Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy Research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Equity Bottom-Up

Tuya Inc., doing business as Tuya Smart, provides IoT cloud platform. The Company offers solutions which enables brands, retailers, OEMs, and manufacturers to develop, launch, manage, and monetize software-enabled devices and services. Tuya Smart serves customers worldwide.

<ul>
<li>On November 18th, 2024, Temasek-affiliated investment fund 65Equity bought 13% of TUYA, an IOT hardware company and planned to bring the company to list on the Singapore Stock Exchange;</li>
<li>TUYA is trading at US$901mn market cap, equivalent to 3.2x 12TTM sales. This isn't cheap. Xiaomi, a high flying stock, now trades at 2.0x 12TTM sales. TUYA is not profitable;</li>
<li>TUYA is a good and real company but in a bad business. Electronics inventory cycle and advanced stocking for Trump's Tariff Hike shall support earnings in the next few quarters.</li>
</ul>


On November 18th, 2024, Temasek-affiliated investment fund 65Equity bought 13% of TUYA, an IOT hardware company and planned to bring the company to list on the Singapore Stock Exchange;
TUYA is trading at US$901mn market cap, equivalent to 3.2x 12TTM sales. This isn't cheap. Xiaomi, a high flying stock, now trades at 2.0x 12TTM sales. TUYA is not profitable;
TUYA is a good and real company but in a bad business. Electronics inventory cycle and advanced stocking for Trump's Tariff Hike shall support earnings in the next few quarters.


TUYA: Is The King of White Label IOT Ready to Charter a Different Course?

Analyst - Media&Entertainment Sector, Blue Lotus Research Institute

Stan Zhao

Analyst - Media&Entertainment Sector

Baidu, Inc. operates an Internet search engine. The Company offers algorithmic search, enterprise search, news, MP3, and image searches, voice assistance, online storage, and navigation services. Baidu serves clients globally.

<ul>
<li>Tesla's Cybercab is expected to be under $30,000 in price, with production costs of  ~$25,000 and operating costs of 30-40 cents per mile.</li>
<li>We found Baidu's robotaxi to be faces 50% higher daily total costs and runs a fleet of 600 autonomous vehicles.</li>
<li>To compete with Tesla’s Cybercab by 2026, Baidu must significantly reduce its operating costs. Tesla's lower price and efficiency could capture a larger market share.</li>
</ul>


Tesla's Cybercab is expected to be under $30,000 in price, with production costs of  ~$25,000 and operating costs of 30-40 cents per mile.
We found Baidu's robotaxi to be faces 50% higher daily total costs and runs a fleet of 600 autonomous vehicles.
To compete with Tesla’s Cybercab by 2026, Baidu must significantly reduce its operating costs. Tesla's lower price and efficiency could capture a larger market share.


A Comparison of Tesla’s Cybercab and Baidu’s Apollo Shows the Latter Must Improve

Japanese Turnaround Situations, Short-Ideas, Azabu Research

Michael Allen

Japanese Turnaround Situations, Short-Ideas

Azabu Research

Azabu Research is a publishing and consulting firm focused on distressed equities in the Japanese market. We specialize in turnaround strategies, corporate combinations, divestitures, and restructuring.

Publisher of the Tokyo Turnaround Letter, which conducts the most thorough research possible of publicly available information, including forensic tests for fraudulent overstatement of assets and understatement of liabilities, as well as rigorous market and industry analysis to assess the underlying strengths of the company’s products or services, the appropriateness of the company’s turnaround strategy, and the skill of its current management team. The average length of a report exceeds 25 pages of text and tables, excluding any disclosures or executive summaries.

We have more than 30 years of experience in applying this process to distressed equities in Japan. Additionally, subscribers have free access to detailed, yet easily navigated earnings models for the target company as well as the top five comparable companies, and unlimited access to the analyst for follow-up questions.

Azabu Research also conducts be-spoke research on a project basis, and provides consulting services to companies looking to restructure, divest, make acquisitions, go public, or improve investor sentiment toward their stock.

Independent Research and Consulting Firm

YAMADA DENKI CO., LTD. operates consumer electronic mass sales stores throughout Japan.  The Company sells home appliances, audio & visual systems, office automation equipment, telecommunication equipment, software, and computers. The Company also provides repair services for its merchandises.

<ul>
<li>We expect Yamada to grow EBIT 18% annually on 3.6% growth in revenues, vs. consensus forecast of 7.2% growth in EBIT on 3.2% growth in sales.</li>
<li>If correct, our valuation model suggests that a fair value for Yamada is about ¥1,029, or about 145% higher than the current price.</li>
<li>The stock trades at 0.6x book value, which is fair if you expect no change, but we see ROE rising to almost 10%, from a low of less than 4%.</li>
</ul>


We expect Yamada to grow EBIT 18% annually on 3.6% growth in revenues, vs. consensus forecast of 7.2% growth in EBIT on 3.2% growth in sales.
If correct, our valuation model suggests that a fair value for Yamada is about ¥1,029, or about 145% higher than the current price.
The stock trades at 0.6x book value, which is fair if you expect no change, but we see ROE rising to almost 10%, from a low of less than 4%.


Yamada Denki (9831): What Hasn't Killed Them Made Them Stronger

Smartkarma Research Team, Smartkarma

Smartkarma Research

Smartkarma Research Team

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

17LIVE Group Limited operates as a live streaming company. The Company offers pure-play live-streaming platform that streams real-time user-generated videos, as well as allows streamers to interact with their audience live via live chat or games, creating high-quality content. 17LIVE Group serves customers in Asia.

<p>For our next Corporate Webinar, we are glad to welcome 17Live’s Chief Executive Officer and Executive Director, Jiang Honghui. </p>
<p>In the upcoming webinar, Honghui will share a short company presentation after which, he will engage in a fireside chat with the Smartkarma moderator. The Corporate Webinar will include a live Q&amp;A session.</p>
<h3>The webinar will be hosted on Monday, 25 November 2024, 17:00 SGT/HKT.</h3>
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<h2><a href="https://share.hsforms.com/1H9pFZOB-RF2J00kbvMmxcw2c5gj?zoom_webinar_id=81735174473" target="_blank" rel="noopener">Register for the Webinar here</a></h2>
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<h3>About 17Live Group</h3>
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<p>17LIVE is a leading pure-play live streaming platform in Asia with key markets in Japan and Taiwan. Its business lines include Liver live streaming, V-Liver live streaming and other businesses such as in-app games and live commerce. 17LIVE is accessible globally and has fostered a diverse live streaming ecosystem with a loyal and engaged user community, as well as a deep pool of live streamers.</p>
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For our next Corporate Webinar, we are glad to welcome 17Live’s Chief Executive Officer and Executive Director, Jiang Honghui. 
In the upcoming webinar, Honghui will share a short company presentation after which, he will engage in a fireside chat with the Smartkarma moderator. The Corporate Webinar will include a live Q&amp;A session.
The webinar will be hosted on Monday, 25 November 2024, 17:00 SGT/HKT.



























Register for the Webinar here



























About 17Live Group

17LIVE is a leading pure-play live streaming platform in Asia with key markets in Japan and Taiwan. Its business lines include Liver live streaming, V-Liver live streaming and other businesses such as in-app games and live commerce. 17LIVE is accessible globally and has fostered a diverse live streaming ecosystem with a loyal and engaged user community, as well as a deep pool of live streamers.


Smartkarma Corporate Webinar | 17LIVE Group: Leading Pure-Play Live Streaming Platform in Asia

Zai Lab Limited operates as a bio-pharmaceutical company. The Company researches and develops therapeutic technology for antibody-based oncology, autoimmune, and infectious diseases treatments. Zai Lab also manufactures drugs in the form of capsules, injections, and liquids. Zai Lab serves patients worldwide.

<ul>
<li>ZaiLab's (ZLAB) share price rallied 15% on promising data from the Phase I trial of its DLL3 ADC licensed from Chinese startup MediLink. The data is positive but still early;</li>
<li>Besides being early, competitions in DLL3 ADC, B7H3 ADC and DLL3/CD3 BsAb are all fierce, with much bigger rivals at much advanced clinical stages. Thus ZLAB faces an execution challenge;</li>
<li>ZLAB's sourcing from domestic biotech is a major step forward that can fundamentally alter its business model. But to confirm the validity of this transition still needs more evidence.</li>
</ul>


ZaiLab's (ZLAB) share price rallied 15% on promising data from the Phase I trial of its DLL3 ADC licensed from Chinese startup MediLink. The data is positive but still early;
Besides being early, competitions in DLL3 ADC, B7H3 ADC and DLL3/CD3 BsAb are all fierce, with much bigger rivals at much advanced clinical stages. Thus ZLAB faces an execution challenge;
ZLAB's sourcing from domestic biotech is a major step forward that can fundamentally alter its business model. But to confirm the validity of this transition still needs more evidence.


ZaiLab's DLL3 ADC Is a Major Positive, but the Market Over-Reacted to Its Prospects