China: Orient Overseas International, First Pacific Co, MINISO Group Holdings, Medlive Technology, Road King Infrastructure and more

• Current at 66 constituents, we expect to reach 80 HSI INDEX constituents by the end of the year before moving higher towards 100 index members in 2023.
• We list 10 stocks that could be added to the index in June – with one-way turnover close to 6%, the actual number of inclusions will be lower.
• We also list out another 8 stocks that could possibly be added in June, though the probability of a September/ December inclusion is higher.

• Last week First Pacific Co (142 HK) announced a 33% increase in recurring profit to a record high.
• The full-year distribution up to 19.0 HK cents/share backs out a yield of 6.3%.
• The current discount to NAV of 56% compares with a 12-month average of 59%, and a long-term average of 50%.

• Last week, MINISO Group Holdings (MNSO US) filed an application to conduct a follow-on public offering of ordinary shares on the main board of the Hong Kong Stock Exchange.
• The Hong Kong listing will be treated as a second primary listing, resulting in a substantial improvement in the stock’s liquidity.
• With the improvement in liquidity following the Hong Kong offer, there could be a significant upside to Miniso shares in the short term.

• The revenue YoY growth, net profit YoY growth and net profit margin reached a new low in 2021. The performance of Medlive cannot meet the market’s expectations of high growth.
• The medical knowledge solutions is the cornerstone business and vital to the attractiveness of platform for users. However, this business is not strong enough to make the outlook certain.
• In the fierce competition, more efforts are needed on how to convert physician resources into business value continuously. Due to unreliable logic, we are conservative about Medlive at current stage.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• China SCE
• Road King Infrastructure
• Sino-Ocean Service
• Sunac China Holdings