China/Asia TMT

Shawn Yang

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>We estimate that SMICs 7nm yield is &gt;70% with capacity of 19k 7nm wafers per month.  We expect SMIC will be able to ship 5nm by 2026 .</li>
<li>We expect Huawei’s wafer demand to reach 18k~ 7nm per month, which would have revenue gain of US$ 550mn~ per quarter to SMIC. We raise SMIC TP to HK$ 27.</li>
<li>We expect Huawei to reach 18% share of the China smartphone market in 2024. We expect Apple and Xiaomi’s China market share to decline by 2ppt and 0.8ppt YoY, respectively.</li>
</ul>


We estimate that SMICs 7nm yield is &gt;70% with capacity of 19k 7nm wafers per month.  We expect SMIC will be able to ship 5nm by 2026 .
We expect Huawei’s wafer demand to reach 18k~ 7nm per month, which would have revenue gain of US$ 550mn~ per quarter to SMIC. We raise SMIC TP to HK$ 27.
We expect Huawei to reach 18% share of the China smartphone market in 2024. We expect Apple and Xiaomi’s China market share to decline by 2ppt and 0.8ppt YoY, respectively.


[Blue Lotus Hardware Sector Update]: SMIC 7nm and 5nm Sufficient for Huawei Rejuvenation

<ul>
<li>1810.HK/AAPL/981.HK: Local media reports that the Mate 60 series is planned to ship 20mn units (-/-/+)</li>
<li>HK700/HK1024/DOYU/BILI/IQ: Tencent announced its live broadcast rights holder for 2023 Hangzhou Asian Games. (+)/(-)/(-)/(-)/(-)</li>
<li>BABA/VIPS / PDD/ 3690.HK/ YSG/JD: Social retail consumption improved month-on-month (+/+/+/+/+/-)</li>
</ul>


1810.HK/AAPL/981.HK: Local media reports that the Mate 60 series is planned to ship 20mn units (-/-/+)
HK700/HK1024/DOYU/BILI/IQ: Tencent announced its live broadcast rights holder for 2023 Hangzhou Asian Games. (+)/(-)/(-)/(-)/(-)
BABA/VIPS / PDD/ 3690.HK/ YSG/JD: Social retail consumption improved month-on-month (+/+/+/+/+/-)


China TMT Update-1810.HK/AAPL/981.HK/HK700/HK1024/DOYU/BILI/IQ/BABA/VIPS/PDD/3690.HK/YSG/JD-Mate 60

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 Sep 8th.</li>
<li>Top short increases and decreases were tabulated for one week and four week period. </li>
<li>We highlight short changes in ICBC, Xiaomi, Petrochina, CCB, Li Auto, Baba, Aac Tech.</li>
</ul>


We analyzed the latest HK SFC report for aggregate short position as of Sep 8th.
Top short increases and decreases were tabulated for one week and four week period. 
We highlight short changes in ICBC, Xiaomi, Petrochina, CCB, Li Auto, Baba, Aac Tech.


HK Short Interest Weekly: ICBC, Xiaomi, Petrochina, CCB, Li Auto, Baba, Aac Tech

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/softbank-group-corp' target='_blank' rel='noopener'>Softbank Group</a></li><li><a href='/entities/china-sce-group-holdings-ltd' target='_blank' rel='noopener'>China SCE</a></li><li><a href='/entities/sino-ocean-group-holding-limited' target='_blank' rel='noopener'>Sino-Ocean Group</a></li><li><a href='/entities/china-jinmao-holdings-group' target='_blank' rel='noopener'>China Jinmao Holdings</a></li><li><a href='/entities/geely-automobile-holdings-ltd' target='_blank' rel='noopener'>Geely Auto</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:Softbank GroupChina SCESino-Ocean GroupChina Jinmao HoldingsGeely Autoand more...

<ul>
<li>We analyze statistics on top repurchases over one week, one month, one quarter and one year periods ended on Sep 15th based on HKEx daily reports.</li>
<li>In the past 7 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), AIA (1299 HK), Country Garden Services (6098 HK).</li>
<li>In the past 30 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), AIA (1299 HK), Country Garden Services (6098 HK).</li>
</ul>


We analyze statistics on top repurchases over one week, one month, one quarter and one year periods ended on Sep 15th based on HKEx daily reports.
In the past 7 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), AIA (1299 HK), Country Garden Services (6098 HK).
In the past 30 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), AIA (1299 HK), Country Garden Services (6098 HK).


Hong Kong Buybacks Weekly (Sep 15th): Tencent, Aia, Country Garden Services

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.

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Xiaomi Corp (1810 HK)

[Blue Lotus Hardware Sector Update]: SMIC 7nm and 5nm Sufficient for Huawei Rejuvenation

We expect Huawei’s wafer demand to reach 18k~ 7nm per month, which would have revenue gain of US$ 550mn~ per quarter to SMIC. We raise SMIC TP to...

Blue Lotus Research Institute

China TMT Update-1810.HK/AAPL/981.HK/HK700/HK1024/DOYU/BILI/IQ/BABA/VIPS/PDD/3690.HK/YSG/JD-Mate 60

Local media reports that the Mate 60 series is planned to ship 20mn units; Tencent announced its live broadcast rights holder for Asian Games;...

Blue Lotus Research Institute

HK Short Interest Weekly: ICBC, Xiaomi, Petrochina, CCB, Li Auto, Baba, Aac Tech

We analyzed the latest HK SFC report for aggregate short position as of Sep 8th and highlight short interest changes in ICBC, Xiaomi, Petrochina,...

Ke Yan, CFA, FRM

Weekly Wrap - 15 Sep 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

Hong Kong Buybacks Weekly (Sep 15th): Tencent, Aia, Country Garden Services

We analyzed the Hong Kong buyback data in the past week and highlight the top 3 companies that repurchased the most shares were Tencent (700 HK),...

Ke Yan, CFA, FRM

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