China: Ausnutria Dairy Corp, Minth Group Ltd, iQIYI Inc, Tencent, Kwg Property Holding and more

• 52.7%. The only number that matters. That satisfied the acceptance condition to the mandatory conditional cash Offer. But it was a close-run thing.
• The Offer is now unconditional and will remain open for acceptance until the 17 March. 
• Yili has no intention to privatise Ausnutria Dairy Corp (1717 HK) and intends to maintain its listing following the close of the Offer.

• Aluminum is Minth Group Ltd (425 HK) biggest raw material.
• The war that spiked the commodity price does not show any sign of ending soon therefore margin contraction is expected. 
• Get out or short it if you are a hedgehog. 

• IQIYI Inc (IQ US) reported 4Q and full-year 2021 results on Tuesday. Revenue for the quarter declined 0.9% YoY to RMB7.39bn (vs consensus RMB7.31bn).
• Operating losses for the quarter was RMB975.2m (vs consensus RMB1.33bn), about 13.2% of revenues compared to RMB1.31bn (17.5% of revenues) in 4Q2020.
• IQiyi’s ADRs jumped 21.5% at the end of Tuesday’s close as the company mentioned that it expects quarterly non-GAAP operating break-even as soon as possible.

• Tencent is commencing a fresh down leg below 413 support. We have been bearish/short from the 500 handle with a projection of 370.
• Tencent’s breakdown is lagging the HK tech index  which raises conviction for Tencent weakness/follow through to the downside.
• 320 macro support attracts in Q3 as long as we stay below 413.

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.

In this Insight:

1. Logan Property Holdings
2. Shimao Property Holdings
3. Ronshine China Holdings
4. Lenovo
5. Seazen (Formerly Future Land)

and more…