entities/yonghui-superstores-co-ltd" target="_blank" data-smartkarma-citation="entities:15910:1" rel="noopener">Yonghui (601933 CH)</a> from <a href="https://www.smartkarma.com/entities/dfi-retail-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:7427:1" rel="noopener">DFI (DFI SP)</a> and two units of <a href="https://www.smartkarma.com/entities/jd-com-inc" target="_blank" data-smartkarma-citation="entities:29043:1" rel="noopener">JD.com (9618 HK)</a>. </li>
<li>Upon the completion of this US$890mn transaction, which is subject to regulatory and shareholder approvals, MINISO would become Yonghui's largest shareholder. And DFI would exit its entire stake.</li>
<li>Ye Guofu, MINISO's founder/chairman, views the transaction “<a href="https://thelowdown.momentum.asia/miniso-spends-us890-million-to-challenge-sams-club-in-china/" target="_blank" rel="noopener">With a brave heart, start a new world!</a>”. Yonghui has been spilling red ink since FY21. Perhaps "brave soul" is more apt.</li>
</ul>


Low-Cost retailer MINISO (9896 HK) has entered into SPAs to acquire a 29.4% stake in supermarket chain Yonghui (601933 CH) from DFI (DFI SP) and two units of JD.com (9618 HK). 
Upon the completion of this US$890mn transaction, which is subject to regulatory and shareholder approvals, MINISO would become Yonghui's largest shareholder. And DFI would exit its entire stake.
Ye Guofu, MINISO's founder/chairman, views the transaction “With a brave heart, start a new world!”. Yonghui has been spilling red ink since FY21. Perhaps "brave soul" is more apt.


DFI Exits Yonghui, MINISO Enters: Who Got The Short End Of The Stick?

Investment Research - Asia Consumer Sector, Investory

Devi Subhakesan

Investment Research - Asia Consumer Sector

ASIA CONSUMER: INSIGHTS AND INVESTMENT IDEAS

Investory

Investory is a Singapore-based boutique independent equity research firm founded in January 2017 with a primary focus on consumption themes across Asia-Pacific.

We aim to generate investible ideas based on consumption trends and outlook. We screen our ideas on several parameters - product potential, long-term growth and management commitment being the most critical.  We follow a fundamental analysis approach in our stock selection process and are not restricted by market cap.

We aspire to grow into a leading source of unbiased research, free of conflict of interest, for investors yearning for independent and disciplined analysis. 

We also undertake bespoke research mandates to support our Institutional clients’ investment needs.

Our team comprises of professionals with extensive experience in the Asian equity markets, in areas ranging from research, servicing institutional clients and investment management.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/miniso-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:36659:1" rel="noopener">MINISO</a>'s  acquisition of a 29.4% stake in the loss-making supermarket chain <a href="https://www.smartkarma.com/entities/yonghui-superstores-co-ltd" target="_blank" data-smartkarma-citation="entities:15910:1" rel="noopener">Yonghui</a>  for USD 890 million has been viewed negatively by investors, leading to a sharp decline in Miniso's stock.</li>
<li>The deal's size, combined with <a href="https://www.smartkarma.com/entities/yonghui-superstores-co-ltd" target="_blank" data-smartkarma-citation="entities:15910:1" rel="noopener">Yonghui Superstores (601933 CH)</a> unprofitable track record and   <a href="https://www.smartkarma.com/entities/miniso-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:36659:1" rel="noopener">MINISO(9896 HK)</a> 's unexpected move into the low-margin, highly competitive supermarket space, has likely fueled investor concerns.</li>
<li>However, we believe the acquisition provides Miniso with a strategic opportunity for growth and diversification to a sector that remains vital in the offline retail landscape at undemanding valuations.  </li>
</ul>



MINISO's  acquisition of a 29.4% stake in the loss-making supermarket chain Yonghui  for USD 890 million has been viewed negatively by investors, leading to a sharp decline in Miniso's stock.
The deal's size, combined with Yonghui Superstores (601933 CH) unprofitable track record and   MINISO(9896 HK) 's unexpected move into the low-margin, highly competitive supermarket space, has likely fueled investor concerns.
However, we believe the acquisition provides Miniso with a strategic opportunity for growth and diversification to a sector that remains vital in the offline retail landscape at undemanding valuations.  


MINISO Bets Big on Yonghui. Should Investors Be Concerned About the Acquisition?

China

JD.com Inc is an online direct sales company in China.  The Company offers a wide selection of products through its website and mobile applications.  JD.com sells appliances, computers, digital products, communication products, garments, books, and household items to consumers and vendors.

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JD.com Inc (ADR) (JD US)

Sun Art Retail (6808 HK): COFCO Offer?

Alibaba exiting - if true - follows JD.com (9618 HK) (and DFI Retail Group Holdings (DFI SP)) selling their respective stake in Yonghui Superstores...

David Blennerhassett

China Resources Beverage Pre-IPO - Thoughts on Valuation

China Resources Beverage has now filed its PHIP and will begin pre-marketing soon. We will have a look at its latest filing and revise our...

Sumeet Singh

[Blue Lotus Daily-TMT Update]:JD US/1810 HK/BABA/BILI/PDD/1519HK/ZTO /SE/700HK/BIDU/20HK/3690HK

NRDC reports successful "old-for-new" trade-in results, Bilibili's sees strong gross billings post update, PDD lowers minimum withdrawal...

Blue Lotus Research Institute

DFI Exits Yonghui, MINISO Enters: Who Got The Short End Of The Stick?

DFI doesn't appear too demanding here; but has already run up ~9% on the news. I 'd get involved on any weakness. JMH does look attractive here....

David Blennerhassett

MINISO Bets Big on Yonghui. Should Investors Be Concerned About the Acquisition?

Acquisition upsides worth considering - inexpensive valuation for a supermarket chain with turnaround potential, diversification to a segment that...

Devi Subhakesan

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Sun Art Retail (6808 HK): COFCO Offer?

Alibaba exiting - if true - follows JD.com (9618 HK) (and DFI Retail Group Holdings (DFI SP)) selling their respective stake in Yonghui Superstores...

David Blennerhassett

China Resources Beverage Pre-IPO - Thoughts on Valuation

China Resources Beverage has now filed its PHIP and will begin pre-marketing soon. We will have a look at its latest filing and revise our...

Sumeet Singh

[Blue Lotus Daily-TMT Update]:JD US/1810 HK/BABA/BILI/PDD/1519HK/ZTO /SE/700HK/BIDU/20HK/3690HK

​NRDC reports successful "old-for-new" trade-in results, Bilibili's sees strong gross billings post update, PDD lowers minimum withdrawal...

Blue Lotus Research Institute

DFI Exits Yonghui, MINISO Enters: Who Got The Short End Of The Stick?

DFI doesn't appear too demanding here; but has already run up ~9% on the news. I 'd get involved on any weakness. JMH does look attractive here....

David Blennerhassett

MINISO Bets Big on Yonghui. Should Investors Be Concerned About the Acquisition?

Acquisition upsides worth considering - inexpensive valuation for a supermarket chain with turnaround potential, diversification to a segment that...

Devi Subhakesan

NRDC reports successful "old-for-new" trade-in results, Bilibili's sees strong gross billings post update, PDD lowers minimum withdrawal...