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

Thematic (Sector/Industry)

<ul>
<li>The pricing trend is expected to experience higher sequential decline 1) parcel pricing is at a high point; 2) alleviated cost pressure; 3) delivery companies try to capture parcel volume. </li>
<li>The collaboration with PDD’s Temu could provide J&amp;T a source of international order volume. For its potential IPO, J&amp;T’s overseas operation gives more room of imagination than its domestic business.</li>
<li>We downgrade SFH to SELL with TP of RMB48 due to Fengwang’s unpromising outlook .Our top pick of the Logistics sector remains ZTO. We are a buyer to JD logistics.</li>
</ul>


The pricing trend is expected to experience higher sequential decline 1) parcel pricing is at a high point; 2) alleviated cost pressure; 3) delivery companies try to capture parcel volume. 
The collaboration with PDD’s Temu could provide J&amp;T a source of international order volume. For its potential IPO, J&amp;T’s overseas operation gives more room of imagination than its domestic business.
We downgrade SFH to SELL with TP of RMB48 due to Fengwang’s unpromising outlook .Our top pick of the Logistics sector remains ZTO. We are a buyer to JD logistics.


China Logistics Sector Update & Downgrade S.F. Holding (2352.CH) To SELL: Pricing Pressure in 1H

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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.

Quantitative Analysis

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of February 10th.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight flows for Meituan, Hong Kong Exchanges And Clearing, Industrial And Commercial Bank Of China, China Construction Bank, Kuaishou Technology, Tencent, Li Ning.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of February 10th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Meituan, Hong Kong Exchanges And Clearing, Industrial And Commercial Bank Of China, China Construction Bank, Kuaishou Technology, Tencent, Li Ning.


Hong Kong Connect Flows (Feb 10th): Meituan, HKEx, ICBC, CCB, Kuaishou, Tencent, Li Ning

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of February 3rd.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight flows for Meituan, Sensetime, Tencent, China Construction Bank, Hong Kong Exchanges And Clearing.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of February 3rd.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Meituan, Sensetime, Tencent, China Construction Bank, Hong Kong Exchanges And Clearing.


Hong Kong Connect Flows (Feb 3rd): Meituan, Sensetime, Tencent, CCB, HKEx

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hesai-group" target="_blank" data-smartkarma-citation="entities:36743:1" rel="noopener">Hesai Group (HSAI US)</a> is looking to raise at least US$100m in its upcoming US IPO.</li>
<li>HSAI is a manufacturer of three-dimensional light detection and ranging (Lidar) solutions. It has shipped over 103,000 Lidar units from 2017 to the end of 2022.</li>
<li>In this note, we will undertake a peer comparison with domestic and US-listed peers.</li>
</ul>



Hesai Group (HSAI US) is looking to raise at least US$100m in its upcoming US IPO.
HSAI is a manufacturer of three-dimensional light detection and ranging (Lidar) solutions. It has shipped over 103,000 Lidar units from 2017 to the end of 2022.
In this note, we will undertake a peer comparison with domestic and US-listed peers.


Hesai Group Pre-IPO -  Peer Comparison - Not Really the Largest, Globally or Locally

Equity Bottom-Up

<ul>
<li>We expect JDL (including Deppon) to report C4Q22 net revenue in line with cons., and non-IFRS net margin beat cons. by 0.5ppt. </li>
<li>We expect JDL’s top line to reaccelerate starting in C2Q23, supported by recovery of JD GMV, growing standalone delivery services, and returning demand for integrated supply chain services.</li>
<li>Increasing scale and improving operating efficiency in warehousing and transportation will contribute to JDL’s margin expansion. We upgrade JDL to BUY rating and raise TP to HK$ 21. </li>
</ul>


We expect JDL (including Deppon) to report C4Q22 net revenue in line with cons., and non-IFRS net margin beat cons. by 0.5ppt. 
We expect JDL’s top line to reaccelerate starting in C2Q23, supported by recovery of JD GMV, growing standalone delivery services, and returning demand for integrated supply chain services.
Increasing scale and improving operating efficiency in warehousing and transportation will contribute to JDL’s margin expansion. We upgrade JDL to BUY rating and raise TP to HK$ 21. 


JD Logistics(2618.HK) 4Q22 Preview: Topline Reacceleration Supported by Retail Recovery

China

JD Logistics, Inc. offers logistics services. The Company provides cargo transportation, cargo distribution, warehousing, and other services. JD Logistics is located in China.

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JD Logistics (2618 HK)

China Logistics Sector Update & Downgrade S.F. Holding (2352.CH) To SELL: Pricing Pressure in 1H

We downgrade S.F. Holding to SELL due to Fengwang’s unpromising outlook under competitive pricing environment. Our top pick of the Logistics sector...

Blue Lotus Research Institute

Hong Kong Connect Flows (Feb 10th): Meituan, HKEx, ICBC, CCB, Kuaishou, Tencent, Li Ning

We analyzed southbound Hong Kong connect flows in the past week and highlight flows for Meituan, HKEx, ICBC, CCB, Kuaishou Technology, Tencent, Li...

Ke Yan, CFA, FRM

Hong Kong Connect Flows (Feb 3rd): Meituan, Sensetime, Tencent, CCB, HKEx

We analyzed southbound Hong Kong connect flows in the past week and highlight flows for Meituan, Sensetime, Tencent, China Construction Bank, Hong...

Ke Yan, CFA, FRM

Hesai Group Pre-IPO - Peer Comparison - Not Really the Largest, Globally or Locally

Hesai Group (HSAI US) is looking to raise at least US$100m in its upcoming US IPO. In this note, we will undertake a peer comparison.

Sumeet Singh

JD Logistics(2618.HK) 4Q22 Preview: Topline Reacceleration Supported by Retail Recovery

Increasing scale and improving operating efficiency in warehousing and transportation willcontribute to JDL’s margin expansion. We upgrade JDL to...

Blue Lotus Research Institute

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