Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Equity Bottom-Up

<ul>
<li>Hong Kong markets continue to outperform globally this year with short selling declining and mainland buying increasing.  These trends should accelerate going into next year.</li>
<li>
<a href="https://www.smartkarma.com/entities/sun-art-retail-group-ltd" target="_blank" data-smartkarma-citation="entities:401:1" rel="noopener">Sun Art Retail (6808 HK)</a>resumed trading after announcing that the company is entertaining one or more potential acquisition plans for the company.  The company also announced strong 1H25 earnings.
</li>
<li>
<a href="https://www.smartkarma.com/entities/shanghai-electric-group-company-limited-d542164d-4d5a-4ce0-b33e-5fe6bc34722c" target="_blank" data-smartkarma-citation="entities:8777:1" rel="noopener">Shanghai Electric Group Company (2727 HK) </a>announce a buyback plan for 10% of A and H shares outstanding.  The company also announced the acquisition of the China Fanuc robotics business.
</li>
</ul>


Hong Kong markets continue to outperform globally this year with short selling declining and mainland buying increasing.  These trends should accelerate going into next year.

Sun Art Retail (6808 HK)resumed trading after announcing that the company is entertaining one or more potential acquisition plans for the company.  The company also announced strong 1H25 earnings.


Shanghai Electric Group Company (2727 HK) announce a buyback plan for 10% of A and H shares outstanding.  The company also announced the acquisition of the China Fanuc robotics business.



The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (October 22)

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>XPEV US: Xpeng MONA M03 suffers large scale delivery delays (/)</li>
<li>1810 HK: Government official announces that Xiaomi has developed a 3nm smartphone SoC (+)</li>
<li>MNSO US: Toptoy Expands Stores to Southeast Asia (/ )</li>
</ul>


XPEV US: Xpeng MONA M03 suffers large scale delivery delays (/)
1810 HK: Government official announces that Xiaomi has developed a 3nm smartphone SoC (+)
MNSO US: Toptoy Expands Stores to Southeast Asia (/ )


[Blue Lotus Daily]:XPEV US/1810 HK/MNSO US/1519 HK/ZTO US/Macro News Update/Travel Market Update

Asia L/S Equity PM/Macro/Thematic Idea Generation

Rikki Malik

Cross Asset Strategy

<ul>
<li>Representatives of all relevant major Ministries showed up and had their say</li>
<li>As is now usual from these events some positives as well as some disappointment</li>
<li>Further steps taken to put a floor under the property market</li>
</ul>


Representatives of all relevant major Ministries showed up and had their say
As is now usual from these events some positives as well as some disappointment
Further steps taken to put a floor under the property market


Ministry of Housing Press Conference – First Take

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sun-art-retail-group-ltd" target="_blank" data-smartkarma-citation="entities:401:1" rel="noopener">Sun Art Retail (6808 HK)</a> entered a trading halt under the Code on Takeovers and Mergers. Bloomberg suggests <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba Group Holding (BABA US)</a>’s stake is attracting preliminary interest from PE.</li>
<li>Alibaba built its 78.70% stake through two purchases in 2017 (HK$6.50) and 2021 (HK$8.10). An exit would align with the strategy to focus on the core business segments. </li>
<li>The recent Miniso-Yonghui transaction could have prompted PE to act. An offer at book value would imply HK$2.50, a 40% premium to the last close price. </li>
</ul>



Sun Art Retail (6808 HK) entered a trading halt under the Code on Takeovers and Mergers. Bloomberg suggests Alibaba Group Holding (BABA US)’s stake is attracting preliminary interest from PE.
Alibaba built its 78.70% stake through two purchases in 2017 (HK$6.50) and 2021 (HK$8.10). An exit would align with the strategy to focus on the core business segments. 
The recent Miniso-Yonghui transaction could have prompted PE to act. An offer at book value would imply HK$2.50, a 40% premium to the last close price. 


Sun Art Retail (6808 HK): Alibaba’s Stake Draws PE Interest

<ul>
<li>Macro News Update: Weak Household Loan Data in September Highlights Urgency for Consumption Stimulus</li>
<li>Macro News Update : Scholars within China's government system indicates more incremental stimulus policies are on the way.</li>
<li>Macro News Update : Positive read thru on the Ministry of Finance press release(+)</li>
</ul>


Macro News Update: Weak Household Loan Data in September Highlights Urgency for Consumption Stimulus
Macro News Update : Scholars within China's government system indicates more incremental stimulus policies are on the way.
Macro News Update : Positive read thru on the Ministry of Finance press release(+)


[Blue Lotus Daily]:1810 HK/1211HK/LI US/NIO US/XPEV US/MNSO US/ATAT US/002352 CH/2618HK/ZTO US/Macro

China

MINISO Group Holding is a value retailer with a focus on offering products that are aesthetically pleasing, good-quality, and affordable.

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Miniso (MNSO US)

The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (October 22)

HK out-perform global peers with short selling abating and mainland buying increasing. Sun Art resumed trading as it entertains potential buyout...

David Mudd

[Blue Lotus Daily]:XPEV US/1810 HK/MNSO US/1519 HK/ZTO US/Macro News Update/Travel Market Update

XPEV US faces delivery delays, 1810 HK announces Xiaomi's 3nm smartphone SoC, MNSO US expands stores to Southeast Asia.

Blue Lotus Research Institute

Ministry of Housing Press Conference – First Take

The next step on more detailed measures on stabilising the property market in China. Some big positives but disappointment likely for some

Rikki Malik

Sun Art Retail (6808 HK): Alibaba’s Stake Draws PE Interest

On 27 September, the Board received a pre-conditional voluntary conditional offer from an undisclosed offeror. No terms are disclosed. Alibaba is...

Arun George

[Blue Lotus Daily]:1810 HK/1211HK/LI US/NIO US/XPEV US/MNSO US/ATAT US/002352 CH/2618HK/ZTO US/Macro

Household loan data in China highlights need for consumption stimulus; more incremental policies expected. Positive outlook on Ministry of Finance...

Blue Lotus Research Institute

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (October 22)

HK out-perform global peers with short selling abating and mainland buying increasing. Sun Art resumed trading as it entertains potential buyout...

David Mudd

[Blue Lotus Daily]:XPEV US/1810 HK/MNSO US/1519 HK/ZTO US/Macro News Update/Travel Market Update

​XPEV US faces delivery delays, 1810 HK announces Xiaomi's 3nm smartphone SoC, MNSO US expands stores to Southeast Asia.

Blue Lotus Research Institute

Ministry of Housing Press Conference – First Take

The next step on more detailed measures on stabilising the property market in China. Some big positives but disappointment likely for some

Rikki Malik

Sun Art Retail (6808 HK): Alibaba’s Stake Draws PE Interest

On 27 September, the Board received a pre-conditional voluntary conditional offer from an undisclosed offeror. No terms are disclosed. Alibaba is...

Arun George

[Blue Lotus Daily]:1810 HK/1211HK/LI US/NIO US/XPEV US/MNSO US/ATAT US/002352 CH/2618HK/ZTO US/Macro

​Household loan data in China highlights need for consumption stimulus; more incremental policies expected. Positive outlook on Ministry of Finance...

Blue Lotus Research Institute

XPEV US faces delivery delays, 1810 HK announces Xiaomi's 3nm smartphone SoC, MNSO US expands stores to Southeast Asia.

Household loan data in China highlights need for consumption stimulus; more incremental policies expected. Positive outlook on Ministry of Finance...