Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Days after the <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> announcement about its planned distribution of the bulk of the <a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a> shares it owns, the Hang Seng Index team <a href="https://www.hsi.com.hk/static/uploads/contents/en/news/indexChgNotice/20221122T000000.pdf" target="_blank" rel="noopener">clarified</a> index treatment.</li>
<li>It will be treated in HS Indices as a "listed non-cash distribution" for Tencent. There is theoretically wiggle room on the Meituan side, but it appears it will follow JD.com.</li>
<li>That means Meituan selling on 4 January at the close, limbo for two months, then Meituan buying. Full model below.</li>
</ul>


Days after the Tencent (700 HK) announcement about its planned distribution of the bulk of the Meituan (3690 HK) shares it owns, the Hang Seng Index team clarified index treatment.
It will be treated in HS Indices as a "listed non-cash distribution" for Tencent. There is theoretically wiggle room on the Meituan side, but it appears it will follow JD.com.
That means Meituan selling on 4 January at the close, limbo for two months, then Meituan buying. Full model below.


Meituan Index Flows Clarifications on the Tencent Distribution; Prosus Comments on Its Holdings

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

Equity Bottom-Up

<ul><li>Prosus NV, the Dutch unit of Tencent Holdings Ltd.’s largest shareholder Naspers Ltd., said it will consider selling the $4.6 billion of Meituan shares it will receive from Tencent as a special dividend.</li><li>South African media giant Naspers owns about 28% of the Chinese internet giant indirectly via Prosus.</li><li>On Nov. 16, Tencent announced a special distribution of 958 million Meituan shares to shareholders.</li></ul>

Prosus NV, the Dutch unit of Tencent Holdings Ltd.’s largest shareholder Naspers Ltd., said it will consider selling the $4.6 billion of Meituan shares it will receive from Tencent as a special dividend.South African media giant Naspers owns about 28% of the Chinese internet giant indirectly via Prosus.On Nov. 16, Tencent announced a special distribution of 958 million Meituan shares to shareholders.

Top Tencent Investor Naspers Considers Selling Meituan Shares

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

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 Capital Markets

<ul>
<li>DPC Dash aims to raise around US$100m in its Hong Kong IPO. </li>
<li>The company is the exclusive master franchisee for Domino’s Pizza in China, HK and Macau. DPC operated 562 stores across 13 cities, as of Nov 2022.</li>
<li>In this note, we will talk about the not-so-positive aspects of the deal.</li>
</ul>


DPC Dash aims to raise around US$100m in its Hong Kong IPO. 
The company is the exclusive master franchisee for Domino’s Pizza in China, HK and Macau. DPC operated 562 stores across 13 cities, as of Nov 2022.
In this note, we will talk about the not-so-positive aspects of the deal.


DPC Dash Pre-IPO - The Negatives - Lags the Leader, Remains Loss Making

Equity Analyst

Xin Yu, CFA

<ul>
<li>Meituan’s recent price decline was partly due to the rumors about the social benefit payments.</li>
<li>First, rumors are unverified statements. There was no such meeting at all.</li>
<li>Second, the social benefit payment impact is probably controllable. I think the recent price decline provides a chance of adding on the stock. </li>
</ul>


Meituan’s recent price decline was partly due to the rumors about the social benefit payments.
First, rumors are unverified statements. There was no such meeting at all.
Second, the social benefit payment impact is probably controllable. I think the recent price decline provides a chance of adding on the stock. 


Add Meituan on Rumors of Social Benefit Payments

<ul>
<li>DPC Dash aims to raise around US$100m in its Hong Kong IPO. </li>
<li>The company is the exclusive master franchisee for Domino’s Pizza in China, HK and Macau. DPC operated 562 stores across 13 cities, as of Nov 2022.</li>
<li>In this note, we will talk about the positive aspects of the deal.</li>
</ul>


DPC Dash aims to raise around US$100m in its Hong Kong IPO. 
The company is the exclusive master franchisee for Domino’s Pizza in China, HK and Macau. DPC operated 562 stores across 13 cities, as of Nov 2022.
In this note, we will talk about the positive aspects of the deal.


DPC Dash Pre-IPO - The Positives - On a Rapid Expansion Spree

China

Meituan operates as a web based shopping platform for locally found consumer products and retail services. The Company offers deals of the day by selling vouchers on local services and entertainment, dining, delivery, and other services. Meituan provides its services throughout China.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Meituan (3690 HK)

Meituan Index Flows Clarifications on the Tencent Distribution; Prosus Comments on Its Holdings

Hang Seng released its treatment of Tencent's Meituan share distribution. Same as JD.com. This is a brief walk-through explanation for non-index...

Travis Lundy

Top Tencent Investor Naspers Considers Selling Meituan Shares

Prosus NV, the Dutch unit of Tencent Holdings Ltd.’s largest shareholder Naspers Ltd., said it will consider selling the $4.6 billion...

Caixin Global

DPC Dash Pre-IPO - The Negatives - Lags the Leader, Remains Loss Making

DPC Dash, Domino's Pizza's franchisee in China, aims to raise around US$100m in its Hong Kong IPO. In this note, we talk about the not so positive...

Sumeet Singh

DPC Dash Pre-IPO - The Positives - On a Rapid Expansion Spree

DPC Dash, master franchisee for Domino's Pizza in China, aims to raise around US$100m in its Hong Kong IPO. In this note, we talk about the...

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Meituan Index Flows Clarifications on the Tencent Distribution; Prosus Comments on Its Holdings

Hang Seng released its treatment of Tencent's Meituan share distribution. Same as JD.com. This is a brief walk-through explanation for non-index...

Travis Lundy

Top Tencent Investor Naspers Considers Selling Meituan Shares

Prosus NV, the Dutch unit of Tencent Holdings Ltd.’s largest shareholder Naspers Ltd., said it will consider selling the $4.6 billion...

Caixin Global

DPC Dash Pre-IPO - The Negatives - Lags the Leader, Remains Loss Making

DPC Dash, Domino's Pizza's franchisee in China, aims to raise around US$100m in its Hong Kong IPO. In this note, we talk about the not so positive...

Sumeet Singh

Add Meituan on Rumors of Social Benefit Payments

Meituan’s recent price decline was partly due to the rumors about the social benefit payments. I think these are pure rumors and offers a change of...

Xin Yu, CFA

DPC Dash Pre-IPO - The Positives - On a Rapid Expansion Spree

DPC Dash, master franchisee for Domino's Pizza in China, aims to raise around US$100m in its Hong Kong IPO. In this note, we talk about the...

Sumeet Singh