Analyst - Media&Entertainment Sector, Blue Lotus Research Institute

Stan Zhao

Analyst - Media&Entertainment Sector

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>Earnings results have differed in the recently concluded C3Q24. Performance ads in home electronics, 3C, auto, entertainment and travel have benefited from recovery in consumption; </li>
<li>Heading into C4Q24, we expect rebound in real estate to benefit property ads, and the continuing warm up in consumption to spread to e-commerce (apparel and cosmetics);</li>
<li>We expect trade-in subsidies for home electronics and electrical vehicles to renew in C1Q25 and further stimulus to encourage consumption in travel and catering to be announced. </li>
</ul>


Earnings results have differed in the recently concluded C3Q24. Performance ads in home electronics, 3C, auto, entertainment and travel have benefited from recovery in consumption; 
Heading into C4Q24, we expect rebound in real estate to benefit property ads, and the continuing warm up in consumption to spread to e-commerce (apparel and cosmetics);
We expect trade-in subsidies for home electronics and electrical vehicles to renew in C1Q25 and further stimulus to encourage consumption in travel and catering to be announced. 


Stimulus Policies Are Now the Biggest Determinant of Internet Ads Performances

Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet research

<ul>
<li>BIDU US: Baidu Receives Hong Kong Autonomous Driving Taxi Pilot License (/)</li>
<li>SE US/MELI US/BABA US: Brazil e-commerce penetration rate rises 6.8ppts yoy during Black Friday (+/+/+)</li>
<li>SE US/BABA US: Shopee to raise commission rates in Philippines (+/+)</li>
</ul>


BIDU US: Baidu Receives Hong Kong Autonomous Driving Taxi Pilot License (/)
SE US/MELI US/BABA US: Brazil e-commerce penetration rate rises 6.8ppts yoy during Black Friday (+/+/+)
SE US/BABA US: Shopee to raise commission rates in Philippines (+/+)


[Blue Lotus Daily-TMT Update]:BIDU US/SE US/MELI US/BABA US/4689 JP/PDD US/JD US

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Baidu's third-quarter 2024 financial performance presents a complex picture, showcasing both opportunities and challenges that shape the company's investment thesis.</li><li>The company reported total revenues of RMB 33.6 billion, reflecting a 3% decline year-over-year.</li><li>However, Baidu Core's revenue remained stable at RMB 26.5 billion.</li></ul>

Baidu's third-quarter 2024 financial performance presents a complex picture, showcasing both opportunities and challenges that shape the company's investment thesis.The company reported total revenues of RMB 33.6 billion, reflecting a 3% decline year-over-year.However, Baidu Core's revenue remained stable at RMB 26.5 billion.

Baidu Inc.: Generative AI & Search Transformation Driving Our Bullishness! - Major Drivers

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

<ul>
<li>Hong Kong market breadth stays strong despite market pullback in November.  Mainland investors continue to increase exposure to HK market through Southbound Connect platform.</li>
<li>
<a href="https://www.smartkarma.com/entities/baidu-inc-a55ca720-5968-48f0-8194-ac94390d065c" target="_blank" data-smartkarma-citation="entities:32212:1" rel="noopener">Baidu (9888 HK)</a> , <a href="https://www.smartkarma.com/entities/baidu-inc" target="_blank" data-smartkarma-citation="entities:179:1" rel="noopener">Baidu (BIDU US)</a> , the global leader in Robotaxis, was granted a license to start operating its autonomous cars in Hong Kong.
</li>
<li>
<a href="https://www.smartkarma.com/entities/vitasoy-intl-holdings-ltd" target="_blank" data-smartkarma-citation="entities:2807:1" rel="noopener">Vitasoy Intl Holdings (345 HK)</a> shares surged on takeover rumours after <a href="https://www.smartkarma.com/entities/yeo-hiap-seng-ltd" target="_blank" data-smartkarma-citation="entities:9051:1" rel="noopener">Yeo Hiap Seng (YHS SP)</a> increased its stake to more than 12% allowing them to call a Board meeting.
</li>
</ul>


Hong Kong market breadth stays strong despite market pullback in November.  Mainland investors continue to increase exposure to HK market through Southbound Connect platform.

Baidu (9888 HK) , Baidu (BIDU US) , the global leader in Robotaxis, was granted a license to start operating its autonomous cars in Hong Kong.


Vitasoy Intl Holdings (345 HK) shares surged on takeover rumours after Yeo Hiap Seng (YHS SP) increased its stake to more than 12% allowing them to call a Board meeting.



The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (December 2)

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

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 Capital Markets

Kioxia Holdings  / Equity Capital Markets

<ul>
<li>Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.</li>
<li>On the IPOs front, listing in the past week didn't do much, while a number of comapnies are still looking to beat the year end deadline.</li>
<li>On the placements front, there were a number of secondary selldowns in Japan.</li>
</ul>


Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
On the IPOs front, listing in the past week didn't do much, while a number of comapnies are still looking to beat the year end deadline.
On the placements front, there were a number of secondary selldowns in Japan.


ECM Weekly (2nd Dec 2024) - Kioxia, FineToday, MNC Solutions, JST, Pateo, Carraro, Hulic, Sanrio

China

Baidu, Inc. operates an Internet search engine. The Company offers algorithmic search, enterprise search, news, MP3, and image searches, voice assistance, online storage, and navigation services. Baidu serves clients globally.

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Baidu (BIDU US)

Stimulus Policies Are Now the Biggest Determinant of Internet Ads Performances

C3Q24 earnings show ad performances are highly correlated with stimulus spending. We expect continuing stimulus to sustain the benefit and...

Blue Lotus Research Institute

[Blue Lotus Daily-TMT Update]:BIDU US/SE US/MELI US/BABA US/4689 JP/PDD US/JD US

Baidu receives pilot license for autonomous driving taxis in Hong Kong while e-commerce penetration in Brazil rises during Black Friday and Shopee...

Blue Lotus Research Institute

Baidu Inc.: Generative AI & Search Transformation Driving Our Bullishness! - Major Drivers

Baidu's third-quarter 2024 financial performance presents a complex picture, showcasing both opportunities and challenges that shape the company's...

Baptista Research

The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (December 2)

Hong Kong market breadth is high as mainland investors continue buy HK shares. Baidu, the largest Robotaxi operator was granted license to operate...

David Mudd

ECM Weekly (2nd Dec 2024) - Kioxia, FineToday, MNC Solutions, JST, Pateo, Carraro, Hulic, Sanrio

Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

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Stimulus Policies Are Now the Biggest Determinant of Internet Ads Performances

​C3Q24 earnings show ad performances are highly correlated with stimulus spending. We expect continuing stimulus to sustain the benefit and...

Blue Lotus Research Institute

[Blue Lotus Daily-TMT Update]:BIDU US/SE US/MELI US/BABA US/4689 JP/PDD US/JD US

​Baidu receives pilot license for autonomous driving taxis in Hong Kong while e-commerce penetration in Brazil rises during Black Friday and Shopee...

Blue Lotus Research Institute

Baidu Inc.: Generative AI & Search Transformation Driving Our Bullishness! - Major Drivers

Baidu's third-quarter 2024 financial performance presents a complex picture, showcasing both opportunities and challenges that shape the company's...

Baptista Research

The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (December 2)

Hong Kong market breadth is high as mainland investors continue buy HK shares. Baidu, the largest Robotaxi operator was granted license to operate...

David Mudd

ECM Weekly (2nd Dec 2024) - Kioxia, FineToday, MNC Solutions, JST, Pateo, Carraro, Hulic, Sanrio

Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.

Sumeet Singh

C3Q24 earnings show ad performances are highly correlated with stimulus spending. We expect continuing stimulus to sustain the benefit and...

Baidu receives pilot license for autonomous driving taxis in Hong Kong while e-commerce penetration in Brazil rises during Black Friday and Shopee...