In today’s briefing:
- ChiNext/ChiNext 50 Index Rebalance: US$1bn Round-Trip Trade
- Yankuang Energy Placement – Doesn’t Appear Well Flagged Although Deal Size Is Large
- CSI Esoteric Index Rebals Jun 24: All Share Brokerage, China Internet, Medical, Defense, & Livestock
- China Consumption Weekly (3 Jun 2024): Alibaba, Alibaba Pictures, Li Auto, JD.com, JD Health
- Quiddity STAR 50/100 Jun 24 Rebalance: US$1bn+ One-Way Flow; Some Surprises; New Trade
- Quiddity SSE50/180 Jun 24 Rebalance: US$1.8bn One-Way Flow; LONGs up 8.6% Vs SHORTs in a Month
- Trip.com Q124 Review: Solid Top-Line Growth | Progress on Margins | BUY Below US$50
- Pre-IPO QuantumPharm (PHIP Updates) – Some Points Worth the Attention
ChiNext/ChiNext 50 Index Rebalance: US$1bn Round-Trip Trade
- There are 7 changes for the ChiNext Index (SZ399006 INDEX) and 5 changes for the ChiNext 50 Index at the June rebalance.
- We correctly forecast 5/7 and 7/7 for the Chinext Index adds/deletes and were 3/5 and 5/5 for the Chinext50 Index adds/deletes.
- Based on the estimated passive tracking AUM, the one-way trade across both indices is estimated to be CNY 3.69bn (US$508m).
Yankuang Energy Placement – Doesn’t Appear Well Flagged Although Deal Size Is Large
- Yankuang Energy Group (1171 HK) is looking to raise up to US$608m through a primary follow-on, via selling 270m H-shares.
- The deal is a somewhat large one to digest, at 10.6 days of three month ADV and 2.7% of current mcap.
- In this note, we will talk about the placement and run the deal through our ECM framework.
CSI Esoteric Index Rebals Jun 24: All Share Brokerage, China Internet, Medical, Defense, & Livestock
- We have already discussed our flow expectations for the mainstream indices in the CSI family such as CSI300/500, SSE50/100, and the STAR50/100 for the June 2024 index rebal event.
- In this insight, we take a look at our flow expectations for the ADDs/DELs involved in the rebalance of some of the lesser known indices in the CSI family.
- The indices covered in this insight are All Share Brokerage, China Internet, Medical Devices, National Defense, and Livestock Breeding indices.
China Consumption Weekly (3 Jun 2024): Alibaba, Alibaba Pictures, Li Auto, JD.com, JD Health
- Alibaba Pictures’ revenue increased by 44% YoY and EBTIDA increased by 61% in the March quarter.
- Cainiao, Alibaba’s logistics network, plans to purchase fresh food from the places of origin.
- Li Auto finished a round of layoff, in which headcount was reduced to 22,000 from 30,000.
Quiddity STAR 50/100 Jun 24 Rebalance: US$1bn+ One-Way Flow; Some Surprises; New Trade
- The June 2024 index review results for the STAR 50 and STAR 100 indices were announced after market close on Friday 31st May 2024.
- There will be 3 changes for the STAR 50 index and 9 changes for the STAR 100 index.
- We expect one-way flows of approximately US$750mn and US$314mn for the STAR 50 and STAR 100 index rebal events in June 2024.
Quiddity SSE50/180 Jun 24 Rebalance: US$1.8bn One-Way Flow; LONGs up 8.6% Vs SHORTs in a Month
- The June 2024 index review results for the SSE 50 and SSE 180 indices were announced after market close on Friday 31st May 2024.
- There will be 5 changes for the SSE 50 index and 18 changes for the SSE 180 index.
- These changes could collectively cause one-way index flows of ~US$1.8bn during the June 2024 index rebal event. In this insight, we take a look at our final flow expectations.
Trip.com Q124 Review: Solid Top-Line Growth | Progress on Margins | BUY Below US$50
- Q124 showed solid top-line growth, impressive improvement in core margins
- We are not too concerned about moderating domestic hotel, air pricing
- After consensus EPS raised, TCOM a BUY below US$50 per ADS, in our view
Pre-IPO QuantumPharm (PHIP Updates) – Some Points Worth the Attention
- We have always been concerned about QuantumPharm’s business model. It is relatively difficult for a service provider like QuantumPharm to scale up revenue by just relying on charging service fees.
- For AI pharmaceutical companies, how to make money is a pain point for entire industry. Just focusing on preclinical stages would limit profitability.We haven’t seen any certainty of achieving breakeven.
- Increasing competition would bring more challenges for QuantumPharm. Post-investment valuation in 2021 was too expensive.If its future performance falls short of expectations, then sooner or later the valuation will collapse.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
