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>Xiaomi reported CY3Q24 revenue, non-IFRS EBIT and non-IFRS net income 4.7%, 7.8%, and 16.6% vs. consensus. </li>
<li>C4Q should be even stronger, as (1) appliance subsidy drive IoT revenue and margin improvement, (2) SU7 production output ~doubles</li>
<li>We reiterate Xiaomi as our TOP BUY idea and raise Xiaomi’s TP to HK$ 33 to reflect the improved profit outlook. Our TP implies 26.6x CY25 P/E.</li>
</ul>


Xiaomi reported CY3Q24 revenue, non-IFRS EBIT and non-IFRS net income 4.7%, 7.8%, and 16.6% vs. consensus. 
C4Q should be even stronger, as (1) appliance subsidy drive IoT revenue and margin improvement, (2) SU7 production output ~doubles
We reiterate Xiaomi as our TOP BUY idea and raise Xiaomi’s TP to HK$ 33 to reflect the improved profit outlook. Our TP implies 26.6x CY25 P/E.


[Xiaomi Inc. (1810 HK, BUY, TP HK$33) Target Price Change]: Good Result, and It Will Only Get Better

Thematic (Sector/Industry)

<ul>
<li>1211 HK/TSLA US/1810 HK/NIO US/LI US/XPEV US/ZK US/9863 HK:In the 46th week of 2024, market demand is booming and new brands gain market share.(///////////////)</li>
<li>XPEV US: Xpeng's vehicle revenue and gross profit margin exceeded expectations in the third quarter, but service revenue was lower than expected, resulting in lower-than-expected profits.(/)</li>
<li>LKNCY US: Luckin Signs Memorandum for Brazilian Coffee Bean Purchases.(+)</li>
</ul>


1211 HK/TSLA US/1810 HK/NIO US/LI US/XPEV US/ZK US/9863 HK:In the 46th week of 2024, market demand is booming and new brands gain market share.(///////////////)
XPEV US: Xpeng's vehicle revenue and gross profit margin exceeded expectations in the third quarter, but service revenue was lower than expected, resulting in lower-than-expected profits.(/)
LKNCY US: Luckin Signs Memorandum for Brazilian Coffee Bean Purchases.(+)


[Blue Lotus Daily]:1211 HK/TSLA US/1810 HK/NIO US/LI US/XPEV US/ZK US/9863 HK/LKNCY US

Tracking developments across tech supply chains, Tech Supply Chain Tracker

Tech Supply Chain Tracker

Tracking developments across tech supply chains

<ul><li>China's smartphone industry experienced significant growth in Q3 2024 amid escalating trade tensions and tariffs</li><li>LG Electronics expands manufacturing operations in India with a new plant while liquid cooling for servers faces challenges</li><li>Royole Technologies, a Chinese foldable phone pioneer, files for bankruptcy, and Taiwan boosts defense autonomy in response to global tensions Huawei set to launch Mate 70 series on Nov 26.</li></ul>

China's smartphone industry experienced significant growth in Q3 2024 amid escalating trade tensions and tariffsLG Electronics expands manufacturing operations in India with a new plant while liquid cooling for servers faces challengesRoyole Technologies, a Chinese foldable phone pioneer, files for bankruptcy, and Taiwan boosts defense autonomy in response to global tensions Huawei set to launch Mate 70 series on Nov 26.

Tech Supply Chain Tracker (21-Nov-2024): China smartphone market, 3Q 2024.

Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

News from Caixin

Cross Asset Strategy

<ul>
<li>Airspace / China is making sure its low-altitude economy is ready for takeoff China is looking to the skies for future growth as it nurtures its nascent low-altitude economy with efforts to launch pilot programs for new aviation services.</li>
<li>The National Development and Reform Commission (NDRC), the country’s top economic planner, is to create a Low-Altitude Economy Department to oversee the sector as it takes off, according to Chen Zhijie, director of the State Key Laboratory of Air Traffic Management System and Technology.</li>
<li>At the same time, the central government is drawing up detailed industry guidelines to establish a regulatory framework for the sector, Chen said at a Monday forum.</li>
</ul>


Airspace / China is making sure its low-altitude economy is ready for takeoff China is looking to the skies for future growth as it nurtures its nascent low-altitude economy with efforts to launch pilot programs for new aviation services.
The National Development and Reform Commission (NDRC), the country’s top economic planner, is to create a Low-Altitude Economy Department to oversee the sector as it takes off, according to Chen Zhijie, director of the State Key Laboratory of Air Traffic Management System and Technology.
At the same time, the central government is drawing up detailed industry guidelines to establish a regulatory framework for the sector, Chen said at a Monday forum.


CX Daily: China Is Making Sure Its Low-Altitude Economy is Ready for Takeoff 

Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

High Yield Experts

Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

Credit

<ul>
<li>In today's Morning Views publication we comment on developments of the following high yield issuers: Health and Happiness (H&amp;H), Yinson Production, Xiaomi Corp, ReNew Energy</li>
<li>In the US, October housing starts declined 3.1% m-o-m to an annualised 1.31 mn units (-1.5% e / -1.9% revised p), the slowest pace in three months as builders put off projects in the wake of hurricanes Helene and Milton.</li>
<li>Meanwhile, October building permits (a proxy for future construction) eased 0.6% m-o-m to an annualised 1.42 mn units.</li>
</ul>


In today's Morning Views publication we comment on developments of the following high yield issuers: Health and Happiness (H&amp;H), Yinson Production, Xiaomi Corp, ReNew Energy
In the US, October housing starts declined 3.1% m-o-m to an annualised 1.31 mn units (-1.5% e / -1.9% revised p), the slowest pace in three months as builders put off projects in the wake of hurricanes Helene and Milton.
Meanwhile, October building permits (a proxy for future construction) eased 0.6% m-o-m to an annualised 1.42 mn units.


China

Xiaomi Corporation manufactures communication equipment and parts. The Company produces and sells mobile phones, smart phone software,  set-top boxes, and related accessories. Xiaomi markets its products worldwide.

Price Gauge
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Xiaomi (1810 HK)

[Xiaomi Inc. (1810 HK, BUY, TP HK$33) Target Price Change]: Good Result, and It Will Only Get Better

Xiaomi beats revenue expectations in CY3Q24, expected to strengthen in C4Q with IoT drive and production increase, leading to a raised price target.

Blue Lotus Research Institute

[Blue Lotus Daily]:1211 HK/TSLA US/1810 HK/NIO US/LI US/XPEV US/ZK US/9863 HK/LKNCY US

Market demand is booming in 46th week of 2024, new brands gaining share; XPEV's Q3 revenue exceeds expectations but service revenue disappoints;...

Blue Lotus Research Institute

Tech Supply Chain Tracker (21-Nov-2024): China smartphone market, 3Q 2024.

China smartphone industry grows, Trump hints at more tariffs, LG Electronics expands in India, liquid cooling faces challenges, Royole files for...

Tech Supply Chain Tracker

CX Daily: China Is Making Sure Its Low-Altitude Economy is Ready for Takeoff

Airspace / China is making sure its low-altitude economy is ready for takeoff China is looking to the skies for future growth as it nurtures its...

Caixin Global

Lucror Analytics - Morning Views Asia

In today's Morning Views publication we comment on developments of the following high yield issuers: Health and Happiness (H&H), Yinson Production,...

Lucror Analytics

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

[Xiaomi Inc. (1810 HK, BUY, TP HK$33) Target Price Change]: Good Result, and It Will Only Get Better

​Xiaomi beats revenue expectations in CY3Q24, expected to strengthen in C4Q with IoT drive and production increase, leading to a raised price target.

Blue Lotus Research Institute

[Blue Lotus Daily]:1211 HK/TSLA US/1810 HK/NIO US/LI US/XPEV US/ZK US/9863 HK/LKNCY US

​Market demand is booming in 46th week of 2024, new brands gaining share; XPEV's Q3 revenue exceeds expectations but service revenue disappoints;...

Blue Lotus Research Institute

Tech Supply Chain Tracker (21-Nov-2024): China smartphone market, 3Q 2024.

China smartphone industry grows, Trump hints at more tariffs, LG Electronics expands in India, liquid cooling faces challenges, Royole files for...

Tech Supply Chain Tracker

CX Daily: China Is Making Sure Its Low-Altitude Economy is Ready for Takeoff

Airspace / China is making sure its low-altitude economy is ready for takeoff China is looking to the skies for future growth as it nurtures its...

Caixin Global

Lucror Analytics - Morning Views Asia

In today's Morning Views publication we comment on developments of the following high yield issuers: Health and Happiness (H&H), Yinson Production,...

Lucror Analytics

Xiaomi beats revenue expectations in CY3Q24, expected to strengthen in C4Q with IoT drive and production increase, leading to a raised price target.

Market demand is booming in 46th week of 2024, new brands gaining share; XPEV's Q3 revenue exceeds expectations but service revenue disappoints;...