Equity Analyst, LightStream Research

Oshadhi Kumarasiri

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 Bottom-Up

<ul>
<li>Nikkei reports that a high ranking CCP official has suggested that the platforms possessing personal data should return around 20-30% of the revenue generated to the common prosperity cause. </li>
<li>We expect big tech to lose competitiveness as the government takes control of the use of personal data. Meanwhile the Chinese economic slowdown is a double blow to big tech. </li>
<li>If remaining investors lose faith and exit, big tech can trade at around 1.0-1.5x price to book in the next few years.</li>
</ul>


Nikkei reports that a high ranking CCP official has suggested that the platforms possessing personal data should return around 20-30% of the revenue generated to the common prosperity cause. 
We expect big tech to lose competitiveness as the government takes control of the use of personal data. Meanwhile the Chinese economic slowdown is a double blow to big tech. 
If remaining investors lose faith and exit, big tech can trade at around 1.0-1.5x price to book in the next few years.


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.

Equity Capital Markets

<ul>
<li>Weibo plans to raise around US$500-700m in its secondary listing in Hong Kong. </li>
<li>The company won listing approval and filed its PHIP on last week and will look to launch its secondary offering soon.</li>
<li>In this note, we’ll take a look at the deal and talk about the impact of the raising.</li>
</ul>


Weibo plans to raise around US$500-700m in its secondary listing in Hong Kong. 
The company won listing approval and filed its PHIP on last week and will look to launch its secondary offering soon.
In this note, we’ll take a look at the deal and talk about the impact of the raising.


Weibo Secondary Listing - Needs to Come at a Discount

<ul>
<li>Cloud Village Inc. (CVI), also known as NetEase Music, now plans to raise around US$500m in its Hong Kong IPO. </li>
<li>The company has also obtained investments from Baidu and Alibaba, along with other investors.</li>
<li>In this note, we will talk about the updates from the revised PHIP filing and relook at valuations.</li>
</ul>


Cloud Village Inc. (CVI), also known as NetEase Music, now plans to raise around US$500m in its Hong Kong IPO. 
The company has also obtained investments from Baidu and Alibaba, along with other investors.
In this note, we will talk about the updates from the revised PHIP filing and relook at valuations.


Cloud Village (NetEase Music) Pre-IPO - Revised PHIP Updates, Along with Revised Valuation

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

<ul>
<li>It is a basic rule in a Chinese company that one boss is better than two.</li>
<li>Mr. Cheng will be a better CEO than Mr. Su.</li>
<li>Mr. Su’s wife was removed from game business to business analysis center.</li>
<li>Mr. Su's loyal subordinate, Mr. Yan, left.</li>
</ul>


It is a basic rule in a Chinese company that one boss is better than two.
Mr. Cheng will be a better CEO than Mr. Su.
Mr. Su’s wife was removed from game business to business analysis center.
Mr. Su's loyal subordinate, Mr. Yan, left.


Kuaishou (1024 HK): Denied Office Politics Behind CEO Change, But It’s a Good Change Anyway

Shifara Samsudeen, FCMA, CGMA

Event-Driven

It was reported by Reuters and several other news media outlets on Friday (24th Friday) that <a href="https://www.smartkarma.com/entities/baidu-inc" target="_blank" data-smartkarma-citation="entities:179:1" rel="noopener">Baidu (BIDU US)</a>’s acquisition of <a href="https://www.smartkarma.com/entities/joyy-inc" target="_blank" data-smartkarma-citation="entities:285:1" rel="noopener">JOYY (YY US)'s </a> domestic video-based entertainment livestreaming business (known as YY Live) is unlikely to be approved by the country’s antitrust regulators. According to news media, Baidu’s acquisition of JOYY was included among the 11 transactions that were subject to anti-monopoly review by the state Administration for Market Regulation (SAMR) and the company has not yet received any negative update from the regulators on the deal.The government of China’s latest measures to crackdown on the country’s tech sector are focused on the gaming sector to reduce the long-term impact of gaming on the country’s younger population (those under 18 years of age). Given YY Live’s livestreaming business includes video-games related entertainment livestreaming, it appears unlikely that the deal will be approved as it will send the wrong signal to the market.In August, several news media outlets including Reuters reported that JOYY’s top two shareholders: David Li - Chairman and Lei Jun – founder of Xiaomi, plan to take the Nasdaq-listed company private. David Li and Lei Jun respectively owned 23.2% and 7.8% of JOYY with David Li having 76% of voting power (read our previous insight on JOYY's take-private deal: <a href="https://www.smartkarma.com/insights/joyy-inc-privatisation-our-thoughts-on-valuation" target="_blank" data-smartkarma-citation="insights:56917" rel="noopener">JOYY Inc Privatisation: Our Thoughts on Valuation</a> )

It was reported by Reuters and several other news media outlets on Friday (24th Friday) that Baidu (BIDU US)’s acquisition of JOYY (YY US)'s  domestic video-based entertainment livestreaming business (known as YY Live) is unlikely to be approved by the country’s antitrust regulators. According to news media, Baidu’s acquisition of JOYY was included among the 11 transactions that were subject to anti-monopoly review by the state Administration for Market Regulation (SAMR) and the company has not yet received any negative update from the regulators on the deal.The government of China’s latest measures to crackdown on the country’s tech sector are focused on the gaming sector to reduce the long-term impact of gaming on the country’s younger population (those under 18 years of age). Given YY Live’s livestreaming business includes video-games related entertainment livestreaming, it appears unlikely that the deal will be approved as it will send the wrong signal to the market.In August, several news media outlets including Reuters reported that JOYY’s top two shareholders: David Li - Chairman and Lei Jun – founder of Xiaomi, plan to take the Nasdaq-listed company private. David Li and Lei Jun respectively owned 23.2% and 7.8% of JOYY with David Li having 76% of voting power (read our previous insight on JOYY's take-private deal: JOYY Inc Privatisation: Our Thoughts on Valuation )

Baidu-JOYY: Blocking YY Live Acquisition Is More Problematic for JOYY

China

Baidu, Inc. operates an Internet search engine. The Company offers algorithmic search, enterprise search, news, MP3, and image searches, voice assistance, online storage, and navigation services. Baidu serves clients globally.

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Baidu (BIDU US)

China Considering a Data Tax on Big Tech

Investors are starting to rethink their investments in the Chinese tech space and the idea that investors should avoid Chinese tech stocks amidst...

Oshadhi Kumarasiri

Weibo Secondary Listing - Needs to Come at a Discount

Weibo plans to raise around US$500-700m in its secondary listing in Hong Kong. In this note, we talk about the deal and its impact.

Sumeet Singh

Cloud Village (NetEase Music) Pre-IPO - Revised PHIP Updates, Along with Revised Valuation

Cloud Village Inc. (CVI), also known as NetEase Music, now plans to raise around US$500m in its Hong Kong IPO. In this note, we talk about the...

Sumeet Singh

Kuaishou (1024 HK): Denied Office Politics Behind CEO Change, But It’s a Good Change Anyway

One boss is better than two and the new CEO, Mr. Cheng, is a better choice. The former CEO Mr. Su's wife was removed from game business and Mr....

Ming Lu

Baidu-JOYY: Blocking YY Live Acquisition Is More Problematic for JOYY

Baidu’s acquisition of JOYY's YY Live is unlikely to be approved by the country’s antitrust regulators and we think the deal falling apart is more...

Shifara Samsudeen, FCMA, CGMA

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