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>Tencent reported 1Q23 financial results on 17 May.</li><li>Total revenue was up by 11% YoY to RMB150.0bn in 1Q23, in line with consensus/CMBI estimates of RMB146/148bn.</li><li>Non-IFRS operating income grew by 32% YoY to RMB48.4bn in 1Q23 and beat consensus estimate by 13%, boosted by the reaccelerating top-line growth, expanding GPM and operating leverage. </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>

Tencent reported 1Q23 financial results on 17 May.Total revenue was up by 11% YoY to RMB150.0bn in 1Q23, in line with consensus/CMBI estimates of RMB146/148bn.Non-IFRS operating income grew by 32% YoY to RMB48.4bn in 1Q23 and beat consensus estimate by 13%, boosted by the reaccelerating top-line growth, expanding GPM and operating leverage. 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.

Tencent  (700 HK) – Solid Recovery Across All Business Lines

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>In 1Q23, the revenue growth rose significantly to 11% YoY.</li>
<li>The operating margin also improved significantly to 24% in 1Q23 versus 17% in 1Q22.</li>
<li>We set an upside of 28% and a price target of HK$440 for yearend 2023.</li>
</ul>


In 1Q23, the revenue growth rose significantly to 11% YoY.
The operating margin also improved significantly to 24% in 1Q23 versus 17% in 1Q22.
We set an upside of 28% and a price target of HK$440 for yearend 2023.


Tencent (700 HK): 1Q23, Significant Improvements in Growth and Margin

APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC IPOs & Placements

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/beijing-dmall-e-commerce-co-ltd" target="_blank" data-smartkarma-citation="entities:36623:1" rel="noopener">Dmall Inc (1751691D CH)</a> is looking to raise around US$200m in its upcoming Hong Kong IPO.</li>
<li>Dmall provides cloud-based, end-to-end SaaS platform purpose-built for the Chinese retail industry.</li>
<li>In this note, we will talk about the positive aspects of the deal.</li>
</ul>



Dmall Inc (1751691D CH) is looking to raise around US$200m in its upcoming Hong Kong IPO.
Dmall provides cloud-based, end-to-end SaaS platform purpose-built for the Chinese retail industry.
In this note, we will talk about the positive aspects of the deal.


Dmall Pre-IPO - The Positives - Ambitions of Aiding the Retail Digitization Journey for Retailers

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

<ul>
<li>On May 15th, Tencent holds its annual game conference "Spark 2023" and releases its latest game pipeline, including updates of 15 launched games and 20 new games.</li>
<li>Considering Tencent's large size, only a game that has the potential to exceed RMB 10 bn in annual gross billing could be considered as a positive sign.</li>
<li>Yet, we don't find any game title that could reach over RMB 10bn annualized gross billing in the game pipeline.</li>
</ul>


On May 15th, Tencent holds its annual game conference "Spark 2023" and releases its latest game pipeline, including updates of 15 launched games and 20 new games.
Considering Tencent's large size, only a game that has the potential to exceed RMB 10 bn in annual gross billing could be considered as a positive sign.
Yet, we don't find any game title that could reach over RMB 10bn annualized gross billing in the game pipeline.


Tencent Announced Game Pipeline in Annual Conference "Spark 2023", and Our Estimations

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/rakuten-group-inc" target="_blank" data-smartkarma-citation="entities:31:1" rel="noopener">Rakuten (4755 JP)</a> is looking to raise around US$2.4bn by selling shares via a Japanese Public Offering and an International Offering as well as through a third-party allotment.</li>
<li>The stock has already dropped 13.7% in the last couple of days on large volumes as the rumours of the offering started to swirl.</li>
<li>The offering prices late next week and passive trackers will be buying stock once the stock settles and this will provide support in the near-term.</li>
</ul>



Rakuten (4755 JP) is looking to raise around US$2.4bn by selling shares via a Japanese Public Offering and an International Offering as well as through a third-party allotment.
The stock has already dropped 13.7% in the last couple of days on large volumes as the rumours of the offering started to swirl.
The offering prices late next week and passive trackers will be buying stock once the stock settles and this will provide support in the near-term.


Rakuten (4755 JP) Offering: Could Drop Some More Before Passive Buying Kicks In

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 (700 HK)

Tencent (700 HK) – Solid Recovery Across All Business Lines

Tencent reported 1Q23 financial results on 17 May. Total revenue was up by 11% YoY to RMB150.0bn in 1Q23, in line with consensus/CMBI estimates of...

CMB International

Tencent (700 HK): 1Q23, Significant Improvements in Growth and Margin

In 1Q23, the revenue growth rose significantly to 11% YoY. The operating margin also improved significantly to 24% in 1Q23 versus 17% in 1Q22. We...

Ming Lu

Dmall Pre-IPO - The Positives - Ambitions of Aiding the Retail Digitization Journey for Retailers

Dmall Inc (1751691D CH) is looking to raise around US$200m in its upcoming Hong Kong IPO. In this note, we will talk about the positive aspects of...

Clarence Chu

Tencent Announced Game Pipeline in Annual Conference "Spark 2023", and Our Estimations

On May 15th, Tencent holds its annual game conference "Spark 2023" and releases its latest game pipeline, including updates of 15 launched games...

Blue Lotus Research Institute

Rakuten (4755 JP) Offering: Could Drop Some More Before Passive Buying Kicks In

Rakuten is looking to raise US$2.45bn via a Japanese, International and third-party offering. The stock has dropped 13.7% in the last 2 days and...

Brian Freitas

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