#fast #train #rich
It’s about to go on the market soon, are the old irons all on the bus?
The latest news shows that the Kuaishou team completed the analyst roadshow last Friday (January 18) and decided to launch the institutional IPO on January 25, and plans to list on February 5 this year. According to reports, Kuaishou has a target valuation of US$50 billion (approximately 390 billion Hong Kong dollars) and raises approximately US$5 billion (approximately HK$39 billion).
Although the company’s valuation has not yet been fully determined, as a popular player in the short video industry, Kuaishou, who has 300 million daily active users and 700 million monthly active users, has become a popular fried chicken in the capital market this year.
Investors are eagerly waiting to jump on the fast train, so as to earn the first pot of gold in 2021 and add a golden profitable meal to the Spring Festival dinner table.
Kuaishou’s code to get rich?
As one of the ace players in the short video industry, Kuaishou revealed the secret of short video business for the capital market.
The data disclosed in the prospectus shows that from 2017 to 2019 and the first three quarters of 2020, Kuaishou’s revenue was 8.3 billion yuan, 20.3 billion yuan, 39.1 billion yuan and 40.7 billion yuan respectively. Overall, the scale of revenue is growing rapidly The stage. Split into specific businesses, live broadcast revenue in the first three quarters of 2020 will be 25.3 billion yuan, online marketing services (advertising) revenue will be 13.3 billion yuan, and revenue from other services including e-commerce, online games, and online knowledge sharing will be 2 billion yuan. .
Data source: Kuaishou prospectus (as of January 22, 2021)
Up to now, live broadcast is still the most important monetization method for Kuaishou, with a revenue contribution rate of more than half (62%, 9M20), but its overall revenue structure is becoming diversified, and advertising and e-commerce are playing a more important role , The potential that these two businesses can create in the future will provide Kuaishou with longer-term motivation.
As far as the e-commerce business is concerned, with Li Jiaqi and Wei Ya’s going out of the circle, e-commerce live broadcasts have gone from hot to hot, igniting consumers’ enthusiasm for content e-commerce. Estimated data released by iResearch shows that my country’s live broadcast e-commerce market will reach 1.2 trillion in 2020, a year-on-year increase of nearly 200%.
Kuaishou e-commerce business was officially launched in October 2018 at the earliest, and Kuaishou stores were launched in May 2019 to improve the e-commerce infrastructure. According to the data disclosed by Kuaishou, as of September 2020, Kuaishou e-commerce DAU has exceeded 100 million, and the commercialization rate (Take Rate) is about 0.99%, which is lower than that of mainstream e-commerce platforms. Going to maturity, the increase in the realization rate will create more room for revenue growth for Kuaishou.
From the perspective of the advertising business, the popularization of mobile terminals has gradually eroded the market share of PC advertising in information flow advertising, and in information flow advertising, video streaming is gradually gaining a more competitive position. The main reason behind this is that the key influencing factors of advertising revenue depend on advertising inventory, unit price, and advertising load rate, while advertising inventory is closely related to DAU and user usage time.
2020.3-2020.6 User scale and utilization rate of various Internet applications by netizens
Image source: 46th “Statistical Report on Internet Development in China” (as of September 2020)
As a leader in the short video industry, Kuaishou’s user operating data is certainly attracting attention. According to the data set after the hearing, as of September 30, 2020, the average daily active users of Kuaishou’s Chinese apps and mini programs were 305 million, and the average monthly active users were 769 million. The average daily active users in Kuaishou apps The usage time exceeds 86 minutes and the average daily access to the Kuaishou application exceeds 10 times. User data can be said to be the inventory treasure of Kuaishou advertising.
This shows that whether it is e-commerce business or advertising business, the potential has become synonymous with Kuaishou listing. After listing, Kuaishou’s wealth password still has ample room to be tapped.
China’s concept stocks return to Hong Kong, a good opportunity for mainland investors
For investors who are keen on the Internet industry, Kuaishou is obviously an unmissable target. If you want to make a pot of gold when Kuaishou is listed, it is an inevitable choice to make new ones.
For investors who have never traded in Hong Kong and US stocks, finding a compliant and reliable Internet broker to start trading in Hong Kong and US stocks is of course the first step to get rich.
However, it is different from the background of investing in A-shares and quick deposits. For investors who buy Hong Kong and US stocks for the first time, they need enough time to exchange currency after opening an account. The time from opening an account to depositing is longer for those who are eager to make new deposits. Is a big obstacle. In response to this problem, emerging brokerage firms such as Huasheng, who are well versed in the investment threshold of Hong Kong and US stocks, also launched a “0 principal” campaign before Kuaishou IPO.
In fact, Kuaishou is only a typical representative of recent listings in Hong Kong. Behind this is the arrival of the Internet and China’s concept stock listings. According to Choice statistics, as of December 31, 2020, a total of 34 Chinese concept stock companies will be listed on the U.S. stock market in 2020 (excluding SPAC and OTC listings), which is a further increase from the 32 in 2019. Limited by foreign exchange quotas and investment convenience and other important factors, mainland investors have to passively miss this wave of Chinese Internet technology companies’ explosive dividends.
In 2020, with the successful listing of heavyweight Chinese concept stocks such as NetEase and JD.com in Hong Kong for the second time, China concept stocks once again set off a wave of return to Hong Kong. There are currently 10 Chinese concept stocks listed in Hong Kong, 9 of which were listed in 2020. According to the condition that the market value of Hong Kong stocks is not less than 40 billion Hong Kong dollars, or that the market value is not less than 10 billion Hong Kong dollars in the last year, there are nearly 30 Chinese concept stocks listed in the United States that meet this criterion.
Recently, the Hang Seng Index has changed from the previous downturn and started to strengthen. For investors, as the Hong Kong stock market is trending bullish, the arrival of China’s stocks returning to Hong Kong is a godsend opportunity. In this context, it is obviously a good start to experience the trading rules of investing in Hong Kong and U.S. stocks through the “new”.
Under the new economic wave, how can SMEs catch the IPO express
It is worth noting that, just as investors need reliable brokers to invest in Hong Kong and US stocks, for companies that want to raise funds, whether it is the first IPO or secondary listing in Hong Kong and the US, reliable brokers are also inseparable from the issuance work.
In addition to professional investment and financing solutions, these companies require investment banks to have strong public offering capabilities. In this regard, Huasheng has also proven to be an excellent partner. In the fourth quarter of 2020 alone, Huasheng played important roles such as global coordinator, exclusive placement agent, and exclusive arranger. The total financing scale of the primary market involved reached 2.9 billion US dollars. It also participated in Xinyuan Property (1895. HK), Xiangsheng Holdings (2599.HK), Jiayuan Services (1153.HK) and other Chinese real estate developers and their property management businesses have IPO in Hong Kong. As of November 2020, Huasheng has connected more than 300 institutional investors and organized more than 200 transactional roadshows.
According to the Bloomberg data terminal, as of July 22, 2020, Huasheng Securities/Valuable Capital has completed a total of 4 Chinese concept stocks listed on the US stock market with the bookrunner JBR (Joint Book Runner). In the second half of 2020, this data will continue to grow.
As an emerging brokerage firm, Huasheng has been committed to seeking to walk on two legs, namely To C (Hong Kong and US stock trading platform) and To B (Technology Financial Services). Among them, To C is embodied by investors creating a more open and dynamic communication community, a more convenient investment tool (Huashengtong APP), and a more intuitive user experience. In terms of To B, Huasheng focuses more on new economy companies and is committed to providing more new economy companies with IPO full-cycle financial services.
It should be noted that compared with large-scale financing projects such as Kuaishou, small and medium-sized enterprises are smaller and less concerned, and will encounter more difficulties in the process of listing in Hong Kong and the United States.
In response to the difficulty of financing and listing of small and medium-sized new economy companies, Huasheng actively provides customized IPO services for them. Huasheng has the license for securities trading, futures contract trading, advice on securities, advice on futures contracts, and asset management. It can provide consulting and roadshows for companies in preparation for listing, listing approval, roadshow bookkeeping and post-listing stages , Underwriting, distribution, ESOP solutions (one-stop equity incentive solutions) and other full-cycle financial services.
At present, Huasheng Securities has helped more than 20 new economy companies, including Funhuo, Uklink, Lichee FM, and Smart Insurance, successfully go public in the international IPO market.
In addition, Huasheng’s B-side business is not only reflected in providing comprehensive investment banking services for new economy companies, but also in more comprehensive financial services such as ESOP solutions. For example, Huasheng previously participated in a well-known domestic computer vision holographic cloud service company For an ESOP project, the main problem facing the company is that it is small in scale and the founders are business-oriented. The company has not carried out any systematic review of employee share incentives. In response to the company’s special situation, Huasheng provided corresponding solutions such as a systematic exercise structure and compliant fiscal and taxation arrangements. This allowed the company to quickly complete the optimization of the mechanism and the distribution of early incentives within 2 months. Although the financial service projects of these small and medium-sized economic enterprises are small in size, Huasheng is making a comprehensive layout and is striving steadily.
On January 18, 2021, Huasheng was shortlisted for the first time in KPMG’s “2020 China’s Leading Fintech Companies 50”, which means that Huasheng’s new financial service model driven by financial technology and technology has been initially verified and is expected to become China in the future. The backbone of the financial technology industry.
Generally speaking, the continuous emergence and rise of new economy enterprises is becoming a new trend. As a bridge between investors and small and medium-sized enterprises, Huasheng can help consumers catch the wave of the rise of the new economy on the one hand, and is also active on the other. Help more outstanding enterprises to gain the favor of investors.
For investors, as the popular fried chicken at the beginning of this year, it is of course important to get on the fast train to get rich, but what is more important is to leverage the explosion of the new economy to achieve long-term wealth appreciation.