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.

Event-Driven

<ul>
<li>
<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> has launched a conditional share buyback offer to acquire a maximum of 46.9m Class A ordinary shares (15.93% of outstanding shares) at HK$9.11 (US$3.50 per ADS).</li>
<li>The offer is conditional on shareholder approval by a majority of votes cast at the EGM. There is no minimum acceptance condition. The EGM vote is done due to irrevocables. </li>
<li>Zhihu’s share buyback returns 19% of cash not subject to government controls, below <a href="https://www.smartkarma.com/entities/douyu-international-hold-adr" target="_blank" data-smartkarma-citation="entities:28045:1" rel="noopener">Douyu International Holdings (DOYU US)</a>’s comparable 34%. The minimum pro-ration is expected to be around 34%. </li>
</ul>



Zhihu Technology (ZH US) has launched a conditional share buyback offer to acquire a maximum of 46.9m Class A ordinary shares (15.93% of outstanding shares) at HK$9.11 (US$3.50 per ADS).
The offer is conditional on shareholder approval by a majority of votes cast at the EGM. There is no minimum acceptance condition. The EGM vote is done due to irrevocables. 
Zhihu’s share buyback returns 19% of cash not subject to government controls, below Douyu International Holdings (DOYU US)’s comparable 34%. The minimum pro-ration is expected to be around 34%. 


Zhihu (ZH US/2390 HK): Negative EV Play Launches a Share Buyback at HK$9.11/US$3.50

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.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/robosense-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:39903:1" rel="noopener">Robosense Technology (2498 HK)</a> raised around US$126m in its Hong Kong IPO in Jan 2024. The lockup on its shareholders will expire soon.</li>
<li>The company provides LiDAR and perception solutions to its customers. As of March 2024, it had design wins for mass production of LiDAR products with 22 automotive OEMs and suppliers.</li>
<li>In this note, we talk about the upcoming lock-up expiry and possible deal dynamics.</li>
</ul>



Robosense Technology (2498 HK) raised around US$126m in its Hong Kong IPO in Jan 2024. The lockup on its shareholders will expire soon.
The company provides LiDAR and perception solutions to its customers. As of March 2024, it had design wins for mass production of LiDAR products with 22 automotive OEMs and suppliers.
In this note, we talk about the upcoming lock-up expiry and possible deal dynamics.


Robosense IPO Lock-Up Expiry - US$2.8bn Lockup Expiry for 99% of the Stock, CCASS Movement

China/Asia TMT

Shawn Yang

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Equity Bottom-Up

<ul>
<li>Kuaishou's 2Q top-line and non-IFRS net income beat cons. by 2%/88%. DAU and MAU increased by 8%/15% YoY. We raised our 2023 EPS estimates to reflect the faster-than-expected margin improvement. </li>
<li>However, we still believe that the growth of WeChat's Video Accounts will become Kuaishou's biggest concern in the future. </li>
<li>Moreover, there is limited room for further profit margin improvement and an increase in the internal e-commerce take rate. We maintain SELL and our HK$ 50 TP.</li>
</ul>


Kuaishou's 2Q top-line and non-IFRS net income beat cons. by 2%/88%. DAU and MAU increased by 8%/15% YoY. We raised our 2023 EPS estimates to reflect the faster-than-expected margin improvement. 
However, we still believe that the growth of WeChat's Video Accounts will become Kuaishou's biggest concern in the future. 
Moreover, there is limited room for further profit margin improvement and an increase in the internal e-commerce take rate. We maintain SELL and our HK$ 50 TP.


[Kuaishou (1024 HK, SELL, TP HK$50) Earnings Review]: Fair Numbers Hide Risks

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.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/kuaishou-technology" target="_blank" data-smartkarma-citation="entities:29725:1" rel="noopener">Kuaishou Technology (1024 HK)</a> reported 2Q2023 results yesterday which beat consensus estimates. The company reported an OPM of 4.7% with net profits for the first time.</li>
<li>The company's domestic business continues to see improvement in operating profits while losses of the overseas business have reduced significantly over the last few quarters.</li>
<li>Though livestreaming growth has decelerated, the company's online marketing and e-commerce businesses continue to expand driving Kuaishou’s earnings.</li>
</ul>



Kuaishou Technology (1024 HK) reported 2Q2023 results yesterday which beat consensus estimates. The company reported an OPM of 4.7% with net profits for the first time.
The company's domestic business continues to see improvement in operating profits while losses of the overseas business have reduced significantly over the last few quarters.
Though livestreaming growth has decelerated, the company's online marketing and e-commerce businesses continue to expand driving Kuaishou’s earnings.


Kuaishou: Earnings Beat, Improved Profitability and Further Upside

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

<ul>
<li>The total revenue growth rate accelerated significantly to 28% YoY in 2Q23.</li>
<li>The high-margin businesses grew more rapidly than the low margin business.</li>
<li>Gross Merchandise Value and Active user base still increased strongly.</li>
</ul>


The total revenue growth rate accelerated significantly to 28% YoY in 2Q23.
The high-margin businesses grew more rapidly than the low margin business.
Gross Merchandise Value and Active user base still increased strongly.


KS (Kuaishou 1024 HK): 2Q23, First Net Profit Since IPO, Growth Accelerated, Buy

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)

Robosense IPO Lock-Up Expiry - US$2.8bn Lockup Expiry for 99% of the Stock, CCASS Movement

The pre-IPO shareholders came out of lockup today, leading to a 67% drop in the share price with an accompanying spike in volumes.

Sumeet Singh

[Kuaishou (1024 HK, SELL, TP HK$50) Earnings Review]: Fair Numbers Hide Risks

However, we still believe that the growth of WeChat's Video Accounts will become Kuaishou's biggest concern in the future.

Blue Lotus Research Institute

Kuaishou: Earnings Beat, Improved Profitability and Further Upside

Kuaishou's 2Q earnings beat consensus with significant improvement in profitability. Our regression analysis suggests there is further upside to...

Shifara Samsudeen, ACMA, CGMA

KS (Kuaishou 1024 HK): 2Q23, First Net Profit Since IPO, Growth Accelerated, Buy

Total revenue growth accelerated significantly in 2Q23. The high-margin businesses grew more rapidly than the low margin business. Gross...

Ming Lu

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Zhihu (ZH US/2390 HK): Negative EV Play Launches a Share Buyback at HK$9.11/US$3.50

Zhihu aims to return 19% of cash not subject to PRC government control, below Douyu’s comparable return of 34%. Expect more cash-rich US-China...

Arun George

Robosense IPO Lock-Up Expiry - US$2.8bn Lockup Expiry for 99% of the Stock, CCASS Movement

The pre-IPO shareholders came out of lockup today, leading to a 67% drop in the share price with an accompanying spike in volumes.

Sumeet Singh

[Kuaishou (1024 HK, SELL, TP HK$50) Earnings Review]: Fair Numbers Hide Risks

However, we still believe that the growth of WeChat's Video Accounts will become Kuaishou's biggest concern in the future.

Blue Lotus Research Institute

Kuaishou: Earnings Beat, Improved Profitability and Further Upside

Kuaishou's 2Q earnings beat consensus with significant improvement in profitability. Our regression analysis suggests there is further upside to...

Shifara Samsudeen, ACMA, CGMA

KS (Kuaishou 1024 HK): 2Q23, First Net Profit Since IPO, Growth Accelerated, Buy

Total revenue growth accelerated significantly in 2Q23. The high-margin businesses grew more rapidly than the low margin business. Gross...

Ming Lu