Edison Lee

Hong Kong, Industrials, Telecommunications, Thematic

+852 3743 8009

Edison Lee has over 25 years of corporate finance, buy side and sell side Investment research experience. He joined Jefferies in 2016, initially focusing on telecoms, and later expanded into tech and software. He is currently Head of China/HK tech, telecom and software.

Thematic

What I am Known For

  • Focus on deep-dive research based on in-depth industry and tech knowledge
  • Focus on understanding the business models, entry barriers, pricing power and competitive dynamics, which drive our view on both near-term and long-term industry trends

How I am Different

  • Combine global sector, top-down and bottom-up views in our company research. Street leader in analyzing and forecasting development of US-China tech war, global smartphone development and Huawei’s localization progress.

Key Research Highlights

  • Deep Dive into Huawei’s Smartphone Strategies ( https://javatar.bluematrix.com/pdf/QB0zrkTo) 26 Feb 2024

Technology Semiconductors

What I am Known For

  • Not only focus on deep-dive research based on in-depth industry and tech knowledge, but also bottom-up company analysis, detailed models and be able to connect with macro views on gov policies and geopolitical development (US-China tech war).

How I am Different

  • Combine global sector, top-down and bottom-up views in our company research.
  • Street leader in analyzing and forecasting development of US-China tech war, global smartphone development and Huawei’s localization progress.
  • Timely upgrade of GDS by identifying cloud capex recovery of Chinese CSP customers and strong demand in Malaysia.
  • Maintain negative view on China software throughout 2024 on weak downstream demand and low investor appetite.
  • Street-first in identifying early signs of global smartphone recovery (Aug 2023).
  • Street-leading analysis of Huawei’s self-develped 7nm mobile SoC.
  • Street-first in calling the top of memory/smartphone component pricing in 3Q24).
  • Street-first in highlighting downside for global SPE players in 4Q24 due to China pull-in and potential escalation in US sanctions

Key Research Highlights

Upcoming Corporate & Strategic Access

  • China Semiconductor Localization Trip – Mar 2024.
  • China smartphone expert calls – Mar 2024.
  • China optical module expert call – Apr 2024.
  • China AI expert calls – July 2024.
  • China semi and hardware trip – Sep 2024

Technology IT Services & Software

What I am Known For

  • In-depth understanding of the entire digitization industry chain starting from telecom services, network technology, hardware/semi supply chain, data center development, industrial Internet development and software adoption.
  • Unique ability to understand the intersection of global geopolitics, tech standard development, China’s government policies, technological impact and competitive dynamics in China.
  • Focus on understanding the business models, entry barriers, pricing power and competitive dynamics, which drive our view on both near-term and long-term industry trends
  • Detailed, long-term financial models that incorporate all of the above

How I am Different

  • The “LDD” thematic (Localization, Digitization & De-carbonization) – We prefer Zhejiang Supcon and Baosight driven by decarbonization efforts, localization (Supcon), and customer M&A/consolidation (Baosight). We identified industrial software as a multi-year high-growth, but under-researched sub-sector that is poised to be significantly re-rated.
  • China’s ERP is also a play on “LDD,” we prefer Kingdee over Yonyou due to Kingdee’s faster cloud migration and better execution. Potential competition from Huawei’s self-developed ERP system would not cause material impact in our view.
  • Digitization, localization and tech advancement are the biggest drivers for financial IT industry. We prefer Hundsun due to its large and sticky user base and superior product and servicing capabilities.
  • China’s cybersecurity play – We believe VT would benefit from industry’s structural change leveraging strategic collaboration with China Mobile and comprehensive product lines. We expect CM contribution to grow at 47% and account for >40% of VT’s FY24 total rev, creating more certainty vs. peers.

Key Research Highlights

Upcoming Corporate & Strategic Access

  • Expert Call on BIOS/BMC – The Under-Researched Backbone of AI PCs and Servers 8 Oct 2024
  • Kingdee Post-2Q24 NDR meeting 20 Aug 2024
  • Hundsun Post-2Q24 NDR call 29 Aug 2024
  • China AI: Business Model, Monetization Roadmap & Impact of US Chip Restrictions 9 Jul 2024
  • Shanghai ERP Expert Day Jan 2024

Telecommunications

What I am Known For

  • Over 20 years of experience in covering the Asian/China telecommunications sector. Having been involved in the IPOs of all three Chinese telecommunication operators.
  • In-depth understanding of telecom technology, having analyzed the sector from the 2G era to the current 5G era.
  • Unique ability to understand the intersection of geopolitics, China’s government policies, technological impact and competitive dynamics in China.
  • Long-term sector knowledge and detailed modelling that incorporates key rev, cost and capex drivers.

How I am Different

  • The SOE ICT ecosystem and SOE reform to drive multi-year growth at telcos: We have been highlighting telcos’ growth in 5G industrial Internet is being under-estimated given gov push on digital transformation and creating the SOE ICT ecosystem (part of Xinchuang), and their big cost advantage over independent CSPs. The SOE reform this year takes a different shape to focus on valuation and ROE. Telcos’ re-rating is not yet done.
  • Recommend CCS and China Tower as telco ecosystem play: For those investors who cannot buy telcos, we recommend CCS and China Tower as proxies.

Key Research Highlights

Upcoming Corporate & Strategic Access

  • Conferences: China Mobile Post-Results Group Breakfast Meeting in Hong Kong with Dial-in Option (Aug 2024).
  • China Telecom In-Person Post Results Hong Kong NDR (Mar 2024).
  • China Communications Services (552 HK) Post Results In-Person Meetings (August 2024).