Equity Long-Short, Semiconductors, Fabricated Knowledge

Douglas O'Laughlin

Equity Long-Short, Semiconductors

Fabricated Knowledge

Learn more about the world's most important manufactured product. Meaningful insight, timely analysis, and an occasional investment idea.

Thematic (Sector/Industry)

<ul>
<li>This earnings season has highlighted the robust performance of older-generation ("trailing edge") companies.</li>
<li>Their inventories have also been rising. At the same time, there's a noticeable demand slump in China.</li>
<li>Surprisingly, Chinese semiconductor firms are increasing their investments in older technology, known as the "lagging edge" capacity. Put the pieces together, and there’s a big story here.</li>
</ul>


This earnings season has highlighted the robust performance of older-generation ("trailing edge") companies.
Their inventories have also been rising. At the same time, there's a noticeable demand slump in China.
Surprisingly, Chinese semiconductor firms are increasing their investments in older technology, known as the "lagging edge" capacity. Put the pieces together, and there’s a big story here.


Chinese EV's and the Lagging Edge Price War

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

<ul>
<li>1810. HK: Takeaways for Xiaomi from Apple’s F3Q23 earnings (-)</li>
<li>NIO:  local benchmarking platform revealed NIO phone's core specs (+)</li>
<li>LKNCY: Luckin Coffee sold 7.39mn cups on the Start of Autumn（+）</li>
</ul>


1810. HK: Takeaways for Xiaomi from Apple’s F3Q23 earnings (-)
NIO:  local benchmarking platform revealed NIO phone's core specs (+)
LKNCY: Luckin Coffee sold 7.39mn cups on the Start of Autumn（+）


China TMT Update-1810. HK/NIO/LKNCY- NIO Phone's Core Specs/Luckin Sold 7.39mn Cups/Apple’s Earnings

<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

<ul>
<li>The phenomenon of Chinese vendors taking terms to launch price wars, diminishing industry’s profitability is a headache. </li>
<li>We conclude the reason is China’s technology lead is so slim that price wars against each other is the only way to stay in the game;</li>
<li>Although renewable energy has long and expansive value chains, transportation is a separate node. China’s success in EV has strategic value for a wide range of industries.</li>
</ul>


The phenomenon of Chinese vendors taking terms to launch price wars, diminishing industry’s profitability is a headache. 
We conclude the reason is China’s technology lead is so slim that price wars against each other is the only way to stay in the game;
Although renewable energy has long and expansive value chains, transportation is a separate node. China’s success in EV has strategic value for a wide range of industries.


[Blue Lotus Sector Update]: Investors Tolerate Amazon, Why Not China New Energy?

<ul>
<li>NIO: NIO to offer single-motor model in sub-brand codenamed Alps (+)</li>
<li>BEKE: Political Bureau of the Central Committee shifted tone on real estate regulation（+）</li>
<li>LEGN: Janssen reported CARVYKTI sales US$117mn, lower than our expectation (-)</li>
</ul>


NIO: NIO to offer single-motor model in sub-brand codenamed Alps (+)
BEKE: Political Bureau of the Central Committee shifted tone on real estate regulation（+）
LEGN: Janssen reported CARVYKTI sales US$117mn, lower than our expectation (-)


China TMT Update-NIO/BEKE/LEGN-NIO to Offer Single-Motor Model;Political Bureau Shifted Tone

China

NIO Inc. manufactures and sells automobiles. The Company offers electric vehicles and parts, as well as provides battery charging services. NIO serves customers worldwide.

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NIO (NIO US)

Chinese EV's and the Lagging Edge Price War

Prices cuts imply price wars, Western chip subsidies are against strategy spending in China. Full stack margin at Chinese Automotive makers means...

Fabricated Knowledge

China TMT Update-1810. HK/NIO/LKNCY- NIO Phone's Core Specs/Luckin Sold 7.39mn Cups/Apple’s Earnings

1810. HK: Takeaways for Xiaomi from Apple’s F3Q23 earnings;NIO: local benchmarking platform revealed NIO phone's core specs;Luckin Coffee sold...

Blue Lotus Research Institute

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

[Blue Lotus Sector Update]: Investors Tolerate Amazon, Why Not China New Energy?

Although renewable energy has long and expansive value chains, transportation is a separate node. China’s success in EV has strategic value for a...

Blue Lotus Research Institute

China TMT Update-NIO/BEKE/LEGN-NIO to Offer Single-Motor Model;Political Bureau Shifted Tone

NIO: NIO to offer single-motor model ;BEKE: Political Bureau of the Central Committee shifted tone on real estate regulation;LEGN: Janssen reported...

Blue Lotus Research Institute

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