IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

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<li>
<a href="https://www.smartkarma.com/entities/qingci-games" target="_blank" data-smartkarma-citation="entities:35240:1" rel="noopener">Qingci Games (6633 HK)</a> is a mobile game developer and publisher in China. It aims to raise net proceeds of US$125.5 million at the mid-point of the IPO price range.</li>
<li>In <a href="https://www.smartkarma.com/insights/qingci-games-ipo-future-imperfect-and-tense" target="_blank" data-smartkarma-citation="insights:62199" rel="noopener">Qingci Games IPO: Future, Imperfect and Tense</a>, we stated that it is uncertain if the declining trends in the key title can be offset by a new blockbuster title.  </li>
<li>Our valuation analysis suggests that the IPO price range is unattractive. Consequently, we give the IPO a pass. </li>
</ul>



Qingci Games (6633 HK) is a mobile game developer and publisher in China. It aims to raise net proceeds of US$125.5 million at the mid-point of the IPO price range.
In Qingci Games IPO: Future, Imperfect and Tense, we stated that it is uncertain if the declining trends in the key title can be offset by a new blockbuster title.  
Our valuation analysis suggests that the IPO price range is unattractive. Consequently, we give the IPO a pass. 


<ul>
<li>
<a href="https://www.smartkarma.com/entities/qingci-games" target="_blank" data-smartkarma-citation="entities:35240:1" rel="noopener">Qingci Games (6633 HK)</a> is a mobile game developer and publisher in China. It aims to raise net proceeds of US$125.5 million at the mid-point of the IPO price range.</li>
<li>The past is perfect and characterised by exponential growth and rising margins. However, the future is tense with a material decline in profitability flagged for 2H21.  </li>
<li>It is uncertain if the declining trends in the key title can be offset by a new blockbuster title. We discuss valuation in our next note. </li>
</ul>



Qingci Games (6633 HK) is a mobile game developer and publisher in China. It aims to raise net proceeds of US$125.5 million at the mid-point of the IPO price range.
The past is perfect and characterised by exponential growth and rising margins. However, the future is tense with a material decline in profitability flagged for 2H21.  
It is uncertain if the declining trends in the key title can be offset by a new blockbuster title. We discuss valuation in our next note. 


Qingci Games IPO: Future, Imperfect and Tense

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Last Week in Event SPACE:  Afterpay, SPH, ESR Cayman, Prosus/Naspers, Kingsoft, Milton, SOHO China

Equity Bottom-Up

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<p>In StubWorld this week ...</p>
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<p><a href="https://www.smartkarma.com/entities/indofood-sukses-makmur-tbk-p" target="_blank" data-smartkarma-citation="entities:1053:1" rel="noopener"></a>For what is a relatively straightforward holding company structure, <a href="https://www.smartkarma.com/entities/kingsoft-corp-ltd" target="_blank" data-smartkarma-citation="entities:492:1" rel="noopener">Kingsoft Corp (3888 HK)</a> provides a cheap proxy into <a href="https://www.smartkarma.com/entities/beijing-kingsoft-office-software-a" target="_blank" data-smartkarma-citation="entities:28842:1" rel="noopener">Beijing Kingsoft Office Software-A (688111 CH)</a>.</p>
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<p>Preceding my comments on Kingsoft are the weekly setup/unwind tables for Asia-Pacific Holdcos.</p>
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<p>These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent - of at least 20%.</p>
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<p>As always, more below the fold.</p>
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In StubWorld this week ...



For what is a relatively straightforward holding company structure, Kingsoft Corp (3888 HK) provides a cheap proxy into Beijing Kingsoft Office Software-A (688111 CH).



Preceding my comments on Kingsoft are the weekly setup/unwind tables for Asia-Pacific Holdcos.


These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent - of at least 20%.


As always, more below the fold.


StubWorld: Kingsoft (3888 HK) - Beijing Kingsoft's Inexpensive Proxy

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

<p>The bloodbath in Hong Kong and H-shares in the first week of July 2021 was mainly caused by the perceived worsening corporate governance to invest in Chinese companies as the Chinese regulator has gone more draconian on the new listing of the Chinese companies, especially for tech companies.  This will inevitably put downward pressure on the share prices of the tech companies but it will increase trading volume in the HK exchange, on the short term basis at least. In the long term, <a href="https://www.smartkarma.com/entities/hong-kong-exchanges-clearing" target="_blank" data-smartkarma-citation="entities:490:1" rel="noopener">HKEX (388 HK)</a> may be the only Exchange approved by the Chinese government for Chinese companies to raise money from foreign investors. <strong>Maintain Buy</strong>. </p>

The bloodbath in Hong Kong and H-shares in the first week of July 2021 was mainly caused by the perceived worsening corporate governance to invest in Chinese companies as the Chinese regulator has gone more draconian on the new listing of the Chinese companies, especially for tech companies.  This will inevitably put downward pressure on the share prices of the tech companies but it will increase trading volume in the HK exchange, on the short term basis at least. In the long term, HKEX (388 HK) may be the only Exchange approved by the Chinese government for Chinese companies to raise money from foreign investors. Maintain Buy. 

HK Exchange (388): Beneficiary of HK Tech Crack Down

China

Kingsoft Corporation Ltd. develops and markets computer software.  The Company develops role-playing computer games and security, word processing, and spreadsheet software.

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Kingsoft Corp (3888 HK)

Qingci Games IPO: Valuation Insights

Our valuation analysis suggests that the IPO price range is unattractive. Consequently, we give the IPO a pass. Pricing is set for 9 Dec and...

Arun George

Qingci Games IPO: Future, Imperfect and Tense

Qingci aims to raise net proceeds of US$125.5 million at the mid-point of the IPO price range. Overall, we believe the negatives outweigh the...

Arun George

Last Week in Event SPACE: Afterpay, SPH, ESR Cayman, Prosus/Naspers, Kingsoft, Milton, SOHO China

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

StubWorld: Kingsoft (3888 HK) - Beijing Kingsoft's Inexpensive Proxy

Kingsoft is only just off its all-time low stub and simple ratio levels. A 60% discount for a net ash holding company, Kingsoft provides an...

David Blennerhassett

HK Exchange (388): Beneficiary of HK Tech Crack Down

HKEX (388 HK) may be the only Exchange approved by the Chinese government for Chinese companies to raise money from foreign investors. Maintain Buy

Henry Soediarko

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