External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>Coinbase is a leading provider of end-to-end financial infrastructure and technology for the crypto economy, with average monthly transacting users of 7mn in 2023.</li><li>As of 30 Sep 2024, the company operated business in over 100 countries, with total safeguarded asset of US$273bn and 3Q24 quarterly trading volume of US$185bn.</li><li>Coinbase, currently as the first and only listed crypto exchange, has a high level of compliance and emphasizes asset security. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Coinbase is a leading provider of end-to-end financial infrastructure and technology for the crypto economy, with average monthly transacting users of 7mn in 2023.As of 30 Sep 2024, the company operated business in over 100 countries, with total safeguarded asset of US$273bn and 3Q24 quarterly trading volume of US$185bn.Coinbase, currently as the first and only listed crypto exchange, has a high level of compliance and emphasizes asset security. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Coinbase (COIN US) - Leading Financial Infrastructure for the Crypto Economy; Initiate at BUY

Research from Quam Securities, Quam Securities

Quam Securities Research

Research from Quam Securities

Quam Securities

Since its inception in 1986, Quam Securities Limited (Quam Securities) has grown to become one of the few mid-tier securities brokerages in Hong Kong with global execution capabilities for both private and institutional clients. It boasts a well-established network in Greater China including Taiwan and in major world markets through the Global Alliance Partners (GAP). Quam Securities is well-positioned not only to harness and drive business within the China Tonghai International Financial Limited but also between China and the world markets.

Thematic (Sector/Industry)

ABCDE Sector Weekly provides market-moving insights and news for the rapidly transforming digital asset sector with a primary emphasis on their impact on related equities.  More importantly, we keep equity investors informed on how they can invest on the right side of change.

ABCDE Sector Weekly provides market-moving insights and news for the rapidly transforming digital asset sector with a primary emphasis on their impact on related equities.  More importantly, we keep equity investors informed on how they can invest on the right side of change.   

CTS Global Digital Asset and Blockchain Equities Weekly (1/9)

ABCDE Sector Weekly provides market-moving insights and news for the rapidly transforming digital asset sector with a primary emphasis on their impact on related equities.  More importantly, we keep equity investors informed on how they can invest on the right side of change.

ABCDE Sector Weekly provides market-moving insights and news for the rapidly transforming digital asset sector with a primary emphasis on their impact on related equities.  More importantly, we keep equity investors informed on how they can invest on the right side of change.  

CTS Global Digital Asset and Blockchain Equities Weekly (20/8)

Crypto

<h3>Stock Picks</h3>
Coinbase (COIN US) – Growing by leaps and bounds; Initiate with Buy, TP: US$302.62 We initiate coverage of Coinbase Global (Coinbase) with a Buy rating and 12-month SOTP-derived target price of US$302.62. As one of the largest digital asset trading platforms with a broad suite of value-added services, we believe Coinbase will benefit from the expanding TAM of the cryptoeconomy, which will drive revenue and user growth. We see current valuations (17.2x 2022E P/E) as attractive relative to its robust growth profile and leading position in the digital asset industry.
BC Tech Group (863 HK) – Pushing the envelope in institutional digital asset; Initiate with Buy; TP: HK$18.53 We believe BCG’s shares offer investors exposure to the structural theme of rising institutional demand for digital assets trading and investment solutions. As one of the few publicly listed and licensed players in the digital asset exchange industry, we expect BCG to benefit from strong revenue growth and earnings breakeven in 2022E. We view current valuations (7.6x 2022E P/S) as attractive relative to its regional and global peers, given its robust revenue growth.
<h3>Where we differ</h3>
Sell-side research has been focused narrowly on margin compression and intensifying competition from other exchanges.  Our view is that focusing any discussion of licensed and regulatory compliant digital asset exchanges on commission and margin pressure is overly limiting. Instead, we urge equity investors to take a broader view. In other words, investing in pick and shovel plays will give investors exposure to the future potential of the digital asset phenomenon.

Stock Picks
Coinbase (COIN US) – Growing by leaps and bounds; Initiate with Buy, TP: US$302.62 We initiate coverage of Coinbase Global (Coinbase) with a Buy rating and 12-month SOTP-derived target price of US$302.62. As one of the largest digital asset trading platforms with a broad suite of value-added services, we believe Coinbase will benefit from the expanding TAM of the cryptoeconomy, which will drive revenue and user growth. We see current valuations (17.2x 2022E P/E) as attractive relative to its robust growth profile and leading position in the digital asset industry.
BC Tech Group (863 HK) – Pushing the envelope in institutional digital asset; Initiate with Buy; TP: HK$18.53 We believe BCG’s shares offer investors exposure to the structural theme of rising institutional demand for digital assets trading and investment solutions. As one of the few publicly listed and licensed players in the digital asset exchange industry, we expect BCG to benefit from strong revenue growth and earnings breakeven in 2022E. We view current valuations (7.6x 2022E P/S) as attractive relative to its regional and global peers, given its robust revenue growth.
Where we differ
Sell-side research has been focused narrowly on margin compression and intensifying competition from other exchanges.  Our view is that focusing any discussion of licensed and regulatory compliant digital asset exchanges on commission and margin pressure is overly limiting. Instead, we urge equity investors to take a broader view. In other words, investing in pick and shovel plays will give investors exposure to the future potential of the digital asset phenomenon.

Corporate Access: BC Tech Group & Coinbase Coverage

United States

Coinbase Global, Inc. provides financial solutions. The Company offers platform to buy and sell cryptocurrencies. Coinbase Global serves clients worldwide.

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Coinbase Global (COIN US)

Coinbase (COIN US) - Leading Financial Infrastructure for the Crypto Economy; Initiate at BUY

Coinbase is a leading provider of end-to-end financial infrastructure and technology for the crypto economy, with average monthly transacting users...

CMB International

CTS Global Digital Asset and Blockchain Equities Weekly (1/9)

ABCDE Sector Weekly provides market-moving insights and news: Riot 2Q21; PBoC crypto; Binance US IPO; Upbit; USDC; Cardano upgrade Alonzo; Square DEX

Quam Securities

CTS Global Digital Asset and Blockchain Equities Weekly (20/8)

CTS Research: BC Tech (863 HK) 1H21 strong rev| COIN new trading platfom in Japan; South Korea regulations; Eth 2.0 upgrade; OpenSea; Alibaba NFT

Quam Securities

CTS Research: Digital Asset Thematic

Initiate COIN and BC Tech Group (863 HK) with Buy | Sign up for BC Tech Group NDR 20/8 | US infra bill passage; Poly Hack; Tencent NFT

Quam Securities

Corporate Access: BC Tech Group & Coinbase Coverage

We published a thematic sector report on Digital Asset Exchanges and initiated coverage on the Global Digital Exchange Sector with Buy ratings on...

Quam Securities

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