Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet 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

Thematic (Sector/Industry)

<ul>
<li>NTES US : NetEase's &lt;Marvel Rivals&gt; has commenced its first round of testing, with players providing positive feedback.（+）</li>
<li>4689 JP/4755 JP/4385 JP: PayPay QR-code system crashed for three hours (-/+/+)</li>
<li>BABA US /BIDU US/700 HK: China's generative AI starts price war mode, led by ByteDance and High-Flyer（/////）</li>
</ul>


NTES US : NetEase's &lt;Marvel Rivals&gt; has commenced its first round of testing, with players providing positive feedback.（+）
4689 JP/4755 JP/4385 JP: PayPay QR-code system crashed for three hours (-/+/+)
BABA US /BIDU US/700 HK: China's generative AI starts price war mode, led by ByteDance and High-Flyer（/////）


[Blue Lotus Daily - TMT Update]:NTES US/4689 JP/4755 JP/4385 JP/BABA US /BIDU US/700 HK

Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy Research

<ul>
<li>1810 HK/ZK US/NIO US/TSLA US/XPEV US/600104 SH: Xiaomi to start double-shift production of the SU7 in June （+/-/-/-/-）</li>
<li>1810 HK/1211 HK/ LI US/ NIO US/ XPEV US: The data shows that only 2% of FSD12 users are converted to paying users, which is good for China's automatic driving(//////////)</li>
<li>LI US / NIO US/1810 HK :Li Auto takes the lead in sales in the 18th week of 2024, while Xiaomi continues to lag behind（/////）</li>
</ul>


1810 HK/ZK US/NIO US/TSLA US/XPEV US/600104 SH: Xiaomi to start double-shift production of the SU7 in June （+/-/-/-/-）
1810 HK/1211 HK/ LI US/ NIO US/ XPEV US: The data shows that only 2% of FSD12 users are converted to paying users, which is good for China's automatic driving(//////////)
LI US / NIO US/1810 HK :Li Auto takes the lead in sales in the 18th week of 2024, while Xiaomi continues to lag behind（/////）


[Blue Lotus Daily]:1810 HK/ZK US/NIO US/TSLA US/XPEV US/600104 SH/1211 HK/ LI US/LKNCY US

Equity Bottom-Up

MINISO Group Holding is a value retailer with a focus on offering products that are aesthetically pleasing, good-quality, and affordable.

<ul>
<li>Miniso (MNSO) reported C1Q24 revenue in-line with our estimate/consensus. Non-GAAP NI beat our estimate/consensus by 4.2%/2.6%, mainly due to better gross margin from IP sales.</li>
<li>Company cited pressure on profits in C2Q24 due to store expansion, yet we still believe MNSO can maintain an OPM of 20% for entire 2024</li>
<li>We maintain a BUY rating on the stock and maintain TP at US$34/ADS</li>
</ul>


Miniso (MNSO) reported C1Q24 revenue in-line with our estimate/consensus. Non-GAAP NI beat our estimate/consensus by 4.2%/2.6%, mainly due to better gross margin from IP sales.
Company cited pressure on profits in C2Q24 due to store expansion, yet we still believe MNSO can maintain an OPM of 20% for entire 2024
We maintain a BUY rating on the stock and maintain TP at US$34/ADS


[Miniso Group (MNSO US, BUY, TP US$34) Earnings Review]: No News Is Good News…Maintain BUY

Alibaba Group Holding  / Equity Bottom-Up

Alibaba Group Holding Limited provides online sales services. The Company provides internet infrastructure, electronic commerce, online financial, and internet content services through its subsidiaries. Alibaba Group Holding offers its products and services worldwide.

<ul>
<li>BABA reported CY1Q24 top line, GAAP operating profit and non-GAAP net income 0.9%, (4.6%) and (6.7%) vs. consensus, and in-line, in-line, (6.9%) vs. our estimate;</li>
<li>Results reaffirmed our positive view as increased investment is leading to significant improvement in key businesses: (1) Taobao/Tmall stabilized, (2) overseas e-commerce accelerated along with overseas AntFin and Cainiao</li>
<li>We expect pay-off from its strategy shift in 2H of the year. Spin-off, dividends,and share buy-backs provide valuation support until then.We maintain BUY and US$85 TP, implying 9.5x CY25 P/E.</li>
</ul>


BABA reported CY1Q24 top line, GAAP operating profit and non-GAAP net income 0.9%, (4.6%) and (6.7%) vs. consensus, and in-line, in-line, (6.9%) vs. our estimate;
Results reaffirmed our positive view as increased investment is leading to significant improvement in key businesses: (1) Taobao/Tmall stabilized, (2) overseas e-commerce accelerated along with overseas AntFin and Cainiao
We expect pay-off from its strategy shift in 2H of the year. Spin-off, dividends,and share buy-backs provide valuation support until then.We maintain BUY and US$85 TP, implying 9.5x CY25 P/E.


[Alibaba (BABA US, BUY, TP US$85) Review]: Positive Transformation Still Underway…BUY on Dip

<ul>
<li>JD US/DADA US/3690 HK:JD.com Upgrades "Hour Delivery" to "Instant Delivery", reflecting strong growth potential in the on-demand retail sector.(+)</li>
<li>700 HK: &lt;Honors of Fighters&gt; will be released on May 24th.(+)</li>
<li>ZTO US/1519 HK/PDD US/BABA US/Douyin: PDD launches new product price competitiveness rules (+/+/-/-/-)</li>
</ul>


JD US/DADA US/3690 HK:JD.com Upgrades "Hour Delivery" to "Instant Delivery", reflecting strong growth potential in the on-demand retail sector.(+)
700 HK: &lt;Honors of Fighters&gt; will be released on May 24th.(+)
ZTO US/1519 HK/PDD US/BABA US/Douyin: PDD launches new product price competitiveness rules (+/+/-/-/-)


[Blue Lotus Daily - TMT Update]:JD US/DADA US/3690 HK/700 HK/ZTO US/1519 HK/PDD US/BABA US/Douyin

Blue Lotus Research Institute
China growth and global non-US Internet equities

[Blue Lotus Daily - TMT Update]:NTES US/4689 JP/4755 JP/4385 JP/BABA US /BIDU US/700 HK

NetEase's receives positive feedback during first round of testing, PayPay QR-code system crashes for three hours in Japan.China's generative AI...

Blue Lotus Research Institute

[Blue Lotus Daily]:1810 HK/ZK US/NIO US/TSLA US/XPEV US/600104 SH/1211 HK/ LI US/LKNCY US

Xiaomi to start double-shift production of SU7, FSD12 users conversion rate low, Li Auto leads in sales in 18th week of 2024.

Blue Lotus Research Institute

[Miniso Group (MNSO US, BUY, TP US$34) Earnings Review]: No News Is Good News…Maintain BUY

Miniso (MNSO) meets revenue expectations in Q1 but beats non-GAAP net income estimates, citing pressure on profits in Q2 from store expansion....

Blue Lotus Research Institute

[Alibaba (BABA US, BUY, TP US$85) Review]: Positive Transformation Still Underway…BUY on Dip

BABA reports mixed Q1 results but positive outlook with increased investment leading to improvement in key businesses, expecting payoff in 2H of...

Blue Lotus Research Institute

[Blue Lotus Daily - TMT Update]:JD US/DADA US/3690 HK/700 HK/ZTO US/1519 HK/PDD US/BABA US/Douyin

JD.com upgrades "Hour Delivery" to "Instant Delivery" showing growth potential in on-demand retail; new game to release May 24th; PDD introduces...

Blue Lotus Research Institute

[Blue Lotus Daily - TMT Update]:NTES US/4689 JP/4755 JP/4385 JP/BABA US /BIDU US/700 HK

​NetEase's receives positive feedback during first round of testing, PayPay QR-code system crashes for three hours in Japan.China's generative AI...

Blue Lotus Research Institute

[Blue Lotus Daily]:1810 HK/ZK US/NIO US/TSLA US/XPEV US/600104 SH/1211 HK/ LI US/LKNCY US

​Xiaomi to start double-shift production of SU7, FSD12 users conversion rate low, Li Auto leads in sales in 18th week of 2024.

Blue Lotus Research Institute

[Miniso Group (MNSO US, BUY, TP US$34) Earnings Review]: No News Is Good News…Maintain BUY

​Miniso (MNSO) meets revenue expectations in Q1 but beats non-GAAP net income estimates, citing pressure on profits in Q2 from store expansion....

Blue Lotus Research Institute

[Alibaba (BABA US, BUY, TP US$85) Review]: Positive Transformation Still Underway…BUY on Dip

​BABA reports mixed Q1 results but positive outlook with increased investment leading to improvement in key businesses, expecting payoff in 2H of...

Blue Lotus Research Institute

[Blue Lotus Daily - TMT Update]:JD US/DADA US/3690 HK/700 HK/ZTO US/1519 HK/PDD US/BABA US/Douyin

​JD.com upgrades "Hour Delivery" to "Instant Delivery" showing growth potential in on-demand retail; new game to release May 24th; PDD introduces...

Blue Lotus Research Institute

NetEase's receives positive feedback during first round of testing, PayPay QR-code system crashes for three hours in Japan.China's generative AI...

Xiaomi to start double-shift production of SU7, FSD12 users conversion rate low, Li Auto leads in sales in 18th week of 2024.

Miniso (MNSO) meets revenue expectations in Q1 but beats non-GAAP net income estimates, citing pressure on profits in Q2 from store expansion....

BABA reports mixed Q1 results but positive outlook with increased investment leading to improvement in key businesses, expecting payoff in 2H of...

JD.com upgrades "Hour Delivery" to "Instant Delivery" showing growth potential in on-demand retail; new game to release May 24th; PDD introduces...