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>TSLA/XPEV/1211: Tesla starts presales of revamped Model 3 in China at higher starting price (/-/-)</li>
<li>IQ：iQiYi’s drama pipeline was affected by lead actress Zu‘er(Lareina) Song’s tax evasion inspection (-)</li>
<li>Real Estate Industry Update/Beke: Beijing and Shanghai followed on implementing the housing loan loosening policy, transaction willingness improved immediately</li>
</ul>


TSLA/XPEV/1211: Tesla starts presales of revamped Model 3 in China at higher starting price (/-/-)
IQ：iQiYi’s drama pipeline was affected by lead actress Zu‘er(Lareina) Song’s tax evasion inspection (-)
Real Estate Industry Update/Beke: Beijing and Shanghai followed on implementing the housing loan loosening policy, transaction willingness improved immediately


China TMT Update-TSLA/XPEV/1211/IQ/Beke:Beijing and Shanghai Housing Loan Loosening;revamped Model 3

<ul>
<li>We updated our revenue forecasts for ByteDance (China domestic) , with the industry models. We estimate that ByteDance's domestic ad revenue/eCommerce GMV/local lifestyle GTV will grow by 17%/50%/134% this year.</li>
<li>In the advertising space, we recommend Tencent and iQIYI. Both Tencent and iQIYI experienced a decline in their advertising revenue market share in 2022, followed by a rebound in 2023.</li>
<li>In transactional GMV/GTV, we prefer Meituan and Pinduoduo. Meituan's market share experienced a significant decline in 2022, but the decline rate is expected to narrow significantly this year.</li>
</ul>


We updated our revenue forecasts for ByteDance (China domestic) , with the industry models. We estimate that ByteDance's domestic ad revenue/eCommerce GMV/local lifestyle GTV will grow by 17%/50%/134% this year.
In the advertising space, we recommend Tencent and iQIYI. Both Tencent and iQIYI experienced a decline in their advertising revenue market share in 2022, followed by a rebound in 2023.
In transactional GMV/GTV, we prefer Meituan and Pinduoduo. Meituan's market share experienced a significant decline in 2022, but the decline rate is expected to narrow significantly this year.


[Blue Lotus Multi-Platform Sector Update]: ByteDance Forecasts and Implications for China Internet

<ul>
<li>We suggest that both Tencent and NetEase will launch blockbuster new games in their pipelines during this year's summer vacation, with NetEase slightly surpassing Tencent.  </li>
<li>Although iQIYI, Kuaishou, and BILI each have new games, their contributions are relatively small, so we maintain a SELL rating for these three companies;</li>
<li>Investors can also pay attention to Nexon and Netmarble, two Korean game companies that are expected to benefit from the launch of new games;  </li>
</ul>


We suggest that both Tencent and NetEase will launch blockbuster new games in their pipelines during this year's summer vacation, with NetEase slightly surpassing Tencent.  
Although iQIYI, Kuaishou, and BILI each have new games, their contributions are relatively small, so we maintain a SELL rating for these three companies;
Investors can also pay attention to Nexon and Netmarble, two Korean game companies that are expected to benefit from the launch of new games;  


Blue Lotus Entertainment Sector Update: Tencent, NetEase and Kingsoft Have Strong Pipeline

<ul>
<li>700.HK/ IQ： Tencent Video and Douyin reach strategic cooperation （+/-）</li>
<li>NIO: NIO to allow consumers to lock in EC7 orders starting Apr 10 （+）</li>
<li>ZLAB/1801HK: ZaiLab started FGFR2 mAb Phase III trial for Gastric Cancer in China (+)</li>
</ul>


700.HK/ IQ： Tencent Video and Douyin reach strategic cooperation （+/-）
NIO: NIO to allow consumers to lock in EC7 orders starting Apr 10 （+）
ZLAB/1801HK: ZaiLab started FGFR2 mAb Phase III trial for Gastric Cancer in China (+)


China TMT Update(Apr.10): 700.HK/IQ/NIO/ZLAB/1801HK - Tencent Video and Douyin Reach Cooperation

<ul>
<li>700HK/NTES/BILI/IQ/3659.JP: The latest Foreign game codes released by NPPA, positive to gaming companies(+)</li>
<li>BGNE/9995HK：Daiichi and Zymeworks end antibody pact after seven years (-)</li>
<li>ZLAB：ZaiLab's partner Karua's Schizophrenia drug obtained positive Phase 3 data (+)</li>
</ul>


700HK/NTES/BILI/IQ/3659.JP: The latest Foreign game codes released by NPPA, positive to gaming companies(+)
BGNE/9995HK：Daiichi and Zymeworks end antibody pact after seven years (-)
ZLAB：ZaiLab's partner Karua's Schizophrenia drug obtained positive Phase 3 data (+)


China TMT Update(Mar.22): 700HK/NTES/BILI/IQ/3659.JP /BGNE/9995HK/ZLAB - Foreign Game Codes(+)

China

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

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iQIYI Inc (IQ US)

China TMT Update-TSLA/XPEV/1211/IQ/Beke:Beijing and Shanghai Housing Loan Loosening;revamped Model 3

Tesla starts presales of revamped Model 3 in China ;iQiYi’s drama pipeline was affected by lead actress Zu‘er(Lareina) Song’s tax evasion...

Blue Lotus Research Institute

[Blue Lotus Multi-Platform Sector Update]: ByteDance Forecasts and Implications for China Internet

We estimate that ByteDance's domestic ad revenue/eCommerce GMV/local lifestyle GTV will grow by 17%/50%/134% this year. We prefer Tencent, iQiyi,...

Blue Lotus Research Institute

Blue Lotus Entertainment Sector Update: Tencent, NetEase and Kingsoft Have Strong Pipeline

We suggest that both Tencent and NetEase will launch blockbuster new games in their pipelines during this year's summer vacation, with NetEase...

Blue Lotus Research Institute

China TMT Update(Apr.10): 700.HK/IQ/NIO/ZLAB/1801HK - Tencent Video and Douyin Reach Cooperation

Tencent Video and Douyin reach strategic cooperation ； NIO to allow onsumers to lock in EC7 orders starting Apr 10 ；ZaiLab started FGFR2 mAb Phase...

Blue Lotus Research Institute

China TMT Update(Mar.22): 700HK/NTES/BILI/IQ/3659.JP /BGNE/9995HK/ZLAB - Foreign Game Codes(+)

700HK/NTES/BILI/IQ/3659.JP: The latest Foreign game codes; BGNE/9995HK：Daiichi and Zymeworks end antibody pact (-) ; ZLAB：ZaiLab's partner Karua's...

Blue Lotus Research Institute

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