STOCKS TELEGRAPH

Author: Shariq Khan

  • DouYu International Holdings Limited (DOYU) declined in the After-Hours; here is why?

    DouYu International Holdings Limited (DOYU) is declining in the after-hours market after announcing its fourth quarter and fiscal 2021 results. DOYU values at $2.13, losing more than 6.5% compared to yesterday’s closing price. The stock closed at $2.28 at the end of the last trading session. The stock volume traded in the previous trading session was around 2.91 million shares. The current market cap of the company is about $460.66 million.

    DOYU: Q4 and Fiscal 2021 Key Financials

    • DouYu International Holdings Ltd.’s revenue in Q4 2021 was RMB 2,327.9 million. It’s a gain of 2.6% compared to the revenue of RMB 2,269.2 million in Q4 2020.
    • Fiscal 2021 revenue was RMB 9.2 billion, less than the revenue of RMB 9.6 billion in fiscal 2020.
    • The company’s net loss in Q4 2021 was around RMB 193.2 million, compared to the net loss of RMB 228.7 million in Q4 2020.
    • DOYU’s net loss in fiscal 2021 was around RMB 620.2 million, compared to the net loss of RMB404.7 million in fiscal 2020.
    • The company’s basic and diluted loss per share in Q4 was RMG 0.53, compared to the net loss of RMB 0.29.
    • DOYU’s diluted and basic loss per share in fiscal 2021 is RMB 1.55 compared to the loss per share of RMB 0.88 in fiscal 2020.

    DOYU CEO’s Remarks

    Mr. Shaojie Chen, CEO of DouYu, stated that 2021 was a tough year. Faced with a difficult macro environment, we enhanced our game operations and created our game-centric content ecosystem for a broad range of game genres. Mobile MAU climbed 7.2% year-on-year during the fourth quarter to 62.4 million. We will continue to explore new growth opportunities by using our creative interactive operations and rich content over many media channels like live streaming, videos, graphics, and communities.

    DOYU Share Repurchase Program

    For up to 12 months beginning August 30, 2021, the Company’s board of directors has approved the buyback of up to US$100 million of the Company’s ordinary shares in the form of ADSs under a share-repurchase program. As part of this initiative, the company plans to repurchase shares using cash. By December 31, 2021, the Company has repurchased ADSs for US$16.7 million (RMB107 million).

    Conclusion

    The company is looking forward to delivering the value back to its shareholders through share repurchase programs. This reflects that the company has a strong balance sheet, and is as a result of this program, its stock skyrocketed when the news got public but is now losing value gradually.

  • Canaan Inc. (CAN) surged in the current market; here is why?

    Canaan Inc. (CAN) surged in the current market; here is why?

    Canaan Inc. (CAN) surged in the current market after announcing its share repurchase program. CAN values at $4.80, gaining more than 38% compared to yesterday’s closing price. The stock closed at $3.46 at the end of the last trading session. The stock volume traded in the previous trading session was around 4.46 million shares. The current market cap of the company is about $829.71 million.

    CAN Share Repurchase Program

    Canaan Inc. (CAN), on March 16, 2022, announced in a press release that they intend to buy back shares worth around $100 million. The decision was made after the approval from its board of directors. Under the share repurchase program will buy outstanding American depositary shares; each consists of 15 Class A common shares. Starting from March 16, 2022, they will also buy Class A common shares over twenty-four months period.

    Under this program, they will buy back shares from time to time. The company is giving back the value to its shareholders, representing its solid balance sheet.

    CAN CEO’s Remarks

    The contemporary geopolitical tensions, local quarantine measures for COVID-19 control, and macro reasons throughout the capital market have significantly affected our stock performance, according to Canaan Chairman and CEO Nangeng Zhang. To maximize shareholder value, we would prefer to commit additional capital given the Company’s excellent fundamentals and good cash position. We finished the September 2021 share buyback program ahead of time. It shows our faith in the Company’s long-term prospects. We feel we can overcome the hurdles and accomplish more with our hard work and agility.

    Financial Highlights

    The company recently announced its fiscal 2021 results. The company announced a massive increase in its revenue, representing a 65% increase yoy. CAN record revenue of around RMB 4.9 billion. Its net income in fiscal 2021 was RMB 2 billion.

    CAN 2022 Outlook

    Net revenue of Q4 2022 for Canaan Inc. (CAN) is forecasted to be in the range of RMB 1.50 billion to RMB 1.60 billion (year-over-year growth of 275% to 300%). These projections are based on Canaan’s current and preliminary market and operating circumstances assessments.

    Conclusion

    The share repurchase program represents the company’s strong balance sheet. It represents that the company is keen on giving back the value to its shareholders.

  • JOYY Inc. (YY) surged in the current market; here is why?

    JOYY Inc. (YY) surged in the current market; here is why?

    JOYY Inc. (YY) surged in the current market after announcing its fourth quarter and fiscal 2021 results. YY values at $38.78, gaining more than 52.62% compared to yesterday’s closing price. The stock closed at $26.41 at the end of the last trading session. The stock volume traded in the previous trading session was around 792.27K shares. The current market cap of the company is about $2.72 billion.

    YY: Q4 and Fiscal 2021 Key Financials

    • JOYY Inc.’s revenue in Q4 2021 was $663.7 million, gaining more than 16.8% compared to the revenue of $568.2 million in Q4 2020.
    • Fiscal 2021 revenue was $2.6 billion, 36.5% more than the revenue of $1.9 billion in fiscal 2020.
    • The company’s net income in Q4 2021 was around $73.2 million, improving compared to the net loss of $118.9 million in Q4 2020.
    • YY’s net loss in fiscal 2021 was around $115.9 million, and profitability declined compared to the net loss of $18.7 million in fiscal 2020.
    • Its gross margin in Q4 was 11% compared to a net loss margin of 20% in Q4 2020.
    • The net loss margin is 4.4% in fiscal 2021. Last year’s net loss margin was 1%.
    • The company had cash and cash equivalents of $4.6 billion as of December 31, 2021.

    YY: Update on Share Repurchase Program

    The company’s board of directors approved $1.2 billion in further share repurchases in 2021. By December 31, 2021, JOYY had repurchased $393 million in shares, $235.7 million of which came from the newly expanded $1.2 billion repurchase plan. JOYY has also given $160 million in dividends. For their long-term support, JOYY intends to reward its shareholders for their faith in the Company’s long-term growth potential.

    YY CEO’s Remarks

    JOYY Chairman and CEO David Xueling Li said that our firm had shown tremendous resilience despite macroeconomic uncertainty and pandemic problems in 2021. We improved monetization across many products through our globalization strategy and strengthened our broad social entertainment ecosystem, resulting in a 36.5 percent year-on-year revenue increase. This year, BIGO and the whole group achieved non-GAAP profitability via greater monetization of several goods, proactive marketing adjustments, and improved operational efficiency.

    Conclusion

    The company is making tremendous progress with Bigo Lie, Likee, and Hago. Bigo Live’s revenue growth was 12.5% yoy. Likee’s growth rate was 26.5%, and Hago stands at 32.1%. The company is optimistic about its brands and anticipates firm growth in fiscal 2022.

  • Kanzhun Limited (BZ) surged in the current market; here is why?

    Kanzhun Limited (BZ) surged in the current market; here is why?

    Kanzhun Limited (BZ) skyrocketed in the current market after announcing the date for the fourth quarter and fiscal 2021 results. BZ values at $24.79, gaining more than 34.44% compared to the previous closing price. The stock closed at $18.44 at the end of the last trading session. The stock volume traded in the previous trading session was around 4.15 million shares. The current market cap of the company is about $10.31 billion.

    BZ: Fourth Quarter Release Date Announcement

    Kanzhun Limited (BZ) owns Chinese internet recruiting leader BOSS Zhipin. A disruptive tool that fosters two-way conversation emphasizes intelligent suggestions and generates new situations in online hiring. The Company was founded eight years ago and has grown rapidly. BOSS Zhipin has established tremendous network effects to increase recruiting efficiency and accelerate growth.

    The company announced in a press release that it would report its unaudited consolidated fourth quarter and fiscal 2021 results on March 23, 2022, before the market opens on Wednesday. The company’s management will hold the conference at 8:00 AM US Eastern Time on March 23, 2022.

    BZ: Share Repurchase Program

    Kanzhun Limited (BZ) recently announced that its board had approved a share repurchase program of up to US$150 million. The company will buy shares in the next twelve months.

    Preliminary market pricing, private negotiations block trades, and other legally permitted procedures may be used by the Company to make proposed repurchases from time to time. The Company’s board of directors may modify this program.

    BZ: Q3 Key Financials (CNY)

    • The company reported a revenue of CNY 1.21 billion in Q3, representing a 105% increase in year/year change.
    • BZ announced a net income of CNY 286.17 million, with a massive increase of 746% compared to the same quarter last year.
    • Its EPS in Q3 was 0.62 gaining 214% year/year.
    • The company has CNY 10.76 billion in cash and cash equivalents as of the third quarter.

    Conclusion

    The company is looking forward to announcing robust fiscal 2021 results. The previous results show that the company must have the same growth rate as in the quarters. The company’s share repurchase program shows that it is keen on giving back the value to its shareholders.

  • Surgalign Holdings, Inc. (SRGA) plunged in the After-Hours; here is why?

    Surgalign Holdings, Inc. (SRGA) plunged in the After-Hours; here is why?

    Surgalign Holdings, Inc. (SRGA) declined in the after-hours market after announcing its fourth quarter and fiscal 2022 results. SRGA values at $0.33, losing more than 17% compared to yesterday’s closing price. The stock closed at $0.31 at the end of the last trading session. The stock volume traded in the previous trading session was around 4.29 million shares. The current market cap of the company is about $65.59 million.

    SRGA: Q4 and Fiscal 2021 Key Financials

    • Surgalign Holdings, Inc.’s revenue in Q4 2021 was $21.8 million, compared to the revenue of $26.1 million in Q4 2020.
    • Fiscal 2021 revenue was $90.5 million, more than the revenue of $101.75 million in fiscal 2020.
    • The company’s net loss in Q4 2021 was around $45.3 million, less than compared to the net loss of $100.04 million in Q4 2020.
    • SRGA’s net loss in fiscal 2021 was around $84.65 million, and profitability declined compared to the net loss of $33.79 million in fiscal 2020.
    • The Q4 2021 loss per share was $0.33, compared to a net loss of $1.28 in Q4 2020.
    • For fiscal 2021, the loss per share was $0.69, compared to $0.45 in fiscal 2020.

    SRGA President and CEO’s Remarks

    Terry Rich, President, and CEO of Surgalign Holdings said that despite the continued challenges, the company is pleased with its accomplishments in 2021 and early 2022. I want to congratulate all of our workers for their dedication to our customers while creating HOLO, which we think will revolutionize surgical processes and patient care. Aside from COVID-related procedural limits and hospital staffing difficulties, which remained in the first two months of 2022, the fourth quarter performance met our expectations.

    SRGA 2022 Revenue Outlook

    Shedding light on its revenue expectations for the whole fiscal 2022, the company said that they expect revenue between $83 million to $87 million.

    Conclusion

    The company’s performance was severely affected by Covid-19, but the company stated that the results were not unexpected for them. The results matched their forecasted estimation. The company has now provided its revenue guidance for 2022, which they expect would be achievable.

  • Natera, Inc. (NTRA) plunged into the Current Market; here is why?

    Natera, Inc. (NTRA) plunged into the Current Market; here is why?

    Natera, Inc. (NTRA) plunged into the current market after the company was found guilty of making false claims in an advertisement. NTRA values $30.80, losing more than 14% compared to the previous closing price. The stock closed at $35.89 at the end of the last trading session. The stock volume traded in the previous trading session was around 3.08 million shares. The current market cap of the company is about $3.72 billion.

    NTRA found guilty by the court in Fake Claims

    Natera, Inc. (NTRA) has found themselves in hot waters after the jury found them guilty of involving in a false advertisement. The jury reached its decision after representing the evidence that both Natera and CareDx made exaggerated claims in a recent advertisement about their involvement in and funding a scientific publication.

    According to the evidence, the company’s management misled both investors and physicians about the source’s credibility. They claimed that the publication was independent while, in actuality, it was not. The court will later decide on any monetary relief if remains any.

    Even though it was found to have engaged in false advertising, CareDx still claims Natera’s executives are lying about their experience. Scientists have not been able to demonstrate that Natera’s published data and test results are reliable.

    A federal court recently invalidated all of CareDx’s patents against Natera in another case. Natera continues to sue CareDx for patent infringement.

    NTRA: Key Financials

    The company recently announced its fiscal 2021 results. The company’s revenue grew by 60% to reach $625 million. Its net loss was $472 million losing more than 105% compared to the previous year. Although, its cash and cash equivalent saw a massive rise of 73% to reach $84.39 million.

    Conclusion

    However, the company’s growth rate was good enough in fiscal 2021, but the current controversy will have a severe blow to its stock price in the short-run if not in the long run. After much controversy, companies may lose their consumers’ trust, severely affecting their revenue, growth rate, and stock price.

  • Hycroft Mining Holding Corporation (HYMC) surged in the Current Market; here is why?

    Hycroft Mining Holding Corporation (HYMC) surged in the Current Market; here is why?

    Hycroft Mining Holding Corporation (HYMC) surged in the current market after announcing investment in HYMC by AMC and Eric Sprott. HYMC values at $1.89, gaining more than 36.33% compared to the previous closing price. The stock closed at $1.39 at the end of the last trading session. The stock volume traded in the previous trading session was around 29.70 million shares. The current market cap of the company is about $120.79 million.

    HYMC: AMC and Eric Sprott investment

    Hycroft Mining Holding Corporation (HYMC) announced in a press release today that investors in precious metals Eric Sprott and AMC Entertainment Holdings, Inc. (AMC) will invest $56 million in HYMC.

    According to the agreement, AMC and Mr. Sprott will invest approximately $27.8 million each in exchange for 23.4 million units. One unit will consist of a common stock share and a common stock purchase warrant of HYMC. The company decides the pricing as $1.193 per unit, required by NASDAQ for an at-market purchase unit. The pricing for each unit of purchase warrant is decided to be $1.068 per share. The units will have a five-year term from the date it is issued.

    After the deal, AMC will become the second-largest stakeholder in the Hycroft Mining Holding Corporation (HYMC) and will have access to the right of appointing the Hycroft Board of Directors.

    HYMC Management Remarks

    AMC Entertainment Holdings, which has proven its expertise and ability to deal with liquidity issues and raise capital to maximize the value of significant underlying assets, has announced a significant investment in the future of Hycroft, led by Eric Sprott, one of the world’s leading precious metals investors. To put it another way, their investment provides Hycroft with a long-term funding source. Furthermore, their trust in us shows that Hycroft’s gold and silver deposit is of world-class quality and that we have the potential to unlock significant value at this critical juncture in its development. With the help of our new investors, Hycroft can move up the value chain.

    Conclusion

    The company is looking forward to using the proceeding in different corporate expenses, such as working capital or CAPEX, repayment of debts, or other investments. The stock price has surged significantly with this investment.

  • Avinger, Inc. (AVGR) surged in the Pre-market; here is why?

    Avinger, Inc. (AVGR) surged in the Pre-market; here is why?

    Avinger, Inc. (AVGR) gained in the pre-market after announcing its reverse stock split in a press release. AVGR values at $3.95, gaining more than 2,094.44% compared to the closing price one day before the announcement. The stock closed at $0.24 at the end of Friday’s trading session. The stock volume traded in the previous trading session was around 1.55 million shares. The current market cap of the company is about $350.06 million.

    AVGR Reverse Stock Split

    Avinger, Inc. (AVGR) announced yesterday its 1 for 20 reverse splits of its common shares effective since 5:00 pm on March 14, 2022. From now on, one share of AVGR is equal to 20 shares of its issued and outstanding common stock after the reverse stock split.

    The company approved the decision on March 11, 2022, and the decision was approved after getting a green signal from its shareholders. Its shareholders have given the company’s board of directors the authority to implement the reverse stock split and determine the ratio not less than 1 for five or exceeding 1 for 20. So seeing the current scenario, the board has decided to go for 1 for 20.

    On March 15, 2022, the Company’s common stock will reverse split and trade on NASDAQ. The reverse split will reduce the number of outstanding shares of common stock from approximately 95.6 million to 4.8 million before issuing Series D Preferred Stock and warrants. This will affect the terms and exercise prices of options and warrants. To avoid fractional shares, the Company will round up.

    AVGR: Transaction Details

    • The company has decided to go for a reverse stock split in order to achieve the following goals:
    • First, to meet the company’s obligations under the January 2022 issuance of its new Series D Preferred Stock and warrants.
    • Secondly, to meet the Nasdaq Capital Market’s $1.00 minimum bid price requirement, the Company must raise the per-share trading price of its common stock.
    • The third thing is to make more room for the company’s common stock shares available for issuance.

    Conclusion

    The company is looking forward to achieving many goals with this reverse stock split. It will allow them to issue more common stock in the future and increase the value of its stock to meet the NASDAQ compliance required for being listed on the stock market.

  • GitLab Inc. (GTLB) gained in the After-hours; here is why?

    GitLab Inc. (GTLB) gained in the after-hours market after announcing its fourth quarter and fiscal 2022 results. GTLB values at $35.92, losing more than 8.52% compared to yesterday’s closing price. The stock closed at $35.50 at the end of the last trading session. The stock volume traded in the previous trading session was around 938.01K shares. The current market cap of the company is about $4.79 billion.

    GTLB: Q4 and Fiscal 2021 Key Financials

    • GitLab’s revenue in Q4 2022 was $77.8 million. It is an increase of more than 69% compared to the revenue of $46.1 million in Q4 2021.
    • Fiscal 2022 revenue was $252.7 million, 66% more than the revenue of $152.2 million in fiscal 2021.
    • The company’s net loss in Q4 2022 was around $45.8 million, less than compared to the net loss of $120 million in Q4 2021.
    • GTLB’s net loss in fiscal 2022 was around $155.1 million, and profitability improved compared to the net loss of $192.2 million in fiscal 2021.
    • The Q4 2022 loss per share was $0.32, compared to a net loss of $2.31 in Q4 2021.
    • For fiscal 2022, the loss per share was $1.95, compared to $3.82 in fiscal 2021.

    GTLB CEO’s Remarks

    Sid Sijbrandij, CEO of GitLab, stated that revenue climbed 69 percent year-over-year due to clients embracing our DevOps platform. Customers of all sizes joined in on the boom. It looks like the market is moving from DIY DevOps, which is made up of different tools, to a DevOps Platform. Thus, firms can gain a distinct competitive edge by reducing the time to market for their critical software and applications.

    GTLB: 2023 Outlook

    For the first quarter of 2023, the company anticipates revenue in between $77 to $78 million and net loss per share in Q1 will be around $0.28 to $0.27. The company’s fiscal 2023 revenue estimation is around $385.5 million to $390.5 million. Its net loss per share in fiscal 2023 will be between $1.02 and $0.97.

    Conclusion

    The revenue of the company saw a significant gain. Throughout the long run, the company expects to remain focused on executing to create sustainable growth and profitability gains.

  • Baozun Inc. (BZUN) stock declined in the current market; here is why?

    Baozun Inc. (BZUN) declined in the current market after announcing its unaudited fourth quarter and fiscal 2021 results. BZUN values at $5.68, losing more than 12% compared to Friday’s closing price. The stock closed at $6.49 at the end of the last trading session. The stock volume traded in the previous trading session was around 909.67K shares. The current market cap of the company is about $394.62 million.

    BZUN: Q4 and Fiscal 2021 Key Financials

    • Baozun Inc.’s revenue in Q4 2021 was RMB 3.1 billion. It is a decrease of 5.2% compared to the revenue of RMB 3.3 billion in Q4 2020.
    • Fiscal 2021 revenue was RMB 9.3 billion, 6.2% more than the revenue of RMB 8.8 billion in fiscal 2020.
    • The company’s net loss in Q4 2021 was around RMB 8.3 million, less than compared to the net loss of RMB 239.3 million in Q4 2020.
    • BZUN’s net loss in fiscal 2021 was around RMB 219.8 million, compared to the net income of RMB 426 million in fiscal 2020.
    • The Q4 2021 basic loss per share was RMB 0.12, compared to a basic loss per share of RMB 3.27 in Q4 2020.
    • For fiscal 2021, the basic loss per share was RMB 3.05, compared to RMB 6.82 in fiscal 2020.

    BZUN: Share Repurchase Programs

    BZUN, in the fourth quarter, delivered value to shareholders through its share repurchase program and purchased around 8.5 million shares for $39.9 million. Throughout fiscal 2021, the company repurchased around 27.2 million common stock shares for $164.9 million.

    BZUN: Chairman and CEO’s Remarks 

    Mr. Vincent Qiu, Chairman, and CEO of Baozun said that despite ongoing macro-economic problems, Baozun’s business remained resilient and that our team continues to make steady progress on our strategic objectives. We invested heavily in our platform, our technological capabilities, and our skilled staff throughout the year. To promote company growth and sustained value creation, we are committed to providing best-in-class services and solutions to our brand partners in 2022.

    Conclusion

    Baozun Inc. (BZUN) saw a significant increase in digital marketing services and revenue. The company focuses on expanding its services in e-commerce services to help more companies execute their e-commerce strategies.