Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet 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

Thematic (Sector/Industry)

<ul>
<li>JD US/3690 HK/BABA US:JD.com’s 7FRESH Supermarket lowers prices to gain traffic, challenging Meituan and Freshippo (+/+/+)</li>
<li>1024 HK:Kuaishou's Overseas Short-video Platform Kwai Officially Launches E-commerce in Brazil (+)</li>
<li>1024 HK:Kuaishou Game &lt;Endless Dream&gt; Surpasses 10 Million Pre-Registered Players, Announces Collaboration with &lt;Soul Knight&gt; (+)</li>
</ul>


JD US/3690 HK/BABA US:JD.com’s 7FRESH Supermarket lowers prices to gain traffic, challenging Meituan and Freshippo (+/+/+)
1024 HK:Kuaishou's Overseas Short-video Platform Kwai Officially Launches E-commerce in Brazil (+)
1024 HK:Kuaishou Game &lt;Endless Dream&gt; Surpasses 10 Million Pre-Registered Players, Announces Collaboration with &lt;Soul Knight&gt; (+)


[Blue Lotus Daily-TMT Update]:JD/3690HK/BABA/1024HK/700HK/BIDU/3092JP/4385JP/PDD/1810HK/NTES /MSFT

Expert on Japan Retail and Consumer Markets, JapanConsuming

Michael Causton

Expert on Japan Retail and Consumer Markets

Real Insight on Japanese Consumer Markets

JapanConsuming

JapanConsuming is a specialist research firm producing intelligence on Japanese retail and consumer markets. Founded in 2000, JapanConsuming has become the leading provider of insights on Japanese retailers and consumer trends to retailers, brands, government agencies and investors. As well as a highly regarded monthly report on the market, JapanConsuming produces in-depth reports on retail sectors, seminars on key trends and telephone consulting to investors on trends and retailers.

JapanConsuming was founded by Michael Causton and Roy Larke. 

Event-Driven

<ul>
<li>Zozo-Owned Yutori has just acquired a womenswear brand and plans a series of acquisitions, with ambitions to become the Zozo of the younger generation.</li>
<li>So far, it has grown very fast on the back of strong support from Japan's youth looking for street fashion but this latest move will reach into new segments.</li>
<li>Unlike Zozo, Yutori is investing in a chain of stores which have helped push awareness and sales and is the right strategy for Japan's store-addicted consumers.</li>
</ul>


Zozo-Owned Yutori has just acquired a womenswear brand and plans a series of acquisitions, with ambitions to become the Zozo of the younger generation.
So far, it has grown very fast on the back of strong support from Japan's youth looking for street fashion but this latest move will reach into new segments.
Unlike Zozo, Yutori is investing in a chain of stores which have helped push awareness and sales and is the right strategy for Japan's store-addicted consumers.


Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>The last two reviews have been announced on the second business day of the month of the review. The one before that on the third business day.</li>
<li>The review could be announced today or tomorrow. Wednesday would seem to be "late."</li>
<li>There are still questions about implementation - thus "care" in previous insights. Here I explore the possibilities/probabilities/issues around the edges. And a Dark Horse which may be lighter than thought.</li>
</ul>


The last two reviews have been announced on the second business day of the month of the review. The one before that on the third business day.
The review could be announced today or tomorrow. Wednesday would seem to be "late."
There are still questions about implementation - thus "care" in previous insights. Here I explore the possibilities/probabilities/issues around the edges. And a Dark Horse which may be lighter than thought.


Sep24 Nikkei 225 Rebal - Last Minute Thoughts and Change in Predictions

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

<ul>
<li>The review period for the <a href="https://www.smartkarma.com/entities/nikkei-225" target="_blank" data-smartkarma-citation="entities:22909:1" rel="noopener">Nikkei 225 (NKY INDEX)</a> September rebalance ended yesterday. There could be three changes at the rebalance with sector balance in focus for the additions.</li>
<li>
<a href="https://www.smartkarma.com/entities/fast-retailing-co-ltd" target="_blank" data-smartkarma-citation="entities:751:1" rel="noopener">Fast Retailing (9983 JP)</a>'s capping in the index has been confirmed and its index weight will drop by around 0.9% resulting in big selling at the close on 30 September. </li>
<li>Passive trackers will need to buy between 3.5-35x ADV (2.4%-24% of real float) on the inclusions and sell between 3.7-42.5x ADV on the deletions.</li>
</ul>


The review period for the Nikkei 225 (NKY INDEX) September rebalance ended yesterday. There could be three changes at the rebalance with sector balance in focus for the additions.

Fast Retailing (9983 JP)'s capping in the index has been confirmed and its index weight will drop by around 0.9% resulting in big selling at the close on 30 September. 
Passive trackers will need to buy between 3.5-35x ADV (2.4%-24% of real float) on the inclusions and sell between 3.7-42.5x ADV on the deletions.


Nikkei 225 Index Rebalance Preview (Sep 2024): Review Period Done; Fast Retailing Capping Confirmed

Equity Bottom-Up

<ul>
<li>Telecom companies are traditionally "easy" to value. They have assets, debt, depreciation, earnings, cashflow. Lots of people like to use EV/EBITDA to measure.</li>
<li>In comparing Japan's telcos, I believe when <a href="https://www.smartkarma.com/entities/softbank-corp" target="_blank" data-smartkarma-citation="entities:27445:1" rel="noopener">Softbank Corp (9434 JP)</a> is in the mix, one has to use forward PERs. EV/EBITDA is too fraught with complications.</li>
<li>Softbank is currently at its most expensive multiple since listing on a Price to Forward Earnings basis, and relative to its major Peers. And KDDI has a big buyback now.</li>
</ul>


Telecom companies are traditionally "easy" to value. They have assets, debt, depreciation, earnings, cashflow. Lots of people like to use EV/EBITDA to measure.
In comparing Japan's telcos, I believe when Softbank Corp (9434 JP) is in the mix, one has to use forward PERs. EV/EBITDA is too fraught with complications.
Softbank is currently at its most expensive multiple since listing on a Price to Forward Earnings basis, and relative to its major Peers. And KDDI has a big buyback now.


Softbank Corp (9434) - Accounting for the Accounting Is Complicated Redux - So Be Bearish

Japan

ZOZO Inc operates internet shopping sites for apparel.  The Company also provides communication services relating to apparel such as blogs by fashion moguls and internet chat room for users.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

ZOZO Inc (3092 JP)

[Blue Lotus Daily-TMT Update]:JD/3690HK/BABA/1024HK/700HK/BIDU/3092JP/4385JP/PDD/1810HK/NTES /MSFT

JD.com's 7FRESH Supermarket lowers prices to compete with Meituan and Freshippo, Kuaishou launches e-commerce in Brazil and announces...

Blue Lotus Research Institute

Yutori Expands Through M&A Too

Yutori, owned by Zozo, aims to become the Zozo of the younger generation by acquiring a womenswear brand and planning further M&A to reach new...

Michael Causton

Sep24 Nikkei 225 Rebal - Last Minute Thoughts and Change in Predictions

The September Nikkei 225 rebalance is likely to be announced either today, tomorrow, or Thursday. I have adjusted my picks to go for 3 x 3. If I...

Travis Lundy

Nikkei 225 Index Rebalance Preview (Sep 2024): Review Period Done; Fast Retailing Capping Confirmed

Review period ended yesterday. Fast Retailing's capping will result in a 0.9% drop in index weight. There could be 3 index changes with sector...

Brian Freitas

Softbank Corp (9434) - Accounting for the Accounting Is Complicated Redux - So Be Bearish

Accounting for all the adjustments needed in EV (and EBITDA) in constructing a fair value for Softbank Corp means one should use forward PER. In...

Travis Lundy

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

[Blue Lotus Daily-TMT Update]:JD/3690HK/BABA/1024HK/700HK/BIDU/3092JP/4385JP/PDD/1810HK/NTES /MSFT

​JD.com's 7FRESH Supermarket lowers prices to compete with Meituan and Freshippo, Kuaishou launches e-commerce in Brazil and announces...

Blue Lotus Research Institute

Yutori Expands Through M&A Too

​Yutori, owned by Zozo, aims to become the Zozo of the younger generation by acquiring a womenswear brand and planning further M&A to reach new...

Michael Causton

Sep24 Nikkei 225 Rebal - Last Minute Thoughts and Change in Predictions

The September Nikkei 225 rebalance is likely to be announced either today, tomorrow, or Thursday. I have adjusted my picks to go for 3 x 3. If I...

Travis Lundy

Nikkei 225 Index Rebalance Preview (Sep 2024): Review Period Done; Fast Retailing Capping Confirmed

Review period ended yesterday. Fast Retailing's capping will result in a 0.9% drop in index weight. There could be 3 index changes with sector...

Brian Freitas

Softbank Corp (9434) - Accounting for the Accounting Is Complicated Redux - So Be Bearish

Accounting for all the adjustments needed in EV (and EBITDA) in constructing a fair value for Softbank Corp means one should use forward PER. In...

Travis Lundy

JD.com's 7FRESH Supermarket lowers prices to compete with Meituan and Freshippo, Kuaishou launches e-commerce in Brazil and announces...

Yutori, owned by Zozo, aims to become the Zozo of the younger generation by acquiring a womenswear brand and planning further M&A to reach new...