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.

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi Corp (1810 HK)</a> reported its 2Q2021 results on Wednesday (25th August) which saw revenues grow 64.0% YoY to RMB88bn (vs consensus revenue of RMB84.1bn) while reported operating profit for the quarter grew 98.1% to RMB10.7bn (vs consensus OP of RMB6.2bn). The adjusted operating profit for the quarter grew 194.1% to RMB5.5bn excluding fair value changes and share of profit from investments accounted for using the equity method.In our previous insight on Xiaomi, we highlighted that the company has beaten iPhone maker Apple to become the second-largest smartphone maker in the world with a market share of 16.7% based on the shipment volume in the second quarter of 2021 (source: Canalys).Xiaomi also announced that it has agreed to acquire autonomous driving technology company Deepmotion for US$77.3m as the company focuses on electric vehicles for growth.

Xiaomi Corp (1810 HK) reported its 2Q2021 results on Wednesday (25th August) which saw revenues grow 64.0% YoY to RMB88bn (vs consensus revenue of RMB84.1bn) while reported operating profit for the quarter grew 98.1% to RMB10.7bn (vs consensus OP of RMB6.2bn). The adjusted operating profit for the quarter grew 194.1% to RMB5.5bn excluding fair value changes and share of profit from investments accounted for using the equity method.In our previous insight on Xiaomi, we highlighted that the company has beaten iPhone maker Apple to become the second-largest smartphone maker in the world with a market share of 16.7% based on the shipment volume in the second quarter of 2021 (source: Canalys).Xiaomi also announced that it has agreed to acquire autonomous driving technology company Deepmotion for US$77.3m as the company focuses on electric vehicles for growth.

Xiaomi: Market Share Gains Support Revenue Beat; Acquires Deepmotion to Focus on EVs

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

In our weekly HK Connect Flow series, we aim to highlight key stocks and sectors which the mainland investors traded via the southbound Hong Kong Connect, as analyzed by our proprietary data engine. Since the opening of Hong Kong Connect scheme in 2014, southbound Chinese money started to play an increasingly important role in the Hong Kong stock market. In a Hong Kong exchange report released in July 2019, the exchange highlighted that flows from mainland China accounted for 12% of the total trading volume in the market and is ahead of the US investors' 10% and UK investors' 7% share respectively.  We split the stocks eligible for the Hong Kong Connect trade into three groups: HSCEI component stocks, stocks with a market capitalization between USD 1 billion and USD 5 billion, and stocks with a market capitalization between USD 500 million and USD 1 billion. In this insight, we will highlight inflows into China Mobile Limited (941 HK), and Geely Automobile Holdings Limited (175 HK), as well as outflows from Wuxi Biologics (Cayman) Inc. (2269 HK), Tencent Holdings Limited (700 HK), and Xiaomi Corporation (1810 HK).

In our weekly HK Connect Flow series, we aim to highlight key stocks and sectors which the mainland investors traded via the southbound Hong Kong Connect, as analyzed by our proprietary data engine.  Since the opening of Hong Kong Connect scheme in 2014, southbound Chinese money started to play an increasingly important role in the Hong Kong stock market. In a Hong Kong exchange report released in July 2019, the exchange highlighted that flows from mainland China accounted for 12% of the total trading volume in the market and is ahead of the US investors' 10% and UK investors' 7% share respectively.   We split the stocks eligible for the Hong Kong Connect trade into three groups: HSCEI component stocks, stocks with a market capitalization between USD 1 billion and USD 5 billion, and stocks with a market capitalization between USD 500 million and USD 1 billion.  In this insight, we will highlight inflows into China Mobile Limited (941 HK), and Geely Automobile Holdings Limited (175 HK), as well as outflows from Wuxi Biologics (Cayman) Inc. (2269 HK), Tencent Holdings Limited (700 HK), and Xiaomi Corporation (1810 HK).

Hong Kong Connect Flows: Wuxi Biologics, Tencent, Xiaomi Led Outflows

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

The Hang Seng Indexes Company Limited (HSIL) announced the results of its review of the Hang Seng Family of Indexes post market close on 20 August. The constituent changes will be effective after the close of trading on 3 September.For the <a href="https://www.smartkarma.com/entities/hang-seng-tech-index" target="_blank" data-smartkarma-citation="entities:31367:1" rel="noopener">Hang Seng Tech Index (HSTECH INDEX)</a> there is one set of changes with Trip.com (9961 HK) / <a href="https://www.smartkarma.com/entities/trip-com-group-ltd" target="_blank" data-smartkarma-citation="entities:180:1" rel="noopener">Trip.com (TCOM US)</a> replacing <a href="https://www.smartkarma.com/entities/koolearn-technology-holding" target="_blank" data-smartkarma-citation="entities:27796:1" rel="noopener">Koolearn (1797 HK)</a>.One-way turnover is estimated at 6.29% and will result in a one-way trade of HK$2.12bn.There will be over 2 days of ADV to trade on Trip.com while the impact of passive fund selling on <a href="https://www.smartkarma.com/entities/koolearn-technology-holding" target="_blank" data-smartkarma-citation="entities:27796:1" rel="noopener">Koolearn (1797 HK)</a> will be a lot smaller.Hang Seng has also announced that a market review and feedback will result in 'Autonomous' being added to the list of eligible technology themes for index inclusion. This means that <a href="https://www.smartkarma.com/entities/xpeng-inc-4cc65854-d10c-4d20-bf7e-ca0e016715ff" target="_blank" data-smartkarma-citation="entities:33772:1" rel="noopener">XPeng (9868 HK)</a> and <a href="https://www.smartkarma.com/entities/li-auto-inc-3dbe6187-544f-40dd-b9f9-72fba9c0110e" target="_blank" data-smartkarma-citation="entities:33811:1" rel="noopener">Li Auto (2015 HK)</a> will be eligible for inclusion in the index at the December rebalance.

The Hang Seng Indexes Company Limited (HSIL) announced the results of its review of the Hang Seng Family of Indexes post market close on 20 August. The constituent changes will be effective after the close of trading on 3 September.For the Hang Seng Tech Index (HSTECH INDEX) there is one set of changes with Trip.com (9961 HK) / Trip.com (TCOM US) replacing Koolearn (1797 HK).One-way turnover is estimated at 6.29% and will result in a one-way trade of HK$2.12bn.There will be over 2 days of ADV to trade on Trip.com while the impact of passive fund selling on Koolearn (1797 HK) will be a lot smaller.Hang Seng has also announced that a market review and feedback will result in 'Autonomous' being added to the list of eligible technology themes for index inclusion. This means that XPeng (9868 HK) and Li Auto (2015 HK) will be eligible for inclusion in the index at the December rebalance.

HSTECH Index Rebalance: One Change; More at the Next Review

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

<ul class="">
<li>Xiaomi’s global smartphone shipments exceeded Apple.</li>
<li>The company’s shipment growth is the most rapid in and outside of China.</li>
<li>We believe the IoT business enjoys a low comparison base in 2020.</li>
<li>We also believe both the revenue growth and the operating margin will improve in 2021.</li>
</ul>


Xiaomi’s global smartphone shipments exceeded Apple.
The company’s shipment growth is the most rapid in and outside of China.
We believe the IoT business enjoys a low comparison base in 2020.
We also believe both the revenue growth and the operating margin will improve in 2021.


Xiaomi (1810 HK): Sold More Smartphones Than Apple, Expect Higher Growth and Margin

Hong Kong Exchange publishes share repurchases by listed companies on a daily basis. In our weekly note, we will provide statistics on top repurchases over one week, one month, one quarter and one year periods ended on Jul 30.In the past 7 days, the top 3 companies that repurchased the most shares from the market were  <a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi Corp (1810 HK)</a> (HKD 196.9 million worth of buybacks), <a href="https://www.smartkarma.com/entities/new-world-development" target="_blank" data-smartkarma-citation="entities:7037:1" rel="noopener">New World Development (17 HK)</a> (HKD 170.2 million worth of buybacks), <a href="https://www.smartkarma.com/entities/china-gas-holdings-ltd" target="_blank" data-smartkarma-citation="entities:14315:1" rel="noopener">China Gas Holdings (384 HK)</a> (HKD 86.6 million worth of buybacks).

Hong Kong Exchange publishes share repurchases by listed companies on a daily basis. In our weekly note, we will provide statistics on top repurchases over one week, one month, one quarter and one year periods ended on Jul 30.In the past 7 days, the top 3 companies that repurchased the most shares from the market were  Xiaomi Corp (1810 HK) (HKD 196.9 million worth of buybacks), New World Development (17 HK) (HKD 170.2 million worth of buybacks), China Gas Holdings (384 HK) (HKD 86.6 million worth of buybacks).

Hong Kong Buybacks: HK$200m Buyback by Xiaomi

China

Xiaomi Corporation manufactures communication equipment and parts. The Company produces and sells mobile phones, smart phone software,  set-top boxes, and related accessories. Xiaomi markets its products worldwide.

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Xiaomi Corp (1810 HK)

Hong Kong Connect Flows: Wuxi Biologics, Tencent, Xiaomi Led Outflows

We highlight top three stocks that led the outflows last week were Wuxi Biologics (2269 HK), Tencent (700 HK), and Xiaomi (1810 HK).

Ke Yan, CFA, FRM

HSTECH Index Rebalance: One Change; More at the Next Review

Trip.com replaces Koolearn in the HSTECH Index. Alibaba's weight will drop by over 3%. Benchmarked assets have risen a lot. One-way turnover is...

Brian Freitas

Xiaomi (1810 HK): Sold More Smartphones Than Apple, Expect Higher Growth and Margin

Xiaomi’s global smartphone shipments exceeded Apple. The company’s shipment growth is the most rapid in and outside of China. We also believe the...

Ming Lu

Hong Kong Buybacks: HK$200m Buyback by Xiaomi

We highlight the top 3 companies that repurchased the most shares from the market this week were Xiaomi (1810 HK), New World Development (17 HK),...

Ke Yan, CFA, FRM

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Xiaomi: Market Share Gains Support Revenue Beat; Acquires Deepmotion to Focus on EVs

Xiaomi reported 64% YoY growth in revenue in 2Q2021 driven by solid performance of smartphones. Market share gains globally and in Mainland China...

Shifara Samsudeen, ACMA, CGMA

Hong Kong Connect Flows: Wuxi Biologics, Tencent, Xiaomi Led Outflows

We highlight top three stocks that led the outflows last week were Wuxi Biologics (2269 HK), Tencent (700 HK), and Xiaomi (1810 HK).

Ke Yan, CFA, FRM

HSTECH Index Rebalance: One Change; More at the Next Review

Trip.com replaces Koolearn in the HSTECH Index. Alibaba's weight will drop by over 3%. Benchmarked assets have risen a lot. One-way turnover is...

Brian Freitas

Xiaomi (1810 HK): Sold More Smartphones Than Apple, Expect Higher Growth and Margin

Xiaomi’s global smartphone shipments exceeded Apple. The company’s shipment growth is the most rapid in and outside of China. We also believe the...

Ming Lu

Hong Kong Buybacks: HK$200m Buyback by Xiaomi

We highlight the top 3 companies that repurchased the most shares from the market this week were Xiaomi (1810 HK), New World Development (17 HK),...

Ke Yan, CFA, FRM