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

MD, Blue Lotus Research Institute

Gu Jun, CFA

Equity Bottom-Up

● We are adjusting BSTI’s TP due to multiple demand, value chain and seasonal headwinds. Yet we are still positive on BSTI’s turnaround in profitability;● We cut TP from US$19.2 to US$15.5. Potential risks include revenue slowdown caused by recognition conformation.Big snow and revenue recognition conformation impact C1Q18In the beginning of the year big snow in most of southern China caused disruption to the express delivery industry. We are marking down industry parcel growth from 27% to 23%…

● We are adjusting BSTI’s TP due to multiple demand, value chain and seasonal headwinds. Yet we are still positive on BSTI’s turnaround in profitability;● We cut TP from US$19.2 to US$15.5. Potential risks include revenue slowdown caused by recognition conformation.Big snow and revenue recognition conformation impact C1Q18In the beginning of the year big snow in most of southern China caused disruption to the express delivery industry. We are marking down industry parcel growth from 27% to 23%…

BEST EXPRESS (NYSE:BSTI) Multiple Headwinds Knock Down Target Price