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 statistics on top repurchases over one week, one month, one quarter and one year periods ended on Dec 20th based on HKEx daily reports.</li>
<li>In the past 7 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), AIA (1299 HK), Anta Sports Products (2020 HK).</li>
<li>In the past 30 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), AIA (1299 HK), Kuaishou Technology (1024 HK).</li>
</ul>


We analyze statistics on top repurchases over one week, one month, one quarter and one year periods ended on Dec 20th based on HKEx daily reports.
In the past 7 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), AIA (1299 HK), Anta Sports Products (2020 HK).
In the past 30 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), AIA (1299 HK), Kuaishou Technology (1024 HK).


Hong Kong Buybacks Weekly (Dec 20th): Tencent, AIA, Anta Sports Products

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

Equity Bottom-Up

<ul>
<li>Kuaishou reported C1Q24 revenue, IFRS OP, and IFRS Net income inline, 58%, and 78% vs. our estimates; and inline, 67% and 86% vs. consensus</li>
<li>Company suggested contribution of Generative AI (GAI) to the growth of the advertising business to be substantial;</li>
<li>We reiterate our BUY rating and raised target price to HK$83, implying 17x PE in 2025.</li>
</ul>


Kuaishou reported C1Q24 revenue, IFRS OP, and IFRS Net income inline, 58%, and 78% vs. our estimates; and inline, 67% and 86% vs. consensus
Company suggested contribution of Generative AI (GAI) to the growth of the advertising business to be substantial;
We reiterate our BUY rating and raised target price to HK$83, implying 17x PE in 2025.


[Kuaishou (1024 HK, BUY, TP HK$83) Target Price Change]: Out-Performance in Off-Season Thanks to GAI

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>Kuaishou delivered another upbeat quarter, with topline/bottom line +17%/+10,348% YoY (1%/37% above consensus).</li><li>We expect such margin surprise with a HK$16bn new share repurchase program should help its rerating.</li><li>We reiterate our confidence on KS’s resilient growth and earnings upside, and expect a solid 2Q24E ahead. </li></ul><p><em>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.</em></p>

Kuaishou delivered another upbeat quarter, with topline/bottom line +17%/+10,348% YoY (1%/37% above consensus).We expect such margin surprise with a HK$16bn new share repurchase program should help its rerating.We reiterate our confidence on KS’s resilient growth and earnings upside, and expect a solid 2Q24E ahead. 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.

Kuaishou (1024 HK) - Bullish on Earnings Upside

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

<ul>
<li>In 1Q24, revenue grew by 17% YoY and e-commerce GMV grew by 28% YoY.</li>
<li>Both the operating margin and the operating profit reached historical highs in 1Q24.</li>
<li>We set an upside of 47% and the price target at HK$86.00. Buy.</li>
</ul>


In 1Q24, revenue grew by 17% YoY and e-commerce GMV grew by 28% YoY.
Both the operating margin and the operating profit reached historical highs in 1Q24.
We set an upside of 47% and the price target at HK$86.00. Buy.


KS / Kuaishou (1024 HK): 1Q24, Strong GMV and Historical High Op Margin Again

<ul>
<li>Kuaishou reported C4Q23 revenue, IFRS OP, and IFRS net income in line, 31%, and 51% vs.  our estimates; and in line, 43%, and 67% vs. consensus.</li>
<li>The significant profit beat was mainly due to the rich content supply on the platform that led to organic traffic influx, resulted in marketing costs reductions. </li>
<li>We raised our TP by HK$2 to HK$81, implies 20X PE, vs. current trading at 13X PE for 2025.</li>
</ul>


Kuaishou reported C4Q23 revenue, IFRS OP, and IFRS net income in line, 31%, and 51% vs.  our estimates; and in line, 43%, and 67% vs. consensus.
The significant profit beat was mainly due to the rich content supply on the platform that led to organic traffic influx, resulted in marketing costs reductions. 
We raised our TP by HK$2 to HK$81, implies 20X PE, vs. current trading at 13X PE for 2025.


[Kuaishou (1024 HK, BUY, TP HK$81) TP Change]: Prime Beneficiary of Playlet Induced Traffic

China

Kuaishou Technology operates as a content community and social platform. The Company helps users create, upload and watch short videos on mobile devices. Kuaishou Technology offers services worldwide.

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Kuaishou Technology (1024 HK)

Hong Kong Buybacks Weekly (Dec 20th): Tencent, AIA, Anta Sports Products

We analyzed the Hong Kong buyback data in the past week and highlight the top 3 companies that repurchased the most shares were Tencent (700 HK),...

Ke Yan, CFA, FRM

[Kuaishou (1024 HK, BUY, TP HK$83) Target Price Change]: Out-Performance in Off-Season Thanks to GAI

Kuaishou's strong revenue and income performance, driven by Generative AI, prompts analysts to reiterate BUY rating and raise target price to HK$83.

Blue Lotus Research Institute

Kuaishou (1024 HK) - Bullish on Earnings Upside

We expect such margin surprise with a HK$16bn new share repurchase program should help its rerating. We reiterate our confidence on KS’s resilient...

CMB International

KS / Kuaishou (1024 HK): 1Q24, Strong GMV and Historical High Op Margin Again

In 1Q24, revenue grew by 17% YoY and e-commerce GMV grew by 28% YoY. Both the operating margin and the operating profit reached historical highs in...

Ming Lu

[Kuaishou (1024 HK, BUY, TP HK$81) TP Change]: Prime Beneficiary of Playlet Induced Traffic

Kuaishou beats revenue and profit estimates in Q4 due to organic traffic growth and reduced marketing costs, leading to a raised price target of...

Blue Lotus Research Institute

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Hong Kong Buybacks Weekly (Dec 20th): Tencent, AIA, Anta Sports Products

We analyzed the Hong Kong buyback data in the past week and highlight the top 3 companies that repurchased the most shares were Tencent (700 HK),...

Ke Yan, CFA, FRM

[Kuaishou (1024 HK, BUY, TP HK$83) Target Price Change]: Out-Performance in Off-Season Thanks to GAI

​Kuaishou's strong revenue and income performance, driven by Generative AI, prompts analysts to reiterate BUY rating and raise target price to HK$83.

Blue Lotus Research Institute

Kuaishou (1024 HK) - Bullish on Earnings Upside

We expect such margin surprise with a HK$16bn new share repurchase program should help its rerating. We reiterate our confidence on KS’s resilient...

CMB International

KS / Kuaishou (1024 HK): 1Q24, Strong GMV and Historical High Op Margin Again

In 1Q24, revenue grew by 17% YoY and e-commerce GMV grew by 28% YoY. Both the operating margin and the operating profit reached historical highs in...

Ming Lu

[Kuaishou (1024 HK, BUY, TP HK$81) TP Change]: Prime Beneficiary of Playlet Induced Traffic

​Kuaishou beats revenue and profit estimates in Q4 due to organic traffic growth and reduced marketing costs, leading to a raised price target of...

Blue Lotus Research Institute

Kuaishou's strong revenue and income performance, driven by Generative AI, prompts analysts to reiterate BUY rating and raise target price to HK$83.

Kuaishou beats revenue and profit estimates in Q4 due to organic traffic growth and reduced marketing costs, leading to a raised price target of...