Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet 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>PDD US/META US: Temu continues to be the most downloaded app in the US (+)</li>
<li>PDD US : PDD launching new ad-tool to replace previous tools (+)</li>
<li>700 HK: Tencent's Third-Person Shooter Game &lt;Synced&gt; Announces Termination of Service on September 9th (-)</li>
</ul>


PDD US/META US: Temu continues to be the most downloaded app in the US (+)
PDD US : PDD launching new ad-tool to replace previous tools (+)
700 HK: Tencent's Third-Person Shooter Game &lt;Synced&gt; Announces Termination of Service on September 9th (-)


[Blue Lotus Daily-TMT Update]:PDD US/META/700 HK/NTES/BIDU/3690 HK/JD/DADA/DDL/002024 CH/SHEIN/BABA

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>
In Depth: How a state insurance boss got a cache of gold bars. 
</li>
<li>
Jiangsu plans to set up an investigation team to look into the case of a mother of eight who was found shackled to the wall of a shed and is suspected of being trafficked.
</li>
<li>
Global investors reveal China stocks they picked and ditched. Some of the world’s top institutional investors have been disclosing the U.S.-listed Chinese stocks they bought, sold and held.
</li>
</ul>



In Depth: How a state insurance boss got a cache of gold bars. 


Jiangsu plans to set up an investigation team to look into the case of a mother of eight who was found shackled to the wall of a shed and is suspected of being trafficked.


Global investors reveal China stocks they picked and ditched. Some of the world’s top institutional investors have been disclosing the U.S.-listed Chinese stocks they bought, sold and held.



CX Daily: How a State Insurance Boss Got a Cache of Gold Bars

Alpha-Centric ESG Research

Kyle Rudden

Well, that sure escalated quickly.Early last week, in the Insight <a href="https://www.smartkarma.com/insights/pre-ipo-esg-analysis-didi-s-exemplary-esg-achievements-eclipsed-by-regulatory-risks-and-uncertainty" target="_blank" data-smartkarma-citation="insights:53687" rel="noopener">Pre-IPO ESG Analysis: DiDi's Exemplary ESG Achievements Eclipsed By Regulatory Risks and Uncertainty</a>, I juxtaposed <a href="https://www.smartkarma.com/entities/didi-chuxing-inc" target="_blank" data-smartkarma-citation="entities:27467:1" rel="noopener">DiDi's (DIDI US)</a> relatively strong ESG results in areas under its control with serious concerns about regulatory risk outside of its direct control.Late last week, days after DiDi's successful US$4.4 billion initial public offering, Chinese regulators ordered the removal of DiDi's business-critical ride-hailing apps from online app markets, until the company rectifies "serious violations" pertaining to collection and use of customer data.DiDi is down 5.3% so far (delayed open today).Regulatory risk was central to my thesis in the first Insight. I hardly anticipated this, but I referred to regulatory risk as real, near-term, tangible investment risk; not just some fuzzy ESG risk. Given that, I felt obliged to follow up. At the same time, however, this news is covered ad nauseam.No sense in beating a dead horse with a broken record.So, I decided to do something different. That statement about regulatory risk being a real tangible investment risk is primarily based on anecdotal evidence – i.e., when regulators flex their muscle, stocks go down, not up. But "anecdotal" isn't good enough.Which is why I took this opportunity to quantify the impacts of adverse regulatory events in China. Specifically, with event studies measuring abnormal returns around major regulatory events across four broad categories. That's what most of this Insight is about. But back to DiDi for a moment.Regulatory risk and uncertainty for DiDi is much worse today than it was last week. Typically, the opposite would be true; a negative event out in the open is better than a possible event lurking in the shadows. But not this time. Barring an immediate change of heart by the PRC, this is bad.Therefore, downgrading to bearish.

Well, that sure escalated quickly.Early last week, in the Insight Pre-IPO ESG Analysis: DiDi's Exemplary ESG Achievements Eclipsed By Regulatory Risks and Uncertainty, I juxtaposed DiDi's (DIDI US) relatively strong ESG results in areas under its control with serious concerns about regulatory risk outside of its direct control.Late last week, days after DiDi's successful US$4.4 billion initial public offering, Chinese regulators ordered the removal of DiDi's business-critical ride-hailing apps from online app markets, until the company rectifies "serious violations" pertaining to collection and use of customer data.DiDi is down 5.3% so far (delayed open today).Regulatory risk was central to my thesis in the first Insight. I hardly anticipated this, but I referred to regulatory risk as real, near-term, tangible investment risk; not just some fuzzy ESG risk. Given that, I felt obliged to follow up. At the same time, however, this news is covered ad nauseam.No sense in beating a dead horse with a broken record.So, I decided to do something different. That statement about regulatory risk being a real tangible investment risk is primarily based on anecdotal evidence – i.e., when regulators flex their muscle, stocks go down, not up. But "anecdotal" isn't good enough.Which is why I took this opportunity to quantify the impacts of adverse regulatory events in China. Specifically, with event studies measuring abnormal returns around major regulatory events across four broad categories. That's what most of this Insight is about. But back to DiDi for a moment.Regulatory risk and uncertainty for DiDi is much worse today than it was last week. Typically, the opposite would be true; a negative event out in the open is better than a possible event lurking in the shadows. But not this time. Barring an immediate change of heart by the PRC, this is bad.Therefore, downgrading to bearish.

PRC Shows DiDi Who's Boss: An Analysis of Adverse Regulatory Events on Stock Prices

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Anjoy Foods Group / Equity Capital Markets

<ul>
<li>With the outbreak of the Middle East war, Anjoy would face rising costs due to hyperinflation. Together with the sluggish consumption, 2025 performance growth of Anjoy would be under pressure.</li>
<li>The price war caused by overcapacity and increasing competition in the industry has forced companies to increase their promotional efforts, resulting in downward pressure on profit margin.</li>
<li>We shared our forecast for next three years. Valuation of Anjoy could be lower than <a href="https://www.smartkarma.com/entities/yihai-international-holding" target="_blank" data-smartkarma-citation="entities:22803:1" rel="noopener">Yihai (1579 HK)</a> and <a href="https://www.smartkarma.com/entities/zhengzhou-qianweiyangchu-food" target="_blank" data-smartkarma-citation="entities:34155:1" rel="noopener">Qianweiyangchu Food (001215 CH),</a> but could be higher than the industry average. </li>
</ul>


With the outbreak of the Middle East war, Anjoy would face rising costs due to hyperinflation. Together with the sluggish consumption, 2025 performance growth of Anjoy would be under pressure.
The price war caused by overcapacity and increasing competition in the industry has forced companies to increase their promotional efforts, resulting in downward pressure on profit margin.
We shared our forecast for next three years. Valuation of Anjoy could be lower than Yihai (1579 HK) and Qianweiyangchu Food (001215 CH), but could be higher than the industry average. 


Pre-IPO Anjoy Foods Group (PHIP Updates) - Thoughts on Performance Forecast and IPO Valuation

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/dada-nexus-ltd" target="_blank" data-smartkarma-citation="entities:28961:1" rel="noopener">Dada Nexus (DADA US)</a> has filed the <a href="https://ir.imdada.cn/static-files/159abee6-f8ee-4ad7-ac9a-e1943183d072" target="_blank" rel="noopener">13E-3</a> relating to the binding proposal from <a href="https://www.smartkarma.com/entities/jd-com-inc-adr" target="_blank" data-smartkarma-citation="entities:446:1" rel="noopener">JD.com Inc (ADR) (JD US)</a> at US$2.00 per ADS, a 41.8% premium to the undisturbed price.</li>
<li>The 13E-3 filing provides more details on the price negotiations, required regulatory approvals and IFA valuation. Crucially, no Chinese regulatory approvals are required.</li>
<li>The completion conditions are low-risk. At last close and for an end-September payment, the gross/annualised spread is 5.4%/12.1% (including the US$0.05 ADS cancellation fee). </li>
</ul>



Dada Nexus (DADA US) has filed the 13E-3 relating to the binding proposal from JD.com Inc (ADR) (JD US) at US$2.00 per ADS, a 41.8% premium to the undisturbed price.
The 13E-3 filing provides more details on the price negotiations, required regulatory approvals and IFA valuation. Crucially, no Chinese regulatory approvals are required.
The completion conditions are low-risk. At last close and for an end-September payment, the gross/annualised spread is 5.4%/12.1% (including the US$0.05 ADS cancellation fee). 


Dada Nexus (DADA US): Takeaways from the 13E-3 Filing

China

Dingdong Maicai provides on-demand e-commerce services in China

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

Dingdong Maicai (DDL US)

[Blue Lotus Daily-TMT Update]:PDD US/META/700 HK/NTES/BIDU/3690 HK/JD/DADA/DDL/002024 CH/SHEIN/BABA

Temu remains popular in the US, PDD introduces new ad-tool, Tencent's game to end service on September 9th.JD launches Dutch-style auction.

Blue Lotus Research Institute

CX Daily: How a State Insurance Boss Got a Cache of Gold Bars

In Depth: How a state insurance boss got a cache of gold bars. Jiangsu plans to set up an investigation team to look into the case of a mother of...

Caixin Global

PRC Shows DiDi Who's Boss: An Analysis of Adverse Regulatory Events on Stock Prices

Last week, I wrote about DiDi's regulatory risk. This week, it's worse. Hence the downgrade. But this is mostly an analysis of how regulatory...

Kyle Rudden

Pre-IPO Anjoy Foods Group (PHIP Updates) - Thoughts on Performance Forecast and IPO Valuation

Maximum IPO price is HK$66/share.Based on our 2025 forecast, P/E is 14.4x, in line with our analysis (P/E of 10-15x).So, Anjoy’s IPO is fairly...

Xinyao (Criss) Wang

Dada Nexus (DADA US): Takeaways from the 13E-3 Filing

The 13E-3 filing provides more details on the price negotiations, required regulatory approvals and IFA valuation. The gross/annualised spread is...

Arun George

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

[Blue Lotus Daily-TMT Update]:PDD US/META/700 HK/NTES/BIDU/3690 HK/JD/DADA/DDL/002024 CH/SHEIN/BABA

​Temu remains popular in the US, PDD introduces new ad-tool, Tencent's game to end service on September 9th.JD launches Dutch-style auction.

Blue Lotus Research Institute

CX Daily: How a State Insurance Boss Got a Cache of Gold Bars

In Depth: How a state insurance boss got a cache of gold bars. Jiangsu plans to set up an investigation team to look into the case of a mother of...

Caixin Global

PRC Shows DiDi Who's Boss: An Analysis of Adverse Regulatory Events on Stock Prices

Last week, I wrote about DiDi's regulatory risk. This week, it's worse. Hence the downgrade. But this is mostly an analysis of how regulatory...

Kyle Rudden

Pre-IPO Anjoy Foods Group (PHIP Updates) - Thoughts on Performance Forecast and IPO Valuation

Maximum IPO price is HK$66/share.Based on our 2025 forecast, P/E is 14.4x, in line with our analysis (P/E of 10-15x).So, Anjoy’s IPO is fairly...

Xinyao (Criss) Wang

Dada Nexus (DADA US): Takeaways from the 13E-3 Filing

The 13E-3 filing provides more details on the price negotiations, required regulatory approvals and IFA valuation. The gross/annualised spread is...

Arun George

Temu remains popular in the US, PDD introduces new ad-tool, Tencent's game to end service on September 9th.JD launches Dutch-style auction.