With the intensive disclosure of the 13F holdings in the US stock market, the holdings of many celebrity private equity firms have been gradually revealed.
On May 15th Beijing time, HHLR Advisors, a subsidiary of Hillhouse, announced its latest holdings in US stocks. In the first quarter of this year, HHLR Advisors increased their holdings in Pinduoduo, Amazon, and others, and Pinduoduo continued to maintain its position as the largest holdings.
It is worth noting that Jinglin Asset, also a celebrity private equity firm, has reduced its holdings of many shares in Pinduoduo, and Facebook has replaced Pinduoduo as the largest holdings. At the same time, Jinglin Asset increased its holdings in multiple Chinese concept stocks such as JD, Alibaba, New Oriental, TAL, Tencent Music, and Ctrip Group in the first quarter, increased its holdings in artificial intelligence related stocks such as Facebook's parent company Meta and TSMC, and established positions in biopharmaceutical companies such as Novo Nordisk.
Jinglin Assets stated that with the recovery of the Chinese economy, market risk appetite will return to normal in the future, and investing in some high-quality Chinese companies at current prices will still have attractive long-term risk returns.
Hillhouse continues to increase its holdings in Pinduoduo
On May 15th, Beijing time, HHLR Advisors, an independent fund management platform under Hillhouse that focuses on secondary market investments, announced its US stock holdings as of the end of the first quarter of 2024. According to data, the total market value of HHLR Advisors' holdings in the US stock market in the first quarter was $4.604 billion, a decrease from $4.962 billion at the end of the fourth quarter of last year.
As of the end of the first quarter, the top ten heavy holdings of HHLR Advisors were Pinduoduo, BeiGene, Shell, Legendary Biotech, Microsoft, AMD, Amazon, Saffles, Danaher, and TAKE-TWO Interactive Software, with Chinese concept stocks accounting for over 70% of the market value and occupying a dominant position.
Specifically, in the first quarter of this year, HHLR Advisors increased their holdings in e-commerce companies such as Pinduoduo and Amazon. Except for Chinese concept stocks, technology remains the main investment logic of HHLR Advisors. In the first quarter, HHLR Advisors newly purchased related targets from technology companies such as AMD, Apple, Nvidia, and Meta.
It is worth mentioning that the largest holdings of HHLR Advisors, Pinduoduo, have performed well in the past year, with a stock price increase of up to 120%.
The 2023 performance released by Pinduoduo shows that its revenue in the fourth quarter of last year was 88.881 billion yuan, a year-on-year increase of 123.21%, and its net profit was 23.28 billion yuan, a year-on-year increase of 146.26%; The annual revenue for 2023 was 247.639 billion yuan, a year-on-year increase of 89.68%, and the net profit attributable to ordinary shareholders was 60.027 billion yuan, a year-on-year increase of 90.33%.
The domestic consumption level is gradually recovering, and Pinduoduo grasps the user's mentality, achieving high growth in online marketing services through a good product+good price strategy. Huaan Securities believes that Pinduoduo can expand its activities such as providing subsidies worth billions of yuan to provide users with high-quality products at a favorable price, increase promotional efforts, and lower the threshold for user consumption upgrading, thereby achieving dual growth in order volume and user scale in the trend of consumer recovery.
While doing well in domestic business, Pinduoduo is accelerating its expansion in overseas business. According to statistics, Temu has been launched in 50 countries and regions worldwide, and as of December 2023, the number of independent visitors to Temu has reached 467 million. Temu continues its domestic Pinduoduo low price strategy, fully leveraging its supply chain advantages, quickly seizing overseas markets, and accelerating global expansion. Huaan Securities believes that in the short term, Temu can effectively improve the company's revenue and profits, and in the long term, it can further open up revenue and profit margins. It continues to be optimistic about the growth potential brought by overseas business to the company.
Jinglin Asset's additional holdings in technology stocks
Jinglin Asset also recently announced its latest holdings in US stocks. GREENWOODS ASSET MANAGENT HONG KONG LTD, an overseas subsidiary of Jinglin Asset Management, recently submitted its US stock holdings data to the SEC as of the end of the first quarter of 2024. Its total market value of holdings was $3.226 billion, an increase of about 15% from $2.8 billion at the end of last year.
Specifically, the top ten heavy holdings of Jinglin Hong Kong Company are Facebook parent company Meta, Pinduoduo, Microsoft, NetEase, Doordash, TSMC, NVIDIA, New Oriental, Futu Holdings, and Manbang.
In the first quarter of this year, Jinglin Hong Kong Company added 18400 shares to its Facebook parent company Meta, and as of the end of the period, it held a total of 1.2641 million shares, with a total market value of 614 million US dollars. In the past year or so, Pinduoduo has consistently held the top position in the Jinglin US stock market. After five consecutive quarters of peaking, Facebook replaced Pinduoduo as the largest holdings.
It is worth noting that in the first quarter of this year, Jinglin Hong Kong Company reduced its holdings in Pinduoduo by 1.107 million shares and Microsoft by 275800 shares. As of the end of the period, its holdings were 3.6347 million shares and 904800 shares, respectively, with a market value of 423 million US dollars and 381 million US dollars.
In addition, in the first quarter, Jinglin Hong Kong Company significantly increased its holdings in chip semiconductor industry company TSMC, and also newly acquired Chinese concept stocks such as Tencent Music, JD.com, Ctrip Group, and Alibaba.
Jinglin Assets stated that firstly, the current economic fundamentals are better than expected. Based on recent economic data, the May Day tourism consumption data has performed well, and export data is expected to perform well in the near future. The PMI has been above 50% of the boom and bust line for two consecutive months, and the key is when the price data will return to normal; Furthermore, the real estate industry, which the market is most concerned about, has seen some incremental changes in policies. We are paying attention to the "actively resolving existing stocks" proposed by the Central Political Bureau meeting, the relaxation of purchase restrictions in various regions, and the "trade in old for new" policy; The rebalancing of overseas institutional positions has led to a significant rebound in Chinese stocks recently, but the valuation discount compared to emerging markets still exceeds 20%, which still has good attractiveness.
Therefore, Jinglin Assets stated that investor confidence has increased and they will continue to remain optimistic, with a focus on selecting individual stocks in their investment strategy.