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>BZ US: Age 16-24 unemployment rate declined for three consecutive months, mainly driven by the manufacturing sector.（+）</li>
<li>LI US/NIO US/XPEV US/1810 HK/1211 HK: EV post holiday sales weak, LI and AITO strong but NIO and Xiaomi down.（/////////）</li>
<li>1810 HK: Xiaomi to launch new products on July 19th (/)</li>
</ul>


BZ US: Age 16-24 unemployment rate declined for three consecutive months, mainly driven by the manufacturing sector.（+）
LI US/NIO US/XPEV US/1810 HK/1211 HK: EV post holiday sales weak, LI and AITO strong but NIO and Xiaomi down.（/////////）
1810 HK: Xiaomi to launch new products on July 19th (/)


[Blue Lotus Daily]:BZ US/LI US/NIO US/XPEV US/1810 HK/1211 HK

Global Mobility/Transport, Equity Long-Short

Mohshin Aziz

Equity Bottom-Up

<ul>
<li>Chinese auto brands commands 61% market share in May 2024, up from 7% in 2021. Its premium car market share has also risen to 25% from nothing  </li>
<li>The transition towards EV, swift adoption of technology and sleek designs has made traditional car makers (including luxury marquees) look antiquated and out of fashion compared to the Chinese brands  </li>
<li>Premium Chinese automakers LiAuto and NIO will benefit over long-term, whilst the foreign dealers and local-foreign JV OEMs will suffer over the long term. </li>
</ul>


Chinese auto brands commands 61% market share in May 2024, up from 7% in 2021. Its premium car market share has also risen to 25% from nothing  
The transition towards EV, swift adoption of technology and sleek designs has made traditional car makers (including luxury marquees) look antiquated and out of fashion compared to the Chinese brands  
Premium Chinese automakers LiAuto and NIO will benefit over long-term, whilst the foreign dealers and local-foreign JV OEMs will suffer over the long term. 


China Autos Landscape Has Permanently Changed, Foreign Brands Have Lost Their Clout

AI and Global Deep Tech, Mint Finance

Uttkarsh Kohli

AI and Global Deep Tech

Deep Fundamental Analysis

Mint Finance

Mint Finance's investment research blends deep fundamental analysis with technical & quant insights. Investment strategies straddle across multiple asset classes with risk management embedded into every trade to deliver an outsized reward-to-risk ratio.

Mint Finance's research is centered around three key themes. First, energy transition and climate change. Second, artificial intelligence. Third, shifting world order with its impact across politics and monetary economics.

<ul>
<li>
Energy Growth: Tesla’s energy storage business surged to 9.4 GWh in Q2, a 135% increase from Q1's 4 GWh.</li>
<li>
China's Impact: Shanghai Gigafactory shipments fell 24.2% YoY in June, delivering 71,007 units amid a Chinese price war.</li>
<li>
FSD &amp; Robotaxi: Full Self-Driving price cut to $8,000 from $15,000; investors await Robotaxi Day on 8/8.</li>
</ul>



Energy Growth: Tesla’s energy storage business surged to 9.4 GWh in Q2, a 135% increase from Q1's 4 GWh.

China's Impact: Shanghai Gigafactory shipments fell 24.2% YoY in June, delivering 71,007 units amid a Chinese price war.

FSD &amp; Robotaxi: Full Self-Driving price cut to $8,000 from $15,000; investors await Robotaxi Day on 8/8.


Tesla Q2 Earnings Preview: All Eyes on China, Energy Storage, & Robotaxi

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Hua Hong Semiconductor / Equity Bottom-Up

<ul>
<li>After hitting a low point in Q4 2023, Research on Hong Kong companies has been slow to pick up reflecting the ongoing skepticism from investors. </li>
<li>Reports on the large China tech companies dominated the top ten companies covered over the last couple of years and in the first half of 2024.</li>
<li>As China continues to dominate and make news in the global EV market, research in that sector has picked up.</li>
</ul>


After hitting a low point in Q4 2023, Research on Hong Kong companies has been slow to pick up reflecting the ongoing skepticism from investors. 
Reports on the large China tech companies dominated the top ten companies covered over the last couple of years and in the first half of 2024.
As China continues to dominate and make news in the global EV market, research in that sector has picked up.


BUY/SELL/HOLD: China/Hong Kong Stock Updates (July 8th)

<ul>
<li>1211 HK/LI US /1810 HK/NIO US/XPEV US: In the 26th week of 2024 (6/24-6/30), new energy vehicles strengthened across the board, mainly due to consumption subsidies（/////////）</li>
<li>MNSO US: Indonesia Plans to Impose 100%-200% Tariffs on Chinese Imports (-)</li>
<li>Macro News Update: Expectations Rise for Consumption Tax Reform (+)</li>
</ul>


1211 HK/LI US /1810 HK/NIO US/XPEV US: In the 26th week of 2024 (6/24-6/30), new energy vehicles strengthened across the board, mainly due to consumption subsidies（/////////）
MNSO US: Indonesia Plans to Impose 100%-200% Tariffs on Chinese Imports (-)
Macro News Update: Expectations Rise for Consumption Tax Reform (+)


[Blue Lotus Daily]:1211 HK/LI US /1810 HK/NIO US/XPEV US/MNSO US/981 HK/BEKE US/2150 HK

China

Li Auto Inc. manufactures automobiles. The Company designs, develops, and sells smart new energy electric sport utility vehicles. Li Auto conducts businesses in China.

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Li Auto (LI US)

[Blue Lotus Daily]:BZ US/LI US/NIO US/XPEV US/1810 HK/1211 HK

Unemployment rate for 16-24 age group in US drops due to manufacturing sector; EV sales post-holiday weak, Xiaomi to launch new products on July...

Blue Lotus Research Institute

China Autos Landscape Has Permanently Changed, Foreign Brands Have Lost Their Clout

Chinese auto brands have surged in market share, leaving traditional car makers behind with their sleek designs and EV technology, benefiting...

Mohshin Aziz

Tesla Q2 Earnings Preview: All Eyes on China, Energy Storage, & Robotaxi

Investors look forward to Tesla's Q2 earnings report on July 23rd. nergy storage business growth (up 135% QoQ to 9.4 GWh), a $25k model car, &...

Mint Finance

BUY/SELL/HOLD: China/Hong Kong Stock Updates (July 8th)

Tech NEV companies continue to dominate the research landscape for Hong Kong coverage. Bosideng, China Water Affairs, Topsports, BYD and Xiaomi...

David Mudd

[Blue Lotus Daily]:1211 HK/LI US /1810 HK/NIO US/XPEV US/MNSO US/981 HK/BEKE US/2150 HK

New energy vehicles see growth in 26th week of 2024 due to consumption subsidies; Indonesia plans high tariffs on Chinese imports; expectations...

Blue Lotus Research Institute

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

[Blue Lotus Daily]:BZ US/LI US/NIO US/XPEV US/1810 HK/1211 HK

​Unemployment rate for 16-24 age group in US drops due to manufacturing sector; EV sales post-holiday weak, Xiaomi to launch new products on July...

Blue Lotus Research Institute

China Autos Landscape Has Permanently Changed, Foreign Brands Have Lost Their Clout

​Chinese auto brands have surged in market share, leaving traditional car makers behind with their sleek designs and EV technology, benefiting...

Mohshin Aziz

Tesla Q2 Earnings Preview: All Eyes on China, Energy Storage, & Robotaxi

Investors look forward to Tesla's Q2 earnings report on July 23rd. nergy storage business growth (up 135% QoQ to 9.4 GWh), a $25k model car, &...

Mint Finance

BUY/SELL/HOLD: China/Hong Kong Stock Updates (July 8th)

Tech NEV companies continue to dominate the research landscape for Hong Kong coverage. Bosideng, China Water Affairs, Topsports, BYD and Xiaomi...

David Mudd

[Blue Lotus Daily]:1211 HK/LI US /1810 HK/NIO US/XPEV US/MNSO US/981 HK/BEKE US/2150 HK

​New energy vehicles see growth in 26th week of 2024 due to consumption subsidies; Indonesia plans high tariffs on Chinese imports; expectations...

Blue Lotus Research Institute

Unemployment rate for 16-24 age group in US drops due to manufacturing sector; EV sales post-holiday weak, Xiaomi to launch new products on July...

Chinese auto brands have surged in market share, leaving traditional car makers behind with their sleek designs and EV technology, benefiting...

New energy vehicles see growth in 26th week of 2024 due to consumption subsidies; Indonesia plans high tariffs on Chinese imports; expectations...