Financial News
Author: Zhai Ziqian
2021-01-03 11:47
Last update date: 2021-01-03 11:48
The IPO market in Hong Kong is very active in 2020. During the period, many large-scale IPOs will be listed. Many of the second-listed companies that have returned from the United States have driven Hong Kong to become one of the world’s major IPOs this year. The market estimates the amount of IPO funds raised throughout the year. Reached 390 billion yuan, the highest in the past 10 years.
The number of new stocks that performed well last year abounded everywhere, such as Simer (6969), Jiumaojiu (9922), Mingyuanyun (909), etc., whose growth rates were multiplied.
Entering 2021, Deloitte expects that there will be as many as 120 to 130 new stocks throughout the year. Based on the latest information, "Hong Kong 01" lists a series of must-draw new stocks for investors.
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IPO
1. fast hand
Kuaishou Technology, which submitted its listing application in November last year, is expected to become the focus of new stocks in the first quarter of this year.
According to internal media reports, the short video platform Kuaishou will be listed as soon as February 5 this year, with a valuation of up to US$50 billion, equivalent to HK$390 billion.
As the "first short video stock", its pre-IPO investors are strong, including stock king Tencent (0700), Baidu, Sequoia Capital, Temasek, etc.
In the first half of 2020, Kuaishou revenue recorded RMB 25.3 billion, an increase of 48% over the same period in 2019, and an adjusted net loss of RMB 6.3 billion.
The prospectus stated that the loss was mainly due to increased expenses for marketing, branding and advertising.
2. Didi Travel
China’s “Uber” online ride-hailing platform Didi Chuxing is believed to have been in contact with many Hong Kong people.
In the second half of last year, Didi Chuxing began to negotiate a listing plan with investment banks, with a valuation of more than US$60 billion, which translates to as much as HK$465 billion.
Foreign media reported that Didi Chuxing had hoped to go public in the United States, but due to the deterioration of Sino-US relations, some Chinese-funded technology companies have become targets of attacks by the United States, so it is considering listing in Hong Kong.
3. JD Logistics
JD.com (9618) spun off JD.com Health (6618) and listed it in Hong Kong last year. After the listing, JD.com Health performed well and was quickly included in the Hang Seng Technology Index and was sought after by a lot of funds.
This year, JD.com plans to spin off its subsidiary JD Logistics' IPO in Hong Kong. The valuation is as high as US$40 billion, which is equivalent to HK$310 billion; the scale of fund-raising is US$3 billion, which is equivalent to HK$23.2 billion.
4. Hi Tea
The mainland tea drink brand Heycha, which has caused a buzz in Hong Kong, plans to go public before the end of this year. It will raise funds ranging from 400 million to 500 million US dollars, which is equivalent to 3.1 billion to 3.9 billion Hong Kong dollars.
Hey Tea entered Hong Kong in 2018 and had 8 branches at its peak.
However, under the influence of social movements and the epidemic, it is reported that only one branch in Times Square, Causeway Bay remains.
5. Nai Xue no tea
Hey Tea’s old enemy Nayuki no tea, also plans to be listed in Hong Kong.
Naxue no Tea opened its first branch in the Peak District of Hong Kong in 2019 and intends to enter the US market.
However, under the influence of the epidemic, plans to enter New York were eventually shelved.
In addition to expanding its business in the United States, Naixue's Tea originally intended to go public in the United States, but was affected by the financial fraud of Ruixing Coffee and considered listing in Hong Kong.
6. Byte bounce
As for the Bytedance that fell into the Sino-US turmoil last year, it is expected to become a super-large new stock in Hong Kong this year. According to Sequoia Capital’s recent financing, it is estimated that Bytedance’s valuation is as high as US$180 billion, which is equivalent to HK$1.4 trillion. .
According to Reuters, Bytedance's advertising revenue this year has reached at least 180 billion yuan.
In addition to Douyin, ByteDance’s businesses include Watermelon Video, Today’s Headlines, Tomato Novels, Pippi Shrimp, and Qingyan Camera.
The parent company of the Chinese short video platform Douyin was asked by the US government to sell US assets within 90 days last August, including the overseas version of TikTok, but the deadline was extended twice.
It is reported that Bytedance has continued to negotiate with Wal-Mart and Oracle, and submitted a new plan to respond to the concerns of the US government.
Potential secondary listed Chinese concept stocks
1. Vipshop
Vipshop (U.S.: VIPS) may be unfamiliar to Hong Kong people. This company is one of the mainland e-commerce companies. It was established in 2008 and listed in the United States in 2012. It mainly sells discounted goods online.
In August last year, it was rumored that Vipshop would negotiate with the financial adviser on the secondary listing, and the company said at the time that there was no relevant news to share.
Vipshop recorded a revenue of RMB 23.18 billion in the third quarter of last year, an increase of 18.2% year-on-year; the company continued to record profits, earning RMB 1.244 billion in the quarter, an increase of 42.1% year-on-year.
The latest market value has reached 18.8 billion US dollars, equivalent to more than 140 billion Hong Kong dollars.
2. iQiyi
The long video platform iQiyi (US: IQ) is definitely one of the companies familiar to Hong Kong people, and it can be described as a "drama artifact".
As early as August last year, it was rumored that iQiyi was considering a second listing in Hong Kong and discussed related matters with Credit Suisse.
IQiyi’s performance in the third quarter of this year was relatively poor. During the period, revenue recorded 7.188 billion yuan, a year-on-year decrease of 2.8%; during the period, it continued to record a net loss of 1.161 billion yuan, a year-on-year decrease of 68.4%.
The latest market value reached US$13.75 billion, equivalent to more than HK$100 billion.
3. Bilibili
Bilibili (US: BILI), known as the "national version of Youtube", has been reported in October last year that the company has appointed 4 investment banks, including Morgan Stanley, Motong, Goldman Sachs and UBS to arrange for its second listing in Hong Kong .
Bilibili announced its third-quarter financial report in mid-November. Revenue increased by 73% year-on-year to RMB 3.226 billion; however, the loss attributable to shareholders increased by 165.6% to RMB 1.08 billion.
It is worth noting that the main income of Bilibili does not come from the live broadcast or advertising business, but the mobile game business.
Mobile game revenue during the period was 1.27 billion yuan, up 36.7% year-on-year.
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4. Pinduoduo
The news of Pinduoduo's (US: PDD)'s second listing in Hong Kong has been circulated repeatedly. There was a rumor that it could be listed in July last year. However, at that time, Pinduoduo also responded that there was no secondary listing plan, and no relevant plan has been announced yet.
The implementation of economic anti-monopoly on the beneficiary platform has benefited Pinduoduo as a second-tier e-commerce platform. Its share price has more than doubled since October, and its market value has exceeded US$200 billion.
5. Baidu
Baidu (US: BIDU) was listed on the Nasdaq in the United States as early as 2005, and its market value has increased to 75 billion US dollars, which is equivalent to 580 billion Hong Kong dollars.
Baidu launched its plan to return to Hong Kong for a second listing in July last year. The management, including founder and chairman Robin Li, have met with investment bank representatives in batches, but so far there has been no news.
In the three months ended September last year, Baidu’s revenue recorded RMB 28.23 billion, a slight year-on-year increase of 0.5%; profit attributable to shareholders was RMB 13.678 billion, a year-on-year increase of 3.14 times.
IPO investment outlook
