Global Emerging Market Equities, Propitious Research

Wium Malan, CFA

Global Emerging Market Equities

Independent, Fundamental Quantitative Research

Propitious Research

Fully independent, fundamental and quantitative equity research, focused on companies in the Telecommunication, Media, Technology, Internet and Healthcare sectors in the Global Emerging Markets. Idea generation focused on Quality stocks, trading below their intrinsic Value, with sound Corporate Governance.

Equity Bottom-Up

<ul>
<li>Following several years of sustained revenue share loss, Search’s digital advertising revenue market share has stabilised, having seemingly retained its core advertising customers.</li>
<li>With China’s economic growth recovery, Baidu is perfectly positioned to accelerate its core marketing revenue growth, which is also a high-margin operation.</li>
<li>Baidu is set up for significant group margin expansion as the higher-margin core marketing business returns to positive annualised growth and it continues to expand AI Cloud margins.</li>
</ul>


Following several years of sustained revenue share loss, Search’s digital advertising revenue market share has stabilised, having seemingly retained its core advertising customers.
With China’s economic growth recovery, Baidu is perfectly positioned to accelerate its core marketing revenue growth, which is also a high-margin operation.
Baidu is set up for significant group margin expansion as the higher-margin core marketing business returns to positive annualised growth and it continues to expand AI Cloud margins.


Baidu: Undervalued Cyclical Revenue Growth Acceleration and Margin Expansion Story

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

Thematic (Sector/Industry)

<ul>
<li>JD: JD launched JD Grocery channel in JDDJ platform (-)</li>
<li>SE: TikTok launched TikTok Shop Mall in Southeast Asia (-)</li>
<li>PDD：Comments on reports about Shein's financials and potential listing (-) </li>
</ul>


JD: JD launched JD Grocery channel in JDDJ platform (-)
SE: TikTok launched TikTok Shop Mall in Southeast Asia (-)
PDD：Comments on reports about Shein's financials and potential listing (-) 


China TMT Update (Feb.23) - JD, SE, Tiktok, PDD, Temu - Shein's Financials and Potential Listing

<ul>
<li>[Daily 1]    3690HK：Meituan is testing short video and live streaming function for food delivery (+);  [Daily 2]   PDD: Shein is to launch its online marketplace in the US(-) </li>
<li>[Daily 3]    700HK/WB：WeChat official account makes key updates on image formatting（+/-）</li>
<li>[Daily 4]    700HK:Supercell 2022 topline down 6% YoY with several challenges(-)</li>
</ul>


[Daily 1]    3690HK：Meituan is testing short video and live streaming function for food delivery (+);  [Daily 2]   PDD: Shein is to launch its online marketplace in the US(-) 
[Daily 3]    700HK/WB：WeChat official account makes key updates on image formatting（+/-）
[Daily 4]    700HK:Supercell 2022 topline down 6% YoY with several challenges(-)


China TMT Update (Feb.17) - Meituan, PDD, Shein, Tencent, WB - Meituan Is Testing Short Video

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>Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.</li>
<li>On the IPO front, <a href="https://www.smartkarma.com/entities/pertamina-geothermal-energy-pt" target="_blank" data-smartkarma-citation="entities:36725:1" rel="noopener">Pertamina Geothermal</a> <a href="https://www.smartkarma.com/entities/pt-pertamina-persero" target="_blank" data-smartkarma-citation="entities:35862:1" rel="noopener"></a>is set to make its debut in the coming week.</li>
<li>Placements picked up pace this week, with multiple deals across geographies.</li>
</ul>


Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
On the IPO front, Pertamina Geothermal is set to make its debut in the coming week.
Placements picked up pace this week, with multiple deals across geographies.


ECM Weekly (19th Feb 2023) - Rakuten Bank, ZJLD, REPT, Link REIT, SoCar, Ryman, Indigo, ESR, Oasis

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>We expect Pinduoduo (PDD) to maintain relatively more resilient GMV and revenue growth in 2023E, aided by user stickiness and progress in incorporating more branded products.</li><li>Duoduo Grocery (DDG)’s progress on improving operating efficiency could sustain, in our view, and is on track to achieve operating profit breakeven on single month basis in mid-to-late 2023.</li><li>PDD’s core platform e-commerce business has entered stable growth phase which will provide strong cash flow support for Temu’s overseas expansion.</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>

We expect Pinduoduo (PDD) to maintain relatively more resilient GMV and revenue growth in 2023E, aided by user stickiness and progress in incorporating more branded products.Duoduo Grocery (DDG)’s progress on improving operating efficiency could sustain, in our view, and is on track to achieve operating profit breakeven on single month basis in mid-to-late 2023.PDD’s core platform e-commerce business has entered stable growth phase which will provide strong cash flow support for Temu’s overseas expansion.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.

Pinduoduo (PDD US) – Resilient GMV growth to sustain in 2023

China

PDD Holdings Inc. is a multinational commerce group that owns and operates a portfolio of businesses. The Company focuses on digital economy so that local communities and small businesses can benefit from the increased productivity and new opportunities. PDD Holdings has built a network of sourcing, logistics, and fulfillment capabilities for its underlying businesses.

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PDD Holdings (PDD US)

Baidu: Undervalued Cyclical Revenue Growth Acceleration and Margin Expansion Story

In this insight, we analyse Baidu’s search query and digital advertising revenue market share trends, revenue growth outlook, margin expansion...

Wium Malan, CFA

China TMT Update (Feb.23) - JD, SE, Tiktok, PDD, Temu - Shein's Financials and Potential Listing

Shein's Financials and Potential Listing; JD launched JD Grocery channel in JDDJ platform; TikTok launched TikTok Shop Mall in Southeast Asia

Blue Lotus Research Institute

China TMT Update (Feb.17) - Meituan, PDD, Shein, Tencent, WB - Meituan Is Testing Short Video

Meituan is testing short video and live streaming function for food delivery (+); PDD: Shein is to launch its online marketplace in the US(-);

Blue Lotus Research Institute

ECM Weekly (19th Feb 2023) - Rakuten Bank, ZJLD, REPT, Link REIT, SoCar, Ryman, Indigo, ESR, Oasis

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.

Sumeet Singh

Pinduoduo (PDD US) – Resilient GMV growth to sustain in 2023

We expect Pinduoduo (PDD) to maintain relatively more resilient GMV and revenue growth in 2023E, aided by user stickiness and progress in...

CMB International

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