Global Mobility/Transport, Equity Long-Short

Mohshin Aziz

Thematic (Sector/Industry)

<ul>
<li>China is expanding its list of countries allowed to enter visa-free. A good gesture to make China more friendly to foreigners and one step closer to global best practices </li>
<li>Chinese major airlines and airports can become more desirable global aviation hubs, assuming they play their cards right </li>
<li>Doubt much can change in a year, but the seeds are sown for stiffer competition for airlines with a hub-and-spoke strategy in North Asia</li>
</ul>


China is expanding its list of countries allowed to enter visa-free. A good gesture to make China more friendly to foreigners and one step closer to global best practices 
Chinese major airlines and airports can become more desirable global aviation hubs, assuming they play their cards right 
Doubt much can change in a year, but the seeds are sown for stiffer competition for airlines with a hub-and-spoke strategy in North Asia


China to Provide Visa-Free for Six Countries - Why and The (Possible) Impact

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.

Equity Bottom-Up

<ul>
<li>Trip.com's domestic hotel bookings increased by 70% over pre-COVID 3Q19.</li>
<li>Xiaomi's revenue began to grow in 3Q23 after decreasing for five quarters.</li>
<li>China home appliance export surged in October, for example, fridge export amount growing by 42% YoY.</li>
</ul>


Trip.com's domestic hotel bookings increased by 70% over pre-COVID 3Q19.
Xiaomi's revenue began to grow in 3Q23 after decreasing for five quarters.
China home appliance export surged in October, for example, fridge export amount growing by 42% YoY.


China Consumption Weekly (27 Nov 2023): Trip.com, Xiaomi, IQiyi, Full Truck, Home Appliance Export

HK/China Equity Long-Short

Osbert Tang, CFA

Tongcheng Travel Holdings  / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/tongcheng-travel-holdings-ltd" target="_blank" data-smartkarma-citation="entities:27363:1" rel="noopener">Tongcheng Travel Holdings (780 HK)</a> is best positioned to capture post-COVID travel, especially in lower-tier cities. This is reflected in a 146.5% growth in 3Q23 adjusted net profit.</li>
<li>The cooperation with <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> continues to bear fruits and will drive accelerated momentum as it leverages on QQ Browser, Weixin mini-program, and Tencent Docs.</li>
<li>3Q23 net cash increased 1.5x from the end-FY22 level and now represents 10.9% of market capitalisation. Its earnings valuations are attractive relative to both growth and peers.</li>
</ul>



Tongcheng Travel Holdings (780 HK) is best positioned to capture post-COVID travel, especially in lower-tier cities. This is reflected in a 146.5% growth in 3Q23 adjusted net profit.
The cooperation with Tencent (700 HK) continues to bear fruits and will drive accelerated momentum as it leverages on QQ Browser, Weixin mini-program, and Tencent Docs.
3Q23 net cash increased 1.5x from the end-FY22 level and now represents 10.9% of market capitalisation. Its earnings valuations are attractive relative to both growth and peers.


Tongcheng Travel (780 HK): Rides on the Tourism Upswing

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

Quantitative Analysis

<ul>
<li>We analyzed the latest HK SFC report for aggregate short position as of Sep 15th.</li>
<li>Top short increases and decreases were tabulated for one week and four week period. </li>
<li>We highlight short changes in Innovent Bio, Trip.Com, Nio, Baba, Zto Express, HSBC.</li>
</ul>


We analyzed the latest HK SFC report for aggregate short position as of Sep 15th.
Top short increases and decreases were tabulated for one week and four week period. 
We highlight short changes in Innovent Bio, Trip.Com, Nio, Baba, Zto Express, HSBC.


HK Short Interest Weekly: Innovent Bio, Trip.Com, Nio, Baba, Zto Express, HSBC

<ul>
<li>The 2Q23 earnings performance for China's tourism and hospitality stocks provides clear evidence for the sector's operational recovery. This will become even stronger into 2H23.</li>
<li>Forward bookings for <a href="https://www.smartkarma.com/entities/tongcheng-travel-holdings-ltd" target="_blank" data-smartkarma-citation="entities:27363:1" rel="noopener">Tongcheng Travel (780 HK)</a>, <a href="https://www.smartkarma.com/entities/trip-com-group-ltd-23a341d0-4f63-4175-a8c5-ee990906cacd" target="_blank" data-smartkarma-citation="entities:36424:1" rel="noopener">Trip.com Group (9961 HK)</a>, <a href="https://www.smartkarma.com/entities/h-world-group-ltd" target="_blank" data-smartkarma-citation="entities:33487:1" rel="noopener">H World Grp (1179 HK)</a> and <a href="https://www.smartkarma.com/entities/fosun-tourism-group" target="_blank" data-smartkarma-citation="entities:27439:1" rel="noopener">Fosun Tourism (1992 HK)</a> all point to encouraging underlying demand.</li>
<li>Despite recent strengths in share price, consensus earnings upgrades have made their valuations even cheaper than three months ago.</li>
</ul>


The 2Q23 earnings performance for China's tourism and hospitality stocks provides clear evidence for the sector's operational recovery. This will become even stronger into 2H23.
Forward bookings for Tongcheng Travel (780 HK), Trip.com Group (9961 HK), H World Grp (1179 HK) and Fosun Tourism (1992 HK) all point to encouraging underlying demand.
Despite recent strengths in share price, consensus earnings upgrades have made their valuations even cheaper than three months ago.


China Tourism and Hospitality Industry: Pent-Up Demand Drives Robust Outlook

China

China Tourism Group Duty Free Corporation Limited engages in sales of duty free goods and tax goods. The Company sells tobacco, wine and spirits, perfume, cosmetics, fashion and accessories, watches, jewelry, food, luggage products,and other products. China Tourism Group Duty Free also engages in investment and development of tourism destination commercial complexes.

China Tourism Group Duty Free Corp Ltd (601888 CH)

Huazhu Group Limited operates a hotel operator and franchisor. The Company provides hotel leasing, directly hotel operation, and co-development services. Huazhu Group mainly conducts businesses in China.

Haidilao International Holding Ltd. operates Chinese cuisine restaurant brand focusing on hot pot cuisine. The Company provides hot pots, soup bases, dipping sauces, drinks, prepared food, and other products. Haidilao International Holding opens restaurants in Taiwan, Hong Kong, Singapore, South Korea, Japan, and the United States.

Tongcheng Travel Holdings Limited operates as an online travel agency. The Company provides transportation ticketing, accommodation reservation, value added travel products sales, and other services. Tongcheng Travel Holdings provides its services throughout China.

Shenzhen Overseas Chinese Town Co Ltd invests in and manages theme parks in China.  The Company, through its subsidiaries, also provides travel agency service.

Shenzhen Overseas Chinese (A) (000069 CH)

Songcheng Performance Development Co., LTD invests, develops and operates theme parks and tourism cultural performing arts. The Company's major projects include the Sungcheng theme park and the cultural performing arts musical "The Romance of the Song Dynasty".

Songcheng Performance Development (300144 CH)

Giant Network Group Co., Ltd. develops online games. The Company mainly develops, operates, and sells computer terminal network game and mobile terminal network game products. Giant Network Group provides services in China.

Shanghai Jinjiang International Hotels Co.,Ltd. owns and operates hotels.  The Company also provides catering, business, entertainment, and other services. Shanghai Jinjiang International Hotels conducts its business in China.

Shanghai Jinjiang Internationa (600754 CH)

BTG Hotels (Group) Co., Ltd. operates a tourism business.  The Company also invests in hotel and restaurant management, as well as provides advertising and exhibition center management services.

China CYTS Tours Holding Co., Ltd. provides travel information and arrangement services.  Through its subsidiaries, the Company also manufactures medical instrument, provides system integration services for the insurance industry, and develops real estate.

Sands China Ltd. develops, owns, and operates integrated resorts, retail malls, and casinos. The Company also manages convention and exhibition halls in Macau.

Wynn Resorts, Limited owns and operates luxury hotels and destination casino resorts in Las Vegas, Nevada, Macau, and China. The Company offers amenities such as guest rooms and suites, restaurants, golf course, and an on-site luxury automotive dealership.

Galaxy Entertainment Group Limited, through its subsidiary, operates casino, hotel and other entertainment facilities in Macau. The company also manufactures sells and distributes construction materials.

Las Vegas Sands Corp. owns and operates casino resorts and convention centers. The Company operates in the United States, Macau and Singapore. Las Vegas Sand Corp's casinos offer a wide range of gaming activities and entertainment as well as overnight accommodations, while its expo centers host a wide range of entertainment shows, expositions, and other activities.

Yum! Brands, Inc, owns and franchises quick-service restaurants worldwide.  The Company develops, operates, franchises and licenses a worldwide system of restaurants which prepare, package and sell a menu of food items.

Royal Caribbean Cruises Ltd. is a global cruise company operating a fleet of vessels in the cruise vacation industry. The Company operates through brands which primarily serve the contemporary, premium and deluxe segments of the cruise vacation industry, which also includes the budget and luxury segments.

Hyatt Hotels Corp. is a global hospitality company. The Company manages, franchises, owns, and develops branded hotels, resorts and residential and vacation ownership properties around the world.

Norwegian Cruise Line Holdings Ltd. operates a fleet of passenger cruise ships. The Company offers an array of cruise itineraries as well as theme cruises, while markets its services through various distribution channels including retail and travel agents, consumer direct, international sales, as well as incentive sales. Norwegian Cruise extends its services worldwide.

Wingstop Inc. owns and operates restaurants. The Company specializes in cooked-to-order, hand-sauced, and tossed chicken wings. Wingstop serves customers worldwide.

Indian Hotels Company Limited operates The Taj Group of hotels.  The Company owns or maintains long term leases/licenses for hotels in India, in addition to International hotels.  The Group's hotels are divided into three groups: Luxury, Business, and, Leisure.

Trip.com Group Limited provides online travel agency services. The Company offers mobile applications, hotel reservations, flight ticketing, package tours, corporate travel management, and train ticketing services. Trip.com Group provides services worldwide.

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

Trip.com Group (9961 HK)

China to Provide Visa-Free for Six Countries - Why and The (Possible) Impact

China is opening visa-free entry for more countries, aiming to improve its global image and become a preferred aviation hub in North Asia. Could...

Mohshin Aziz

China Consumption Weekly (27 Nov 2023): Trip.com, Xiaomi, IQiyi, Full Truck, Home Appliance Export

Trip.com’s domestic hotel bookings increased 70% over pre-COVID 3Q19. Xiaomi’s revenue began to grow in 3Q23 after decreasing for five quarters....

Ming Lu

Tongcheng Travel (780 HK): Rides on the Tourism Upswing

Tongcheng is thriving post-COVID, with a 146.5% growth in adjusted net profit in 3Q23. Cooperation with Tencent is driving momentum and...

Osbert Tang, CFA

HK Short Interest Weekly: Innovent Bio, Trip.Com, Nio, Baba, Zto Express, HSBC

We analyzed the latest HK SFC report for aggregate short position as of Sep 15th and highlight short interest changes in Innovent Bio, Trip.Com,...

Ke Yan, CFA, FRM

China Tourism and Hospitality Industry: Pent-Up Demand Drives Robust Outlook

China's tourism-related stocks showed strong 2Q23 earnings recovery, with forward bookings indicating promising demand. Despite higher share...

Osbert Tang, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

China to Provide Visa-Free for Six Countries - Why and The (Possible) Impact

​China is opening visa-free entry for more countries, aiming to improve its global image and become a preferred aviation hub in North Asia. Could...

Mohshin Aziz

China Consumption Weekly (27 Nov 2023): Trip.com, Xiaomi, IQiyi, Full Truck, Home Appliance Export

Trip.com’s domestic hotel bookings increased 70% over pre-COVID 3Q19. Xiaomi’s revenue began to grow in 3Q23 after decreasing for five quarters....

Ming Lu

Tongcheng Travel (780 HK): Rides on the Tourism Upswing

​Tongcheng is thriving post-COVID, with a 146.5% growth in adjusted net profit in 3Q23. Cooperation with Tencent is driving momentum and...

Osbert Tang, CFA

HK Short Interest Weekly: Innovent Bio, Trip.Com, Nio, Baba, Zto Express, HSBC

We analyzed the latest HK SFC report for aggregate short position as of Sep 15th and highlight short interest changes in Innovent Bio, Trip.Com,...

Ke Yan, CFA, FRM

China Tourism and Hospitality Industry: Pent-Up Demand Drives Robust Outlook

​China's tourism-related stocks showed strong 2Q23 earnings recovery, with forward bookings indicating promising demand. Despite higher share...

Osbert Tang, CFA

China is opening visa-free entry for more countries, aiming to improve its global image and become a preferred aviation hub in North Asia. Could...

Tongcheng is thriving post-COVID, with a 146.5% growth in adjusted net profit in 3Q23. Cooperation with Tencent is driving momentum and...

China's tourism-related stocks showed strong 2Q23 earnings recovery, with forward bookings indicating promising demand. Despite higher share...