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>Two days before Huawei and Chery releasing their Luxeed S7 sedan to rival Model 3, LI unveiled the technical details of its MPV entry MEGA; </li>
<li>We see MEGA taking a meaningful market share from BYD’s Denza D9, GM’s GL8, GAC’s Trumpchi M8, all selling ~10K a month. We raise MEGA’s 2024 shipment to 57K;</li>
<li>We raise LI’s TP from US$40 to US$47 and maintain BUY.</li>
</ul>


Two days before Huawei and Chery releasing their Luxeed S7 sedan to rival Model 3, LI unveiled the technical details of its MPV entry MEGA; 
We see MEGA taking a meaningful market share from BYD’s Denza D9, GM’s GL8, GAC’s Trumpchi M8, all selling ~10K a month. We raise MEGA’s 2024 shipment to 57K;
We raise LI’s TP from US$40 to US$47 and maintain BUY.


[Li Auto Inc. (LI US, BUY, TP US$47) Target Price Change]: Li’s MEGA Can Change the MPV Landscape

Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

News from Caixin

Cross Asset Strategy

<ul><li>Probe / Caixin Explains: EU probe into Chinese EV-makers’ alleged state support</li><li><p>China-Australia /: China, Australia agree to boost engagement in trade, energy</p></li><li><p>Property /: China should avoid a real estate ‘hard landing,’ former Chongqing mayor says</p></li></ul>

Probe / Caixin Explains: EU probe into Chinese EV-makers’ alleged state supportChina-Australia /: China, Australia agree to boost engagement in trade, energyProperty /: China should avoid a real estate ‘hard landing,’ former Chongqing mayor says

CX Daily: EU Probe Into Chinese EV-Makers’ Alleged State Support 

APAC IPOs & Placements, Aequitas Research

Ethan Aw

APAC IPOs & Placements

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 Capital Markets

Chenqi Technology Limited / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/chenqi-technology-limited" target="_blank" data-smartkarma-citation="entities:40058:1" rel="noopener">Chenqi Technology Limited (CT HK)</a> is looking to raise US$300m in its upcoming Hong Kong IPO. </li>
<li>Chenqi Technology (Chenqi) is a mobility technology and service company in China, founded by the GAC Group and Tencent. </li>
<li>Chenqi has grown its GTV fast on the back of network expansion. However, Dida’s inability to list and Chinese regulators’ scrutiny on Didi would likely dent sentiment surrounding Chenqi. </li>
</ul>



Chenqi Technology Limited (CT HK) is looking to raise US$300m in its upcoming Hong Kong IPO. 
Chenqi Technology (Chenqi) is a mobility technology and service company in China, founded by the GAC Group and Tencent. 
Chenqi has grown its GTV fast on the back of network expansion. However, Dida’s inability to list and Chinese regulators’ scrutiny on Didi would likely dent sentiment surrounding Chenqi. 


Chenqi Technology Pre-IPO - Listing Would Almost Feel like a Pipe Dream

Thematic (Sector/Industry)

<ul>
<li><a href="https://www.smartkarma.com/entities/xpeng-inc" target="_blank" data-smartkarma-citation="entities:29217:1" rel="noopener"> BABA/PDD/JD/ZTO/1519.HK/: Express parcel volume grew +20% YoY during first week of 11.11 Shopping (+) </a></li>
<li>BEKE: Property Update - Mild recovery for existing home sales in October and 1st week of November</li>
<li>XPEV: Xpeng, Huawei dispute over Autonomous Emergency Braking (AEB) (-)</li>
</ul>


 BABA/PDD/JD/ZTO/1519.HK/: Express parcel volume grew +20% YoY during first week of 11.11 Shopping (+) 
BEKE: Property Update - Mild recovery for existing home sales in October and 1st week of November
XPEV: Xpeng, Huawei dispute over Autonomous Emergency Braking (AEB) (-)


[Blue Lotus Daily]BABA/PDD/JD/ZTO/BEKE/XPEV/NIO/LI/BGNE

<ul>
<li>The rapid ascending Huawei EV ecosystem is threatening everyone except BYD and Tesla. XPEV is the next in line after NIO;</li>
<li>We do view Xiaomi as offering an alternative to Huawei to present a unified IOT user experience. But now is too early to judge Xiaomi’s success and XPEV’s role;</li>
<li>We cut the TP from US$24.3 to US$18 and maintain BUY.</li>
</ul>


The rapid ascending Huawei EV ecosystem is threatening everyone except BYD and Tesla. XPEV is the next in line after NIO;
We do view Xiaomi as offering an alternative to Huawei to present a unified IOT user experience. But now is too early to judge Xiaomi’s success and XPEV’s role;
We cut the TP from US$24.3 to US$18 and maintain BUY.


[XPeng Inc. (XPEV US, BUY, TP US$18) Target Price Change]: Does Xiaopeng Need Xiaomi to Survive?

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)

[Li Auto Inc. (LI US, BUY, TP US$47) Target Price Change]: Li’s MEGA Can Change the MPV Landscape

"LI unveils technical details of MEGA MPV, expected to compete with Denza D9, GL8, and Trumpchi M8. Shipment estimate raised to 57K by 2024. LI's...

Blue Lotus Research Institute

CX Daily: EU Probe Into Chinese EV-Makers’ Alleged State Support

Probe / Caixin Explains: EU probe into Chinese EV-makers’ alleged state support Chinese electric-vehicle (EV) manufacturers’ European business has...

Caixin Global

Chenqi Technology Pre-IPO - Listing Would Almost Feel like a Pipe Dream

Chenqi Technology Limited is looking to raise US$300m in its upcoming Hong Kong IPO. Dida’s inability to list and Chinese regulators’ scrutiny on...

Ethan Aw

[Blue Lotus Daily]BABA/PDD/JD/ZTO/BEKE/XPEV/NIO/LI/BGNE

Daily news including JD.com, Alibaba, PDD Holdings, ZTO Express Cayman, J&T Global Express, KE Holdings, XPeng, and Li Auto.

Blue Lotus Research Institute

[XPeng Inc. (XPEV US, BUY, TP US$18) Target Price Change]: Does Xiaopeng Need Xiaomi to Survive?

Huawei's EV ecosystem poses a threat to many, except BYD and Tesla. XPEV follows NIO, while Xiaomi's success and XPEV's role are yet to be...

Blue Lotus Research Institute

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52-week Range

Market Cap (USDm)

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[Li Auto Inc. (LI US, BUY, TP US$47) Target Price Change]: Li’s MEGA Can Change the MPV Landscape

​"LI unveils technical details of MEGA MPV, expected to compete with Denza D9, GL8, and Trumpchi M8. Shipment estimate raised to 57K by 2024. LI's...

Blue Lotus Research Institute

CX Daily: EU Probe Into Chinese EV-Makers’ Alleged State Support

Probe / Caixin Explains: EU probe into Chinese EV-makers’ alleged state support Chinese electric-vehicle (EV) manufacturers’ European business has...

Caixin Global

Chenqi Technology Pre-IPO - Listing Would Almost Feel like a Pipe Dream

Chenqi Technology Limited is looking to raise US$300m in its upcoming Hong Kong IPO. Dida’s inability to list and Chinese regulators’ scrutiny on...

Ethan Aw

[Blue Lotus Daily]BABA/PDD/JD/ZTO/BEKE/XPEV/NIO/LI/BGNE

Daily news including JD.com, Alibaba, PDD Holdings, ZTO Express Cayman, J&T Global Express, KE Holdings, XPeng, and Li Auto.

Blue Lotus Research Institute

[XPeng Inc. (XPEV US, BUY, TP US$18) Target Price Change]: Does Xiaopeng Need Xiaomi to Survive?

Huawei's EV ecosystem poses a threat to many, except BYD and Tesla. XPEV follows NIO, while Xiaomi's success and XPEV's role are yet to be...

Blue Lotus Research Institute

"LI unveils technical details of MEGA MPV, expected to compete with Denza D9, GL8, and Trumpchi M8. Shipment estimate raised to 57K by 2024. LI's...