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>Given Trump’s overhaul of US economy and world trade, US interest rate may stay high and Renminbi might depreciate further, both negative for our sectors from a foreign investor perspective;</li>
<li>We expect China to respond strongly to Trump Tariff 2.0, which will necessitate bigger stimulus, leading to a scenario of a policy overdose;</li>
<li>We look for: (1) high dividend yield, (2) US-dollar exposure, (3) policy overdose in stock selection. We add TRIP and ATAT to our DMC and reiterate our MMC  portfolios</li>
</ul>


Given Trump’s overhaul of US economy and world trade, US interest rate may stay high and Renminbi might depreciate further, both negative for our sectors from a foreign investor perspective;
We expect China to respond strongly to Trump Tariff 2.0, which will necessitate bigger stimulus, leading to a scenario of a policy overdose;
We look for: (1) high dividend yield, (2) US-dollar exposure, (3) policy overdose in stock selection. We add TRIP and ATAT to our DMC and reiterate our MMC  portfolios


Invest in China Growth Equity in High-Rate Environment

<ul>
<li>LI US/TSLA US/XPEV US/NIO US/1211 HK:In the 49th week of 2024, LI and Tesla hedged against the slowdown in industry sales by increasing subsidies (/////////)</li>
<li>300750 CH: CATL announces a battery Factory plan in Spain, marking its third overseas plant (+)</li>
<li>BEKE US: Second week of December sees abnormal surge in existing home sales, while new home sales maintain steady growth (+)</li>
</ul>


LI US/TSLA US/XPEV US/NIO US/1211 HK:In the 49th week of 2024, LI and Tesla hedged against the slowdown in industry sales by increasing subsidies (/////////)
300750 CH: CATL announces a battery Factory plan in Spain, marking its third overseas plant (+)
BEKE US: Second week of December sees abnormal surge in existing home sales, while new home sales maintain steady growth (+)


[Blue Lotus Daily]:LI US/TSLA US/XPEV US/NIO US/1211 HK/300750 CH/BEKE US/1810 HK/LKNCY US

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.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/rept-battero-energy" target="_blank" data-smartkarma-citation="entities:36626:1" rel="noopener">REPT BATTERO Energy</a> raised around US$270m in its Hong Kong IPO in Dec 2023. Its pre-IPO investors holding around US$1.2bn worth of shares will be released from their lockup soon.</li>
<li>REPT is a lithium-ion battery manufacturer in China, focusing on R&amp;D, production, and sales of EV/ESS lithium-ion battery products such as battery cells, modules and packs.</li>
<li>In this note, we will talk about the lockup dynamics and possible placement.</li>
</ul>



REPT BATTERO Energy raised around US$270m in its Hong Kong IPO in Dec 2023. Its pre-IPO investors holding around US$1.2bn worth of shares will be released from their lockup soon.
REPT is a lithium-ion battery manufacturer in China, focusing on R&amp;D, production, and sales of EV/ESS lithium-ion battery products such as battery cells, modules and packs.
In this note, we will talk about the lockup dynamics and possible placement.


REPT BATTERO Energy IPO Lockup - US$1.2bn Lockup Release

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>Back on the 15th August, lithium play <a href="https://www.smartkarma.com/entities/latin-resources-ltd" target="_blank" data-smartkarma-citation="entities:8770:1" rel="noopener">Latin Resources (LRS AU)</a> entered into a Scheme with <a href="https://www.smartkarma.com/entities/pilbara-minerals-ltd" target="_blank" data-smartkarma-citation="entities:7460:1" rel="noopener">Pilbara Minerals (PLS AU)</a>. PLS offered 0.07 new PLS shares for every LRS share.</li>
<li>The Scheme Booklet was slightly delayed to reflect Pilbara's recently adjusted FY25 guidance - nothing deal/project related.</li>
<li>
The Scheme Booklet is now out, with a Scheme Meeting to be held on the 16th Jan. Expected implementation on the 4th Feb. The IE (BDO) says fair &amp; reasonable.</li>
</ul>


Back on the 15th August, lithium play Latin Resources (LRS AU) entered into a Scheme with Pilbara Minerals (PLS AU). PLS offered 0.07 new PLS shares for every LRS share.
The Scheme Booklet was slightly delayed to reflect Pilbara's recently adjusted FY25 guidance - nothing deal/project related.

The Scheme Booklet is now out, with a Scheme Meeting to be held on the 16th Jan. Expected implementation on the 4th Feb. The IE (BDO) says fair &amp; reasonable.


Latin Resources (LRS AU): 16th January Merger Vote

<ul>
<li>The election of Donald Trump with overwhelming majority changes the investment logic of our sectors and perhaps others. But besides acknowledging, what is actionable is the broad impact expected globally; </li>
<li>Thus the questions of whether Trump's policies will be successful, become important: how flexible they are, what are the signposts and who stand to benefit and be hurt;</li>
<li>Our standing assumption is that both MAGA and non-MAGA will claim victory.  We are assuming quality executions from the Trump team but the odds of achieving is still daunting.</li>
</ul>


The election of Donald Trump with overwhelming majority changes the investment logic of our sectors and perhaps others. But besides acknowledging, what is actionable is the broad impact expected globally; 
Thus the questions of whether Trump's policies will be successful, become important: how flexible they are, what are the signposts and who stand to benefit and be hurt;
Our standing assumption is that both MAGA and non-MAGA will claim victory.  We are assuming quality executions from the Trump team but the odds of achieving is still daunting.


Hong Kong

Contemporary Amperex Technology Co., Limited. operates as a battery products manufacturing company. The Company produces and sells power battery materials, energy storage batteries energy storage battery cells, systems, and other products. Contemporary Amperex Technology also provides batteries recycling services.

Contemporary Amperex Technology (CATL) (3750 HK)

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Contemporary Amperex Technology (CATL) (3750 HK)

Invest in China Growth Equity in High-Rate Environment

Trump's policies may lead to high US interest rates and a depreciating Renminbi. As remedy outside of buying high dividend stocks, we propose a...

Blue Lotus Research Institute

[Blue Lotus Daily]:LI US/TSLA US/XPEV US/NIO US/1211 HK/300750 CH/BEKE US/1810 HK/LKNCY US

LI and Tesla increase subsidies to hedge against industry sales slowdown. CATL plans third overseas plant in Spain. Abnormal surge in existing...

Blue Lotus Research Institute

REPT BATTERO Energy IPO Lockup - US$1.2bn Lockup Release

REPT BATTERO Energy raised around US$270m in its Hong Kong IPO in Dec 2023. Its pre-IPO investors holding around US$1.2bn worth of shares will be...

Sumeet Singh

Latin Resources (LRS AU): 16th January Merger Vote

After a slight delay, this is done. Trading wide-ish at a gross/annualised return of 2.9%/18.3%. IF you can take down borrow cheaply on PLS, do so.

David Blennerhassett

Smart Trump, or Dumb Trump?

Election of Trump shifts investment logic but we differ on how. First realization is it is a zero sum game and assessing MAGA's chance of success...

Blue Lotus Research Institute

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Invest in China Growth Equity in High-Rate Environment

​Trump's policies may lead to high US interest rates and a depreciating Renminbi. As remedy outside of buying high dividend stocks, we propose a...

Blue Lotus Research Institute

[Blue Lotus Daily]:LI US/TSLA US/XPEV US/NIO US/1211 HK/300750 CH/BEKE US/1810 HK/LKNCY US

​LI and Tesla increase subsidies to hedge against industry sales slowdown. CATL plans third overseas plant in Spain. Abnormal surge in existing...

Blue Lotus Research Institute

REPT BATTERO Energy IPO Lockup - US$1.2bn Lockup Release

REPT BATTERO Energy raised around US$270m in its Hong Kong IPO in Dec 2023. Its pre-IPO investors holding around US$1.2bn worth of shares will be...

Sumeet Singh

Latin Resources (LRS AU): 16th January Merger Vote

After a slight delay, this is done. Trading wide-ish at a gross/annualised return of 2.9%/18.3%. IF you can take down borrow cheaply on PLS, do so.

David Blennerhassett

Smart Trump, or Dumb Trump?

​Election of Trump shifts investment logic but we differ on how. First realization is it is a zero sum game and assessing MAGA's chance of success...

Blue Lotus Research Institute

Trump's policies may lead to high US interest rates and a depreciating Renminbi. As remedy outside of buying high dividend stocks, we propose a...

LI and Tesla increase subsidies to hedge against industry sales slowdown. CATL plans third overseas plant in Spain. Abnormal surge in existing...

Election of Trump shifts investment logic but we differ on how. First realization is it is a zero sum game and assessing MAGA's chance of success...