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>Xiaomi delivered better-than-expected earnings in 1Q23 despite challenging economic headwinds, mainly thanks to record-high GPM, improving inventory destocking and efficiency enhancement.</li><li>1Q23 adj. NP grew 13% YoY to RMB 3.23bn, 5%/8% above our/consensus, while revenue was largely in-line with 19% YoY decline.</li><li>Looking into 2H23E, we maintain our positive view on Xiaomi’s earnings recovery driven by premiumization strategy, efficiency enhancement on new retail synergy, and improving internet business. </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>

Xiaomi delivered better-than-expected earnings in 1Q23 despite challenging economic headwinds, mainly thanks to record-high GPM, improving inventory destocking and efficiency enhancement.1Q23 adj. NP grew 13% YoY to RMB 3.23bn, 5%/8% above our/consensus, while revenue was largely in-line with 19% YoY decline.Looking into 2H23E, we maintain our positive view on Xiaomi’s earnings recovery driven by premiumization strategy, efficiency enhancement on new retail synergy, and improving internet business. 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.

Xiaomi (1810 HK) – Impressive Earnings Recovery in 1Q23; Reiterate BUY

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>Xiaomi reported C1Q23 top-line and non-IFRS net income (6.9%) and 20.7% vs. our est., and in-line and 39.9% vs. consensus; </li>
<li>We suggest that higher margins are transitory, as (1) key IC component prices may have bottomed, (2) EV spend is likely to ramp up further. </li>
<li>We maintain SELL and HK$ 8.2 TP, implying 26x FY23 PE.</li>
</ul>


Xiaomi reported C1Q23 top-line and non-IFRS net income (6.9%) and 20.7% vs. our est., and in-line and 39.9% vs. consensus; 
We suggest that higher margins are transitory, as (1) key IC component prices may have bottomed, (2) EV spend is likely to ramp up further. 
We maintain SELL and HK$ 8.2 TP, implying 26x FY23 PE.


[Xiaomi (1810 HK, SELL, TP HK$8.2) Earnings Review]: Good Cost Control Could Be Transitory

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 analyzed the latest HK SFC report for aggregate short position as of May 12th.</li>
<li>Top short increases and decreases were tabulated for one week and four week period. </li>
<li>We highlight short changes in Longfor, Cosco Ship Holding, CCB.</li>
</ul>


We analyzed the latest HK SFC report for aggregate short position as of May 12th.
Top short increases and decreases were tabulated for one week and four week period. 
We highlight short changes in Longfor, Cosco Ship Holding, CCB.


HK Short Interest Weekly: Longfor, Cosco Ship Holding, CCB

Thematic (Sector/Industry)

<ul>
<li>1801HK:  Innovent licensed in KRAS G12C drug obtained NMPA BTD designation but is a late comer（/）</li>
<li>1810 HK: Oppo abruptly abandons development of self-developed chips (-)</li>
<li>3690.HK: A review of Meituan’s Dazhong Dianping in-store business strategy </li>
</ul>


1801HK:  Innovent licensed in KRAS G12C drug obtained NMPA BTD designation but is a late comer（/）
1810 HK: Oppo abruptly abandons development of self-developed chips (-)
3690.HK: A review of Meituan’s Dazhong Dianping in-store business strategy 


China TMT Update (May.16) - 1801HK/1810HK/3690HK: A Review of Meituan’s In-Store Business Strategy

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>There are no constituent changes 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> in June but there are some free float changes and a bunch of capping changes.</li>
<li>Estimated one-way turnover is 3.2% leading to a one-way trade of HK$3bn (US$384m). There are 3 stocks with over 1 day of ADV to trade.</li>
<li>
<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 (9961 HK)</a> has over 1x ADV to buy from <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)</a> trackers. The stock is also an add to the <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">Hong Kong Hang Seng Index (HSI)</a>.</li>
</ul>


There are no constituent changes for the Hang Seng Tech Index (HSTECH INDEX) in June but there are some free float changes and a bunch of capping changes.
Estimated one-way turnover is 3.2% leading to a one-way trade of HK$3bn (US$384m). There are 3 stocks with over 1 day of ADV to trade.

Trip.com (9961 HK) has over 1x ADV to buy from Hang Seng Tech Index (HSTECH) trackers. The stock is also an add to the Hong Kong Hang Seng Index (HSI).


HSTECH Index Rebalance: Float & Capping Changes Lead to US$768m Two-Way Trade

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)

Xiaomi (1810 HK) – Impressive Earnings Recovery in 1Q23; Reiterate BUY

Looking into 2H23E, we maintain our positive view on Xiaomi’s earnings recovery driven by premiumization strategy, efficiency enhancement on new...

CMB International

[Xiaomi (1810 HK, SELL, TP HK$8.2) Earnings Review]: Good Cost Control Could Be Transitory

We suggest that higher margins are transitory, as (1) key IC component prices may have bottomed,and (2) EV spend is likely to ramp up further, as...

Blue Lotus Research Institute

HK Short Interest Weekly: Longfor, Cosco Ship Holding, CCB

We analyzed the latest HK SFC report for aggregate short position as of May 12th and highlight short interest changes in Longfor, Cosco Ship...

Ke Yan, CFA, FRM

China TMT Update (May.16) - 1801HK/1810HK/3690HK: A Review of Meituan’s In-Store Business Strategy

1801HK: Innovent licensed in KRAS G12C drug obtained NMPA BTD designation（/）；1810 HK: Oppo abruptly abandons development of self-developed chips (...

Blue Lotus Research Institute

HSTECH Index Rebalance: Float & Capping Changes Lead to US$768m Two-Way Trade

Estimated one-way turnover is 3.2% leading to a one-way trade of HK$3bn (US$384m). There are 3 stocks with over 1 day of ADV to trade. Trip.com is...

Brian Freitas

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