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

Thematic (Sector/Industry)

<ul>
<li>BEKE US:  Takeaways from Beike Investor Day on June 3(/)</li>
<li>9926 HK: Akeso adds sales rights to AK112 in developing countries, possibly preparing for overall sale(/)</li>
<li>1211 HK/ LI US: BYD launches fifth-generation hybrid petrol-electric technology, which can run 2,100 kilometers on full-tank+full-battery(///)</li>
</ul>


BEKE US:  Takeaways from Beike Investor Day on June 3(/)
9926 HK: Akeso adds sales rights to AK112 in developing countries, possibly preparing for overall sale(/)
1211 HK/ LI US: BYD launches fifth-generation hybrid petrol-electric technology, which can run 2,100 kilometers on full-tank+full-battery(///)


[Blue Lotus Daily]:BEKE US/9926 HK/1211 HK/ LI US

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 analyze the weekly Hong Kong Connect flows with our data engine for holding position as of May 31st.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight flows for BOC, CNOOC, Agricultural Bank Of China, Xiaomi Corporation, Petrochina.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of May 31st.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for BOC, CNOOC, Agricultural Bank Of China, Xiaomi Corporation, Petrochina.


Hong Kong Connect Flows (May 31st): BOC, CNOOC, ABC, Xiaomi, Petrochina

<ul>
<li>NIO US/1810 HK/ LI US: EV sales in the 20th week of 2024 NIO, Xiaomi and LI performed well(/////)</li>
<li>BEKE US: Shanghai implements central government policies to further stimulate property market demand from nine aspects.(+)</li>
<li>981 HK/1347 HK/1810 HK/ACMR/China semiconductor: China launches Big Fund III to support semiconductor development (+)</li>
</ul>


NIO US/1810 HK/ LI US: EV sales in the 20th week of 2024 NIO, Xiaomi and LI performed well(/////)
BEKE US: Shanghai implements central government policies to further stimulate property market demand from nine aspects.(+)
981 HK/1347 HK/1810 HK/ACMR/China semiconductor: China launches Big Fund III to support semiconductor development (+)


[Blue Lotus Daily]:NIO US/1810 HK/ LI US/BEKE US/981 HK/1347 HK/ACMR/9926 HK

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Event-Driven

<ul>
<li>There are many rumors about Henlius’s trading halt, but Fosun Pharma had applied for the resumption of trading in H Shares, which makes us confused whether this is really privatization.</li>
<li>Henlius is in “an awkward position” in capital market. Fosun is to blame for Henlius's low valuation. The high debt problem makes the profits generated from drug sales meaningless.</li>
<li>If Henlius cannot break away from the system controlled by Fosun, the complexity of corporate governance brought about by the relationship between Henlius and Fosun would inevitably affect investment judgment.</li>
</ul>


There are many rumors about Henlius’s trading halt, but Fosun Pharma had applied for the resumption of trading in H Shares, which makes us confused whether this is really privatization.
Henlius is in “an awkward position” in capital market. Fosun is to blame for Henlius's low valuation. The high debt problem makes the profits generated from drug sales meaningless.
If Henlius cannot break away from the system controlled by Fosun, the complexity of corporate governance brought about by the relationship between Henlius and Fosun would inevitably affect investment judgment.


Shanghai Henlius Biotech (2696.HK) - Behind the Trading Halt and Privatization Rumor

Yichang HEC Changjiang Pharma / Event-Driven

<ul>
<li>Sunshine Lake Pharma plans to privatize HEC CJ Pharma in the form of merger by absorption with conditions. After privatization, CJ Pharma will be delisted from the Stock Exchange.</li>
<li>Sunshine Lake Pharma's pipeline has been “disconnected” from the level of domestic biotech in recent years, and is completely lagging behind the average speed of innovative drug development in China.</li>
<li>Due to “outdated” pipeline and lack of prospects, even if CJ Pharma is merged into Sunshine Lake Pharma, valuation performance of the new entity would be disappointing in the future.</li>
</ul>


Sunshine Lake Pharma plans to privatize HEC CJ Pharma in the form of merger by absorption with conditions. After privatization, CJ Pharma will be delisted from the Stock Exchange.
Sunshine Lake Pharma's pipeline has been “disconnected” from the level of domestic biotech in recent years, and is completely lagging behind the average speed of innovative drug development in China.
Due to “outdated” pipeline and lack of prospects, even if CJ Pharma is merged into Sunshine Lake Pharma, valuation performance of the new entity would be disappointing in the future.


HEC CJ Pharma (1558.HK)'s Merger Deal with Sunshine Lake Pharma - Almost No Investment Value

China

Akeso Inc. operates operatesa s a biotech company. The compnay develops treatments and therapies for various types of diseases. Akeso serves cutomers worldwide

Price Gauge
52-week Range	0.00 - 0.00
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Akeso Biopharma Inc (9926 HK)

[Blue Lotus Daily]:BEKE US/9926 HK/1211 HK/ LI US

Key takeaways from recent events: Beike Investor Day insights, Akeso's sales rights expansion, and BYD's innovative hybrid technology launch.

Blue Lotus Research Institute

Hong Kong Connect Flows (May 31st): BOC, CNOOC, ABC, Xiaomi, Petrochina

We analyzed southbound Hong Kong connect flows in the past week and highlight flows for BOC, CNOOC, Agricultural Bank Of China, Xiaomi Corporation,...

Ke Yan, CFA, FRM

[Blue Lotus Daily]:NIO US/1810 HK/ LI US/BEKE US/981 HK/1347 HK/ACMR/9926 HK

EV sales for NIO, Xiaomi, and LI were strong in the 20th week. Shanghai is implementing policies to boost property market demand. China has...

Blue Lotus Research Institute

Shanghai Henlius Biotech (2696.HK) - Behind the Trading Halt and Privatization Rumor

Rumors swirl around Henlius's trading halt, raising questions about privatization.Henlius faces challenge in the market due to high debt, with...

Xinyao (Criss) Wang

HEC CJ Pharma (1558.HK)'s Merger Deal with Sunshine Lake Pharma - Almost No Investment Value

Sunshine Lake Pharma plans to privatize and merge with CJ Pharma.However, with an outdated pipeline, the new entity's valuation performance will...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

[Blue Lotus Daily]:BEKE US/9926 HK/1211 HK/ LI US

​Key takeaways from recent events: Beike Investor Day insights, Akeso's sales rights expansion, and BYD's innovative hybrid technology launch.

Blue Lotus Research Institute

Hong Kong Connect Flows (May 31st): BOC, CNOOC, ABC, Xiaomi, Petrochina

We analyzed southbound Hong Kong connect flows in the past week and highlight flows for BOC, CNOOC, Agricultural Bank Of China, Xiaomi Corporation,...

Ke Yan, CFA, FRM

[Blue Lotus Daily]:NIO US/1810 HK/ LI US/BEKE US/981 HK/1347 HK/ACMR/9926 HK

​EV sales for NIO, Xiaomi, and LI were strong in the 20th week. Shanghai is implementing policies to boost property market demand. China has...

Blue Lotus Research Institute

Shanghai Henlius Biotech (2696.HK) - Behind the Trading Halt and Privatization Rumor

​Rumors swirl around Henlius's trading halt, raising questions about privatization.Henlius faces challenge in the market due to high debt, with...

Xinyao (Criss) Wang

HEC CJ Pharma (1558.HK)'s Merger Deal with Sunshine Lake Pharma - Almost No Investment Value

​Sunshine Lake Pharma plans to privatize and merge with CJ Pharma.However, with an outdated pipeline, the new entity's valuation performance will...

Xinyao (Criss) Wang

Key takeaways from recent events: Beike Investor Day insights, Akeso's sales rights expansion, and BYD's innovative hybrid technology launch.

EV sales for NIO, Xiaomi, and LI were strong in the 20th week. Shanghai is implementing policies to boost property market demand. China has...

Rumors swirl around Henlius's trading halt, raising questions about privatization.Henlius faces challenge in the market due to high debt, with...

Sunshine Lake Pharma plans to privatize and merge with CJ Pharma.However, with an outdated pipeline, the new entity's valuation performance will...