China/Asia TMT

Shawn Yang

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>3690.HK/BABA/JD/DADA/DDL/9699.HK: Douyin adds a more prominent entrance for its 1-hr delivery supermarket feature (-/-/-/-/+)</li>
<li>Kanzhun Limited: No signal for rebound in job market in China yet</li>
<li>700 HK： QQ Browser today announced the launch of the "PDF Reading Assistant" , which uses Tencent's own LLM Hunyuan to assist users.（/）</li>
</ul>


3690.HK/BABA/JD/DADA/DDL/9699.HK: Douyin adds a more prominent entrance for its 1-hr delivery supermarket feature (-/-/-/-/+)
Kanzhun Limited: No signal for rebound in job market in China yet
700 HK： QQ Browser today announced the launch of the "PDF Reading Assistant" , which uses Tencent's own LLM Hunyuan to assist users.（/）


China TMT Update-Oct.14-3690.HK/BABA/JD/DADA/DDL/9699.HK/Kanzhun/700.HK/CPNG:Douyin 1-Hr Delivery

<ul>
<li>KE Holdings Inc: Beike is going to acquire the home renovation company “iKongjian” on RMB1.55bn</li>
<li>Futu Holdings: Futu Japan app’s MAU increase rapidly, then monetization pace is the key</li>
<li>BABA： Alibaba's Lazada waived seller fees to take back merchants from TikTok Shop（+）</li>
</ul>


KE Holdings Inc: Beike is going to acquire the home renovation company “iKongjian” on RMB1.55bn
Futu Holdings: Futu Japan app’s MAU increase rapidly, then monetization pace is the key
BABA： Alibaba's Lazada waived seller fees to take back merchants from TikTok Shop（+）


China TMT Update-Oct.13-KE/FUTU/BABA- Beike Acquires “iKongjian”/Futu Japan MAU/Lazada Waived Fees

<ul>
<li>BABA：Taobao upgrades its membership program in preparation for 11.11（ / ）</li>
<li>BILI: Bilibili Reiterates User Growth Goal: Doubling Mobile DAU( / ) </li>
<li>U: Unity CEO Resigns After the Runtime Fees Incident ( + )</li>
</ul>


BABA：Taobao upgrades its membership program in preparation for 11.11（ / ）
BILI: Bilibili Reiterates User Growth Goal: Doubling Mobile DAU( / ) 
U: Unity CEO Resigns After the Runtime Fees Incident ( + )


CHina TMT Update Oct.12-Pt.2-BABA/BILI/U:：Taobao Upgrades Membership/Bilibili Aims to Double DAU

<ul>
<li>PDD/BABA/4385JP：TikTok Shop US opened up, initial target categories in Mercari, ETSY and eBay（/）</li>
<li>BABA ：rumor says Taobao/Tmall looking to shuffle CEO（ / ）</li>
<li>LI/NIO/XPEV: AITO’s sales performance during the National Day holiday see good performance（-）</li>
</ul>


PDD/BABA/4385JP：TikTok Shop US opened up, initial target categories in Mercari, ETSY and eBay（/）
BABA ：rumor says Taobao/Tmall looking to shuffle CEO（ / ）
LI/NIO/XPEV: AITO’s sales performance during the National Day holiday see good performance（-）


China TMT Update Oct.12-Pdd/Baba/4385jp/BABA/LI/NIO/XPEV-TikTok Shop US/Taobao Management Change

<ul>
<li>We view the recent cooperation between Alimama and Tencent a true change that both parties need to enter a new paradigm of business priorities in China Internet;</li>
<li>Middle-Sized social/video companies like Kuaishou and Bilibili have historically exploited the disconnect between Alibaba’s e-commerce merchandise shelf and Tencent’s advertising inventory. This opportunity is diminishing;</li>
<li>We raised Tencent's TP by 4% to HK$417 while keeping Alibaba unchanged. We cut Kuaishou and Bilibili’s TP by 8% and 3% and maintain SELL.</li>
</ul>


We view the recent cooperation between Alimama and Tencent a true change that both parties need to enter a new paradigm of business priorities in China Internet;
Middle-Sized social/video companies like Kuaishou and Bilibili have historically exploited the disconnect between Alibaba’s e-commerce merchandise shelf and Tencent’s advertising inventory. This opportunity is diminishing;
We raised Tencent's TP by 4% to HK$417 while keeping Alibaba unchanged. We cut Kuaishou and Bilibili’s TP by 8% and 3% and maintain SELL.


[Blue Lotus Internet Sector Update]: Increasing Marginalization of Middle-Sized Companies

Shawn has extensive experience in internet industry.