Tag Archives: Baofeng

China News Digest: July 19, 2016

The following press releases and news reports about China companies were carried on July 19. To view a full article or story, click on the link next to the headline.
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  • Chinese $1.2 Bln Takeover of Norway’s Opera Fails, Pursues Alternative Deal (English article)
  • Didi Chuxing Raises Prices in Multiple Markets to Slow Cash Burning (Chinese article)
  • Hot Pot Chain Haidilao Makes IPO for Yihai International (HKEx: 1579) Unit (Chinese article)
  • ZestFinance Gets Baidu (Nasdaq: BIDU) Funds To Develop Underwriting Technology (company announcement)
  • Baofeng (Shenzhen: 300431) to Establish Film and TV Drama Production Subsidiary (English article)
  • Latest calendar for Q2 earnings reports (Earnings calendar)

MEDIA: Baofeng Rallies on Troubling Layoff Reports

Bottom line: High-flying video player maker Baofeng represents the irrational sentiment now pervading China’s stock markets, and its recent layoffs hint at underlying troubles that will undermine the company over the next year.

Baofeng layoffs hint at troubles

When the history books are written, video player maker Baofeng Technology (Shenzhen: 300431) could well become the poster child for China’s version of the dot-com bubble that saw the country’s stock markets soar and then crash in 2014 and 2015. In the latest twist on Baofeng’s story, the company has reportedly just laid off 30 percent of its workforce, in what looks like signs of major problems.

But rather than tumble on the reports, the company’s stock actually rose by the daily 10 percent limit in the latest trading session at the end of last week. It’s not completely unheard of for companies’ stocks to rise after layoffs are disclosed, even though the job cuts really do look like a sign of major troubles brewing at Baofeng. But in China, no one really seems to ever read beyond the headlines, and often they don’t even bother reading the headlines at all. Read Full Post…

News Digest: October 24-26, 2015

The following press releases and media reports about Chinese companies were carried on October 24-26. To view a full article or story, click on the link next to the headline.
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  • Tesla (Nasdaq: TSLA) CEO Says Negotiating with China on Local Production (English article)
  • Baofeng (Shenzhen: 300431) Responds to Layoff Reports, Says Improving Workforce (Chinese article)
  • Carnival Cruises (NYSE: CCL) in China JV with CSSC  (Shanghai: 600150), CIC (Chinese article)
  • Youku Tudou (NYSE: YOKU) VP for Technology Leaves to Join Mango TV as CTO (Chinese article)
  • Agricultural Bank of China (HKEx: 1288) Announces Q3 Results (HKEx announcement)
  • Latest calendar for Q3 earnings reports (Earnings calendar)

INTERNET: Despite Sell-Off, NY Offers Best Value for China Internet Listings

Bottom line: Premier Chinese Internet names should eschew China’s stock markets and continue to make IPOs in New York, where they can gain more accurate valuations and greater access to global capital markets.

NY offers best value for China Internet listings

Shares of e-commerce giant Alibaba (NYSE: BABA) achieved a dubious milestone late last week, when they officially closed at their lowest price since the company’s record-breaking IPO nearly a year ago. The big rise and subsequent fall of Alibaba’s stock was part of a broader sell-off of US-listed Chinese shares, sparked by an equally large drop on China’s domestic stock markets.

The US sell-off once again cast a spotlight on the question of whether some of China’s most promising private companies should pursue such offshore listings or make IPOs at home where their names are more familiar. Despite occasional volatility like last week’s sell-off, such offshore listings remain the best choice because they provide companies with relative stability and far more accurate valuations than what their peers are getting in China’s immature markets. Read Full Post…

INTERNET: Baofeng Slides on Earnings, Ridiculous Valuation

Bottom line: Baofeng Technology’s meteoric rise and current crash reflect the irrational trading mentality in China’s stock markets, where price manipulation is rampant and shares are still likely to face an additional correction of up to 30 percent.

Aggressive buying, selling power Baofeng stock

I wrote about online video player maker Baofeng Technology (Shenzhen: 300431) in June when it was breaking numerous records during China’s stock market boom, so now it’s only fair that I follow up with what’s happened since the market began to correct last month. Not surprisingly, Baofeng’s stock has been leading the correction, having fallen by the daily 10 percent limit in the last 5 sessions.

Analysts are crediting a weak earnings report released last week for the sell-off of Baofeng stock, after the company said its profits tumbled 70 percent in the second quarter. But it’s probably more accurate to blame the ridiculous valuation for Baofeng shares, which even after the 50 percent drop over the last week are still trading at a meteoric price-to-earnings (PE) ratio of 250. Read Full Post…

News Digest: August 20, 2015

The following press releases and media reports about Chinese companies were carried on August 20. To view a full article or story, click on the link next to the headline.
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  • Huayi Bros (Shenzhen: 300027), Ping An Bank in 30 Bln Yuan Entertainment Tie-Up (Chinese article)
  • Lenovo (HKEx: 992) Joins Smartphone Compatriots for ’Make in India’ (English article)
  • Sina (Nasdaq: SINA) Reports Q2 Financial Results (PRNewswire)
  • Fund Piles Into Baofeng Tech (Shenzhen: 300431), Becomes Top Shareholder (Chinese article)
  • Tuniu (Nasdaq: TOUR) Takes Over JD.com’s Online Travel Business After Tie-Up (Chinese article)
  • Latest calendar for Q2 earnings reports (Earnings calendar)

NEW ENERGY: Hanergy Stays Suspended Amid Manipulation Probe

Bottom line: Hanergy shares will remain forcibly suspended until the Hong Kong securities regulator completes its investigation into price manipulation, and could ultimately return to China where oversight is far less strict.

Hanergy shares stay suspended

I had to smile when I read the latest reports that said the Hong Kong securities regulator has taken the unusual step of ordering a continued suspension of shares of solar power equipment maker Hanergy (HKEx: 566), as it continues a probe into stock price manipulation. My smile wasn’t due to the continued suspension, but rather to the reason that media reports gave for the investigation, namely the spectacular rise in the company’s price over a one-year period, followed by its even faster plunge. (previous post)

That story was actually quite well documented back in May, when Hanergy’s shares lost nearly half of their value in a single hour after rising 6-fold over the previous year, wiping out $19 billion in market value. China stock watchers will know that the reason for my smile is that this kind of meteoric rise and fall is quite ordinary just across the border in China, and seldom attracts similar scrutiny from the China Securities Regulatory Commission. Read Full Post…

IPOs: Focus Media Eyes Shenzhen Backdoor With Hongda

Bottom line: Focus Media could complete its backdoor listing in Shenzhen within the next month, kicking off a new wave of similar migrations by formerly US-listed Chinese firms looking for higher valuations from local investors.

Focus Media to list in Shenzhen via Hongda

Faded outdoor advertising specialist Focus Media is inching towards its goal of becoming China’s first formerly New York-traded firm to re-list in its home market, with reports that it has selected a Shenzhen-listed company to make a backdoor IPO. This particular migration has been in the works for more than a year now, and could end soon with this backdoor IPO that would see Focus take over the public listing of Hongda Building Materials (Shenzhen: 002211). Read Full Post…

IPOs: Video Firm Baofeng Wins Record Returns With ChiNext IPO

Bottom line: The hugely successful ChiNext IPO for video player maker Baofeng could draw more Chinese tech start-ups to consider listings at home, even though doing so will make their shares subject to huge volatility.

Baofeng sets record with meteoric stock rise

A video player maker called Baofeng (Shenzhen: 300431) is creating a storm on China’s Nasdaq-style ChiNext enterprise board, with a record-breaking meteoric rise for its shares following a late March IPO. The listing marks the end of a long path to market for Baofeng, which originally envisioned an IPO in New York but later abandoned that plan for a listing at home. The company’s hugely successful reception on the ChiNext also charts a potential major new path to market for Chinese tech start-ups, providing an attractive alternative to New York listings that have been the preferred path up until now. Read Full Post…

News Digest: May 5, 2015

The following press releases and media reports about Chinese companies were carried on May 5. To view a full article or story, click on the link next to the headline.
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  • China Said To Probe Medical Device Firms On Bribe Suspicions (English article)
  • Uber’s Guangzhou Office Raided, Drivers’ Website Temporarily Shut (Chinese article)
  • Baidu (Nasdaq: BIDU) To Launch O2O E-commerce Platform Baidu Mall – Source (English article)
  • Video Site Baofeng Tech (Shenzhen: 300431) Rises 16-Fold In First 27 Trading Days (Chinese article)
  • Gree (Shenzhen: 000651) Starts Shipping Smartphones, Eyes 100,000 In First Round (Chinese article)
  • Latest calendar for Q1 earnings reports (Earnings calendar)

China Tech Start-Ups: Coming Home? 中国科技企业扎堆国内上市?

There’s an interesting report out this morning noting that a growing number of Chinese tech start-ups that once looked like strong candidates for New York IPOs are opting for home listings instead, deterred by higher scrutiny and weak sentiment overseas and a much friendlier — if not volatile — environment on ChiNext, China’s 2-year-old Nasdaq-style enterprise board. In the latest move on that front, Chinese media are reporting a company called Baofeng, maker of a popular online and cellphone video player, has filed to make a public listing on the ChiNext, reversing its plans last year when it said it would make a 2012 listing overseas. (Chinese article) Frankly speaking, Baofeng does have the exact profile of a company that would have traditionally gone to either the Nasdaq or New York Stock Exchange to raise funds as its first choice a year ago, followed by Hong Kong as a second choice and the ChiNext as a distant third. But much has changed from a year ago, when foreign investors were still quite bullish on Chinese Internet stocks, giving them relatively rich valuations compared with peers based in more developed western markets. Such stocks have suffered a major reversal of fortune over the last year, with investors dumping their shares following a series of accounting scandals that also led to higher regulatory scrutiny and the delisting of a number of smaller players. Amid all the scandals last year, China’s securities regulator also got involved, trying to insert itself into the overseas listing process as the central government also reportedly discussed either limiting or shutting down that process completely. As far as I know, nothing specific has happened yet in terms of new Chinese government oversight, though a number of big-name western investment banks have refused to underwrite New York IPOs for some China firms over concerns about their accounting. In one of the highest profile cases, Goldman Sachs (NYSE: GS) and Morgan Stanley (NYSE: MS) both reportedly resigned from an IPO last summer for leading group buying site LaShou, which went on to hire some smaller banks but has yet to make an offering. (previous post) The lone Chinese company that did make a New York IPO this year, discount retailer Vipshop (NYSE: VIPS) was an unqualified disaster, pricing well below its indicated range and falling 30 percent since its trading debut. This new report notes that Baofeng is just the latest example of a Chinese tech start-up going to ChiNext rather than overseas, following similar moves by firms like online game developers Wushen Century Network Technology and Suzhou Snail Game. It’s probably too early to say if this move to the ChiNext will be a long-term phenomenon, and I suspect these start-ups that list there will quickly discover the market’s high volatility is far less desirable than the more stable environments in New York and Hong Kong. But if the ChiNext can implement reforms to lower volatility in the market, perhaps by opening up to more foreign investors, it could seize this opportunity to quickly position itself as a strong alternative to New York and Hong Kong for China’s vibrant field of tech start-ups.

Bottom line: A recent move by tech start-ups to China’s Nasdaq-style enterprise board could become a viable IPO alternative if the board can create a more stable listing environment.

Related postings 相关文章:

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China IPO Train Hits Bump With Vancl Resignation 中国上市事件撞上凡客诚品CFO辞职