Driven by the good news, the happy times went up from down to up on Monday. As of press release, the era of happy gathering rose more than 2% to US $87.00, with a market value of about US $7 billion.
J.P. Morgan suggests the era of bottom trading and happy gathering. JPMorgans Asia Pacific stock research team said in the research paper: since the release of muddy water short report on November 18, the stock price of happy gathering era has fallen by 15%, and we suggest investors to further buy on bargain.
J.P. Morgan believes that the happy gathering era has good cash flow. With Baidus $3.6 billion acquisition of YY live, the net cash of happy gathering era is $6.4 billion. If investment is added, it will reach $7.2 billion, exceeding the current market value of about $7 billion. J.P. Morgan expects that in the era of reunion, more share buybacks or special dividends will be used to further drive the stock price.
Another reason for optimism is the acquisition of bigo, a video social networking company. JP Morgan is optimistic about bigos future. It is expected that the revenue of fy2021 will increase by 45% year-on-year and achieve a net profit margin of 5%.
Source of this article: Yang Bin, editor in charge of CFA_ NF4368