Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

Green World FinTech Service / Equity Bottom-Up

<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

Fintech & EM-focused Analyst, KT Capital Group

Alec Tseung

Fintech & EM-focused Analyst

Lifenet Insurance Company / Equity Bottom-Up

We have discussed the more detailed investment thesis and financial analysis in our previous note (<a href="https://www.smartkarma.com/insights/lifenet-a-rejuvenated-insurtech-story-in-japan" target="_blank" data-smartkarma-citation="insights:53842" rel="noopener">Lifenet: A Rejuvenated InsurTech Story in Japan)</a>. In this brief note, we will focus more on its recent partnership and “platformization” strategy and why this could be a future catalyst.

We have discussed the more detailed investment thesis and financial analysis in our previous note (Lifenet: A Rejuvenated InsurTech Story in Japan). In this brief note, we will focus more on its recent partnership and “platformization” strategy and why this could be a future catalyst.

Lifenet: "Platformization" To Potentially Drive the Next Phase of Growth

Private Capital Markets

For an investment in MoMo, which is a leading e-wallet in Vietnam, our analysis shows that the most sensitive factor that would impact a potential investor's return is the company's take rate.Hence, even if the digital payments and e-wallets sector in Vietnam could present significant growth, the return from investing in MoMo could still be unattractive if its take rate drops in the future, given the sector's intensifying competition.The key to defending its future take rate is diversifying away from e-wallets and payments to become a financial facilitator with a complete ecosystem in the coming 3 – 5 years, like Ant Group in China. This is also the strategy Grab Financial Group is going after.

For an investment in MoMo, which is a leading e-wallet in Vietnam, our analysis shows that the most sensitive factor that would impact a potential investor's return is the company's take rate.Hence, even if the digital payments and e-wallets sector in Vietnam could present significant growth, the return from investing in MoMo could still be unattractive if its take rate drops in the future, given the sector's intensifying competition.The key to defending its future take rate is diversifying away from e-wallets and payments to become a financial facilitator with a complete ecosystem in the coming 3 – 5 years, like Ant Group in China. This is also the strategy Grab Financial Group is going after.  

Vietnam's MoMo: A Venture Capital Investment With Private Equity Return?

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

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> stock has taken a beating recently following a lot of negative press about the Buy Now Pay Later (BNPL) industry. This included a Rebel Wilson ad pulled from Australian TV after complaints from consumer protection groups for playing down the risks of taking on debt. Here in New Zealand, there have been calls for greater regulation of BNPL with families struggling to afford basics while paying off the BNPL loans.Now, <a href="https://www.smartkarma.com/entities/square-inc" target="_blank" data-smartkarma-citation="entities:23755:1" rel="noopener">Square Inc (SQ US)</a> has announced that it plans to acquire <a href="https://www.smartkarma.com/entities/afterpay-limited" target="_blank" data-smartkarma-citation="entities:26940:1" rel="noopener">Afterpay Touch (APT AU)</a> in an all-stock deal that values Afterpay at a 30% premium to its last close. <a href="https://www.smartkarma.com/entities/afterpay-limited" target="_blank" data-smartkarma-citation="entities:26940:1" rel="noopener">Afterpay Touch (APT AU)</a> shareholders will receive 0.375 shares of <a href="https://www.smartkarma.com/entities/square-inc" target="_blank" data-smartkarma-citation="entities:23755:1" rel="noopener">Square Inc (SQ US)</a> Class A common stock for each Afterpay share they hold on the record date. <a href="https://www.smartkarma.com/entities/square-inc" target="_blank" data-smartkarma-citation="entities:23755:1" rel="noopener">Square Inc (SQ US)</a> may elect to pay 1% of total consideration in cash. The transaction values <a href="https://www.smartkarma.com/entities/afterpay-limited" target="_blank" data-smartkarma-citation="entities:26940:1" rel="noopener">Afterpay Touch (APT AU)</a> at A$39bn.The transaction is expected to close in the first quarter of 2022 subject to shareholder approval, receipt of regulatory approvals and no material adverse effect in relation to <a href="https://www.smartkarma.com/entities/afterpay-limited" target="_blank" data-smartkarma-citation="entities:26940:1" rel="noopener">Afterpay Touch (APT AU)</a> or <a href="https://www.smartkarma.com/entities/square-inc" target="_blank" data-smartkarma-citation="entities:23755:1" rel="noopener">Square Inc (SQ US)</a>.<a href="https://www.smartkarma.com/entities/square-inc" target="_blank" data-smartkarma-citation="entities:23755:1" rel="noopener">Square Inc (SQ US)</a> intends to establish a secondary listing on the ASX to allow <a href="https://www.smartkarma.com/entities/afterpay-limited" target="_blank" data-smartkarma-citation="entities:26940:1" rel="noopener">Afterpay Touch (APT AU)</a> shareholders to trade <a href="https://www.smartkarma.com/entities/square-inc" target="_blank" data-smartkarma-citation="entities:23755:1" rel="noopener">Square Inc (SQ US)</a> shares via CHESS Depositary Interests (CDIs) on the ASX. We expect the Square CDIs to be included in the <a href="https://www.smartkarma.com/entities/s-p-asx-200" target="_blank" data-smartkarma-citation="entities:22901:1" rel="noopener">S&amp;P/ASX 200 (AS51 INDEX)</a> replacing <a href="https://www.smartkarma.com/entities/afterpay-limited" target="_blank" data-smartkarma-citation="entities:26940:1" rel="noopener">Afterpay Touch (APT AU)</a>, though the free float on the CDIs will be lower.

The Afterpay Touch (APT AU) stock has taken a beating recently following a lot of negative press about the Buy Now Pay Later (BNPL) industry. This included a Rebel Wilson ad pulled from Australian TV after complaints from consumer protection groups for playing down the risks of taking on debt. Here in New Zealand, there have been calls for greater regulation of BNPL with families struggling to afford basics while paying off the BNPL loans.Now, Square Inc (SQ US) has announced that it plans to acquire Afterpay Touch (APT AU) in an all-stock deal that values Afterpay at a 30% premium to its last close. Afterpay Touch (APT AU) shareholders will receive 0.375 shares of Square Inc (SQ US) Class A common stock for each Afterpay share they hold on the record date. Square Inc (SQ US) may elect to pay 1% of total consideration in cash. The transaction values Afterpay Touch (APT AU) at A$39bn.The transaction is expected to close in the first quarter of 2022 subject to shareholder approval, receipt of regulatory approvals and no material adverse effect in relation to Afterpay Touch (APT AU) or Square Inc (SQ US).Square Inc (SQ US) intends to establish a secondary listing on the ASX to allow Afterpay Touch (APT AU) shareholders to trade Square Inc (SQ US) shares via CHESS Depositary Interests (CDIs) on the ASX. We expect the Square CDIs to be included in the S&amp;P/ASX 200 (AS51 INDEX) replacing Afterpay Touch (APT AU), though the free float on the CDIs will be lower. 

Afterpay (APT AU) - Square Is Buying Now in an All Stock Deal

Market & Forensics Analyst, Beat the Street

Nimish Maheshwari

Market & Forensics Analyst

Beat the Street

Beat The Street was founded by Nimish Maheshwari and Sudarshan Bhandari, both of whom are Chartered Accountants by Profession, known for their expert analysis in the fields of Business, Sectoral analysis, and Corporate governance.

With a strong social media presence of 45,000+ Subscribers across various platforms, they are considered trusted voices in the industry. Their insights and analysis have been featured in some of India’s most prominent publications, including the Economic Times, Dalal Street Investment Journal, The Morning Context, and The Ken.

Their analysis on Bankrupt & Insolvent companies has been instrumental in saving investors from significant losses. They have a keen eye for identifying red flags and has identified exclusive redflags earlier in Vedanta, Nykaa, Dhani Services, Adani and many more.

Read Business Not Stock Prices

Forensic Accounting

<ul>
<li>Diving Deep into Hindenburg Research's comprehensive report on Temenos triggers a market plunge, alleging accounting manipulations, failed North American expansion, product failures, and troubled European deals.</li>
<li>Allegations include aggressive revenue recognition, excessive R&amp;D capitalization, difficulty in revenue collection, inflated free cash flow, and executive insiders stock divestment.</li>
<li>Temenos denies allegations, defending its business integrity, performance, and financial standing, but market volatility persists, emphasizing the need for transparent communication and governance reassurance.</li>
</ul>


Diving Deep into Hindenburg Research's comprehensive report on Temenos triggers a market plunge, alleging accounting manipulations, failed North American expansion, product failures, and troubled European deals.
Allegations include aggressive revenue recognition, excessive R&amp;D capitalization, difficulty in revenue collection, inflated free cash flow, and executive insiders stock divestment.
Temenos denies allegations, defending its business integrity, performance, and financial standing, but market volatility persists, emphasizing the need for transparent communication and governance reassurance.


Unveiling the Shadows: A Deep Dive into Hindenburg Research's Exposé on Temenos

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.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Block (SQ US)

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

Lifenet: "Platformization" To Potentially Drive the Next Phase of Growth

Lifenet's "platformization" strategy could supplement its current business model and drive future growth as global Fintech development moves into a...

Alec Tseung

Vietnam's MoMo: A Venture Capital Investment With Private Equity Return?

Take rate is the most critical factor that determines the return MoMo could bring to investors. The key to defending its take rate amid intense...

Alec Tseung

Afterpay (APT AU) - Square Is Buying Now in an All Stock Deal

Square is looking to acquire Afterpay in an all stock deal that values Afterpay at A$39bn, a 30% premium to its last close. The premium is the...

Brian Freitas

Unveiling the Shadows: A Deep Dive into Hindenburg Research's Exposé on Temenos

Reason behind 33% Fall in Temenos Share Price: A Deep Dive into Hindenburg Research's latest exposé on Temenos comprising of financial...

Nimish Maheshwari

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)