Quantitative Equity Analyst, DMA

Charlotte van Tiddens, CFA

Quantitative Equity Analyst

Technology-First Company

DMA is a technology-first company that provides an end-to-end SaaS solution to institutional investors. DMA enables regulated entities like asset managers, wealth managers, investment managers and financial advisors to connect their front and back office, break silos and reduce headcount.

Quantitative Analysis

<ul>
<li>The performance of <a href="https://www.smartkarma.com/entities/naspers-ltd" target="_blank" data-smartkarma-citation="entities:21085:1" rel="noopener">Naspers (NPN SJ)</a> and <a href="https://www.smartkarma.com/entities/prosus-nv-2e2a2230-64b0-4044-b797-a3880fcb487a" target="_blank" data-smartkarma-citation="entities:28301:1" rel="noopener">Prosus NV (PRX SJ)</a> during this week is worth flagging – both counters have outperformed the underlying portfolio, narrowing both discounts notably.</li>
<li>Naspers’ discount to Prosus’ market value continues to push new lows, closing at 9.9% yesterday.</li>
<li>For the week up to the close yesterday, Naspers is up 4.1%, Prosus is up 2.3% and Tencent is down 1.4% in HKD (down 3.7% in ZAR). </li>
</ul>


The performance of Naspers (NPN SJ) and Prosus NV (PRX SJ) during this week is worth flagging – both counters have outperformed the underlying portfolio, narrowing both discounts notably.
Naspers’ discount to Prosus’ market value continues to push new lows, closing at 9.9% yesterday.
For the week up to the close yesterday, Naspers is up 4.1%, Prosus is up 2.3% and Tencent is down 1.4% in HKD (down 3.7% in ZAR). 


Naspers & Prosus: Discounts Narrow This Week, the Great Rotation from Prosus to Naspers Playing Out?

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Event-Driven

<ul>
<li>In Aug 2022, <a href="https://www.smartkarma.com/entities/zomato-ltd" target="_blank" data-smartkarma-citation="entities:28820:1" rel="noopener">Zomato (ZOMATO IN)</a> completed the acquisition of 91% of Blinkit’s outstanding shares via issuing its own shares. These shares were released from their lockup in Aug 2023.</li>
<li>Softbank then sold a part of its stake in Aug 2023, the rest of its stake will come out of lockup soon.</li>
<li>In this note, we will talk about the lock-up dynamics and recent updates.</li>
</ul>


In Aug 2022, Zomato (ZOMATO IN) completed the acquisition of 91% of Blinkit’s outstanding shares via issuing its own shares. These shares were released from their lockup in Aug 2023.
Softbank then sold a part of its stake in Aug 2023, the rest of its stake will come out of lockup soon.
In this note, we will talk about the lock-up dynamics and recent updates.


Zomato Lock-Up - A US$240m+ Softbank Linked Lockup Release

<ul>
<li>During the last two weeks both discounts have widened by more than 1 percentage point, likely driven by risk-off sentiment as opposed to idiosyncratic factors. </li>
<li>Management have released the NAV update for Q2 of FY24. Naspers' NAV can be found <a href="https://www.naspers.com/investors/investing-in-naspers/net-asset-value" target="_blank" rel="noopener">here</a> and Prosus' NAV <a href="https://www.prosus.com/investors/investing-in-prosus/net-asset-value" target="_blank" rel="noopener">here</a>.</li>
<li>During the quarter, Prosus' discount widened by 4.2 percentage points to 39.8% and Naspers' discount widened by 3.6 percentage points to 46.6%, erasing cross-holding unwind gains.</li>
</ul>


During the last two weeks both discounts have widened by more than 1 percentage point, likely driven by risk-off sentiment as opposed to idiosyncratic factors. 
Management have released the NAV update for Q2 of FY24. Naspers' NAV can be found here and Prosus' NAV here.
During the quarter, Prosus' discount widened by 4.2 percentage points to 39.8% and Naspers' discount widened by 3.6 percentage points to 46.6%, erasing cross-holding unwind gains.


Naspers & Prosus: Risk off Trade Puts Pressure on Discounts, NAV Update for Q2 FY24 Released

<ul>
<li>Early on Monday morning, Naspers and Prosus announced the immediate resignation of CEO Bob van Dijk. Management hosted an investor call shortly after. Key takeaways are included below.</li>
<li>Ervin Tu, Group Chief Investment Officer, will take over as Interim CEO. Tu is a strong candidate for the permanent position.</li>
<li>After an initial bounce at the open, both counters sold off, widening the discounts by more than 1 percentage point intra-day.</li>
</ul>


Early on Monday morning, Naspers and Prosus announced the immediate resignation of CEO Bob van Dijk. Management hosted an investor call shortly after. Key takeaways are included below.
Ervin Tu, Group Chief Investment Officer, will take over as Interim CEO. Tu is a strong candidate for the permanent position.
After an initial bounce at the open, both counters sold off, widening the discounts by more than 1 percentage point intra-day.


Naspers (NPN) & Prosus (PRX): Initial Market Reaction to Leadership Changes

Index Rebalance

<ul>
<li>JSE indexes will be rebalanced in the closing auction tomorrow. </li>
<li>MCG will fall out of the TOPI and DTOP and HAR will enter. The ALSI gets reviewed semi-annually in March and September.</li>
<li>ACL and LBR will fall out of the ALSI, ALSI SWIX and the capped variants.</li>
</ul>


JSE indexes will be rebalanced in the closing auction tomorrow. 
MCG will fall out of the TOPI and DTOP and HAR will enter. The ALSI gets reviewed semi-annually in March and September.
ACL and LBR will fall out of the ALSI, ALSI SWIX and the capped variants.


China

Prosus N.V. provides internet based services. The Company focuses on investments in internet, digital media, e-commerce retailing, and consumer internet companies. Prosus serves customers worldwide.

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Prosus NV (PRX SJ)

Naspers & Prosus: Discounts Narrow This Week, the Great Rotation from Prosus to Naspers Playing Out?

A recap of how the discounts traded last week. Naspers’ discount to Prosus’ market value continues to push new lows, both counters outperformed...

DMA

Zomato Lock-Up - A US$240m+ Softbank Linked Lockup Release

Softbank had opted to sell only around half of its stake via a block to raise airing US$120m. The deal is very well flagged

Sumeet Singh

Naspers & Prosus: Risk off Trade Puts Pressure on Discounts, NAV Update for Q2 FY24 Released

Naspers & Prosus: discounts widen during last two weeks driven by risk-off sentiment plus Q2 FY24 NAV update released. Fresh opportunity for those...

DMA

Naspers (NPN) & Prosus (PRX): Initial Market Reaction to Leadership Changes

Naspers & Prosus: initial reaction to leadership changes may suggest that the quality of management is yet to be priced out of discounts, market...

DMA

JSE September 2023 Index Rebalance

Top 40 & Top 40 SWIX: HAR to enter, MCG to fall out. NPN/PRX Cross-holding unwind: yesterday's trading session. JSE indexes will be rebalanced...

DMA

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