YY - JOYY's Q3'20 Results - Bigo's Rapid Growth Continues A Potential Multibagger

• JOYY is our bet in live-streaming entertainment. A substantial weight in the thesis goes to Bigo LIVE. And, as recent news rolled in, we see JOYY as a multi-bagger.
• Previously, we valued JOYY at $9.0B on a conservative basis without taking into account the value of YY Live - JOYY's Chinese operation.
• However, JOYY will collect $3.6B for YY Live by selling to Baidu, which instantly raises our valuation to $13.2B.
• What will lift JOYY to a multi-bagger level is that the deal eliminates a stagnating division and removes the overhang of a domiciled Chinese company.
• Finally, Q3 results were excellent! Revenue grew 36%, margins expanded, operating cash was $152M, which brought net debt cash position to $2.8B. Bigo exploded 270%+ YoY in developing nations.

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