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.

Thematic (Sector/Industry)

<ul><li>In our last report dated 17 October, we highlighted a list of 21 long ideas.</li><li>The basket (equal weighted) of these 21 stocks underperformed MSCI China index by 5.4ppt, delivering 0.2% return (vs MSCI China 5.6%).</li><li>China Meidong Auto and Innovent Biologics delivered over 20% of return, and 4 of our 21 long ideas outperformed the benchmark.</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>

In our last report dated 17 October, we highlighted a list of 21 long ideas.The basket (equal weighted) of these 21 stocks underperformed MSCI China index by 5.4ppt, delivering 0.2% return (vs MSCI China 5.6%).China Meidong Auto and Innovent Biologics delivered over 20% of return, and 4 of our 21 long ideas outperformed the benchmark.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.

CMBI Research Focus List (November Edition) – Our best high conviction stock ideas

<ul><li>2022 “11.11” saw mild GMV recovery, with emphasis on “quality growth”, “agricultural incentives”, “domestics promotion”, “opening up” and “user experience”.</li><li>Total GMV recorded RMB1,151bn, +13% YoY, based on Syntun data.</li><li>Short videos share gain continued, up to 16% mkt share from 7% in 2021 (livestreaming ecommerce GMV+146% YoY, vs. comprehensive platforms +2.9%).</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>

2022 “11.11” saw mild GMV recovery, with emphasis on “quality growth”, “agricultural incentives”, “domestics promotion”, “opening up” and “user experience”.Total GMV recorded RMB1,151bn, +13% YoY, based on Syntun data.Short videos share gain continued, up to 16% mkt share from 7% in 2021 (livestreaming ecommerce GMV+146% YoY, vs. comprehensive platforms +2.9%).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.

China Internet Sector – 2022 "11.11": Moderate recovery with quality growth

Equity Bottom-Up

<ul><li>We on Kuaishou’s long-term share gain and margin improvement, despite ST ads headwinds.</li><li>3Q22 mixed, in which <span style="font-size: var(--content-font-size);">ecommerce &amp; livestreaming remained resilient but ads experienced slower </span><span style="font-size: var(--content-font-size);">recovery on epidemic resurgence. We expect better-than-feared margin in </span><span style="font-size: var(--content-font-size);">3Q22E for more disciplined S&amp;M. </span></li><li><span style="font-size: var(--content-font-size);">Domestic biz positive OP kept intact in 3Q22E. </span><span style="font-size: var(--content-font-size);">As majority of headwinds priced in, we believe downside risk is limited, and </span><span style="font-size: var(--content-font-size);">expect multiple catalysts to boost its rebound</span></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>

We on Kuaishou’s long-term share gain and margin improvement, despite ST ads headwinds.3Q22 mixed, in which ecommerce &amp; livestreaming remained resilient but ads experienced slower recovery on epidemic resurgence. We expect better-than-feared margin in 3Q22E for more disciplined S&amp;M. Domestic biz positive OP kept intact in 3Q22E. As majority of headwinds priced in, we believe downside risk is limited, and expect multiple catalysts to boost its reboundContent 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) – Share gain intact with enhanced ecosystem

<div><div><div><div><ul><li>Weibo is the fourth largest social media platform by MAUs in China (behind Tencent/ Douyin/Kuaishou), with 582mn MAUs and 43% DAU/MAU ratio as of June 2022.</li><li>Weibo has established unique proposition to advertisers with its large user base and vibrant KOL community.</li><li>It provides advertisers with differentiated brand-plus-performance marketing solutions with relatively high ROI. </li></ul></div></div></div></div><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>

Weibo is the fourth largest social media platform by MAUs in China (behind Tencent/ Douyin/Kuaishou), with 582mn MAUs and 43% DAU/MAU ratio as of June 2022.Weibo has established unique proposition to advertisers with its large user base and vibrant KOL community.It provides advertisers with differentiated brand-plus-performance marketing solutions with relatively high ROI. 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.

Weibo (WB US) – Navigate Short-Term Headwind

<div><ul><li>2Q22 result beat again, with DAU/rev +18.5%/13% YoY (1%/5% above consensus), and bottom line at -RMB1.3bn (vs. consensus at -RMB2.9bn).</li><li><span style="font-size: var(--content-font-size);">We view this result as positive, given its resilient topline growth and better-than- expected margin (domestic biz OP breakeven ahead of guidance). </span></li><li><span style="font-size: var(--content-font-size);">2H22E guidance was largely in line, with 3Q22/4Q22E rev +12% YoY/15% YoY. </span></li></ul></div><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>

2Q22 result beat again, with DAU/rev +18.5%/13% YoY (1%/5% above consensus), and bottom line at -RMB1.3bn (vs. consensus at -RMB2.9bn).We view this result as positive, given its resilient topline growth and better-than- expected margin (domestic biz OP breakeven ahead of guidance). 2H22E guidance was largely in line, with 3Q22/4Q22E rev +12% YoY/15% YoY. 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) – Another Upbeat Quarter; 2H22E Outlook on Track

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)

CMBI Research Focus List (November Edition) – Our best high conviction stock ideas

In our last report dated 17 October, we highlighted a list of 21 long ideas.The basket (equal weighted) of these 21 stocks underperformed MSCI...

CMB International

China Internet Sector – 2022 "11.11": Moderate recovery with quality growth

2022 “11.11” saw mild GMV recovery, with emphasis on “quality growth”, “agricultural incentives”, “domestics promotion”, “opening up” and “user...

CMB International

Weibo (WB US) – Navigate Short-Term Headwind

Weibo is the fourth largest social media platform by MAUs in China (behind Tencent/ Douyin/Kuaishou), with 582mn MAUs and 43% DAU/MAU ratio as of...

CMB International

Kuaishou (1024 HK) – Another Upbeat Quarter; 2H22E Outlook on Track

2Q22 result beat again, with DAU/rev +18.5%/13% YoY (1%/5% above consensus), and bottom line at -RMB1.3bn (vs. consensus at -RMB2.9bn).

CMB International

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52-week Range

Market Cap (USDm)

P/E

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CMBI Research Focus List (November Edition) – Our best high conviction stock ideas

In our last report dated 17 October, we highlighted a list of 21 long ideas.The basket (equal weighted) of these 21 stocks underperformed MSCI...

CMB International

China Internet Sector – 2022 "11.11": Moderate recovery with quality growth

2022 “11.11” saw mild GMV recovery, with emphasis on “quality growth”, “agricultural incentives”, “domestics promotion”, “opening up” and “user...

CMB International

Kuaishou (1024 HK) – Share gain intact with enhanced ecosystem

We on Kuaishou’s long-term share gain and margin improvement, despite ST ads headwinds. 3Q22 mixed, in which ecommerce & livestreaming remained...

CMB International

Weibo (WB US) – Navigate Short-Term Headwind

Weibo is the fourth largest social media platform by MAUs in China (behind Tencent/ Douyin/Kuaishou), with 582mn MAUs and 43% DAU/MAU ratio as of...

CMB International

Kuaishou (1024 HK) – Another Upbeat Quarter; 2H22E Outlook on Track

2Q22 result beat again, with DAU/rev +18.5%/13% YoY (1%/5% above consensus), and bottom line at -RMB1.3bn (vs. consensus at -RMB2.9bn).

CMB International