YY shares soared all the way, so that domestic investors envy

Each reporter Jiali Juan intern reporter Yuan Dong

Since its listing on the Nasdaq, YY's stock price soared, giving domestic investors envy. Today, pigeon interactive Hong Kong debut show what kind of performance? Judging from the new speculation in the Hong Kong stock market, despite the fact that Pigeon Interactive is not performing well on the fundamentals, it still will benefit from the identity of its YY shadow share in the initial stages of IPO.

Market value and YY huge difference

Pigeon interaction was used by many investors compared with YY. For now, in addition to the different business scope, the market capitalization of the two companies can not be the same.

On November 21, 2012, YY opened at $ 10.5 a share on the NASDAQ first day of listing, and then soared to $ 90.93 all the way up to a whopping 7.66x! After the stock price fluctuations, but still remained at 75 US dollars. As of yesterday (July 8), YY price-earnings ratio of about 48 times the total market value of about 4.184 billion US dollars, yesterday's exchange rate converted to 324.1 billion Hong Kong dollars. In 2013, YY Online Music accounted for 46.8% of the total, with a simple calculation of 50%. The value of YY Online Music was HK $ 16.2 billion.

However, the market value of pigeons interaction is quite different. The prospectus shows that if the sale price of 5.30 Hong Kong dollars, the company's total market capitalization of 6.451 billion Hong Kong dollars. In the end, the price for the interactive pigeon goddess was set at HK $ 5.28. The total market value of the convertible bonds was about HK $ 6.427 billion, only a third of the YY music portion.

"We do not think the YY share price rise is a bubble because the company is profitable and has room for growth in the future with a CAGR of 45% from 2014 to 2016." A GF Securities (Hong Kong) analyst told "Every Japan Economic News "reporter.

Analysys think tank analyst Roland also believes that YY share price rise and its own pricing is not high and the previous good performance related.

A long-term tracking YY investors told reporters that YY's operating expenses growth has been less than revenue growth, net profit margin is expected to continue to rise. What YY is doing now is also a diversified business development that can get rid of excessive dependence on music. Even if the future YY growth slowed to 30% level, the current valuation is also affordable.

However, for the interaction between the pigeons and the pigeons, the above investors said: "I am not interested in any new shares of private-owned enterprises in Hong Kong. And the growth rate of pigeons in these past few years is not good."

However, Anxin International Research believes that the interaction with the sky pigeons have the advantage of valuation. According to the interactive offer price of pigeon, the company's static PE ratio in 2013 was about 22.4-26.4 times, while that of YY was 56 times in 2013. Coupled with the industry's rapid growth, the Company was given a more optimistic rating on the IPO-specific rating of "7" (Rating is 0 to 10, 10 is the highest).

Listed probability of broken low

From June to yesterday, a total of 23 new shares were listed on the Hong Kong Stock Exchange. Twelve of them were hit by a broken fortune with a breakout rate of 52%. In the recent market conditions frequently break new shares in Hong Kong, the day pigeon interaction can go out of the market after the independent market?

At least during the IPO phase, the interaction between the days of pigeons is widely sought after. The Company announced yesterday that it received 7502 valid applications in the IPO portion of Hong Kong with an amount of HK $ 2,316 million and an over-subscription of 76.13 times. The Company has initiated a strike-back mechanism whereby the public offering in Hong Kong partially accounts for 40% of the total number of the Offer Shares. The final fund-raising amount of 15.03 billion Hong Kong dollars. IPO price range of 4.5 to 5.3 Hong Kong dollars, and ultimately close to the IPO price of 5.28 Hong Kong dollar pricing.

Since the total market capitalization calculated based on the issue price is only a fraction of YY and the concept is unique, market participants believe that the probability of the pigeons interacting with the recent IPO break is small. As of press time, Phillip data show, dark pigeons Interaction dark plate price of 6.13 Hong Kong dollars, the issue price has more than 15%.

It is worth mentioning that in the Hong Kong Stock Exchange, there will often be a number of "alternative" companies, which are favored by investors for their unique businesses. Boyaa Interactive (0434, HK), which is based on the concept of Texas Hold'em, is typical example of.

"The interactive business model of Pigeon is unique in the Hong Kong market and investors are happy to give a premium on the valuations of some companies with unique businesses. The Hong Kong market has a positive view of the Pigeons. The company introduced a number of heavyweights such as Liu Central and Qihoo 360 is one example. "The above GF Securities (Hong Kong) analysts said.

"Rich Dad" can bring surprises?

Heavenly Pigeons interactive prospectus shows that after the sale is completed, the company founder and its trust company holds a 24.23% stake in Tiange Interactive, the second largest shareholder of Sina Hong Kong, holding 23.76%, the third largest shareholder IDG, shares 15.84%.

It can be seen, Sina Hong Kong is the pivotal shareholder of the day pigeons, the future development of interactive pigeons will also rely on Sina's power. Heaven Giddy interactive community also accounts for this. In 2013, 9158 video community revenue accounted for 35.3%, Sina show 42.4%, Sina show 3.3%, other communities accounted for 15.4%. In other words, Sina-related community revenue accounted for 45.7% of total revenue, nearly half.

Prospectus shows that the Company and SINA Group have entered into an IP agreement with SINA Show and SINA Corporation has granted the Company exclusive license to use Sina Display, Sina Show and a number of other products, Sina Show Label and Sina Show Names, and non-exclusive use of Sina Show Logo Rights, the license is valid until 2020. Sina Group promotes Sina show on its portals and platforms (such as Sina Weibo) and sells advertising banners for its customers to its customers in the community as well as providing technical and operational support to Tian Ge. It can be inferred that SINA will continue to support the day pigeons, and even increase their efforts. The prospectus also shows that both parties intend to renew the agreement after expiration of the deadline.

In addition, the fundamental investors will also promote the future development of pigeons, such as the Qihoo 360 channels, may be the day of the transformation of the pigeons, especially the mobile game business to play a role.

Therefore, some market participants pointed out that a strong shareholder background may be the most imaginative part of the interaction between the days of pigeon. In the future there is a possibility of narrowing the gap with YY, which is also one of the reasons why it has characteristics of YY shadow stocks. If the Nasdaq listed YY stock prices continue to rise, the probability of interaction with the trend of interactive pigeons big.

Yesterday, the reporter called for the listing and related issues pigeons interaction, public relations officers said the company listed before going public will remain "silent", temporarily do not reply.