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>BEKE US: NBS November residential new home turn positive YoY, and home price stabilized（+）</li>
<li>300274 CH: Renewable Energy News: U.S. Raises Tariffs on Chinese Photovoltaic Products to 50%（-）</li>
<li>ACMR US: ACMR sees minimal impact on ability to manufacture and sell tools due to U.S. entity list inclusion (+)</li>
</ul>


BEKE US: NBS November residential new home turn positive YoY, and home price stabilized（+）
300274 CH: Renewable Energy News: U.S. Raises Tariffs on Chinese Photovoltaic Products to 50%（-）
ACMR US: ACMR sees minimal impact on ability to manufacture and sell tools due to U.S. entity list inclusion (+)


[Blue Lotus Daily]:BEKE US/300274 CH/ACMR US/NIO US/XPEV US/ Li US/1810HK/ZTO US/Macro News/Consumer

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>The decline of new home sales was narrowed in the past ten months.</li>
<li>New home, rental, and furnishing businesses grew strongly in 3Q24.</li>
<li>We believe the operating margin will improve in 2025 and 2026.</li>
</ul>


The decline of new home sales was narrowed in the past ten months.
New home, rental, and furnishing businesses grew strongly in 3Q24.
We believe the operating margin will improve in 2025 and 2026.


KE (BEKE): New Home Decline Narrowed, The Top Agent Needed by Landlords and Developers

<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

<ul>
<li>BEKE US: Property Transactions Remained Strong in November, with Accelerated Growth in the Final Week.(+)</li>
<li>BZ US/3690 HK/TCOM US/ATAT US: Manufacturing PMI Slightly Exceeds Consensus in November, While Service PMI Falls Below; Hiring Intentions Remain Low.(-/-/-/-)</li>
<li>ZTO US/ BABA US/VIPS US: China parcel volume delivery grew 40% yoy in the prior week (+/+/+)</li>
</ul>


BEKE US: Property Transactions Remained Strong in November, with Accelerated Growth in the Final Week.(+)
BZ US/3690 HK/TCOM US/ATAT US: Manufacturing PMI Slightly Exceeds Consensus in November, While Service PMI Falls Below; Hiring Intentions Remain Low.(-/-/-/-)
ZTO US/ BABA US/VIPS US: China parcel volume delivery grew 40% yoy in the prior week (+/+/+)


[Blue Lotus Daily]:BEKE US/BZ US/3690 HK/TCOM US/ATAT US/ZTO US/ BABA US/VIPS US

<ul>
<li>Beike (BEKE) reported C3Q24 revenue in-line with our estimate and consensus but non-GAAP operating profit 26%/25% below, mainly due to higher commission rebate and agent salaries;</li>
<li>Strong rebound in home transaction volumes in October and November, led to our C4Q24 revenue 16% above consensus. But the rebound needs more stimulus to sustain;</li>
<li>We maintain the stock as BUY and raise TP to US$25 to reflect the near term rebound and steady market share gains.</li>
</ul>


Beike (BEKE) reported C3Q24 revenue in-line with our estimate and consensus but non-GAAP operating profit 26%/25% below, mainly due to higher commission rebate and agent salaries;
Strong rebound in home transaction volumes in October and November, led to our C4Q24 revenue 16% above consensus. But the rebound needs more stimulus to sustain;
We maintain the stock as BUY and raise TP to US$25 to reflect the near term rebound and steady market share gains.


[KE Holdings Inc. (BEKE US, BUY, TP US$25) TP Change]: C3Q24 Review: C4Q24 Rebound but What’s Next?

China

KE Holdings Inc. operates as an integrated online and offline platform for housing transactions and services. The Company offers existing and new home sales, home rentals, home renovation, real estate financial solutions, and other services. KE Holdings conducts businesses in China.

Price Gauge
52-week Range	0.00 - 0.00
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Dividend (Yield)	0.00

KE Holdings (BEKE US)

[Blue Lotus Daily]:BEKE US/300274 CH/ACMR US/NIO US/XPEV US/ Li US/1810HK/ZTO US/Macro News/Consumer

Positive news for the US housing market as new home sales increase and prices stabilize, while Chinese renewable energy products face higher...

Blue Lotus Research Institute

KE (BEKE): New Home Decline Narrowed, The Top Agent Needed by Landlords and Developers

The declining of new home sales was narrowed in the past ten months. New home, rental, and furnishing businesses grew strongly in 3Q24. We believe...

Ming Lu

[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

[Blue Lotus Daily]:BEKE US/BZ US/3690 HK/TCOM US/ATAT US/ZTO US/ BABA US/VIPS US

Property transactions in the US remained strong in November, with accelerated growth in the final week. Manufacturing PMI slightly exceeds...

Blue Lotus Research Institute

[KE Holdings Inc. (BEKE US, BUY, TP US$25) TP Change]: C3Q24 Review: C4Q24 Rebound but What’s Next?

Beike (BEKE) reports in-line revenue but lower operating profit, with a strong rebound in home transaction volumes leading to increased revenue....

Blue Lotus Research Institute

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

[Blue Lotus Daily]:BEKE US/300274 CH/ACMR US/NIO US/XPEV US/ Li US/1810HK/ZTO US/Macro News/Consumer

​Positive news for the US housing market as new home sales increase and prices stabilize, while Chinese renewable energy products face higher...

Blue Lotus Research Institute

KE (BEKE): New Home Decline Narrowed, The Top Agent Needed by Landlords and Developers

The declining of new home sales was narrowed in the past ten months. New home, rental, and furnishing businesses grew strongly in 3Q24. We believe...

Ming Lu

[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

[Blue Lotus Daily]:BEKE US/BZ US/3690 HK/TCOM US/ATAT US/ZTO US/ BABA US/VIPS US

​Property transactions in the US remained strong in November, with accelerated growth in the final week. Manufacturing PMI slightly exceeds...

Blue Lotus Research Institute

[KE Holdings Inc. (BEKE US, BUY, TP US$25) TP Change]: C3Q24 Review: C4Q24 Rebound but What’s Next?

​Beike (BEKE) reports in-line revenue but lower operating profit, with a strong rebound in home transaction volumes leading to increased revenue....

Blue Lotus Research Institute

Positive news for the US housing market as new home sales increase and prices stabilize, while Chinese renewable energy products face higher...

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

Property transactions in the US remained strong in November, with accelerated growth in the final week. Manufacturing PMI slightly exceeds...

Beike (BEKE) reports in-line revenue but lower operating profit, with a strong rebound in home transaction volumes leading to increased revenue....