Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> declared an interim dividend by way of in-specie distribution of JD.com.  That interim dividend is ~ 3.0%. Not phenomenally large, but hints at possibilities to come. </li>
<li>Dye &amp; Durham come over the top with an all-cash bid for <a href="https://www.smartkarma.com/entities/link-administration-holdings-ltd" target="_blank" data-smartkarma-citation="entities:970:1" rel="noopener">Link Administration Holdings (LNK AU)</a> as Carlyle remains silent after five weeks of due diligence.</li>
<li>
<a href="https://www.smartkarma.com/entities/china-mobile-ltd" target="_blank" data-smartkarma-citation="entities:27:1" rel="noopener">China Mobile (941 HK)</a> has priced its A-share IPO at RMB 57.58/share which is slightly disappointing in terms of premium to the H-share.  The "reasoning" is basically hogwash. </li>
</ul>



Tencent (700 HK) declared an interim dividend by way of in-specie distribution of JD.com.  That interim dividend is ~ 3.0%. Not phenomenally large, but hints at possibilities to come. 
Dye &amp; Durham come over the top with an all-cash bid for Link Administration Holdings (LNK AU) as Carlyle remains silent after five weeks of due diligence.

China Mobile (941 HK) has priced its A-share IPO at RMB 57.58/share which is slightly disappointing in terms of premium to the H-share.  The "reasoning" is basically hogwash. 


Last Week in Event SPACE: Tencent /JD.com, Link Admin, China Mobile, Sydney Airport, Katakura

Forensic Analyst

Jason Yap, CFA

Equity Bottom-Up

<ul>
<li>On 23 December 2021, Tencent announced that it will shed most of its stake in JD, which takes place through the in-specie dividend distribution of JD shares to Tencent's shareholders. </li>
<li>There is prevailing debate that Tencent's latest disposals are in anticipation of regulatory pressure for China's tech giants to bring down their walled gardens. We do not disagree. </li>
<li>However, in this Insight, we argue a case that new walled gardens are being erected and not torn down, at least with respect to Tencent's ecosystem. </li>
</ul>


On 23 December 2021, Tencent announced that it will shed most of its stake in JD, which takes place through the in-specie dividend distribution of JD shares to Tencent's shareholders. 
There is prevailing debate that Tencent's latest disposals are in anticipation of regulatory pressure for China's tech giants to bring down their walled gardens. We do not disagree. 
However, in this Insight, we argue a case that new walled gardens are being erected and not torn down, at least with respect to Tencent's ecosystem. 


Tencent (700 HK) - New Walled Gardens Are Being Erected, Not Torn Down?

Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<ul>
<li>Tencent announced today that its board of directors has resolved to declare a special dividend by way of a distribution of its Class A ordinary shares of JD.com. </li>
<li>There is increased speculation that there is more divestments to come that including Tencent’s stakes in Meituan, Kuaishou and Pinduoduo.</li>
<li>Tencent’s shares are up 4.3% from yesterday’s close following the announcement while JD.com is 7.1% down from its previous close.</li>
</ul>


Tencent announced today that its board of directors has resolved to declare a special dividend by way of a distribution of its Class A ordinary shares of JD.com. 
There is increased speculation that there is more divestments to come that including Tencent’s stakes in Meituan, Kuaishou and Pinduoduo.
Tencent’s shares are up 4.3% from yesterday’s close following the announcement while JD.com is 7.1% down from its previous close.


Tencent’s Special Dividend: Is It a Sign the Walled Gardens Are Coming Down?

Oshadhi Kumarasiri

Alibaba Group Holding  / Equity Bottom-Up

<ul>
<li>We have been highlighting some potentially devastating risks relating to Alibaba’s cloud business.</li>
<li>Yesterday, Chinese regulators announced that it decided to suspend the cybersecurity deal with Alibaba over failure to promptly report and address cybersecurity vulnerabilities.</li>
<li>With that, we are starting to think that our worst fears are coming true and a near-zero valuation to Alibaba’s cloud business seems highly possible.</li>
</ul>


We have been highlighting some potentially devastating risks relating to Alibaba’s cloud business.
Yesterday, Chinese regulators announced that it decided to suspend the cybersecurity deal with Alibaba over failure to promptly report and address cybersecurity vulnerabilities.
With that, we are starting to think that our worst fears are coming true and a near-zero valuation to Alibaba’s cloud business seems highly possible.


Alibaba Cloud’s Zero Dollars Valuation Look Realistic With The Suspension of The Cybersecurity Deal

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

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.

<ul>
<li>Tencent will distribute most of its JD.com shares as dividend.</li>
<li>We believe Tencent is doing this to bolster its EPS in 2021 and even 2022.</li>
<li>We believe the company will has an upside of 35% for the year end 2022.</li>
</ul>


Tencent will distribute most of its JD.com shares as dividend.
We believe Tencent is doing this to bolster its EPS in 2021 and even 2022.
We believe the company will has an upside of 35% for the year end 2022.


Tencent (700 HK): An Accounting Incentive of Giving Away JD.com Shares

China

Tencent Holdings Limited operates as an investment holding company. The Company, through its subsidiaries, provides Internet and mobile value-added services (VAS), online advertising, and e-commerce transactions. Tencent Holdings offers services to users worldwide.

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

Tencent Holdings (ADR) (TCEHY US)

Last Week in Event SPACE: Tencent /JD.com, Link Admin, China Mobile, Sydney Airport, Katakura

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

Tencent (700 HK) - New Walled Gardens Are Being Erected, Not Torn Down?

Tencent announced that it will shed most of its stake in JD. In this Insight, we argue a case that new walled gardens are being erected and not...

Jason Yap, CFA

Tencent’s Special Dividend: Is It a Sign the Walled Gardens Are Coming Down?

There is increased speculation that there is more divestments to come including Meituan, Kuaishou and Pinduoduo and we think the liberalisation of...

Shifara Samsudeen, ACMA, CGMA

Alibaba Cloud’s Zero Dollars Valuation Look Realistic With The Suspension of The Cybersecurity Deal

Data is an extremely valuable asset in the modern world and we think the Chinese government will do everything in its power to keep data within its...

Oshadhi Kumarasiri

Tencent (700 HK): An Accounting Incentive of Giving Away JD.com Shares

Tencent will distribute most of its JD.com shares as dividend. We believe Tencent does this to save its EPS. We believe the company will has an...

Ming Lu

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)