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

[S.F. Holding (2352 SZ) Earning Review]: Facing Threat from Pricing and Peers’ Service Upgrade

JD Logistics(2618.HK) 4Q22 Preview: Topline Reacceleration Supported by Retail Recovery

ZTO Express(ZTO.US) 4Q22 Preview: Maintain Leadership and Benefit from Industry Rebound

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

China/Asia TMT

Shawn Yang

Thematic (Sector/Industry)

China Transportation / Thematic (Sector/Industry)

<ul>
<li>The pricing trend is expected to experience higher sequential decline 1) parcel pricing is at a high point; 2) alleviated cost pressure; 3) delivery companies try to capture parcel volume. </li>
<li>The collaboration with PDD’s Temu could provide J&amp;T a source of international order volume. For its potential IPO, J&amp;T’s overseas operation gives more room of imagination than its domestic business.</li>
<li>We downgrade SFH to SELL with TP of RMB48 due to Fengwang’s unpromising outlook .Our top pick of the Logistics sector remains ZTO. We are a buyer to JD logistics.</li>
</ul>


The pricing trend is expected to experience higher sequential decline 1) parcel pricing is at a high point; 2) alleviated cost pressure; 3) delivery companies try to capture parcel volume. 
The collaboration with PDD’s Temu could provide J&amp;T a source of international order volume. For its potential IPO, J&amp;T’s overseas operation gives more room of imagination than its domestic business.
We downgrade SFH to SELL with TP of RMB48 due to Fengwang’s unpromising outlook .Our top pick of the Logistics sector remains ZTO. We are a buyer to JD logistics.


China Logistics Sector Update & Downgrade S.F. Holding (2352.CH) To SELL: Pricing Pressure in 1H