Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Equity Bottom-Up

<ul>
<li>China announced game approval last night, after 8 months of silence.</li>
<li>We discussed in our previous note that China would resume game approval.</li>
<li>There is no game approved for Tencent and Netease this round but we believe their approval will come in due time.</li>
</ul>


China announced game approval last night, after 8 months of silence.
We discussed in our previous note that China would resume game approval.
There is no game approved for Tencent and Netease this round but we believe their approval will come in due time.


Tencent/Netease: China Game Approval Resumption Is a Relieve, but Not Out of Tunnel

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

<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>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

<div>
<p>In StubWorld this week ...</p>
</div>
<div>
<div class="content-highlight">
<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>
</div>
</div>
<div>
<p>Preceding my comments on Kingsoft are the weekly setup/unwind tables for Asia-Pacific Holdcos.</p>
</div>
<div>
<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>
</div>
<div>
<p>As always, more below the fold.</p>
</div>


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

China

Kingsoft is a Chinese software and internet services company that develops office software, cloud services, and online games. Its key products include the WPS Office suite (WPS Office, WPS 365, WPS AI) and various PC and mobile games like JX Online 3. The company was founded in 1988 and is headquartered in Beijing, China.

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Kingsoft (3888 HK)

Tencent/Netease: China Game Approval Resumption Is a Relieve, but Not Out of Tunnel

China resumed game approval. We view this as a very positive development for game developers and to a larger extent the TMT industry.

Ke Yan, CFA, FRM

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

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