Research on Tech Companies

Evelyn Zhang

Thematic (Sector/Industry)

<ul>
<li>It'll take another 3-5 years of further development for VR and AR products to reach the level of user experience and reduction in cost necessary for wide commercial adoption. </li>
<li>The emergence of blockbuster AAA content will aid the large-scale adoption of Metaverse hardware, user generated contents are much lower in development cost,  a trend pioneered by Roblox &amp;Epic Games.</li>
<li>A-Share listed companies mainly focus on hardware value chain. China's video game regulator hasn't approved any new titles since July 2021. Leading Chinese companies are focusing on the commercial application.  </li>
</ul>


It'll take another 3-5 years of further development for VR and AR products to reach the level of user experience and reduction in cost necessary for wide commercial adoption. 
The emergence of blockbuster AAA content will aid the large-scale adoption of Metaverse hardware, user generated contents are much lower in development cost,  a trend pioneered by Roblox &amp;Epic Games.
A-Share listed companies mainly focus on hardware value chain. China's video game regulator hasn't approved any new titles since July 2021. Leading Chinese companies are focusing on the commercial application.  


Virtual Smoke and Mirror—Vision to Reality

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.

Equity Capital Markets

<ul>
<li>Weibo raised around US$440m in its secondary listing in Hong Kong.</li>
<li>We have covered most aspects of the deal in our previous notes, see <a href="https://www.smartkarma.com/insights/weibo-secondary-listing-needs-to-come-at-a-discount" target="_blank" rel="noopener">here</a> and <a href="https://www.smartkarma.com/insights/weibo-secondary-listing-going-down-the-autohome-route" target="_blank" rel="noopener">here</a>.</li>
<li>In this note, we'll talk about the allocation results and the trading dynamics.</li>
</ul>


Weibo raised around US$440m in its secondary listing in Hong Kong.
We have covered most aspects of the deal in our previous notes, see here and here.
In this note, we'll talk about the allocation results and the trading dynamics.


Weibo Secondary Trading - Delivered a Good Correction but Got Caught in the Wider Rout

<ul>
<li>Kanzhun, an online recruitment platform in China, raised around US$1bn in its US IPO in Jun 2021.</li>
<li>The company is backed by Tencent and pre-IPO financial investors own over 50% of the company.</li>
<li>In this note, we look at the updates since listing and the impact of the upcoming lock-up expiry.</li>
</ul>


Kanzhun, an online recruitment platform in China, raised around US$1bn in its US IPO in Jun 2021.
The company is backed by Tencent and pre-IPO financial investors own over 50% of the company.
In this note, we look at the updates since listing and the impact of the upcoming lock-up expiry.


Kanzhun Lock-Up - Has Held up Remarkably Well with All Pre-IPO Shareholders Well in the Money

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.

Equity Bottom-Up

Alibaba Group Holding  / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/alibaba-group" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group (9988 HK)</a>’s decision to replace the long time CFO Maggie Wu doesn’t seem like a reason for investors to panic sell.</li>
<li>She will continue to serve the company as an executive director and continue to be involved in the business.</li>
<li>Also, the fact that she is replaced by her protégé, Toby Xu seems like an indication that the top management is still happy with how financials are handled.</li>
</ul>



Alibaba Group (9988 HK)’s decision to replace the long time CFO Maggie Wu doesn’t seem like a reason for investors to panic sell.
She will continue to serve the company as an executive director and continue to be involved in the business.
Also, the fact that she is replaced by her protégé, Toby Xu seems like an indication that the top management is still happy with how financials are handled.


Alibaba Management Shake-Up: Long-Time CFO Maggie Wu Replaced, No Panicking Necessary

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.

SenseTime Group  / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sensetime-group" target="_blank" data-smartkarma-citation="entities:34319:1" rel="noopener">SenseTime Group (1475539D HK)</a> is the largest AI software company in Asia as measured by revenue in 2020. It is set to launch an HKEx IPO to raise US$770 million.  </li>
<li>The fundamentals are mixed as high growth is accompanied by high customer concentration, an uncertain path to profitability, cash burn and moral concerns around “ethnic profiling software”. </li>
<li>Overall, we believe the negatives outweigh the positives and we would give the IPO a pass. </li>
</ul>



SenseTime Group (1475539D HK) is the largest AI software company in Asia as measured by revenue in 2020. It is set to launch an HKEx IPO to raise US$770 million.  
The fundamentals are mixed as high growth is accompanied by high customer concentration, an uncertain path to profitability, cash burn and moral concerns around “ethnic profiling software”. 
Overall, we believe the negatives outweigh the positives and we would give the IPO a pass. 


China

Baidu, Inc. operates an Internet search engine. The Company offers algorithmic search, enterprise search, news, MP3, and image searches, voice assistance, online storage, and navigation services. Baidu serves clients globally.

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Baidu (BIDU US)

Virtual Smoke and Mirror—Vision to Reality

The recent surge in Metaverse have brought VR & AR back into the focus of the market. So is the Metaverse finally ready for prime time or still a...

Evelyn Zhang

Weibo Secondary Trading - Delivered a Good Correction but Got Caught in the Wider Rout

Weibo raised around US$440m in its secondary listing in Hong Kong. In this note, we look at the allocation results and talk about the trading...

Sumeet Singh

Kanzhun Lock-Up - Has Held up Remarkably Well with All Pre-IPO Shareholders Well in the Money

Kanzhun, an online recruitment platform in China, raised around US$1bn in its US IPO in Jun 2021. In this note, we will talk about the upcoming...

Sumeet Singh

Alibaba Management Shake-Up: Long-Time CFO Maggie Wu Replaced, No Panicking Necessary

Maggie Wu is replaced by her protégé, Toby Xu. This seems like an indication that the top management is still happy with how financials are...

Oshadhi Kumarasiri

SenseTime IPO Initiation: Big Brother

SenseTime is set to launch an HKEx IPO to raise US$770 million. Overall, we believe the negatives outweigh the positives and we would give the IPO...

Arun George

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