Equity Analyst, LightStream Research

Shifara Samsudeen, FCMA, 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

<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/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>At the recent Gamescom-Cologne event, both Tencent and NetEase showcased their latest games. We believe that NetEase has a stronger game pipeline compared to Tencent.</li>
<li>According to our estimates, the total annual gross billings from all the games showcased by Tencent should be around RMB 9-12 bn, while NetEase's should be 10-13 bn. </li>
<li>This accounts for approximately 6.3% and 15.6% of their respective gaming revenues in 2024. We maintain a buy rating for both companies, but NetEase remains our top pick.</li>
</ul>


At the recent Gamescom-Cologne event, both Tencent and NetEase showcased their latest games. We believe that NetEase has a stronger game pipeline compared to Tencent.
According to our estimates, the total annual gross billings from all the games showcased by Tencent should be around RMB 9-12 bn, while NetEase's should be 10-13 bn. 
This accounts for approximately 6.3% and 15.6% of their respective gaming revenues in 2024. We maintain a buy rating for both companies, but NetEase remains our top pick.


[Blue Lotus Entertainment Sector Update]: NetEase Has Better Pipeline in Gamescom-Cologne

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.

<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>, Vietnam’s leading internet platform, aims to raise up to US$300m in its US IPO.</li>
<li>VNG is Vietnam’s leading homegrown digital ecosystem, as per the company, with diverse product offerings across games, communications and media, fintech and other opportunities</li>
<li>In this note, we talk about the not-so-positive aspects of the deal.</li>
</ul>



VNG (VinaGame) (VNG US), Vietnam’s leading internet platform, aims to raise up to US$300m in its US IPO.
VNG is Vietnam’s leading homegrown digital ecosystem, as per the company, with diverse product offerings across games, communications and media, fintech and other opportunities
In this note, we talk about the not-so-positive aspects of the deal.


VNG Pre-IPO - The Negatives - Vietnam’s Mini-Tencent

APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC IPOs & Placements

Chenqi Technology Limited / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/chenqi-technology-limited" target="_blank" data-smartkarma-citation="entities:40058:1" rel="noopener">Chenqi Technology Limited (CT HK)</a> is looking to raise US$300m in its upcoming Hong Kong IPO.</li>
<li>Chenqi Technology (Chenqi) is a mobility technology and service company in China.</li>
<li>Founded by the GAC Group and Tencent, its key offerings include (i) mobility services, (ii) technology services, and (iii) ecosystem services.</li>
</ul>



Chenqi Technology Limited (CT HK) is looking to raise US$300m in its upcoming Hong Kong IPO.
Chenqi Technology (Chenqi) is a mobility technology and service company in China.
Founded by the GAC Group and Tencent, its key offerings include (i) mobility services, (ii) technology services, and (iii) ecosystem services.


Chenqi Technology Limited Pre-IPO Tearsheet

Ethan Aw

Chongqing Hongjiu Fruit   / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/chongqing-hongjiu-fruit-co-ltd" target="_blank" data-smartkarma-citation="entities:36023:1" rel="noopener">Chongqing Hongjiu Fruit (6689 HK)</a> was listed on 5th Sep 2022, where it raised around US$71m in its Hong Kong IPO. Its one-year lockup will expire on 4th Sep 2023. </li>
<li>Chongqing Hongjiu Fruit (CHJF) is a multi-brand fresh fruit distributor in China with an end-to-end supply chain. As per CIC, it was the largest fruit distributor by revenue in 2022. </li>
<li>In this note, we will talk about the lock-up dynamics and updates since our last note.</li>
</ul>



Chongqing Hongjiu Fruit (6689 HK) was listed on 5th Sep 2022, where it raised around US$71m in its Hong Kong IPO. Its one-year lockup will expire on 4th Sep 2023. 
Chongqing Hongjiu Fruit (CHJF) is a multi-brand fresh fruit distributor in China with an end-to-end supply chain. As per CIC, it was the largest fruit distributor by revenue in 2022. 
In this note, we will talk about the lock-up dynamics and updates since our last note.


Chongqing Hongjiu Fruit Lockup Expiry - Price Has Come Back Down to Earth but Expect More Selling

China

Tencent Holdings Limited operates as an investment holding company. The Company, through its subsidiaries, provides Internet and mobile value-added services (VAS), online advertising, and e-commerce transactions. Tencent Holdings offers services to users worldwide.

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Tencent Holdings (ADR) (TCEHY US)

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, FCMA, CGMA

[Blue Lotus Entertainment Sector Update]: NetEase Has Better Pipeline in Gamescom-Cologne

At the recent Gamescom-Cologne event, both Tencent and NetEase showcased their latest games. We believe that NetEase has a stronger game pipeline...

Blue Lotus Research Institute

VNG Pre-IPO - The Negatives - Vietnam’s Mini-Tencent

VNG (VinaGame) (VNG US), Vietnam’s leading internet platform, aims to raise up to US$300m in its US IPO. In this note, we talk about the not-so...

Sumeet Singh

Chenqi Technology Limited Pre-IPO Tearsheet

Chenqi Technology Limited (CT HK) is looking to raise US$300m in its upcoming Hong Kong IPO. Chenqi Technology (Chenqi) is a mobility technology...

Clarence Chu

Chongqing Hongjiu Fruit Lockup Expiry - Price Has Come Back Down to Earth but Expect More Selling

Chongqing Hongjiu Fruit (6689 HK) was listed on 5th Sep 2022, where it raised around US$71m in its Hong Kong IPO. Its one-year lockup will expire...

Ethan Aw

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