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.

Event-Driven

<ul>
<li>PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US listed China companies.</li>
<li>The Hong Kong visit was on the back of the 26th Aug 2022 announcement by PCAOB and CSRC that they had entered into an agreement with US authorities for access.</li>
<li>In this note, we'll talk about the latest developments, possible outcomes and implications.</li>
</ul>


PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US listed China companies.
The Hong Kong visit was on the back of the 26th Aug 2022 announcement by PCAOB and CSRC that they had entered into an agreement with US authorities for access.
In this note, we'll talk about the latest developments, possible outcomes and implications.


China ADRs Delisting - Friday Could Be Judgment Day for over US$800bn Mcap of Stocks

<ul>
<li>Multiple new agencies have been reporting that <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> plans to trim its investment portfolio over the remainder of the year. </li>
<li>The reports have been coming in since the second half of the year and the company has been duly denying these rumors.</li>
<li>In this note, we look at Tencent’s shareholding in various companies to try and gauge which ones it could sell out of and how.</li>
</ul>


Multiple new agencies have been reporting that Tencent (700 HK) plans to trim its investment portfolio over the remainder of the year. 
The reports have been coming in since the second half of the year and the company has been duly denying these rumors.
In this note, we look at Tencent’s shareholding in various companies to try and gauge which ones it could sell out of and how.


Tencent Investee Selldown - The US$120bn Global Overhang

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.

Equity Bottom-Up

<ul><li>Maintain HOLD. NIO’s all-time high R&amp;D and SG&amp;A expenses in 4Q23 once again confirm that it is probably too difficult for the company to control costs.</li><li>The cash burn from CYVN’s capital injection may last shorter than we expected before. We see no sign or persuasive strategies to turn profitable from the earnings call.</li><li>We believe management’s guidance for FY24E GPM could be too optimistic.</li></ul>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.

Maintain HOLD. NIO’s all-time high R&amp;D and SG&amp;A expenses in 4Q23 once again confirm that it is probably too difficult for the company to control costs.The cash burn from CYVN’s capital injection may last shorter than we expected before. We see no sign or persuasive strategies to turn profitable from the earnings call.We believe management’s guidance for FY24E GPM could be too optimistic.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.

NIO Inc. (NIO US) - Cash Burn Speeds up with Capital Injection

<ul><li>Maintain HOLD. We project NIO’s 4Q23 net loss to narrow QoQ to RMB4.4bn with a GPM improvement.</li><li>However, such GPM lift could still result in a net loss of RMB14.6bn in FY24E on our estimates.</li><li>Although the capital injection from CYVN could probably support NIO’s cash burn for two years, we think NIO still needs to lay out persuasive strategies to turn profitable to increase investors’ confidence, especially for its second brand launch in 2H24, as the NIO brand lacks new models in 1H24.</li></ul>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.

Maintain HOLD. We project NIO’s 4Q23 net loss to narrow QoQ to RMB4.4bn with a GPM improvement.However, such GPM lift could still result in a net loss of RMB14.6bn in FY24E on our estimates.Although the capital injection from CYVN could probably support NIO’s cash burn for two years, we think NIO still needs to lay out persuasive strategies to turn profitable to increase investors’ confidence, especially for its second brand launch in 2H24, as the NIO brand lacks new models in 1H24.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.

NIO (NIO US) - Need Persuasive Strategies to Turn Profitable

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>300750 CH/1211 HK/ JKS US/601012 CH/688599 CH/002459 CH:China cancels and reduces export tax rebate for certain China's advantageous products, forcing production capacity to be rationalize and export prices to rise.(///////////)</li>
<li>1810 HK/LI US/NIO US/XPEV US: It is said that Geely Group is preparing to merge its hybrid and pure electric brands under Zeekr（///////）</li>
<li>BEKE US:Mid-November Home Transaction Growth Remains Strong in First-Tier Cities, While Growth in Second- and Third-Tier Cities Slows Down (+)</li>
</ul>


300750 CH/1211 HK/ JKS US/601012 CH/688599 CH/002459 CH:China cancels and reduces export tax rebate for certain China's advantageous products, forcing production capacity to be rationalize and export prices to rise.(///////////)
1810 HK/LI US/NIO US/XPEV US: It is said that Geely Group is preparing to merge its hybrid and pure electric brands under Zeekr（///////）
BEKE US:Mid-November Home Transaction Growth Remains Strong in First-Tier Cities, While Growth in Second- and Third-Tier Cities Slows Down (+)


[Blue Lotus Daily]:300750 CH/1211 HK/JKS US/601012 CH/688599 CH/002459CH/1810HK/LI/NIO/XPEV/BEKE/ZTO

China

NIO Inc. manufactures and sells automobiles. The Company offers electric vehicles and parts, as well as provides battery charging services. NIO serves customers worldwide.

Price Gauge
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NIO (NIO US)

China ADRs Delisting - Friday Could Be Judgment Day for over US$800bn Mcap of Stocks

PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US...

Sumeet Singh

Tencent Investee Selldown - The US$120bn Global Overhang

There have been multiple reports that Tencent (700 HK) plans to trim its investment portfolio over the remainder of the year. We look at Tencent's...

Sumeet Singh

NIO Inc. (NIO US) - Cash Burn Speeds up with Capital Injection

Maintain HOLD. NIO’s all-time high R&D and SG&A expenses in 4Q23 once again confirm that it is probably too difficult for the company to control...

CMB International

NIO (NIO US) - Need Persuasive Strategies to Turn Profitable

Maintain HOLD. We project NIO’s 4Q23 net loss to narrow QoQ to RMB4.4bn with a GPM improvement. However, such GPM lift could still result in a net...

CMB International

[Blue Lotus Daily]:300750 CH/1211 HK/JKS US/601012 CH/688599 CH/002459CH/1810HK/LI/NIO/XPEV/BEKE/ZTO

China cancels export tax rebate, Geely Group to merge electric brands, home transaction growth strong in first-tier cities.

Blue Lotus Research Institute

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

China ADRs Delisting - Friday Could Be Judgment Day for over US$800bn Mcap of Stocks

PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US...

Sumeet Singh

Tencent Investee Selldown - The US$120bn Global Overhang

There have been multiple reports that Tencent (700 HK) plans to trim its investment portfolio over the remainder of the year. We look at Tencent's...

Sumeet Singh

NIO Inc. (NIO US) - Cash Burn Speeds up with Capital Injection

Maintain HOLD. NIO’s all-time high R&D and SG&A expenses in 4Q23 once again confirm that it is probably too difficult for the company to control...

CMB International

NIO (NIO US) - Need Persuasive Strategies to Turn Profitable

Maintain HOLD. We project NIO’s 4Q23 net loss to narrow QoQ to RMB4.4bn with a GPM improvement. However, such GPM lift could still result in a net...

CMB International

[Blue Lotus Daily]:300750 CH/1211 HK/JKS US/601012 CH/688599 CH/002459CH/1810HK/LI/NIO/XPEV/BEKE/ZTO

​China cancels export tax rebate, Geely Group to merge electric brands, home transaction growth strong in first-tier cities.

Blue Lotus Research Institute

China cancels export tax rebate, Geely Group to merge electric brands, home transaction growth strong in first-tier cities.