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>C1Q24 was marked by liquidity crises in innovative drug and medical device, and depressed margin in digital health. We believe this is a buying opportunity;</li>
<li>PD-1 has recovered nicely in C2H23 and exceeded our expectation made for 2023.We forecast 20% YoY growth in 2024.Further,pipeline maturity has led to new drugs in autoimmune and metabolic drugs;</li>
<li>Biosimilar has proven to be part of the solution to deal with low paying ability of Chinese healthcare and denial of access to the high paying US healthcare market. </li>
</ul>


C1Q24 was marked by liquidity crises in innovative drug and medical device, and depressed margin in digital health. We believe this is a buying opportunity;
PD-1 has recovered nicely in C2H23 and exceeded our expectation made for 2023.We forecast 20% YoY growth in 2024.Further,pipeline maturity has led to new drugs in autoimmune and metabolic drugs;
Biosimilar has proven to be part of the solution to deal with low paying ability of Chinese healthcare and denial of access to the high paying US healthcare market. 


[Blue Lotus Healthcare Sector Update]: Bottom-Fishing at the Bottom of the Business Cycle

Thematic (Sector/Industry)

<ul>
<li>9926 HK /1801 HK /1877 HK/ BGNE/ ZLAB/9995 HK: US lobbying group distanced itself from Wuxi AppTec after being accused（/）</li>
<li>1211 HK/ XPEV/ 1810 HK：GAC AION orders surged after price cuts（/）</li>
<li>Chery Automobile:It Is Reported that Chery Automobile Is in Talks with the Italian government to build a factory（/）</li>
</ul>


9926 HK /1801 HK /1877 HK/ BGNE/ ZLAB/9995 HK: US lobbying group distanced itself from Wuxi AppTec after being accused（/）
1211 HK/ XPEV/ 1810 HK：GAC AION orders surged after price cuts（/）
Chery Automobile:It Is Reported that Chery Automobile Is in Talks with the Italian government to build a factory（/）


[Blue Lotus Daily]9926HK/1801HK/1877HK/BGNE/ZLAB/9995HK/1211HK/XPEV/1810HK/Chery Automobile/LI/NIO

<ul>
<li>LI/XPEV/NIO: Li, Xpeng and GAC AION announced new price actions（+/+/-）</li>
<li>ZLAB: Zai Lab’s revenue growth in 4Q23 is weak, and loss narrowing is limited （-）</li>
<li>1810 HK: Qualcomm exhibited a number of client-side LLM products at MWC Barcelona, covering mobile phones, PCs and communications（+）</li>
</ul>


LI/XPEV/NIO: Li, Xpeng and GAC AION announced new price actions（+/+/-）
ZLAB: Zai Lab’s revenue growth in 4Q23 is weak, and loss narrowing is limited （-）
1810 HK: Qualcomm exhibited a number of client-side LLM products at MWC Barcelona, covering mobile phones, PCs and communications（+）


[Blue Lotus Daily]:1211 HK/XPEV/ 1810 HK/LI/NIO/ZLAB/BGNE/MNSO

<ul>
<li>LI/XPEV/NIO/1211 HK:  Sales of strong EV brands held up better during CNY, Li and Tesla led and AITO and BYD followed (+)</li>
<li>BEKE : ByteDance suspend self-operating home decoration business( + ) </li>
<li>ZLAB:Bristol-Myers Squibb （BMS） outsources Opdivo sales in ten southwestern provinces to Zai Lab, a long-term positive but with many prerequisites (+)</li>
</ul>


LI/XPEV/NIO/1211 HK:  Sales of strong EV brands held up better during CNY, Li and Tesla led and AITO and BYD followed (+)
BEKE : ByteDance suspend self-operating home decoration business( + ) 
ZLAB:Bristol-Myers Squibb （BMS） outsources Opdivo sales in ten southwestern provinces to Zai Lab, a long-term positive but with many prerequisites (+)


[Blue Lotus Daily]:LI/XPEV/NIO/1211 HK/BEKE/ZLAB

<ul>
<li>ATAT/TCOM: Tourism: Local government will issue RMB600mn travel consumption subsidies during CNY(+)</li>
<li>9995 HK/BGNE/9926 HK/1801 HK/1877 HK:The National Medical Insurance Administration issued new regulations on the initial price of newly launched drugs to protect the independent pricing of innovative drugs.(/)</li>
<li>300750 SZ：Porsche's new Taycan doubles cruising range, uses CATL Shenxing battery(+)</li>
</ul>


ATAT/TCOM: Tourism: Local government will issue RMB600mn travel consumption subsidies during CNY(+)
9995 HK/BGNE/9926 HK/1801 HK/1877 HK:The National Medical Insurance Administration issued new regulations on the initial price of newly launched drugs to protect the independent pricing of innovative drugs.(/)
300750 SZ：Porsche's new Taycan doubles cruising range, uses CATL Shenxing battery(+)


[Blue Lotus Daily]: LKNCY/ZLAB/9995 HK/BGNE/9926 HK/1801 HK/1877 HK/ATAT/TCOM/1211 HK/LI/NIO/XPEV

China

Zai Lab Limited operates as a bio-pharmaceutical company. The Company researches and develops therapeutic technology for antibody-based oncology, autoimmune, and infectious diseases treatments. Zai Lab also manufactures drugs in the form of capsules, injections, and liquids. Zai Lab serves patients worldwide.

Price Gauge
52-week Range	0.00 - 0.00
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Zai Lab Ltd (ZLAB US)

[Blue Lotus Healthcare Sector Update]: Bottom-Fishing at the Bottom of the Business Cycle

Liquidity crises in healthcare innovation present buying opportunity;PD-1 exceeds expectations with 20%YoY growth forecast for 2024;Biosimilars...

Blue Lotus Research Institute

[Blue Lotus Daily]9926HK/1801HK/1877HK/BGNE/ZLAB/9995HK/1211HK/XPEV/1810HK/Chery Automobile/LI/NIO

US lobbying group distances from Wuxi AppTec, GAC AION orders surge after price cuts, Chery Automobile in talks with Italian government to build...

Blue Lotus Research Institute

[Blue Lotus Daily]:1211 HK/XPEV/ 1810 HK/LI/NIO/ZLAB/BGNE/MNSO

Li, Xpeng, and GAC AION adjust prices; Zai Lab's revenue growth weakens; Qualcomm showcases new products at MWC Barcelona.

Blue Lotus Research Institute

[Blue Lotus Daily]:LI/XPEV/NIO/1211 HK/BEKE/ZLAB

Strong EV brands like Li and Tesla saw better sales during CNY; ByteDance suspends home decoration business; BMS outsources Opdivo sales to Zai...

Blue Lotus Research Institute

[Blue Lotus Daily]: LKNCY/ZLAB/9995 HK/BGNE/9926 HK/1801 HK/1877 HK/ATAT/TCOM/1211 HK/LI/NIO/XPEV

Local government plans to provide RMB600mn in travel subsidies; new regulations protect pricing of innovative drugs; Porsche's Taycan now has...

Blue Lotus Research Institute

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

[Blue Lotus Healthcare Sector Update]: Bottom-Fishing at the Bottom of the Business Cycle

​Liquidity crises in healthcare innovation present buying opportunity;PD-1 exceeds expectations with 20%YoY growth forecast for 2024;Biosimilars...

Blue Lotus Research Institute

[Blue Lotus Daily]9926HK/1801HK/1877HK/BGNE/ZLAB/9995HK/1211HK/XPEV/1810HK/Chery Automobile/LI/NIO

​US lobbying group distances from Wuxi AppTec, GAC AION orders surge after price cuts, Chery Automobile in talks with Italian government to build...

Blue Lotus Research Institute

[Blue Lotus Daily]:1211 HK/XPEV/ 1810 HK/LI/NIO/ZLAB/BGNE/MNSO

​Li, Xpeng, and GAC AION adjust prices; Zai Lab's revenue growth weakens; Qualcomm showcases new products at MWC Barcelona.

Blue Lotus Research Institute

[Blue Lotus Daily]:LI/XPEV/NIO/1211 HK/BEKE/ZLAB

​Strong EV brands like Li and Tesla saw better sales during CNY; ByteDance suspends home decoration business; BMS outsources Opdivo sales to Zai...

Blue Lotus Research Institute

[Blue Lotus Daily]: LKNCY/ZLAB/9995 HK/BGNE/9926 HK/1801 HK/1877 HK/ATAT/TCOM/1211 HK/LI/NIO/XPEV

​Local government plans to provide RMB600mn in travel subsidies; new regulations protect pricing of innovative drugs; Porsche's Taycan now has...

Blue Lotus Research Institute

Liquidity crises in healthcare innovation present buying opportunity;PD-1 exceeds expectations with 20%YoY growth forecast for 2024;Biosimilars...

US lobbying group distances from Wuxi AppTec, GAC AION orders surge after price cuts, Chery Automobile in talks with Italian government to build...

Li, Xpeng, and GAC AION adjust prices; Zai Lab's revenue growth weakens; Qualcomm showcases new products at MWC Barcelona.

Strong EV brands like Li and Tesla saw better sales during CNY; ByteDance suspends home decoration business; BMS outsources Opdivo sales to Zai...

Local government plans to provide RMB600mn in travel subsidies; new regulations protect pricing of innovative drugs; Porsche's Taycan now has...