In today’s briefing:
- BILIBILI (BILI US): Can Achieving Breakeven Justify US$10bn Market Cap?
- 2023 IPOs Pipeline Worldwide (Top 100 Companies)
- China Internet Weekly (12Dec2022): Bilibili, Tencent, JD.com
- NetEase: Initiation of Coverage – Market Position & Other Drivers
BILIBILI (BILI US): Can Achieving Breakeven Justify US$10bn Market Cap?
- BILIBILI shares have rallied more than 200% since early November on prospects of China exiting zero-COVID, short covering, and accelerated breakeven timeline.
- Yet simply achieving breakeven doesn’t justify its US$10 billion valuation. It has to be accompanied by decent profitable growth – an unlikely scenario given the aggressive downsizing needed for breakeven.
- BILI’s businesses also entail structurally low margin. Stock could easily de-rate by 30% or more when growth euphoria recedes and disappointed profitability checks in during 2023.
2023 IPOs Pipeline Worldwide (Top 100 Companies)
- This is our fourth annual edition of the IPOs Pipeline Worldwide (Top 100 Companies) report.
- Among 100 companies in our list, those from the US, India, China/HK, and the UK account for 79% of total.
- For those investors that closely monitor the global IPO opportunities, this is a good reference insight to check out the largest potential IPOs that could get completed next year.
China Internet Weekly (12Dec2022): Bilibili, Tencent, JD.com
- Bilibili is dismissing employees in live streaming, cartoon, and main station.
- The Chinese mobile game market began to expand, but the global market is shrinking.
- JD.com chairman reorganized its company, reducing the departments from eight to three.
NetEase: Initiation of Coverage – Market Position & Other Drivers
- This is our first report on online gaming giant, NetEase.
- In the quarter, the new expansion packs unveiled for the summer holidays, the legacy PC side of the company, which includes New Westward Journey Online 2 and Fantasy Westward Journey Online, continues to attract players.
- Among other updates, NetEase has recently announced that the company’s game division, NetEase Games, acquired Quantic Dream, one of the world’s major independent video game developers.
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