GSX: Minimal Market Share; ~80% Fake Enrollment and Operational Irregularities

Muddy Waters Short Sell Report on GSX Techedu (跟谁学) - CFO's Explanation Helped

New Analysis on GSX's Numbers - More Evidence but Share Price Is Now 2x from May Low

APAC IPOs & Placements

Zhen Zhou, Toh

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

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<p><a href="https://www.smartkarma.com/entities/gsx-techedu-inc" target="_blank" data-smartkarma-citation="entities:28069:1" rel="noopener">GSX Techedu (GSX US)</a> reported its Q2 FY2020 results last night. Despite posting strong growth, share priced tanked last night as the company mentioned that it is facing an investigation by the SEC after numerous allegations from short-sellers.</p>
<p>In this note, we will briefly discuss Q2 results, things we've observed and share our thoughts on valuation.</p>
<p>We had discussed about GSX in our previous notes: </p>
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<ul style="list-style-type: disc;">
<li>
<a href="https://www.smartkarma.com/insights/muddy-waters-short-sell-report-on-gsx-techedu-cfo-s-explanation-helped" target="_blank" data-smartkarma-citation="insights:39513" rel="noopener">Muddy Waters Short Sell Report on GSX Techedu (跟谁学) - CFO's Explanation Helped</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/gsx-techedu-short-sell-reports-what-now" target="_blank" data-smartkarma-citation="insights:39160" rel="noopener">GSX Techedu (跟谁学) Short Sell Reports - What Now?</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/gsx-techedu-short-sell-report-quick-take-ball-is-already-back-in-citron-s-court" target="_blank" data-smartkarma-citation="insights:38441" rel="noopener">GSX Techedu (跟谁学) Short Sell Report Quick Take - Ball Is Already Back in Citron's Court</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/what-might-have-happened-at-luckin-coffee-trade-ideas-and-implication-for-other-adrs" target="_blank" data-smartkarma-citation="insights:38099" rel="noopener">What Might Have Happened at Luckin Coffee (瑞幸咖啡) + Trade Ideas and Implication for Other ADRs</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/tal-inflated-sales-quick-take-small-rev-contribution-large-impact" target="_blank" data-smartkarma-citation="insights:38247" rel="noopener">TAL Inflated Sales Quick Take - Small Rev Contribution, Large Impact</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/new-analysis-on-gsx-s-numbers-more-evidence-but-share-price-is-now-2x-from-may-low" target="_blank" data-smartkarma-citation="insights:40892" rel="noopener">New Analysis on GSX's Numbers - More Evidence but Share Price Is Now 2x from May Low</a> </li>
</ul>
</div>


GSX Techedu (GSX US) reported its Q2 FY2020 results last night. Despite posting strong growth, share priced tanked last night as the company mentioned that it is facing an investigation by the SEC after numerous allegations from short-sellers.
In this note, we will briefly discuss Q2 results, things we've observed and share our thoughts on valuation.
We had discussed about GSX in our previous notes: 




Muddy Waters Short Sell Report on GSX Techedu (跟谁学) - CFO's Explanation Helped 

GSX Techedu (跟谁学) Short Sell Reports - What Now? 

GSX Techedu (跟谁学) Short Sell Report Quick Take - Ball Is Already Back in Citron's Court 

What Might Have Happened at Luckin Coffee (瑞幸咖啡) + Trade Ideas and Implication for Other ADRs 

TAL Inflated Sales Quick Take - Small Rev Contribution, Large Impact 

New Analysis on GSX's Numbers - More Evidence but Share Price Is Now 2x from May Low 



GSX Q2 Results and SEC Probe Quick Take - Improved Disclosure but Still Looks Expensive

Gaotu Techedu

GSX Q2 Results and SEC Probe Quick Take - Improved Disclosure but Still Looks Expensive