Daily Brief China: Kanzhun, Kuaishou Technology, Beauty Farm Medical and Health Industry, Cambricon Technologies Corp, CIFI Holdings, Alibaba (ADR), Lifestyle International Holdings, Dmall Inc and more

• Kanzhun (BZ US) a.k.a. has been listed in the US since about the same time as DiDi Global (DIDI US), and it had similar but minor tech issues pre-listing. 
• On Friday 16 December, the company announced it would conduct a Listing by Introduction in Hong Kong under the ticker Zhipin (2076 HK), listing on 22 Dec. 
• That creates an interesting launch supply/demand dynamic, likely HS Tech inclusion in March 2023, and then Southbound much later in 2023.

• Trip.com’s revenue increased by 29% YoY and adjusted EBITDA increased 164% YoY in 3Q22.
• Kuaishou announced that the views of short play increased by 40% in 2022.
• Activision Blizzard announced that they are looking for a new agency in China.

• Beauty Farm Medical and Health Industry (BFM HK) is the largest provider of traditional beauty services and the fourth largest non-surgical aesthetic medical service provider in China.
• The company seeks to raise $300 million from an IPO in Hong Kong market. Morgan Stanley, Haitong International, and Huatai International are the joint sponsors for the proposed IPO.
• COVID-19 has hurt recent financial performance of the company and forced it to shut many of the stores in multiple locations. Further, stretched valuation make the IPO unappealing to investors.

• It was recently announced that US government put 36 Chinese companies including Cambricon Technologies on its trade blacklist that can restrict the semiconductor maker’s access to US technologies and products.
• The US government has determined that Cambricon Technologies and these other Chinese companies pose risk to the US national security.
• We believe that Cambricon Technologies being included in the trade blacklist by the US government is likely to have a long-term negative impact on the company.

• CIFI Holdings (884 HK) is looking to raise US$127m in a top-up placement. Proceeds from the raising are expected to refinance its existing loans and for general corporate purposes.
• While the deal represents just 2.1 days of three month ADV, total shares offered would amount to 7.5% of current mcap. 
• In this note, we will run the deal through our ECM framework and talk about the recent updates.

• BABA ADR shows well defined range trade points as the rising wedge matures. 173 stands out as formidable sell resistance and 157 the level to crack.
• MACD trendline coincides the “0” turn level that is expected to cap the upside near term and induce fresh down leg. The May break does send a forward weak signal.
• The macro picture continues to warn of a 135 retest in 2023. Current rising wedge is corrective in nature.

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 South City
• Kawasan Industri Jababeka
• Lifestyle International Holdings

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 South City
• Kawasan Industri Jababeka
• Lifestyle International Holdings

• Dmall Inc (1751691D CH) is looking to raise about US$200m in its upcoming HK IPO. The deal will be run by Credit Suisse and CMB International.
• Dmall provides cloud-based, end-to-end SaaS platforms purpose-built for the local retail industry. 
• Its service offerings consist of a retail core service cloud, an e-commerce service cloud and a marketing and advertising service cloud.