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

Thematic (Sector/Industry)

<ul>
<li>NIO US/XPEV US/1810 HK/LI US: Electric vehicle sales were strong during the two weeks of the National Day holiday, with NIO, Leap, Zeekr, Xiaomi and Tesla performing better(///////)</li>
<li>Consumer sector: Steady Growth in Catering and Retail Consumption During the National Day Holiday(+)</li>
<li>Consumer sector: WeChat reports 20% YoY increase in transaction volume during National Day Holiday (+)</li>
</ul>


NIO US/XPEV US/1810 HK/LI US: Electric vehicle sales were strong during the two weeks of the National Day holiday, with NIO, Leap, Zeekr, Xiaomi and Tesla performing better(///////)
Consumer sector: Steady Growth in Catering and Retail Consumption During the National Day Holiday(+)
Consumer sector: WeChat reports 20% YoY increase in transaction volume during National Day Holiday (+)


[Blue Lotus Daily]:NIO US/XPEV US/1810 HK/LI US/000333 CH/600690 CH/000651 CH/1585 HK/NIUUS/603529CH

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/yadea-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:22706:1" rel="noopener">Yadea (1585 HK)</a> has introduced new capabilities, including sodium batteries and battery swapping, that will yield revenue growth. </li>
<li>Investments in the overseas manufacturing facilities will produce higher margins and avoid a price war in China. </li>
<li>After a big jump in the sales and earnings in FY 2025 while <a href="https://www.smartkarma.com/entities/aima-technology-group-co-ltd" target="_blank" data-smartkarma-citation="entities:40125:1" rel="noopener">AIMA Technology Group (603529 CH)</a> result is worse, the share price has not really moved. <strong>A buying opportunity. </strong>
</li>
</ul>



Yadea (1585 HK) has introduced new capabilities, including sodium batteries and battery swapping, that will yield revenue growth. 
Investments in the overseas manufacturing facilities will produce higher margins and avoid a price war in China. 
After a big jump in the sales and earnings in FY 2025 while AIMA Technology Group (603529 CH) result is worse, the share price has not really moved. A buying opportunity. 



Yadea (1585): FY 25 Strong Result Not Priced In

Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

<ul>
<li>The September 2024 index review results for the STAR 50 and STAR 100 indices were announced after market close on Friday 30th August 2024.</li>
<li>There will be 2 changes for the STAR 50 index and 6 changes for the STAR 100 index.</li>
<li>The STAR 50 and STAR 100 rebalances will collectively trigger one-way flows of more than US$1bn during the September 2024 index rebal event.</li>
</ul>


The September 2024 index review results for the STAR 50 and STAR 100 indices were announced after market close on Friday 30th August 2024.
There will be 2 changes for the STAR 50 index and 6 changes for the STAR 100 index.
The STAR 50 and STAR 100 rebalances will collectively trigger one-way flows of more than US$1bn during the September 2024 index rebal event.


Quiddity STAR 50/100 Sep 24 Rebalance: 100% Hit Rate; US$1bn+ One-Way Flows

<ul>
<li>The 1H result was poor due to the inventory clearance from the new product standards, which rendered older products less desirable. </li>
<li>Management has proven to be able to manage costs carefully during a down cycle. </li>
<li>
<a href="https://www.smartkarma.com/entities/yadea-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:22706:1" rel="noopener">Yadea Group Holdings (1585 HK)</a> used to trade around 35x PER; now it is only 10x PER. </li>
</ul>


The 1H result was poor due to the inventory clearance from the new product standards, which rendered older products less desirable. 
Management has proven to be able to manage costs carefully during a down cycle. 

Yadea Group Holdings (1585 HK) used to trade around 35x PER; now it is only 10x PER. 


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

Event-Driven

<ul>
<li>The China equity markets have continued to trade lower with the <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-inde" target="_blank" data-smartkarma-citation="entities:22906:1" rel="noopener">CSI 300 Index</a> outperforming other mainland indices as the National Team continues to pump money into ETFs tracking the index.</li>
<li>We currently estimate selling of around US$1.39bn across 74 stocks listed on the mainland and in Hong Kong. There could be fewer deletions depending on the review date chosen.</li>
<li>The potential deletes have dropped a lot since the start of the calendar year with big underperformance versus the <a href="https://www.smartkarma.com/entities/hang-seng-china-enterprises-index" target="_blank" data-smartkarma-citation="entities:22900:1" rel="noopener">HSCEI Index</a>, <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-inde" target="_blank" data-smartkarma-citation="entities:22906:1" rel="noopener">CSI 300 Index</a> and <a href="https://www.smartkarma.com/entities/csi-smallcap-500-index-shang" target="_blank" data-smartkarma-citation="entities:35347:1" rel="noopener">CSI Smallcap 500 Index</a>.</li>
</ul>


The China equity markets have continued to trade lower with the CSI 300 Index outperforming other mainland indices as the National Team continues to pump money into ETFs tracking the index.
We currently estimate selling of around US$1.39bn across 74 stocks listed on the mainland and in Hong Kong. There could be fewer deletions depending on the review date chosen.
The potential deletes have dropped a lot since the start of the calendar year with big underperformance versus the HSCEI Index, CSI 300 Index and CSI Smallcap 500 Index.


China: Passive Selling Expected Later This Month

China

AIMA Technology Group Co., Ltd manufactures vehicles. The Company produces electric tricycles, electric four wheelers, sightseeing cars, recreational vehicles, and other equipment. AIMA Technology Group markets its products throughout China.

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

AIMA Technology Group (603529 CH)

[Blue Lotus Daily]:NIO US/XPEV US/1810 HK/LI US/000333 CH/600690 CH/000651 CH/1585 HK/NIUUS/603529CH

Electric vehicle sales, catering, and retail consumption saw strong growth during the National Day holiday, with companies like NIO, Leap, Zeekr,...

Blue Lotus Research Institute

Yadea (1585): FY 25 Strong Result Not Priced In

Yadea Group Holdings introduces new capabilities for revenue growth, overseas investments to avoid price wars, and a buying opportunity with...

Henry Soediarko

Quiddity STAR 50/100 Sep 24 Rebalance: 100% Hit Rate; US$1bn+ One-Way Flows

In the last month, STAR 50 ADDs have gained 8.0% and STAR 50 DELs have declined 9.5% on average. The Inclusion/Exclusion events will be on Friday...

Janaghan Jeyakumar, CFA

Yadea (1585): Ready for New Standard

New standard is set to drive sales positively for 2H, it also trades at 66% discount PER to 3 years ago. In the meantime, the management can manage...

Henry Soediarko

China: Passive Selling Expected Later This Month

We currently estimate passive selling of around US$1.39bn across 74 stocks listed in China and HK. The potential deletes have underperformed...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

[Blue Lotus Daily]:NIO US/XPEV US/1810 HK/LI US/000333 CH/600690 CH/000651 CH/1585 HK/NIUUS/603529CH

​Electric vehicle sales, catering, and retail consumption saw strong growth during the National Day holiday, with companies like NIO, Leap, Zeekr,...

Blue Lotus Research Institute

Yadea (1585): FY 25 Strong Result Not Priced In

​Yadea Group Holdings introduces new capabilities for revenue growth, overseas investments to avoid price wars, and a buying opportunity with...

Henry Soediarko

Quiddity STAR 50/100 Sep 24 Rebalance: 100% Hit Rate; US$1bn+ One-Way Flows

In the last month, STAR 50 ADDs have gained 8.0% and STAR 50 DELs have declined 9.5% on average. The Inclusion/Exclusion events will be on Friday...

Janaghan Jeyakumar, CFA

Yadea (1585): Ready for New Standard

New standard is set to drive sales positively for 2H, it also trades at 66% discount PER to 3 years ago. In the meantime, the management can manage...

Henry Soediarko

China: Passive Selling Expected Later This Month

We currently estimate passive selling of around US$1.39bn across 74 stocks listed in China and HK. The potential deletes have underperformed...

Brian Freitas

Electric vehicle sales, catering, and retail consumption saw strong growth during the National Day holiday, with companies like NIO, Leap, Zeekr,...

Yadea Group Holdings introduces new capabilities for revenue growth, overseas investments to avoid price wars, and a buying opportunity with...