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>700 HK/BABA US:Taobao Deals App Now Supports WeChat Pay for All Users. (+)</li>
<li>700 HK: &lt;Arena Breakout: Infinite&gt; Developing AI Technology: Voice-Command Teammates (+)</li>
<li>NTES US: &lt;Where Winds Meet&gt; Final Pre-Launch Test Scheduled for August 28th (+)</li>
</ul>


700 HK/BABA US:Taobao Deals App Now Supports WeChat Pay for All Users. (+)
700 HK: &lt;Arena Breakout: Infinite&gt; Developing AI Technology: Voice-Command Teammates (+)
NTES US: &lt;Where Winds Meet&gt; Final Pre-Launch Test Scheduled for August 28th (+)


[Blue Lotus Daily-TMT Update]:700 HK/BABA US/NTES US/JD US/2618 HK/WMT US/BABAUS/AMZNUS/PDDUS/3690HK

Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Tracking Traffic

Focusing on Asian logistics, transportation, and travel companies

Equity Bottom-Up

<ul>
<li>Headline numbers for ZTO in Q224 were +10% Revenue, +12% EBITDA</li>
<li>But gross margin in core express segment fell, as did Operating Cash Flow</li>
<li>ZTO left guidance unchanged for FY24; we recommend investors AVOID it</li>
</ul>


Headline numbers for ZTO in Q224 were +10% Revenue, +12% EBITDA
But gross margin in core express segment fell, as did Operating Cash Flow
ZTO left guidance unchanged for FY24; we recommend investors AVOID it


ZTO Express Q224 Results: Slow Top-Line Growth | Margin Compression in Core Express Business | AVOID

HK/China Equity Long-Short

Osbert Tang, CFA

<ul>
<li>Even after the 28% surge in share price since the 1H24 result, <a href="https://www.smartkarma.com/entities/jd-logistics-inc" target="_blank" data-smartkarma-citation="entities:31500:1" rel="noopener">JD Logistics (2618 HK)</a> still deserves a look as fundamentals have improved, especially with better cost control.</li>
<li>JDL is riding on scale economies with higher asset utilisation. Quarterly margins have sustained an uptrend, reaching the highest levels since 1Q21 and it will continue.</li>
<li>We like its lower reliance on <a href="https://www.smartkarma.com/entities/jd-com-inc" target="_blank" data-smartkarma-citation="entities:29043:1" rel="noopener">JD.com (9618 HK)</a> and net cash of HK$2.83/share (28% of the share price). There is a massive upside in consensus forecasts too.</li>
</ul>


Even after the 28% surge in share price since the 1H24 result, JD Logistics (2618 HK) still deserves a look as fundamentals have improved, especially with better cost control.
JDL is riding on scale economies with higher asset utilisation. Quarterly margins have sustained an uptrend, reaching the highest levels since 1Q21 and it will continue.
We like its lower reliance on JD.com (9618 HK) and net cash of HK$2.83/share (28% of the share price). There is a massive upside in consensus forecasts too.


JD Logistics (2618 HK): There Are More Rooms

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>The Hang Seng Index Committee its slow move (lack of movement) towards 100 names and sector rebalancing to tech and healthcare. This is really disappointing.</li>
<li>This time? We get nothing. No name changes. Some capping flows. 6 FAF changes. </li>
<li>Minimal flows on the HSI rebalance to be effective on 9 September. </li>
</ul>


The Hang Seng Index Committee its slow move (lack of movement) towards 100 names and sector rebalancing to tech and healthcare. This is really disappointing.
This time? We get nothing. No name changes. Some capping flows. 6 FAF changes. 
Minimal flows on the HSI rebalance to be effective on 9 September. 


Hang Seng Index Sep24 Rebal - No Name Changes, Some Capping, 1% One-Way Flow - Total 0️⃣🍔

<ul>
<li>The HSCEI is famous but has less AUM tracking it passively than you'd think. Nevertheless it is well-known and well-watched.</li>
<li>
<a href="https://www.smartkarma.com/entities/j-t-global-express-ltd" target="_blank" data-smartkarma-citation="entities:36819:1" rel="noopener">J&amp;T Global Express (1519 HK)</a> and <a href="https://www.smartkarma.com/entities/new-oriental-education-techn" target="_blank" data-smartkarma-citation="entities:32210:1" rel="noopener">New Oriental Education &amp; Techn (9901 HK)</a> were ADDs. <a href="https://www.smartkarma.com/entities/jd-logistics-inc" target="_blank" data-smartkarma-citation="entities:31500:1" rel="noopener">JD Logistics (2618 HK)</a> and <a href="https://www.smartkarma.com/entities/sensetime-group-inc" target="_blank" data-smartkarma-citation="entities:34319:1" rel="noopener">SenseTime Group (20 HK)</a> are DELETEs. </li>
<li>
<a href="https://www.smartkarma.com/entities/picc-property-casualty-h" target="_blank" data-smartkarma-citation="entities:350:1" rel="noopener">PICC Property &amp; Casualty H (2328 HK)</a> was NOT included. This was a surprise. We may see some disappointment this week from pre-positioning getting sold.</li>
</ul>


The HSCEI is famous but has less AUM tracking it passively than you'd think. Nevertheless it is well-known and well-watched.

J&amp;T Global Express (1519 HK) and New Oriental Education &amp; Techn (9901 HK) were ADDs. JD Logistics (2618 HK) and SenseTime Group (20 HK) are DELETEs. 

PICC Property &amp; Casualty H (2328 HK) was NOT included. This was a surprise. We may see some disappointment this week from pre-positioning getting sold.


HSCEI Sep24 Rebal - Two ADDs, Two DELETEs, Two Surprises, Middling Flows

China

JD Logistics, Inc. offers logistics services. The Company provides cargo transportation, cargo distribution, warehousing, and other services. JD Logistics is located in China.

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JD Logistics (2618 HK)

[Blue Lotus Daily-TMT Update]:700 HK/BABA US/NTES US/JD US/2618 HK/WMT US/BABAUS/AMZNUS/PDDUS/3690HK

Taobao Deals app now accepts WeChat Pay, AI technology in development for <arena infinite breakout:="">, final pre-launch test for <where winds...

Blue Lotus Research Institute

ZTO Express Q224 Results: Slow Top-Line Growth | Margin Compression in Core Express Business | AVOID

ZTO's headline Q224 numbers look OK, but they don't paint an accurate picture of what's happening in the core express segment. We suggest investors...

Tracking Traffic