China/Asia TMT

Shawn Yang

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>Nayuki bears the most resemblance to Starbucks in that it owns its stores and provides drink, food and space, yet its appealed audience is the narrowest; </li>
<li>Shopping mall opening might hit an all-time low in 2023 and is saturated. Nayuki need to think new ways to broaden its targeted market;</li>
<li>We downgrade Nayuki to SELL and lower TP from HK$13.9 to HK3.1</li>
</ul>


Nayuki bears the most resemblance to Starbucks in that it owns its stores and provides drink, food and space, yet its appealed audience is the narrowest; 
Shopping mall opening might hit an all-time low in 2023 and is saturated. Nayuki need to think new ways to broaden its targeted market;
We downgrade Nayuki to SELL and lower TP from HK$13.9 to HK3.1


Nayuki (2150 HK) Rating Change: Broaden Addressable Market Is Priority No.1

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 the weekly Hong Kong Connect flows with our data engine for holding position as of January 13th.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight flows for China Mobile, Simcere Pharmaceutical, Tencent, Geely Automobile.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of January 13th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for China Mobile, Simcere Pharmaceutical, Tencent, Geely Automobile.


Hong Kong Connect Flows (Jan 13th): Tencent Profit Taking

APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC IPOs & Placements

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/tian-tu-capital" target="_blank" data-smartkarma-citation="entities:36146:1" rel="noopener">Tian Tu Capital (1390587D CH)</a> is looking to raise US$300m in its upcoming Hong Kong IPO.</li>
<li>Tiantu Capital (TTC) is a private equity/venture capital investor and fund manager with a focus on Chinese consumer brands and companies.</li>
<li>The fund manages capital from investors including institutional investors, multinational corporations, financial institutions, and high net-worth individuals. It also directly invests through its own capital as well.</li>
</ul>



Tian Tu Capital (1390587D CH) is looking to raise US$300m in its upcoming Hong Kong IPO.
Tiantu Capital (TTC) is a private equity/venture capital investor and fund manager with a focus on Chinese consumer brands and companies.
The fund manages capital from investors including institutional investors, multinational corporations, financial institutions, and high net-worth individuals. It also directly invests through its own capital as well.


Tian Tu Capital Pre-IPO - The Negatives - Hampered by Weakened Market Sentiment. Guiding Weak FY22

Tian Tu Capital Pre-IPO - The Positives - Growing Its AUM and Committed Capital

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>What is new? Nayuki is paying RMB 525mn for 43.64% stake of “LELECHA”, at about 1.4x FY21 P/S.</li><li>Nayuki announced that it will acquire 43.64% stake of “LELECHA” brand at a total consideration of RMB 525mn, and the simple implied valuation of RMB 1,203mn is at 1.4x FY21 (53% discounts to peers’ average) or 1.6x FY20 P/S.</li><li>The total consideration consists of: 1) shares transfer of RMB 325mn (RMB 260mn for loans repayment and RMB 65mn for seller); and 2) capital increases of RMB 200mn. Nayuki will also utilize a short-term loan of no more than RMB 80mn.</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>

What is new? Nayuki is paying RMB 525mn for 43.64% stake of “LELECHA”, at about 1.4x FY21 P/S.Nayuki announced that it will acquire 43.64% stake of “LELECHA” brand at a total consideration of RMB 525mn, and the simple implied valuation of RMB 1,203mn is at 1.4x FY21 (53% discounts to peers’ average) or 1.6x FY20 P/S.The total consideration consists of: 1) shares transfer of RMB 325mn (RMB 260mn for loans repayment and RMB 65mn for seller); and 2) capital increases of RMB 200mn. Nayuki will also utilize a short-term loan of no more than RMB 80mn.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.

Nayuki Holdings Limited (2150 HK) – Acquiring LELECHA at a Bargain Price

Hong Kong

Nayuki Holdings Limited operates as a holding compnay. The Company, through its subsidiaries, produces and retails tea and bakery products. Nayuki serves customers in China.

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Nayuki Holdings (2150 HK)

Nayuki (2150 HK) Rating Change: Broaden Addressable Market Is Priority No.1

Nayuki bears the most resemblance to Starbucks, yet its appealed audience is the narrowest; Shopping mall opening might hit an all-time low in 2023...

Blue Lotus Research Institute

Hong Kong Connect Flows (Jan 13th): Tencent Profit Taking

We analyzed southbound Hong Kong connect flows in the past week and highlight flows for China Mobile, Simcere Pharmaceutical, Tencent, Geely...

Ke Yan, CFA, FRM

Tian Tu Capital Pre-IPO - The Negatives - Hampered by Weakened Market Sentiment. Guiding Weak FY22

Tian Tu Capital (1390587D CH) is looking to raise US$300m in its upcoming Hong Kong IPO. Tiantu Capital (TTC) is a private equity/venture capital...

Clarence Chu

Tian Tu Capital Pre-IPO - The Positives - Growing Its AUM and Committed Capital

Tian Tu Capital (1390587D CH) is looking to raise US$300m in its upcoming Hong Kong IPO. Tiantu Capital (TTC) is a private equity/venture capital...

Clarence Chu

Nayuki Holdings Limited (2150 HK) – Acquiring LELECHA at a Bargain Price

Nayuki announced that it will acquire 43.64% stake of “LELECHA” brand at a total consideration of RMB 525mn, and the simple implied valuation of...

CMB International

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52-week Range

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