Global Emerging Market Equities, Propitious Research

Wium Malan, CFA

Global Emerging Market Equities

Independent, Fundamental Quantitative Research

Propitious Research

Fully independent, fundamental and quantitative equity research, focused on companies in the Telecommunication, Media, Technology, Internet and Healthcare sectors in the Global Emerging Markets. Idea generation focused on Quality stocks, trading below their intrinsic Value, with sound Corporate Governance.

Equity Bottom-Up

<ul>
<li>Vipshop has underperformed, on a 12-month basis, due to a slowdown in active user growth, which has spilt over into slower revenue growth and contracting earnings.</li>
<li>Material equity investments, accompanied by strategic cooperation agreements, by Tencent and JD.com in December 2017 catalysed significant user growth over the subsequent 3 years.</li>
<li>The recent de-rating once again flags Vipshop as an attractive takeover target for its current strategic shareholders and broader eCommerce rivals, including nascent disruptors and live-streaming operators.</li>
</ul>


Vipshop has underperformed, on a 12-month basis, due to a slowdown in active user growth, which has spilt over into slower revenue growth and contracting earnings.
Material equity investments, accompanied by strategic cooperation agreements, by Tencent and JD.com in December 2017 catalysed significant user growth over the subsequent 3 years.
The recent de-rating once again flags Vipshop as an attractive takeover target for its current strategic shareholders and broader eCommerce rivals, including nascent disruptors and live-streaming operators.


Vipshop: With Net Cash at Nearly 50% of Market Cap, Is It a Value Trap or a Takeover Target?

Silver Point

Thomas J. Monaco

Independent Insight Provider

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

<ul>
<li>Substantial disagreements over the video streamer DouYu International’s strategic direction, prompts ownership re-think at Tencent; </li>
<li>Tencent is allegedly privatizing Douyu near the bottom of the market; and </li>
<li>Unlike the JD.com move, this transaction maximizes shareholder value while getting into regulatory compliance. </li>
</ul>


Substantial disagreements over the video streamer DouYu International’s strategic direction, prompts ownership re-think at Tencent; 
Tencent is allegedly privatizing Douyu near the bottom of the market; and 
Unlike the JD.com move, this transaction maximizes shareholder value while getting into regulatory compliance. 


Tencent Holdings – Getting Its House In Order

Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

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.

Event-Driven

<ul>
<li>
<a href="https://news.yahoo.com/exclusive-tencent-plans-u-listed-092112568.html" target="_blank" rel="noopener">Tencent is reportedly considering taking Douyu private</a>, potentially in partnership with a PE fund. </li>
<li>Given weak earnings and reports of strategic confusion within management this is not entirely surprising. </li>
<li>While the news is positive for Douyu we would prefer to look one connection away at the implications for the less troubled Huya.</li>
</ul>



Tencent is reportedly considering taking Douyu private, potentially in partnership with a PE fund. 
Given weak earnings and reports of strategic confusion within management this is not entirely surprising. 
While the news is positive for Douyu we would prefer to look one connection away at the implications for the less troubled Huya.


Huya – If Douyu Is Being Taken Private Huya Should Be Too

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>Cloud Village Inc. (CVI), also known as NetEase Music, raised around US$420m in its Hong Kong IPO.</li>
<li>The company has obtained investments from Baidu and Alibaba, along with other investors.</li>
<li>In this note, we will talk about the trading dynamics.</li>
</ul>


Cloud Village Inc. (CVI), also known as NetEase Music, raised around US$420m in its Hong Kong IPO.
The company has obtained investments from Baidu and Alibaba, along with other investors.
In this note, we will talk about the trading dynamics.


Cloud Village (NetEase Music) IPO Trading - One of the Lowest Insti Subscriptions Yet

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>
<a href="https://www.smartkarma.com/entities/so-young-international-inc" target="_blank" data-smartkarma-citation="entities:28025:1" rel="noopener">So-Young (SY US)</a> has announced a preliminary non-binding proposal from its chairman, Xing Jin, of $5.30/ADS - a 22.7% premium to last close. </li>
<li>Xing Jin controls 83.9% of the voting power. If a firm Offer unfolds, which should involve a long-form merger, this is effectively done. </li>
<li>The pressure on Chinese stocks in the US to go private or change listing venue by 2024 is still on.</li>
</ul>



So-Young (SY US) has announced a preliminary non-binding proposal from its chairman, Xing Jin, of $5.30/ADS - a 22.7% premium to last close. 
Xing Jin controls 83.9% of the voting power. If a firm Offer unfolds, which should involve a long-form merger, this is effectively done. 
The pressure on Chinese stocks in the US to go private or change listing venue by 2024 is still on.


United States

HUYA Inc. operates as a game live streaming platform. The Company offers interactive video broadcast services including e-sports, music, reality show, entertainment genres, talent shows, and anime and outdoor activities. HUYA serves customers in China.

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HUYA (HUYA US)

Vipshop: With Net Cash at Nearly 50% of Market Cap, Is It a Value Trap or a Takeover Target?

In this insight, we analyse Vipshop’s user base growth, financial performance, and earnings outlook, take an updated look at current valuation...

Wium Malan, CFA

Tencent Holdings – Getting Its House In Order

TENCENT: Substantial disagreements over DouYu’s strategic direction, has caused a re-think at Tencent. Unlike the JD.com move, the Douyu move makes...

Thomas J. Monaco

Huya – If Douyu Is Being Taken Private Huya Should Be Too

Tencent is reportedly considering taking Douyu private. While the news is positive for Douyu we would prefer to look one connection away at the...

Mio Kato

Cloud Village (NetEase Music) IPO Trading - One of the Lowest Insti Subscriptions Yet

Cloud Village Inc. (CVI), also known as NetEase Music, raised around US$420m in its Hong Kong IPO. In this note, we will talk about the trading...

Sumeet Singh

So-Young's Low-Balled Proposal

How the regulator assesses such a deal, and the timing thereon, is indeterminate. But So-Young is very beaten up. Buying around here is probably...

David Blennerhassett

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