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 update our China online advertising model and forecast that the industry will reach RMB 1,167 bn with 9.3% YoY in 2023, rebounding from 2.7% YoY in 2022.</li>
<li>Bytedance's slowdown, Tencent's Video Account, and some sectors' uneven faster-than-expected recoveries will be three key themes that could generate investment opportunities in 2023.</li>
<li>We recommend BUY Tencent, BABA, PDD, and Meituan within the sector.</li>
</ul>


We update our China online advertising model and forecast that the industry will reach RMB 1,167 bn with 9.3% YoY in 2023, rebounding from 2.7% YoY in 2022.
Bytedance's slowdown, Tencent's Video Account, and some sectors' uneven faster-than-expected recoveries will be three key themes that could generate investment opportunities in 2023.
We recommend BUY Tencent, BABA, PDD, and Meituan within the sector.


China Online Ads Outlook: A Year of Uneven Recovery

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

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 Bottom-Up

<ul>
<li>Trip.com’s revenue increased by 29% YoY and adjusted EBITDA increased 164% YoY in 3Q22.</li>
<li>Kuaishou announced that the views of short play increased by 40% in 2022.</li>
<li>Activision Blizzard announced that they are looking for a new agency in China.</li>
</ul>


Trip.com’s revenue increased by 29% YoY and adjusted EBITDA increased 164% YoY in 3Q22.
Kuaishou announced that the views of short play increased by 40% in 2022.
Activision Blizzard announced that they are looking for a new agency in China.


China Internet Weekly (19Dec2022): Trip.com, Kuaishou, IQiyi, Activision Blizzard

Greater China Equity Long/Short Analyst

Eric Chen

<ul>
<li>IQIYI DAU surpassed 100 million  for the first time since 2020</li>
<li>Recovering China advertising market and industry' optimistic outlook for 2023 </li>
<li>COVID infection rates in China, third growth driver of Xiabuxiabu</li>
</ul>


IQIYI DAU surpassed 100 million  for the first time since 2020
Recovering China advertising market and industry' optimistic outlook for 2023 
COVID infection rates in China, third growth driver of Xiabuxiabu


Heard on the Bund – China TMT and Consumer Bi-Weekly

<ul>
<li>Richard Liu came back to manage JD.com after he resigned half a year ago.</li>
<li>Alibaba Health revenue increased 23% YoY in 1H23, which benefited from hospitals being closed.</li>
<li>Pinduoduo revenue increased by 65% YoY and operating profit increased 388% YoY in 3Q22.</li>
</ul>


Richard Liu came back to manage JD.com after he resigned half a year ago.
Alibaba Health revenue increased 23% YoY in 1H23, which benefited from hospitals being closed.
Pinduoduo revenue increased by 65% YoY and operating profit increased 388% YoY in 3Q22.


China Internet Weekly (5Dec2022): JD.com, Baidu, IQiyi, Alibaba Health, ZTO, Pinduoduo, KE

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

<ul><li>Despite macro uncertainty, we keep positive on iQIYI’s long-term subs trend and margin improvement, backed by its unique original content and valuable IP.</li><li>4Q22E would be a solid quarter, with rising subs and gradual ads recovery (supported by hit dramas New Life Begins &lt;卿卿日常&gt; and several wellanticipated titles).</li><li>We expect positive profit to continue ahead, with disciplined ROI-driven investment.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Despite macro uncertainty, we keep positive on iQIYI’s long-term subs trend and margin improvement, backed by its unique original content and valuable IP.4Q22E would be a solid quarter, with rising subs and gradual ads recovery (supported by hit dramas New Life Begins &lt;卿卿日常&gt; and several wellanticipated titles).We expect positive profit to continue ahead, with disciplined ROI-driven investment.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

iQIYI (IQ US) – Mild recovery with better margin ahead

China

iQIYI, Inc. offers video entertainment services. The Company provides movies, television dramas, variety shows, and other video contents. iQIYI offers services worldwide.

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

iQIYI Inc (IQ US)

China Online Ads Outlook: A Year of Uneven Recovery

We update our China online advertising model and conclude that Bytedance's slowdown, Tencent's Video Account, and some sectors' uneven recoveries...

Blue Lotus Research Institute

China Internet Weekly (19Dec2022): Trip.com, Kuaishou, IQiyi, Activision Blizzard

Trip.com revenue increased by 29% YoY and EBITDA increased 164% YoY in 3Q22. Kuaishou announced that the views of short play increased by 40% in...

Ming Lu

Heard on the Bund – China TMT and Consumer Bi-Weekly

IQIYI DAU surge, recovering China advertising market, COVID infection rates by cities in China, Third growth driver of Xiabuxiabu

Eric Chen

China Internet Weekly (5Dec2022): JD.com, Baidu, IQiyi, Alibaba Health, ZTO, Pinduoduo, KE

Richard Liu came back to manage JD.com after he resigned half a year ago. Alibaba Health revenue increased 23% YoY in 1H23, which benefited from...

Ming Lu

iQIYI (IQ US) – Mild recovery with better margin ahead

Despite macro uncertainty, we keep positive on iQIYI’s long-term subs trend and margin improvement, backed by its unique original content and...

CMB International

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)