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.

Thematic (Sector/Industry)

<ul><li>Year to date, the internet sector has pulled back after rapid rallies buoyed by improved sentiment and short-term fund inflows, in line with our previous expectation.</li><li>From a full-year perspective, given the rate cut cycle has not yet started and liquidity remains tight, we suggest focusing on: 1) companies capable of boosting shareholder returns or maintaining decent returns, supported by solid fundamentals (strong competitive advantages, steady growth in core business, and stable profitability) and committed to enhancing shareholder returns (also depends on management's willingness), such as Alibaba, Tencent, and NetEase;</li><li>2) companies whose new businesses have significant market potential and are poised to bring considerable capital gains in the long run, particularly from overseas expansion and AI-related initiatives, such as Pinduoduo, Tencent, Alibaba, and Trip.com</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>

Year to date, the internet sector has pulled back after rapid rallies buoyed by improved sentiment and short-term fund inflows, in line with our previous expectation.From a full-year perspective, given the rate cut cycle has not yet started and liquidity remains tight, we suggest focusing on: 1) companies capable of boosting shareholder returns or maintaining decent returns, supported by solid fundamentals (strong competitive advantages, steady growth in core business, and stable profitability) and committed to enhancing shareholder returns (also depends on management's willingness), such as Alibaba, Tencent, and NetEase;2) companies whose new businesses have significant market potential and are poised to bring considerable capital gains in the long run, particularly from overseas expansion and AI-related initiatives, such as Pinduoduo, Tencent, Alibaba, and Trip.comContent 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.

Internet - 1Q24 recap & our three stock-picking ideas

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

<ul>
<li>NTES US: &lt;Naraka: Bladepoint&gt; PC Celebrates Third Anniversary with Several New Updates (+)</li>
<li>BIDU US: Baidu Netdisk Adds Vertical Screen Playback Feature to Accommodate Micro-Dramas (+)</li>
<li>AMZN US/BABA US: TikTok Shop to launch in Spain (-)</li>
</ul>


NTES US: &lt;Naraka: Bladepoint&gt; PC Celebrates Third Anniversary with Several New Updates (+)
BIDU US: Baidu Netdisk Adds Vertical Screen Playback Feature to Accommodate Micro-Dramas (+)
AMZN US/BABA US: TikTok Shop to launch in Spain (-)


[Blue Lotus Daily-TMT Update]:NTES US/BIDU US/AMZN US/BABA US/002230 SZ/9992 HK/1024 HK

Analyst - Media&Entertainment Sector, Blue Lotus Research Institute

Stan Zhao

Analyst - Media&Entertainment Sector

<ul>
<li>Bilibili's &lt;Three Kingdom: MDTX&gt; continues to show strong monetization performance, Based on our data tracking, we are raising the annual grossing estimate by 25% to approximately RMB 5.5 billion.</li>
<li>NetEase's &lt;Naraka Mobile&gt; has surpassed 40 million pre-registrations, making it the most pre-registered game in NetEase's history. We are raising the annual grossing estimate by 20% to RMB 12 billion.</li>
<li>Tencent's &lt;FGS&gt; has seen a continuous rise in popularity following the release of the new mode. We are raising the annual grossing estimate by 10% to RMB 13 billion.</li>
</ul>


Bilibili's &lt;Three Kingdom: MDTX&gt; continues to show strong monetization performance, Based on our data tracking, we are raising the annual grossing estimate by 25% to approximately RMB 5.5 billion.
NetEase's &lt;Naraka Mobile&gt; has surpassed 40 million pre-registrations, making it the most pre-registered game in NetEase's history. We are raising the annual grossing estimate by 20% to RMB 12 billion.
Tencent's &lt;FGS&gt; has seen a continuous rise in popularity following the release of the new mode. We are raising the annual grossing estimate by 10% to RMB 13 billion.


Online Game Monitor: June 16-July 1, 2024

<ul>
<li>JD US/PDD US /BABA US: JD launches new low-priced initiative to target lower-tier market (+/-/-)</li>
<li>BABA US/BILI US/BIDU US/700HK: Bilibili and Xiaohongshu inaccessible after 38-minute cloud crash (-/-/+/+)</li>
<li>700 HK: Tencent announces upgraded LLM training system . (+)</li>
</ul>


JD US/PDD US /BABA US: JD launches new low-priced initiative to target lower-tier market (+/-/-)
BABA US/BILI US/BIDU US/700HK: Bilibili and Xiaohongshu inaccessible after 38-minute cloud crash (-/-/+/+)
700 HK: Tencent announces upgraded LLM training system . (+)


[Blue Lotus Daily-TMT Update]:JD/PDD/BABA/BILI/BIDU/700HK/3888HK/1024HK/NTES /3690HK/TCOM/SE/CPNG/BZ

<ul>
<li>700 HK/BIDU US/BABA US/0020 HK: Chinese Domestic AI Model Providers Announce Discount Policies to Capture Market Following OpenAI's Withdrawal from China(+//////)</li>
<li>700 HK: Tencent Releases 2024 Summer Vacation Playtime Schedule for Minors(/)</li>
<li>NTES US: &lt;World of Warcraft Official&gt; Servers to Launch on August 1, All Players Get 14 Days Free Game Time (+)</li>
</ul>


700 HK/BIDU US/BABA US/0020 HK: Chinese Domestic AI Model Providers Announce Discount Policies to Capture Market Following OpenAI's Withdrawal from China(+//////)
700 HK: Tencent Releases 2024 Summer Vacation Playtime Schedule for Minors(/)
NTES US: &lt;World of Warcraft Official&gt; Servers to Launch on August 1, All Players Get 14 Days Free Game Time (+)


[Blue Lotus Daily - TMT Update]:700 HK/BIDU US/BABA US/0020 HK/NTES US/3690 HK

China

NetEase is a Chinese Internet technology company that provides online services across various sectors. Its core businesses include the development and operation of desktop and mobile games, alongside services in news aggregation, music streaming (NetEase Cloud Music), online education (Youdao), advertising, email, and e-commerce (Yanxuan). The company is headquartered in Hangzhou, China, and was founded in June 1997.

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NetEase (9999 HK)

Internet - 1Q24 recap & our three stock-picking ideas

Year to date, the internet sector has pulled back after rapid rallies buoyed by improved sentiment and short-term fund inflows, in line with our...

CMB International

[Blue Lotus Daily-TMT Update]:NTES US/BIDU US/AMZN US/BABA US/002230 SZ/9992 HK/1024 HK

Celebrating third anniversary with updates, Baidu Netdisk adds vertical screen playback, TikTok Shop to launch in Spain.

Blue Lotus Research Institute

Online Game Monitor: June 16-July 1, 2024

Top Chinese gaming companies Bilibili, NetEase, and Tencent are seeing strong monetization performance, with estimates raised for annual grossing...

Blue Lotus Research Institute

[Blue Lotus Daily-TMT Update]:JD/PDD/BABA/BILI/BIDU/700HK/3888HK/1024HK/NTES /3690HK/TCOM/SE/CPNG/BZ

JD launches new low-priced initiative to target lower-tier market, Bilibili and Xiaohongshu experience cloud crash, Tencent announces upgraded LLM...

Blue Lotus Research Institute

[Blue Lotus Daily - TMT Update]:700 HK/BIDU US/BABA US/0020 HK/NTES US/3690 HK

Chinese AI companies offer discounts to compete after OpenAI exits China, Tencent releases summer schedule for minors, World of Warcraft servers...

Blue Lotus Research Institute

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Internet - 1Q24 recap & our three stock-picking ideas

Year to date, the internet sector has pulled back after rapid rallies buoyed by improved sentiment and short-term fund inflows, in line with our...

CMB International

[Blue Lotus Daily-TMT Update]:NTES US/BIDU US/AMZN US/BABA US/002230 SZ/9992 HK/1024 HK

​Celebrating third anniversary with updates, Baidu Netdisk adds vertical screen playback, TikTok Shop to launch in Spain.

Blue Lotus Research Institute

Online Game Monitor: June 16-July 1, 2024

​Top Chinese gaming companies Bilibili, NetEase, and Tencent are seeing strong monetization performance, with estimates raised for annual grossing...

Blue Lotus Research Institute

[Blue Lotus Daily-TMT Update]:JD/PDD/BABA/BILI/BIDU/700HK/3888HK/1024HK/NTES /3690HK/TCOM/SE/CPNG/BZ

​JD launches new low-priced initiative to target lower-tier market, Bilibili and Xiaohongshu experience cloud crash, Tencent announces upgraded LLM...

Blue Lotus Research Institute

[Blue Lotus Daily - TMT Update]:700 HK/BIDU US/BABA US/0020 HK/NTES US/3690 HK

​Chinese AI companies offer discounts to compete after OpenAI exits China, Tencent releases summer schedule for minors, World of Warcraft servers...

Blue Lotus Research Institute

Celebrating third anniversary with updates, Baidu Netdisk adds vertical screen playback, TikTok Shop to launch in Spain.

Top Chinese gaming companies Bilibili, NetEase, and Tencent are seeing strong monetization performance, with estimates raised for annual grossing...

JD launches new low-priced initiative to target lower-tier market, Bilibili and Xiaohongshu experience cloud crash, Tencent announces upgraded LLM...

Chinese AI companies offer discounts to compete after OpenAI exits China, Tencent releases summer schedule for minors, World of Warcraft servers...