Dim Sum Express

E-Commerce: E-commerce service industry overview; leading players becoming evenstronger.

    E-commerce service providers’ core competitiveness lies in their control of warehousing facilities andsupply chain management capabilities, as well as their ability to develop their own software systems.

    Overall, larger sized e-commerce service companies tend to have better business operations, highercustomer loyalty, more contracts from new clients, and more resources to be put into thedevelopment of both their core and potential businesses which helps set up tougher barriers tocompetition. In contrast, smaller companies tend to rely heavily on a single client and have loweroperational stability.

    Auto: PV sales growth accelerating; medium/heavy duty trucks maintaining strength.

    Overall auto sales volume picked up 14.8% YoY in June, with passenger vehicles up 21.6% andcommercial vehicles down 1.7%. Among passenger vehicles, SUVs and MPVs maintained relativelyhigh growth of 41.1% and 38.3% YoY respectively; sedans grew 9.3% while minivans fell 11.1%.

    Among commercial vehicles, medium and heavy duty trucks rose 16.9% while light trucks were down3.1%; the sales volume of medium and large buses went up 9.2% YoY. The gradual recovery inmedium and heavy duty truck sales was in line with our expectation. Please see text for our stockpicks.