SA News • Mon, Apr. 28
Kingsoft Q3 2014 Review: Not As Impressive As It Seems
- Kingsoft's Q314 once again shows robust financial metrics that mask a set of deteriorating operating metrics.
- Online gaming seems to be losing pricing power while engagement levels are trending lower for CMCM.
- Kingsoft and CMCM remain my short picks.
There are no Transcripts on KSFTF.
Mon, Dec. 1, 12:32 PM
- Chinese software/cloud services provider Kingsoft (OTCPK:KSFTF), fast-growing smartphone OEM Xiaomi, and Singaporean sovereign wealth fund Temasek are collectively investing $296M in 21Vianet (VNET +4.9%) at a price of $18/share (4% below Friday's close).
- Kingsoft is buying $172M worth of shares, Xiaomi $50M, and Temasek $94M. Kingsoft will also sign an MOU with 21Vianet under which "21Vianet will build, operate, maintain and provide technical support for new, state-of-art data centers in China to meet Kingsoft and its designated third party's next-generation cloud infrastructure requirements."
- 21Vianet is rallying on the news, recouping some of last week's post-earnings losses. Many Chinese Internet peers are off sharply.
Thu, May. 8, 10:02 AM
- After pricing its 12M-share IPO at $14 (within a range of $12.50-$14.50), Cheetah Mobile (CMCM) opened at $15.25 and is now at $16.25, up 16%.
- The Chinese mobile app/browser developer and Kingsoft (KSFTF) subsidiary sports a market cap of $2.25B, or 18x 2013 sales.
- Prospectus, IPO preview, analysis
- Previous: Cheetah's 2013 results/product details
Mon, Apr. 28, 2:37 PM
- Cheetah Mobile is looking to raise $150M-$174M by selling 12M shares under the symbol CMCM. Its price range spells a valuation range of $1.73B-$2.00B for the Chinese security/utility/browser app developer and Qihoo rival, or 15x trailing sales at the midpoint.
- Parent Kingsoft (KSFTF) will have a 53.5% post-IPO voting stake.
- The recent selloff in Chinese Internet stocks (and tech momentum plays in general) is likely to affect Cheetah's post-IPO valuation. Weibo and Leju both turned in strong debuts 11 days ago with the help of conservative pricing.
- Previous: Cheetah Mobile files for IPO
Fri, Apr. 4, 5:58 PM
- Cheetah Mobile, a Chinese provider of security, browser, and utility apps, has filed for a $500M IPO. No symbol has been given yet. Morgan Stanley, JPMorgan, Credit Suisse, and Macquarie are underwriting.
- Cheetah is a subsidiary of Hong Kong-listed Kingsoft (KSFTF), which currently owns a 54.1% stake. Its product line includes file-cleaning/privacy app Clean Master (83.9M MAUs as of December), battery-saving app Battery Doctor (52.5M MAUs), Web anti-virus app Duba (141M MAUs), photo collage app Photo Grid (20.9M MAUs), and the Cheetah Browser (50.6M MAUs).
- Its products square off against Qihoo's (QIHU) widely-used security apps and browser. Cheetah had 329.5M total MAUs at the end of 2013, and Qihoo 475M.
- Like Qihoo, Cheetah depends heavily on ad sales (81.7% of 2013 revenue) to monetize its free apps, and also generates revenue by publishing games. Revenue soared 160% in 2013 to $123.9M; net income totaled $10.2M.
- TechNode observes Cheetah CEO Sheng Fu was once the right-hand man of outspoken Qihoo CEO Hongyi Zhou. Qihoo has sued Fu for allegedly using confidential info and breaking a non-compete agreement.
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