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>CPNG will provide Farfetch with a bridge loan to save it from default. In exchange, CPNG acquires Farfetch business and its US$ 460mn+ net debt.</li>
<li>For Farfetch to achieve profitability, CPNG will need to conduct major layoffs and cancel brand deals, but both are difficult to achieve, in our view.</li>
<li>CPNG only found limited overseas success in Taiwan, and EU poses an even greater challenge. We cut TP to US$ 14.1 on increased debt and FCF burden.</li>
</ul>


CPNG will provide Farfetch with a bridge loan to save it from default. In exchange, CPNG acquires Farfetch business and its US$ 460mn+ net debt.
For Farfetch to achieve profitability, CPNG will need to conduct major layoffs and cancel brand deals, but both are difficult to achieve, in our view.
CPNG only found limited overseas success in Taiwan, and EU poses an even greater challenge. We cut TP to US$ 14.1 on increased debt and FCF burden.


[Coupang Inc. (CPNG US, SELL, TP US$14.1) TP Change]: Farfetch May Glitter, but It Isn’t Gold

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>On 28th Mar 2023, <a href="https://www.smartkarma.com/entities/alibaba-group" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group (9988 HK)</a> announced that it would adopt a new organizational and governance structure, splitting into six major business groups and other investments.</li>
<li>Alibaba also stated that each of the business groups would be set up as an independent entity with its own board and the groups will eventually seek to list.</li>
<li>In our previous notes, we highlighted which divisions could list and looked at some of the divisions in more detail. In this note, we will talk about the international operations.</li>
</ul>


On 28th Mar 2023, Alibaba Group (9988 HK) announced that it would adopt a new organizational and governance structure, splitting into six major business groups and other investments.
Alibaba also stated that each of the business groups would be set up as an independent entity with its own board and the groups will eventually seek to list.
In our previous notes, we highlighted which divisions could list and looked at some of the divisions in more detail. In this note, we will talk about the international operations.


Alibaba Potential IPOs - Part 4 - An Early Look at International Operations

Event-Driven

<ul>
<li>Multiple new agencies have been reporting that <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> plans to trim its investment portfolio over the remainder of the year. </li>
<li>The reports have been coming in since the second half of the year and the company has been duly denying these rumors.</li>
<li>In this note, we look at Tencent’s shareholding in various companies to try and gauge which ones it could sell out of and how.</li>
</ul>


Multiple new agencies have been reporting that Tencent (700 HK) plans to trim its investment portfolio over the remainder of the year. 
The reports have been coming in since the second half of the year and the company has been duly denying these rumors.
In this note, we look at Tencent’s shareholding in various companies to try and gauge which ones it could sell out of and how.


Tencent Investee Selldown - The US$120bn Global Overhang

TMT & Consumer Independent Equity Research Analyst, Obex Capital Research

Aaron Gabin

TMT & Consumer Independent Equity Research Analyst

TMT & Consumer Independent Equity Research

Obex Capital Research

“Obex” is Latin for Barriers to Entry. Obex Capital Management’s investment philosophy is driven by an intense focus on which business model’s Barriers to Entry are able to withstand the ever increasing competitive disruption in the TMT and Consumer Sectors.

<ul>
<li>Palo Alto Networks produced an impressive FY4Q22 earnings, blowing out billings growth and showing an impressive display of "platformization"...only trades 8x forward revenues for 25-30% revenue and FCF growth.</li>
<li>Farfetch finally acquired Yoox Net a Porter, after over a year of speculation. Deal is excellent for FTCH, gives them a monopolistic position in lux ecommerce.</li>
<li>Netflix's Gray Man yet another example of the company's inability to create compelling big budget movies.</li>
</ul>


Palo Alto Networks produced an impressive FY4Q22 earnings, blowing out billings growth and showing an impressive display of "platformization"...only trades 8x forward revenues for 25-30% revenue and FCF growth.
Farfetch finally acquired Yoox Net a Porter, after over a year of speculation. Deal is excellent for FTCH, gives them a monopolistic position in lux ecommerce.
Netflix's Gray Man yet another example of the company's inability to create compelling big budget movies.


TMT Quick Hits: Palo Alto Networks, Farfetch, Netflix

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.

Private Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/forter-inc" target="_blank" data-smartkarma-citation="entities:35955:1" rel="noopener">Forter (1397978D LN)</a> uses machine learning to detect fraud and approve online transactions in real-time.</li>
<li>With the surge in online shopping with COVID-19, the amount of online fraud increased, allowing Forter to experience strong revenue growth.</li>
<li>New product innovations and a number of strong partnerships will continue to drive the company forward.</li>
</ul>



Forter (1397978D LN) uses machine learning to detect fraud and approve online transactions in real-time.
With the surge in online shopping with COVID-19, the amount of online fraud increased, allowing Forter to experience strong revenue growth.
New product innovations and a number of strong partnerships will continue to drive the company forward.


Forter: New Products and Strong Partnerships Driving Growth for Fraud Solutions

United Kingdom

Farfetch Limited retails apparel products. The Company operates an online platform that offers bags, coats, dresses, jackets, jewelry, swim wear, trouser, shoes, knitwear, suits, shorts, watches, and accessories. Farfetch serves customers worldwide.

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Farfetch (FTCH US)

[Coupang Inc. (CPNG US, SELL, TP US$14.1) TP Change]: Farfetch May Glitter, but It Isn’t Gold

CPNG saves Farfetch from default with a bridge loan, acquiring the business and its debt. Achieving profitability will require layoffs and...

Blue Lotus Research Institute

Alibaba Potential IPOs - Part 4 - An Early Look at International Operations

On 28th Mar 2023, Alibaba Group (9988 HK) announced that it would adopt a new organizational and governance structure. In this note, we take a look...

Sumeet Singh

Tencent Investee Selldown - The US$120bn Global Overhang

There have been multiple reports that Tencent (700 HK) plans to trim its investment portfolio over the remainder of the year. We look at Tencent's...

Sumeet Singh

TMT Quick Hits: Palo Alto Networks, Farfetch, Netflix

Palo Alto Networks produced an impressive FY4Q22 earnings, blowing out billings growth and showing an impressive display of...

Aaron Gabin

Forter: New Products and Strong Partnerships Driving Growth for Fraud Solutions

Forter uses machine learning to detect fraud and approve online transactions in real-time. With surge in online shopping with COVID-19, the amount...

Shifara Samsudeen, FCMA, CGMA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

[Coupang Inc. (CPNG US, SELL, TP US$14.1) TP Change]: Farfetch May Glitter, but It Isn’t Gold

​CPNG saves Farfetch from default with a bridge loan, acquiring the business and its debt. Achieving profitability will require layoffs and...

Blue Lotus Research Institute

Alibaba Potential IPOs - Part 4 - An Early Look at International Operations

On 28th Mar 2023, Alibaba Group (9988 HK) announced that it would adopt a new organizational and governance structure. In this note, we take a look...

Sumeet Singh

Tencent Investee Selldown - The US$120bn Global Overhang

There have been multiple reports that Tencent (700 HK) plans to trim its investment portfolio over the remainder of the year. We look at Tencent's...

Sumeet Singh

TMT Quick Hits: Palo Alto Networks, Farfetch, Netflix

Palo Alto Networks produced an impressive FY4Q22 earnings, blowing out billings growth and showing an impressive display of...

Aaron Gabin

Forter: New Products and Strong Partnerships Driving Growth for Fraud Solutions

Forter uses machine learning to detect fraud and approve online transactions in real-time. With surge in online shopping with COVID-19, the amount...

Shifara Samsudeen, FCMA, CGMA

CPNG saves Farfetch from default with a bridge loan, acquiring the business and its debt. Achieving profitability will require layoffs and...