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>JD US/BABA US/1810 HK: Jiangsu Province adds seven new products to the list of appliances eligible for subsidies(+/+/+)</li>
<li>700 HK: Tencent's MOBA Game &lt;Pokémon Unite&gt; Mobile Version Set for Release on November 7(+)</li>
<li>700 HK: Tencent-owned Riot Games Announces Layoffs, Offering Severance of at Least Six Months' Salary, Aiming to Keep &lt;League of Legends&gt; Thriving for 15 More Years(/)</li>
</ul>


JD US/BABA US/1810 HK: Jiangsu Province adds seven new products to the list of appliances eligible for subsidies(+/+/+)
700 HK: Tencent's MOBA Game &lt;Pokémon Unite&gt; Mobile Version Set for Release on November 7(+)
700 HK: Tencent-owned Riot Games Announces Layoffs, Offering Severance of at Least Six Months' Salary, Aiming to Keep &lt;League of Legends&gt; Thriving for 15 More Years(/)


[Blue Lotus Daily-TMT Update]:JD US/BABA US/1810 HK/700 HK/NTES US/3690 HK

Analyst - Media&Entertainment Sector, Blue Lotus Research Institute

Stan Zhao

Analyst - Media&Entertainment Sector

<ul>
<li>Tencent’s &lt;Peacekeeper&gt; saw a strong player return and robust revenue performance due to introducing new gameplay modes, with projected gross billings for 2024 expected to exceed RMB 20 billion.</li>
<li>&lt;DnF Mobile&gt; continues to perform well, maintaining high popularity, leading to an upward revision of its annual revenue forecast.</li>
<li>New games &lt;Civilization Mobile&gt; and &lt;Need for Speed Mobile&gt; experienced a sharp decline in popularity, and with a late release, their contribution to 2024 revenue is expected to be limited.</li>
</ul>


Tencent’s &lt;Peacekeeper&gt; saw a strong player return and robust revenue performance due to introducing new gameplay modes, with projected gross billings for 2024 expected to exceed RMB 20 billion.
&lt;DnF Mobile&gt; continues to perform well, maintaining high popularity, leading to an upward revision of its annual revenue forecast.
New games &lt;Civilization Mobile&gt; and &lt;Need for Speed Mobile&gt; experienced a sharp decline in popularity, and with a late release, their contribution to 2024 revenue is expected to be limited.


China Online Game Grossing Monitor: September 23 - October 10, 2024

<ul>
<li>BABA US/PDD US/JD US/VIPS US: Tmall shares recent growth figures and Double 11 initiatives (+/-/-/-)</li>
<li>BABA US/PDD US/SHEIN/4385 JP/4689 JP: AliExpress and Cainiao expand 5-day delivery to three additional countries including Japan (+/-/-)</li>
<li>BABA US/JD US/PDD US: Alibaba launches upgraded AI-based store management tool (+/-/-)</li>
</ul>


BABA US/PDD US/JD US/VIPS US: Tmall shares recent growth figures and Double 11 initiatives (+/-/-/-)
BABA US/PDD US/SHEIN/4385 JP/4689 JP: AliExpress and Cainiao expand 5-day delivery to three additional countries including Japan (+/-/-)
BABA US/JD US/PDD US: Alibaba launches upgraded AI-based store management tool (+/-/-)


[Blue Lotus Daily-TMT Update]:BABA US/PDD US/JD US/VIPS US/4385JP/4689JP/NTES US/MSFT US/BIDU/700HK

<ul>
<li>TCOM US: Overseas Travel for National Holiday Grow Faster than Domestic Travel, Potentially Signaling the End of Consumption Downgrading (+)</li>
<li>PDD US: PDD announces another support plan for “quality merchants” (/)</li>
<li>BABA US/JD US/002352 CH: E-commerce players intensify logistics competition in Hong Kong (////-)</li>
</ul>


TCOM US: Overseas Travel for National Holiday Grow Faster than Domestic Travel, Potentially Signaling the End of Consumption Downgrading (+)
PDD US: PDD announces another support plan for “quality merchants” (/)
BABA US/JD US/002352 CH: E-commerce players intensify logistics competition in Hong Kong (////-)


[Blue Lotus Daily-TMT Update]:TCOMUS/PDDUS/BABA/JD/002352CH/700HK/NTES/BILI/002624CH/3888HK/3690HK

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>Although the tech sector in Hong Kong has surged over the last couple of weeks there appears to be minimal short covering in US-listed China tech names.</li>
<li>The performance of the "Magnificent 5" China tech names has led the rally as we outlined in <a href="https://www.smartkarma.com/insights/hong-kong-the-glass-is-half-full-time-to-buy-beta" target="_blank" data-smartkarma-citation="insights:134396" rel="noopener">Hong Kong: The Glass Is Half Full, Time to BUY Beta</a> .</li>
<li>The combination of of large outstanding short positions and a significant underweight of HK/China in international funds will lead to further upside in the tech sector.</li>
</ul>


Although the tech sector in Hong Kong has surged over the last couple of weeks there appears to be minimal short covering in US-listed China tech names.
The performance of the "Magnificent 5" China tech names has led the rally as we outlined in Hong Kong: The Glass Is Half Full, Time to BUY Beta .
The combination of of large outstanding short positions and a significant underweight of HK/China in international funds will lead to further upside in the tech sector.


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)

[Blue Lotus Daily-TMT Update]:JD US/BABA US/1810 HK/700 HK/NTES US/3690 HK

Jiangsu Province adds new products to subsidy list; Tencent to release Pokémon Unite mobile game; Riot Games announces layoffs to support League...

Blue Lotus Research Institute

China Online Game Grossing Monitor: September 23 - October 10, 2024

Tencent's flagship titles thrive with new gameplay modes, while NetEase's new game struggles with declining popularity and late releases impacting...

Blue Lotus Research Institute

[Blue Lotus Daily-TMT Update]:BABA US/PDD US/JD US/VIPS US/4385JP/4689JP/NTES US/MSFT US/BIDU/700HK

Alibaba's Tmall reports growth, expands delivery services, and launches AI-based store management tool.NetEase's Mobile Game Announces Shutdown

Blue Lotus Research Institute

[Blue Lotus Daily-TMT Update]:TCOMUS/PDDUS/BABA/JD/002352CH/700HK/NTES/BILI/002624CH/3888HK/3690HK

Overseas travel for national holidays on the rise, signaling potential end to consumption downgrading. PDD announces support plan for quality...

Blue Lotus Research Institute

HK/China: THE BIG SHORT (SQUEEZE)

Even though HK/China tech names have surged, short positions have not covered. The large underweight position in HK/China by international funds...

David Mudd

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

[Blue Lotus Daily-TMT Update]:JD US/BABA US/1810 HK/700 HK/NTES US/3690 HK

​Jiangsu Province adds new products to subsidy list; Tencent to release Pokémon Unite mobile game; Riot Games announces layoffs to support League...

Blue Lotus Research Institute

China Online Game Grossing Monitor: September 23 - October 10, 2024

​Tencent's flagship titles thrive with new gameplay modes, while NetEase's new game struggles with declining popularity and late releases impacting...

Blue Lotus Research Institute

[Blue Lotus Daily-TMT Update]:BABA US/PDD US/JD US/VIPS US/4385JP/4689JP/NTES US/MSFT US/BIDU/700HK

​Alibaba's Tmall reports growth, expands delivery services, and launches AI-based store management tool.NetEase's Mobile Game Announces Shutdown

Blue Lotus Research Institute

[Blue Lotus Daily-TMT Update]:TCOMUS/PDDUS/BABA/JD/002352CH/700HK/NTES/BILI/002624CH/3888HK/3690HK

​Overseas travel for national holidays on the rise, signaling potential end to consumption downgrading. PDD announces support plan for quality...

Blue Lotus Research Institute

HK/China: THE BIG SHORT (SQUEEZE)

Even though HK/China tech names have surged, short positions have not covered. The large underweight position in HK/China by international funds...

David Mudd

Jiangsu Province adds new products to subsidy list; Tencent to release Pokémon Unite mobile game; Riot Games announces layoffs to support League...

Tencent's flagship titles thrive with new gameplay modes, while NetEase's new game struggles with declining popularity and late releases impacting...

Alibaba's Tmall reports growth, expands delivery services, and launches AI-based store management tool.NetEase's Mobile Game Announces Shutdown

Overseas travel for national holidays on the rise, signaling potential end to consumption downgrading. PDD announces support plan for quality...