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GlobeNewswire (Mar 4, 2014)
GlobeNewswire (Feb 25, 2014)
GlobeNewswire (Feb 14, 2014)
YY vs. ETF Alternatives
Monday, Mar 103:57 PM
Monday, Mar 103:57 PM| 7 Comments
- Chinese Internet and solar names, many of them among the standouts of the 2013/2014 tech rally, are heading into the close with steep losses after the Chinese government reported exports fell 18.1% Y/Y in February (much worse than expected).
- Internet decliners: WUBA -10.7%. YOKU -7.3%. ATHM -7.2%. QUNR -6.4%. NQ -6%. RENN -5.2%. CTRP -5.2%. YY -4.4%. WBAI -4.4%. KONG -5.5%.
- Solar decliners: JKS -6.3%. YGE -5.8%. TSL -6.7%. CSUN -4.9%. CSIQ -4.5%. DQ -4.2%. HSOL -4.5%.
- Solar ETFs: KWT, TAN
Tuesday, Mar 44:25 PM
Tuesday, Mar 44:25 PM| Comment!
- YY expects Q1 revenue of RB625M-RMB635M ($101.8M-$103.4M), well above a $91.7M consensus.
- Q4 results blew away estimates in large part due to a 49% Q/Q and 217% Y/Y increase in online music/entertainment revenue to $55.6M (now 55% of total revenue). Paid users +17% Q/Q to 902K, ARPU +26% to RMB373.
- Online game revenue +6% Q/Q and +66% Y/Y to $26.9M. Paid users fell by 10K Q/Q to 433K, but ARPU rose 8% to RMB376. Games operated by YY rose by 15 to 126.
- Online ads -3% Q/Q and +29% Y/Y to $7.2M. Other revenue (membership fees, live game broadcasting) +21% Q/Q and +141% Y/Y to $11.5M.
- Gross margin rose 250 bps Q/Q and 360 bps Y/Y to 51.5%. Opex rose 37% Y/Y to $21.2M.
- Shares rose 14.9% in regular trading. After accounting for AH gains, they're up nearly 9x from a Nov. '12 IPO price of $10.50.
- Q4 results, PR
Tuesday, Mar 44:03 PM
Tuesday, Mar 412:10 AM
Monday, Mar 35:35 PM
Friday, Feb 282:16 PM
Friday, Feb 282:16 PM| 2 Comments
- Over the last 48 hours, Baidu, Dangdang, Youku, and 58.com have all posted Q4 beats and provided strong Q1 guidance. The numbers are giving a lift to a slew of Chinese Internet stocks.
- Notable gainers: SOHU +6.5%. PWRD +13.2%. VIPS +4.3%. YY +2.2%. RENN +3.8%. GOMO +5.5%.
- In Sohu's case, the rumor mill might also be helping out. A source tells Marbridge Consulting Sohu CEO Charles Zhang and Tencent (TCEHY +1.2%) CEO Pony Ma have talked about merging their companies' online video units. Both Sohu and Tencent trail market leaders Youku and Baidu in China's burgeoning online video market.
- Dangdang (DANG +8.6%) is adding to yesterday's big post-earnings gains after Oppenheimer hiked its PT to $15. The firm likes Dangdang's improved efficiency and partnerships with e-commerce rivals (inc. Alibaba's Tmall), and the fact mobile accounted for 13% of Q4 orders.
Friday, Feb 71:33 PM
Friday, Feb 71:33 PM| 1 Comment
- Deutsche has upgraded YY (YY +9.2%) to Buy, and in doing so has led the Chinese social networking/gaming platform to add to its already-large Friday gains.
- Shares are up over 6x from a Nov. '12 IPO price of $10.50. Q4 results are expected this month.
Tuesday, Jan 281:00 PM
Tuesday, Jan 281:00 PM| 1 Comment
- Chinese Internet stocks, crushed over the last few trading days amid SEC-related concerns and a general rout in tech momentum plays, are rebounding sharply today in tandem with other high-beta tech stocks.
- Possibly helping: The SEC has settled a dispute with Deloitte over its request for documents related to Longtop Financial, a Deloitte-audited Chinese firm suspected of accounting fraud. The settlement, which comes after the SEC received a "substantial volume" of requested docs, is fueling hopes the SEC's auditing ban on the Chinese arms of the big-4 accounting firms (including Deloitte) will be revoked, and a final resolution between U.S. and Chinese regulators achieved.
- Also: Morgan Stanley is calling the selloff a buying opportunity, and has picked five names it's a fan of - Baidu (BIDU +2.8%), YY (YY +14.5%), New Oriental (EDU +2.8%), Dangdang (DANG +6.8%), and Ctrip (CTRP +5.2%)..
- MS expects Baidu's margins (recently pressured by huge investments) to stabilize later this year with the help of accelerating sales growth; it's pleased with Ctrip's willingness to sacrifice near-term margins for share gains; it think Dangdang's e-commerce strategy is yielding margin improvement and better fulfillment efficiency; and it's a fan of YY's "sticky" user base and monetization potential (less than 2% of users are currently monetized).
- Major gainers include Sungy Mobile (GOMO +11.3%), 500.com (WBAI +18.3%), ChinaCache (CCIH +9.8%), Vipshop (VIPS +10%), Bitauto (BITA +9.5%), and Qunar Baidu-controlled (QUNR +8.8%).
Monday, Jan 275:40 PM
Thursday, Jan 239:59 AM
Thursday, Jan 239:59 AM| 9 Comments
- SEC administrative law judge Cameron Elliot has barred the Chinese units of the Big-4 accounting firms - KPMG, Deloitte, PwC, and Ernst & Young - from auditing U.S.-listed companies for six months.
- Elliot declares the accounting firms "willfully" chose to withhold audit work papers from U.S. regulators for Chinese companies being investigated for accounted fraud. The firms have been worried about violating Chinese privacy laws by turning over the papers, and have argued the dispute needs to be resolved politically.
- Though the firms plan to appeal and say they can continue serving Chinese clients for now, shares of Chinese Web and solar names aren't handling the news well. Soft Chinese PMI data could be worsening matters.
- Chinese Web decliners: BIDU -2.5%. SOHU -3.2%. DANG -8.9%. SFUN -8.5%. PWRD -8.5%. QUNR -7.1%. LITB -6.5%. YY -6.1%. WUBA -6%. BITA -5.4%. EJ -5.9%. SINA -4.6%. LITB -6.5%. CTRP -5.4%. NQ -7.1%.
- Chinese solar decliners: TSL -8.7%. JASO -6.9%. SOL -6.3%. JKS -5.6%. CSIQ -5.4%. DQ -4.6%. YGE -5.6%. CSUN -6.2%. HSOL -7.8%.
- Qihoo (QIHU -4.6%) has joined the selloff in spite of a BrightWire report stating Alibaba (ABABA) has reached a deal to acquire a stake in the company. Marbridge Consulting reported two weeks ago Qihoo and Alibaba were in talks about a possible investment.
Thursday, Jan 239:12 AM|Thursday, Jan 239:12 AM| Comment!
Friday, Dec 272013, 1:54 PM
Friday, Dec 272013, 1:54 PM| 1 Comment
- With high-flying Twitter (downgraded by Macquarie) leading the way, several Internet momentum plays that have delivered big 2013 gains are seeing some year-end profit-taking.
- In addition to Twitter, notable decliners include Netflix (NFLX -2.8%), Pandora (P -3.6%), Trulia (TRLA -2.7%), Zillow (Z -2.4%), and Groupon (GRPN -1.9%).
- On the other hand, many Chinese Internet names are adding to this year's gains. In addition to Baidu (buying Perfect World's e-book unit) and Ctrip (received a bullish T.H. Capital note), gainers include Sina (SINA +4.9%), Dangdang (DANG +4.8%), YY (YY +4%), 58.com (WUBA +3%), and NetEase (NTES +3.4%). An overnight Shanghai rally is likely helping.
Thursday, Nov 142013, 9:46 AM
Thursday, Nov 142013, 9:46 AM| Comment!
- YY (YY -3.1%) is offering $250M worth of convertible senior notes due Nov. 2018. The company can't redeem the notes before maturity; holders will be able to require YY to repurchase the notes starting in Nov. 2016 or "upon the occurrence of certain fundamental changes." Underwriters have a $50M overallotment option. (PR)
- The Chinese IM/social networking platform plans to use $50M of the proceeds to buy back share. Most of the rest will be used for "general corporate purposes, including working capital needs and potential acquisitions of complementary businesses."
- With YY having ended Q3 possessing $305M in cash/equivalents and no debt, the company doesn't have any pressing need for cash. That is, unless it plans to go acquisition hunting.
Wednesday, Nov 132013, 3:49 PM
Wednesday, Nov 132013, 3:49 PM| Comment!
- Six days after dropping in the face of Twitter's strong debut, high-flying Internet names are rallying in the wake of Chinese microblogging leader Sina's Q3 beat and strong Q4 guidance.
- The day has also seen a dismal IPO from online textbook rental leader Chegg, a WSJ report of a rejected $3B+ Facebook offer for Snapchat, and a vague afternoon rumor about M&A interest in Trulia from Realogy.
- U.S. standouts: ZNGA +7.4%. LNKD +4.8%. P +3.3%. ANGI +2.6%. GSVC +4.1% (owns a Chegg stake).
- Chinese standouts: QIHU +8.9%. SFUN +7.5%. LITB +6.4%. YY +6.9%. CYOU +6.3%. QUNR +5.7%. CTRP +3.7%.
- Baidu (BIDU +1.4%) is up moderately following news Chinese online video rivals Sohu (SOHU +1.7%) and Youku (YOKU +3%) have joined the MPAA and various entertainment/media companies in suing it for piracy. The assorted parties accuse Baidu of enabling piracy through its video search engine, as well as through video player apps and a TV dongle.
- The suit comes as Baidu ramps its content spending for its iQiyi and PPS video sites.
Wednesday, Nov 62013, 8:25 AM
Wednesday, Nov 62013, 8:25 AM| Comment!
- YY expects Q4 revenue of RMB510M-520M ($83.7M-$85.4M), above a $77.8M consensus. The Chinese IM/social networking platform has also announced CTO Tony Zhao will be leaving by year's end to "form a new company to be based in California."
- Music services revenue jumped 35% Q/Q and 161% Y/Y to $37.4M, and is now 47% of total revenue. Paid users rose by 136K Q/Q to 771K, and ARPU rose by RMB28 to RMB297.
- Online gaming revenue amounted to $25.3M, up 84% Y/Y but only 2% Q/Q. Paid users grew by 3K Q/Q to 443K, and ARPU rose fractionally to RMB347. YY hosted 111 games at the end of Q3, up from 96 at the end of Q2.
- Online ads +7% Q/Q and +36% Y/Y to $7.4M. Other revenue (memberships, live game broadcasting) +33% Q/Q and +145% Y/Y to $9.5M.
- Gross margin was 49%, down from 53.3% in Q2 and 50.6% a year ago. YY attributes the drop to one-time costs related to gaining exclusive access to the Happy Boy Show, a Chinese singing talent show. Opex +58% Y/Y (still less than rev. growth of 113%) thanks to surging R&D and G&A spend.
- YY has struck a partnership with S2 Games/Asiasoft, a major Southeast Asian online gaming firm, and says it's looking for additional international opportunities.
- Q3 results, PR
Wednesday, Nov 62013, 5:45 AM
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