Mark Artherton, CFA

Inteqres

Forensic Accounting

Following on from our analysis of Tencent and Alibaba's accounting for investments, we turn our attention to JD.com.  We are concerned about the growing influence of a particular category of long term investment, especially give JD's low net income margins and the growing influence of such items on the balance sheet.  This accounting choice, which in effect plugs a VC/PE firm into JD's accounts is in effect a black hole.  We also consider the invisible elephant that is JD DIgits.We also clarify some possible misunderstandings around accounting choices in this area.

Following on from our analysis of Tencent and Alibaba's accounting for investments, we turn our attention to JD.com.  We are concerned about the growing influence of a particular category of long term investment, especially give JD's low net income margins and the growing influence of such items on the balance sheet.  This accounting choice, which in effect plugs a VC/PE firm into JD's accounts is in effect a black hole.  We also consider the invisible elephant that is JD DIgits.We also clarify some possible misunderstandings around accounting choices in this area.

JD.COM Accounting for Investments - Black Holes and Invisible Elephants- Inteqres ESG Bite

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

Powerlong Commercial Management Holdings / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/powerlong-commercial-management-holdings" target="_blank" data-smartkarma-citation="entities:28672:1" rel="noopener">Powerlong Commercial Management Holdings (1741045D HK)</a> is a leading commercial operational service provider in China. Powerlong has launched its IPO at an indicative price range of HK$7.50-10.00 per share. Powerlong will raise net proceeds of HK$1,223.5 million ($157 million) at the mid-point of the IPO price range. <div class="content-highlight">In <a href="https://www.smartkarma.com/insights/powerlong-commercial-mgmt-ipo-initiation-hard-bargains" target="_blank" rel="noopener">our initiation note</a>, we stated that Powerlong’s fundamentals offer more positives than negatives and could prove attractive at the right valuation. Our valuation analysis suggests that the IPO price range is attractive and we would participate in the IPO.</div>

Powerlong Commercial Management Holdings (1741045D HK) is a leading commercial operational service provider in China. Powerlong has launched its IPO at an indicative price range of HK$7.50-10.00 per share. Powerlong will raise net proceeds of HK$1,223.5 million ($157 million) at the mid-point of the IPO price range. In our initiation note, we stated that Powerlong’s fundamentals offer more positives than negatives and could prove attractive at the right valuation. Our valuation analysis suggests that the IPO price range is attractive and we would participate in the IPO.

Powerlong Commercial Mgmt IPO:  Valuation on Solid Grounds

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

Despite several indexes recently touching new 52+ week highs, broad global indexes (MSCI ACWI, ACWI ex-US, EAFE, and EM) remain near logical resistance, and indicators continue to send mixed signals. As a result we are hesitant to get too bullish or bearish. Instead we want to focus on Sector/Group/industry themes where we bottoming price and RS, or attractive pullback opportunities within established price and RS uptrends.  In this report we highlight such opportunities, within the Technology, Consumer Staples and Services Sectors.

Despite several indexes recently touching new 52+ week highs, broad global indexes (MSCI ACWI, ACWI ex-US, EAFE, and EM) remain near logical resistance, and indicators continue to send mixed signals. As a result we are hesitant to get too bullish or bearish. Instead we want to focus on Sector/Group/industry themes where we bottoming price and RS, or attractive pullback opportunities within established price and RS uptrends.  In this report we highlight such opportunities, within the Technology, Consumer Staples and Services Sectors.

Global Equity Strategy: Not Too Bullish, Not Too Bearish

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

Equity Bottom-Up

Alibaba Group Holding  / Equity Bottom-Up

<ul>
<li>This year, Hema created many new business models in order to solve the problem of profitability.</li>
<li>We believe Hema-mini is the best version of these creations.</li>
<li>The version solved most questions we raised in  <a href="https://www.smartkarma.com/insights/a-visit-to-alibaba-s-new-retail-physical-store-hema" target="_blank" rel="noopener">A Visit to Alibaba's "New Retail" - Physical Store Hema</a> one year before.</li>
</ul>


This year, Hema created many new business models in order to solve the problem of profitability.
We believe Hema-mini is the best version of these creations.
The version solved most questions we raised in  A Visit to Alibaba's "New Retail" - Physical Store Hema one year before.


Alibaba (BABA): A Visit to New Business Hema-Mini – Successful Change

Markets are showing signs of weakening at logical resistance as we anticipated in last week’s Int’l Compass - we recommend being selective in new purchases. At the same time we are seeing a number of indicators that are giving signals conducive to higher equity prices, meaning global equities may be gearing up for an eventual breakout topside resistance. In this report we highlight some attractive and actionable themes (Miners, consumer staples, and several attractive individual set ups in Thailand) along with indicators that support our overall constructive outlook.

Markets are showing signs of weakening at logical resistance as we anticipated in last week’s Int’l Compass - we recommend being selective in new purchases. At the same time we are seeing a number of indicators that are giving signals conducive to higher equity prices, meaning global equities may be gearing up for an eventual breakout topside resistance. In this report we highlight some attractive and actionable themes (Miners, consumer staples, and several attractive individual set ups in Thailand) along with indicators that support our overall constructive outlook.

U.S.Dollar Weakness A Tailwind For International Markets

China

Yonghui Superstores Company Limited operates supermarket franchises . The Company mainly operates hypermarkets, marketplace and supermarkets.

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Yonghui Superstores Co., (601933 CH)

JD.COM Accounting for Investments - Black Holes and Invisible Elephants- Inteqres ESG Bite

Following on from our analysis of Tencent and Alibaba's accounting for investments, we turn our attention to JD.com. We are concerned about the...

Mark Artherton, CFA

Powerlong Commercial Mgmt IPO: Valuation on Solid Grounds

Powerlong Commercial Management Holdings (1741045D HK) is a leading commercial operational service provider in China. Powerlong has launched its...

Arun George

Global Equity Strategy: Not Too Bullish, Not Too Bearish

Despite several indexes recently touching new 52+ week highs, broad global indexes (MSCI ACWI, ACWI ex-US, EAFE, and EM) remain near logical...

Vermilion Research

Alibaba (BABA): A Visit to New Business Hema-Mini – Successful Change

This year, Hema created many new business models in order to solve the problem of profitability. We believe Hema-mini is the best version of these...

Ming Lu

U.S.Dollar Weakness A Tailwind For International Markets

Markets are showing signs of weakening at logical resistance as we anticipated in last week’s Int’l Compass - we recommend being selective in new...

Vermilion Research

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