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Summary
- LIZHI stock jumped by over 80 per cent while WSP Global gained over 10 per cent during early trade on Thursday morning.
- Chinese audio firm LIZHI stocks soared following its deal in-car audio deal with EV maker Xpeng Motors.
- WSP Global announced the acquisition of environmental consulting firm Golder Associates for C$1.5 billion.
Stocks of Chinese audio firm LIZHI Inc (NASDAQ: LIZI, LIZI: US) and Canadian design and advisory services company WSP Global Inc (TSX:WSP) soared during early trade on Thursday morning. LIZHI gained on the back of its in-car audio collaboration with Xpeng Motors (XPEV: US). WSP Global stock rose after it announced the acquisition of Enterra, the holding company of environmental consulting firm Golder Associates, for C$1.5 billion.
LIZHI stock was up by over 80 per cent while WSP gained over 10 per cent at 9:46 am ET on Thursday, December 3.
Let us take a detailed look at both these stocks and their recent market performance.
LIZHI Inc (NASDAQ: LIZI, LIZI: US)
LIZHI is a popular China-based online and interactive audio content platform. It hosts podcasts, audio entertainment shows, live streaming shows etc. The platform boasts of 56.2 million average monthly active users for the third quarter ending September 30, 2020, including 448300 average monthly paying users. Its app users uploaded 234 million podcasts in Q3.
The company’s net revenues totaled RMB 361.5 million or US$ 53.2 million in the third quarter of 2020, up 10 per cent year-over-year (YoY). The gross profit stood at RMB 90.6 million or US$ 13.3million in Q3 2020, up 41 per cent YoY.
With the easing COVID-19 restrictions by the Chinese government, the entertainment firm expects net revenues to be in the range of RMB 370 million to RMB 400 million in the fourth quarter of 2020
The company’s current market cap is C$ 108.87 million.
LIZHI stocks debuted on the Nasdaq in February this year and have since lost over 78 per cent value. The scrips are currently trading at US$ 2.36 a pop.
However, following its collaboration announcement with leading Chinese smart electric vehicle company Xpeng Motors, the stocks jumped by nearly 84 per cent. Its current P/B ratio is 4.214.
LIZHI’s newly launched in-car audio content product will be integrated into Xpeng EV in-car intelligent operating system.
LIZHI stock’s one-month performance/ Source: EODHD/Others, Thomson Reuters
WSP Global Inc (TSX:WSP)
Stocks of the Canadian business management and consultancy firm soared by over 10 per cent on Thursday morning. The firm earlier announced the acquisition of earth sciences and environmental consulting firm Golder for C$1.5 billion to capitalize on the ESG (environmental, social and corporate governance) trends and the US$ 1.25-trillion environmental market. The acquisition will be completed in the first half of the second quarter of 2021.
WSP Global’s current market cap is C$ 12.12 billion. Golder will represent 25 per cent of WSP’s total $8 billion pro forma net revenues.
WSP Global’s revenue for the third quarter of fiscal 2020 (ended on September 26, 2020) was C$ 2.1 billion, down 3.8 per cent YoY. Net earnings stood at C$ 104.3 million, up 11.3 per cent YoY. The company distributed a quarterly dividend of C$ 0.375 and currently yields 1.55 per cent.
The industrial stock is up 20 per cent year-to-date.
As per data on the TMX Money portal, the stock holds a current P/E ratio of 42.3, P/B ratio of 2.99 and P/CF ratio of 8.9. The stock delivers a positive return on equity and return on assets of 6.47 per cent and 2.81 per cent, respectively.
The stocks are currently trading at C$ 106.915 apiece.
