Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Douyu International Holdings / Event-Driven

<ul>
<li>In a particularly altruistic move, live-streaming game platform play <a href="https://www.smartkarma.com/entities/douyu-international-hold-adr" target="_blank" data-smartkarma-citation="entities:28045:1" rel="noopener">Douyu International Holdings (DOYU US)</a>  <a href="https://ir.douyu.com/2024-07-03-DouYu-International-Holdings-Limited-Announces-Special-Cash-Dividend" target="_blank" rel="noopener">announced</a> a special cash dividend of US$9.76/share, vs. a last price of US$12.59.</li>
<li>The cash outlay is roughly US$308mn, and Douyu had cash (as at 1Q24) of <a href="https://ir.douyu.com/2024-06-05-DouYu-International-Holdings-Limited-Reports-First-Quarter-2024-Unaudited-Financial-Results" target="_blank" rel="noopener">US$936.6mn</a>. And no debt.  Founder/chairman/CEO Shaojie Chen (17.2% shareholder) will pocket a tidy ~US$53mn.</li>
<li>An outlier; or should we expect more of the same for other cash-rich US-listed China plays?</li>
</ul>


In a particularly altruistic move, live-streaming game platform play Douyu International Holdings (DOYU US)  announced a special cash dividend of US$9.76/share, vs. a last price of US$12.59.
The cash outlay is roughly US$308mn, and Douyu had cash (as at 1Q24) of US$936.6mn. And no debt.  Founder/chairman/CEO Shaojie Chen (17.2% shareholder) will pocket a tidy ~US$53mn.
An outlier; or should we expect more of the same for other cash-rich US-listed China plays?


China/Asia TMT

Shawn Yang

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>JD reported CY2Q23 top-line 3% vs. our estimate and consensus, and non-GAAP net profit 7% and 13% vs. our estimate and consensus, respecti</li>
<li>Despite the benefit of positive external factors on demand, JDs 2Q GMV grew high-single digit, which may have been slightly lower than Taobao/Tmall.</li>
<li>We maintain SELL and our US$ 32 TP unchange .</li>
</ul>


JD reported CY2Q23 top-line 3% vs. our estimate and consensus, and non-GAAP net profit 7% and 13% vs. our estimate and consensus, respecti
Despite the benefit of positive external factors on demand, JDs 2Q GMV grew high-single digit, which may have been slightly lower than Taobao/Tmall.
We maintain SELL and our US$ 32 TP unchange .


[JD.com (JD US, SELL, TP US$32) Earnings Review]: Slowing 3C Sales Will Impact 2H, Maintain SELL

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 main business line, home appliance began to grow by two digits.</li>
<li>Logistics revenue continued to grow strongly by 51% YoY and can still break even.</li>
<li>The operating profit rose to RMB7.3 bn in 2Q23 versus RMB3.8 bn in 2Q22.</li>
</ul>


The main business line, home appliance began to grow by two digits.
Logistics revenue continued to grow strongly by 51% YoY and can still break even.
The operating profit rose to RMB7.3 bn in 2Q23 versus RMB3.8 bn in 2Q22.


JD (9618 HK): 2Q23, Main Business Began to Recover, Buy

Greater China Equity Long/Short Analyst

Eric Chen

<ul>
<li>JD reported 2Q results that were slightly better than the street expected.</li>
<li>But the set of results did little to alleviate our concerns about the structural challenges JD need to combat.</li>
<li>We still don’t think JD represents a viable investment case due to its lack of growth catalysts (vs. PDD) and attractive valuation (vs. Alibaba). We would stay on the sideline.</li>
</ul>


JD reported 2Q results that were slightly better than the street expected.
But the set of results did little to alleviate our concerns about the structural challenges JD need to combat.
We still don’t think JD represents a viable investment case due to its lack of growth catalysts (vs. PDD) and attractive valuation (vs. Alibaba). We would stay on the sideline.


Jindong (JD US): We Would Stay on the Sideline

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>JD.com (JD) reported (16 Aug) 2Q23 results: revenue was RMB287.9bn, up 7.6% YoY, 2.5/3.2% higher than our forecast/Bloomberg consensus.</li><li>Non-GAAP net income was RMB8.6bn, ahead of our estimates/consensus at RMB8.2/7.8bn, thanks to better-than-expected loss reduction for new businesses, and translated into a non-GAAP NPM of 3.0% (2Q22: 2.4%).</li><li>Despite the beat on overall margins, the 0.2pp miss on OPM of JD Retail (JDR) sparked concerns that its core business margin expansion trajectory could face fluctuations. </li></ul>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.

JD.com (JD) reported (16 Aug) 2Q23 results: revenue was RMB287.9bn, up 7.6% YoY, 2.5/3.2% higher than our forecast/Bloomberg consensus.Non-GAAP net income was RMB8.6bn, ahead of our estimates/consensus at RMB8.2/7.8bn, thanks to better-than-expected loss reduction for new businesses, and translated into a non-GAAP NPM of 3.0% (2Q22: 2.4%).Despite the beat on overall margins, the 0.2pp miss on OPM of JD Retail (JDR) sparked concerns that its core business margin expansion trajectory could face fluctuations. 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.

JD.com (JD US) – Grinding through growth strategy pains

China

Hainan Island Construction Co Ltd.  is a property development company. The Company also operates regional malls and hotels.

Guangzhou Friendship Group Co., Ltd operates supermarkets and department stores in Guangzhou, China.  The Company sells a variety of consumer products, including apparel, food and beverages, electronics, jewelry, cosmetics, and electric appliances.  Guangzhou Friendship also leases real estate properties.

Guangzhou Friendship Group Co, Ltd. (000987 CH)

Wangfujing Group Co., Ltd. owns and operates department stores in Beijing, Guangzhou, Chengdu, Wuhan, and other cities in China.  The Company also develops residential real estate.

Golden Eagle Retail Group Limited operates department stores in China. The Company's stores target mid-range and high-end market segments in China, and contain various functions and amenities such as dining, entertainment, beauty and personal care, cinemas, and preschool education in addition to their core function as an international department store.

Tianjin Quanye Bazaar (Group) Co., Ltd. owns and operates department stores and supermarkets, as well as sells general merchandise on a wholesale basis. Tianjin Quanye also provides storage and cargo delivery services, and invests in real estate and interior decoration businesses.

Xian International Medical Investment Co Ltd is principally engaged in the medical services industry.

Xian International Medical Invest (000516 CH)

Nanjing Xinjiekou Department Store Co. Ltd. operates department stores in Nanjing, Jiangsu.  Through its subsidiaries, the Company also develops real estate and manufactures pharmaceuticals.

Nanjing Xinjiekou Department S (600682 CH)

Beijing Urban-Rural Trade Centre Co. Ltd. operates department stores and supermarkets. The Company also provides food and entertainment services, as well as develops real estate.

Beijing Urban Rural Trade Centre Co. (600861 CH)

Chengdu Hongqi Chain Company Limited operates convenience stores chain. The Company's main products are food, alcoholic drinks and tobacco, and other daily necessities.

Chongqing Department Store Co., Ltd. operates retail stores in Chongqing.  The Company also operates a wholesale business.

Chongqing Department Store Co. (600729 CH)

Dollar General Corporation operates a chain of discount retail stores located primarily in the southern, southwestern, midwestern, and eastern United States. The Company offer a broad selection of merchandise, including consumable products such as food, paper and cleaning products, health, beauty, pet supplies, and non-consumables such as seasonal merchandise.

Trent Limited operates a chain of retail stores that sell fashion apparel, cosmetics, perfumery products and toiletry items. The Company sells apparel for men, women and children. Trent sells its cosmetics products under the "Westside" and "Trent" brand names.

Dollar Tree, Inc. operates a discount variety store chain in the United States. The Company sells an assortment of everyday general merchandise at the $1.00 price point.

Pan Pacific International Holdings Corporation operates discount stores which sell consumer electronics, daily necessities, groceries, watches, and sporting goods. The Company mostly operates small scale stores based in Tokyo.

Pan Pacific International Holdings (7532 JP)

Target Corporation operates general merchandise discount stores. The Company focuses on merchandising operations which includes general merchandise and food discount stores and a fully integrated online business. Target also offers credit to qualified applicants through its branded proprietary credit cards.

Naspers Limited operates in the technology industry. The Company invests in global internet companies across the world.

Next Plc conducts retailing, home shopping, and customer services management operations.  The Company's retail stores sell ladies wear, mens wear, childrens wear, and housewares.

Avenue Supermarts Ltd. (ASL) owns and operates hypermarkets and supermarkets. The Company offers products such as garments, footwears, toys and games, bed and bath linen, stationery, grocery, household, and electronic products. ASL operates throughout India.

Canadian Tire Corporation Limited is a family of businesses that includes a retail segment, a financial services division and CT REIT. The Company's retail business provides Canadians with products for life in Canada across its living, playing, fixing, automotive and seasonal categories. Canadian Tire Corporation's  retail products include casual, industrial and active wear.

Dollarama Inc. operates as an online marketplace. The Company offers cleaning, school, office, home, kitchen, food, health, beauty, hardware, electronics, toys, and pets products, as well as provides delivery services. Dollarama serves customers in Canada.

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 (9618 HK)

Screening For The Next Douyu (DOYU US)

In an altruistic move, Douyu announced a special dividend of US$9.76/share, vs. a last price of US$12.59. An outlier; or should we expect more of...

David Blennerhassett

[JD.com (JD US, SELL, TP US$32) Earnings Review]: Slowing 3C Sales Will Impact 2H, Maintain SELL

Despite the benefit of positive external factors on demand, JDs 2Q GMV grew high-single digit, which may have been slightly lower than Taobao/Tmall.

Blue Lotus Research Institute

JD (9618 HK): 2Q23, Main Business Began to Recover, Buy

The main business line, home appliance began to grow by two digits. Logistics revenue continued to grow strongly and can still break even. The...

Ming Lu

Jindong (JD US): We Would Stay on the Sideline

JD's better-than-consensus 2Q results did not convince us that it is a viable investment case at current valuation. We would stay on the sideline.

Eric Chen

JD.com (JD US) – Grinding through growth strategy pains

JD.com (JD) reported (16 Aug) 2Q23 results: revenue was RMB287.9bn, up 7.6% YoY, 2.5/3.2% higher than our forecast/Bloomberg consensus.

CMB International

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