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

Equity Bottom-Up

<ul>
<li>Market underestimates the size of China’s stimulus packages, which consist of Rmb150bn of EV trade-in’s by year end and Rmb3tn worth of industrial equipment upgrades over 5 years;</li>
<li>Consolidation by BYD, LI and Huawei in marketing share shall continue, profitably. Our TOP PICK is BYD.</li>
<li>Consolidation by BYD, LI and Huawei in marketing share shall continue, profitably. Our TOP PICK is BYD.</li>
</ul>


Market underestimates the size of China’s stimulus packages, which consist of Rmb150bn of EV trade-in’s by year end and Rmb3tn worth of industrial equipment upgrades over 5 years;
Consolidation by BYD, LI and Huawei in marketing share shall continue, profitably. Our TOP PICK is BYD.
Consolidation by BYD, LI and Huawei in marketing share shall continue, profitably. Our TOP PICK is BYD.


[Blue Lotus Transportation Sector Update]: Consolidation by BYD, LI and Huawei Continue

Global Mobility/Transport, Equity Long-Short

Mohshin Aziz

<ul>
<li>Share price under pressure due to industry challenges and transition of new product line-ups.  </li>
<li>2024 is a blip, things will normalise 2025 and deliver strong topline and bottomline growth. </li>
<li>LiAuto is trading at bargain levels for a company delivering 3-year earnings CAGR of 38%, net cash balance sheet and churns high free cash flow. </li>
</ul>


Share price under pressure due to industry challenges and transition of new product line-ups.  
2024 is a blip, things will normalise 2025 and deliver strong topline and bottomline growth. 
LiAuto is trading at bargain levels for a company delivering 3-year earnings CAGR of 38%, net cash balance sheet and churns high free cash flow. 


LiAuto (LI US, BUY, TP:USD25.0): High Growth + Deep Value Stock

<ul>
<li>LI Auto’s decision to push out its BEV launch to 2025 is a delay of multi-faces at a time when China’s EV market is chaotically.</li>
<li>We keep rating @BUY because LI still possesses the SUV niche, enjoys a healthy margin and have ample cash. </li>
<li>We cut TP from US$40 to US$25 and maintain BUY.</li>
</ul>


LI Auto’s decision to push out its BEV launch to 2025 is a delay of multi-faces at a time when China’s EV market is chaotically.
We keep rating @BUY because LI still possesses the SUV niche, enjoys a healthy margin and have ample cash. 
We cut TP from US$40 to US$25 and maintain BUY.


[Li Auto (LI US, BUY, TP US$25) TP Change]: Delaying BEV Is the Wrong Approach to Competition

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.

<ul>
<li>Operating profit turned negative in 1Q24 compared to 1Q23 due to the price war and the failure of new model.</li>
<li>The company disappeared from the industry top-10 list of sales volume and revenue growth slowed down to zero in April.</li>
<li>All cross-sectional comparisons suggest a Sell rating for the stock.</li>
</ul>


Operating profit turned negative in 1Q24 compared to 1Q23 due to the price war and the failure of new model.
The company disappeared from the industry top-10 list of sales volume and revenue growth slowed down to zero in April.
All cross-sectional comparisons suggest a Sell rating for the stock.


Li Auto (LI US): 1Q24, A List of Bad News

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Event-Driven

<ul>
<li>PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US listed China companies.</li>
<li>The Hong Kong visit was on the back of the 26th Aug 2022 announcement by PCAOB and CSRC that they had entered into an agreement with US authorities for access.</li>
<li>In this note, we'll talk about the latest developments, possible outcomes and implications.</li>
</ul>


PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US listed China companies.
The Hong Kong visit was on the back of the 26th Aug 2022 announcement by PCAOB and CSRC that they had entered into an agreement with US authorities for access.
In this note, we'll talk about the latest developments, possible outcomes and implications.


China ADRs Delisting - Friday Could Be Judgment Day for over US$800bn Mcap of Stocks

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.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Li Auto (LI US)

[Blue Lotus Transportation Sector Update]: Consolidation by BYD, LI and Huawei Continue

China's stimulus packages are larger than expected, with significant investments in EV trade-ins and industrial equipment upgrades. BYD is...

Blue Lotus Research Institute

LiAuto (LI US, BUY, TP:USD25.0): High Growth + Deep Value Stock

LiAuto's share price is trading at bargain levels. 2024 is a blip, but earnings growth will resume 2025 onwards with a 3-year earnings CAGR of 38%...

Mohshin Aziz

[Li Auto (LI US, BUY, TP US$25) TP Change]: Delaying BEV Is the Wrong Approach to Competition

LI Auto delays BEV launch to 2025 in chaotic Chinese EV market, but still rated as a buy due to SUV niche, healthy margin, and ample cash. Target...

Blue Lotus Research Institute

Li Auto (LI US): 1Q24, A List of Bad News

Operating profit turned negative due to the price war and the failure of new model. Sales volume disappeared from the industry top-10 list and...

Ming Lu

China ADRs Delisting - Friday Could Be Judgment Day for over US$800bn Mcap of Stocks

PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US...

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

[Blue Lotus Transportation Sector Update]: Consolidation by BYD, LI and Huawei Continue

​China's stimulus packages are larger than expected, with significant investments in EV trade-ins and industrial equipment upgrades. BYD is...

Blue Lotus Research Institute

LiAuto (LI US, BUY, TP:USD25.0): High Growth + Deep Value Stock

​LiAuto's share price is trading at bargain levels. 2024 is a blip, but earnings growth will resume 2025 onwards with a 3-year earnings CAGR of 38%...

Mohshin Aziz

[Li Auto (LI US, BUY, TP US$25) TP Change]: Delaying BEV Is the Wrong Approach to Competition

​LI Auto delays BEV launch to 2025 in chaotic Chinese EV market, but still rated as a buy due to SUV niche, healthy margin, and ample cash. Target...

Blue Lotus Research Institute

Li Auto (LI US): 1Q24, A List of Bad News

Operating profit turned negative due to the price war and the failure of new model. Sales volume disappeared from the industry top-10 list and...

Ming Lu

China ADRs Delisting - Friday Could Be Judgment Day for over US$800bn Mcap of Stocks

PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US...

Sumeet Singh

China's stimulus packages are larger than expected, with significant investments in EV trade-ins and industrial equipment upgrades. BYD is...

LiAuto's share price is trading at bargain levels. 2024 is a blip, but earnings growth will resume 2025 onwards with a 3-year earnings CAGR of 38%...

LI Auto delays BEV launch to 2025 in chaotic Chinese EV market, but still rated as a buy due to SUV niche, healthy margin, and ample cash. Target...