Can pushing Feiliu to go public revive NetQin’s stock price?

Because its stock price is undervalued, Qihoo 360 recently announced its privatization, exited the concept-listed Chinese stocks, and returned to China for development. NetQin, which also started out as a security company, seems unmoved by the repeated short selling and is still struggling in the concept-listed Chinese stocks.   However, its subsidiary Feiliu is developing rapidly and intends to go public through a reverse takeover of Yema International Group. According to the latest information from Yema International Group, Yema International is further discussing the proposed transaction structure and terms with NetQin.   Can NetQin revive itself by proving its strength through the listing of Feiliu?

  NetQin's stock price has always been undervalued   Since its listing, NetQin has been caught up in various crises, from being named in CCTV's 315 Gala, to being shorted by "Muddy Waters", to senior executives leaving the company one after another. NetQin has always been surrounded by controversy.   After its domestic mobile security business was encroached upon by companies such as Qihoo 360, NetQin, which was in a turbulent period, was unable to respond quickly, resulting in NetQin's failure to make further achievements in the mobile security business.   At the same time, NetQin's model of casting a wide net in business is difficult to show benefits for the time being, and investors are not optimistic about NetQin's development. Zhou Bin, vice president of NetQin's strategy and investor relations, once said that the multi-line strategy will disperse strength, and this model will make NetQin underestimated by investors. NetQin's stock has been hovering at a low price, and even if it rises temporarily, it may be dragged down at any time.   NetQin has realized the drawbacks of scattered businesses and is trying to adjust. Recently, NetQin has reorganized its mobile security, mobile enterprise, mobile medical, mobile entertainment, and mobile game businesses into the Blueberry strategy, with clear lines and strategies, in order to get rid of the disadvantages brought about by scattered businesses.   NetQin has always been confident in its various business lines. NetQin once believed that Feiliu's understanding of the mobile game market and its role brought value to NetQin. It all depends on whether the capital market buys in .

  Can Feiliu’s listing help NetQin turn things around?   Feiliu has always been NetQin's pride. According to NetQin's latest financial report, mobile game revenue increased by 76.7% year-on-year, mainly due to the rapid expansion of Feiliu games in the domestic and overseas markets. Feiliu's booming development has undoubtedly become a highlight of NetQin's financial report. Can NetQin fight a comeback this time through Feiliu's listing?   It is understood that NetQin completed the full acquisition of FLMobile in 2012 , achieving 100% control and making FLMobile a subsidiary of NetQin. Currently, FLMobile has reached cooperation with many top CPs at home and abroad , including Perfect World, Tencent, Molin, Ubisoft, etc., and has successfully issued mobile games such as "Siege", "Dragon Rider's Song", and "Battlefield Tanks" .   Among them, "Siege" has accumulated a turnover of over 200 million, with nearly 6 million active players . According to Zhou Bin, Vice President of Strategy and Investor Relations of NetQin, the number of daily active users and revenue of Feiliu in 2014 increased by more than 100% compared with the same period last year . As of December 31 , 2013 , Feiliu had a total of 106.9 million registered user accounts and 20.4 million monthly active user accounts .   According to data released by third-party research company Analysys International, Feiliu was the top 1 iOS mobile game publisher and the top 3 all-platform mobile game publisher in the Chinese market in the first three quarters of 2013. Moreover, Feiliu is constantly increasing its IP reserves to prepare for the release and operation of medium and heavy mobile games in the future.   Feiliu's strong momentum has attracted the attention of the capital market. Bessen Capital, which has invested in Feiliu, has coveted Feiliu and made a non-binding privatization offer to NetQin. Xu Peixin, the founder of Bessen Capital, once said that NetQin's value is underestimated to a certain extent. He once planned to privatize NetQin at a price of US$ 9.6 per share and believed that Feiliu's valuation would exceed NetQin. If it is repackaged and listed after privatization, it will be a good business.   If Feiliu's reverse acquisition of Yema International Group can go smoothly, it will undoubtedly make many investors look at NetQin differently, and the stock price may also rise. After all, NetQin still has several potential cards in its hand. Xiuse, Enterprise Mobile, and Mobile Healthcare are all potential drivers for NetQin's development.    

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.