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>Li Auto's revenue increased by 271% YoY and vehicle deliveries increased by 296% YoY in 3Q23.</li>
<li>NIO will dismiss 10% of its employees and even 20% in some departments.</li>
<li>We do not believe Alibaba will take over the whole Best Inc.</li>
</ul>


Li Auto's revenue increased by 271% YoY and vehicle deliveries increased by 296% YoY in 3Q23.
NIO will dismiss 10% of its employees and even 20% in some departments.
We do not believe Alibaba will take over the whole Best Inc.


China Consumption Weekly (13Nov2023): Li Auto, NIO, Alibaba, Best, Meituan, KE

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>Wednesday will be a busy day as positions are put on and unwound following announcement of the changes to the MSC indices.</li>
<li>Friday will end the review cutoff for the ASX indices and Hang Seng Indexes will announce the December changes for the <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">HSI</a>, <a href="https://www.smartkarma.com/entities/hang-seng-china-enterprises-index" target="_blank" data-smartkarma-citation="entities:22900:1" rel="noopener">HSCEI</a>, <a href="https://www.smartkarma.com/entities/hang-seng-tech-index" target="_blank" data-smartkarma-citation="entities:31367:1" rel="noopener">HSTECH</a> and HSCI post market close.</li>
<li>Another week of large outflows for China focused ETFs with redemptions across all the major indices.</li>
</ul>


Wednesday will be a busy day as positions are put on and unwound following announcement of the changes to the MSC indices.
Friday will end the review cutoff for the ASX indices and Hang Seng Indexes will announce the December changes for the HSI, HSCEI, HSTECH and HSCI post market close.
Another week of large outflows for China focused ETFs with redemptions across all the major indices.


Index Rebalance & ETF Flow Recap: SSE50, Chinext/50, Renesas, Tencent, Amman Mineral

Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy 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>CPNG/BABA/PDD : Coupang sacrifices profitability for growth in 3Q23 (-/+/+)</li>
<li>LI/XPEV/NIO/TLSA1211.HK: Tesla raises prices for Model 3 + Model Y on November 9th (+)</li>
<li>ZLAB: ZLAB's Q3 revenue slightly lower than our estimates, R&amp;D compressed profits</li>
</ul>


CPNG/BABA/PDD : Coupang sacrifices profitability for growth in 3Q23 (-/+/+)
LI/XPEV/NIO/TLSA1211.HK: Tesla raises prices for Model 3 + Model Y on November 9th (+)
ZLAB: ZLAB's Q3 revenue slightly lower than our estimates, R&amp;D compressed profits


[Blue Lotus Daily]: LI/XPEV/NIO/TSLA/ATAT/HTHT/ZLAB/ACMR/CPNG/BABA/PDD/BEKE

<ul>
<li>KE Holdings’ (Beike) C3Q23 revenue was 7.7%/11.6% higher than our est./cons., non-GAAP net income beat our est./cons. by 35%/119%. Existing home sales and non-transaction biz drove the bottom line beat.</li>
<li>We expect Beike C4Q23 to grow 20% YoY, 33% in existing home and 5% in new home, supported by gradual recovery of home transaction and Beike’s market share gain;</li>
<li>We reiterate BUY rating and raised TP by US$0.5 to US$24.5/ADS, also taking into account of progress in home renovation and rental management.</li>
</ul>


KE Holdings’ (Beike) C3Q23 revenue was 7.7%/11.6% higher than our est./cons., non-GAAP net income beat our est./cons. by 35%/119%. Existing home sales and non-transaction biz drove the bottom line beat.
We expect Beike C4Q23 to grow 20% YoY, 33% in existing home and 5% in new home, supported by gradual recovery of home transaction and Beike’s market share gain;
We reiterate BUY rating and raised TP by US$0.5 to US$24.5/ADS, also taking into account of progress in home renovation and rental management.


[KE Holdings (BEKE US,BUY,TP US$24.5)TP Change]:Steady Recovery with Catalysts for Market Share Gain

Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet research

<ul>
<li>BABA/PDD/JD/ZTO/1519.HK/: Express parcel volume grew +20% YoY during first week of 11.11 Shopping (+)</li>
<li>BEKE: Property Update - Mild recovery for existing home sales in October and 1st week of November</li>
<li>XPEV: Xpeng, Huawei dispute over Autonomous Emergency Braking (AEB) (-)</li>
</ul>


BABA/PDD/JD/ZTO/1519.HK/: Express parcel volume grew +20% YoY during first week of 11.11 Shopping (+)
BEKE: Property Update - Mild recovery for existing home sales in October and 1st week of November
XPEV: Xpeng, Huawei dispute over Autonomous Emergency Braking (AEB) (-)


[Blue Lotus Daily]: BABA/PDD/JD/ZTO/BEKE/XPEV/NIO/LI/BGNE

China

KE Holdings Inc. operates as an integrated online and offline platform for housing transactions and services. The Company offers existing and new home sales, home rentals, home renovation, real estate financial solutions, and other services. KE Holdings conducts businesses in China.

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KE Holdings (BEKE US)

China Consumption Weekly (13Nov2023): Li Auto, NIO, Alibaba, Best, Meituan, KE

Li Auto, Revenue increased by 271% YoY and vehicle deliveries increased by 296% YoY in 3Q23. NIO will dismiss 10% of its employees. We do not...

Ming Lu

Index Rebalance & ETF Flow Recap: SSE50, Chinext/50, Renesas, Tencent, Amman Mineral

This recap highlights Insights covering Asian index rebalances (announcements/ forecasts/ IPO Fast Entry/ M&A driven changes). We also highlight...

Brian Freitas

[Blue Lotus Daily]: LI/XPEV/NIO/TSLA/ATAT/HTHT/ZLAB/ACMR/CPNG/BABA/PDD/BEKE

Coupang prioritizes growth over profitability, Tesla increases prices for Model 3 and Model Y, ZLAB's Q3 revenue falls short of estimates.

Blue Lotus Research Institute

[Blue Lotus Daily]: BABA/PDD/JD/ZTO/BEKE/XPEV/NIO/LI/BGNE

Daily news including JD.com, Alibaba, PDD Holdings, ZTO Express Cayman, J&T Global Express, KE Holdings, XPeng, and Li Auto.

Blue Lotus Research Institute

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China Consumption Weekly (13Nov2023): Li Auto, NIO, Alibaba, Best, Meituan, KE

Li Auto, Revenue increased by 271% YoY and vehicle deliveries increased by 296% YoY in 3Q23. NIO will dismiss 10% of its employees. We do not...

Ming Lu

Index Rebalance & ETF Flow Recap: SSE50, Chinext/50, Renesas, Tencent, Amman Mineral

This recap highlights Insights covering Asian index rebalances (announcements/ forecasts/ IPO Fast Entry/ M&A driven changes). We also highlight...

Brian Freitas

[Blue Lotus Daily]: LI/XPEV/NIO/TSLA/ATAT/HTHT/ZLAB/ACMR/CPNG/BABA/PDD/BEKE

​Coupang prioritizes growth over profitability, Tesla increases prices for Model 3 and Model Y, ZLAB's Q3 revenue falls short of estimates.

Blue Lotus Research Institute