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

Ke Yan, CFA, FRM

An inquisitive investment analyst with background in both finance and computing. Covering ECM research, biotech, market data analytics.

Asia Pac IPO & Placement Research, China biotech

Netjoy (云想科技) IPO Trading: Fairly Valued

Netjoy (云想科技) Pre-IPO: Growth Stalled for the Short Video Marketer

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.

Equity Capital Markets

Netjoy, a leading short video marketing solution player, launched book building to raise up to USD 183m via a listing in Hong Kong.Netjoy rode the wave of emergence of short video platforms such as Tiktok and Kuaishou. It specialises in short video marketing. Online gaming is the main spender on ads through Netjoy.We note that key operating metrics such as revenue per click and revenue per advertiser has been trending down during the track record period. The company's shareholders are mainly individuals with no significant investments from institutional investors. We look at the company's financial and operating performance in 1H2020. We think the company is in transition from low margin business into higher margin business. Revenue declined significantly but its margin improved. The company lost business from online gaming customers while gaining traction with financial service and e-Commerce customers. We think the deal is fairly valued and the cornerstone investors are mediocre. Its peer Joy Spreader didn't perform well despite strong retail interests. We will avoid the deal.<h2>Our previous coverage on Netjoy</h2><ul><li dir="ltr"><a href="https://www.smartkarma.com/insights/netjoy-pre-ipo-growth-stalled-for-the-short-video-marketer" target="_blank" rel="noopener">Netjoy (云想科技) Pre-IPO: Growth stalled for the short video marketer</a></li></ul>

Netjoy, a leading short video marketing solution player, launched book building to raise up to USD 183m via a listing in Hong Kong.Netjoy rode the wave of emergence of short video platforms such as Tiktok and Kuaishou. It specialises in short video marketing. Online gaming is the main spender on ads through Netjoy.We note that key operating metrics such as revenue per click and revenue per advertiser has been trending down during the track record period. The company's shareholders are mainly individuals with no significant investments from institutional investors. We look at the company's financial and operating performance in 1H2020. We think the company is in transition from low margin business into higher margin business. Revenue declined significantly but its margin improved. The company lost business from online gaming customers while gaining traction with financial service and e-Commerce customers. We think the deal is fairly valued and the cornerstone investors are mediocre. Its peer Joy Spreader didn't perform well despite strong retail interests. We will avoid the deal.Our previous coverage on NetjoyNetjoy (云想科技) Pre-IPO: Growth stalled for the short video marketer

Joy Spreader Interactive Technology (6988 HK)

Netjoy (云想科技) IPO: Alarming 1H2020, Avoid