Abridge Initiates Coverage on V1 Group with a "Buy" Rating and HK$0.29 Price Target

HONG KONG,May 28,2020 --Abridge Enterprises Company Limited ("Abridge"),a professional investment advisory and asset management company has initiated coverage of V1 Group Limited ("V1 Group" or the "Company",together with its subsidiaries,the"Group"; stock code: 00082.HK),with a "Buy" rating and has set a price target of HK$0.29,a double of its closing price of HK$0.14 on 26 May 2020.

Abridge is of the opinion that V1 Group has finally arrived at the end of the tunnel after years of impairments,stating that they believe the Group's final house cleaning had been completed in 2019 to end "unfortunate though not ill-intended investments". Abridge also commented that the Group is regaining focus despite its broad investment portfolio,especially after the acquisition of Beijing Crazy Sports Management Company Limited ("Crazy Sports"),which has allowed the Group to once again rebuild value through active operational developments.

It is worth noting that Abridge is confident that the remaining businesses of the Group will maintain a viable outlook and make positive contributions individually,particularly for Crazy Sport's operations,which can leverage on the Group's previous clientele,database and experience. They commented that the acquisition of Crazy Sports enabled the Group to formally re-enter the sports lottery sector,where it already possessed strong advantages. Abridge also sees bright prospects for the Group's sports lottery new retail strategy and its complete ecosystem. They have valued Crazy Sports and related businesses,including the Crazy Recommendation app,Crazy Sports app,online mobile interactive games applications and the aforementioned sports lottery new retail business,at HK$2,550 million – a four times enhancement to the HK$630 million spent on the acquisition of Crazy Sports.

In light of the above,Abridge said investors can expect a rapid turnaround for the Group,commensurate with potential value realization at both operational and investment levels. Taking into account the value of the sports lottery new retail strategy,any financing activities that would only serve to highlight said valuation,and sports events that are to return from their postponements in the coming year,Abridge is of the opinion that the Group is justified for revaluation and a longer term,continual,strong re-rating. They forecast the Group's earnings to rebound to HK$203 million by 2022.

About V1 Group Limited

V1 Group Limited was founded on its internet video business in 2005 and became listed on the Hong Kong Stock Exchange in 2006. As one of China's top 100 internet companies,the Group is principally engaged in internet businesses with a focus on China's sports industry. It has created and built a leading comprehensive online and offline sports community and lottery e-commerce ecosystem in China based on lottery players. The Group's business scope covers the sports lottery online information and offline new retail business,internet audio-visual new media,sports games and live-streaming platform,online trading platform and other internet-related investment in the PRC and a satellite TV station in Dubai,the UAE. The Group adheres to its country,market and shareholder-oriented principle. With strong technological capabilities,the Group will maintain a steady and healthy growth momentum and continue to mine the industry. It aims to promote the widespread and sustainable development of the internet and sports industry,and interpret the world with a digital and innovative mindset,such that we can all live a more prolific,better and happier life.

For more information,please visit www.v1group.com.

Disclosure disclaimer:

The analyst(s) who is(are) primarily responsible for this report,including any analyst(s) whose name(s) appear(s) as author of an individual section or sections of the report and any analyst(s) named as the covering analyst(s) of a subsidiary company in a sum-of-the-parts valuation certifies(y) that the opinion(s) on the subject security(ies) or issuer(s),any views or forecasts expressed in the section(s) of which such individual(s) is(are) named as author(s),and any other views or forecasts expressed herein,including any views expressed on the back page of the research report,accurately reflect their personal view(s) and that no part of their compensation was,is or will be directly or indirectly related to the specific recommendation(s) or views contained in this research report: Chiu Man Wai