Research from Quam Securities, Quam Securities

Quam Securities Research

Research from Quam Securities

Quam Securities

Since its inception in 1986, Quam Securities Limited (Quam Securities) has grown to become one of the few mid-tier securities brokerages in Hong Kong with global execution capabilities for both private and institutional clients. It boasts a well-established network in Greater China including Taiwan and in major world markets through the Global Alliance Partners (GAP). Quam Securities is well-positioned not only to harness and drive business within the China Tonghai International Financial Limited but also between China and the world markets.

Thematic (Sector/Industry)

<ul><li>Global #3 server vendor Inspur has been placed on the entity list of the US, which could severely hit its sales due to potential difficulty in procurement of key parts and components.</li><li>The move could potentially benefit competitors, such as Lenovo, which has already enjoyed strong growth in server sales in the past few years.</li><li>Inspur (000977 CH, NR) is global #3 server vendor and, according to IDC data, it had 8.1% market share for 9M22, which was behind #1 Dell’s (DELL US, NR) 16.6% and #2 HP Enterprise’s (HPE US, NR) 13.8% but ahead of #4 Lenovo’s 6.2%.</li></ul>

Global #3 server vendor Inspur has been placed on the entity list of the US, which could severely hit its sales due to potential difficulty in procurement of key parts and components.The move could potentially benefit competitors, such as Lenovo, which has already enjoyed strong growth in server sales in the past few years.Inspur (000977 CH, NR) is global #3 server vendor and, according to IDC data, it had 8.1% market share for 9M22, which was behind #1 Dell’s (DELL US, NR) 16.6% and #2 HP Enterprise’s (HPE US, NR) 13.8% but ahead of #4 Lenovo’s 6.2%.

Lenovo (992 HK, NR) - The Fastest Growing Segment May Get a Further Boost

Equity Bottom-Up

<div><div><div><ul><li>Lenovo (992 HK, NR), which is the #1 PC maker globally, reported flat revenue for 1QFY3/23, which was in line with expectations but earnings beat with 11% y/y growth.</li><li>Intelligent devices group (IDG) revenue, which incl. PC, smartphones and other smart devices, fell 3% y/y as the segment was affected by a poor PC market, but its exposure to the corporate segment helped buffering the impact from weakness in the consumer segment.</li><li><div><div><p>As previously highlighted by other tech companies along different levels of the value chain, demand for servers and related components remained resilient.</p></div></div></li></ul></div></div></div>

Lenovo (992 HK, NR), which is the #1 PC maker globally, reported flat revenue for 1QFY3/23, which was in line with expectations but earnings beat with 11% y/y growth.Intelligent devices group (IDG) revenue, which incl. PC, smartphones and other smart devices, fell 3% y/y as the segment was affected by a poor PC market, but its exposure to the corporate segment helped buffering the impact from weakness in the consumer segment.As previously highlighted by other tech companies along different levels of the value chain, demand for servers and related components remained resilient.

Tactical Trade Idea – Lenovo: Continued to Outperform

Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

News from Caixin

Macroeconomics

<ul>
<li>China’s local governments have begun offering billions of yuan worth of coupons to boost consumer spending, in an effort to help businesses feeling the pain of China’s Covid-19 outbreaks over the past two months.</li>
<li>The measure comes as China’s economy faces some of the greatest strain it has experienced since the initial wave of outbreaks in early 2020 as strict lockdowns across the country have disrupted business and everyday life</li>
<li>This time, local governments have also chosen coupons or vouchers as the form of their demand-side stimulus policy. The coupons will be good for discounts on products like cars and electronics, as well as services such as admission into local tourist sites.</li>
</ul>


China’s local governments have begun offering billions of yuan worth of coupons to boost consumer spending, in an effort to help businesses feeling the pain of China’s Covid-19 outbreaks over the past two months.
The measure comes as China’s economy faces some of the greatest strain it has experienced since the initial wave of outbreaks in early 2020 as strict lockdowns across the country have disrupted business and everyday life
This time, local governments have also chosen coupons or vouchers as the form of their demand-side stimulus policy. The coupons will be good for discounts on products like cars and electronics, as well as services such as admission into local tourist sites.


Local Governments Again Break Out the Coupons to Boost Consumer Spending

Cross Asset Strategy

<ul><li><p>Oil prices surge amid Russian assault on Ukraine</p></li><li><p>China’s annual rural policy road map urges better protection for women and children</p></li><li><p>Exclusive: China’s banks told to stop taking liberties with ‘agreement deposits’</p></li></ul>

Oil prices surge amid Russian assault on UkraineChina’s annual rural policy road map urges better protection for women and childrenExclusive: China’s banks told to stop taking liberties with ‘agreement deposits’

CX Daily: Oil Prices Surge Amid Russian Assault on Ukraine

Bond market data and technology, BondEvalue

BondEvalue

Bond market data and technology

BondEvalue is a Singapore-based Fintech that specializes in bond market data and technology. The company's information services business offers bond market data on hard-currency corporate & sovereign bonds across Asia, Middle East, Europe and the Americas. The data, which includes bond prices, yields, news and analytics, is offered to end investors via interactive Mobile and Web Apps. Investors can sign up for a free trial of the service either via the company's website (https://bondevalue.com) or by downloading the BondEvalue Mobile App (http://onelink.to/wej7jq). BondEvalue is also developing an electronic bond exchange, BondbloX in Singapore that allows investors to trade bonds electronically in smaller sizes (US$1,000 or equivalent). For more information, visit https://www.bondblox.com/

Bond Market Data and Technology

Credit

The world’s largest PC maker Lenovo Group has withdrawn its application to list on Shanghai’s Star Market just eight days after the company was accepted by the exchange. This is the second largest IPO withdrawal after Ant Group scrapped its $39.7bn dual listing in November last year. Lenovo, which is already listed on the New York and Hong Kong exchanges, had planned to raise up to $1.8bn via a sale of Chinese depository receipts (CDRs), making it the first Red Chip (Term of the day) to do so. The IPO withdrawal is a setback for the Star Market, which positions itself as the “centre stage for China’s technology champions” as per SCMP.

Lenovo Scraps $1.8bn IPO on Shanghai’s Star Market

China

Lenovo Group Limited, through its subsidiaries, sells, and manufactures personal computers and handheld devices. The Company also provides Internet services and IT services, and contracting manufacturing business.

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Lenovo Group Ltd Adr (LNVGY US)

Lenovo (992 HK, NR) - The Fastest Growing Segment May Get a Further Boost

Global #3 server vendor Inspur has been placed on the entity list of the US, which could severely hit its sales due to potential difficulty in...

Quam Securities

Tactical Trade Idea – Lenovo: Continued to Outperform

Lenovo (992 HK, NR), which is the #1 PC maker globally, reported flat revenue for 1QFY3/23, which was in line with expectations but earnings beat...

Quam Securities

Local Governments Again Break Out the Coupons to Boost Consumer Spending

China’s local governments have begun offering billions of yuan worth of coupons to boost consumer spending, in an effort to help businesses

Caixin Global

CX Daily: Oil Prices Surge Amid Russian Assault on Ukraine

Oil prices surge amid Russian assault on Ukraine. China’s annual rural policy road map urges better protection for women and children

Caixin Global

Lenovo Scraps $1.8bn IPO on Shanghai’s Star Market

The world’s largest PC maker Lenovo Group has withdrawn its application to list on Shanghai’s Star Market just eight days after the company was...

BondEvalue

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