Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>At equal price to ACT, Ito-san wins because of certainty/immediacy, but provided his price is above the bottom of the range and adequately compensates 7&amp;i for "additional actionable avenues."</li>
<li>The <a href="https://www.smartkarma.com/entities/amcor-limited" target="_blank" data-smartkarma-citation="entities:674:1" rel="noopener">Amcor Limited (AMC AU)</a>/<a href="https://www.smartkarma.com/entities/berry-global-group-inc" target="_blank" data-smartkarma-citation="entities:9428:1" rel="noopener">Berry Global Group (BERY US)</a> merger looks clean. However, Berry's % of earnings (revs, EBITDA, and profit), are higher than the % under the share split</li>
<li>This Temasek-led development will have a marginal impact on <a href="https://www.smartkarma.com/entities/tuya-inc" target="_blank" data-smartkarma-citation="entities:32158:1" rel="noopener">Tuya Inc (TUYA US)</a>. Creating supply and demand is hard. And Temasek-held/backed vehicles on the SGX are already abundant.</li>
</ul>


At equal price to ACT, Ito-san wins because of certainty/immediacy, but provided his price is above the bottom of the range and adequately compensates 7&amp;i for "additional actionable avenues."
The Amcor Limited (AMC AU)/Berry Global Group (BERY US) merger looks clean. However, Berry's % of earnings (revs, EBITDA, and profit), are higher than the % under the share split
This Temasek-led development will have a marginal impact on Tuya Inc (TUYA US). Creating supply and demand is hard. And Temasek-held/backed vehicles on the SGX are already abundant.


Last Week in Event SPACE: Seven & I, Amcor/Berry, WH Group/Smithfield, Tuya

Founder, CEO, GSBR Research

Garvit Bhandari

Founder, CEO

Leading Provider of Equity and Investment Research

GSBR Research

We are an independent equity research provider focused on covering global markets. The aim of the research is to provide an unbiased view of the fundamentals of the company.

Equity Bottom-Up

<ul>
<li>Temasek-Backed 65 Equity Partners bought 13% stake in Tuya, implying a total investment of US$100 million (or S$134M). </li>
<li>The fund’s mandate is to support high-growth, mid-cap companies seeking a listing on the Singapore Exchange (SGX).</li>
<li>The listing will benefit Tuya by providing easy access to capital. Tuya will be able to use stock as a currency to fund its expansion plans in Southeast Asia.</li>
</ul>


Temasek-Backed 65 Equity Partners bought 13% stake in Tuya, implying a total investment of US$100 million (or S$134M). 
The fund’s mandate is to support high-growth, mid-cap companies seeking a listing on the Singapore Exchange (SGX).
The listing will benefit Tuya by providing easy access to capital. Tuya will be able to use stock as a currency to fund its expansion plans in Southeast Asia.


Tuya Inc - Growth Trajectory to Accelerate Following 13% Stake Purchase by 65 Equity Partners

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

<ul>
<li>65 Equity Partners, a Temasek-backed global investment firm with $3B+ in AUM, took a ~13% stake in Tuya for ~$100M.</li>
<li>Jerry Wang, Tuya’s CEO and Founder, assumed that Tuya would consider a potential secondary listing in Singapore to strengthen company’s presence in the global capital markets.</li>
<li>With $1B+ in cash, revenue growth re-acceleration, non-GAAP op margin break-even and turnaround plan, I have a positive view on the stock longer-term.</li>
</ul>


65 Equity Partners, a Temasek-backed global investment firm with $3B+ in AUM, took a ~13% stake in Tuya for ~$100M.
Jerry Wang, Tuya’s CEO and Founder, assumed that Tuya would consider a potential secondary listing in Singapore to strengthen company’s presence in the global capital markets.
With $1B+ in cash, revenue growth re-acceleration, non-GAAP op margin break-even and turnaround plan, I have a positive view on the stock longer-term.


TUYA (TUYA.US): Depressed Valuation, $1B+ In Cash, Is Turnaround Story Ahead?

Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy Research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

<ul>
<li>On November 18th, 2024, Temasek-affiliated investment fund 65Equity bought 13% of TUYA, an IOT hardware company and planned to bring the company to list on the Singapore Stock Exchange;</li>
<li>TUYA is trading at US$901mn market cap, equivalent to 3.2x 12TTM sales. This isn't cheap. Xiaomi, a high flying stock, now trades at 2.0x 12TTM sales. TUYA is not profitable;</li>
<li>TUYA is a good and real company but in a bad business. Electronics inventory cycle and advanced stocking for Trump's Tariff Hike shall support earnings in the next few quarters.</li>
</ul>


On November 18th, 2024, Temasek-affiliated investment fund 65Equity bought 13% of TUYA, an IOT hardware company and planned to bring the company to list on the Singapore Stock Exchange;
TUYA is trading at US$901mn market cap, equivalent to 3.2x 12TTM sales. This isn't cheap. Xiaomi, a high flying stock, now trades at 2.0x 12TTM sales. TUYA is not profitable;
TUYA is a good and real company but in a bad business. Electronics inventory cycle and advanced stocking for Trump's Tariff Hike shall support earnings in the next few quarters.


TUYA: Is The King of White Label IOT Ready to Charter a Different Course?

Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

<ul><li>Tuya reported another strong quarter, with revenue of $81.6 million, up 34% Y/Y (1Q and 2Q were up 30% and 29%, respectively).</li><li>Gross margin stayed in the mid-40s (46%). IoT PaaS revenue grew 26% Y/Y to $57.9 million.</li><li>Its 230-bp Y/Y margin improvement was significant, coming in at 46.9%. </li></ul>

Tuya reported another strong quarter, with revenue of $81.6 million, up 34% Y/Y (1Q and 2Q were up 30% and 29%, respectively).Gross margin stayed in the mid-40s (46%). IoT PaaS revenue grew 26% Y/Y to $57.9 million.Its 230-bp Y/Y margin improvement was significant, coming in at 46.9%. 

Tuya, Inc. - Another Strong Quarter of Revenue Growth (+34%) And Stable Margins

United States

Tuya Inc., doing business as Tuya Smart, provides IoT cloud platform. The Company offers solutions which enables brands, retailers, OEMs, and manufacturers to develop, launch, manage, and monetize software-enabled devices and services. Tuya Smart serves customers worldwide.

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Tuya Inc (TUYA US)

Last Week in Event SPACE: Seven & I, Amcor/Berry, WH Group/Smithfield, Tuya

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

Tuya Inc - Growth Trajectory to Accelerate Following 13% Stake Purchase by 65 Equity Partners

Temasek-backed 65 Equity Partners invests US$100 million in Tuya to support its listing on SGX, providing access to capital for expansion in...

GSBR Research

TUYA (TUYA.US): Depressed Valuation, $1B+ In Cash, Is Turnaround Story Ahead?

A Temasek-backed 65 Equity Partners has acquired a ~13% stake in Tuya. In my insight, I discuss peer valuation, upside catalysts and fundamentals...

Andrei Zakharov

TUYA: Is The King of White Label IOT Ready to Charter a Different Course?

Temasek bought 13% of TUYA and planned to list on SGX. We believe TUYA's valuation is high and the company's business model, customer segment and...

Blue Lotus Research Institute

Tuya, Inc. - Another Strong Quarter of Revenue Growth (+34%) And Stable Margins

Tuya reported another strong quarter, with revenue of $81.6 million, up 34% Y/Y (1Q and 2Q were up 30% and 29%, respectively).

Water Tower Research

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Last Week in Event SPACE: Seven & I, Amcor/Berry, WH Group/Smithfield, Tuya

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

Tuya Inc - Growth Trajectory to Accelerate Following 13% Stake Purchase by 65 Equity Partners

​Temasek-backed 65 Equity Partners invests US$100 million in Tuya to support its listing on SGX, providing access to capital for expansion in...

GSBR Research

TUYA (TUYA.US): Depressed Valuation, $1B+ In Cash, Is Turnaround Story Ahead?

A Temasek-backed 65 Equity Partners has acquired a ~13% stake in Tuya. In my insight, I discuss peer valuation, upside catalysts and fundamentals...

Andrei Zakharov

TUYA: Is The King of White Label IOT Ready to Charter a Different Course?

Temasek bought 13% of TUYA and planned to list on SGX. We believe TUYA's valuation is high and the company's business model, customer segment and...

Blue Lotus Research Institute

Tuya, Inc. - Another Strong Quarter of Revenue Growth (+34%) And Stable Margins

Tuya reported another strong quarter, with revenue of $81.6 million, up 34% Y/Y (1Q and 2Q were up 30% and 29%, respectively).

Water Tower Research

Temasek-backed 65 Equity Partners invests US$100 million in Tuya to support its listing on SGX, providing access to capital for expansion in...