HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

<ul>
<li>The key to Ximalaya turning losses into profits is not the outstanding performance in revenue side, but rather the effective cost control. The Company seems to have encountered growth bottleneck.</li>
<li>To achieve long-term stable profits, it’s necessary to continuously optimize content quality, improve user experience, and expand paying user scale, but Ximalaya has shown "signs of fatigue" in this regard. </li>
<li>AI technology brings big room for imagination, but the question here is how much would truly translate into a leap in financial performance? Ximalaya’s valuation could be lower than peers.</li>
</ul>


The key to Ximalaya turning losses into profits is not the outstanding performance in revenue side, but rather the effective cost control. The Company seems to have encountered growth bottleneck.
To achieve long-term stable profits, it’s necessary to continuously optimize content quality, improve user experience, and expand paying user scale, but Ximalaya has shown "signs of fatigue" in this regard. 
AI technology brings big room for imagination, but the question here is how much would truly translate into a leap in financial performance? Ximalaya’s valuation could be lower than peers.


Pre-IPO Ximalaya - The Potential Risks and the Outlook

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.

LG Energy Solution / Equity Capital Markets

<ul>
<li>We take a look at the Asia Pacific IPO pipeline for 2022. This list has been compiled on a best effort basis from tracking company filings and other sources.</li>
<li>For readers who aren't familiar with our coverage, we aim to cover all IPOs and placements with a minimum deal size of US$100m across Asia-Pacific (ex A-shares), including China ADRs. </li>
<li>The deals you see in this note are only a part of our full IPO pipeline tracker. Feel free to drop us a message for additional information on these IPOs.</li>
</ul>


We take a look at the Asia Pacific IPO pipeline for 2022. This list has been compiled on a best effort basis from tracking company filings and other sources.
For readers who aren't familiar with our coverage, we aim to cover all IPOs and placements with a minimum deal size of US$100m across Asia-Pacific (ex A-shares), including China ADRs. 
The deals you see in this note are only a part of our full IPO pipeline tracker. Feel free to drop us a message for additional information on these IPOs.


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.

<ul>
<li>In <a href="https://www.smartkarma.com/insights/cloud-village-netease-music-ipo-not-yet-a-sound-investment" target="_blank" data-smartkarma-citation="insights:61441" rel="noopener">Cloud Village (NetEase Music) IPO: Not yet a Sound Investment</a>, we stated that the 9M21 update is underwhelming with slowing growth and a marginal decline in losses. </li>
<li>In <a href="https://www.smartkarma.com/insights/cloud-village-netease-music-ipo-valuation-insights" target="_blank" data-smartkarma-citation="insights:61537" rel="noopener">Cloud Village (NetEase Music) IPO: Valuation Insights</a>, we noted that the IPO price is unattractive.  </li>
<li>It priced its IPO at HK$205 and closed <a href="https://inews.hket.com/article/3121049/%E3%80%90%E6%96%B0%E8%82%A1IPO%E3%80%91%E7%B6%B2%E6%98%93%E9%9B%B2%E9%9F%B3%E6%A8%829899%E6%9A%97%E7%9B%A4%E6%94%B6%E8%B7%8C2-%E3%80%80%E4%B8%80%E6%89%8B%E5%B8%B3%E9%9D%A2%E7%B4%84%E8%9D%95200%E5%85%83?mtc=40001&amp;srkw=IPO%E6%9C%80%E5%BF%AB%E6%9C%80%E9%BD%8A" target="_blank" rel="noopener">-2% lower</a> in the grey market. Our base-case DCF value of HK$186.88 per share is a 9% downside to the IPO price.  </li>
</ul>


In Cloud Village (NetEase Music) IPO: Not yet a Sound Investment, we stated that the 9M21 update is underwhelming with slowing growth and a marginal decline in losses. 
In Cloud Village (NetEase Music) IPO: Valuation Insights, we noted that the IPO price is unattractive.  
It priced its IPO at HK$205 and closed -2% lower in the grey market. Our base-case DCF value of HK$186.88 per share is a 9% downside to the IPO price.  


Cloud Village (NetEase Music) IPO: Trading Debut

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.

<a href="https://www.smartkarma.com/entities/ximalaya-inc-2c0c15ff-2b5f-4d17-bb31-f33e3ae11b91" target="_blank" data-smartkarma-citation="entities:34265:1" rel="noopener">Ximalaya (XIM HK)</a> , a leading voice audio platform in China has filed for an IPO on the Hong Kong Stock Exchange after it suspended its plans of a US listing. The company filed for an IPO in the US in April this year, however, due to China’s regulatory crackdown on the country’s tech firms, particularly those who have sought for US listings, the company halted its plans of listing in the US. According to news media outlets, Ximalaya was planning to raise as much as US$500m through the IPO. According to CIC, Ximalaya was ranked the largest online audio platform in China in terms of average MAUs, total mobile listening time and total revenues in 2020.China is the world’s largest online audio market in terms of the number of online audio users. The online audio penetration rate (defined as mobile online audio MAU divided by total mobile internet MAU) in China is still below 20% compared to about 47% in the US. The online audio industry in China is forecasted to grow rapidly over the next few years driven by increasing supply of high-quality content, willingness to pay for content, rise of IoT and improving technologies.In our previous two insights, we discussed in detail the company’s business model, revenue drivers, margins and the outlook on the company. In this insight, we focus on the new data points on the company’s latest data filing.Read our previous two insights on Ximalaya:<a href="https://www.smartkarma.com/insights/ximalaya-ipo-diversified-revenue-channels-with-further-potential-to-monetise-users-and-content" target="_blank" data-smartkarma-citation="insights:51127" rel="noopener">Ximalaya IPO: Diversified Revenue Channels with Further Potential to Monetise Users and Content</a> <a href="https://www.smartkarma.com/insights/ximalaya-ipo-part-ii-unlikely-for-margins-to-improve-in-the-medium-term-quantamental" target="_blank" data-smartkarma-citation="insights:51329" rel="noopener">Ximalaya IPO (Part II): Unlikely for Margins to Improve in the Medium-Term (Quantamental)</a>

Ximalaya (XIM HK) , a leading voice audio platform in China has filed for an IPO on the Hong Kong Stock Exchange after it suspended its plans of a US listing. The company filed for an IPO in the US in April this year, however, due to China’s regulatory crackdown on the country’s tech firms, particularly those who have sought for US listings, the company halted its plans of listing in the US. According to news media outlets, Ximalaya was planning to raise as much as US$500m through the IPO. According to CIC, Ximalaya was ranked the largest online audio platform in China in terms of average MAUs, total mobile listening time and total revenues in 2020.China is the world’s largest online audio market in terms of the number of online audio users. The online audio penetration rate (defined as mobile online audio MAU divided by total mobile internet MAU) in China is still below 20% compared to about 47% in the US. The online audio industry in China is forecasted to grow rapidly over the next few years driven by increasing supply of high-quality content, willingness to pay for content, rise of IoT and improving technologies.In our previous two insights, we discussed in detail the company’s business model, revenue drivers, margins and the outlook on the company. In this insight, we focus on the new data points on the company’s latest data filing.Read our previous two insights on Ximalaya:Ximalaya IPO: Diversified Revenue Channels with Further Potential to Monetise Users and Content Ximalaya IPO (Part II): Unlikely for Margins to Improve in the Medium-Term (Quantamental) 

Ximalaya HKEx IPO: Better Disclosures, Absence of Education Services and Strong 1H2021 Results

China

Ximalaya operates as an audio sharing platform. The Company provides audiobooks, music, variety entertainment programs, news, and other audio contents. Ximalaya also provides technical consulting services.

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Ximalaya (XIM HK)

Pre-IPO Ximalaya - The Potential Risks and the Outlook

Ximalaya's path to profitability is from effective cost control, but it seems hard to address growth bottlenecks. AI technology may offer...

Xinyao (Criss) Wang

Aequitas 2022 Asia IPO Pipeline

We take a look at the Asia Pacific IPO pipeline for 2022. This list has been compiled on a best effort basis from tracking company filings and...

Sumeet Singh

Cloud Village (NetEase Music) IPO: Trading Debut

Cloud Village will commence trading on Thursday, 2 December. Our base-case DCF value of HK$186.88 per share is a 9% downside to the IPO price of...

Arun George

Ximalaya HKEx IPO: Better Disclosures, Absence of Education Services and Strong 1H2021 Results

Ximalaya has filed for an IPO on the HKEx after it halted its US IPO. HKEx filing offers better disclosures on segments and the company's revenues...

Shifara Samsudeen, ACMA, CGMA

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Pre-IPO Ximalaya - The Potential Risks and the Outlook

​Ximalaya's path to profitability is from effective cost control, but it seems hard to address growth bottlenecks. AI technology may offer...

Xinyao (Criss) Wang

Aequitas 2022 Asia IPO Pipeline

We take a look at the Asia Pacific IPO pipeline for 2022. This list has been compiled on a best effort basis from tracking company filings and...

Sumeet Singh

Cloud Village (NetEase Music) IPO: Trading Debut

Cloud Village will commence trading on Thursday, 2 December. Our base-case DCF value of HK$186.88 per share is a 9% downside to the IPO price of...

Arun George

Ximalaya HKEx IPO: Better Disclosures, Absence of Education Services and Strong 1H2021 Results

Ximalaya has filed for an IPO on the HKEx after it halted its US IPO. HKEx filing offers better disclosures on segments and the company's revenues...

Shifara Samsudeen, ACMA, CGMA

Ximalaya's path to profitability is from effective cost control, but it seems hard to address growth bottlenecks. AI technology may offer...