Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

Smartkarma

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I initiated trade idea of SINA / WB on July 21st (<a href="https://www.smartkarma.com/insights/sina-wb-stub-ratio-at-all-time-low" target="_blank" data-smartkarma-citation="insights:4697">SINA / WB: Stub, Ratio at All Time Low</a>). Both <a href="https://www.smartkarma.com/entities/22691" target="_blank" data-smartkarma-citation="entities:22691:1">Sina Corp (Class A) (SINA US)</a> and <a href="https://www.smartkarma.com/entities/3826" target="_blank" data-smartkarma-citation="entities:3826:1">Weibo Corp (ADR) (WB US)</a> reported 2Q results last night. The stellar overnight performance of both stocks tells a lot about how the numbers beat the street's expectations. In this insight, I will provide a quick update of how the trade has moved since my initiation and how will the latest result impact the trade. First, SINA's discount to NaV is returning to its…

I initiated trade idea of SINA / WB on July 21st (SINA / WB: Stub, Ratio at All Time Low). Both Sina Corp (Class A) (SINA US) and Weibo Corp (ADR) (WB US) reported 2Q results last night. The stellar overnight performance of both stocks tells a lot about how the numbers beat the street's expectations. In this insight, I will provide a quick update of how the trade has moved since my initiation and how will the latest result impact the trade. First, SINA's discount to NaV is returning to its…

SINA / WB: Post 2Q Update, Portal Did Well, Stub Remains Cheap

Independent TMT Analyst

Edison Lee, CFA

Equity Bottom-Up

<ul>
<li>The PBOC is tightening its control over online payment platforms. Owing to the strict requirement to implement the "real name basis" for every third-party online payment account, <a href="https://www.smartkarma.com/entities/26" target="_blank" data-smartkarma-citation="entities:26:1">Tencent Holdings Ltd (700 HK)</a>'s WePay platform has been reportedly forced to close down 3,000 merchants' online payment function.</li>
<li>A significant e-Commerce platform has developed on the back of Tencent's QQ, Weixin and WeChat services, utilizing the "Circle of Friends" functionality and Tencent's WePay system. However…</li>
</ul>


The PBOC is tightening its control over online payment platforms. Owing to the strict requirement to implement the "real name basis" for every third-party online payment account, Tencent Holdings Ltd (700 HK)'s WePay platform has been reportedly forced to close down 3,000 merchants' online payment function.
A significant e-Commerce platform has developed on the back of Tencent's QQ, Weixin and WeChat services, utilizing the "Circle of Friends" functionality and Tencent's WePay system. However…


China Internet - Downside Risk for 2H16 Driven by Tightened Regulations on Online Payment and News

<a href="https://www.smartkarma.com/profiles/286" target="_blank" data-smartkarma-citation="accounts:286">New Street Research</a> (NSR) first mentioned about SINA / WB trade in April ( <a href="https://www.smartkarma.com/insights/sina-weibo-capturing-the-shift-to-mobile-advertising-in-china" target="_blank" data-smartkarma-citation="insights:3400">Sina / Weibo: Capturing the Shift to Mobile Advertising in China</a>  ) and later met management of Sina (<a href="https://www.smartkarma.com/insights/sina-weibo-growth-in-advertising-verticals-and-social-commerce-sina-offers-cheap-entry-into-weibo" target="_blank" data-smartkarma-citation="insights:4229">Sina/Weibo: Growth in Advertising Verticals and Social Commerce. Sina Offers Cheap Entry into Weibo</a>). I'd like to provide more data points around this pair, thanks to our cloud based <a href="https://www.smartkarma.com/tools/holdcos" target="_blank">holding company analyzer</a>. <h2>Sina as a holding company</h2>A quick recap of what is in the <a href="https://www.smartkarma.com/entities/22691" target="_blank" data-smartkarma-citation="entities:22691:1">Sina Corp</a> 's holding company structure:<ul><li>55% of stake in …</li></ul>

New Street Research (NSR) first mentioned about SINA / WB trade in April ( Sina / Weibo: Capturing the Shift to Mobile Advertising in China  ) and later met management of Sina (Sina/Weibo: Growth in Advertising Verticals and Social Commerce. Sina Offers Cheap Entry into Weibo). I'd like to provide more data points around this pair, thanks to our cloud based holding company analyzer. Sina as a holding companyA quick recap of what is in the Sina Corp 's holding company structure:55% of stake in …

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Research is provided by our team of experienced analysts. Our work is idea driven, based on independence of thought, sector expertise, and firmly focused on fundamentals and valuation of telecoms and internet names globally. New Street is headquartered in London with offices in New York, Singapore and Australia. 

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Thematic (Sector/Industry)

We discussed the issues facing Chinese internet companies wanting to go through a delisting/relisting process in <a href="https://www.smartkarma.com/insights/china-internet-going-private-transactions-at-risk" target="_blank" data-smartkarma-citation="insights:4501">China Internet: Going Private Transactions at Risk</a> . Our view is that with the CSRC issuing tougher new rules for reverse listings in China, and the IPO pipeline full already, there were risks to the going private transactions already announced in the US. A number of these have now been withdrawn ( <a href="https://www.smartkarma.com/entities/285" target="_blank" data-smartkarma-citation="entities:285">YY Inc</a> and <a href="https://www.smartkarma.com/entities/21-vianet-group-inc-adr" target="_blank" data-smartkarma-citation="entities:8489">21 Vianet</a>), and more face issues.   Focus Media, a company that has…

We discussed the issues facing Chinese internet companies wanting to go through a delisting/relisting process in China Internet: Going Private Transactions at Risk . Our view is that with the CSRC issuing tougher new rules for reverse listings in China, and the IPO pipeline full already, there were risks to the going private transactions already announced in the US. A number of these have now been withdrawn ( YY Inc and 21 Vianet), and more face issues.   Focus Media, a company that has…

Focus Media:  An Example of Why Chinese Firms Want To "Come Home"

Founder, Riedel Research

David Riedel

Founder

Independent equity research on GEM Markets

Riedel Research

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SINA - Trading Below Value of Weibo Holding - BUY<ul class="ul1"><li class="li2">SINA is one of the most under-appreciated Internet investments in China.  The company owns the dominant ‘Twitter’ service in China as well as a widely used news portal.</li></ul><ul class="ul1"><li class="li2">The shares are currently trading below the value of their ownership in Weibo.</li></ul><ul class="ul1"><li class="li2">We believe this provides a profitable arbitrage opportunity.</li></ul><ul class="ul1"><li class="li2">We set the value of their Weibo stake at USD80/share (using a price for WB below the current market price) and use this as the SINA price target - This alone is nearly 60% higher than Sina’s market price.  BUY.</li></ul><ul class="ul1"><li class="li2">Non-Weibo revenues will continue to shrink, but this will help improve margins.</li></ul>

SINA - Trading Below Value of Weibo Holding - BUYSINA is one of the most under-appreciated Internet investments in China.  The company owns the dominant ‘Twitter’ service in China as well as a widely used news portal.The shares are currently trading below the value of their ownership in Weibo.We believe this provides a profitable arbitrage opportunity.We set the value of their Weibo stake at USD80/share (using a price for WB below the current market price) and use this as the SINA price target - This alone is nearly 60% higher than Sina’s market price.  BUY.Non-Weibo revenues will continue to shrink, but this will help improve margins.

SINA - Arbitrage Opportunity in Chinese Internet - Shares Could Double - BUY

China

SINA Corporation is a global Internet media company operating Chinese-language destination sites. The Company offers a network of branded content and services targeting people of Chinese descent worldwide. SINA.com offers online news, entertainment, community, and commerce through web sites that are produced and updated by local teams in China, Hong Kong, Taiwan, and North America.

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Sina Corp (Class A) (SINA US)

SINA / WB: Post 2Q Update, Portal Did Well, Stub Remains Cheap

I initiated trade idea of SINA / WB on July 21st (SINA / WB: Stub, Ratio at All Time Low). Both Sina Corp (Class A) (SINA US) and Weibo Corp (ADR)...

Ke Yan, CFA, FRM

China Internet - Downside Risk for 2H16 Driven by Tightened Regulations on Online Payment and News

The PBOC is tightening its control over online payment platforms. Owing to the strict requirement to implement the "real name basis" for every...

Edison Lee, CFA

SINA / WB: Stub, Ratio at All Time Low

New Street Research (NSR) first mentioned about SINA / WB trade in April ( Sina / Weibo: Capturing the Shift to Mobile Advertising in China ) and...

Ke Yan, CFA, FRM

Focus Media: An Example of Why Chinese Firms Want To "Come Home"

We discussed the issues facing Chinese internet companies wanting to go through a delisting/relisting process in China Internet: Going Private...

New Street Research

SINA - Arbitrage Opportunity in Chinese Internet - Shares Could Double - BUY

SINA - Trading Below Value of Weibo Holding - BUYSINA is one of the most under-appreciated Internet investments in China. The company owns the...

David Riedel

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