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>Real Estate Industry Update: Housing bureaus in China’s first tier cities pledge to draft supportive policy on home purchase（+）</li>
<li>2150HK: Nayuki teahouse average store revenue remains flattish YoY in July 2023（/）</li>
<li>LI/NIO/XPEV: Li Auto, NIO and Xpeng update August vehicle delivery results (+/+//)</li>
</ul>


Real Estate Industry Update: Housing bureaus in China’s first tier cities pledge to draft supportive policy on home purchase（+）
2150HK: Nayuki teahouse average store revenue remains flattish YoY in July 2023（/）
LI/NIO/XPEV: Li Auto, NIO and Xpeng update August vehicle delivery results (+/+//)


China TMT Update-BEKE/2150.HK/LI/NIO/XPEV-Supportive Policy on Home Purchase;August Vehicle Delivery

Equity Bottom-Up

<ul>
<li>Our 1H23 revenue estimate is 8.7% lower than consensus, and we expect 1H23 NPM at breakeven vs. consensus at 5%。</li>
<li>Mainly because teahouse brands in China had suffered the intensified competition from the price war in Coffee industry.</li>
<li>We maintain the stock as BUY rating as the margin improvement process is gradual showing effect, while we lower TP by US$2 to US$9.3 to reflect the intensified competition pressure.</li>
</ul>


Our 1H23 revenue estimate is 8.7% lower than consensus, and we expect 1H23 NPM at breakeven vs. consensus at 5%。
Mainly because teahouse brands in China had suffered the intensified competition from the price war in Coffee industry.
We maintain the stock as BUY rating as the margin improvement process is gradual showing effect, while we lower TP by US$2 to US$9.3 to reflect the intensified competition pressure.


[Nayuki (2150 HK, BUY, TP HK$9.3) TP Change]: Store Operating Profit Margin Improvement On-Track

<ul>
<li>KE Holdings: Beijing plans to standardize the registration and supervision process of real estate brokerage agents, and no mention of commission cap</li>
<li>2150HK : Nayuki officially announced the opening of franchise business with high requirements, bodes well for margin improvement.（+）</li>
<li>3690.HK: Meituan recruiting 3P delivery partners in lower tier markets (+)</li>
</ul>


KE Holdings: Beijing plans to standardize the registration and supervision process of real estate brokerage agents, and no mention of commission cap
2150HK : Nayuki officially announced the opening of franchise business with high requirements, bodes well for margin improvement.（+）
3690.HK: Meituan recruiting 3P delivery partners in lower tier markets (+)


China TMT Update-BEKE/2150HK/3690HK-Meituan Recruiting 3P Delivery Partners in Lower Tier Markets

<ul>
<li>PDD/BABA: PDD testing large “RMB 9.9” channel entrance on the PDD app homepage (+/-)</li>
<li>BEKE: Beike announced to expand business toward industry upstream, establishing “Bei Hao Jia” business line(+)</li>
<li>Luckin Coffee &amp; Nayuki: Media survey suggest that coffee price war is hurting milk tea’s business</li>
</ul>


PDD/BABA: PDD testing large “RMB 9.9” channel entrance on the PDD app homepage (+/-)
BEKE: Beike announced to expand business toward industry upstream, establishing “Bei Hao Jia” business line(+)
Luckin Coffee &amp; Nayuki: Media survey suggest that coffee price war is hurting milk tea’s business


China TMT Update-PDD/BABA/BEKE/LUCKIN- PDD Testing “RMB 9.9” Channel;BEKE Launching “Bei Hao Jia”

<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

Hong Kong

Nayuki Holdings Limited operates as a holding compnay. The Company, through its subsidiaries, produces and retails tea and bakery products. Nayuki serves customers in China.

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Nayuki Holdings (2150 HK)

China TMT Update-BEKE/2150.HK/LI/NIO/XPEV-Supportive Policy on Home Purchase;August Vehicle Delivery

China’s first tier cities draft supportive policy on home purchase;Nayuki teahouse average store revenue remains flattish YoY;LI/NIO/XPEV: Li Auto,...

Blue Lotus Research Institute

[Nayuki (2150 HK, BUY, TP HK$9.3) TP Change]: Store Operating Profit Margin Improvement On-Track

We maintain the stock as BUY rating as the margin improvement process is gradual showing effect, while we lower TP by US$2 to US$9.3 to reflect the...

Blue Lotus Research Institute

China TMT Update-BEKE/2150HK/3690HK-Meituan Recruiting 3P Delivery Partners in Lower Tier Markets

KE Holdings: Beijing plans to standardize the process of real estate brokerage agents;2150HK : Nayuki announced the opening of franchise;3690.HK:...

Blue Lotus Research Institute

China TMT Update-PDD/BABA/BEKE/LUCKIN- PDD Testing “RMB 9.9” Channel;BEKE Launching “Bei Hao Jia”

PDD/BABA: PDD testing large “RMB 9.9” channel entrance (+/-);BEKE: Beike establishing “Bei Hao Jia” (+);Luckin Coffee & Nayuki: Media survey...

Blue Lotus Research Institute

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

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