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>After JD.com announced it would insure catering riders with social security, Meituan followed suit. Then JD clarified its intension was only to insure a newly established rider force from scratch; </li>
<li>Trump announced American First Investment Policy. Frankly we don't see anything new. It will affect sentiment, maybe;</li>
<li>SASAC calls for SOE's to adopt AI. This is a real positive to Alibaba.</li>
</ul>


After JD.com announced it would insure catering riders with social security, Meituan followed suit. Then JD clarified its intension was only to insure a newly established rider force from scratch; 
Trump announced American First Investment Policy. Frankly we don't see anything new. It will affect sentiment, maybe;
SASAC calls for SOE's to adopt AI. This is a real positive to Alibaba.


[Blue Lotus Non-US Internet Weekly, 8/52]: Is JD's Entry to Catering Real or Just Posturing?

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Bottom-Up

<ul>
<li>China announced game approval for the February batch. The number of games approved remained at a higher level than 2023.</li>
<li>The pace of China game approval appears to have accelerated to the same level as pre-tightening.</li>
<li>Of the companies that we are monitoring, Netease, Zengame got one approval each.</li>
</ul>


China announced game approval for the February batch. The number of games approved remained at a higher level than 2023.
The pace of China game approval appears to have accelerated to the same level as pre-tightening.
Of the companies that we are monitoring, Netease, Zengame got one approval each.


Tencent/Netease: One Game Approval for Netease in Feb

Chief Executive Officer, Emmer Capital Partners Limited

Manishi Raychaudhuri

Chief Executive Officer

Emmer Capital Partners Limited

Emmer Capital Partners is an Asia Pacific focused financial advisory firm engaging in strategic financial asset allocation advice, bespoke thematic research and advising early-stage companies and connecting them to investors. Emmer Capital provides macro-economic and multi-asset investment strategy inputs to institutions, family offices, private wealth managers, private equity, and corporate boards directly and through independent research platforms. Emmer Capital also advises a wide range of startup companies on fund raising and business strategy. Emmer Capital's active engagement with the print and electronic media reaches a broad spectrum of investors across the globe.

<ul>
<li>We believe in 2025 HK/China shall outperform EM. While the undervalued and under-owned characteristic of the China market is well-known, monetizability of China’s technological capabilities has become apparent only recently.</li>
<li>Policy stimuli during the upcoming NPC could catalyze consumer sentiment and market performance. China’s structural hurdles, Debt, Demographics and Deflation, remain. But correct stock and sector selection can generate alpha.</li>
<li>We prefer the internet platforms, consumer discretionary and high dividend yield, the latter largely SOEs. Our “China Twelve” are mostly reasonably valued (low teen PE), with double digit EPS growth.</li>
</ul>


We believe in 2025 HK/China shall outperform EM. While the undervalued and under-owned characteristic of the China market is well-known, monetizability of China’s technological capabilities has become apparent only recently.
Policy stimuli during the upcoming NPC could catalyze consumer sentiment and market performance. China’s structural hurdles, Debt, Demographics and Deflation, remain. But correct stock and sector selection can generate alpha.
We prefer the internet platforms, consumer discretionary and high dividend yield, the latter largely SOEs. Our “China Twelve” are mostly reasonably valued (low teen PE), with double digit EPS growth.


Asian Equities: It's China's Year - Our "China Twelve" In the Year of the Snake

<ul>
<li>Tencent and NetEase games showed strong during CNY, echoing strong box office showing. Express delivery data suggested robust e-commerce performance;</li>
<li>However, as a big ticket item with no subsidies support, housing market petered out quickly after CNY, which suggests recovery is still fragile;</li>
<li>Meituan's milk tea order volume jumped after introducing social gift functions. Meituan and JD.com are two beneficiaries of social gifting from the GMV angle with Tencent from the advertising angle.</li>
</ul>


Tencent and NetEase games showed strong during CNY, echoing strong box office showing. Express delivery data suggested robust e-commerce performance;
However, as a big ticket item with no subsidies support, housing market petered out quickly after CNY, which suggests recovery is still fragile;
Meituan's milk tea order volume jumped after introducing social gift functions. Meituan and JD.com are two beneficiaries of social gifting from the GMV angle with Tencent from the advertising angle.


[Blue Lotus Non-US Internet Weekly, 6/52]: Consumption Warmed Up During CNY Except Housing

<ul>
<li>New smartphone trade-in subsidy received raving response from Chinese consumers;</li>
<li>Tencent and NetEase gained key game title approvals. Entertainment is a good choice in uncertain environment of 2025;</li>
<li>From a slight moderating C4Q24, we expect strong showing in domestic travel demand heading into CNY.</li>
</ul>


New smartphone trade-in subsidy received raving response from Chinese consumers;
Tencent and NetEase gained key game title approvals. Entertainment is a good choice in uncertain environment of 2025;
From a slight moderating C4Q24, we expect strong showing in domestic travel demand heading into CNY.


[Blue Lotus Non-US Internet Weekly, 4/52]: Deepseek's Asked the Right Question on GAI Capex

China

NetEase, Inc. is an Internet technology company that develops applications, services and other Internet technologies in China. The Company's core businesses consist of email service, web portal and online entertainment, including online gaming services. NetEase also offers online advertising, search, mobile applications and e-commerce.

Price Gauge
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NetEase Inc (NTES US)

[Blue Lotus Non-US Internet Weekly, 8/52]: Is JD's Entry to Catering Real or Just Posturing?

JD and Meituan insure catering riders with social security, Trump's American First Investment Policy may affect sentiment, SASAC calls for SOEs to...

Blue Lotus Research Institute

Tencent/Netease: One Game Approval for Netease in Feb

We analyzed the game approval issued by NPPA for Chinese online game players for the month of February. Game approvals for large players are slow...

Ke Yan, CFA, FRM

Asian Equities: It's China's Year - Our "China Twelve" In the Year of the Snake

In 25 HK/China should outperform. Monetization of China's tech capability, policy stimulus during NPC are catalysts. Structural issues- Debt,...

Manishi Raychaudhuri

[Blue Lotus Non-US Internet Weekly, 6/52]: Consumption Warmed Up During CNY Except Housing

Tencent and NetEase games shine during CNY, housing market falters post-holiday, Meituan sees boost in milk tea orders with social gifting feature.

Blue Lotus Research Institute

[Blue Lotus Non-US Internet Weekly, 4/52]: Deepseek's Asked the Right Question on GAI Capex

Chinese consumers are excited about new smartphone trade-in subsidy, Tencent and NetEase secure game title approvals, and strong domestic travel...

Blue Lotus Research Institute

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

[Blue Lotus Non-US Internet Weekly, 8/52]: Is JD's Entry to Catering Real or Just Posturing?

​JD and Meituan insure catering riders with social security, Trump's American First Investment Policy may affect sentiment, SASAC calls for SOEs to...

Blue Lotus Research Institute

Tencent/Netease: One Game Approval for Netease in Feb

We analyzed the game approval issued by NPPA for Chinese online game players for the month of February. Game approvals for large players are slow...

Ke Yan, CFA, FRM

Asian Equities: It's China's Year - Our "China Twelve" In the Year of the Snake

​In 25 HK/China should outperform. Monetization of China's tech capability, policy stimulus during NPC are catalysts. Structural issues- Debt,...

Manishi Raychaudhuri

[Blue Lotus Non-US Internet Weekly, 6/52]: Consumption Warmed Up During CNY Except Housing

​Tencent and NetEase games shine during CNY, housing market falters post-holiday, Meituan sees boost in milk tea orders with social gifting feature.

Blue Lotus Research Institute

[Blue Lotus Non-US Internet Weekly, 4/52]: Deepseek's Asked the Right Question on GAI Capex

​Chinese consumers are excited about new smartphone trade-in subsidy, Tencent and NetEase secure game title approvals, and strong domestic travel...

Blue Lotus Research Institute

JD and Meituan insure catering riders with social security, Trump's American First Investment Policy may affect sentiment, SASAC calls for SOEs to...

In 25 HK/China should outperform. Monetization of China's tech capability, policy stimulus during NPC are catalysts. Structural issues- Debt,...

Tencent and NetEase games shine during CNY, housing market falters post-holiday, Meituan sees boost in milk tea orders with social gifting feature.

Chinese consumers are excited about new smartphone trade-in subsidy, Tencent and NetEase secure game title approvals, and strong domestic travel...