Core Viewpoint - Lalamove, under the parent company "Lala Technology," has shown significant growth in revenue and order volume in the first half of 2025, despite a declining monetization rate in its core Chinese market [2][3]. Financial Performance - In the first half of 2025, Lalamove achieved revenue of $935 million, a year-on-year increase of 31.8%, with over 455 million completed orders, reflecting a 34% growth [2][3]. - The global transaction value reached $5.967 billion, marking a 17.7% increase compared to the previous year [3]. - Adjusted profit for the same period was $272 million, with corporate income tax paid amounting to $37.72 million, up from the previous year [3]. Market Position - Lalamove operates in over 400 cities across 14 markets globally, maintaining its position as the largest logistics platform by transaction value in the first half of 2025 [3]. - The average monthly active merchants reached 19.7 million, with approximately 2 million active drivers [3]. Monetization Rate - The monetization rate for Lalamove's freight platform services in mainland China dropped to 9.2% in the first half of 2025, continuing a three-year decline from 10.3% in 2023 [4][5]. - This decline in monetization rate has resulted in a significant revenue loss, estimated at nearly $50 million compared to 2023 levels [5]. International Expansion - Lalamove has been expanding its business into Southeast Asia and Latin America since 2014, successfully replicating its business model in new markets [9]. - The overseas market accounted for 9.5% of total revenue in the first half of 2025, with significant growth potential as the global road freight market increasingly adopts digital platforms [10]. Cost Reduction Strategies - The decline in monetization rate is attributed to ongoing fee reductions and commission cuts for drivers, initiated in 2024, which have impacted revenue growth [7][8]. - Lalamove has committed to enhancing driver welfare, including lowering commission rates and expanding insurance coverage for drivers [8].

Core Viewpoint - HuoLaLa (listed entity "Lala Technology") updated its prospectus to the Hong Kong Stock Exchange, indicating significant growth in revenue and order volume for the first half of 2025, despite a declining monetization rate in its freight platform services in mainland China [1][2]. Financial Performance - In the first half of 2025, HuoLaLa achieved revenue of $935 million, representing a year-on-year growth of 31.80% [1]. - The total number of orders facilitated exceeded 455 million, marking a year-on-year increase of 34% [1]. - The global Gross Transaction Value (GTV) reached $5.967 billion in the first half of 2025, up 17.7% year-on-year [1]. Operational Metrics - The monetization rate of HuoLaLa's freight platform services in mainland China has been declining for three consecutive years, dropping from 10.3% in 2023 to 9.2% in the first half of 2025 [1][2]. - The average monthly active merchants increased from 10.4 million in 2022 to a projected 19.7 million in 2025 [2]. - The average monthly active drivers rose from 916.5 thousand in 2022 to an expected 1.960.1 thousand in 2025 [2]. Market Segmentation - The freight GTV in mainland China is projected to grow from $6.208 billion in 2022 to $9.444 billion in 2025 [2]. - The completed orders in mainland China are expected to increase from 326 million in 2022 to 608 million in 2025 [2]. - The freight platform service monetization rate in overseas markets is projected to remain stable, increasing slightly from 14.6% in 2022 to 15.9% in 2025 [2].

Industry Rating - The industry investment rating is maintained at "Outperform" [1] Core Insights - High-growth companies in ride-hailing, digital freight, and instant delivery platforms are expected to deliver significant returns, with business volume and revenue growth around 20% and operating profits increasing substantially [3][4] - As competition stabilizes, operating leverage will lead to greater growth in operating profits, with companies like Manbang Group and Meituan projected to see substantial profit increases in 2024 [4][5] - The rising penetration rates in ride-hailing, digital freight, and instant delivery are expected to drive revenue and gross profit growth of approximately 30% for leading companies in 2024 [5] Summary by Sections Growth Logic - Revenue growth and declining expense ratios are key drivers for profit growth, with companies like Manbang Group benefiting from rapid revenue increases and improved monetization rates [14][17] - The report highlights that the faster the revenue growth and the quicker the expense ratio declines, the more significant the profit growth potential [16] High Growth in Leading Companies - In 2024, leading companies in ride-hailing, freight platforms, and instant delivery are expected to see high growth in operating profits, with Didi Chuxing turning profitable [19][23] - The operating profit growth rates for these companies are significantly higher than their gross profit growth rates, indicating effective cost management [23] Operating Leverage - The report notes that the increase in operating profit growth is due to a decrease in sales, management, and R&D expense ratios, showcasing the effect of operating leverage [28][31] - As leading companies solidify their market positions, their expense ratios are expected to stabilize, further enhancing profit margins [28][46] Revenue and Market Penetration - The revenue growth for leading companies is primarily driven by increases in business volume, with many companies outpacing industry growth rates [39][41] - The rising market penetration rates in various segments, such as ride-hailing and digital freight, are contributing to revenue growth exceeding overall market growth [44] Monetization Rates - Manbang Group's monetization rate is on the rise, which is expected to accelerate revenue growth compared to competitors whose monetization rates are stabilizing [49]

Industry Rating - The industry investment rating is maintained at "Outperform" [1] Core Insights - High-growth companies in ride-hailing, digital freight, and instant delivery platforms are expected to achieve revenue growth of around 20%, with operating profits increasing significantly. Companies like Manbang Group and Meituan are projected to have a PE ratio below 20 times in 2025, making them attractive investments [3] - As the competitive landscape stabilizes, stable sales, management, and R&D expenses are expected to lead to substantial growth in operating profits. Companies like Manbang Group, Meituan, and SF Express are anticipated to see their operating profits double in 2024, with continued rapid growth thereafter [4] - The rising penetration rates in ride-hailing, digital freight, and instant delivery are expected to drive revenue and gross profit growth of around 30% for companies like Manbang Group, Meituan, and SF Express in 2024. Manbang Group's monetization rate is expected to increase, leading to a gross profit growth rate of 42% in 2024 [5] Summary by Sections Growth Logic - The growth in profits is driven by revenue growth, market expansion, and decreasing expense ratios. Companies with faster revenue growth and declining expense ratios are likely to see quicker profit growth, particularly in the cross-city digital freight sector, where Manbang Group is expected to experience high profit growth [14][16][17] High Growth in Express Delivery, Ride-Hailing, and International Air Transport - In early 2025, most transportation modes are experiencing low growth in volume, while international air transport, express delivery, and ride-hailing are seeing faster growth [11] Head Companies' Profit Growth - In 2024, leading companies in ride-hailing, freight platforms, and instant delivery are expected to see high growth in operating profits, with Didi Chuxing turning profitable. The gross profits of these companies are also expected to grow, although at a slower rate than operating profits [23] Operating Leverage - The increase in operating profit growth is attributed to a decline in sales, management, and R&D expense ratios, which enhances operating profit margins. As leading companies solidify their positions, these expenses are expected to stabilize [28][31] Revenue Growth Driven by Business Volume - The revenue growth of leading companies is primarily driven by an increase in business volume, with many companies expected to outpace industry growth rates in 2024 [39][41] Market Penetration Rate Increase - The market penetration rates for various sectors are on the rise, leading to revenue growth that exceeds overall market growth. This trend is particularly evident in ride-hailing, digital freight, and instant delivery sectors [44] Monetization Rate - Manbang Group's monetization rate is significantly increasing, contributing to faster revenue growth compared to competitors like Uber and Didi Chuxing, whose monetization rates are stabilizing [49]

Core Viewpoint - Sea's Q4 2024 financial report shows strong growth and profit improvement in the e-commerce segment, but underlying operational indicators in gaming and financial sectors reveal potential risks [1][2][4]. E-commerce Segment - The GMV for Shopee reached $28.6 billion, a year-on-year increase of nearly 24%, significantly exceeding the market expectation of 18% [12][14]. - The order volume grew by 20% year-on-year, although it showed a sequential decline of 4 percentage points, while the average transaction value increased by 3% [13][14]. - Shopee's revenue grew by 41% year-on-year, surpassing the market expectation of 35% [14][25]. - The monetization rate for Shopee increased by only 0.1 percentage points, the smallest increase since Q4 2023, but the high-margin marketplace monetization rate rose by 0.4 percentage points [2][15]. Financial Services Segment - The outstanding loan balance for SeaMoney reached $5.1 billion, a 64% year-on-year increase, but below the expected $5.44 billion [17]. - Revenue from the financial services segment surged by 55% year-on-year, significantly exceeding the market expectation of 36% [17][24]. - The bad debt ratio remained stable at 1.2%, indicating steady credit quality [17]. Gaming Segment - Active users in the gaming segment decreased to approximately 620 million, with paying users at 50 million, both below market expectations [18][19]. - The average revenue per user declined by 6% year-on-year, contributing to a slowdown in revenue growth [19][20]. - Despite a 19% year-on-year revenue growth, the gaming segment's operational indicators suggest a weakening ecosystem [19][20]. Profitability and Expenses - The e-commerce segment achieved an operating profit of approximately $80 million, significantly above the expected $20 million, with an operating margin of 2.2% [23][24]. - The DFS financial segment reported an operating profit of $198 million, below the expected $230 million, with a profit margin of 27% [23][24]. - Overall, Sea's total revenue reached $4.95 billion, a 37% year-on-year increase, with a gross margin improvement from 43% to 45% [4][25][27]. - Total operating expenses increased by 19% year-on-year, with marketing expenses rising significantly, particularly in the gaming and financial segments [26][27]. Market Valuation and Future Outlook - The market currently values Sea at a PE ratio of over 30x for fiscal year 2026, reflecting expectations of continued profit growth of 20%-30% [7][8]. - The e-commerce segment's valuation is slightly below $50 billion, with expectations of achieving over $1.5 billion in adjusted EBITDA by 2026 [7][8]. - The financial services segment is seen as a potential undervalued growth area, with expectations of achieving around $1 billion in adjusted EBITDA by 2026 [8][9].