Report
EUR 93.41
For Business Accounts Only
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 a strong retail interest. We will avoid the deal.
Netjoy (云想科技) IPO - Alarming 1H2020, Avoid
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 a strong retail interest. We will avoid the deal.
Underlying
Netjoy Holdings Limited
Provider
Aequitas Research
Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.
Since 2015, we have covered 400+ IPOs and 450+ placements with a hit rate of 73% and 65%, respectively. We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic analysis.
Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis. We also provide a more quant driven analysis on placement/follow-on offerings.
Markets that we cover include:
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Ke Yan
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