Blue Lotus Research Institute

Andy Fu

China growth and global non-US Internet equities

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>Consumption subsidies in China has been muted in the 2020-2024 period, compared to practices in 2009-2012. We believe it reflects different thought of Chinese government at these two times;</li>
<li>Past data has suggested that consumption subsidies are effective. We expect consumer subsidies of ~RMB 50bn to be issued in C2H24 to revive consumption;</li>
<li>An even bigger consumer stimulus of ~RMB 200bn might be issued in 2025, and we believe a consumption tax reform might be one the permanent fixes for the purpose.</li>
</ul>


Consumption subsidies in China has been muted in the 2020-2024 period, compared to practices in 2009-2012. We believe it reflects different thought of Chinese government at these two times;
Past data has suggested that consumption subsidies are effective. We expect consumer subsidies of ~RMB 50bn to be issued in C2H24 to revive consumption;
An even bigger consumer stimulus of ~RMB 200bn might be issued in 2025, and we believe a consumption tax reform might be one the permanent fixes for the purpose.


How to Stimulate China's Consumption, Part IV：Consumption Voucher Is Effective

Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy Research

<ul>
<li>300750 SZ: CATL launches new commercial battery brand Tianxing to accelerate truck electrification and defend market share.（/）</li>
<li>9992 HK: Pop Mart's first LABUBU theme store opens in Bangkok with over RMB10 million in sales on the first day(+)</li>
<li>1810 HK : Huawei to launch three-hinge/ fold smartphone. (/)</li>
</ul>


300750 SZ: CATL launches new commercial battery brand Tianxing to accelerate truck electrification and defend market share.（/）
9992 HK: Pop Mart's first LABUBU theme store opens in Bangkok with over RMB10 million in sales on the first day(+)
1810 HK : Huawei to launch three-hinge/ fold smartphone. (/)


[Blue Lotus Daily]:300750 SZ/9992 HK/1810 HK/1519 HK/ZTO US/SE US/ATAT US/981 HK/000977 CH

<ul>
<li>1810 HK/1211 HK/LI US/NIO US/XPEV US: EV sales were strong in the 25th week of 2024, with several brands reaching new highs (/////////)</li>
<li>ATAT US:The first Atour Hotel 4.0 opens in Xi'an. (+)</li>
<li>Ministry of Commerce: Mainland China will increase the tax-free allowance for luggage carried by resident travelers entering from Hong Kong and Macao</li>
</ul>


1810 HK/1211 HK/LI US/NIO US/XPEV US: EV sales were strong in the 25th week of 2024, with several brands reaching new highs (/////////)
ATAT US:The first Atour Hotel 4.0 opens in Xi'an. (+)
Ministry of Commerce: Mainland China will increase the tax-free allowance for luggage carried by resident travelers entering from Hong Kong and Macao


[Blue Lotus Daily]:1810HK/1211HK/LI/NIO /XPEV/ATAT/2352CH/BEKE/2618HK/2352SZ/ZTO/1519HK/981HK/9699HK

<ul>
<li>1810 HK: Xiaomi EV deliveries continue to rebound in week 25 of 2024(/)</li>
<li>1810 HK/JD US: Data provider says smartphone sales volume grew 6.8% yoy during 6/18 (+/+)</li>
<li>ATAT US: Atour Planet achieved a GMV of RMB370mn during the 618 promotion, representing a year-on-year growth of 230%(+)</li>
</ul>


1810 HK: Xiaomi EV deliveries continue to rebound in week 25 of 2024(/)
1810 HK/JD US: Data provider says smartphone sales volume grew 6.8% yoy during 6/18 (+/+)
ATAT US: Atour Planet achieved a GMV of RMB370mn during the 618 promotion, representing a year-on-year growth of 230%(+)


[Blue Lotus Daily]:1810 HK/JD US/ATAT US/BEKE US/981 HK

Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Tracking Traffic

Focusing on Asian logistics, transportation, and travel companies

Equity Bottom-Up

<ul>
<li>Growth of outbound Chinese travel demand strong in May as HK, Macau slow</li>
<li>Domestic travel demand also showed solid growth in May and early June</li>
<li>Trip.com appears reasonably cheap now that it's dipped below US$50, BUY</li>
</ul>


Growth of outbound Chinese travel demand strong in May as HK, Macau slow
Domestic travel demand also showed solid growth in May and early June
Trip.com appears reasonably cheap now that it's dipped below US$50, BUY


Monthly Chinese Tourism Tracker | Outbound Recovery Expands | Domestic Solid Too | (June 2024)

China

Xinhu Zhongbao Co., Ltd. provides development and sale of residential properties.  The Company operates in import and export trading, hotel management, and construction materials manufacturing.

Chengdu Hi-tech Development Co., Ltd. develops and sells real estate properties.  The Company also designs and produces kitchen cabinets, produces pharmaceuticals, and develops taxation software.

Chengdu Hi Tech Development Co Ltd. (000628 CH)

Greentown China Holdings Ltd. develops real estate.  The Company builds residential villas, low-rise apartment buildings, and high-rise apartment buildings for middle and high-income people.

Shanghai Chinafortune Co Ltd manufactures and markets electrical products and instruments, including electric meters, printed circuit boards, and electric motors. The Company, through its subsidiaries, also operates in network engineering, taxi services, import/export trading, and property management.

Shanghai Lujiazui Finance & Trade Zone Development Co., Ltd. operates in land development, property management, and infrastructure facilities construction within the Lujiazui Finance and Trade Zone.  The Company also undertakes building and renovation projects.

Shanghai Lujiazui Finance & Trade Zone (600663 CH)

Gemdale Corporation develops residential buildings and operates in property rental and management. The Company also invests in commercial trading businesses.

China Overseas Property Holdings Limited operates as a property management firm. The Company manages residential communities, commercial properties and government properties in Hong Kong and Macau.

Country Garden Services Holdings Company Limited provides real estate development services. The Company develops residential apartments, multi-functional complex buildings, government and public facilities, industrial parks, highway service stations, and schools. Country Garden Services Holdings serves clients in China.

Poly Property Services Co., Ltd. provides property services. The Company offers property management, property projects pre-consultation, post-delivery evaluation and analysis, professional equipment and facilities maintenance, housekeeping, and other services. Poly Property Services provides services in China.

Hainan Haide Industry Co., Ltd. develops residential properties and operates a hotel.

Asset World Corp Public Company Limited focuses on real estate development and investment services. The Company offers property management. Asset World Corp serves customers in Thailand.

WHA Corp PCL is a built-to-suit distribution center and factory developer in Thailand.

Land and Houses Public Company Limited develops real estate projects including single-detached homes, townhouses, and condominiums. The Company builds single and attached homes, primarily on land that it develops and improves. Land and Houses also operates its own architectural, engineering, design and construction teams for customer's specific designs and orders.

Japan Prime Realty Investment Corporation is a real estate investment trust (REIT) which mainly invests in office buildings and commercial-use facilities nationwide.

Retail Opportunity Investments Corp. is a fully integrated and self-managed real estate investment trust ("REIT").  The Company specializes in the acquisition, ownership and management of necessity-based community, and neighborhood shopping centers in the western and eastern regions of the United States anchored by national and regional supermarkets and drugstores.

Retail Opportunity Investments Corp. (ROIC US)

Industrial & Infrastructure Fund Investment Corporation is a a real estate investment trust (REIT). The Company invests in real estate properties such as facilities for industry and infrastructure institution.

Industrial & Infrastructure Fund Investment (3249 JP)

Industrial & Infrastructure Fund Investment

Nippon Accommodations Fund Inc. is a real estate investment trust (REIT), which invests in income producing properties.  The Company invests in residential buildings.

SPH REIT is a Singapore-based REIT established principally to invest, directly or indirectly, in a portfolio of income-producing real estate which is used primarily for retail purposes in Asia-Pacific, as well as real estate-related assets.

Equity Commonwealth is a real estate investment trust, or REIT. The Company primarily owns office buildings located in Central Business District and suburban areas of major metropolitan markets in the United States, and has a large concentration of properties leased to the U.S. Government and medical related tenants. Equity CommonWealth also owns industrial lands in Hawaii.

Getty Realty Corporation owns and leases properties in the Northeastern and Middle Atlantic states. These properties, consisting of service stations, convenience stores and petroleum marketing terminals are leased to Getty Petroleum Marketing Inc. Getty Realty Holding is also a marketer of heating oil in Pennsylvania and Maryland.

Atour Lifestyle Holdings Limited operates as a holding company. The Company, through its subsidiaries, owns and manages midscale hotel chain through offline and online channels, including mobile application and weixin-wechat mini program. Atour Lifestyle Holdings serves customers in China.

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Atour Lifestyle Holdings (ATAT US)

How to Stimulate China's Consumption, Part IV：Consumption Voucher Is Effective

China's consumption subsidies have been quite conservative but actually effective. We expect more subsidies in 2H24 and far more in 2025. We...

Blue Lotus Research Institute

[Blue Lotus Daily]:300750 SZ/9992 HK/1810 HK/1519 HK/ZTO US/SE US/ATAT US/981 HK/000977 CH

CATL launches new commercial battery brand Tianxing to drive truck electrification and protect market share. Pop Mart's LABUBU theme store in...

Blue Lotus Research Institute

[Blue Lotus Daily]:1810HK/1211HK/LI/NIO /XPEV/ATAT/2352CH/BEKE/2618HK/2352SZ/ZTO/1519HK/981HK/9699HK

EV sales surge in 25th week of 2024, Atour Hotel 4.0 opens in Xi'an, China raises tax-free allowance for resident travelers from Hong Kong and Macao.

Blue Lotus Research Institute

[Blue Lotus Daily]:1810 HK/JD US/ATAT US/BEKE US/981 HK

Xiaomi EV deliveries rebound, smartphone sales volume grows, Atour Planet sees significant GMV growth during 618 promotion.

Blue Lotus Research Institute

Monthly Chinese Tourism Tracker | Outbound Recovery Expands | Domestic Solid Too | (June 2024)

May outbound Chinese travel demand was strong, apparently driven by tourists shifting flying outside the Asian region. Domestic demand growth also...

Tracking Traffic

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

How to Stimulate China's Consumption, Part IV：Consumption Voucher Is Effective

​China's consumption subsidies have been quite conservative but actually effective. We expect more subsidies in 2H24 and far more in 2025. We...

Blue Lotus Research Institute

[Blue Lotus Daily]:300750 SZ/9992 HK/1810 HK/1519 HK/ZTO US/SE US/ATAT US/981 HK/000977 CH

​CATL launches new commercial battery brand Tianxing to drive truck electrification and protect market share. Pop Mart's LABUBU theme store in...

Blue Lotus Research Institute

[Blue Lotus Daily]:1810HK/1211HK/LI/NIO /XPEV/ATAT/2352CH/BEKE/2618HK/2352SZ/ZTO/1519HK/981HK/9699HK

​EV sales surge in 25th week of 2024, Atour Hotel 4.0 opens in Xi'an, China raises tax-free allowance for resident travelers from Hong Kong and Macao.

Blue Lotus Research Institute

[Blue Lotus Daily]:1810 HK/JD US/ATAT US/BEKE US/981 HK

​Xiaomi EV deliveries rebound, smartphone sales volume grows, Atour Planet sees significant GMV growth during 618 promotion.

Blue Lotus Research Institute

Monthly Chinese Tourism Tracker | Outbound Recovery Expands | Domestic Solid Too | (June 2024)

May outbound Chinese travel demand was strong, apparently driven by tourists shifting flying outside the Asian region. Domestic demand growth also...

Tracking Traffic

China's consumption subsidies have been quite conservative but actually effective. We expect more subsidies in 2H24 and far more in 2025. We...

CATL launches new commercial battery brand Tianxing to drive truck electrification and protect market share. Pop Mart's LABUBU theme store in...

EV sales surge in 25th week of 2024, Atour Hotel 4.0 opens in Xi'an, China raises tax-free allowance for resident travelers from Hong Kong and Macao.

Xiaomi EV deliveries rebound, smartphone sales volume grows, Atour Planet sees significant GMV growth during 618 promotion.