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>On November 22nd, 2023 local Chinese media reported that Pinduoduo began hiring researchers/engineers for its large language model (LLM) on its recruitment website and other staffing channels.</li>
<li>According to reports, PDD is in the process of hiring researchers to build its new LLM tool to make AI functionality available for customer service on Temu.</li>
<li>Reminder that Temu is responsible for handling post sales services under a “fully managed” business model, which is currently out-sourced to a customer service center.</li>
</ul>


On November 22nd, 2023 local Chinese media reported that Pinduoduo began hiring researchers/engineers for its large language model (LLM) on its recruitment website and other staffing channels.
According to reports, PDD is in the process of hiring researchers to build its new LLM tool to make AI functionality available for customer service on Temu.
Reminder that Temu is responsible for handling post sales services under a “fully managed” business model, which is currently out-sourced to a customer service center.


[Blue Lotus Daily - TMT Update] PDD: PDD Begins Hiring Staff to Train LLM for Temu Customer Service

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>In 3Q23, total revenue surged by 94% YoY, as Temu started operations in nine European countries in August.</li>
<li>Operating profits increased by 60% YoY in 3Q23, so we believe overseas businesses have made profits.</li>
<li>The stock price reached our last target, but we believe there is still an upside of 40% for 2024.</li>
</ul>


In 3Q23, total revenue surged by 94% YoY, as Temu started operations in nine European countries in August.
Operating profits increased by 60% YoY in 3Q23, so we believe overseas businesses have made profits.
The stock price reached our last target, but we believe there is still an upside of 40% for 2024.


PDD (PDD US): 3Q23, Grew Dramatically Overseas, Still Upside After Reaching Our Last Target

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/zeekr-intelligent-technology-holding" target="_blank" data-smartkarma-citation="entities:36785:1" rel="noopener">ZEEKR (ZK US)</a>, a premium EV brand by <a href="https://www.smartkarma.com/entities/geely-automobile-holdings-ltd" target="_blank" data-smartkarma-citation="entities:127:1" rel="noopener">Geely Auto (175 HK)</a>, aims to raise around US$500m in its US listing.</li>
<li>Zeekr was formed in Mar 2021 as a JV between Geely and its founder. Its first model was launched in Apr 21 with deliveries starting in Oct 21.</li>
<li>We have looked at the company’s past performance and valuations in our earlier notes. In this note, we talk about the updates from its recent filings.</li>
</ul>



ZEEKR (ZK US), a premium EV brand by Geely Auto (175 HK), aims to raise around US$500m in its US listing.
Zeekr was formed in Mar 2021 as a JV between Geely and its founder. Its first model was launched in Apr 21 with deliveries starting in Oct 21.
We have looked at the company’s past performance and valuations in our earlier notes. In this note, we talk about the updates from its recent filings.


Zeekr Pre-IPO - Quick Note - Recent Filing Updates - 007, Earnings on Track

Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Tracking Traffic

Focusing on Asian logistics, transportation, and travel companies

<ul>
<li>October's industry numbers hide pricing turmoil seen at company level</li>
<li>STO Express appears to be using price to gain share from Yunda, others</li>
<li>We believe price competition continues to hurt 'ground' express margins</li>
</ul>


October's industry numbers hide pricing turmoil seen at company level
STO Express appears to be using price to gain share from Yunda, others
We believe price competition continues to hurt 'ground' express margins


Monthly Chinese Express Tracker | Q3 Margins Battered By Price | More to Come in Q4 (November 2023)

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>The December rebalance of the <a href="https://www.smartkarma.com/entities/kraneshares-csi-china-internet-etf" target="_blank" data-smartkarma-citation="entities:28208:1" rel="noopener">KraneShares CSI China Internet ETF (KWEB US)</a> will take place at the close of trading on 8 December.</li>
<li>
<a href="https://www.smartkarma.com/entities/fenbi-ltd" target="_blank" data-smartkarma-citation="entities:36640:1" rel="noopener">Fenbi Ltd (2469 HK)</a> and <a href="https://www.smartkarma.com/entities/ysb-inc" target="_blank" data-smartkarma-citation="entities:35982:1" rel="noopener">YSB (9885 HK)</a> will be added to the index and there are no deletions.</li>
<li>There is a big lock-up expiry in <a href="https://www.smartkarma.com/entities/ysb-inc" target="_blank" data-smartkarma-citation="entities:35982:1" rel="noopener">YSB (9885 HK)</a> soon after the index inclusion and this could be an opportunity to access liquidity in the stock.</li>
</ul>


The December rebalance of the KraneShares CSI China Internet ETF (KWEB US) will take place at the close of trading on 8 December.

Fenbi Ltd (2469 HK) and YSB (9885 HK) will be added to the index and there are no deletions.
There is a big lock-up expiry in YSB (9885 HK) soon after the index inclusion and this could be an opportunity to access liquidity in the stock.


KWEB Index Rebalance: Fenbi (2469 HK) & YSB (9885 HK) Added

China

PDD Holdings Inc. is a multinational commerce group that owns and operates a portfolio of businesses. The Company focuses on digital economy so that local communities and small businesses can benefit from the increased productivity and new opportunities. PDD Holdings has built a network of sourcing, logistics, and fulfillment capabilities for its underlying businesses.

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PDD Holdings (PDD US)

[Blue Lotus Daily - TMT Update] PDD: PDD Begins Hiring Staff to Train LLM for Temu Customer Service

Chinese e-commerce giant Pinduoduo is hiring researchers to develop a large language model (LLM) for AI customer service on its platform Temu.

Blue Lotus Research Institute

PDD (PDD US): 3Q23, Grew Dramatically Overseas, Still Upside After Reaching Our Last Target

In 3Q23, total revenue surged by 94% YoY, as Temu expanded in Europe. Operating profits increased by 60% YoY in 3Q23. The stock price reached our...

Ming Lu

Zeekr Pre-IPO - Quick Note - Recent Filing Updates - 007, Earnings on Track

ZEEKR (ZK US), a premium EV brand by Geely Auto (175 HK), aims to raise around US$500m in its US listing. In this note, we talk about the updates...

Sumeet Singh

Monthly Chinese Express Tracker | Q3 Margins Battered By Price | More to Come in Q4 (November 2023)

Companies focused on China's domestic 'ground' express continued to experience price pressures in October. These pressures will continue in the...

Tracking Traffic

KWEB Index Rebalance: Fenbi (2469 HK) & YSB (9885 HK) Added

Fenbi and YSB will be bought by the KWEB ETF at the close on 8 December. Fenbi also has some passive inflows at month end. YSB has a big lock up...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

[Blue Lotus Daily - TMT Update] PDD: PDD Begins Hiring Staff to Train LLM for Temu Customer Service

​Chinese e-commerce giant Pinduoduo is hiring researchers to develop a large language model (LLM) for AI customer service on its platform Temu.

Blue Lotus Research Institute

PDD (PDD US): 3Q23, Grew Dramatically Overseas, Still Upside After Reaching Our Last Target

In 3Q23, total revenue surged by 94% YoY, as Temu expanded in Europe. Operating profits increased by 60% YoY in 3Q23. The stock price reached our...

Ming Lu

Zeekr Pre-IPO - Quick Note - Recent Filing Updates - 007, Earnings on Track

ZEEKR (ZK US), a premium EV brand by Geely Auto (175 HK), aims to raise around US$500m in its US listing. In this note, we talk about the updates...

Sumeet Singh

Monthly Chinese Express Tracker | Q3 Margins Battered By Price | More to Come in Q4 (November 2023)

Companies focused on China's domestic 'ground' express continued to experience price pressures in October. These pressures will continue in the...

Tracking Traffic

KWEB Index Rebalance: Fenbi (2469 HK) & YSB (9885 HK) Added

Fenbi and YSB will be bought by the KWEB ETF at the close on 8 December. Fenbi also has some passive inflows at month end. YSB has a big lock up...

Brian Freitas

Chinese e-commerce giant Pinduoduo is hiring researchers to develop a large language model (LLM) for AI customer service on its platform Temu.