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HKG:3690 (Meituan) End of China Internet ?Meituan has been our 2nd largest position since 2020. Once we cashed out this stock out during late 2020 at 280~290HKD and then jump into US tech stock 100% at the end of 2020. We had an opportunity to buy this company again at lower price on Tech Crackdown & Common Prosperity policy. At first effect from bad news , stock fell sharply from 300HKD -> 190HKD within a week or two During bad news , Meituan was fined again and again and price seem to stop falling. That was our accumulation period. Though Q3/21 , earning report reflex slower growth in China but it is still growing. Chinese spending / consumption is still growing in long term and Meituan must be in a part of that. With excellent execution in the past I bet this company keeps adapting and evolving to be in a part of long term China growth.
HKEX:3690Long
by gmhfund
1
China Evergrande Defaults! Now What?China Evergrande, the second-largest real estate developer in China, has been narrowly dodging default for months. The Company has more than US $300 billion in debt that, as it warned the market back in September, it believed would be difficult for it to service. (As an aside, it is believed that China Evergrande could have an additional US $150 billion in debt, off its official financial books). Put simply, the cash flow of the Company, severely dampened by the cooling Chinese housing market, is not enough for it to service interest payments to those from which it borrowed funds, typically in the form of interest-bearing corporate bonds. One such unlucky purchaser of China Evergrande corporate bonds, among others, are off-shore investors. Off-shore bondholders will likely be the least prioritised of the Company’s investors when receiving interest payments or reparations. China Evergrande defaults! Perhaps fortuitously, it was the failure by China Evergrande to make interest payments to this very group of investors that prompted Fitch Ratings to upgrade the Company’s status to “restricted default” on December 9. Interestingly, China Evergrande is the twelfth Chinese real estate firm to default on bonds in 2021, and by far the largest to do so. Now what? Other rating agencies, such as Moody’s and S&P Global, have not been so quick to upgrade their status of China Evergrande. However, S&P Global has noted that China Evergrande’s default is “inevitable”. China Evergrande themselves seem to be ignoring public comment on its failure to meet its obligation, nor has it ceased operations or begun any formal paperwork to address its potential bankruptcy. China Evergrande is currently under restructuring while attempting to continue operations as usual. The restructuring includes renegotiating its liabilities and offloading non-construction arms of the Company at bargain prices such as its property management business, as well as stakes in a major Chinese bank and (strangely enough) a streaming services. Pressure is being applied to the Company’s leaders to speed up its restructuring since the change in its Fitch rating. According to Bloomberg, the China Evergrande restructure is being heavily monitored, if not outright controlled by Chinese Authorities in Beijing and the Company’s home province of Guangdong. Right now, the official line from the Central Bank of China is that the China Evergrande crisis is being handled as per the “principles of marketization and rule of law,”. If more rating agencies follow Fitch Rating in the coming weeks, China Evergrande could slip into something a little more serious than restricted default and the above quote may become a little truer, with Chinese authorities being hamstrung in their ability to interfere with a meltdown.
HKEX:3333
by BlackBull_Markets
Evergrande's SelfdestructionEvergrande shares, symbol 3333, have been getting demolished as of late. On December 6th it broke past its all time lows of 1.88 HKD. This puts Evergrand's stock over 94% down from it's ATH of 32.39 HKD now at 1.77 HKD. The stock is no longer in free fall however, that may not last for long. On December 9th the real estate developer had defaulted on its debt for the first time. Despite the striking resemblance to the fall of Lehman Brothers, Evergrande has made strong efforts to distance itself from being perceived as fundamentally the same thing. Narratives around possible contagion to global markets have fuelled uncertainties and a possible run to risk off. Crypto could suffer due to offshore creditors to Evergrande such as Black Rock who also have exposure to BTC and ETH possibly selling to rebalance or cover losses. Please check out my previous analysis on BTC/USD where I predicted a retrace to $50k with support @ $47k. If you like my content, feedback, likes and coins are encouraged and appreciated! Thank you.
HKEX:3333Short
by Kumo9
855.HKEX_Retracement Trade_LongENTRY: 8.55 SL: 7.67 TP: 10.60 - ADX>20 - RSI>50,RSI<70 - Daily RS +ve - Daily FFI +ve - Daily MACD -ve - Weekly RS +ve - Weekly FFI +ve - Weekly MACD +ve - Moving up since Jul 2021 and retraced to 38.2% fib level. - Good reaction with the rebound above HVN under good volume. - High volume green candles and low volume red candles in current range showing buyers in control. - Market shifting to more defensive stocks in current HK/CN market.
HKEX:855Long
by TRADER-WANNA-BE
What a Cleaning Company Taught me About Risk Management !Read this latest article What I learnt most from this article is not about the share price of this debt laden developer but the poor cleaning company, Fei Yun Cleaning Coy who has US$3 over million unpaid debts owed by Evergrande , the most talked in town property developer, rumoured to go bankrupt. With 90% of his business given to Aoyuan property developer, during the good times, he could afford to expand his business and make money. But the failure to diversify his customers base has painfully and regrettably landed him to sell his beloved car and mortgage his apartments in order to keep his business afloat. Similarly in the good days of the tech craze or now the crypto craze, people are ploughing more money into a single asset, believing the sky is the limit and easy money can be made. While it is true that some has become overnight millionaire or multi millionaire , we must not let these stories influence us too much. Easy come, Easy go, as the saying says. No one single industry can dominate forever just like the Law of Nature. The winter may be harsh and colder on certain times of the years but it will soon passed and Spring will arrive. This is the Law of Nature, nobody can change it. The stock market operates the same, man can manipulate it by propping it up with ultra to negative interest rates, pumping in more money into the system and all other means but the higher it goes, the harder it will fall. The question that God knows is WHEN will that day comes. We are now seeing how a single country like China and its strong regulations can bring down so many listed education players (0ver 90% losses) and even State-owned Investment vehicle like Temasek with its scholars and investment analysts could not prevent it from happening and had to suck thumb and take in the losses. As retail traders, you think you have privy to more sensitive or insider information ? Again, believing in something is sometimes a game of contradiction. It is hard, I know to maintain a lukewarm approach, either you are obsessed with it (be it religion, food, fitness, fame, money,etc) or you are aloof . The in-between are trying to up their level or downgrade to another level. As humans, we strive to improve ourselves, driven by our beliefs that with more effort, more discipline, more focus, we can achieve. And that itself has given us so much on a global scale, look around all the innovations that we enjoyed now that our forefathers lack in their time. We are talking about robo-taxis (Grab - should you be concerned ???), cryptocurrency when not too long ago , we were still carrying cold hard cash (will it be gone when my kids grow up in 10 years time ?) and kids dreaming of becoming youtube influencers (who needs Degrees anymore ? Learn to diversify your RISKS as the first rule of Investing is to not lose your capital. Learn how to protect the downside FIRST and not get overly blinded by the unlimited UPSIDE that is sold to you.
HKEX:3883
by dchua1969
1
EverGrande (3333/EGRNF) - a possible Christmas present!Evergrande is mostly being discussed only in a relation to the fall of Alibaba, or the rise of JD.com or changes in the Chinese economy. However, somehow it doesn't ring the bell that when such a Chinese giant falls, and eventually doesn't seem to go bankrupt, that it's a possible golden mine for the future. Currently EGRNF (which is a US equivalent of 3333) is being traded at 0.33$/st., while in the old good times it was reaching in a peak 3.5+$/st. (or 2.73 HKD vs 30 HKD) - meaning x10 times the value of current price. In other words, if Evergrande will eventually will not go bankrupt, it will recover. Especially considering the policies of the Chinese government which is very busy with maximizing own sustainablity and financial growth. Evengrande in a current state seems as a golden mine, which is somehow currently overlooked by the crowds. There is a challenge though. which I came across, seeing that some European banks are not willing to allow trading this stock. It is visible in the trading system as active, but there is no way to purchase it. Quite frustrating, not being able to purchase this stock on such a great opportunity. Current trend: It seems quite far at the moment from the 4.50 HKD level, therefore it may yet return to the 2.50 HKD. The moment it will confidently pass 4.50 HKD, it will most likely be a sign of coming back from dead, and from that moment it may pick up quite rapidly.
HKEX:3333
by inducto
Is Alibaba era over ? I think not !So, Alibaba missed its earnings and profits ? It's one day revenue on Singles day already raked in US$84.54 billion compared to its 31.4 billion revenue for the quarter. Combine Black Friday and Cyber Monday, Amazon's sales pale in comparison with Alibaba. Not forgetting, it's cloud computing business is growing leaps and bounds, 33% to be exact YOY to 20 billion revenue. Yes, it is true that Alibaba cloud business is still within its domestic market and is still far behind Amazon's over 30% global dominance in the cloud space. The 2nd biggest global player is Microsoft so looks like Alibaba has lots of catch up to do in this space. Yes, the Central government moves is hard to predict and nobody knows for certain if this current price has hit the bottom. But as long term investors, we buy into the growth story of the company and not let short term fluctuations affect us too much. Here, we understand clearly that Amazon has admitted defeat to Alibaba and other local players in the e-commerce space in China. Think Ebay, Walmart.... the fate is all the same (can you see the pattern). Just because they do well in US or Europe, it does not mean they can thrive or survive in China. They have not done extensive research to understand the Chinese buyers. E-commerce is 2 dimensional as they said and live commerce which has taken the retail scene to a whole new level in China is raking in explosive sales. Read this article . So, I will be adding more shares here with this 11% discount from Mr Market. Remember, Mr Market is irrational and can remain so for a long time. Just look at the crypto market and you will know.
HKEX:9988Long
by dchua1969
3
RecoveryAfter an upward retracement after the end of June decline we are seeing now a renewed attempt to get higher again. I can imagine a success due to the new political approach of the Chinese leadership towards Ali Baba. Ma is appearing in the public again and Ali Baba is shifting its activities more towards semiconductors now instead of becoming an integrated trading and financial giant. This seems to find the approal of the CPC leadership. Therefore the recovery may be the beginning of a bottom building.
HKEX:9988Long
by motleifaul
Ping An Insurance - A fintech Playwww.businesstimes.com.sg This is what I would be watching closely as well. If you understand how insurance works, it is a fantastic business model of risk and rewards. By collecting regular premium from life insurance products and reinvesting to make greater profits, the risks of payout is smaller over a long period of time is smaller compared to what is collected. Despite the good profits declared, the share price dropped , creating a good buying opportunity for us. See chart for explanation.
HKEX:2318Long
by dchua1969
Haier Founder Zhang Ruimin Steps Down as ChairmanZhang volunteered not to participate in the nomination of new directors. Zhou Yunjie was elected as the new chairman of the board and appointed as CEO. Liang Haishan was appointed as president. During Zhang’s 37-year stint at Haier, the firm has grown from a Qingdao refrigerator factory with a sale revenue of only CNY 3.48 million but a deficit of CNY 1.47 million in 1984 to a global enterprise with a worldwide sale of more than CNY 300 billion and a pre-tax profit of more than CNY 40 billion in 2020. According to the Qingdao-based firm, Zhang proposed a management model called Rendanheyi in 2005, which has 'become a trend during the era of Internet of things.' As a legend in China's household appliance industry, Zhang, known as the 'godfather of Chinese management,' has been selected as one of the 50 most influential global management philosophers. In September 2021, Zhang and Eric Cornell, president of the European management development foundation, jointly signed the first international certification of innovative management, signifying that the Chinese enterprises have created the first international standard of management mode. Consequently, Haier pioneered a new inheritance mechanism, enabling the company to keep evolving after transforming from its bureaucratic model into a self-driven enterprise. Zhang was also among the 100 Chinese who were awarded the medals of reform pioneers during a grand gathering in December 2018 to mark the 40th anniversary of the country's reform and opening-up.
HKEX:6690
by EqualOcean
Lenovo Group's Net Profit Reached CNY 222.5 Bn in 2021 H1Hong Kong stocks of Lenovo Group fell by 0.35% to HKD 8.47/share, with a total market value of HKD 102 billion. Lenovo Group has three major business groups, namely the intelligent equipment business group (IDG), the infrastructure solution business group (ISG), and the solution service business group (SSG). The 2021 H1 financial reports for the Lenovo group are as follows: - Revenue was USD 34.8 billion, a 24.87% year-on-year increase. - Net income was USD 978 million, an 87% year-on-year increase. - IDG's revenue reached USD 30 billion, an increase of 24.14% year-on-year, with USD 2.3 billion in net profit. - ISG's revenue was USD 3.8 billion, an increase of 23.57% year-on-year, with USD 16.9 billion in net loss. - SSG's revenue recorded USD 2.5 billion, an increase of 33.39% year-on-year, with USD 548 million in net profit. The six months performance period ended September 20, 2021, are as follows: - R&D expense was USD 948 million, accounting for 2.72% of revenue. - SG&A expense was USD 3.3 billion, accounting for 9.44% of revenue. The 2021 Q2 performance are as below: - Revenue was USD 17.9 billion, a 23.07% year-on-year increase. - Net income was USD 512 million, a 65.16% year-on-year increase.
HKEX:992
by EqualOcean
1