Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/zip-co-ltd-3708706d-4978-4e29-acbc-d9702b971da9" target="_blank" data-smartkarma-citation="entities:29126:1" rel="noopener">Zip Co Ltd (Z1P AU)</a> has agreed to acquire <a href="https://www.smartkarma.com/entities/sezzle-inc" target="_blank" data-smartkarma-citation="entities:30969:1" rel="noopener">Sezzle Inc (SZL AU)</a> in an all-scrip deal where Sezzle shareholders will receive 0.98 shares of Z1P per shares of SZL.</li>
<li>At last closing prices, the deal values <a href="https://www.smartkarma.com/entities/sezzle-inc" target="_blank" data-smartkarma-citation="entities:30969:1" rel="noopener">Sezzle Inc (SZL AU)</a> at A$2.1658/share, a 21.7% premium to the last close and a 31.7% premium to 30 day VWAP.</li>
<li>
<a href="https://www.smartkarma.com/entities/zip-co-ltd-3708706d-4978-4e29-acbc-d9702b971da9" target="_blank" data-smartkarma-citation="entities:29126:1" rel="noopener">Zip Co Ltd (Z1P AU)</a> has also announced a A$148.7m fully underwritten institutional placement and a A$50m non-underwritten share placement plan to strengthen its balance sheet.</li>
</ul>



Zip Co Ltd (Z1P AU) has agreed to acquire Sezzle Inc (SZL AU) in an all-scrip deal where Sezzle shareholders will receive 0.98 shares of Z1P per shares of SZL.
At last closing prices, the deal values Sezzle Inc (SZL AU) at A$2.1658/share, a 21.7% premium to the last close and a 31.7% premium to 30 day VWAP.

Zip Co Ltd (Z1P AU) has also announced a A$148.7m fully underwritten institutional placement and a A$50m non-underwritten share placement plan to strengthen its balance sheet.


Zip to Acquire Sezzle: Buy Now, Pray Later?

Equity Analyst, LightStream Research

Shifara Samsudeen, FCMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

Green World FinTech Service / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/green-world-fintech-service-co-ltd" target="_blank" data-smartkarma-citation="entities:35281:1" rel="noopener">Green World FinTech Service (6763 TT)</a> is one of the leading third-party payment solution providers in Taiwanese market.</li>
<li>The Covid-19 pandemic has accelerated digitisation of the payments industry in Taiwan. This has helped strong growth in top line and margin improvements for the company.</li>
<li>Though the company seems fairly valued compared to regional and global players, we think further upside is possible given its strong market dominance and demand for fintech in Taiwan.</li>
</ul>



Green World FinTech Service (6763 TT) is one of the leading third-party payment solution providers in Taiwanese market.
The Covid-19 pandemic has accelerated digitisation of the payments industry in Taiwan. This has helped strong growth in top line and margin improvements for the company.
Though the company seems fairly valued compared to regional and global players, we think further upside is possible given its strong market dominance and demand for fintech in Taiwan.


Green World FinTech Service: Green Light On

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>Green World Fintech Service is a fintech company in Taiwan with one of the most rock-solid fundamentals among all Asian fintech companies. </li>
<li>It had 39% and 122% CAGR growth in sales and operating profit, respectively from 2017 to 2020. Its operating margin improved from 4.9% in 2017 to 28.9% in 1Q-3Q 2021. </li>
<li>Nonetheless, our valuation analysis suggests a base case valuation of 15.9 billion TWD and implied price per share of 1,076 TWD, which is 8% below current price. </li>
</ul>


Green World Fintech Service is a fintech company in Taiwan with one of the most rock-solid fundamentals among all Asian fintech companies. 
It had 39% and 122% CAGR growth in sales and operating profit, respectively from 2017 to 2020. Its operating margin improved from 4.9% in 2017 to 28.9% in 1Q-3Q 2021. 
Nonetheless, our valuation analysis suggests a base case valuation of 15.9 billion TWD and implied price per share of 1,076 TWD, which is 8% below current price. 


Green World FinTech Service: A Fintech Company in Taiwan with Rock-Solid Fundamentals

TMT & Consumer Independent Equity Research Analyst, Obex Capital Research

Aaron Gabin

TMT & Consumer Independent Equity Research Analyst

TMT & Consumer Independent Equity Research

Obex Capital Research

“Obex” is Latin for Barriers to Entry. Obex Capital Management’s investment philosophy is driven by an intense focus on which business model’s Barriers to Entry are able to withstand the ever increasing competitive disruption in the TMT and Consumer Sectors.

<ul>
<li>FY22 revenue guidance which was lowered in 3Q (from 20% to 18%) was lowered again (to 15-17%) and is below the company’s medium term targets it issued a year ago.  </li>
<li>FY22 EPS guidance was lowered to ~$4.60-4.75 (1.6% yoy at midpoint) vs. $5.24 consensus.</li>
<li>We think PYPL comes in at $5 and returns to 20% EPS growth in 2023, putting it a ~20x trough forward P/E multiple today.</li>
</ul>


FY22 revenue guidance which was lowered in 3Q (from 20% to 18%) was lowered again (to 15-17%) and is below the company’s medium term targets it issued a year ago.  
FY22 EPS guidance was lowered to ~$4.60-4.75 (1.6% yoy at midpoint) vs. $5.24 consensus.
We think PYPL comes in at $5 and returns to 20% EPS growth in 2023, putting it a ~20x trough forward P/E multiple today.


Paypal: Guess It Wasn’t Just a Pig Through a Python…But Is This a Compounder on Sale?

Index Rebalance

<ul>
<li>There could be 2 changes to the ASX100 and ASX200 prior to the March rebalance due to the acquisitions of <a href="https://www.smartkarma.com/entities/ausnet-services" target="_blank" data-smartkarma-citation="entities:10293:1" rel="noopener">Ausnet Services (AST AU)</a> and <a href="https://www.smartkarma.com/entities/sydney-airport" target="_blank" data-smartkarma-citation="entities:19063:1" rel="noopener">Sydney Airport (SYD AU)</a>. </li>
<li>There will also be the large <a href="https://www.smartkarma.com/entities/bhp-group-ltd" target="_blank" data-smartkarma-citation="entities:147:1" rel="noopener">BHP Group (BHP AU)</a> upweight and funding trade following unification, and possibly the <a href="https://www.smartkarma.com/entities/afterpay-limited" target="_blank" data-smartkarma-citation="entities:26940:1" rel="noopener">Afterpay Touch (APT AU)</a> acquisition by <a href="https://www.smartkarma.com/entities/square-inc" target="_blank" data-smartkarma-citation="entities:23755:1" rel="noopener">Square Inc (SQ US)</a>. </li>
<li>Then there will be more changes to the ASX200 and ASX300 at the March rebalance. There could be a lot of new listings included in the ASX300.</li>
</ul>


There could be 2 changes to the ASX100 and ASX200 prior to the March rebalance due to the acquisitions of Ausnet Services (AST AU) and Sydney Airport (SYD AU). 
There will also be the large BHP Group (BHP AU) upweight and funding trade following unification, and possibly the Afterpay Touch (APT AU) acquisition by Square Inc (SQ US). 
Then there will be more changes to the ASX200 and ASX300 at the March rebalance. There could be a lot of new listings included in the ASX300.


ASX100/​200/300 Index Rebalance Preview (March 2022): A Lot Happening From Now to March

United States

Block, Inc. operates as a financial services and digital payments company. The Company develops a payments platform aimed at small and medium businesses that allows them to accept credit card payments and use tablet computers as payment registers for a point-of-sale system. Block also provides financial and marketing services.

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Block (XYZ US)

Zip to Acquire Sezzle: Buy Now, Pray Later?

Zip is looking to acquire Sezzle in an all-stock deal that values Sezzle at A$491m, a 21.7% premium to the last close. Zip could migrate higher to...

Brian Freitas

Green World FinTech Service: Green Light On

Though Green World seems fairly valued compared to regional and global players, we think there is further upside given its strong market dominance...

Shifara Samsudeen, FCMA, CGMA

Green World FinTech Service: A Fintech Company in Taiwan with Rock-Solid Fundamentals

Green World Fintech Service is a fintech company in Taiwan with one of the most rock-solid fundamentals among all Asian fintech companies. However,...

Douglas Kim

Paypal: Guess It Wasn’t Just a Pig Through a Python…But Is This a Compounder on Sale?

Once Paypal works its way through the tough comps, the narrative for 2H22 of reaccelerating growth will put it back in the hearts of GARP...

Aaron Gabin

ASX100/200/300 Index Rebalance Preview (March 2022): A Lot Happening From Now to March

There will be many changes to the ASX100/200/300 indices from now to March due to M&A activity & price moves. Plus a large funding trade following...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Zip to Acquire Sezzle: Buy Now, Pray Later?

Zip is looking to acquire Sezzle in an all-stock deal that values Sezzle at A$491m, a 21.7% premium to the last close. Zip could migrate higher to...

Brian Freitas

Green World FinTech Service: Green Light On

Though Green World seems fairly valued compared to regional and global players, we think there is further upside given its strong market dominance...

Shifara Samsudeen, FCMA, CGMA

Green World FinTech Service: A Fintech Company in Taiwan with Rock-Solid Fundamentals

Green World Fintech Service is a fintech company in Taiwan with one of the most rock-solid fundamentals among all Asian fintech companies. However,...

Douglas Kim

Paypal: Guess It Wasn’t Just a Pig Through a Python…But Is This a Compounder on Sale?

Once Paypal works its way through the tough comps, the narrative for 2H22 of reaccelerating growth will put it back in the hearts of GARP...

Aaron Gabin

ASX100/​200/300 Index Rebalance Preview (March 2022): A Lot Happening From Now to March

There will be many changes to the ASX100/200/300 indices from now to March due to M&A activity & price moves. Plus a large funding trade following...

Brian Freitas

ASX100/200/300 Index Rebalance Preview (March 2022): A Lot Happening From Now to March