SHARE PUNT OF THE WEEK
WHAT IS IT?
BNN Technology provides a variety of internet services to large Chinese partner firms. Its payments platform supports the Chinese state media group Xinhua’s mobile app, which has more than 140m users. It also provides exclusive footballbased mobile content through tie-ups with major clubs such as Arsenal, Manchester City and Barcelona.
WHAT’S THE LATEST?
BNN has landed a deal targeting China’s 2,800 towns and counties with apps for paying utility bills, mobile topups and car fines. Two further platforms will arrive in the next 12 months to provide jobseeking services to China’s 35m students and credit rating services to both companies and individuals. In recent weeks BNN’s plans for a secondary listing on Nasdaq have been boosted by the arrival of a new chairman, Harry Keiley, from America’s second-largest pension fund, CalSTRS.
WHO BACKS IT? Some of the world’s biggest and oldest funds, including Capital Group, with more than 5pc, as well as Fidelity, with 4.2pc, and Henderson, with 4.3pc. Chief executive Darren Mercer, who founded BNN ten years ago and listed it on AIM in 2014, also has a 12.2pc stake.
WHY SHOULD YOU INVEST?
BNN is well placed to build one of China’s biggest databases, helped by the country’s migration online, an offshoot from its growing middle class. Fast broadband and mobile phone ownership are also part of Premier Li Keqiang’s Internet Plus strategy. Similar businesses are highly rated on the Nasdaq in the US, which could mean a stronger valuation in London. Broker Mirabaud’s target price is 208p, against nearly 70p today.
…AND WHY YOU SHOULDN’T
China isn’t every investor’s cup of tea. The state has great influence on which businesses win contracts. Regulation is a little unpredictable and progress in negotiations can be slow.