In today’s briefing:
- Travelsky (696): Time to Fly
- FXI Rebalance Preview: One Potential Change in September
- LianLian DigiTech Pre-IPO Tearsheet
- [Bilibili(BILI US, SELL, TP US$12.3)Update]: Still Struggling to Balance Growth and Monetization
- Asymchem Laboratories (6821.HK) Vs Pharmaron Beijing (3759.HK) – Deep Dive the Logic and the Outlook
- Robosense Technology Pre-IPO – The Positives – A Whole Lot of Potential
- Qiniu Pre-IPO – Widening Losses and Dwindling Market Share
- NVC International
Travelsky (696): Time to Fly
- Share price of Travelsky Technology Ltd H (696 HK) is still down YTD as investors are still overly cautious on Chinese travel data.
- YTD operational data shows that the number of flights processed is very close to the pre-COVID era.
- The company announced a profit alert recently, that should help to boost share price.
FXI Rebalance Preview: One Potential Change in September
- As of 24 July, there could be one set of changes for the iShares China Large-Cap (FXI) (FXI US) in September.
- There should be less than 1x ADV to buy on ZTE Corp H (763 HK) while there will be nearly 2x ADV to sell on Anhui Conch Cement (914 HK).
- Short interest has been inching higher on ZTE Corp H (763 HK) while it is barely moving on Anhui Conch Cement (914 HK) as the stock trades near its lows.
LianLian DigiTech Pre-IPO Tearsheet
- Lianlian DigiTech is looking to raise at least US$500m in its upcoming HK IPO. The deal will be run by CICC and JP Morgan.
- LianLian DigiTech is a digital technology company that provides a range of digital payment services and value-added services to customers in China and around the world.
- The firm ranked first among all independent digital payment solution providers in China in terms of TPV in 2022, with a market share of 9.1%, according to Frost & Sullivan.
[Bilibili(BILI US, SELL, TP US$12.3)Update]: Still Struggling to Balance Growth and Monetization
- We were invited to BILI’s 2023 investor day, during which BILI management presented several catalysts.
- However, most of these catalysts appear to be minor. BILI management is fully aware of the challenges in the industry.
- We maintain a SELL rating, and investors may consider shorting BILI after <Uma Musume> is launched.
Asymchem Laboratories (6821.HK) Vs Pharmaron Beijing (3759.HK) – Deep Dive the Logic and the Outlook
- Understanding the essential differences in business characteristics of CRO and CDMO could help investors better understand the differences between Asymchem and Pharmaron in terms of investment logic, financial performance, and prospects.
- Since Pharmaron didn’t obtain COVID-19 big orders, it would maintain normal revenue growth in 2023. However, increasing labor costs and uncontrollable investment business would lead to unsatisfactory net profit performance.
- Asymchem’s performance would be disappointing in 2023. However, its growth momentum is expected to restore after it digest the impact of COVID-19 orders. Then, Asymchem’s valuation could surpass Pharmaron afterwards.
Robosense Technology Pre-IPO – The Positives – A Whole Lot of Potential
- Robosense Technology (ROBO HK) (RT) is looking to raise around US$400m (estimated) in its upcoming Hong Kong IPO.
- As of Mar 23, it had earned design wins for mass production of LiDAR for 52 vehicles with 21OEMs and Tier 1 suppliers, ranking No. 1 globally, according to CIC.
- In this note, we talk about the positive aspects of the deal.
Qiniu Pre-IPO – Widening Losses and Dwindling Market Share
- Qiniu Limited (1045102D CH) is looking to raise about US$200m in its upcoming Hong Kong IPO.
- Qiniu is an intelligent audiovisual service provider. According to iResearch, the firm is the third largest audiovisual platform as a service (PaaS) provider in China in terms of FY22 revenue.
- Qiniu’s revenue has primarily been driven by its MPaaS segment over the track record period. However, the firm’s losses are still widening while its balance sheet health deteriorates.
NVC International
- Since my last order filled today, here is my write-up on a special situation in Hong Kong.
- Stock is NVC International holdings (NVC ticker HKG:2222) .
- A Hong Kong nano cap stock. And it is quite illiquid, so beware. I first learned of it through a Tweet from Writser .
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