Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>This morning, <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 <a href="https://www.smartkarma.com/entities/jd-com-inc-adr" target="_blank" data-smartkarma-citation="entities:446:1" rel="noopener">JD.com Inc (ADR) (JD US)</a> / <a href="https://www.smartkarma.com/entities/jd-com-inc" target="_blank" data-smartkarma-citation="entities:29043:1" rel="noopener">JD.com Inc. (9618 HK)</a> shares. </li>
<li>The distribution is 457,326,671 Tencent-held (86.4% of holdings) Class A Ordinary shares of JD.com - 1 share per 21 Tencent shares held - to Qualifying Shareholders on the record...</li>
<li>...date which is 25 January 2022, with 'delivery' on or about 25 March 2022. Non-Qualifying Shareholders will get cash. The details matter.</li>
</ul>


This morning, Tencent (700 HK) declared an interim dividend by way of in-specie distribution of JD.com Inc (ADR) (JD US) / JD.com Inc. (9618 HK) shares. 
The distribution is 457,326,671 Tencent-held (86.4% of holdings) Class A Ordinary shares of JD.com - 1 share per 21 Tencent shares held - to Qualifying Shareholders on the record...
...date which is 25 January 2022, with 'delivery' on or about 25 March 2022. Non-Qualifying Shareholders will get cash. The details matter.


Tencent's Big In-Specie Dividend of JD.com Shares

Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

Equity Bottom-Up

Alibaba Group Holding  / Equity Bottom-Up

<ul>
<li>Alibaba’s share price is very close to its four year low due to the Tech fallout and regulatory concerns about the Chinese government; nonetheless, much bad news is now discounted</li>
<li>The share price weakness also reflects investor concerns about BABA’s potential NYSE delisting, following Didi’s NYSE delisting announcement last month under pressure from the Chinese authorities</li>
<li>Alibaba is very close to a long term PEG ratio of 1x based on consensus estimates, and trades on very modest earnings and EBITDA multiples given its continued growth potential</li>
</ul>


Alibaba’s share price is very close to its four year low due to the Tech fallout and regulatory concerns about the Chinese government; nonetheless, much bad news is now discounted
The share price weakness also reflects investor concerns about BABA’s potential NYSE delisting, following Didi’s NYSE delisting announcement last month under pressure from the Chinese authorities
Alibaba is very close to a long term PEG ratio of 1x based on consensus estimates, and trades on very modest earnings and EBITDA multiples given its continued growth potential


Alibaba (BABA US): Looking to a Better ‘22

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 has received regulatory approval to resume regular updates in the app stores. Tencent was asked to get approval for all of its new apps and updates from the government.</li>
<li>While this suggests that the regulatory pressure may be easing, Tencent has got into more troubles with a young star worker committing suicide at work.</li>
<li>As we highlighted in our previous insights, the value of Tencent’s investments in other entities is deteriorating with more regulatory pressures. KE Holdings has been targeted by short sellers.</li>
</ul>


Tencent has received regulatory approval to resume regular updates in the app stores. Tencent was asked to get approval for all of its new apps and updates from the government.
While this suggests that the regulatory pressure may be easing, Tencent has got into more troubles with a young star worker committing suicide at work.
As we highlighted in our previous insights, the value of Tencent’s investments in other entities is deteriorating with more regulatory pressures. KE Holdings has been targeted by short sellers.


Tencent Receives Approval for App Updates but Faces New Hurdles

Chart based progressive global trading strategies, Chart Partners

Thomas Schroeder

Chart based progressive global trading strategies

Chart Partners

Chart Partners objective is to discover medium-term cycle turns and profit opportunities before they unfold, within structural trends while preserving capital with clear degrees of risk. We have real return ideas. 

Markets are dynamic and trading systems must reflect this. It is crucial to determine underlying correlations and lead-lag relationships within global markets and the impact on linked instruments. Our weekly Chartonics product gives you short-term trading strategies that can be applied within the medium and longer term macro trends that are mapped out in our strategy updates. 

Our methodology fuses global market variables and isolates drivers in trends. We specialize in FX, index trade in NY and Asia with a focus on Asian stocks. 

Technical Analysis

<ul>
<li>Tencent short bet from 510 is panning out with a target of 410, representing a major inflection support that if broken would induce additional carnage toward 375/330. </li>
<li>HK tech index 5600 support shows counter synergy to watch closely into a late December risk off cycle. Below 550 would be very bearish.</li>
<li>Our cycle work calls for the global risk cycle to peak in mid-December for fallout into late December, bounce and then resume weakness into late January.</li>
</ul>


Tencent short bet from 510 is panning out with a target of 410, representing a major inflection support that if broken would induce additional carnage toward 375/330. 
HK tech index 5600 support shows counter synergy to watch closely into a late December risk off cycle. Below 550 would be very bearish.
Our cycle work calls for the global risk cycle to peak in mid-December for fallout into late December, bounce and then resume weakness into late January.


Tencent Short to Pressure Test 410 Pivot Target

Forensic Analyst

Jason Yap, CFA

<ul>
<li>In its Investor Day, Alibaba Group announced its plans to focus on overseas e-commerce, amongst other initiatives. Alibaba's SEA unit, Lazada, is central to this plan.</li>
<li>The initiatives come amid investor concerns about Alibaba's long term growth prospects and competition, as well as regulatory and macroeconomic headwinds in its home market.</li>
<li>In this Insight, we examine a blue sky scenario for the incremental contribution of Alibaba's planned SEA expansion to Alibaba's overall performance and its impact on valuation. </li>
</ul>


In its Investor Day, Alibaba Group announced its plans to focus on overseas e-commerce, amongst other initiatives. Alibaba's SEA unit, Lazada, is central to this plan.
The initiatives come amid investor concerns about Alibaba's long term growth prospects and competition, as well as regulatory and macroeconomic headwinds in its home market.
In this Insight, we examine a blue sky scenario for the incremental contribution of Alibaba's planned SEA expansion to Alibaba's overall performance and its impact on valuation. 


Alibaba (BABA US) Investor Day Takeaways - The SEA Blue Sky

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.

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Tencent Holdings (ADR) (TCEHY US)

Tencent's Big In-Specie Dividend of JD.com Shares

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Travis Lundy

Alibaba (BABA US): Looking to a Better ‘22

Alibaba's big discounts on valuations to its Tech peers, and reduced short interest, indicate that regulatory concerns and the risk of NYSE...

Victor Galliano

Tencent Receives Approval for App Updates but Faces New Hurdles

Tencent has received regulatory approval to resume regular updates in the app stores. However, the company is now facing new hurdles with an...

Shifara Samsudeen, ACMA, CGMA

Tencent Short to Pressure Test 410 Pivot Target

Tencent short bet from 510 is panning out with a target of 410, representing a major inflection support that if broken would induce additional...

Thomas Schroeder

Alibaba (BABA US) Investor Day Takeaways - The SEA Blue Sky

Alibaba announced plans to focus on SEA e-commerce amid growth concerns. We examine a blue sky scenario for the planned expansion and associated...

Jason Yap, CFA

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