1、Important disclosures appear at the back of this report GP Bullhound LLP is authorised and regulated by the Financial Conduct Authority GP Bullhound Inc is a member of FINRAAsian InsightsQ1 2019260 6 6 4 3 13 3 3 2 28 19 13 11 6 9 84 2 TargetBuyerTarget descriptionDeal value(USDm)Cloud-based human c
2、apital management solutions10,875(1)telematicsDigital fleet solutions1,035 FX and payment platform641 Developer of video games342 Autonomous vehicle navigation software199 Asian technology transactions into Europe&North AmericaQ1 2019Source:GP Bullhounds proprietary deal database;CapIQ;Mergermarket;
3、news run as of 31 Mar 2019.Deals announced in Q1 2019 and deals closed in Q1 2019 that announced previously.Sectors include internet software,electronic services,entertainment,media&publishing and healthcare.Note:(1)Excluded in the analysis in this report.(2)Australian&New Zealand deals are excluded
4、 in Q1 2019.Only includes deals with disclosed transaction values.USD7.9bnFundraising value85Fundraising volume29M&A volume Selected financingSelected M&ATargetInvestorTarget descriptionFunds raised(USDm)Constellation of satellites to enable internet access1,250 Online customs brokerage and freight
5、forwarding services1,000 Co-working spaces1,000 Self-driving delivery robots940 Loan provider for SMEs440 Country analysis(#Tech transactions)Deal volume and valueFundraiseM&AFundraiseM&AUSD3.0bnM&A valueFundraiseM&ATarget locationInvestor/buyer location12.7 3.9 6.8 5.0 7.9 1331271271078502040608010
6、0120140-5.0 10.0 15.0 20.0Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019Value(USDbn)#deals7.0 1.7 4.2 1.5 3.0 20193521290102030405060-10.0 20.0 30.0 40.0 50.0Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 20193Asian outbound still led by Japan,as the SoftBank effect amplifies28 fundraises closed in Q1 2019 with a Japa
7、nese investor,compared to 19 for Chinese investorsThe five largest fundraises from Asia all had SoftBank as an investor,with three transactions above the USD1bn markSoftBank investments driving an increase in both outbound fundraising value and volume in Q1 2019,with participating USD5.4bn fundraisi
8、ng over the period vs USD2.6bn in Q4 2018European targets continue to enjoy popularityValue of deals with European targets increased by 57%from USD1.9bn to USD 3.0bn on QoQ basis,while the deal with targets in North America decreased by 47%from USD4.6bn to USD2.5bn on QoQ basis*CFIUS seen as a major
9、 hurdle:the Chinese owner of Grindr,Kunlun,were required by CFIUS to sell the popular dating app as the Chinese ownership“posed a national security risk”Ant Financial turned to World First,the UK-based payment platform,after CFIUS blocked the MoneyGram deal,even though World First had to shut down t
10、he US operations to ward off a potential regulatory hurdleThe view from GP BullhoundKey themes in Q1 2019Notes:*Excluding SoftBank transactions.Australian&New Zealand deals are excluded in Q1 2019.Only includes deals with disclosed transaction values.Sectors include internet software,electronic serv
11、ices,entertainment,media&publishing and healthcare.Elsa Hu,Executive DirectorPaul Gaillard,AssociateActive outbound investors concentrate on deep pocket namesFor strategic investments,Tencent and Alibaba are the most active Chinese investors with three investments in Q1 2019 respectively.Samsung&its
12、 venture capital in South Korea closed four deals in Q1.And NTT and Itochu are most active ones from Japan.with three investments respectively in Q1 2019For financial investments,apart from SoftBank,GIC from Singapore and Horizons Ventures from HK are the most active investors.Both made three invest
13、ments in Q1 2019Chinese economic developments in Q1 2019 driving positive investment outlook for the year aheadChina manufacturing activity saw its biggest increase in Q1 since 2012,beating economists estimates and easing a big fear about global outlookBoth domestic and external demand rebounded to
14、their highest levels in six months,signaling a positive outlook for the year aheadSino-U.S.trade talks saw positive progress,but uncertainty is still weighting on near-term outlook Beijing promised wider financial access for foreign investors as trade talks enter crucial stageVincent Wei,Analyst4The
15、“SoftBank Effect”Q1 2019Source:GP Bullhounds proprietary deal database;CapIQ;Mergermarket;news run as of 31 Mar 2019.Sectors include internet software,electronic services,entertainment,media&publishing and healthcare.Notes:Only includes deals with disclosed transaction values.Australian&New Zealand
16、deals are excluded in Q1 2019.Asian outbound tech transactions into Europe&North America European&North American inbound tech transactions into Asia CommentariesIn Q1 2019,among Asian outbound tech transactions into Europe and North America,SoftBank jointly invested in OneWeb(USD1,250m),Flexport(USD
17、1,000m),OakNorth(USD400m),DoorDash(USD400m)and Open Door Labs(USD300m),and was the sole investor in WeWork(USD1,000m),Nuro(USD940m)and Globality(USD100m)For Europe and North America inbound transactions into Asia,together with investors from Europe and North America,SoftBank participated in the fund
18、raising of Grofers,Grab(USD1,460m),Shiheng and Ajaib19.75.611.06.510.911.05.68.73.95.4153 146 162 128 114 147 145 155 122 106 Q1 2018Q2 2018Q3 2018Q4 2018Q1 2019Outbound Deal Value(w/SoftBank)Outbound Deal Value(w/o SoftBank)Outbound Deal No.(w/SoftBank)Outbound Deal No.(w/o SoftBank)7.239.120.819.9
19、4.17.237.220.716.92.739 38 49 86 120 37 48 85 116 Q1 2018Q2 2018Q3 2018Q4 2018Q1 2019Inbound Deal Value(w/SoftBank)Inbound Deal Value(w/o SoftBank)Inbound Deal No.(w/SoftBank)Inbound Deal No.(w/o SoftBank)USD bnUSD bn5A focus on ChinaChinese outbound technology transactions into Europe,North America
20、 and Asia PacificSources:GP Bullhounds proprietary deal database;CapIQ;Dealogic;Mergermarket;news run as of 31 Mar 2019.Sectors include internet software,electronic services,entertainment,media&publishing and healthcare.Buyers or investors are only limited to those who have assets and business withi
21、n Mainland ChinaNotes:(1)Including 13 deals announced in 2018 but closed in Q1 2019,with a total deal value of USD 705.9m.(2)2017 Q4 deal value data excludes Ubers USD 8bn fundraising and 2018 Q1 data excludes Magic Leaps USD 0.5bn fundraising.CommentaryFor deals announced in Q1 2019,a majority of C
22、hina outbound tech investments went to North America(24)and Asia Pacific(18),more than that of Europe(15)Sector wise,ten investments were made in the data&analytics sector,nine in the software sector,seven in the fintech sector,and five in the gaming sectorIn terms of deal volume,Chinese tech invest
23、ments into US decreased by 13%in Q1 2019,while investments into Asia Pacific cooled down from Q4 2018,decreasing by 53%.Europe has started to gain popularity from Chinese tech investors as deal volumes have increased by 25%in Q1 2019 compared to Q4 2018 USDm#deals051015202530354045505560657002,0004,
24、0006,0008,00010,00012,00014,00016,00018,00020,000Q1 2016Q2 2016Q3 2016Q4 2016Q1 2017Q2 2017Q3 2017Q4 2017Q1 2018Q2 2018Q3 2018Q4 2018Q1 2019Announced Deal ValueClosed Deal ValueCancelled Deal ValueAnnounced Deal No.Closed Deal No.Cancelled Deal No.65325Chinese transactions into Europe15 Tech transac
25、tions in Q1 2019 at USD 940m of disclosed transaction valueBreakdown by target countryTargetChinese Investor(s)SectorTransaction Value($m)Gaming56 Data&Analytics34 IoT33Software28Data&Analytics21Breakdown by target sectorTargetChinese Investor(s)SectorTransaction Value($m)Fintech641Data&Analytics103
26、 AR&VR10 Gamingn.a.Crucial Innovationse-commerce&Marketplacesn.a.Selected Private PlacementsSelected M&ANumber of dealsDeal value($m)Sources:GP Bullhounds proprietary deal database;CapIQ;Dealogic;Mergermarket;news run as of 31 Mar 2019.Sectors include internet software,electronic services,entertainm
27、ent,media&publishing and healthcare.Buyers or investors are only limited to those who have assets and business within Mainland ChinaOthersData&Analytics3Fintech2Gaming3AR&VR2E-commerce2Software1Others2Number of dealsDeal value($m)Data&Analytics17%Fintech68%Gaming6%AR&VR1%E-commerce1%Software3%Others
28、4%10%14%69%Others6%7BAT Trading updateBaidu,Alibaba,TencentSource:CapIQ as of March 31,2019Market cap(USDbn)LTM stock performance Key financials in CY2018(USDbn)Multiples 89687581747647343558AppleAmazonAlphabetFacebookAlibabaTencentBaidu261 232 137 55 52 46 15 79 33 50 33 17 18 4 59 10 29 22 14 12 3
29、 AppleAmazon Alphabet FacebookAlibabaTencentBaiduRevenueEBITDANet incomeMar-18Jun-18Sep-18Dec-18Mar-19BaiduAlibabaTencentRebased to 1001%(11%)(25%)P/ECY2018ACY2019EAlibaba34.7x28.9xTencent37.6x31.7xBaidu16.9x18.0 xEV/EBITDACY2018ACY2019EAlibaba28.0 x22.2xTencent25.2x22.0 xBaidu13.3x14.0 x8BAT Key in
30、vestmentsBaidu,Alibaba,TencentSource:GP Bullhounds proprietary deal database;CapIQ;Dealogic;Mergermarket;news run as of 31 Mar 2019.Sectors include internet software,electronic services,entertainment,media&publishing and healthcare.BaiduAlibabaTencentTargetTarget descriptionTransaction Value($m)Deve
31、loper of artificial intelligence based sales assistant applicationn.a.TargetTarget descriptionTransaction Value($m)Distributed systems and large-scale data streaming103VR entertainment business68AR development 10TargetTarget descriptionTransaction Value($m)Motorcycle ride-hailing service and digital
32、 payment platform920Online communities300International payment solutions100Video games developer for multi-platforms56Video games developer for desktop and mobile devices49Public comps by sectorSource:CapIQ as of March 31,2019 Large Cap Consolidators eCommerce&MarketplacesMarket CapEVL3M ShareLTM Sh
33、areCAGR 2017A-19EGross MarginEBITDA marginEV/RevenueEV/EBITDACompanyHQ(USDm)(USDm)Perf.Perf.RevenueEBITDACY2018CY2018CY2018CY2019CY2018CY2019Alibaba Group Holding LimitedChina472,943478,10433.1%5.7%43.8%27.1%60.7%25.8%9.3x6.8x36.0 x22.2xTencent Holdings LimitedChina434,834441,37314.7%(9.2%)30.1%18.0
34、%49.2%48.5%12.6x7.4x26.0 x22.0 xBaidu,Inc.China57,59348,6143.9%(26.9%)17.3%(10.9%)55.8%40.7%4.0 x2.7x9.8x14.0 x-Median14.7%(9.2%)30.1%18.0%55.8%40.7%9.3x6.8x26.0 x22.0 xMean17.2%(10.1%)30.4%11.4%55.2%38.3%8.6x5.6x23.9x19.4xMarket CapEVL3M ShareLTM ShareCAGR 2017A-19EGross MarginEBITDA marginEV/Reven
35、ueEV/EBITDACompanyHQ(USDm)(USDm)Perf.Perf.RevenueEBITDACY2018CY2018CY2018CY2019CY2018CY2019Alibaba Group Holding LimitedChina472,943478,10433.1%n.a.43.8%27.1%60.7%25.8%9.3x6.8x36.0 x22.2xJD.com,Inc.China43,63242,93144.1%(25.0%)23.4%67.5%7.5%(0.2%)0.6x0.5xn.a.30.6xMeituan DianpingChina38,64130,43220.
36、2%n.a.64.6%(8.5%)36.0%(9.8%)3.1x2.2xn.a.n.a.Pinduoduo Inc.China28,62225,45410.5%n.a.297.9%154.0%58.6%(78.9%)13.0 x6.2xn.a.n.a.C International,Ltd.China24,18224,74861.5%(4.8%)17.4%32.3%82.5%12.3%5.7x4.5x46.3x24.8xAutohome Inc.China12,34210,87634.4%20.2%18.7%33.5%85.9%40.9% Inc.China9,7359,16521.2%(16
37、.0%)24.5%18.1%90.8%21.5%4.7x3.9x21.8x19.7xMOGU Inc.China1,4331,199(34.6%)n.a.n.a.n.a.n.a.(39.3%)9.2x5.8xn.a.n.a.China Youzan LimitedHong Kong1,1731,19015.2%34.0%167.9%73.2%11.3%(101.7%)13.7x6.3xn.a.n.a.Median21.2%(4.8%)34.2%32.9%59.6%(0.2%)9.2x5.8x30.3x22.2xMean22.8%1.7%82.3%49.7%54.2%(14.4%)7.7x5.0
38、 x32.2x23.3x10Public comps by sectorSource:CapIQ as of March 31,2019 Digital Media&GamingMarket CapEVL3M ShareLTM ShareCAGR 2017A-19EGross MarginEBITDA marginEV/RevenueEV/EBITDACompanyHQ(USDm)(USDm)Perf.Perf.RevenueEBITDACY2018CY2018CY2018CY2019CY2018CY2019NetEase,Inc.China31,70927,3292.6%(13.2%)23.
39、8%(10.6%)47.9%14.9%2.7x2.2x18.4x17.7xTencent Music Entertainment GroupChina29,60227,07436.9%n.a54.6%75.2%34.7%19.1%9.6x6.9x50.0 x35.3xiQIYI,Inc.China17,34517,13260.9%49.1%38.6%44.1%2.2%30.6%5.2x3.4x17.0 x10.7xEast Money Information Co.,Ltd.China14,924n.a.64.1%37.6%33.0%n.a.84.2%n.a.n.a.n.a.n.a.n.a.N
40、EXON Co.,Ltd.Japan14,0139,79621.5%3.1%6.3%0.7%75.9%44.7%4.3x4.1x9.6x9.9xWeibo CorporationChina13,80612,8666.1%(46.6%)33.7%33.5%79.9%37.0%7.5x6.3x20.3x17.1xSea LimitedSingapore10,46610,529107.8%113.6%123.1%6.1%21.1%(109.4%)12.7x5.1xn.a.n.a.BANDAI NAMCO Holdings Inc.Japan10,2948,7484.3%41.3%6.4%19.3%3
41、4.5%15.9%1.3x1.3x8.4x8.8xNetmarble CorporationSouth Korea9,3697,5799.7%(20.3%)1.7%(3.1%)100.0%15.9%4.3x3.4x26.7x16.3xNcsoft CorporationSouth Korea9,2688,2134.1%11.9%4.4%8.4%99.1%37.3%5.4x4.9x14.5x12.9xLINE CorporationJapan8,3727,4992.4%(10.3%)21.1%n.a.37.4%(0.2%)4.0 x3.4xn.a.n.a.YY Inc.China6,8145,1
42、4940.3%(18.0%)38.5%10.9%39.8%19.3%2.3x1.6x12.0 x9.7xZhejiang Century Huatong Group Co.,LtdChina6,7946,413(3.1%)(15.0%)74.4%62.4%29.5%15.1%5.3x4.1x35.4x28.0 xGiant Network Group Co.,Ltd.China6,6576,05316.8%(33.5%)n.a.n.a.76.0%37.7%10.7xn.a.28.5xn.a.Perfect World Co.,Ltd.China6,1726,14917.5%(9.8%)6.4%
43、17.7%57.3%25.2%5.1x4.6x20.4x15.6xKonami Holdings CorporationJapan5,8644,716(1.0%)(17.0%)5.2%9.6%40.4%78.4%6.8x1.9x8.7x7.5xHUYA Inc.China5,7334,86281.7%n.a79.8%n.a.11.7%0.7%7.0 x4.6x950.3x45.0 xSanqi Interactive Entertainment Network China4,4014,35650.9%(25.5%)20.7%15.3%68.5%11.6%3.8x3.2x33.0 x13.2xS
44、quare Enix Holdings Co.,Ltd.Japan4,1743,23828.6%(20.0%)4.3%(8.6%)49.7%9.0%1.5x1.3x16.5x8.7xYOOZOO Games Co.,Ltd.China3,1513,34131.2%4.4%23.0%20.0%52.2%31.3%6.1x4.6x19.6x17.7xQutoutiao Inc.China2,9162,59582.2%n.a303.7%273.4%85.2%(70.2%)6.2x2.1xn.a.n.a.GungHo Online Entertainment,Inc.Japan2,5881,94999
45、.5%7.0%8.0%(12.5%)61.3%30.2%2.4x2.0 x7.8x8.0 xMaoyan EntertainmentChina2,4762,337n.an.a34.4%964.1%68.4%1.0%4.2x3.4x433.7x14.6xDeNA Co.,Ltd.Japan2,1871,276(10.0%)(20.1%)(4.8%)(22.4%)59.6%17.9%1.1x1.1x6.2x5.4xIGG IncSingapore1,7721,4831.1%3.8%15.6%13.2%68.3%31.0%2.0 x1.8x6.4x6.5xOurpalm Co.,Ltd.China1
46、,6561,47717.0%(40.7%)n.a.n.a.59.0%(145.2%)4.9xn.a.n.a.n.a.NetDragon Websoft Holdings LimitedChina1,3301,14863.9%6.6%25.1%121.2%56.4%14.3%1.5x1.3x10.7x8.8xCom2uS CorporationSouth Korea1,142529(20.8%)(45.8%)3.6%(5.6%)89.9%31.0%1.2x1.1x4.0 x3.4xC LimitedChina8871,108(6.5%)(42.9%)(10.8%)(23.8%)71.8%27.7
47、%2.3x2.4x8.2x9.7xInke LimitedChina511130(2.7%)n.a14.7%n.a.35.4%16.8%0.2x0.2x1.3xn.a.Median17.0%(13.2%)20.9%12.1%58.1%17.9%4.3x3.2x16.5x10.7xMean27.8%(4.0%)35.3%67.0%56.6%10.0%4.5x3.0 x70.7x14.4x11Public comps by sectorSource:CapIQ as of March 31,2019.Note:Enterprise Value(EV)is not available for com
48、panies with data collected on the Bank,Capital Markets,or Financial Services templates due to the nature of the business for these companies.Software&IT ServicesOthersMarket CapEVL3M ShareLTM ShareCAGR 2017-19Gross MarginEBITDA marginEV/RevenueEV/EBITDACompanyHQ(USDm)(USDm)Perf.Perf.RevenueEBITDAFY2
49、018FY2018FY2018FY2019FY2018FY2019Ping An Insurance(Group)Company of China,Ltd.China207,835361,10926.8%11.3%(9.6%)n.a.32.3%18.6%2.4x3.0 x12.7xn.a.Recruit Holdings Co.,Ltd.Japan47,66145,84717.5%14.9%7.4%7.3%46.4%12.7%2.2x2.0 x17.5x15.5xTAL Education GroupChina20,46819,11835.2%2.3%44.3%59.7%48.0%15.9%8
50、.2x6.0 x51.4x32.6xiFLYTEK CO.,LTDChina11,31411,32250.9%(10.4%)47.6%66.5%51.3%10.2%9.4x6.4x92.7x47.2xNIO Inc.China5,2334,689(19.9%)n.a.n.a.25.8%n.a.(186.1%)6.4x2.0 xn.a.n.a.Futu Holdings LimitedHong Kong2,057n.a.n.a.n.a.n.a.n.a.36.0%n.a.n.a.n.a.n.a.n.a.51 Credit Card Inc.China86774031.6%n.a.20.5%n.a.