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.

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/iqiyi-inc" target="_blank" data-smartkarma-citation="entities:26755:1" rel="noopener">IQIYI Inc (IQ US)</a> reported 4Q and full-year 2021 results on Tuesday. Revenue for the quarter declined 0.9% YoY to RMB7.39bn (vs consensus RMB7.31bn).</li>
<li>Operating losses for the quarter was RMB975.2m (vs consensus RMB1.33bn), about 13.2% of revenues compared to RMB1.31bn (17.5% of revenues) in 4Q2020.</li>
<li>IQiyi’s ADRs jumped 21.5% at the end of Tuesday’s close as the company mentioned that it expects quarterly non-GAAP operating break-even as soon as possible.</li>
</ul>



IQIYI Inc (IQ US) reported 4Q and full-year 2021 results on Tuesday. Revenue for the quarter declined 0.9% YoY to RMB7.39bn (vs consensus RMB7.31bn).
Operating losses for the quarter was RMB975.2m (vs consensus RMB1.33bn), about 13.2% of revenues compared to RMB1.31bn (17.5% of revenues) in 4Q2020.
IQiyi’s ADRs jumped 21.5% at the end of Tuesday’s close as the company mentioned that it expects quarterly non-GAAP operating break-even as soon as possible.


IQiyi: Huge Drop in Operating Losses Despite Flat Revenues; Path to Profits Becoming Clear

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>On 2nd Dec 2021, Securities Exchange Commission (SEC) issued Final amendments to implement the Holding Foreign Companies Accountable Act (HFCAA).</li>
<li>On 24th Mar 2021, SEC had issued Amendments, Seeks Public Comment on HFCAA. This was a follow up on the HFCAA.</li>
<li>In this note, we'll talk about the final amendments and its possible timelines and implications, and a possible trade setup.</li>
</ul>


On 2nd Dec 2021, Securities Exchange Commission (SEC) issued Final amendments to implement the Holding Foreign Companies Accountable Act (HFCAA).
On 24th Mar 2021, SEC had issued Amendments, Seeks Public Comment on HFCAA. This was a follow up on the HFCAA.
In this note, we'll talk about the final amendments and its possible timelines and implications, and a possible trade setup.


China ADRs Delisting - US Tightens and HK Loosens Requirements - Long/Short Basket Trade

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

<ul>
<li>The stock price plunged further after the news about layoff.</li>
<li>We believe this is not an opportunity to buy the stock.</li>
<li>We believe no manager can deal with the business environment that IQ faces.</li>
</ul>


The stock price plunged further after the news about layoff.
We believe this is not an opportunity to buy the stock.
We believe no manager can deal with the business environment that IQ faces.


IQiyi (IQ): Plunge After Layoff News, Not Opportunity at All

Equity Capital Markets

NetEase Cloud Music / Equity Capital Markets

<ul>
<li>Cloud Village raised net proceeds of HK$3,124m (US$406.1m) at HK$205 per share, which is the midpoint of the IPO price range of HK$190-220 per share.</li>
<li>At the IPO price of HK$205 per share, CV will have a market capitalisation of HK$42.6bn and a post-money EV of HK$34.5bn.</li>
<li>The HK offer and the international offer were oversubscribed by 8.92x and 1.7x respectively. Cornerstone investment accounted for 83.15% of the total shares offered at the IPO.</li>
</ul>


Cloud Village raised net proceeds of HK$3,124m (US$406.1m) at HK$205 per share, which is the midpoint of the IPO price range of HK$190-220 per share.
At the IPO price of HK$205 per share, CV will have a market capitalisation of HK$42.6bn and a post-money EV of HK$34.5bn.
The HK offer and the international offer were oversubscribed by 8.92x and 1.7x respectively. Cornerstone investment accounted for 83.15% of the total shares offered at the IPO.


Cloud Village IPO: Thoughts on First Day Trading

<ul>
<li>Cloud Village Inc. (CVI), also known as NetEase Music, raised around US$420m in its Hong Kong IPO.</li>
<li>The company has obtained investments from Baidu and Alibaba, along with other investors.</li>
<li>In this note, we will talk about the trading dynamics.</li>
</ul>


Cloud Village Inc. (CVI), also known as NetEase Music, raised around US$420m in its Hong Kong IPO.
The company has obtained investments from Baidu and Alibaba, along with other investors.
In this note, we will talk about the trading dynamics.


Cloud Village (NetEase Music) IPO Trading - One of the Lowest Insti Subscriptions Yet

China

iQIYI, Inc. offers video entertainment services. The Company provides movies, television dramas, variety shows, and other video contents. iQIYI offers services worldwide.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

iQIYI Inc (IQ US)

IQiyi: Huge Drop in Operating Losses Despite Flat Revenues; Path to Profits Becoming Clear

During iQiyi's 4Q2021 earnings call, the company mentioned that it expects quarterly non-GAAP operating breakeven as soon as possible. We discuss...

Shifara Samsudeen, FCMA, CGMA

China ADRs Delisting - US Tightens and HK Loosens Requirements - Long/Short Basket Trade

On 2nd Dec 2021, SEC issued Final amendments to implement the Holding Foreign Companies Accountable Act. In this note we will talk about the final...

Sumeet Singh

IQiyi (IQ): Plunge After Layoff News, Not Opportunity at All

The stock price plunged further after the news about layoff. We do not believe this is an opportunity to buy the stock. We believe no manager can...

Ming Lu

Cloud Village IPO: Thoughts on First Day Trading

CV raised net proceeds of HK$3,124m (US$406.1m) at HK$205 per share, which is the midpoint of the IPO price range. CV's IPO is overvalued and we...

Shifara Samsudeen, FCMA, CGMA

Cloud Village (NetEase Music) IPO Trading - One of the Lowest Insti Subscriptions Yet

Cloud Village Inc. (CVI), also known as NetEase Music, raised around US$420m in its Hong Kong IPO. In this note, we will talk about the trading...

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)