Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<a href="https://www.smartkarma.com/entities/altium-ltd" target="_blank" data-smartkarma-citation="entities:18626:1" rel="noopener">Altium Ltd (ALU AU)</a>, a global software company, <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02382370-2A1302312?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">confirmed and subsequently rejected</a> a non-binding proposal from <a href="https://www.smartkarma.com/entities/autodesk-inc" target="_blank" data-smartkarma-citation="entities:13211:1" rel="noopener">Autodesk Inc (ADSK US)</a>.
The A$38.50/share cash offer by way of a Scheme, was a 41.5% premium to last close and a 47.4% premium to the one-month VWAP.
The indicative proposal was subject to a number of conditions including due diligence, Altium board support, the receipt of all applicable regulatory approvals, and no material adverse changes.
Concerning the offer, Altium said:
<blockquote>
[Altium] considers the Proposal significantly undervalues Altium's prospects and therefore rejects the Proposal at the current price. Altium has a unique position in the electronics  ecosystem and in the past unsolicited acquisition interest has developed from partnership dialogues with others in the ecosystem.
</blockquote>
Shares closed today at $36.78, up more than 35%.
More below the fold.

Altium Ltd (ALU AU), a global software company, confirmed and subsequently rejected a non-binding proposal from Autodesk Inc (ADSK US).
The A$38.50/share cash offer by way of a Scheme, was a 41.5% premium to last close and a 47.4% premium to the one-month VWAP.
The indicative proposal was subject to a number of conditions including due diligence, Altium board support, the receipt of all applicable regulatory approvals, and no material adverse changes.
Concerning the offer, Altium said:

[Altium] considers the Proposal significantly undervalues Altium's prospects and therefore rejects the Proposal at the current price. Altium has a unique position in the electronics  ecosystem and in the past unsolicited acquisition interest has developed from partnership dialogues with others in the ecosystem.

Shares closed today at $36.78, up more than 35%.
More below the fold.

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

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Flitto is a leading AI-driven big data and translation services provider in Korea. It completed its IPO in the Korean stock market on July 17th. The current price of Flitto is 22,000 won, which is 15% below the IPO price of 26,000 won.
We believe that Flitto has an outstanding, long-term promising potential with a deep, competitive moat. Therefore, we are including Flitto in our model portfolio.  We also believe that this is an attractive take-out candidate by Naver, Kakao, and even tech giants such as Google. 
</div>We believe Flitto will be a very attractive stock over the next one to three years. Although forecasting a company such as Flitto which is experiencing an explosive growth in sales is difficult, if we make an assumption of the company's sales growing 73.3% CAGR from 2019 to 2024, this would suggest sales of 93 billion won. If we also assume a 20% operating margin in 2024, this would represent an operating profit of 18.6 billion won in 2024. If we assume a P/S multiple of 4x using our estimated sales of 93 billion won in 2024, this would suggest an implied market cap of 372 billion won. Taking the present value using a 15% annual discount rate suggests the current value of 185 billion won (35,700 won per share), which is 61% higher than the current market cap.


Flitto is a leading AI-driven big data and translation services provider in Korea. It completed its IPO in the Korean stock market on July 17th. The current price of Flitto is 22,000 won, which is 15% below the IPO price of 26,000 won.
We believe that Flitto has an outstanding, long-term promising potential with a deep, competitive moat. Therefore, we are including Flitto in our model portfolio.  We also believe that this is an attractive take-out candidate by Naver, Kakao, and even tech giants such as Google. 
We believe Flitto will be a very attractive stock over the next one to three years. Although forecasting a company such as Flitto which is experiencing an explosive growth in sales is difficult, if we make an assumption of the company's sales growing 73.3% CAGR from 2019 to 2024, this would suggest sales of 93 billion won. If we also assume a 20% operating margin in 2024, this would represent an operating profit of 18.6 billion won in 2024. If we assume a P/S multiple of 4x using our estimated sales of 93 billion won in 2024, this would suggest an implied market cap of 372 billion won. Taking the present value using a 15% annual discount rate suggests the current value of 185 billion won (35,700 won per share), which is 61% higher than the current market cap.

Flitto: AI-Driven, Big Data Langugage & Translation Services

Australia

Appen Ltd is a language, search, and social technology company. The Company provides solutions to improve internalization of products, management of data, and project management for companies.

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Appen Ltd (APX AU)

Altium Ltd (ALU) Rebuffs Autodesk Offer

Altium is clearly in play, and optically, Autodesk's bid appears opportunistic in the face of Covid and Altium's restructuring. An offer north of...

David Blennerhassett

Flitto: AI-Driven, Big Data Langugage & Translation Services

Flitto is a leading AI-driven big data and translation services provider in Korea. It completed its IPO in the Korean stock market on July 17th....

Douglas Kim

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