China/Asia TMT

Shawn Yang

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>We view the recent cooperation between Alimama and Tencent a true change that both parties need to enter a new paradigm of business priorities in China Internet;</li>
<li>Middle-Sized social/video companies like Kuaishou and Bilibili have historically exploited the disconnect between Alibaba’s e-commerce merchandise shelf and Tencent’s advertising inventory. This opportunity is diminishing;</li>
<li>We raised Tencent's TP by 4% to HK$417 while keeping Alibaba unchanged. We cut Kuaishou and Bilibili’s TP by 8% and 3% and maintain SELL.</li>
</ul>


We view the recent cooperation between Alimama and Tencent a true change that both parties need to enter a new paradigm of business priorities in China Internet;
Middle-Sized social/video companies like Kuaishou and Bilibili have historically exploited the disconnect between Alibaba’s e-commerce merchandise shelf and Tencent’s advertising inventory. This opportunity is diminishing;
We raised Tencent's TP by 4% to HK$417 while keeping Alibaba unchanged. We cut Kuaishou and Bilibili’s TP by 8% and 3% and maintain SELL.


[Blue Lotus Internet Sector Update]: Increasing Marginalization of Middle-Sized Companies

<ul>
<li>Blue Lotus expects Huawei’s smartphone shipment market share to grow 5ppt in 2024, of which 2ppt from Apple and 1.5ppt from Honor;</li>
<li>The impacts are mainly two: (1) Huawei Appstore’s unique revenue share for games and apps, (2) Opportunity to recommend new games and apps through preinstallation;</li>
<li>We see the biggest positive impact on subscription-based video apps and the biggest negative impact on mobile games. We reiterate our Top Pick in iQIYI.</li>
</ul>


Blue Lotus expects Huawei’s smartphone shipment market share to grow 5ppt in 2024, of which 2ppt from Apple and 1.5ppt from Honor;
The impacts are mainly two: (1) Huawei Appstore’s unique revenue share for games and apps, (2) Opportunity to recommend new games and apps through preinstallation;
We see the biggest positive impact on subscription-based video apps and the biggest negative impact on mobile games. We reiterate our Top Pick in iQIYI.


[Blue Lotus Entertainment Sector Update]: What Change Can Mate 60 Bring to Games and Apps

<ul>
<li>1810.HK/AAPL/981.HK: Local media reports that the Mate 60 series is planned to ship 20mn units (-/-/+)</li>
<li>HK700/HK1024/DOYU/BILI/IQ: Tencent announced its live broadcast rights holder for 2023 Hangzhou Asian Games. (+)/(-)/(-)/(-)/(-)</li>
<li>BABA/VIPS / PDD/ 3690.HK/ YSG/JD: Social retail consumption improved month-on-month (+/+/+/+/+/-)</li>
</ul>


1810.HK/AAPL/981.HK: Local media reports that the Mate 60 series is planned to ship 20mn units (-/-/+)
HK700/HK1024/DOYU/BILI/IQ: Tencent announced its live broadcast rights holder for 2023 Hangzhou Asian Games. (+)/(-)/(-)/(-)/(-)
BABA/VIPS / PDD/ 3690.HK/ YSG/JD: Social retail consumption improved month-on-month (+/+/+/+/+/-)


China TMT Update-1810.HK/AAPL/981.HK/HK700/HK1024/DOYU/BILI/IQ/BABA/VIPS/PDD/3690.HK/YSG/JD-Mate 60

<ul>
<li>PDD - Our thoughts of Grizzly's short report on PDD</li>
<li>BILI: Bilibili suspends download access for "Shining! Umamusume: Pretty Derby" across All Platforms (-) </li>
<li>Real Estate Industry Update: Four major banks in China will lower their mortgage interest rate for old loans.</li>
</ul>


PDD - Our thoughts of Grizzly's short report on PDD
BILI: Bilibili suspends download access for "Shining! Umamusume: Pretty Derby" across All Platforms (-) 
Real Estate Industry Update: Four major banks in China will lower their mortgage interest rate for old loans.


China TMT Update-PDD/BILI/BEKE-Grizzly's Short Report/Suspends Download For "Pretty Derby"

<ul>
<li>1810.HK/AAPL: Huawei Mate 60 supply chain order volume may have reached 15-17mn units (-/-)</li>
<li>BILI（-）： Shining! Umamusume: Pretty Derby"  is experiencing a sharp decline in popularity.</li>
<li>LI/XPEV/NIO/BYD/ TSLA/ Leap: MIIT Aims for 9mn NEV Sales in 2023 (+/+/+/+/+/+)</li>
</ul>


1810.HK/AAPL: Huawei Mate 60 supply chain order volume may have reached 15-17mn units (-/-)
BILI（-）： Shining! Umamusume: Pretty Derby"  is experiencing a sharp decline in popularity.
LI/XPEV/NIO/BYD/ TSLA/ Leap: MIIT Aims for 9mn NEV Sales in 2023 (+/+/+/+/+/+)


China TMT Update- 1810.HK/AAPL/BILI/LI/XPEV/NIO/BYD/TSLA/Leap-Huawei Mate 60/Pretty Derby/9mn NEV

China

Bilibili Inc. provides online entertainment services. The Company offers a platform that covers a wide array of genres and media formats, including videos, live broadcasting, mobile games, animation, and comics. Bilibili serves customers in China.

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Bilibili (BILI US)

[Blue Lotus Internet Sector Update]: Increasing Marginalization of Middle-Sized Companies

We raised Tencent's TP by 4% to HK$417 while keeping Alibaba unchanged. We cut Kuaishou and Bilibili’s TP by 8% and 3% and maintain SELL.

Blue Lotus Research Institute

[Blue Lotus Entertainment Sector Update]: What Change Can Mate 60 Bring to Games and Apps

We see the biggest positive impact on subscription-based video apps and the biggest negative impact on mobile games. We reiterate our Top Pick in...

Blue Lotus Research Institute

China TMT Update-1810.HK/AAPL/981.HK/HK700/HK1024/DOYU/BILI/IQ/BABA/VIPS/PDD/3690.HK/YSG/JD-Mate 60

Local media reports that the Mate 60 series is planned to ship 20mn units; Tencent announced its live broadcast rights holder for Asian Games;...

Blue Lotus Research Institute

China TMT Update-PDD/BILI/BEKE-Grizzly's Short Report/Suspends Download For "Pretty Derby"

PDD - Our thoughts of Grizzly's short report on PDD/BILI: Bilibili suspends download access for "Pretty Derby" (-) /Four major banks in China will...

Blue Lotus Research Institute

China TMT Update- 1810.HK/AAPL/BILI/LI/XPEV/NIO/BYD/TSLA/Leap-Huawei Mate 60/Pretty Derby/9mn NEV

Huawei Mate 60 supply chain order volume may have reached 15-17mn units; Shining! Umamusume: Pretty Derby" is experiencing a sharp decline; MIIT...

Blue Lotus Research Institute

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