In today’s briefing:
- HSBC – Dangling The Dividend
- Zeekr IPO Early Look – Possibly US$0 to US$7bn Revenue in Under Three Years
- EQD | Alibaba (BABA US): Playing the Earnings Via Derivatives
- IQIYI (IQ US): From Turnaround to High-Quality Growth
- Fangzhou Pre-IPO – The Positives – Regulatory Changes and COVID Spurred Growth
- Topchoice Medical (600763.CH) – The “True Secret” of Success and the Lost Luck
HSBC – Dangling The Dividend
- Operating costs moved to USD8.9bn in 4Q22 from USD8.0bn in 3Q22
- Continued high growth in QoQ credit costs up 33% QoQ in 4Q22
- Net fee income seems to be shrinking about USD100m quarterly
Zeekr IPO Early Look – Possibly US$0 to US$7bn Revenue in Under Three Years
- Zeekr, a premium EV brand by Geely, aims to raise around US$1bn (estimated) in its US listing in 1H2023. GS, BofA and MS are said to be running the deal.
- Zeekr was formed in Mar 2021 as a JV between Geely and its founder. Its first model was launched in Apr 21 with deliveries starting in Oct 21.
- In this note, we take an early look at the IPO based on publicly avaiable information.
EQD | Alibaba (BABA US): Playing the Earnings Via Derivatives
- Alibaba (BABA US) is set to report earnings tomorrow on the 23rd
- Stock has pulled back from the highs but earnings could be the next catalyst to determine direction
- We use the derivatives market to extract market expectations and suggest some suitable trades
IQIYI (IQ US): From Turnaround to High-Quality Growth
- IQ released a set of clean-beat 4Q results, marking the end of turnaround and the start of high-quality growth.
- Years of investments in original content production capabilities paid off and solidified IQ’s leadership in China’s long form video industry.
- Successful refinancing removed debt overhang. We expect IQ to generate RMB3.5 billion net profit out of RMB32 billion revenue for 2023 and see further upside to share price.
Fangzhou Pre-IPO – The Positives – Regulatory Changes and COVID Spurred Growth
- Fangzhou Group (FANGZHOU HK) is looking to raise about US$300m in its upcoming Hong Kong IPO.
- Fangzhou (FZ) is an online chronic disease management (CDM) service provider in China.
- In this note, we will talk about the positive aspects of the deal.
Topchoice Medical (600763.CH) – The “True Secret” of Success and the Lost Luck
- It’s necessary for investors to understand the “true secret” of Topchoice’s success, which is impossible to copy. This is also the core reason why we’re not optimistic about the company.
- The profit margin decline of dental implant and orthodontics businesses is inevitable, not only due to centralized procurement, but also the fierce competition of private dental hospitals in price war.
- Topchoice is now paying for its ambition to deviate from its main business. The overall performance in 2022 may not be optimistic. We think Topchoice’s good times are over.
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