Bottom line: Suning’s Japanese expansion and receipt of a new license to build and operate a private broadband network are both positive developments, but also reflect a lack of quick progress in transforming its core China-based retail business.
Suning in Japanese expansion
A couple of new reports involving Suning (Shenzhen: 002024) made me realize it’s been quite a while since I’ve written about this company that is trying to transform from a traditional retailer to a major e-commerce player. Both reports are interesting and noteworthy, though neither is related to its e-commerce drive, which doesn’t appear to be going anywhere quickly.
One of the deals involves Suning’s purchase of a money-losing Japanese electronics seller 5 years ago, and will see it now plow several billion yuan into a major expansion of the Laox chain of home appliance stores. The second deal has Suning named as one of 4 companies to receive licenses to build broadband networks to offer services under a newly announced pilot program to open the sector to private money. Read Full Post…
Bottom line: A major new investment in Sina by CEO Charles Chao indicates he wants to take one last try at revitalizing the company’s core portal business, and might consider a sale if a good offer emerges.
Sina CEO Chao buys big stake in company
The China Internet world has been buzzing this week with speculation over what is driving a massive new personal investment of nearly $500 million in leading web portal Sina (Nasdaq: SINA) by its longtime CEO Charles Chao. I have quite a bit of respect for Chao, who is more of a western-style, bottom line-focused CEO than many of his Chinese Internet peers who run their companies like personal fiefdoms.
But that said, I’ve also previously said that Chao lacks the kind of bigger vision that many of his peers have, and that he should consider stepping aside to make way for some new leadership. Accordingly, perhaps this latest move by Chao augers a return to his company’s core portal business, following his focus over the last few years on building up its recently-listed Twitter-like Weibo (Nasdaq: WB) unit. That could be followed by his exit in a year or two, and even a possible sale of some or all of its remaining core assets. Read Full Post…
Bottom line: Effects of the short-seller attack on Vipshop are likely to die down soon and the stock should stabilize, while Jiayuan is likely to get bought out for a figure close to its latest stock price following receipt of a new bid.
VIP short seller attack continues
New developments are occurring in 2 stories involving less-followed Chinese Internet companies, led by a fresh assault in an ongoing short-seller attack that is eroding shares of discount e-commerce site Vipshop(NYSE: VIPS). Meantime, shares of online matchmaking site Jiayuan (Nasdaq: DATE) have soared, after it announced it has received new buy-out bids for the company. That development would come nearly 2 months after Jiayuan received an initial buy-out offer that some complained vastly undervalued the company. Read Full Post…
The following press releases and media reports about Chinese companies were carried on May 30-June 2. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
IMAX China Files For HK IPO, Betting on Booming Film Demand (English article)
Ctrip (Nasdaq: CTRP) Says Outage Due to Staff Error, Not Hack (English article)
Solarworld (Frankfurt: SWVK) Gains EU Probes of Possible China Duty Evasion (English article)
Alibaba (NYSE: BABA), Yahoo Japan (Tokyo: 4689) To Open Tmall Japan Pavillion (Chinese article)
Vipshop (NYSE: VIPS) Comes Under New Short Seller Attack, Shares Drop 6 Pct (Chinese article)
Bottom line: Shares of Youku Tudou and Vipshop are likely to remain stable over the next few weeks, as the former moves towards a rumored merger with iQiyi and the latter fends off a short seller attack.
Vipshop likely to fend off short seller attack
Two stories with big implications for individual company stocks are in the news as we begin the new week, led by a denial from Baidu-backed (Nasdaq: BIDU) online video site iQiyi that it’s in talks for a merger with large rival Youku Tudou (NYSE: YOKU). The other big news has high-flying discount e-commerce site Vipshop (NYSE: VIPS) coming under a short-seller attack, prompting it to issue not one but two separate statements denying the allegations. The week ahead could be bumpy for both of these stocks, which is why I’m weighing in with my own view of what may be happening behind the scenes. Read Full Post…
The following press releases and media reports about Chinese companies were carried on May 14. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
Chinese Vice Premier Meets Apple (Nasdaq: AAPL) CEO (English article)
The following press releases and media reports about Chinese companies were carried on February 17. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
Ourpalm (Shenzhen: 300315) Acquires 3 Game Firms In 4.3 Bln Yuan Deal (Chinese article)
Anbang Pledges $1.1 Bln Capital In Purchase Of Vivat (English article)
Zynga (Nasdaq: ZNGA) Loses $226 Mln In 2014, Shutters Zynga China (English article)
Vipshop (NYSE: VIPS) Reports Unaudited Q4 And Full Year 2014 Results (PRNewswire)
Yongche Complains Of Monopoly With Didi-Kuaidi Taxi App Merger (Chinese article)
The following press releases and media reports about Chinese companies were carried on November 19. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
Qihoo 360 (NYSE: QIHU) Sues Baidu (Nasdaq: BIDU) For Attack On Reputation (Chinese article)
The following press releases and media reports about Chinese companies were carried on October 10. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
Baidu (Nasdaq: BIDU) Buys Control Of Brazil’s Peixe Urbano In Expansion Push (English article)
The following press releases and media reports about Chinese companies were carried on September 17. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
Alibaba Raises IPO Price Range To $66-$68 Per ADS (Chinese article)
Geely (HKEx: 175) Proposes Issue Of US Dollar-Denominated Senior Notes (HKEx announcement)
The busiest day of the second-quarter earnings season has just come and gone, with online gaming leaders Tencent (HKEx: 700) and NetEase (Nasdaq: NTES), top telco China Mobile (HKEx: 941; NYSE: CHL), leading PC maker Lenovo (HKEx: 992) and e-commerce high-flyer Vipshop (NYSE: VIPS) all reporting results in the same 24-hour period. I’ll give quick reviews of individual companies shortly, but the bigger picture based on stock reactions seems to be a massive yawn from investors. Most of the stocks were either unchanged or moved slightly downward in response to the earnings reports, meaning most results continued recent company trends.
The lackluster response also hints at some investor fatigue, following a wave of euphoria during a flood of new Internet IPOs in New York in the first half of this year. All that said, let’s take a quick look at each of the reports and what they say about current and future trends. Read Full Post…
