President, Vision Research

Robert C Prather Jr

President

Vision Research

Vision Research was formed in 2004 with the vision of generating the best possible fundamental analysis and investment research for smid cap US equities. In 2008, we broadened our coverage to include mid/large cap US stocks.  After researching a  few ideas outside the US each year for a number of years, we launched a dedicated non-US equity product at the end of 2015.  This was followed by the introduction of a product focused on IPOs in mid-2017.

Fundamental Insight

Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/amazon-com-inc" target="_blank" data-smartkarma-citation="entities:409:1" rel="noopener">Amazon.com Inc (AMZN US) </a>officially launched its business in Poland this month, posing significant competition for Allegro.eu (also amidst increasing competition from <a href="https://www.smartkarma.com/entities/alibaba-group" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group (9988 HK)</a> ) and causing Allegro.eu to provide muted guidance for 2021 in early March.  Subsequently, on March 16th, insiders announced the sale of approximately $1.3bn in shares at a discount to the current price and just ahead of the April 2021 IPO lock up expiration.</p>

Amazon.com Inc (AMZN US) officially launched its business in Poland this month, posing significant competition for Allegro.eu (also amidst increasing competition from Alibaba Group (9988 HK) ) and causing Allegro.eu to provide muted guidance for 2021 in early March.  Subsequently, on March 16th, insiders announced the sale of approximately $1.3bn in shares at a discount to the current price and just ahead of the April 2021 IPO lock up expiration.

Allegro.eu (ALE PW): Insiders Dump $1.3bn Ahead of Lockup Expiration and After Amazon Entry

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

Zhihu Technology / Equity Capital Markets

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<p><a href="https://www.smartkarma.com/entities/zhihu-technology-ltd" target="_blank" data-smartkarma-citation="entities:32185:1" rel="noopener">Zhihu Technology (ZH US)</a> is getting ready to complete its IPO in the New York Stock Exchange in the next several weeks. Zhihu has a similar business model as Quora where millions of people ask questions and exchange their views and experiences. Zhihu has become the largest online question and answer community in China. In August 2019, Zhihu received $434 million in funding from leading investors including Baidu and Kuaishou Technology, valuing the company at $3.5 billion.</p>
<p>The company generated a strong sales growth of 101.7% YoY to reach 1,352.2 million RMB in 2020. Operating margins also improved from -157.9% in 2019 to -44.6% in 2020, which was driven by significant improvement in the company's operating leverage. Operating expenses as a percentage of revenue declined from 204.4% in 2019 to 100.6% in 2020. </p>
<p>Paid memberships represented 13.1% of total revenues in 2019, which increased to 23.7% of total revenues in 2020. Average monthly members jumped by 311.5% YoY to 2.36 million in 2020, which is a testament of an increasing number of customers that value the premium contents available on Zhihu. </p>
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Zhihu Technology (ZH US) is getting ready to complete its IPO in the New York Stock Exchange in the next several weeks. Zhihu has a similar business model as Quora where millions of people ask questions and exchange their views and experiences. Zhihu has become the largest online question and answer community in China. In August 2019, Zhihu received $434 million in funding from leading investors including Baidu and Kuaishou Technology, valuing the company at $3.5 billion.
The company generated a strong sales growth of 101.7% YoY to reach 1,352.2 million RMB in 2020. Operating margins also improved from -157.9% in 2019 to -44.6% in 2020, which was driven by significant improvement in the company's operating leverage. Operating expenses as a percentage of revenue declined from 204.4% in 2019 to 100.6% in 2020. 
Paid memberships represented 13.1% of total revenues in 2019, which increased to 23.7% of total revenues in 2020. Average monthly members jumped by 311.5% YoY to 2.36 million in 2020, which is a testament of an increasing number of customers that value the premium contents available on Zhihu. 



Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<div><p>Bilibili plans to raise around US$3bn in its secondary listing in Hong Kong. </p></div><div><p>We have covered the background of the deal in our earlier notes, <a href="https://www.smartkarma.com/insights/bilibili-secondary-listing-early-look-will-probably-be-more-like-jd-and-netease" target="_blank" rel="noopener">Bilibili Secondary Listing Early Look - Will Probably Be More like JD and NetEase</a> and <a href="https://www.smartkarma.com/insights/bilibili-secondary-listing-early-look-4q20-results-quick-note" target="_blank" rel="noopener">Bilibili Secondary Listing Early Look - 4Q20 Results Quick Note</a>.</p></div><div><p>In this note, we'll touch upon the updates since our last note.</p></div>

Bilibili plans to raise around US$3bn in its secondary listing in Hong Kong. We have covered the background of the deal in our earlier notes, Bilibili Secondary Listing Early Look - Will Probably Be More like JD and NetEase and Bilibili Secondary Listing Early Look - 4Q20 Results Quick Note.In this note, we'll touch upon the updates since our last note.

Bilibili Secondary Listing - Volatile but Should Be Hot

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<p><a href="https://www.smartkarma.com/entities/bilibili-inc" target="_blank" data-smartkarma-citation="entities:26793:1" rel="noopener">Bilibili Inc (BILI US)</a> is a Chinese online video platform themed around anime, manga, and game fandom and targeted at the young generations in China. Bilibili ranked top five in terms of brand awareness in Gen Z+ users among video-centric platforms in China in 2020, according to iResearch. Bilibili passed its Hong Kong listing committee hearing and could raise up to $3 billion through a secondary listing, according to press reports. </p><p>Bilibili’s focus on Gen Z+ users allows it to benefit from their growing consumption needs in conjunction with their increasing spending power. Bilibili is one of the fastest-growing major Chinese internet companies. The revenue growth is increasingly fuelled by the creation of more consumption scenarios and higher paying user conversion. Largely due to the high growth narrative, Bilibili gets a free pass from investors on the widening losses and FCF burn. Nevertheless, Bilibili’s ambition is to deliver operating leverage and FCF generation over the medium-term, which is reflected in consensus estimates. </p><div class="content-highlight"><p>Overall, Bilibili has made great strides in expanding its user base (Gen Z to Gen Z+) and subsequently monetising this expanded user base through the diversification of its revenue streams and lowering its reliance on key games titles. The top-line metrics are strong, and the bottom-line metrics will likely improve in the medium term, in our view. Overall, we believe that Bilibili is fairly valued at the last close, and would look at any share price weakness to add/build a position. </p></div>

Bilibili Inc (BILI US) is a Chinese online video platform themed around anime, manga, and game fandom and targeted at the young generations in China. Bilibili ranked top five in terms of brand awareness in Gen Z+ users among video-centric platforms in China in 2020, according to iResearch. Bilibili passed its Hong Kong listing committee hearing and could raise up to $3 billion through a secondary listing, according to press reports. Bilibili’s focus on Gen Z+ users allows it to benefit from their growing consumption needs in conjunction with their increasing spending power. Bilibili is one of the fastest-growing major Chinese internet companies. The revenue growth is increasingly fuelled by the creation of more consumption scenarios and higher paying user conversion. Largely due to the high growth narrative, Bilibili gets a free pass from investors on the widening losses and FCF burn. Nevertheless, Bilibili’s ambition is to deliver operating leverage and FCF generation over the medium-term, which is reflected in consensus estimates. Overall, Bilibili has made great strides in expanding its user base (Gen Z to Gen Z+) and subsequently monetising this expanded user base through the diversification of its revenue streams and lowering its reliance on key games titles. The top-line metrics are strong, and the bottom-line metrics will likely improve in the medium term, in our view. Overall, we believe that Bilibili is fairly valued at the last close, and would look at any share price weakness to add/build a position. 

Bilibili Secondary Listing: A Big-Sum Game

Equity Analyst, LightStream Research

Oshadhi Kumarasiri

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Alibaba Group Holding  / Equity Bottom-Up

<p>Just when you start to think that the friction between <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba Group (BABA US)</a> and the Chinese government may have started settling down, the Chinese government dropped another bomb yesterday by asking <a href="https://www.smartkarma.com/entities/alibaba-group" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group (9988 HK)</a> to dispose its media businesses.</p><p>This news comes four days after the resignation of <a href="https://www.smartkarma.com/entities/ant-group-co-ltd" target="_blank" data-smartkarma-citation="entities:24240:1" rel="noopener">Ant Financial Services Group (6688 HK)</a> CEO, Mr. Simon Hu, on personal grounds, just over a month after Ant Group’s proposal to restructure Ant Group into financial holding company, which would be overseen by China's central bank. The latest decision by the government indicates that they are not done curbing Alibaba’s and Jack Ma's powers.</p>

Just when you start to think that the friction between Alibaba Group (BABA US) and the Chinese government may have started settling down, the Chinese government dropped another bomb yesterday by asking Alibaba Group (9988 HK) to dispose its media businesses.This news comes four days after the resignation of Ant Financial Services Group (6688 HK) CEO, Mr. Simon Hu, on personal grounds, just over a month after Ant Group’s proposal to restructure Ant Group into financial holding company, which would be overseen by China's central bank. The latest decision by the government indicates that they are not done curbing Alibaba’s and Jack Ma's powers.

Xi & The Communist Party Is Not Done With Alibaba Yet

China

Alibaba Group Holding Limited provides online sales services. The Company provides internet infrastructure, electronic commerce, online financial, and internet content services through its subsidiaries. Alibaba Group Holding offers its products and services worldwide.

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Alibaba Group Holding (9988 HK)

Allegro.eu (ALE PW): Insiders Dump $1.3bn Ahead of Lockup Expiration and After Amazon Entry

Why are insiders dumping stock at a discount prior to the IPO lock-up expiration and shortly after Amazon's official entry?

Robert C Prather Jr

Zhihu IPO Preview - China's Quora

Zhihu is getting ready to complete an IPO on the New York Stock Exchange in the next few weeks. Zhihu is China's version of Quora. Zhihu's sales...

Douglas Kim

Bilibili Secondary Listing - Volatile but Should Be Hot

Bilibili plans to raise around US$3bn in its secondary listing in Hong Kong. We have covered the background of the deal in our earlier notes. In...

Sumeet Singh

Bilibili Secondary Listing: A Big-Sum Game

Bilibili could raise up to $3 bn through a secondary listing, according to press reports. It is fairly valued at the last close and would look at...

Arun George

Xi & The Communist Party Is Not Done With Alibaba Yet

Just when you start to think that the friction between Alibaba and the Chinese government may have started settling down, the Chinese government...

Oshadhi Kumarasiri

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