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

Thematic (Sector/Industry)

<ul>
<li>BYD/CATL: Renewed effort of German carmakers in EV positive to Chinese battery makers</li>
<li>700HK: Tencent’s management said “Hunyuan” LLM will be launched within this month(+)</li>
<li>NetEase's "Eggy Party" announced that they reached over 100 mn MAUs and surpassing 100 mn UGC maps. (+)</li>
</ul>


BYD/CATL: Renewed effort of German carmakers in EV positive to Chinese battery makers
700HK: Tencent’s management said “Hunyuan” LLM will be launched within this month(+)
NetEase's "Eggy Party" announced that they reached over 100 mn MAUs and surpassing 100 mn UGC maps. (+)


China TMT Update-BYD/CATL/700HK/NTES-“Hunyuan” LLM Will Be Launched/"Eggy Party" Reached 100 Mn MAUs

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

<ul>
<li>
<a href="https://www.smartkarma.com/entities/vng-limited" target="_blank" data-smartkarma-citation="entities:26716:1" rel="noopener">VNG (VinaGame) (VNG US)</a> is Vietnam’s leading, homegrown digital ecosystem. VNG has filed for a Nasdaq listing to raise US$300 million.</li>
<li>In <em><strong><a href="https://www.smartkarma.com/insights/vng-ipo-the-bull-case" target="_blank" data-smartkarma-citation="insights:112269" rel="noopener">VNG IPO: The Bull Case</a></strong></em>, we highlighted the key elements of the bull case. In this note, we outline the bear case.</li>
<li>The bear case rests on the Communications and Media business' faltering fundamentals, the Fintech business' uncertain path to profitability and VNG’s underlying cash burn.</li>
</ul>



VNG (VinaGame) (VNG US) is Vietnam’s leading, homegrown digital ecosystem. VNG has filed for a Nasdaq listing to raise US$300 million.
In VNG IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
The bear case rests on the Communications and Media business' faltering fundamentals, the Fintech business' uncertain path to profitability and VNG’s underlying cash burn.


<ul>
<li>
<a href="https://www.smartkarma.com/entities/vng-limited" target="_blank" data-smartkarma-citation="entities:26716:1" rel="noopener">VNG (VinaGame) (VNG US)</a> is Vietnam’s leading, homegrown digital ecosystem. VNG has filed for a Nasdaq listing to raise US$300 million.    </li>
<li>VNG is the number one mobile games publisher in Vietnam. VNG’s Zalo, Zing MP3 and Bao Moi applications are Vietnam’s leading messaging, music streaming and online news applications. </li>
<li>The bull case rests on the core games business’ improving KPIs, return to growth, good revenue visibility, and reducing dependence on critical partners combined with VNG’s improving margin.</li>
</ul>



VNG (VinaGame) (VNG US) is Vietnam’s leading, homegrown digital ecosystem. VNG has filed for a Nasdaq listing to raise US$300 million.    
VNG is the number one mobile games publisher in Vietnam. VNG’s Zalo, Zing MP3 and Bao Moi applications are Vietnam’s leading messaging, music streaming and online news applications. 
The bull case rests on the core games business’ improving KPIs, return to growth, good revenue visibility, and reducing dependence on critical partners combined with VNG’s improving margin.


<ul>
<li>Novecure's TTF Phase III trial failed to reach end point, negative for ZLAB （-）</li>
<li>"Shining! Umamusume: Pretty Derby" launched by Bilibili on August 29</li>
<li>NPPA recently released the latest batch of August approvals of game license</li>
</ul>


Novecure's TTF Phase III trial failed to reach end point, negative for ZLAB （-）
"Shining! Umamusume: Pretty Derby" launched by Bilibili on August 29
NPPA recently released the latest batch of August approvals of game license


China TMT Update-Zlab/BILI/Tencent/NetEase-The Latest Batch of Game Code/Umamusume: Pretty Derby

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>Vietnamese tech start-up <a href="https://www.smartkarma.com/entities/vng-limited" target="_blank" data-smartkarma-citation="entities:26716:1" rel="noopener">VNG (VinaGame) (VNG US)</a> has filed for an IPO in the US and according to news media outlets, the company plans to raise proceeds of around US$300-400m.</li>
<li>VNG’s business model resembles that of China’s <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> with games accounting for most of VNG’s revenues. Other business segments are in early stages of monetisation.</li>
<li>Our analysis suggests that VNG’s businesses have strong potential and the company could further reduce its operating losses with scale and further financial discipline.</li>
</ul>


Vietnamese tech start-up VNG (VinaGame) (VNG US) has filed for an IPO in the US and according to news media outlets, the company plans to raise proceeds of around US$300-400m.
VNG’s business model resembles that of China’s Tencent (700 HK) with games accounting for most of VNG’s revenues. Other business segments are in early stages of monetisation.
Our analysis suggests that VNG’s businesses have strong potential and the company could further reduce its operating losses with scale and further financial discipline.


China

NetEase, Inc. is an Internet technology company that develops applications, services and other Internet technologies in China. The Company's core businesses consist of email service, web portal and online entertainment, including online gaming services. NetEase also offers online advertising, search, mobile applications and e-commerce.

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NetEase Inc (NTES US)

China TMT Update-BYD/CATL/700HK/NTES-“Hunyuan” LLM Will Be Launched/"Eggy Party" Reached 100 Mn MAUs

German carmakers in EV positive to Chinese battery makers;700HK: “Hunyuan” LLM will be launched within this month(+);NetEase's "Eggy Party"...

Blue Lotus Research Institute

VNG IPO: The Bear Case

The bear case rests on the Communications and Media business' faltering fundamentals, the Fintech business' uncertain path to profitability and...

Arun George

VNG IPO: The Bull Case

The bull case rests on the core games business’ improving KPIs, return to growth, good revenue visibility, and reducing dependence on critical...

Arun George

China TMT Update-Zlab/BILI/Tencent/NetEase-The Latest Batch of Game Code/Umamusume: Pretty Derby

Novecure's TTF Phase III trial failed to reach end point, negative for ZLAB;"Shining! Umamusume: Pretty Derby" launched by Bilibili on August 29;...

Blue Lotus Research Institute

VNG IPO: Scaling Up

Apart from games which account for a majority, VNG's other businesses are in early stages of monetisation. VNG's businesses show strong potential...

Shifara Samsudeen, ACMA, CGMA

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