Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

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 Bottom-Up

<ul>
<li>Baidu (BIDU)’s manager was arrested for gambling advertisements.</li>
<li>iQiyi (IQ) was banned in Taiwan.</li>
<li>Trip.com (TCOM)’s revenue continued to decrease QoQ in 2Q20.</li>
<li>China Literature (772 HK) raised novel writers’ revenue share from 50% to 70%.</li>
</ul>


Baidu (BIDU)’s manager was arrested for gambling advertisements.
iQiyi (IQ) was banned in Taiwan.
Trip.com (TCOM)’s revenue continued to decrease QoQ in 2Q20.
China Literature (772 HK) raised novel writers’ revenue share from 50% to 70%.


China Internet Weekly (28Sep2020): BIDU Manager Arrested, TCOM Revenue Shrank QoQ

Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

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.

<p>Tencent is up 36% YTD, helped by strength in its smartphone games which have seen revenue trend at quarterly levels 51% above those of 2019 so far this year. This has more than offset some slight weakness in Online Advertising but it is pertinent to examine operational metrics against history to try and garner some insight into the sustainability of recent trends.</p>

Tencent is up 36% YTD, helped by strength in its smartphone games which have seen revenue trend at quarterly levels 51% above those of 2019 so far this year. This has more than offset some slight weakness in Online Advertising but it is pertinent to examine operational metrics against history to try and garner some insight into the sustainability of recent trends.

Tencent - A Look at the Quantamentals and Sustainability of Recent Gaming Strength

<ul class="">
<li>Alibaba (BABA)’s Taobao inflated audience for live broadcast.</li>
<li>SEC is investigating iQiyi for revenue inflation.</li>
<li>The merger of DouYu (DOYU) and Huya (HUYA) will come true as we had expected in April.</li>
<li>Baidu (BIDU), China Literature (772), and Sohu (SOHU) released 2Q20 results.</li>
</ul>


Alibaba (BABA)’s Taobao inflated audience for live broadcast.
SEC is investigating iQiyi for revenue inflation.
The merger of DouYu (DOYU) and Huya (HUYA) will come true as we had expected in April.
Baidu (BIDU), China Literature (772), and Sohu (SOHU) released 2Q20 results.


China Internet Weekly (17Aug2020): Top Broadcaster Said Taobao Lied, Probe and Rumor on IQ

<ul>
<li>The growth rate of game continued to accelerate in 2Q20. However, game accounted for only 42% of total revenues.</li>
<li>WeChat Advertising and WeChat Pay have been slowing down.</li>
<li>Online TV is unsustainable and unprofitable.</li>
<li>We believe the stock has only an upside of 12%. Downgrade to Hold.</li>
</ul>


The growth rate of game continued to accelerate in 2Q20. However, game accounted for only 42% of total revenues.
WeChat Advertising and WeChat Pay have been slowing down.
Online TV is unsustainable and unprofitable.
We believe the stock has only an upside of 12%. Downgrade to Hold.


Tencent (700 HK): Game Accelerating, But Others Slowing Down, Limited Upside

Event-Driven

<p>Huya posted strong results yesterday with revenue beating consensus by 2.62% and EBIT growing 180% YoY excluding the impact of stock based compensation which was inflated this quarter. We examine recent cost trends to compare Huya and Douyu below.</p>

Huya posted strong results yesterday with revenue beating consensus by 2.62% and EBIT growing 180% YoY excluding the impact of stock based compensation which was inflated this quarter. We examine recent cost trends to compare Huya and Douyu below.

Huya – Nice Results and Why We Favour Huya Over Douyu

United States

DouYu International Holdings Limited operates as a holding company. The Company, through its subsidiaries, focuses on development of live game streaming. DouYu International Holdings serves customers in China.

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Douyu International Holdings (DOYU US)

China Internet Weekly (28Sep2020): BIDU Manager Arrested, TCOM Revenue Shrank QoQ

Baidu (BIDU)’s manager was arrested for gambling advertisements. iQiyi (IQ) was banned in Taiwan. Trip.com (TCOM)’s revenue continued to decrease...

Ming Lu

Tencent - A Look at the Quantamentals and Sustainability of Recent Gaming Strength

Tencent is up 36% YTD, helped by strength in its smartphone games which have seen revenue trend at quarterly levels 51% above those of 2019 so far...

Mio Kato

China Internet Weekly (17Aug2020): Top Broadcaster Said Taobao Lied, Probe and Rumor on IQ

Alibaba (BABA)’s Taobao inflated audience for live broadcast. SEC is investigating iQiyi for revenue inflation. The merger of DouYu (DOYU) and...

Ming Lu

Tencent (700 HK): Game Accelerating, But Others Slowing Down, Limited Upside

The growth rate of game continued to accelerate in 2Q20. However, game accounted for only 42% of total revenues. WeChat Advertising and WeChat Pay...

Ming Lu

Huya – Nice Results and Why We Favour Huya Over Douyu

Huya posted strong results yesterday with revenue beating consensus by 2.62% and EBIT growing 180% YoY excluding the impact of stock based...

Mio Kato

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52-week Range

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