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.

Event-Driven

<ul>
<li>PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US listed China companies.</li>
<li>The Hong Kong visit was on the back of the 26th Aug 2022 announcement by PCAOB and CSRC that they had entered into an agreement with US authorities for access.</li>
<li>In this note, we'll talk about the latest developments, possible outcomes and implications.</li>
</ul>


PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US listed China companies.
The Hong Kong visit was on the back of the 26th Aug 2022 announcement by PCAOB and CSRC that they had entered into an agreement with US authorities for access.
In this note, we'll talk about the latest developments, possible outcomes and implications.


China ADRs Delisting - Friday Could Be Judgment Day for over US$800bn Mcap of Stocks

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

Equity Bottom-Up

<ul>
<li>The growth rate of advertising revenue rose to 36% YoY in 2Q23 from 22% YoY in 1Q23.</li>
<li>Bilibili continued to cut costs and expenses by dismissing employees in a game studio.</li>
<li>The share price has fallen enough, and we believe it is time to Buy.</li>
</ul>


The growth rate of advertising revenue rose to 36% YoY in 2Q23 from 22% YoY in 1Q23.
Bilibili continued to cut costs and expenses by dismissing employees in a game studio.
The share price has fallen enough, and we believe it is time to Buy.


Bilibili (9626): 2Q23, Cut Losses and Raised Growth, Upgrade to Buy

<ul>
<li>BILI’s revenue grew by zero YoY in 1Q22, but operating losses shrank significantly.</li>
<li>The company reduced the subsidies to video uploaders, so that uploaders have been leaving the app.</li>
<li>We believe the stock has an upside of 13% for yearend 2023. Downgrade to Hold.</li>
</ul>


BILI’s revenue grew by zero YoY in 1Q22, but operating losses shrank significantly.
The company reduced the subsidies to video uploaders, so that uploaders have been leaving the app.
We believe the stock has an upside of 13% for yearend 2023. Downgrade to Hold.


Blibili (9626 HK): 1Q23, Consequence of Subsidy Cut, Downgrade to Hold

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

<ul>
<li>It's time to revisit the network of Alibaba's ( <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd-d7b798e2-202d-4e01-9a1e-799e2ae8f0c7" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group Holding (9988 HK)</a> ) affiliated listed companies for near term investment opportunities</li>
<li>After investing in an ecosystem of online and offline companies over the last 10 years, Alibaba is rapidly restructuring its businesses to refocus on its most profitable opportunities</li>
<li>
<a href="https://www.smartkarma.com/entities/sun-art-retail-group-ltd" target="_blank" data-smartkarma-citation="entities:401:1" rel="noopener">Sun Art Retail (6808 HK)</a> will benefit from the synergies of Baba's restructuring</li>
</ul>


It's time to revisit the network of Alibaba's ( Alibaba Group Holding (9988 HK) ) affiliated listed companies for near term investment opportunities
After investing in an ecosystem of online and offline companies over the last 10 years, Alibaba is rapidly restructuring its businesses to refocus on its most profitable opportunities

Sun Art Retail (6808 HK) will benefit from the synergies of Baba's restructuring


BABA's Babies: They're All Grown Up Now! Sun Art Retail: A Restructuring Opportunity

Greater China Equity Long/Short Analyst

Eric Chen

<ul>
<li>BILIBILI shares have rallied more than 200% since early November on prospects of China exiting zero-COVID, short covering, and accelerated breakeven timeline.</li>
<li>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.</li>
<li>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.</li>
</ul>


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.


BILIBILI (BILI US): Can Achieving Breakeven Justify US$10bn Market Cap?

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.

Bilibili (9626 HK)

China ADRs Delisting - Friday Could Be Judgment Day for over US$800bn Mcap of Stocks

PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US...

Sumeet Singh

Bilibili (9626): 2Q23, Cut Losses and Raised Growth, Upgrade to Buy

The growth rate of advertising revenue rose to 36% YoY in 2Q23 from 22% YoY in 1Q23. Bilibili continued to cut costs by dismissing employees. The...

Ming Lu

Blibili (9626 HK): 1Q23, Consequence of Subsidy Cut, Downgrade to Hold

BILI’s revenue grew by zero YoY in 1Q22, but operating losses shrank significantly. The company reduced the subsidies to video uploaders, so that...

Ming Lu

BABA's Babies: They're All Grown Up Now! Sun Art Retail: A Restructuring Opportunity

Alibaba's subsidiary Sun Art Retail stands to benefit from its parent's restructuring initiative, unlocking value for shareholders

David Mudd

BILIBILI (BILI US): Can Achieving Breakeven Justify US$10bn Market Cap?

Simply achieving breakeven can't justify BILI's US$10bn market cap. Expect the company to be a leaner, profitable company yet without bright...

Eric Chen