IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

Arun has over 15 years’ experience covering the Technology sector. During this time, he has worked with technology start-ups and as an equity analyst in investment banks and independent research firms. He was formerly a Technology Analyst for Canaccord Genuity, Altium Securities, Espirito Santo Investment Bank, Noble Group and Clear Capital. He has a dual Master’s degree in Financial Engineering and Industrial and Operations Engineering from the University of Michigan. He obtained his Bachelor’s degree in Mechanical Engineering from the Indian Institute of Technology, Bombay. He is also a CFA charterholder.

IPOs and Catalysts/Events

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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

<p><a href="https://www.smartkarma.com/entities/bilibili-inc" target="_blank" data-smartkarma-citation="entities:26793:1" rel="noopener">Bilibili Inc (BILI US)</a> is a Chinese online video platform themed around anime, manga, and game fandom and targeted at the young generations in China. Bilibili ranked top five in terms of brand awareness in Gen Z+ users among video-centric platforms in China in 2020, according to iResearch. Bilibili passed its Hong Kong listing committee hearing and could raise up to $3 billion through a secondary listing, according to press reports. </p><p>Bilibili’s focus on Gen Z+ users allows it to benefit from their growing consumption needs in conjunction with their increasing spending power. Bilibili is one of the fastest-growing major Chinese internet companies. The revenue growth is increasingly fuelled by the creation of more consumption scenarios and higher paying user conversion. Largely due to the high growth narrative, Bilibili gets a free pass from investors on the widening losses and FCF burn. Nevertheless, Bilibili’s ambition is to deliver operating leverage and FCF generation over the medium-term, which is reflected in consensus estimates. </p><div class="content-highlight"><p>Overall, Bilibili has made great strides in expanding its user base (Gen Z to Gen Z+) and subsequently monetising this expanded user base through the diversification of its revenue streams and lowering its reliance on key games titles. The top-line metrics are strong, and the bottom-line metrics will likely improve in the medium term, in our view. Overall, we believe that Bilibili is fairly valued at the last close, and would look at any share price weakness to add/build a position. </p></div>

Bilibili Inc (BILI US) is a Chinese online video platform themed around anime, manga, and game fandom and targeted at the young generations in China. Bilibili ranked top five in terms of brand awareness in Gen Z+ users among video-centric platforms in China in 2020, according to iResearch. Bilibili passed its Hong Kong listing committee hearing and could raise up to $3 billion through a secondary listing, according to press reports. Bilibili’s focus on Gen Z+ users allows it to benefit from their growing consumption needs in conjunction with their increasing spending power. Bilibili is one of the fastest-growing major Chinese internet companies. The revenue growth is increasingly fuelled by the creation of more consumption scenarios and higher paying user conversion. Largely due to the high growth narrative, Bilibili gets a free pass from investors on the widening losses and FCF burn. Nevertheless, Bilibili’s ambition is to deliver operating leverage and FCF generation over the medium-term, which is reflected in consensus estimates. Overall, Bilibili has made great strides in expanding its user base (Gen Z to Gen Z+) and subsequently monetising this expanded user base through the diversification of its revenue streams and lowering its reliance on key games titles. The top-line metrics are strong, and the bottom-line metrics will likely improve in the medium term, in our view. Overall, we believe that Bilibili is fairly valued at the last close, and would look at any share price weakness to add/build a position. 

Bilibili Secondary Listing: A Big-Sum Game