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.

Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/netjoy" target="_blank" data-smartkarma-citation="entities:29729:1" rel="noopener">Netjoy (2131 HK)</a>  is a leading short video marketing solutions provider and an online content services provider focusing on pan-entertainment in China. According to iResearch, the company had a market share of 0.5% of the total revenue of the overall online marketing market in China in 2019 in terms of revenues.</p><p>The company’s key customers include advertisers and ad agencies and the company has well-established relationships with the country’s largest short-video platforms including Douyin, Kuaishou, etc.</p><p>The company has filed for an IPO to list its shares on the Hong Kong Stock Exchange and plans to raise net proceeds of HK$1.2bn (US$151m) at the midpoint of the IPO price range of HK$6.32 per share.</p>

Netjoy (2131 HK)  is a leading short video marketing solutions provider and an online content services provider focusing on pan-entertainment in China. According to iResearch, the company had a market share of 0.5% of the total revenue of the overall online marketing market in China in 2019 in terms of revenues.The company’s key customers include advertisers and ad agencies and the company has well-established relationships with the country’s largest short-video platforms including Douyin, Kuaishou, etc.The company has filed for an IPO to list its shares on the Hong Kong Stock Exchange and plans to raise net proceeds of HK$1.2bn (US$151m) at the midpoint of the IPO price range of HK$6.32 per share.

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.

<div><p><a href="https://www.smartkarma.com/entities/netjoy" target="_blank" data-smartkarma-citation="entities:29729:1" rel="noopener">Netjoy (2131 HK)</a> is an ad tech company which connects advertising customers and media partners. It is the third-largest online marketing solutions provider in China as measured by gross billing generated from short video advertisements in 2019, with a market share of 3.4%, according to iResearch. At the proposed IPO price range of HK$5.56-7.08 per share, Netjoy will have a market cap of HK$4,448-5,664 million ($574-731 million). At the mid-point of the IPO price range, the total net proceeds are HK$1,166.6 million ($151 million). </p></div><div><p>Six cornerstone investors will subscribe for $39 million of the offer shares (23.91% of the offer shares at the mid-point of the price range). The cornerstone investors are Affin Hwang Asset Management, HSBC Global Asset Management, Pacific Asset Management, Seedlings Fund, <a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi Corp (1810 HK)</a> and SenseTime.</p></div><div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/netjoy-ipo-initiation-joy-divisions" target="_blank" data-smartkarma-citation="insights:46112" rel="noopener">Netjoy IPO Initiation: Joy Divisions</a>, we stated that for investors seeking Chinese adtech exposure, we think Netjoy’s fundamentals are attractive. Overall, we would participate in the IPO due to an attractive IPO price range.</p></div></div></div>

Netjoy (2131 HK) is an ad tech company which connects advertising customers and media partners. It is the third-largest online marketing solutions provider in China as measured by gross billing generated from short video advertisements in 2019, with a market share of 3.4%, according to iResearch. At the proposed IPO price range of HK$5.56-7.08 per share, Netjoy will have a market cap of HK$4,448-5,664 million ($574-731 million). At the mid-point of the IPO price range, the total net proceeds are HK$1,166.6 million ($151 million). Six cornerstone investors will subscribe for $39 million of the offer shares (23.91% of the offer shares at the mid-point of the price range). The cornerstone investors are Affin Hwang Asset Management, HSBC Global Asset Management, Pacific Asset Management, Seedlings Fund, Xiaomi Corp (1810 HK) and SenseTime.In Netjoy IPO Initiation: Joy Divisions, we stated that for investors seeking Chinese adtech exposure, we think Netjoy’s fundamentals are attractive. Overall, we would participate in the IPO due to an attractive IPO price range.

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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.

<p>Netjoy, a leading short video marketing solution player, launched book building to raise up to USD 183m via a listing in Hong Kong.</p><p>Netjoy rode the wave of emergence of short video platforms such as Tiktok and Kuaishou. It specialises in short video marketing. Online gaming is the main spender on ads through Netjoy.</p><p>We note that key operating metrics such as revenue per click and revenue per advertiser has been trending down during the track record period. The company's shareholders are mainly individuals with no significant investments from institutional investors. </p><p>We look at the company's financial and operating performance in 1H2020. We think the company is in transition from low margin business into higher margin business. Revenue declined significantly but its margin improved. The company lost business from online gaming customers while gaining traction with financial service and e-Commerce customers. </p><p>We think the deal is fairly valued and the cornerstone investors are mediocre. Its peer Joy Spreader didn't perform well despite strong retail interests. We will avoid the deal.</p><h2>Our previous coverage on Netjoy</h2><ul><li dir="ltr"><p><a href="https://www.smartkarma.com/insights/netjoy-pre-ipo-growth-stalled-for-the-short-video-marketer" target="_blank" rel="noopener">Netjoy (云想科技) Pre-IPO: Growth stalled for the short video marketer</a></p></li></ul>

Netjoy, a leading short video marketing solution player, launched book building to raise up to USD 183m via a listing in Hong Kong.Netjoy rode the wave of emergence of short video platforms such as Tiktok and Kuaishou. It specialises in short video marketing. Online gaming is the main spender on ads through Netjoy.We note that key operating metrics such as revenue per click and revenue per advertiser has been trending down during the track record period. The company's shareholders are mainly individuals with no significant investments from institutional investors. We look at the company's financial and operating performance in 1H2020. We think the company is in transition from low margin business into higher margin business. Revenue declined significantly but its margin improved. The company lost business from online gaming customers while gaining traction with financial service and e-Commerce customers. We think the deal is fairly valued and the cornerstone investors are mediocre. Its peer Joy Spreader didn't perform well despite strong retail interests. We will avoid the deal.Our previous coverage on NetjoyNetjoy (云想科技) Pre-IPO: Growth stalled for the short video marketer

Netjoy (云想科技) IPO: Alarming 1H2020, Avoid

<p><a href="https://www.smartkarma.com/entities/netjoy" target="_blank" data-smartkarma-citation="entities:29729:1" rel="noopener">Netjoy (2131 HK)</a> , a leading provider of short video marketing solutions and online content services in China has filed for an IPO to list its shares on the Hong Kong Stock Exchange. The company aims to raise HK$1.2bn (approx. US$151m) at the midpoint of the IPO price of HK$6.32 per share.</p><p>According to iResearch, the company was ranked the third-largest online marketing solutions provider in China in 2019 based on gross billings generated from short video advertisements.</p><p>In this insight, we examine the company’s business model, business segments and financials.</p>

Netjoy (2131 HK) , a leading provider of short video marketing solutions and online content services in China has filed for an IPO to list its shares on the Hong Kong Stock Exchange. The company aims to raise HK$1.2bn (approx. US$151m) at the midpoint of the IPO price of HK$6.32 per share.According to iResearch, the company was ranked the third-largest online marketing solutions provider in China in 2019 based on gross billings generated from short video advertisements.In this insight, we examine the company’s business model, business segments and financials.

<p><a href="https://www.smartkarma.com/entities/netjoy" target="_blank" data-smartkarma-citation="entities:29729:1" rel="noopener">Netjoy (2131 HK)</a> is an ad tech company which connects advertising customers and media partners. It is the third-largest online marketing solutions provider in China as measured by gross billing generated from short video advertisements in 2019, with a market share of 3.4%, according to iResearch. Netjoy has launched a Hong Kong IPO to raise net proceeds of HK$1,166.6 million ($150 million), at the mid-point of the IPO price range. </p><div class="content-highlight"><p>The IPO performance of Chinese ad tech companies has been mixed. Consequently, backing the winners is crucial to generate investment returns in the Chinese ad tech sector. For investors seeking Chinese adtech exposure, we think Netjoy’s fundamentals are attractive. We will discuss the IPO valuation in our next piece. </p></div>

Netjoy (2131 HK) is an ad tech company which connects advertising customers and media partners. It is the third-largest online marketing solutions provider in China as measured by gross billing generated from short video advertisements in 2019, with a market share of 3.4%, according to iResearch. Netjoy has launched a Hong Kong IPO to raise net proceeds of HK$1,166.6 million ($150 million), at the mid-point of the IPO price range. The IPO performance of Chinese ad tech companies has been mixed. Consequently, backing the winners is crucial to generate investment returns in the Chinese ad tech sector. For investors seeking Chinese adtech exposure, we think Netjoy’s fundamentals are attractive. We will discuss the IPO valuation in our next piece. 

China

Netjoy Holdings Limited offers advertising and marketing services. The Company provides big data empowered short video marketing solutions development, online entertainment content production, online marketing, and other services. Netjoy Holdings provides its services throughout China.

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Netjoy (2131 HK)

Netjoy IPO Valuation: Stay Away

The company has filed for an IPO to list its shares on the Hong Kong Stock Exchange and plans to raise net proceeds of HK$1.2bn (US$151m) at the...

Shifara Samsudeen, ACMA, CGMA

Netjoy IPO: Valuation Insights

At the mid-point of the IPO price range, the total net proceeds are $151 million. We would participate in the IPO due to an attractive IPO price...

Arun George

Netjoy (云想科技) IPO: Alarming 1H2020, Avoid

We think the deal is fairly valued and the cornerstone investors are mediocre. Its peer Joy Spreader didn't perform well despite strong retail...

Ke Yan, CFA, FRM

Netjoy Holdings IPO: Not So Joyful

Netjoy, a leading provider of short video marketing solutions and online content services in China has filed for an IPO to list its shares on the...

Shifara Samsudeen, ACMA, CGMA

Netjoy IPO Initiation: Joy Divisions

Netjoy has launched an HK IPO to raise net proceeds of HK$1,166.6 million ($150 million), at the mid-point. For investors seeking Chinese adtech...

Arun George

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