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.

Equity Capital Markets

<a href="https://www.smartkarma.com/entities/agora-inc" target="_blank" data-smartkarma-citation="entities:29037:1" rel="noopener">Agora Inc. (API US)</a> is a software company which provides developers simple-to-use, highly customisable and widely compatible application programming interfaces (APIs) to embed real-time video, voice and messaging functionalities into their applications without the need to develop the technology or build the underlying infrastructure themselves. Agora has launched a Nasdaq IPO and concurrent private placement to raise net proceeds of $384.4 million. <div class="content-highlight">Agora has benefitted from a COVID-19 driven demand growth spurt, which will have some lasting positive effect. Agora is a play on the underlying trend of end-users demanding a more immersive and high-quality video and voice engagement experience. Overall, we believe that Agora’s fundamentals are attractive.</div>

Agora Inc. (API US) is a software company which provides developers simple-to-use, highly customisable and widely compatible application programming interfaces (APIs) to embed real-time video, voice and messaging functionalities into their applications without the need to develop the technology or build the underlying infrastructure themselves. Agora has launched a Nasdaq IPO and concurrent private placement to raise net proceeds of $384.4 million. Agora has benefitted from a COVID-19 driven demand growth spurt, which will have some lasting positive effect. Agora is a play on the underlying trend of end-users demanding a more immersive and high-quality video and voice engagement experience. Overall, we believe that Agora’s fundamentals are attractive.

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

MSCI Emerging Markets Index / Technical Analysis

Global equities continue to trend higher following breakouts that have occurred during the past two weeks. Over this timeframe we have been recommending adding exposure to cyclical Sectors and, despite them getting near-term extended, we believe these upside moves are likely just getting going. Additionally, the US dollar is breaking below support and EM equities are breaking above resistance, only adding to our bullish outlook on global equities. We highlight actionable set-ups within the Consumer Discretionary, Global Real Estate and Utilities Sectors.

Global equities continue to trend higher following breakouts that have occurred during the past two weeks. Over this timeframe we have been recommending adding exposure to cyclical Sectors and, despite them getting near-term extended, we believe these upside moves are likely just getting going. Additionally, the US dollar is breaking below support and EM equities are breaking above resistance, only adding to our bullish outlook on global equities. We highlight actionable set-ups within the Consumer Discretionary, Global Real Estate and Utilities Sectors.

Global Equity Strategy: Still Bullish, But Extended Near-Term

Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Zero One

Founded in 2015, Zero One produces independent investment research and provides corporate finance advisory services with a focus on both listed and private technology companies. Founder Vincent Fernando has over 20 years of experience in US and Asia capital markets.

Independent Investment Research

Equity Bottom-Up

Alibaba Group Holding  / Equity Bottom-Up

In China, e-commerce live streaming has already been validated as many companies such as Taobao, JD, and Pinduoduo have seen great success leveraging the channel as a means to reach increasingly digital consumers. Alibaba is now looking to take this model global through its subsidiary AliExpress. Last week, the Company launched an initiative called "AliExpress Connect" seeking to onboard over 1 million influencers and KOLs over the next three years to help sell its products internationally under its model of "shoppertainment" and e-commerce live streaming.We see this as a major catalyst that can potentially drive faster growth in the Company's international business, while simultaneously benefitting its other e-commerce live streaming peers by expanding the total addressable market.

In China, e-commerce live streaming has already been validated as many companies such as Taobao, JD, and Pinduoduo have seen great success leveraging the channel as a means to reach increasingly digital consumers. Alibaba is now looking to take this model global through its subsidiary AliExpress. Last week, the Company launched an initiative called "AliExpress Connect" seeking to onboard over 1 million influencers and KOLs over the next three years to help sell its products internationally under its model of "shoppertainment" and e-commerce live streaming.We see this as a major catalyst that can potentially drive faster growth in the Company's international business, while simultaneously benefitting its other e-commerce live streaming peers by expanding the total addressable market.

How to Play the Globalization of E-Commerce Live Streaming? Buy Alibaba

Live streaming became a staple source of entertainment globally as people searched for a way to pass time during imposed lockdowns caused by the spread of the COVID-19. In China, the industry saw traffic surge significantly in 1Q20, but this growth was not divided equivalently among live streaming players due to intensifying competition.We take a look at who were the winners and losers in the Chinese live streaming market in 1Q20.

Live streaming became a staple source of entertainment globally as people searched for a way to pass time during imposed lockdowns caused by the spread of the COVID-19. In China, the industry saw traffic surge significantly in 1Q20, but this growth was not divided equivalently among live streaming players due to intensifying competition.We take a look at who were the winners and losers in the Chinese live streaming market in 1Q20.

China Live Streaming: Why Picking Winners and Losers Is Very Important

Thematic (Sector/Industry)

We maintain our overweight on Hong Kong and China Tech as the dual COVID tailwinds of permanently shifting consumer behaviors and rapid enterprise digitization accelerate structural trends. In particular, we see five structural changes within China Tech that will allow the sector to continue outperforming the broader market in a post-COVID world, namely:<ul>
<li>FMCG E-Commerce to Drive Online Sales Past 50% of Total Retail Sales</li>
<li>Online Education Going Mainstream as Students Adapt &amp; Schools Future-Proof</li>
<li>Enterprises Rush to Digitize and Transition Workflows Online</li>
<li>Live Streaming Increasingly Valued as a Monetization Channel for Brands</li>
<li>e-Sports Industry Going Mainstream as Tencent Consolidates Major Players</li>
</ul>

We maintain our overweight on Hong Kong and China Tech as the dual COVID tailwinds of permanently shifting consumer behaviors and rapid enterprise digitization accelerate structural trends. In particular, we see five structural changes within China Tech that will allow the sector to continue outperforming the broader market in a post-COVID world, namely:
FMCG E-Commerce to Drive Online Sales Past 50% of Total Retail Sales
Online Education Going Mainstream as Students Adapt &amp; Schools Future-Proof
Enterprises Rush to Digitize and Transition Workflows Online
Live Streaming Increasingly Valued as a Monetization Channel for Brands
e-Sports Industry Going Mainstream as Tencent Consolidates Major Players


Accelerating Structural Trends to Drive Continued Outperformance in China Tech

China

JOYY Inc. operates a global social media platform. The Company offers platform which enables users to interact with each other in real time through online live media by creating, sharing, and enjoying a vast range of entertainment content and activities. JOYY serves customers in China.

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JOYY (YY US)

Agora IPO Initiation: Making It Happen

Agora Inc. (API US) is a software company which provides developers simple-to-use, highly customisable and widely compatible application...

Arun George

Global Equity Strategy: Still Bullish, But Extended Near-Term

Global equities continue to trend higher following breakouts that have occurred during the past two weeks. Over this timeframe we have been...

Vermilion Research

How to Play the Globalization of E-Commerce Live Streaming? Buy Alibaba

In China, e-commerce live streaming has already been validated as many companies such as Taobao, JD, and Pinduoduo have seen great success...

Vincent Fernando, CFA

China Live Streaming: Why Picking Winners and Losers Is Very Important

Live streaming became a staple source of entertainment globally as people searched for a way to pass time during imposed lockdowns caused by the...

Vincent Fernando, CFA

Accelerating Structural Trends to Drive Continued Outperformance in China Tech

We maintain our overweight on Hong Kong and China Tech as the dual COVID tailwinds of permanently shifting consumer behaviors and rapid enterprise...

Vincent Fernando, CFA

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