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    $115 mln$274 mln$545 mln

    DouYu

    Largest Chinese live video streaming platform
    IPO
    Medium risk

    Revenues in 2016-2018

    Invest in DouYu

    This investment idea is no longer available. New applications are not accepted

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    Investment Idea Details
    The Company

    DouYu is the largest Chinese live streaming platform focused on video games. The company operates their platform both on PC and mobile apps, through which users can enjoy immersive and interactive games and entertainment live streaming.

    As of December 31, 2016, 2017 and 2018 and March 31, 2019, they had 98.7 million, 182.1 million, 253.6 million and 280.9 million registered users, respectively. Company’s revenue increased from RMB 786.9 million in 2016 to RMB 1,885.7 million in 2017 and further to RMB 3,654.4 million (US$544.5 million) in 2018.

    Market Opportunity

    According to iResearch, China is the world's largest game-centric live streaming market, with approximately 4.9 times the MAUs of the U.S. market in 2018. Revenues from China's game-centric live streaming market is expected to grow at a CAGR of 24.7% from 2018 to 2023.

    As of March 31, 2018 and 2019, DouYu platform had 4.6 million and 6.5 million registered streamers. According to iResearch, DouYu was the most searched game-centric live streaming platform in China based on average of Baidu's search index and ranked as the top free and top grossing game-centric live streaming app in Apple's App Store in 2018.

    Risks

    The company is unprofitable and may not be able to achieve or sustain profitability in the future, which could lead to decline in share price.

    The company faces intense competition from HUYA and could lose market share to competitors, which could adversely affect business, financial condition, and results of operations.

    If the internal networks, systems, or data are or are perceived to have been breached, the reputation may be damaged and financial results may be negatively affected.

    Financials

    Similar recent IPOs include the competing company HUYA (HUYA), whose shares opened at $15.5 in May 2018, which is 30% higher than the offering price. The P/S ratio at IPO was 7.5x. After the lock-up period on August 13, the shares were trading at $32.88 - the 3-month return on investment was 174%.

    DouYu (DOYU) plans to raise $938 million at an estimated valuation of $4.6 billion (at a price of $14 per ADS). The P/S ratio for IPO will be 7.2x, which is comparable to HUYA. Expected return on investment is 40%.

    How IPO Investments Work
    1. Collection of funds

    2-3 weeks before the start of the company publishes information about the opening of trading: financial statements for 3 years, a description of the company's business, plans for the future, as well as the risks that management sees in their own business. We analyze such offers and publish the best ones. Investors apply for deposits. Before the deadline for applications, you can change the request or cancel it.

    Publication
    10 Jul
    Threshold amount
    $50
    2. Buy shares

    We submit one large application for the purchase of shares by pre-subscription with reduced price to large investors. The application may be rejected in part or in full. Over the past three years, our applications have been rejected only three times. The next day, or every other day, we'll know at what price and at what percentage the order is executed, and we'll post it on «The my investment page».

    Submit applications before
    13 Jul
    3. Start Bidding

    The price of shares is rising from the first day due to the demand of investors deprived of the opportunity to buy shares before trading. Most of the stocks we've been recommending buying over the past three years have been starting to trade on the stock exchange at tens of percent higher than the price at which customers bought the shares. There comes a Lock up period when it is forbidden to sell shares purchased by subscription. Typically lasts 3 months.

    Start Bidding
    17 Jul
    Annual return forecast
    40%
    4. Receiving profit

    After the expiration of the Lock Up period, the investment is automatically closed and the investor receives a profit on account of the deduction commissions UT. You can always view the results of your past investments in investment archive.

    End
    18 Oct
    Early profit fixation

    Although no shares are allowed to be sold during the lock-up period, our traders seek to offer investors fixed profit by way of using various financial instruments, including forwards, options, short positions etc.

    From the investor’s point of view this means that he or she may close an investment by paying a certain part of its value (as a rule, approximately 15 percent). This is due to high prices for the instruments which are employed to ensure availability of fixed profit. As such, you shall press any relevant button in the Investor Account as soon as it is active.

    The closing procedure is similar to commencement of investment business. You shall file a bid which is executed within a business day by UT. So, your investment is closed at the price currently prevailing on the stock exchange. However, we rarely recommend using this feature, since upon expiry of an applicable lock-up period the average performance is higher.

    Fee

    FOR ENTRY

    3 per cent of the share price. This fee is charged as soon as your investment bid is confirmed.

    FOR EXIT

    1.75 per cent of the purchase price paid for your shares as soon as trading is closed. This fee is charged upon closure of any relevant investment.

    SUCCESS

    20 per cent of the profit your derive. This fee is charged only if you show positive performance as of the moment any relevant investment is closed.

    TO EARLY EXIT

    Usually, 15 per cent (depends on the stock exchange environment). It is calculated per each investment individually.

    Advantages Enjoyed by Those Investing with United Traders

    RELIABILITY

    Our risk managers ensure proper support throughout the entire transaction. Moreover, you may call them on +7 495 646-15-57 or 8 800 333-66-81 or visit our office, if a more detailed discussion is needed.

    IN THE PROFIT FROM THE FIRST DAY

    Such an approach allows it to limit extra risks related to bankruptcy of start-ups and considerably increase profit vs investors purchasing shares on open Market.

    LOW ENTRY THRESHOLD

    Millions of dollars are required to buy shares on a subscription basis. We have generated a pool of traders and investors which enables any newbie to participate in any transaction as aforesaid by investing just USD50 or more.

    Invest in DouYu

    This investment idea is no longer available. New applications are not accepted

    View more ideas