Smart Share Global Limited (EM): A Bull Case Theory

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We came across a bullish thesis on Smart Share Global Limited on Maius Partners’s Substack. In this article, we will summarize the bulls’ thesis on EM. Smart Share Global Limited’s share was trading at $1.3300 as of October 3rd. EM’s trailing P/E was 15.47 according to Yahoo Finance.

Smart Share Global, also known as Energy Monster (Nasdaq: EM), illustrates the turbulent evolution of China’s sharing economy leaders. Debuting on Nasdaq at $8.50 per ADS in April 2021 with a $2.2 billion valuation, the company’s stock has since fallen below $1.00, setting the stage for a management-led buyout.

CEO Mars Cai, supported by Trustar Capital, proposed $1.25 per ADS, a move widely seen as a lowball “take-under” bid capitalizing on the company’s depressed valuation. Hillhouse Capital, a major shareholder, intervened with a fully funded $1.77 per ADS offer, 42% higher, introducing genuine competition and legal pressure. This has created a high-conviction, asymmetric investment opportunity for minority shareholders, potentially generating ~20% returns over 3–6 months.

Energy Monster operates one of China’s largest mobile device charging networks, with 9.6 million power banks across 1.28 million locations. Initially following an asset-heavy, blitzscaling strategy, it later pivoted to an asset-light model, outsourcing hardware while retaining platform and branding control. This shift limits capex requirements, with the business capable of generating ¥200 million EBITDA annually, though statutory profitability remains affected by legacy depreciation.

The governance dynamics center on Jiawei Gan, whose dual roles as Hillhouse operating partner, board member, and early investor create a conflict of interest that intensifies scrutiny over the Special Committee’s evaluation of competing bids. Hillhouse has leveraged this conflict through public filings, invoking fiduciary duties and Cayman appraisal rights, placing legal and reputational pressure on the Trustar consortium and board.

While risks include potential management entrenchment or a stalemate that collapses both bids, the structured competition and superior economics of Hillhouse’s proposal position Energy Monster as a uniquely compelling investment at current market levels, with high probability of a material rerating if governance and legal pressure force a fair transaction.

Previously we covered a bullish thesis on Nerdy, Inc. by Unemployed Value Degen in September 2024, which highlighted the company’s scalable online tutoring platform, strong institutional partnerships with 500 school districts, and potential for substantial revenue growth and profitability by 2026. The company’s stock price has appreciated by 26% since our coverage, reflecting execution on growth initiatives. Maius Partners shares a similar bullish perspective but emphasizes the asymmetric, short-term opportunity from a contested buyout and governance conflict at Smart Share Global.

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Disclosure: None.