Greater China Equity Long/Short Analyst

Eric Chen

Equity Bottom-Up

<ul>
<li>Company's second largest shareholder General Atlantic sold out entire holdings at 5.9% to 6.4% discount to Monday close. </li>
<li>The placement reflected mainly General Atlantic's attempt to time market to recoup a 10-year investment instead of any negative read of company fundamentals, in our view.</li>
<li>Recent newsflow continues pointing to steady recovery in all business lines of Xiabu group.  Its valuation discount relative to peers  has not captured strong turnaround prospects. Sector top pick. </li>
</ul>


Company's second largest shareholder General Atlantic sold out entire holdings at 5.9% to 6.4% discount to Monday close. 
The placement reflected mainly General Atlantic's attempt to time market to recoup a 10-year investment instead of any negative read of company fundamentals, in our view.
Recent newsflow continues pointing to steady recovery in all business lines of Xiabu group.  Its valuation discount relative to peers  has not captured strong turnaround prospects. Sector top pick. 


Xiabuxiabu (520 HK): GA Clean-Up Trade Not a Concern

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

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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.

Quantitative Analysis

<ul>
<li>We analyze the monthly Hong Kong Connect flows with our data engine.</li>
<li>We tabulate the top stocks by inflows, outlfows, and holding by mainland investors.</li>
<li>We highlight inflows into Meituan, HKEX, China Unicom, Shenzhou Intl, Sensetime, and outflows from Xiaomi, HSBC, Anta Sports, China Pacific.</li>
</ul>


We analyze the monthly Hong Kong Connect flows with our data engine.
We tabulate the top stocks by inflows, outlfows, and holding by mainland investors.
We highlight inflows into Meituan, HKEX, China Unicom, Shenzhou Intl, Sensetime, and outflows from Xiaomi, HSBC, Anta Sports, China Pacific.


Hong Kong Connect Flows Monthly: 12 Months of Inflows

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Super Hi International Holding / Equity Bottom-Up

<ul>
<li>On 30 December, Super Hi International Holding (9658 HK) completed its separate listing in HK from Haidilao by the way of introduction. The trading has been highly volatile so far.</li>
<li>Our base case valuation of Super Hi International is target price of HKD13.6 per share, which represents a 40% upside from current levels.</li>
<li>The same store sales at Super Hi improved significantly in nearly all major regions in 1H 2022. </li>
</ul>


On 30 December, Super Hi International Holding (9658 HK) completed its separate listing in HK from Haidilao by the way of introduction. The trading has been highly volatile so far.
Our base case valuation of Super Hi International is target price of HKD13.6 per share, which represents a 40% upside from current levels.
The same store sales at Super Hi improved significantly in nearly all major regions in 1H 2022. 


Super Hi International: Trading Dynamics Post Listing Amid High Volatility

HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>While China's U-turn on COVID policy is expected to bring consumption rebound in 2023, the near-term surge in infections will weigh negatively on retail sales in Dec and Jan.</li>
<li>Residents are spending more time at home in the first wave, with subways and shopping malls empty. We think this will cast negativity on 4Q22 and 1Q23 consumer discretionary profit.</li>
<li>It is prudent to take some monies off the table, particularly F&amp;B stocks like <a href="https://www.smartkarma.com/entities/haidilao-international-holding-ltd" target="_blank" data-smartkarma-citation="entities:27044:1" rel="noopener">Haidilao (6862 HK)</a>, <a href="https://www.smartkarma.com/entities/xiabuxiabu-catering-mgt-chn-hldgs-co-ltd" target="_blank" data-smartkarma-citation="entities:76:1" rel="noopener">Xiabuxiabu (520 HK)</a> and <a href="https://www.smartkarma.com/entities/helen-s-international-holdings" target="_blank" data-smartkarma-citation="entities:34113:1" rel="noopener">Helen's (9869 HK)</a> which have almost doubled from trough.</li>
</ul>


While China's U-turn on COVID policy is expected to bring consumption rebound in 2023, the near-term surge in infections will weigh negatively on retail sales in Dec and Jan.
Residents are spending more time at home in the first wave, with subways and shopping malls empty. We think this will cast negativity on 4Q22 and 1Q23 consumer discretionary profit.
It is prudent to take some monies off the table, particularly F&amp;B stocks like Haidilao (6862 HK), Xiabuxiabu (520 HK) and Helen's (9869 HK) which have almost doubled from trough.


China COVID Policy: Near-Term Pains for Consumer Discretionary

<ul>
<li>IQIYI DAU surpassed 100 million  for the first time since 2020</li>
<li>Recovering China advertising market and industry' optimistic outlook for 2023 </li>
<li>COVID infection rates in China, third growth driver of Xiabuxiabu</li>
</ul>


IQIYI DAU surpassed 100 million  for the first time since 2020
Recovering China advertising market and industry' optimistic outlook for 2023 
COVID infection rates in China, third growth driver of Xiabuxiabu


Heard on the Bund – China TMT and Consumer Bi-Weekly

China

Xiabuxiabu Catering Management China Holdings Co Ltd  owns and operates a chain of restaurants in China. The company allows customers to choose from a selection of vegetables, meats, and seafood to cook in their own individual hot pot in its restaurants.

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

Xiabuxiabu Catering (520 HK)

Xiabuxiabu (520 HK): GA Clean-Up Trade Not a Concern

General Atlantic's clean-up Xiabu share placement reflected mainly its attempt to time market to recoup a 10-year investment instead of any...

Eric Chen

Hong Kong Connect Flows Monthly: 12 Months of Inflows

We analyzed the Hong Kong Connect Scheme for December and highlight flows for Meituan, HKEX, China Unicom, Shenzhou Intl, Sensetime, Xiaomi, HSBC,...

Ke Yan, CFA, FRM

Super Hi International: Trading Dynamics Post Listing Amid High Volatility

Our base case valuation of Super Hi International is target price of HKD13.6 per share, which represents a 40% upside from current levels.

Douglas Kim

China COVID Policy: Near-Term Pains for Consumer Discretionary

Near-term negative impact of China's U-turn in COVID policy on consumer discretionary has been underestimated by the market. It is prudent to take...

Osbert Tang, CFA

Heard on the Bund – China TMT and Consumer Bi-Weekly

IQIYI DAU surge, recovering China advertising market, COVID infection rates by cities in China, Third growth driver of Xiabuxiabu

Eric Chen

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)