Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

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 Capital Markets

<a href="https://www.smartkarma.com/entities/yidu-tech-inc" target="_blank" data-smartkarma-citation="entities:29245:1" rel="noopener">Yidu Tech Inc (YID HK)</a>  is a big data and AI solutions provider for healthcare sector and the company was ranked no. 1 in terms of revenue among all healthcare big data solution providers in China in 2019.The company has filed for an IPO to list its shares on the Hong Kong Stock Exchange and the company has not yet set the terms for its IPO.The company generates a majority of its revenues from big data platform and solutions and the company’s revenues have grown significantly over the last three years. Though the company has not yet been able to make any operating profits, we have observed that the company’s operating losses as a % of revenue has declined over the period.China is the world’s second largest healthcare market and the country has been increasingly informatizing the healthcare system in order to improve the efficiency as well as close the huge healthcare resource gap to meet emerging demands for high quality holistic health management.In this insight, we examine Yidu Tech’s business model, business segments, pricing, industry and a quick look at the company’s revenue and margins.

Yidu Tech Inc (YID HK)  is a big data and AI solutions provider for healthcare sector and the company was ranked no. 1 in terms of revenue among all healthcare big data solution providers in China in 2019.The company has filed for an IPO to list its shares on the Hong Kong Stock Exchange and the company has not yet set the terms for its IPO.The company generates a majority of its revenues from big data platform and solutions and the company’s revenues have grown significantly over the last three years. Though the company has not yet been able to make any operating profits, we have observed that the company’s operating losses as a % of revenue has declined over the period.China is the world’s second largest healthcare market and the country has been increasingly informatizing the healthcare system in order to improve the efficiency as well as close the huge healthcare resource gap to meet emerging demands for high quality holistic health management.In this insight, we examine Yidu Tech’s business model, business segments, pricing, industry and a quick look at the company’s revenue and margins.

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.

<a href="https://www.smartkarma.com/entities/netjoy" target="_blank" data-smartkarma-citation="entities:29729:1" rel="noopener">Netjoy (2131 HK)</a> is an ad tech company which connects advertising customers and media partners. It is the third-largest online marketing solutions provider in China as measured by gross billing generated from short video advertisements in 2019, with a market share of 3.4%, according to iResearch. Netjoy has launched a Hong Kong IPO to raise net proceeds of HK$1,166.6 million ($150 million), at the mid-point of the IPO price range. <div class="content-highlight">The IPO performance of Chinese ad tech companies has been mixed. Consequently, backing the winners is crucial to generate investment returns in the Chinese ad tech sector. For investors seeking Chinese adtech exposure, we think Netjoy’s fundamentals are attractive. We will discuss the IPO valuation in our next piece. </div>

Netjoy (2131 HK) is an ad tech company which connects advertising customers and media partners. It is the third-largest online marketing solutions provider in China as measured by gross billing generated from short video advertisements in 2019, with a market share of 3.4%, according to iResearch. Netjoy has launched a Hong Kong IPO to raise net proceeds of HK$1,166.6 million ($150 million), at the mid-point of the IPO price range. The IPO performance of Chinese ad tech companies has been mixed. Consequently, backing the winners is crucial to generate investment returns in the Chinese ad tech sector. For investors seeking Chinese adtech exposure, we think Netjoy’s fundamentals are attractive. We will discuss the IPO valuation in our next piece. 

Kuaishou Technology / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/beijing-kuaishou-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:29725:1" rel="noopener">Beijing Kuaishou Technology Co Ltd (1496219D CH)</a> , the Chinese short-video and livestreaming platform has filed for an IPO to list its shares on the Hong Kong Stock Exchange. The company aims to raise up to US$5bn at a rumoured valuation of over US$50bn.In our previous insight on the company’s IPO, we examined the company’s business model, the industry and the revenue channels. The company generates a majority of its revenues from live streaming (through virtual gifting) however, online marketing services and other services (e-commerce and other services) have been growing at higher rates over the last two years which we believe should drive future growth for Kuaishou.In this insight, we deep dive into the company’s revenues and key performance indicators for its business segments. We will be examining the company’s margins and balance sheet in a follow-up insight.

Beijing Kuaishou Technology Co Ltd (1496219D CH) , the Chinese short-video and livestreaming platform has filed for an IPO to list its shares on the Hong Kong Stock Exchange. The company aims to raise up to US$5bn at a rumoured valuation of over US$50bn.In our previous insight on the company’s IPO, we examined the company’s business model, the industry and the revenue channels. The company generates a majority of its revenues from live streaming (through virtual gifting) however, online marketing services and other services (e-commerce and other services) have been growing at higher rates over the last two years which we believe should drive future growth for Kuaishou.In this insight, we deep dive into the company’s revenues and key performance indicators for its business segments. We will be examining the company’s margins and balance sheet in a follow-up insight.

Kuaishou Pre-IPO: Strengthening Top Line and Ample Monetisation Opportunities

Pop Mart International Group L / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/pop-mart-international-group-limited" target="_blank" data-smartkarma-citation="entities:29016:1" rel="noopener">POP MART (POP HK)</a> , the largest and fastest-growing pop toy company in China, has filed for an IPO on the Hong Kong Stock Exchange to raise about US$500-600m.The company has established an integrated platform covering the entire industry chain of pop toys including artists development, IP operation, consumer access and pop toy culture.The company has some strong licensing relationships with global content providers including Disney and Universal Studios which help the company recreate and further monetise their IPs in addition to having its own proprietary IPs.In our previous insight on the company’s IPO <a href="https://www.smartkarma.com/insights/pop-mart-ipo-molly-and-other-self-developed-ips-fuel-strong-growth" target="_blank" data-smartkarma-citation="insights:41040" rel="noopener">Pop Mart IPO: Molly and Other Self-Developed IPs Fuel Strong Growth</a> , we examined the company’s business model, its segments, financials and outlook. The company has released its post hearing information pack (PHIP) yesterday (22nd November) and this insight focuses on the new data points from the company’s PHIP.

POP MART (POP HK) , the largest and fastest-growing pop toy company in China, has filed for an IPO on the Hong Kong Stock Exchange to raise about US$500-600m.The company has established an integrated platform covering the entire industry chain of pop toys including artists development, IP operation, consumer access and pop toy culture.The company has some strong licensing relationships with global content providers including Disney and Universal Studios which help the company recreate and further monetise their IPs in addition to having its own proprietary IPs.In our previous insight on the company’s IPO Pop Mart IPO: Molly and Other Self-Developed IPs Fuel Strong Growth , we examined the company’s business model, its segments, financials and outlook. The company has released its post hearing information pack (PHIP) yesterday (22nd November) and this insight focuses on the new data points from the company’s PHIP.

Pop Mart IPO: 1H20 Impacted by Covid-19 but New Launches and Online Channels Should Support Earnings

Event-Driven

<ul>
<li>On 16th November, <a href="https://www.smartkarma.com/entities/baidu-inc" target="_blank" data-smartkarma-citation="entities:179:1" rel="noopener">Baidu (BIDU US)</a>  announced that it has entered into a definitive agreement with <a href="https://www.smartkarma.com/entities/joyy-inc" target="_blank" data-smartkarma-citation="entities:285:1" rel="noopener">JOYY (YY US)</a>  to acquire its domestic video-based entertainment live streaming business in China (known as YY Live). JOYY will retain its overseas business.</li>
<li>The deal includes YY mobile app, YY.com website and PC YY, among others, for an aggregate purchase price of approximately US$3.6bn in cash and the transaction is expected to occur in 1H2021 subject to certain conditions.</li>
<li>According to Baidu, YY Live stands to benefit from the company’s large traffic and thriving mobile ecosystem while Baidu will receive immediate operational experience and knowhow for large-scale video-based social media development, as well as a creator network that will further strengthen Baidu's massive content provider network.</li>
<li>Baidu has been a late entrant to the thriving short video app market in China which is currently dominated by Douyin and Kuaishou. Baidu has been attempting to reduce its dependence on core advertising revenues, however, these efforts are yet to make any meaningful impact on the company’s top line and margins.</li>
</ul>


On 16th November, Baidu (BIDU US)  announced that it has entered into a definitive agreement with JOYY (YY US)  to acquire its domestic video-based entertainment live streaming business in China (known as YY Live). JOYY will retain its overseas business.
The deal includes YY mobile app, YY.com website and PC YY, among others, for an aggregate purchase price of approximately US$3.6bn in cash and the transaction is expected to occur in 1H2021 subject to certain conditions.
According to Baidu, YY Live stands to benefit from the company’s large traffic and thriving mobile ecosystem while Baidu will receive immediate operational experience and knowhow for large-scale video-based social media development, as well as a creator network that will further strengthen Baidu's massive content provider network.
Baidu has been a late entrant to the thriving short video app market in China which is currently dominated by Douyin and Kuaishou. Baidu has been attempting to reduce its dependence on core advertising revenues, however, these efforts are yet to make any meaningful impact on the company’s top line and margins.


Baidu: Acquisition of YY Live Is More Beneficial to JOYY than Baidu

China

Kuaishou Technology operates as a content community and social platform. The Company helps users create, upload and watch short videos on mobile devices. Kuaishou Technology offers services worldwide.

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Kuaishou Technology (1024 HK)

Yidu Tech Pre-IPO: First Look

Yidu Tech is a big data and AI solutions provider for healthcare sector and the company was ranked no. 1 in terms of revenue among all healthcare...

Shifara Samsudeen, ACMA, CGMA

Netjoy IPO Initiation: Joy Divisions

Netjoy has launched an HK IPO to raise net proceeds of HK$1,166.6 million ($150 million), at the mid-point. For investors seeking Chinese adtech...

Arun George

Kuaishou Pre-IPO: Strengthening Top Line and Ample Monetisation Opportunities

In this insight, we deep dive into Chinese short-video and livestreaming platform Kuaishou's revenues and key performance indicators for its...

Shifara Samsudeen, ACMA, CGMA

Pop Mart IPO: 1H20 Impacted by Covid-19 but New Launches and Online Channels Should Support Earnings

Pop Mart, the largest and fastest-growing pop toy company in China, has filed for an IPO on the Hong Kong Stock Exchange to raise about US$500-600m.

Shifara Samsudeen, ACMA, CGMA

Baidu: Acquisition of YY Live Is More Beneficial to JOYY than Baidu

Baidu announced that it has entered into a definitive agreement with JOYY to acquire its domestic video-based entertainment live streaming business...

Shifara Samsudeen, ACMA, CGMA

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