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

<ul>
<li>XPeng C3Q23 top line, non-GAAP operating loss and GAAP net loss in line, 28% and 68% worse than our estimates, main reason is G3’s End-Of-Production charge to the gross margin</li>
<li>We expect XPEV to experience tough transition in 2024 since product line which spans across sedan and SUV, shall experience severe competition at a time when its differentiation is eroding.</li>
<li>We prefer to wait out this period; we cut TP of XPEV from US$18 to US$9 and downgrade to SELL.</li>
</ul>


XPeng C3Q23 top line, non-GAAP operating loss and GAAP net loss in line, 28% and 68% worse than our estimates, main reason is G3’s End-Of-Production charge to the gross margin
We expect XPEV to experience tough transition in 2024 since product line which spans across sedan and SUV, shall experience severe competition at a time when its differentiation is eroding.
We prefer to wait out this period; we cut TP of XPEV from US$18 to US$9 and downgrade to SELL.


[XPeng Inc. (XPEV US, SELL, TP US$9) Rating Change]: Strategic Options May Come Late and Uncertain

Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

High Yield Experts

Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

Credit

<p>Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.</p>In this Insight:<ol><li><a href='/entities/sjm-holdings-ltd' target='_blank' rel='noopener'>SJM Holdings</a></li><li><a href='/entities/melco-crown-entertainme-adr' target='_blank' rel='noopener'>Melco Resorts & Entertainment</a></li><li><a href='/entities/lenovo-group-ltd' target='_blank' rel='noopener'>Lenovo</a></li><li><a href='/entities/longfor-properties' target='_blank' rel='noopener'>Longfor Properties</a></li><li><a href='/entities/tata-motors-ltd' target='_blank' rel='noopener'>Tata Motors Ltd</a></li></ol>and more...

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.In this Insight:SJM HoldingsMelco Resorts & EntertainmentLenovoLongfor PropertiesTata Motors Ltdand more...

Thematic (Sector/Industry)

<ul>
<li>ATAT: Atour Group launches new version of Atour 4.0, higher price with better return(+)</li>
<li>XPEV/NIO/LI:  Huawei Chery Luxeed announce specs and pricing, impacting mostly high end sedans (-)</li>
<li>981.HK/ 1347.HK/ ACMR: China lithography supplier planning A-share listing (+)</li>
</ul>


ATAT: Atour Group launches new version of Atour 4.0, higher price with better return(+)
XPEV/NIO/LI:  Huawei Chery Luxeed announce specs and pricing, impacting mostly high end sedans (-)
981.HK/ 1347.HK/ ACMR: China lithography supplier planning A-share listing (+)


[Blue Lotus Daily] Xiaomi 1810.HK/XPEV/NIO/LI/1211.HK/ATAT/BEKE/LKNCY/981.HK/1347.HK/ACMR

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>This is the somewhat brand-spanking-new Quiddity HK Connect SOUTHBOUND Monitor. We work off the same presentation as the A/H Premium Monitor and Mainland Connect NORTHBOUND Monitor.</li>
<li>SOUTHBOUND flows the last four weeks clearly indicate a momentum move. The top net sells are all down. The top buys are all up.</li>
<li>Tencent and three ETFs see the top net buys as SOUTHBOUND bought HK$18.4bn this past week. Energy and Telco net sales persist. And persist. And persist.</li>
</ul>


This is the somewhat brand-spanking-new Quiddity HK Connect SOUTHBOUND Monitor. We work off the same presentation as the A/H Premium Monitor and Mainland Connect NORTHBOUND Monitor.
SOUTHBOUND flows the last four weeks clearly indicate a momentum move. The top net sells are all down. The top buys are all up.
Tencent and three ETFs see the top net buys as SOUTHBOUND bought HK$18.4bn this past week. Energy and Telco net sales persist. And persist. And persist.


HK Connect SOUTHBOUND (To 10 Nov 23); High-Div SOEs AGAIN See Outflows, Tencent and ETFs Big Buys

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyzed the latest HK SFC report for aggregate short position as of Nov 3rd.</li>
<li>Top short increases and decreases were tabulated for one week and four week period. </li>
<li>We highlight short changes in HSBC, Haidilao and China Mobile.</li>
</ul>


We analyzed the latest HK SFC report for aggregate short position as of Nov 3rd.
Top short increases and decreases were tabulated for one week and four week period. 
We highlight short changes in HSBC, Haidilao and China Mobile.


HK Short Interest Weekly: HSBC, Haidilao, China Mobile

China

Xiaomi Corporation manufactures communication equipment and parts. The Company produces and sells mobile phones, smart phone software,  set-top boxes, and related accessories. Xiaomi markets its products worldwide.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
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Xiaomi Corp (1810 HK)

[XPeng Inc. (XPEV US, SELL, TP US$9) Rating Change]: Strategic Options May Come Late and Uncertain

XPeng reported Q3 2023 results with losses worse than expected due to an End-Of-Production charge, and faces tough competition and eroding...

Blue Lotus Research Institute

Weekly Wrap - 17 Nov 2023

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and...

Lucror Analytics

[Blue Lotus Daily] Xiaomi 1810.HK/XPEV/NIO/LI/1211.HK/ATAT/BEKE/LKNCY/981.HK/1347.HK/ACMR

Atour Group releases Atour 4.0 with improved features. Huawei Chery Luxeed's specs and pricing announcement affects high-end sedans negatively....

Blue Lotus Research Institute

HK Connect SOUTHBOUND (To 10 Nov 23); High-Div SOEs AGAIN See Outflows, Tencent and ETFs Big Buys

In last week's SOUTHBOUND flows, high dividend SOEs such as China Mobile and CNOOC again saw net selling while Tencent and three major listed ETFs...

Travis Lundy

HK Short Interest Weekly: HSBC, Haidilao, China Mobile

We analyzed the latest HK SFC report for aggregate short position as of Nov 3rd and highlight short interest changes in HSBC, Haidilao, China Mobile.

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

[XPeng Inc. (XPEV US, SELL, TP US$9) Rating Change]: Strategic Options May Come Late and Uncertain

​XPeng reported Q3 2023 results with losses worse than expected due to an End-Of-Production charge, and faces tough competition and eroding...

Blue Lotus Research Institute

Weekly Wrap - 17 Nov 2023

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and...

Lucror Analytics

[Blue Lotus Daily] Xiaomi 1810.HK/XPEV/NIO/LI/1211.HK/ATAT/BEKE/LKNCY/981.HK/1347.HK/ACMR

​Atour Group releases Atour 4.0 with improved features. Huawei Chery Luxeed's specs and pricing announcement affects high-end sedans negatively....

Blue Lotus Research Institute

HK Connect SOUTHBOUND (To 10 Nov 23); High-Div SOEs AGAIN See Outflows, Tencent and ETFs Big Buys

In last week's SOUTHBOUND flows, high dividend SOEs such as China Mobile and CNOOC again saw net selling while Tencent and three major listed ETFs...

Travis Lundy

HK Short Interest Weekly: HSBC, Haidilao, China Mobile

We analyzed the latest HK SFC report for aggregate short position as of Nov 3rd and highlight short interest changes in HSBC, Haidilao, China Mobile.

Ke Yan, CFA, FRM

XPeng reported Q3 2023 results with losses worse than expected due to an End-Of-Production charge, and faces tough competition and eroding...

Atour Group releases Atour 4.0 with improved features. Huawei Chery Luxeed's specs and pricing announcement affects high-end sedans negatively....