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>PDD: Douyin launches “Super Cheap Little Shop” to provide low cost products (-)</li>
<li>ByteDance/BEKE: ByteDance give up offline housing brokerage business, while online business remains（+）</li>
<li>NIO: NIO to officially launch all-new ES6 on May 24 (+)</li>
</ul>


PDD: Douyin launches “Super Cheap Little Shop” to provide low cost products (-)
ByteDance/BEKE: ByteDance give up offline housing brokerage business, while online business remains（+）
NIO: NIO to officially launch all-new ES6 on May 24 (+)


China TMT Update (May.6) - Douyin/PDD/ByteDance/BEKE/NIO: Douyin Launches “Super Cheap Little Shop”

<ul>
<li>BILI: Some BILI content creators reportedly cease to upload videos due to monetization(-)</li>
<li>BEKE: Housing transaction volume continue ramp up in March 2023(+)</li>
<li>9995HK: BioNTech signed ADC license deal with a Chinese startup (-)</li>
</ul>


BILI: Some BILI content creators reportedly cease to upload videos due to monetization(-)
BEKE: Housing transaction volume continue ramp up in March 2023(+)
9995HK: BioNTech signed ADC license deal with a Chinese startup (-)


China TMT Update - BILI/BEKE/9995HK -Some BILI Content Creators Reportedly Cease to Upload Videos(-)

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>In Q1 2023, 86 different Hong Kong-listed companies bought back shares either locally or on foreign exchanges. Total buybacks were HK$22.856bn.</li>
<li>8 Companies made up 90% of the total. On average, they bought back shares 4 days out of every 10 within the quarter. </li>
<li>A lot of the smaller companies doing buybacks were significant portions of their volume.</li>
</ul>


In Q1 2023, 86 different Hong Kong-listed companies bought back shares either locally or on foreign exchanges. Total buybacks were HK$22.856bn.
8 Companies made up 90% of the total. On average, they bought back shares 4 days out of every 10 within the quarter. 
A lot of the smaller companies doing buybacks were significant portions of their volume.


HK Buybacks Q1 2023: 8 Names Are 90% of the Total - AIA, Tencent, StanChart, Greatwall the Big 4

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

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.

Equity Bottom-Up

<ul>
<li>Baidu launched a beta test of a ChatGTP-like function, WXYY.</li>
<li>Tencent announced it will close its digital collection platform, Huanhe, in June.</li>
<li>KE’s revenue decreased by 25% and new losses were RMB1.4 billion.</li>
</ul>


Baidu launched a beta test of a ChatGTP-like function, WXYY.
Tencent announced it will close its digital collection platform, Huanhe, in June.
KE’s revenue decreased by 25% and new losses were RMB1.4 billion.


China Internet Weekly (20Mar2023): Baidu, Tencent, KE

<ul>
<li>BEKE (Beike) reported 4Q22 revenue in-line/4.9% vs our est./cons. Non-GAAP operating income 65% higher than our estimate and non-GAAP net income 59%/122% higher than our est./cons. </li>
<li>We estimate 1Q23/2023 revenue to rise 46%/24% YoY. We think Beike’s strategy on focusing quality above scale is suitable under current real estate market trend, bode well for profitability.</li>
<li>We maintain BUY rating and raise the TP by US$2 to US$23 to reflect 1) the gross margin improvement, 2)narrower loss-making in new initiatives.</li>
</ul>


BEKE (Beike) reported 4Q22 revenue in-line/4.9% vs our est./cons. Non-GAAP operating income 65% higher than our estimate and non-GAAP net income 59%/122% higher than our est./cons. 
We estimate 1Q23/2023 revenue to rise 46%/24% YoY. We think Beike’s strategy on focusing quality above scale is suitable under current real estate market trend, bode well for profitability.
We maintain BUY rating and raise the TP by US$2 to US$23 to reflect 1) the gross margin improvement, 2)narrower loss-making in new initiatives.


[KE Holdings (BEKE US) Target Price Change]: Raise TP for Better Market Outlook and Profitability

China

KE Holdings Inc. operates as an integrated online and offline platform for housing transactions and services. The Company offers existing and new home sales, home rentals, home renovation, real estate financial solutions, and other services. KE Holdings conducts businesses in China.

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KE Holdings (BEKE US)

China TMT Update (May.6) - Douyin/PDD/ByteDance/BEKE/NIO: Douyin Launches “Super Cheap Little Shop”

PDD: Douyin launches “Super Cheap Little Shop” (-)；ByteDance give up offline housing brokerage business, while online business remains（+）；NIO to...

Blue Lotus Research Institute

China TMT Update - BILI/BEKE/9995HK -Some BILI Content Creators Reportedly Cease to Upload Videos(-)

9995HK: BioNTech signed ADC license deal with a Chinese startup; BILI: Some BILI content creators reportedly cease to upload videos(-); BEKE:...

Blue Lotus Research Institute

HK Buybacks Q1 2023: 8 Names Are 90% of the Total - AIA, Tencent, StanChart, Greatwall the Big 4

86 names listed in HK bought back shares in Q1. 90% of total buybacks were done by 8 names. half the names bought back less than US$1mm. AIA,...

Travis Lundy

China Internet Weekly (20Mar2023): Baidu, Tencent, KE

Baidu launched a beta test of a ChatGTP-like function, WXYY. Tencent announced it will close its digital collection platform, Huanhe. KE’s revenue...

Ming Lu

[KE Holdings (BEKE US) Target Price Change]: Raise TP for Better Market Outlook and Profitability

We maintain BUY rating and raise the TP by US$2 to US$23 to reflect 1) the gross margin improvement, 2)narrower loss-making in new initiatives.

Blue Lotus Research Institute

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