APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC 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.

Equity Capital Markets

Kuaishou Technology / Equity Capital Markets

<ul>
<li>DCM Investments is looking to raise US$484m via selling its remaining stake in <a href="https://www.smartkarma.com/entities/kuaishou-technology" target="_blank" data-smartkarma-citation="entities:29725:1" rel="noopener">Kuaishou Technology (1024 HK)</a>.</li>
<li>While the current block deal isn’t entirely well flagged per se, it appears that DCM has since been trimming its stake on the open market.</li>
<li>In this note, we run the deal through our ECM framework and comment on deal dynamics.</li>
</ul>


DCM Investments is looking to raise US$484m via selling its remaining stake in Kuaishou Technology (1024 HK).
While the current block deal isn’t entirely well flagged per se, it appears that DCM has since been trimming its stake on the open market.
In this note, we run the deal through our ECM framework and comment on deal dynamics.


Kuaishou Placement - US$480m Secondary Block Deal a Small One to Digest

Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet research

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

Equity Bottom-Up

<ul>
<li>Bilibili (BILI) reported C2Q24 revenue, GAAP operating profit, and GAAP net income in-line, 7.9%, 9.9% vs. our estimates and in-line, 12%, 18% vs. consensus. </li>
<li>BILI’s unique, urban user base and video format give it strong competitive advantage. Further, revenue from &lt;Three Kingdom&gt; game will be significant.</li>
<li>We raise our TP to US$20 and reiterate BUY .  </li>
</ul>


Bilibili (BILI) reported C2Q24 revenue, GAAP operating profit, and GAAP net income in-line, 7.9%, 9.9% vs. our estimates and in-line, 12%, 18% vs. consensus. 
BILI’s unique, urban user base and video format give it strong competitive advantage. Further, revenue from &lt;Three Kingdom&gt; game will be significant.
We raise our TP to US$20 and reiterate BUY .  


[Bilibili (BILI US, BUY, TP US$20) TP Change]: User Demographics&AI Drive China’s Video Instagram

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

<ul><li>BiliBili announced 2Q24 financial results: total revenue grew by 16% YoY to RMB6.13bn, in line with our/consensus estimate; adjusted net loss narrowed by 72% YoY to RMB271mn, better than our/consensus estimate of RMB329/317mn, primarily due to the better-than-expected GPM expansion (+6.8ppt YoY).</li><li>For 3Q24E, we expect total revenue will increase by 22% YoY, and Bili will achieve breakeven and register non-GAAP operating income of RMB184mn, mainly supported by the robust performance of high-margin mobile games and advertising businesses.</li><li>We cut our FY24 adjusted net loss estimate to RMB255mn (previous: RMB710mn) mainly to factor in the better-thanexpected earnings contribution from games and ads business.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

BiliBili announced 2Q24 financial results: total revenue grew by 16% YoY to RMB6.13bn, in line with our/consensus estimate; adjusted net loss narrowed by 72% YoY to RMB271mn, better than our/consensus estimate of RMB329/317mn, primarily due to the better-than-expected GPM expansion (+6.8ppt YoY).For 3Q24E, we expect total revenue will increase by 22% YoY, and Bili will achieve breakeven and register non-GAAP operating income of RMB184mn, mainly supported by the robust performance of high-margin mobile games and advertising businesses.We cut our FY24 adjusted net loss estimate to RMB255mn (previous: RMB710mn) mainly to factor in the better-thanexpected earnings contribution from games and ads business.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Bilibili (BILI US) - Strong games and ads businesses to pave way for breakeven in 3Q24E

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

<ul>
<li>Onshore Equity ETF flows in China continued to be positive for 8th week. Southbound Connect flows in July are lower than June.</li>
<li>Baidu, Bilibili and GDS have had positive share price moves on the back of news flow.</li>
<li>The container shipping segment has had a sharp pullback on positive Middle East news and cement maker CNBM flags a loss in the first half.</li>
</ul>


Onshore Equity ETF flows in China continued to be positive for 8th week. Southbound Connect flows in July are lower than June.
Baidu, Bilibili and GDS have had positive share price moves on the back of news flow.
The container shipping segment has had a sharp pullback on positive Middle East news and cement maker CNBM flags a loss in the first half.


The Heat Is On: News Flow and Sentiment China/Hong Kong (July 12)

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

<ul>
<li>BYD’s sales volume increased by 35% YoY in June and by 39% YoY in 2Q24.</li>
<li>Tesla’s Model Y is on the state-owned corporation procurement catalogs.</li>
<li>Microsoft plans to close its franchised store chain in China due to the weak demand for Surface.</li>
</ul>


BYD’s sales volume increased by 35% YoY in June and by 39% YoY in 2Q24.
Tesla’s Model Y is on the state-owned corporation procurement catalogs.
Microsoft plans to close its franchised store chain in China due to the weak demand for Surface.


China Consumption Weekly (8 Jul 2024): BYD, Seres, Tesla, Microsoft, XHS, Mixue

China

Bilibili Inc. provides online entertainment services. The Company offers a platform that covers a wide array of genres and media formats, including videos, live broadcasting, mobile games, animation, and comics. Bilibili serves customers in China.

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Bilibili (BILI US)

Kuaishou Placement - US$480m Secondary Block Deal a Small One to Digest

DCM Investments is looking to raise US$484m via selling its remaining stake in Kuaishou Technology (1024 HK). In this note, we run the deal through...

Clarence Chu

[Bilibili (BILI US, BUY, TP US$20) TP Change]: User Demographics&AI Drive China’s Video Instagram

Bilibili's strong performance in Q2 and unique user base position it for continued success, with revenue from game expected to drive growth....

Blue Lotus Research Institute

Bilibili (BILI US) - Strong games and ads businesses to pave way for breakeven in 3Q24E

BiliBili announced 2Q24 financial results: total revenue grew by 16% YoY to RMB6.13bn, in line with our/consensus estimate; adjusted net loss...

CMB International

The Heat Is On: News Flow and Sentiment China/Hong Kong (July 12)

ETF flows in China have continued to support the overall A share market while Southbound Connect flows support Hong Kong shares. Positive news for...

David Mudd

China Consumption Weekly (8 Jul 2024): BYD, Seres, Tesla, Microsoft, XHS, Mixue

BYD’s sales volume increased by 35% YoY in June and by 39% YoY in 2Q24. Tesla’s Model Y is on the state-owned corporation procurement catalogues....

Ming Lu

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Kuaishou Placement - US$480m Secondary Block Deal a Small One to Digest

DCM Investments is looking to raise US$484m via selling its remaining stake in Kuaishou Technology (1024 HK). In this note, we run the deal through...

Clarence Chu

[Bilibili (BILI US, BUY, TP US$20) TP Change]: User Demographics&AI Drive China’s Video Instagram

​Bilibili's strong performance in Q2 and unique user base position it for continued success, with revenue from game expected to drive growth....

Blue Lotus Research Institute

Bilibili (BILI US) - Strong games and ads businesses to pave way for breakeven in 3Q24E

BiliBili announced 2Q24 financial results: total revenue grew by 16% YoY to RMB6.13bn, in line with our/consensus estimate; adjusted net loss...

CMB International

The Heat Is On: News Flow and Sentiment China/Hong Kong (July 12)

ETF flows in China have continued to support the overall A share market while Southbound Connect flows support Hong Kong shares. Positive news for...

David Mudd

China Consumption Weekly (8 Jul 2024): BYD, Seres, Tesla, Microsoft, XHS, Mixue

BYD’s sales volume increased by 35% YoY in June and by 39% YoY in 2Q24. Tesla’s Model Y is on the state-owned corporation procurement catalogues....

Ming Lu

Bilibili's strong performance in Q2 and unique user base position it for continued success, with revenue from game expected to drive growth....