- September 10, 2020
AMTD published BlueCity initiation report. BlueCity has been serving LGBTQ population since Danlan.org (founded in 2000), and its central hub – Blued, is the largest online LGBTQ community platform in China and is establishing a strong global presence. We like BlueCity, because of: 1) its specific attractiveness for LGBTQ users with high loyalty, stickiness and spending power; 2) NT: starting overseas markets monetization and steadily expanding to global new geographies; 3) LT: a broader product portfolio to diversify monetization incl. self-own licensed offline pharmacy stores and family planning services. We initiate BlueCity with Buy and derive our PT of US$20.1 by applying 3.5x FY21E P/S, at a premium on mid-sized social platform peers’ average 2.1x FY21E P/S, for: 1) its Blued’s leading position in China market with loyal users; 2) its promising and diverse monetization.
