Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

<ul>
<li>Some low liquidity stocks in the TOPIX Index carry a liquidity factor of 0.75x resulting in their actual index weights being smaller than their default weights.</li>
<li>These names are reviewed every April and if the liquidity factor of a stock gets removed, the stock will enjoy buying flows from passive trackers of TOPIX.</li>
<li>In this insight, we take a look at Quiddity's final predictions for the names that are likely to see their Liquidity Factors removed in April 2023.</li>
</ul>


Some low liquidity stocks in the TOPIX Index carry a liquidity factor of 0.75x resulting in their actual index weights being smaller than their default weights.
These names are reviewed every April and if the liquidity factor of a stock gets removed, the stock will enjoy buying flows from passive trackers of TOPIX.
In this insight, we take a look at Quiddity's final predictions for the names that are likely to see their Liquidity Factors removed in April 2023.


TOPIX Index Upweights: Final Predictions for The "The Big April Basket” 2023

Japan Specialist

Mark Chadwick

Equity Bottom-Up

<ul>
<li>Post FY23 results in mid-February, Appier's stock exhibited significant volatility, despite robust financial performance.</li>
<li>We believe that Appier is a beneficiary of continued growth in ecommerce and increasing ubiquity of AI solutions for marketing.  </li>
<li>Appier trades at a significant discount to global peers and domestic SaaS companies, suggesting significant upside</li>
</ul>


Post FY23 results in mid-February, Appier's stock exhibited significant volatility, despite robust financial performance.
We believe that Appier is a beneficiary of continued growth in ecommerce and increasing ubiquity of AI solutions for marketing.  
Appier trades at a significant discount to global peers and domestic SaaS companies, suggesting significant upside


Appier (4180) | A Volatile Stock Despite Solid SaaS Metrics

<ul>
<li>Strong Q2 results with revenue +42% yoy versus +33% in Q1</li>
<li>Gross margin expansion to 51.3% on improving AI algorithm performance</li>
<li>Stock down around 20% over past couple of months, No change to bullish growth forecasts.</li>
</ul>


Strong Q2 results with revenue +42% yoy versus +33% in Q1
Gross margin expansion to 51.3% on improving AI algorithm performance
Stock down around 20% over past couple of months, No change to bullish growth forecasts.


<ul>
<li>Appier achieved 32% revenue growth and 50.1% gross margin in Q1 FY23, exceeding company expectations</li>
<li>We expect the pace of growth to accelerate, driven by stronger momentum in Digital Content in Q2 and Q3</li>
<li>We remain bullish following the recent pullback in the share price. Stock is attractive at 5x EV/Rev</li>
</ul>


Appier achieved 32% revenue growth and 50.1% gross margin in Q1 FY23, exceeding company expectations
We expect the pace of growth to accelerate, driven by stronger momentum in Digital Content in Q2 and Q3
We remain bullish following the recent pullback in the share price. Stock is attractive at 5x EV/Rev


<ul>
<li>ChatGPT has focused the investment community on the potential of AI to drive business performance and investment returns.</li>
<li>Forbes picked Adobe as its top AI pick in 2023. We pick Appier, which is a faster-growing alternative in the digital marketing space.</li>
<li>Appier’s revenue grew by over 50% last year and unlike many SaaS companies, it is profitable.</li>
</ul>


ChatGPT has focused the investment community on the potential of AI to drive business performance and investment returns.
Forbes picked Adobe as its top AI pick in 2023. We pick Appier, which is a faster-growing alternative in the digital marketing space.
Appier’s revenue grew by over 50% last year and unlike many SaaS companies, it is profitable.


Appier (4180) | It's Doubled, so What's Next

Japan

Appier Group, Inc. provides artificial intelligence software as a service (AISaaS) services based on data-driven decisions. The Company offers data analysis for potential users predicting and acquiring, relationships building and maintaining, purchasing and action motivation, audience intelligence, and more. Appier Group serves clients across Asian.

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Appier Group (4180 JP)

TOPIX Index Upweights: Final Predictions for The "The Big April Basket” 2023

This insight (from Feb 2023) discusses the annual TOPIX Liquidity Factor (LF) removal event (which we call the "Big April Basket"). It might be a...

Janaghan Jeyakumar, CFA

Appier (4180) | A Volatile Stock Despite Solid SaaS Metrics

Appier's stock shows volatility post FY23 results despite strong financials, benefiting from ecommerce growth and AI marketing solutions. Trading...

Mark Chadwick

Appier (4180) | Be Happier

Strong Q2 results with revenue +42% yoy versus +33% in Q1, Revenue accelerates on strong e-commerce, digital marketing. Stock has pulled back to...

Mark Chadwick

Appier (4180) | Another Positive Quarter

We remain bullish on Appier. The first quarter results re-affirm our view that the company will see continued growth in sales, driven by its core...

Mark Chadwick

Appier (4180) | It's Doubled, so What's Next

Appier Group (4180 JP) stock price has more than doubled since we first wrote about the company a year ago. We remain bullish.

Mark Chadwick

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

TOPIX Index Upweights: Final Predictions for The "The Big April Basket” 2023

This insight (from Feb 2023) discusses the annual TOPIX Liquidity Factor (LF) removal event (which we call the "Big April Basket"). It might be a...

Janaghan Jeyakumar, CFA

Appier (4180) | A Volatile Stock Despite Solid SaaS Metrics

​Appier's stock shows volatility post FY23 results despite strong financials, benefiting from ecommerce growth and AI marketing solutions. Trading...

Mark Chadwick

Appier (4180) | Be Happier

Strong Q2 results with revenue +42% yoy versus +33% in Q1, Revenue accelerates on strong e-commerce, digital marketing. Stock has pulled back to...

Mark Chadwick

Appier (4180) | Another Positive Quarter

We remain bullish on Appier. The first quarter results re-affirm our view that the company will see continued growth in sales, driven by its core...

Mark Chadwick

Appier (4180) | It's Doubled, so What's Next

Appier Group (4180 JP) stock price has more than doubled since we first wrote about the company a year ago. We remain bullish.

Mark Chadwick

Appier's stock shows volatility post FY23 results despite strong financials, benefiting from ecommerce growth and AI marketing solutions. Trading...