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>Travelers increased by 75% YoY and traveling spending increased by 144% YoY in China in 9M2023.</li>
<li>TCOM’s total revenue rose by 31% in 3Q23 over 3Q19 before COVID.</li>
<li>We conclude an upside of 33% and a price target of US$43.70.</li>
</ul>


Travelers increased by 75% YoY and traveling spending increased by 144% YoY in China in 9M2023.
TCOM’s total revenue rose by 31% in 3Q23 over 3Q19 before COVID.
We conclude an upside of 33% and a price target of US$43.70.


Trip.com (TCOM US, 9961 HK): Revenue 30% Above Pre-COVID Level

Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Tracking Traffic

Focusing on Asian logistics, transportation, and travel companies

<ul>
<li>In October, the sluggish recovery in outbound tourism demand continued</li>
<li>Outbound capacity growth also timid; but domestic recovery is mostly complete</li>
<li>As growth stock, Trip.com's disappointed; maybe it can attract value investors?</li>
</ul>


In October, the sluggish recovery in outbound tourism demand continued
Outbound capacity growth also timid; but domestic recovery is mostly complete
As growth stock, Trip.com's disappointed; maybe it can attract value investors?


Monthly Chinese Tourism Tracker | Recovery Still Sluggish | Trip.com as Value Name | (November 2023)

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>Trip.com Group (TCOM) announced (21 Nov) 3Q23 results: net revenue was RMB13.7bn, up 99% YoY, in line with both our forecast and Bloomberg consensus expectation, and was 31% higher than 3Q19 level.</li><li>Non-GAAP operating income (OP) was RMB4.4bn, 6% better than our forecast, thanks to a better-than-expected GPM driven by better-than-expected operating leverage, and more efficient-than-expected sales and marketing spend.</li><li>Recovery of outbound travel business on QTD basis in 4Q23 is slightly slower than our previous expectation owing to the slower-than-expected recovery in international flights in the short term, while TCOM’s outbound travel business is on track to see full recovery in 2024 given that consumer demand remains healthy. </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>

Trip.com Group (TCOM) announced (21 Nov) 3Q23 results: net revenue was RMB13.7bn, up 99% YoY, in line with both our forecast and Bloomberg consensus expectation, and was 31% higher than 3Q19 level.Non-GAAP operating income (OP) was RMB4.4bn, 6% better than our forecast, thanks to a better-than-expected GPM driven by better-than-expected operating leverage, and more efficient-than-expected sales and marketing spend.Recovery of outbound travel business on QTD basis in 4Q23 is slightly slower than our previous expectation owing to the slower-than-expected recovery in international flights in the short term, while TCOM’s outbound travel business is on track to see full recovery in 2024 given that consumer demand remains healthy. 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.

Trip.com (TCOM US) – Release of Pent-Up Demand as Expected

<ul>
<li>Trip.com reported strong Q3 earnings, reflecting 2023's ongoing tourism revival</li>
<li>Net Income beat expectations, and company made progress on expense control</li>
<li>But we don't see "game-changing" numbers in Trip.com's latest earnings release</li>
</ul>


Trip.com reported strong Q3 earnings, reflecting 2023's ongoing tourism revival
Net Income beat expectations, and company made progress on expense control
But we don't see "game-changing" numbers in Trip.com's latest earnings release


Trip.com Q3 Quick Take: Net Inc > Consensus | Progress on Expenses | But Not a Game-Changer

<ul>
<li>September outbound tourism metrics plummeted, in some cases to levels seen in Q223</li>
<li>Domestic air travel demand also fell vs August; normal seasonal patterns are dominating</li>
<li>As recovery fizzles, travel shares languish, and we see few reasons for optimism, near-term</li>
</ul>


September outbound tourism metrics plummeted, in some cases to levels seen in Q223
Domestic air travel demand also fell vs August; normal seasonal patterns are dominating
As recovery fizzles, travel shares languish, and we see few reasons for optimism, near-term


Monthly Chinese Tourism Tracker | Tourism Recovery Derailed By Normal Seasonality | (October 2023)

China

JD.com Inc is an online direct sales company in China.  The Company offers a wide selection of products through its website and mobile applications.  JD.com sells appliances, computers, digital products, communication products, garments, books, and household items to consumers and vendors.

Vipshop Holdings Ltd. retails branded products at discount over the Internet. The Company retails through flash sales, in which limited quantities of an item are sold at deep discount for a specified period of time.

Mango Excellent Media Co.,Ltd. offers television based services. The Company provides television shopping, online shopping, outbound shopping, and other services. Mango Excellent Media also operates new media platform operation.

Cogobuy Group provides an e-commerce platform for electronic goods in China. The Company promarily deals with computer and telecommunication hardware. Cogobuy and it's subsidiaries operate in China and distribute their products globally.

Hainan Island Construction Co Ltd.  is a property development company. The Company also operates regional malls and hotels.

Zhongsheng Group Holdings Ltd. retails automobiles.  The Company imports and retails primarily luxury and mid- to high-end automobile brands.

Guangzhou Friendship Group Co., Ltd operates supermarkets and department stores in Guangzhou, China.  The Company sells a variety of consumer products, including apparel, food and beverages, electronics, jewelry, cosmetics, and electric appliances.  Guangzhou Friendship also leases real estate properties.

Guangzhou Friendship Group Co, Ltd. (000987 CH)

Wuchan Zhongda Group Co.,Ltd. offers supply chain services. The Company purchases and distributes metal materials, ores, automobiles, chemicals, rubbers, and energy products. Wuchan Zhongda Group also conducts finance, medical, thermal power, and public utility businesses.

Shanghai Yuyuan Tourist Mart Co., Ltd. processes gold and operates jewelry stores.  The Company also manages department stores, provides import and export trading service, produces pharmaceutical products, offers food service, and develops real estate properties.

Wangfujing Group Co., Ltd. owns and operates department stores in Beijing, Guangzhou, Chengdu, Wuhan, and other cities in China.  The Company also develops residential real estate.

Expedia Group, Inc. provides branded online travel services for leisure and small business travelers. The Company offers a wide range of travel shopping and reservation services, providing real-time access to schedule, pricing and availability information for airlines, hotels, and car rental companies.

Zomato Limited is an online restaurant guide and food ordering platform. The Company offers platform connects customers, restaurant partners and delivery partners to search and discover restaurants, read and write customer generated reviews, order food delivery, book a table, and make payments while dining-out at restaurants. Zomato serves customers worldwide.

Etsy, Inc. provides e-commerce services. The Company offers handmade and vintage items, art, and supplies, as well as regular items such as clothing, housewares, paper goods, candles, bags and purses, music, and wood working items. Etsy serves users throughout the United States.

Wayfair Inc. retails household goods online. The Company offers bedroom, living room, kitchen and dining, home entertainment, home office, game room and bar, patio, hallway and entryway, and bathroom furniture. Wayfair offers products and services in the United States.

ZOZO Inc operates internet shopping sites for apparel.  The Company also provides communication services relating to apparel such as blogs by fashion moguls and internet chat room for users.

Ocado Group PLC distributes a wide range of retail consumer products.  The Company provides home delivery of a wide range of products including food and drink, toiletries and baby, household, pet care, and holiday products.

Momo.com Inc is an e-commerce services company. The Company offers TV shopping and Internet shopping services, including beauty products, clothing, leather goods and food shops.

TripAdvisor Inc. is an online travel research company. The Company's travel research platform aggregates reviews and opinions of members about destinations, accommodations (including hotels, bed and breakfasts ("B&Bs"), specialty lodging and vacation rentals), restaurants and activities throughout the world.

Webjet Limited provides branded online travel services for travelers.  The Company offers one-stop travel shopping and reservation services, providing real-time access to schedule, pricing, and availability information for airlines hotels, and major car rental companies.

ASKUL Corporation sells office equipment products to medium and small sized business offices via the Internet and facsimiles.  The Company provides next day delivery services throughout Japan.

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

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

Trip.com (TCOM US)

Trip.com (TCOM US, 9961 HK): Revenue 30% Above Pre-COVID Level

Travelers increased by 75% YoY and traveling spending increased by 144% YoY in China in 9M2023. TCOM’s total revenue rose by 31% in 3Q23 over 3Q19...

Ming Lu

Monthly Chinese Tourism Tracker | Recovery Still Sluggish | Trip.com as Value Name | (November 2023)

October outbound demand increased vs September but remains below pre-pandemic levels. We've long viewed Trip.com negatively as a growth stock, but...

Tracking Traffic

Trip.com (TCOM US) – Release of Pent-Up Demand as Expected

Trip.com Group (TCOM) announced (21 Nov) 3Q23 results: net revenue was RMB13.7bn, up 99% YoY, in line with both our forecast and Bloomberg...

CMB International

Trip.com Q3 Quick Take: Net Inc > Consensus | Progress on Expenses | But Not a Game-Changer

Trip.com reported Q323 results that featured strong top-line growth, sharp Y/Y improvement in margins, and progress on cost control. But its Q323...

Tracking Traffic

Monthly Chinese Tourism Tracker | Tourism Recovery Derailed By Normal Seasonality | (October 2023)

Outbound tourism activity in September declined vs August, in some cases down to levels seen in Q2. Domestic activity also disappointed, and we see...

Tracking Traffic

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)