Category

TMT/Internet

Dec 26
0

Daily Brief TMT/Internet: Nanya Technology, Tokyo Stock Exchange Tokyo Price Index Topix and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Nanya Technology: Consensus Numbers Likely Too High, Net Loss Potential
  • Japanese Companies Will Be Selected as One of Global Stocks for Individual Investors in near Future

Nanya Technology: Consensus Numbers Likely Too High, Net Loss Potential

By Vincent Fernando, CFA

  • Micron’s recent results, where it showed a major margin slide and swung to a net loss, imply weak results ahead for Nanya Tech.
  • We believe that Nanya’s FY2023E consensus figures are likely to be revised down.
  • We see more downside risk ahead for Nanya Tech shares, and will await lower levels before buying based on deep-value.

Japanese Companies Will Be Selected as One of Global Stocks for Individual Investors in near Future

By Aki Matsumoto

  • The government’s policy to expand small investment tax exemption program is expected to lead to increase in stock investments. Individuals are keen to invest in stocks with higher performance potential.
  • Trading in U.S. equities is prominent among under-40s generation. It is a rational investment for these generations with higher risk tolerance to invest in foreign equities with higher expected returns.
  • Individuals no longer have a single choice of Japanese equities as they did during the bubble economy, but have begun to select their investment targets as one of global equities.

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Dec 25
0

Daily Brief TMT/Internet: Hong Kong Hang Seng Index, Delta Electronics Thai, ROBLOX Corp, Take Two Interactive Software, Inc and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades
  • Index Rebalance & ETF Flow Recap: SET50, Stock Connect, Kanzhun, Futu, AMFI
  • Roblox Corporation: Initiation of Coverage – Business Strategy & Key Drivers
  • Take-Two Interactive Software Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report
  • Take-Two Interactive Software Inc.: Initiation of Coverage – Adapting To An Evolving Business Environment & Key Drivers

EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades

By Simon Harris

  • Weekly summary of vol changes and moves across Global Markets
  • Analysing ATM volatility and skew changes over the last 5 days
  • We suggest a few trades to take advantage of the implied vol surfaces

Index Rebalance & ETF Flow Recap: SET50, Stock Connect, Kanzhun, Futu, AMFI

By Brian Freitas

Roblox Corporation: Initiation of Coverage – Business Strategy & Key Drivers

By Baptista Research

  • This is our first report on Roblox, one of the most popular online entertainment and gaming platforms in the U.S. that is gradually spreading its wings across the world.
  • Their DAUs were 58.8 million in Q3 on a DAU basis, a 24% growth from the same quarter last year.
  • It is a fact that Roblox continues to face challenging comparisons especially with the last year and the pandemic times.

Take-Two Interactive Software Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report

By Baptista Research

  • Take-Two Interactive Software is a renowned a well-known developer, publisher, and marketer of games and interactive entertainment for consumers across the globe.
  • The company has expanded its scale tremendously after the recent acquisition of Zynga.
  • In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Take-Two Interactive Software Inc.: Initiation of Coverage – Adapting To An Evolving Business Environment & Key Drivers

By Baptista Research

  • This is our first report on Take-Two Interactive Software, a well-known developer, publisher, and marketer of games and interactive entertainment for consumers across the globe.
  • The company delivered a disappointing result in the past quarter failing to meet Wall Street expectations in terms of revenues as well as earnings.
  • We initiate coverage on the stock of Take-Two Interactive Software with a ‘Buy’ rating.

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Dec 24
0

Daily Brief TMT/Internet: Sea Ltd, Telekomunikasi Indonesia, Jeio, Alami, Micron Technology, Coinbase and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Trading Sea Ltd in 2023: It Is Still The Same Beast
  • Telekomunikasi Indonesia (TLKM IJ) – Increasingly Digital
  • JEIO Lowers IPO Price Range
  • ParagonCorp Arm Pours Funding into Indonesian Shariah Fintech Firm
  • Micron’s FQ1 23 Earnings. Yikes!
  • Binance: Waiting For The Other Shoe To Drop

Trading Sea Ltd in 2023: It Is Still The Same Beast

By Oshadhi Kumarasiri

  • Trading Sea Ltd (SE US) shares this year may not be as straightforward as the previous year.
  • With the share price at pre-COVID levels, swing highs could be difficult to swallow for those of us who would like to remain short Sea Ltd in 2023.
  • Nonetheless, we would be short Sea-Ltd at the turn of the year as we think valuation multiples could fall to a new all-time low with all segments facing stiff challenges.

Telekomunikasi Indonesia (TLKM IJ) – Increasingly Digital

By Angus Mackintosh

  • Telekomunikasi Indonesia (TLKM IJ) produced what looked like a decent set of 9M2022 numbers as it seeks out its future digital reincarnation. 
  • Data continues to dominate revenues, making up 81% of Telkomsel revenue, with Indihome becoming increasingly important at nearly 20% of total revenue, with data centres set to become increasingly important.
  • The recent sell-off looks more to do with year-end liquidity flows than fundamentals with valuations looking increasingly attractive. 

JEIO Lowers IPO Price Range

By Douglas Kim

  • JEIO, a manufacturer of carbon nanotubes for rechargeable batteries, has lowered its IPO price range and offering amount in order to list on the KOSDAQ market.
  • The company lowered the IPO price range to 10,000 won to 13,000 won from 15,000 won to 18,000 won range previously.
  • Our base case valuation of JEIO is target price of 11,268 won per share, which is 2% lower than the mid-point of the IPO price range.

ParagonCorp Arm Pours Funding into Indonesian Shariah Fintech Firm

By Tech in Asia

  • Alami, an Indonesia-based Shariah fintech startup, has secured an undisclosed amount in a capital injection from Paragon Beneva Investama, an investment arm of local cosmetics firm ParagonCorp.
  • Founded in 2018, Alami is a peer-to-peer lender that provides invoice financing to MSMEs in Indonesia.
  • The company has disbursed over 3 trillion rupiah (over US$191 million) to fund over 10,000 MSME projects across various strategic sectors in the country.

Micron’s FQ1 23 Earnings. Yikes!

By Semicon Alpha

  • Micron yesterday announced FQ1 revenues of $4.1 billion, , down 39% sequentially and down 47% year over year.
  • This was still within the forecasted range, albeit at the very low end of the scale.
  • Gross margin came in at 22.9%, down approximately 17 percentage points sequentially, primarily due to lower pricing.

Binance: Waiting For The Other Shoe To Drop

By Kevin George

  • A DOJ investigation adds further negative sentiment to the ‘black box’ of the finance exchange.
  • The DOJ investigation is being investigated by the Department of Justice, which is under investigation into the exchange exchange exchange between banks and banks.
  • The investigation is expected to conclude in the coming weeks. The investigation will be conducted by the Justice Department.

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Dec 23
0

Daily Brief TMT/Internet: Conexio Corp, Kulicke And Soffa Industries,, Black Knight Inc, Taiwan Semiconductor (TSMC), Delta Electronics, Hong Kong Hang Seng Index, Micron Technology, Splunk Inc and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Nojima (7419) Launches Buyout of Conexio (9422)
  • Conexio Corporation (9422 JP) JPY1,911 Tender Offer from Nojima
  • Breaking Estimates Short Candidates: Kulicke & Soffa, Kronos, Marvell Tech, Montauk Renewables
  • MergerTalk:Why Black Knight May Be As Safe As Houses Even If Regulators Stop Its Merger With ICE
  • Taiwan Tech Weekly: Micron Earnings Miss Implies Margin Downside, Hon Hai Moving 30% Apple Business
  • Delta Taiwan Vs. Thailand Monitor: Delta Thai Joining SET50, Could Open Up Rare Rel Valuation Level
  • EQD | HSI Index:-Chinese Equities Have Held up into Year End and We Revisit the December Call Ratio
  • Micron Fiscal Q1: Short-Term Pain For Long-Term Gain
  • Hang Seng Index and Tencent
  • Splunk Is A Rare Tech Growth Opportunity For 2023

Nojima (7419) Launches Buyout of Conexio (9422)

By Travis Lundy

  • Nojima Corp (7419 JP) is buying out Conexio Corp (9422 JP) majority owner Itochu Corp (8001 JP) along with minorities. At a 59% premium, it looks good. 
  • However, in terms of normalised EV/EBITDA or EV/FCF multiple, this is not expensive. 
  • And while the major seller/target and friendlies are oh so close, the register is more interesting than the yuho top 10 shareholder list suggests. 

Conexio Corporation (9422 JP) JPY1,911 Tender Offer from Nojima

By Arun George

  • Conexio Corp (9422 JP) has recommended Nojima Corp (7419 JP)’s tender offer of JPY1,911 per share, an 59.1% premium to the undisturbed price (22 December).
  • The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the offer has been set to meet the 66.67% ownership ratio.
  • The tender offer was set in motion due to Itochu Corp (8001 JP)’s desire to exit. Itochu tendering its 60.34% stake and an attractive offer, suggests a done deal. 

Breaking Estimates Short Candidates: Kulicke & Soffa, Kronos, Marvell Tech, Montauk Renewables

By Eric Fernandez, CFA

  • This model finds companies facing recent sharp cuts in estimates. These shorts can have very disparate characteristics.
  • The key judgement involves whether the negative revisions are temporary or if they are indications of ongoing weakness in the business. 
  • Breaking Estimates stocks often continue to decline after the cuts.  This week we flag:  Kulicke & Soffa, Kronos, Marvell Tech, Montauk Renewables

MergerTalk:Why Black Knight May Be As Safe As Houses Even If Regulators Stop Its Merger With ICE

By Robert Sassoon

  • We think that a ~40% spread overstates the risk of this deal not moving to completion. 
  • The horizontal integration aspects of this transaction can be remedied, but this is a largely vertical merger transaction which regulators may struggle to prove will lead to monopolistic behavior.
  • Even if the  ICE merger is ultimately blocked,  BKI has other supporting factors that could drive upside – an attractive valuation and a potential revival of interest from other parties 

Taiwan Tech Weekly: Micron Earnings Miss Implies Margin Downside, Hon Hai Moving 30% Apple Business

By Vincent Fernando, CFA

  • Micron released its latest results, missing expectations and implying more near-term pain for the memory chip space.
  • Hon Hai could shift 30% of its production for Apple outside of China according to an industry report.
  • Intel delays German expansion citing cost inflation, seeking additional government subsidies.

Delta Taiwan Vs. Thailand Monitor: Delta Thai Joining SET50, Could Open Up Rare Rel Valuation Level

By Vincent Fernando, CFA

  • Delta Thailand will be joining the Thailand SET50 Index, as was predicted by Brian Freitas here on Smartkarma.
  • The “Illogical” valuation is back — Delta Taiwan trades as a smaller company despite being a substantially larger franchise.
  • Opportunity — Index-Related buying of Delta Thailand could open up one of the most historically extreme relative valuations for Delta Taiwan.

EQD | HSI Index:-Chinese Equities Have Held up into Year End and We Revisit the December Call Ratio

By Simon Harris

  • Chinese equities have continued to outperform versus other global markets
  • The HSI Index 200dma has proved to be a barrier to the upside
  • We evaluate the call ratio we suggested in November and recommend action

Micron Fiscal Q1: Short-Term Pain For Long-Term Gain

By Kevin George

  • Micron Technology, Inc. reported fiscal Q1 2023 earnings and announced cost-cutting measures.
  • Macroeconomic trends are still a drag, according to the company.
  • The company also announced cost cutting measures for the next year’s fiscal year.

Hang Seng Index and Tencent

By Untying The Gordian Knot

  • Holiday Volume and excessive price actions make market analysis less than helpful. HSI daily shares traded volume on 21st was the lowest year to date.
  • Thursday saw a pick-up in volume. Word on easing Covid restrictions for international travelers, reopening HK-China Border in January, and a higher close in the US market brought outsized gains.
  • The stock was up 4.12% and had the heaviest volume on HKEX on the 22nd, yet the stock volume was well below 21 days’ average volume.

Splunk Is A Rare Tech Growth Opportunity For 2023

By Kevin George

  • Splunk is stronger with Q3 earnings and guidance. The company is shadowed by takeover talk.
  • The company has a strong cloud market make it a buy. The firm is shadowing by takeover talks.
  • The firm has been in the news for more than two years.

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Dec 22
0

Daily Brief TMT/Internet: Appier Group, Xiaomi Corp, Grab, Delta Electronics Thai, Tokyo Stock Exchange Tokyo Price Index Topix, WCP, Doctor Anywhere, Activolabs, Protean and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Appier (4180) – Down But Not Out; Shareholder Structure Still The Biggest Risk
  • Xiaomi: Massive Layoffs to Rescue Falling Margins
  • Grab (GRAB IJ) – Moving Forward on a Number of Fronts
  • Thailand SET 50 Dec 22 Rebal: Good Hit Rate, Successful Pre-Event Trade, Unwind Now
  • The Attitude Toward Information Disclosure May Make a Further Difference in Stock Valuations
  • TIGER (WISE) Secondary Battery ETF Rebalancing in January: Names to Watch
  • Doctor Anywhere Acquires SG Healthcare Provider, Nets $38.8m Funding
  • Aktivolabs scores US$10M Series A to help populations manage risk of chronic diseases
  • Protean EGov Technologies Pre-IPO – A Key Service Provider but Earnings Have Lagged

Appier (4180) – Down But Not Out; Shareholder Structure Still The Biggest Risk

By Travis Lundy

  • Appier Group (4180 JP) had been among our picks for TSE Prime promotion and we had recommended positioning for it. That worked. On 8 Dec they announced the promotion.
  • The company is now part of TSE Prime which means a TOPIX Inclusion at end-January and an upweight in April. More than 20% of TSE float to buy by end-April.
  • Share price performance has not kept pace with potential, and yesterday’s BOJ decision saw a flurry of volume selling (bailing). Pre-IPO holder overhang may be the biggest “risk” here.

Xiaomi: Massive Layoffs to Rescue Falling Margins

By Shifara Samsudeen, ACMA, CGMA

  • Several news media outlets reported that Xiaomi Corp (1810 HK) has started laying off about 10-15% of its employees across several units of its smartphone and internet services businesses.
  • Xiaomi’s margins have come under pressure with entering into the premium smartphones segment which has resulted in aggressive expansion of offline stores.
  • The company’s 3Q2022 revenues declined 9.7% YoY as a result of decrease in revenue from all three business segments while margins further dropped compared to 3Q2021.

Grab (GRAB IJ) – Moving Forward on a Number of Fronts

By Angus Mackintosh

  • Our recent update with Grab (GRAB US) management revealed a number of interesting product-led initiatives that will drive future growth and customer retention as well as save on costs. 
  • Grab (GRAB US) has already seen significant progress on Grab Unlimited given its link to promos plus it is focusing on higher-spending customers to reduce the need for subsidies.
  • The company’s valuations look attractive relative to growth and considering it is moving more quickly towards profitability plus it has more than ample cash to make it there.

Thailand SET 50 Dec 22 Rebal: Good Hit Rate, Successful Pre-Event Trade, Unwind Now

By Janaghan Jeyakumar, CFA

  • The index changes for the Thailand SET Index (SET INDEX) for the December 2022 Rebalance were announced yesterday (20th December 2022) after the close.
  • There will be four ADDs/DELs for the SET 50 index. 
  • In this insight, we take a closer look at our expectations for index flows and potential trading ideas.

The Attitude Toward Information Disclosure May Make a Further Difference in Stock Valuations

By Aki Matsumoto

  • The less frequently information is disclosed, the greater the impact of single disclosure on stock prices. Fewer quarterly disclosure reduces trading volume, which will have negative impact on stock valuations.
  • Companies listed on U.S. market will continue quarterly disclosure, while companies with limited human resources won’t adopt quarterly disclosure. Even within the same sector, companies may adopt different disclosure attitudes.
  • Metrical’s analysis shows that the IR factor is highly positively correlated with Tobin’s q. Also, different disclosure stances may emerge depending on the ratio of foreign shareholders.

TIGER (WISE) Secondary Battery ETF Rebalancing in January: Names to Watch

By Sanghyun Park

  • The key to this rebalancing is the inclusion of WCP, which satisfies the requirements of minimum listing period and secondary battery sales amount.
  • As a hedge for the LONG WCP position, we can use Soulbrain and Solus Advanced, whose passive outflow is relatively high among those of a similar size to WCP.
  • Among large caps, we should pay attention to L&F, Posco Chemical, and Iljin Materials. However, we should be cautious about approaching them as an active trading target.

Doctor Anywhere Acquires SG Healthcare Provider, Nets $38.8m Funding

By Tech in Asia

  • Singapore-headquartered Doctor Anywhere (DA) is set to acquire medical services group Asian Healthcare Specialists (AHS) in a cash deal valued at about S$109 million (US$76.7 million) at an offer price of S$0.188 (US$0.13) per share.
  • The healthtech firm has also announced a US$38.8 million series C1 financing round led by Novo Holdings to partly fund the AHS acquisition and accelerate growth.
  • According to DA’s financial statements, the company’s revenue hit S$31.9 million in 2021, an over 2.8x growth from the previous year

Aktivolabs scores US$10M Series A to help populations manage risk of chronic diseases

By e27

  • Singapore-based digital health-science company Aktivolabs has secured US$10 million in a Series A round of investment led by Mitsui & Co, Adaptive Capital Partners, and SEEDS Capital.
  • The company will develop the existing algorithm and data-analytics programme to enhance the efficiency and accuracy of predicting, preventing and self-managing chronic disease using digital biomarkers.
  • The platform harnesses real-time digital health data elements in a low-touch, cost-effective manner with measurable actuarial and actionable value to life and health insurers.

Protean EGov Technologies Pre-IPO – A Key Service Provider but Earnings Have Lagged

By Sumeet Singh

  • Protean eGov Technologies (PET) is looking to raise up to US$600m in its upcoming India IPO.
  • Protean eGov Technologies (PET) is a key IT-enabled solutions company in India engaged in conceptualizing, developing and executing nationally critical greenfield technology solutions. 
  • In this note, we look at the company’s past performance.

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Dec 21
0

Daily Brief TMT/Internet: Delta Electronics Thai, Adobe Systems and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • SET50 Index Rebalance: CENTEL, COM7, DELTA, RATCH Added; BLA, IRPC, KCE, SAWAD Out
  • TMT Left for Dead Long Ideas: Adobe

SET50 Index Rebalance: CENTEL, COM7, DELTA, RATCH Added; BLA, IRPC, KCE, SAWAD Out

By Brian Freitas

TMT Left for Dead Long Ideas: Adobe

By Aaron Gabin

  • Adobe is down 42% in 2022, and down 22% relative to the S&P. 
  • Valuation has been cut in half, and investors have voiced concerns and skepticism about its (incredibly) expensive acquisition of Figma in September.
  • Adobe remains better positioned than most large cap software peers as it maintained its guidance from October Analyst Day, highlighting the secular tide behind digital transformation efforts remains strong. 

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Dec 20
0

Daily Brief TMT/Internet: Kanzhun, Softbank Group, Kuaishou Technology, Bukalapak, Cambricon Technologies Corp, Alibaba (ADR), Hyperlounge, GoTo, Dmall Inc, Sumo Logic Inc and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Boss Zhipin (2076 HK | BZ US) HK Dual Primary Listing on 22 Dec – Index, Southbound, and SPECIAL
  • Softbank Group – Requiem for WeWork’s Premium Valuation
  • China Internet Weekly (19Dec2022): Trip.com, Kuaishou, IQiyi, Activision Blizzard
  • Bukalapak (BUKA IJ) – Opportunity from Adversity
  • Cambricon Technologies: Trade Blacklist by the US Govt Likely to Have Long-Term Negative Impact
  • BABA Key Sell Points
  • Hyperlounge Raises US$8M in Series A to Grow Beyond Being a Business Analytics Platform
  • GoTo IPO Lockup Expiry Follow-Up – Has Corrected but Has Traded Relatively Little Volume
  • Dmall Pre-IPO Tearsheet
  • Sizable Beat: Sumo Logic Reported Better Than Expected 3QFY23 Results

Boss Zhipin (2076 HK | BZ US) HK Dual Primary Listing on 22 Dec – Index, Southbound, and SPECIAL

By Travis Lundy

  • Kanzhun (BZ US) a.k.a. has been listed in the US since about the same time as DiDi Global (DIDI US), and it had similar but minor tech issues pre-listing. 
  • On Friday 16 December, the company announced it would conduct a Listing by Introduction in Hong Kong under the ticker Zhipin (2076 HK), listing on 22 Dec. 
  • That creates an interesting launch supply/demand dynamic, likely HS Tech inclusion in March 2023, and then Southbound much later in 2023.

Softbank Group – Requiem for WeWork’s Premium Valuation

By Kirk Boodry

  • The market cap of Vision Fund portfolio company The We Company (WeWork) (WE US) has fallen decisively below that of rival IWG PLC (IWG LN) for the first time
  • Still despite WeWork’s constant drag on portfolio returns including c. $500mn this quarter, Vision Fund remains on track to end the quarter in the black (+$2bn QTD)
  • The holding company discount appears to have stabilized at 35% but this seems a bit steep with markets volatile again and a move to 40% would not surprise

China Internet Weekly (19Dec2022): Trip.com, Kuaishou, IQiyi, Activision Blizzard

By Ming Lu

  • Trip.com’s revenue increased by 29% YoY and adjusted EBITDA increased 164% YoY in 3Q22.
  • Kuaishou announced that the views of short play increased by 40% in 2022.
  • Activision Blizzard announced that they are looking for a new agency in China.

Bukalapak (BUKA IJ) – Opportunity from Adversity

By Angus Mackintosh

  • The ironically named warung-tech segment in Indonesia has seen a recent spate of layoffs by a number of key players, as the path to profitability becomes the key focus. 
  • One company that stands out as a potential beneficiary is Bukalapak, which is already the dominant player in this space through its Mitra business, especially outside Tier 1 cities. 
  • Bukalapak saw some dramatic improvements in both take rates and contribution margins in 3Q2022, with more to come in 4Q2022 and beyond, from both its Mitra and Specialty store segments.

Cambricon Technologies: Trade Blacklist by the US Govt Likely to Have Long-Term Negative Impact

By Douglas Kim

  • It was recently announced that US government put 36 Chinese companies including Cambricon Technologies on its trade blacklist that can restrict the semiconductor maker’s access to US technologies and products.
  • The US government has determined that Cambricon Technologies and these other Chinese companies pose risk to the US national security.
  • We believe that Cambricon Technologies being included in the trade blacklist by the US government is likely to have a long-term negative impact on the company.

BABA Key Sell Points

By Thomas Schroeder

  • BABA ADR shows well defined range trade points as the rising wedge matures. 173 stands out as formidable sell resistance and 157 the level to crack.
  • MACD trendline coincides the “0” turn level that is expected to cap the upside near term and induce fresh down leg. The May break does send a forward weak signal.
  • The macro picture continues to warn of a 135 retest in 2023. Current rising wedge is corrective in nature.

Hyperlounge Raises US$8M in Series A to Grow Beyond Being a Business Analytics Platform

By e27

  • Hyperlounge, a real-time data analysis and management insights SaaS platform for small and medium-sized (SME) business executives, announced that it had raised US$8 million in Series A investment.
  • The funding round is led by Altara Ventures, together with FuturePlay, StoneBridge, BA Partners, RyuKyung PSG, and Nextrans.
  • South Korean software reseller UClick joined the funding round as a strategic investor.

GoTo IPO Lockup Expiry Follow-Up – Has Corrected but Has Traded Relatively Little Volume

By Sumeet Singh

  • GoTo pre-IPO shareholders were released from the lockup on 1st Dec 2022, which led to a 47% slide in its share price.
  • We had written about the upcoming lockup expiry in our earlier note, GoTo IPO Lockup Expiry – US$13bn Lockup Release or in Other Words, the Real IPO.
  • While the price appears to be settling down now, given the intra-day trading limits in Indonesia,  very little volumes have been transacted compared to the shares released from lockup.

Dmall Pre-IPO Tearsheet

By Ethan Aw

  • Dmall Inc (1751691D CH) is looking to raise about US$200m in its upcoming HK IPO. The deal will be run by Credit Suisse and CMB International.
  • Dmall provides cloud-based, end-to-end SaaS platforms purpose-built for the local retail industry. 
  • Its service offerings consist of a retail core service cloud, an e-commerce service cloud and a marketing and advertising service cloud. 

Sizable Beat: Sumo Logic Reported Better Than Expected 3QFY23 Results

By Andrei Zakharov

  • We maintain a bullish view on Sumo Logic Inc (SUMO US)  after the company reported stronger than expected 3QFY23 revenues and management updated its financial guidance for FY23. 
  • We were impressed with subscription revenue growth, strong gross margins, and lower-than-expected operating loss. Sumo Logic Inc (SUMO US)  increased FY23 revenue guidance to $298M-$299M.
  • Our estimates suggest the company will cross the $300M ARR mark in 2022 and the stock currently trades at a discount to the 20%+ growth peer group.

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Dec 19
0

Daily Brief TMT/Internet: Kurly Inc, Twitter Inc and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Korea FSC’s Official Rule Changes for Local IPOs & Key Takeaways
  • Elon Sold More Falling Tesla Stock. Margin Calls? Twitter Failing? Bank Demands? Likely All Three.

Korea FSC’s Official Rule Changes for Local IPOs & Key Takeaways

By Sanghyun Park

  • Extending bookbuilding period to seven days (and test-the-waters) is unlikely to make any real difference. Leaving the financial capacity check to underwriters will likely cause sharp confusion in the market.
  • The purpose of penalizing so-called hot money, like flippers and non-pricing institutions, is understandable. However, whether FSC has fully considered the side effects caused by uniformly applying this is questionable.
  • Expanding the allowable price range on a listing day is the most crucial point we should pay attention to, and we must design a post-IPO trading strategy accordingly.

Elon Sold More Falling Tesla Stock. Margin Calls? Twitter Failing? Bank Demands? Likely All Three.

By Vicki Bryan

  • Elon Musk sold billions more of Tesla near 2-yr lows, signaling he & Twitter need serious cash NOW. 
  • His banks know why—they hold Elon’s margin loans and they get Twitter’s financial info every month.
  • And the banks want Elon to buy back from them Twitter’s riskiest LBO debt, which they can’t sell because of how fast he is destroying Twitter’s business and prospects.

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Dec 18
0

Daily Brief TMT/Internet: Alibaba (ADR), Kanzhun, Elmo Software, Hong Kong Hang Seng Index, O2Micro International and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • ECM Weekly (18th Dec 2022) – China ADRs, Skymark, Daiei, Weilong, KFintech, Sula, Endeavour, Adani
  • Kanzhun (BZ US/ 2076 HK): Dual Primary Listing & Potential HSTECH Inclusion
  • Elmo Software (ELO AU)’s Scheme Meeting on 30 January
  • EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades
  • O2Micro (OIIM US) Privatisation Vote on 31 January

ECM Weekly (18th Dec 2022) – China ADRs, Skymark, Daiei, Weilong, KFintech, Sula, Endeavour, Adani

By Sumeet Singh

  • Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs
  • On the IPO front,  things are started to cool down in to the year end with some smaller issuers still trying their luck to get listed before the year end.
  • On placements front, most of the action was in India with Australia seeing a large offering after a while.

Kanzhun (BZ US/ 2076 HK): Dual Primary Listing & Potential HSTECH Inclusion

By Brian Freitas

Elmo Software (ELO AU)’s Scheme Meeting on 30 January

By Arun George

  • The IE considers K1’s A$4.85 offer for Elmo Software (ELO AU) to be fair and reasonable as it is towards the high end of its valuation range of A$4.39-4.98.
  • K1 has received FIRB and US antitrust approval. The remaining key conditions are shareholders and court approval.
  • This is a done deal. At the last close price and for the 23 February 2023 payment, the gross and annualised spread is 1.9% and 10.9%, respectively.

EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades

By Simon Harris

  • Weekly summary of vol changes and moves across Global Markets
  • Analysing ATM volatility and skew changes over the last 5 days
  • We suggest a few trades to take advantage of the implied vol surfaces

O2Micro (OIIM US) Privatisation Vote on 31 January

By Arun George

  • O2Micro International (OIIM US)’s EGM to vote on the US$5.00 per ADS privatisation offer from FNOF Precious Honour Limited is on 31 January 2023.
  • Shareholders representing two-thirds of shares need to approve the deal. As rollover shareholders represent 16.92% of voting rights, 59.88% of disinterested shareholders must vote YES to meet the two-thirds threshold.
  • While peers have re-rated, the offer is attractive and there are no competing bids. At the last close, the gross spread to the offer is 11.6%.   

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Dec 17
0

Daily Brief TMT/Internet: Paypal Holdings and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • PayPal Holdings Inc (PYPL US): TSS < 10 - New Multi-Month Low Risks Imminent Failure and Reversal

PayPal Holdings Inc (PYPL US): TSS < 10 - New Multi-Month Low Risks Imminent Failure and Reversal

By David Coloretti, CMT

  • PYPL US has declined 32% in the August to December period.
  • Our proprietary TSS methodology deems the interim downtrend to be exhausted (Trend Sustainability Score < 10).
  • Thursday’s new multi-month low (NY close at 69.77) has a high probability of being unsustainable and triggering an upward correction of minimum 8% to 13% in the coming 1-2 weeks.

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