In today’s briefing:
- 2024 High Conviction Idea – High Beta and Low Risk Recommendations
- China: Consolidated Flows at the Close Tomorrow
- Short-Seller Grizzly Accuses Chinese AI Software Firm SenseTime of Inflating Revenues
- Robosense Technology Pre-IPO – PHIP Updates – ADAS Sales Strong but Profitability Remains Distant
2024 High Conviction Idea – High Beta and Low Risk Recommendations
- We prepared high beta and low risk recommendations for 2024:
- With 2024 YE as horizon, we recommend JD.com, JD Logistics, JDHealth, Tencent and Luckin.
- With 1H24 as horizon, we recommend KE Holdings, NetEase and Kuaishou.
China: Consolidated Flows at the Close Tomorrow
- Local indices in China including the CSI 300 Index, CSI 500 Index, STAR50 Index and SSE50 Index will rebalance at the close tomorrow.
- There are many changes for the indices and there are stocks that are adds and/or deletes from multiple indices which results in cumulative or offsetting flows.
- We estimate turnover at the close tomorrow in China will be around US$7.5bn with big impact on a lot of stocks.
Short-Seller Grizzly Accuses Chinese AI Software Firm SenseTime of Inflating Revenues
- SenseTime Group Inc. shares plummeted nearly 5% Tuesday after U.S.-based short-seller Grizzly Research released a report accusing the Chinese AI software developer of inflating its revenues.
- Grizzly’s report, citing court documents and social media posts, alleged that SenseTime engaged in what it called round-tripping, where it provided funds to customers who in turn used the money to purchase products from SenseTime that might never have been delivered.
- Its Hong Kong-listed stock tumbled as much as 9.7% before closing 4.86% lower to HK$1.37 ($0.18), down 64% from its IPO price of HK$3.85.
Robosense Technology Pre-IPO – PHIP Updates – ADAS Sales Strong but Profitability Remains Distant
- Robosense Technology (ROBO HK) (RT) is now looking to raise up to US$150m in its upcoming Hong Kong IPO, down from US$300-400m earlier.
- 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.
- We looked at its past performance in our earlier notes. In this note, we talk about its PHIP updates.
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