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

Equity Bottom-Up

<ul>
<li>We expect that Meituan and Douyin engaged in fierce competition in 2Q23. Meituan intensified its efforts in three aspects: commission reduction and rebates, promotion of "Meituan Quanquan," and video subsidy. </li>
<li>However, our 2Q23 Meituan revenue/profit estimates are in-line/34% higher vs. cons. This is mainly because it was Meituan's first quarter of counterattack.</li>
<li>Meituan's counterattack has shown initial results, in Douyin’s slowing local services growth during 618, and the return of merchants. We maintain Meituan’s BUY rating, but lowered TP to HK$ 165.</li>
</ul>


We expect that Meituan and Douyin engaged in fierce competition in 2Q23. Meituan intensified its efforts in three aspects: commission reduction and rebates, promotion of "Meituan Quanquan," and video subsidy. 
However, our 2Q23 Meituan revenue/profit estimates are in-line/34% higher vs. cons. This is mainly because it was Meituan's first quarter of counterattack.
Meituan's counterattack has shown initial results, in Douyin’s slowing local services growth during 618, and the return of merchants. We maintain Meituan’s BUY rating, but lowered TP to HK$ 165.


[Meituan (3690 HK, BUY, TP HK$165) TP Change]: Competition with Douyin Continues, Cut TP to HK$165

Thematic (Sector/Industry)

<ul>
<li>2618.HK/002352.CH: Cainiao launching its own national express delivery network (-/-)</li>
<li>3690.HK/PDD: Meituan planning to launch “Summer War” in community group buying (-/-)</li>
<li>BEKE: Beike is planning to extend business to real estate upstream, exploiting extra value beyond new home sales channel(-)</li>
</ul>


2618.HK/002352.CH: Cainiao launching its own national express delivery network (-/-)
3690.HK/PDD: Meituan planning to launch “Summer War” in community group buying (-/-)
BEKE: Beike is planning to extend business to real estate upstream, exploiting extra value beyond new home sales channel(-)


China TMT Update-2618.HK/2352.CH/3690.HK/PDD/BEKE-Cainiao Launching Express Delivery Network

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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.

Quantitative Analysis

<ul>
<li>We analyzed the latest HK SFC report for aggregate short position as of Jun 16th.</li>
<li>Top short increases and decreases were tabulated for one week and four week period. </li>
<li>We highlight short changes in Baba, Tencent, Meituan, Cm Bank, Yankuang Energy.</li>
</ul>


We analyzed the latest HK SFC report for aggregate short position as of Jun 16th.
Top short increases and decreases were tabulated for one week and four week period. 
We highlight short changes in Baba, Tencent, Meituan, Cm Bank, Yankuang Energy.


HK Short Interest Weekly: Baba, Tencent, Meituan, CMB, Yankuang Energy

<ul>
<li>NTES/700.HK: China’s NPPA publishes list of 89 domestic game code approval</li>
<li>9995HK/1801HK：RemeGen explored ADC-PD1 combination theray for its RC88 and RC108 with Innovent (-)</li>
<li>LKNCY/2150HK/ATAT/3690HK: Tourism spending maintain stable growth during Dragon Boat Festival, indicating sustainable recovery in service oriented consumption in China.(+)</li>
</ul>


NTES/700.HK: China’s NPPA publishes list of 89 domestic game code approval
9995HK/1801HK：RemeGen explored ADC-PD1 combination theray for its RC88 and RC108 with Innovent (-)
LKNCY/2150HK/ATAT/3690HK: Tourism spending maintain stable growth during Dragon Boat Festival, indicating sustainable recovery in service oriented consumption in China.(+)


China TMT Update-NTES/700.HK/9995HK/1801HK/LKNCY/2150HK/ATAT/3690HK:Game Code,ADC-PD1, Tourism Spend

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of June 23rd.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight flows for Tencent, Meituan, Industrial And Commercial Bank Of China.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of June 23rd.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Tencent, Meituan, Industrial And Commercial Bank Of China.


Hong Kong Connect Flows (Jun 23rd): Tencent, Meituan, ICBC

China

Meituan operates as a web based shopping platform for locally found consumer products and retail services. The Company offers deals of the day by selling vouchers on local services and entertainment, dining, delivery, and other services. Meituan provides its services throughout China.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
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Meituan (3690 HK)

[Meituan (3690 HK, BUY, TP HK$165) TP Change]: Competition with Douyin Continues, Cut TP to HK$165

Meituan's counterattack has shown initial results, in Douyin’s slowing local services growth during 618, and the return of merchants. We maintain...

Blue Lotus Research Institute

China TMT Update-2618.HK/2352.CH/3690.HK/PDD/BEKE-Cainiao Launching Express Delivery Network

2618.HK/352.CH: Cainiao launching own national express delivery network；3690.HK/PDD: Meituan planning to launch “Summer War” in CGB；BEKE: Beike is...

Blue Lotus Research Institute

HK Short Interest Weekly: Baba, Tencent, Meituan, CMB, Yankuang Energy

We analyzed the latest HK SFC report for aggregate short position as of Jun 16th and highlight short interest changes in Baba, Tencent, Meituan, Cm...

Ke Yan, CFA, FRM

China TMT Update-NTES/700.HK/9995HK/1801HK/LKNCY/2150HK/ATAT/3690HK:Game Code,ADC-PD1, Tourism Spend

NTES/700.HK: 89 domestic game code approval；9995HK/1801HK：RemeGen explored ADC-PD1 combination theray；LKNCY/2150HK/ATAT/3690HK: Tourism spending...

Blue Lotus Research Institute

Hong Kong Connect Flows (Jun 23rd): Tencent, Meituan, ICBC

We analyzed southbound Hong Kong connect flows in the past week and highlight flows for Tencent, Meituan, Industrial And Commercial Bank Of China.

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)