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>New smartphone trade-in subsidy received raving response from Chinese consumers;</li>
<li>Tencent and NetEase gained key game title approvals. Entertainment is a good choice in uncertain environment of 2025;</li>
<li>From a slight moderating C4Q24, we expect strong showing in domestic travel demand heading into CNY.</li>
</ul>


New smartphone trade-in subsidy received raving response from Chinese consumers;
Tencent and NetEase gained key game title approvals. Entertainment is a good choice in uncertain environment of 2025;
From a slight moderating C4Q24, we expect strong showing in domestic travel demand heading into CNY.


[Blue Lotus Non-US Internet Weekly, 4/52]: Deepseek's Asked the Right Question on GAI Capex

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>Two years after most Covid restrictions ended, pace of travel recovery has slowed, naturally</li>
<li>Gov't estimates ahead of LNY travel period seem tepid, actual growth could exceed them</li>
<li>Trip.com has been stellar performer in segment, but in recent months airlines outperformed</li>
</ul>


Two years after most Covid restrictions ended, pace of travel recovery has slowed, naturally
Gov't estimates ahead of LNY travel period seem tepid, actual growth could exceed them
Trip.com has been stellar performer in segment, but in recent months airlines outperformed


Monthly Chinese Tourism Tracker | Dec & Q424 Numbers | Airlines Outperform Trip.com (January 2025)

<ul>
<li>This week, JD.com launched its social gift feature more tightly integrated with Weixin than Alibaba. We believe Tencent's social gift feature will mainly serve as an advertising layer within e-commerce;</li>
<li>Consumption data is so so and heavily reliant on subsidies. More service-subsidies are needed from the government; </li>
<li>Outbound travel likely to cede to domestic during this CNY, benefiting local hotel chains like Atour.</li>
</ul>


This week, JD.com launched its social gift feature more tightly integrated with Weixin than Alibaba. We believe Tencent's social gift feature will mainly serve as an advertising layer within e-commerce;
Consumption data is so so and heavily reliant on subsidies. More service-subsidies are needed from the government; 
Outbound travel likely to cede to domestic during this CNY, benefiting local hotel chains like Atour.


[Blue Lotus Non-US Internet Weekly, 3/52]: RedNote's Popularity Can Lift Other Boats Outside China

<ul>
<li>We believe Tencent's inclusion in the US DoD CMC List and removal from USTR's NML are both non-events in the long run but not in the short run;</li>
<li>Latest data in holiday travel, parcel volume and home sales painted robust start in 2025, but unstable equity market posts a looming threat;</li>
<li>NetEase's newly released games were well-received and above our expectations. New game pipeline also brightens outlook.</li>
</ul>


We believe Tencent's inclusion in the US DoD CMC List and removal from USTR's NML are both non-events in the long run but not in the short run;
Latest data in holiday travel, parcel volume and home sales painted robust start in 2025, but unstable equity market posts a looming threat;
NetEase's newly released games were well-received and above our expectations. New game pipeline also brightens outlook.


Blue Lotus Non-US Internet Weekly Wrap (2/2025): Tencent's Inclusion and Exclusion from US Sanctions

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

<ul>
<li>Mainland China investors continued to increase their purchases of Hong Kong shares through the southbound connect platform after Trump's win. Mainland investors bought a record HK$800B of HK shares in 2024.</li>
<li>
<a href="https://www.smartkarma.com/entities/weimob-inc" target="_blank" data-smartkarma-citation="entities:27394:1" rel="noopener">Weimob Inc. (2013 HK)</a> announced it is connecting its Weimob mini-programs to Tencent's (700 HK) WeChat mini-shop. This move further integrates the SaaS company into Tencent's ecosystem.
</li>
<li>
<a href="https://www.smartkarma.com/entities/wuxi-apptec" target="_blank" data-smartkarma-citation="entities:23679:1" rel="noopener">Wuxi Biologics (2269 HK)</a> announced a license agreement with US-based <a href="https://www.smartkarma.com/entities/aadi-bioscience-inc" target="_blank" data-smartkarma-citation="entities:37488:1" rel="noopener">Aadi Bioscience (AADI US)</a>.  Also, Wuxi was not included in the Senate version of the BioSecure legislation improving investor sentiment.
</li>
</ul>


Mainland China investors continued to increase their purchases of Hong Kong shares through the southbound connect platform after Trump's win. Mainland investors bought a record HK$800B of HK shares in 2024.

Weimob Inc. (2013 HK) announced it is connecting its Weimob mini-programs to Tencent's (700 HK) WeChat mini-shop. This move further integrates the SaaS company into Tencent's ecosystem.


Wuxi Biologics (2269 HK) announced a license agreement with US-based Aadi Bioscience (AADI US).  Also, Wuxi was not included in the Senate version of the BioSecure legislation improving investor sentiment.



The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (December 26)

China

Trip.com Group Limited provides online travel agency services. The Company offers mobile applications, hotel reservations, flight ticketing, package tours, corporate travel management, and train ticketing services. Trip.com Group provides services worldwide.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Trip.com Group (9961 HK)

[Blue Lotus Non-US Internet Weekly, 4/52]: Deepseek's Asked the Right Question on GAI Capex

Chinese consumers are excited about new smartphone trade-in subsidy, Tencent and NetEase secure game title approvals, and strong domestic travel...

Blue Lotus Research Institute

Monthly Chinese Tourism Tracker | Dec & Q424 Numbers | Airlines Outperform Trip.com (January 2025)

December 2024 travel growth moderated, as the post-pandemic recovery has by now largely run its course. After a stellar 2023-24 run, shares of...

Tracking Traffic

[Blue Lotus Non-US Internet Weekly, 3/52]: RedNote's Popularity Can Lift Other Boats Outside China

Consumption is still fragile with likely headwinds in January. More service subsidies are needed. RedNote's popularity signals more to come. US...

Blue Lotus Research Institute

Blue Lotus Non-US Internet Weekly Wrap (2/2025): Tencent's Inclusion and Exclusion from US Sanctions

Tencent's impact from CML and NML are short-term. Strong service start to 2025 showed promise. NetEase's games exceed expectations with promising...

Blue Lotus Research Institute

The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (December 26)

Mainland investors are increasing their buying of HK shares after Trump's election win. Mainlanders bought a record HK$800B of shares this year and...

David Mudd

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

[Blue Lotus Non-US Internet Weekly, 4/52]: Deepseek's Asked the Right Question on GAI Capex

​Chinese consumers are excited about new smartphone trade-in subsidy, Tencent and NetEase secure game title approvals, and strong domestic travel...

Blue Lotus Research Institute

Monthly Chinese Tourism Tracker | Dec & Q424 Numbers | Airlines Outperform Trip.com (January 2025)

December 2024 travel growth moderated, as the post-pandemic recovery has by now largely run its course. After a stellar 2023-24 run, shares of...

Tracking Traffic

[Blue Lotus Non-US Internet Weekly, 3/52]: RedNote's Popularity Can Lift Other Boats Outside China

Consumption is still fragile with likely headwinds in January. More service subsidies are needed. RedNote's popularity signals more to come. US...

Blue Lotus Research Institute

Blue Lotus Non-US Internet Weekly Wrap (2/2025): Tencent's Inclusion and Exclusion from US Sanctions

​Tencent's impact from CML and NML are short-term. Strong service start to 2025 showed promise. NetEase's games exceed expectations with promising...

Blue Lotus Research Institute

The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (December 26)

Mainland investors are increasing their buying of HK shares after Trump's election win. Mainlanders bought a record HK$800B of shares this year and...

David Mudd

Chinese consumers are excited about new smartphone trade-in subsidy, Tencent and NetEase secure game title approvals, and strong domestic travel...

Tencent's impact from CML and NML are short-term. Strong service start to 2025 showed promise. NetEase's games exceed expectations with promising...