In today’s briefing:
- Alibaba to Pursue Dual Primary Listing in HK – Impact on Stock Connect, Indices, Etc
- Preview Pc Partner 1H22 Earnings: Solid Profits and Cash Now over 100% of Market Cap
- Cars24 Tearsheet – Leading Used Car Marketplace
- Plus Digital Technologies Pre-IPO Tearsheet
- Fidelity National Information Services: Initiation of Coverage – Core Processing Business Upside & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (07/22)
- Jabil Inc.: Initiation of Coverage – Collaborations With SolarEdge, Cardo Systems, & Other Key Drivers, Financial Forecasts, DCF & Comparables Valuation, Key Risks (07/22)
- Fidelity National Information Services: Detailed Credit Analysis & Financial Strength Evaluation Report, Key Risks & ESG Assessment (07/2022)
- Viavi Solutions Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report, Key Risks (07/2022)
- Jabil Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report, Key Risks (07/2022)
- Viavi Solutions Inc.: Initiation of Coverage – The NTT DOCOMO Partnership, New Product Launches & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, Key Risks (07/22)
Alibaba to Pursue Dual Primary Listing in HK – Impact on Stock Connect, Indices, Etc
- This morning – 26 July – Alibaba (ADR) (BABA US) / Alibaba Group (9988 HK) issued an announcement it would pursue a primary listing on the HKEX.
- When Alibaba listed in NY, it was on ADRs. When it listed in HK, it was the shares underlying the ADRs but it was a quickie secondary listing.
- It will now seek a dual primary listing as others have. This will make BABA Southbound-eligible and will slightly improve BABA’s HSI funding trade prospects in future.
Preview Pc Partner 1H22 Earnings: Solid Profits and Cash Now over 100% of Market Cap
- 1H22 was a story of two halves: 1Q22 still showed record profits but 2Q22 got progressively worse. 3Q22 started weak with inventory clearance and Nvidia new GPU launch awaited.
- Even after paying a fantastic final dividend in June 2022, it is now trading below net cash on the balance sheet.
- We estimate net cash on the balance sheet is now 9 HKD vs 7 HKD share price.
Cars24 Tearsheet – Leading Used Car Marketplace
- Cars24 (1716847D IN) is one of India’s leading used auto (primarily car) marketplace. The company claims a 90% share in the online used car market.
- Channel feedback suggests no customer loyalty and a poor competitive position compared to local unorganised sales yards.
- Losses narrowing due to reduction in expenses, declining revenues and recent high profile exits all point to caution.
Plus Digital Technologies Pre-IPO Tearsheet
- Plus Digital Technologies (PDT CH) is looking to raise about US$150m in its upcoming Hong Kong IPO. The deal will be run by Jefferies and Guotai Junan.
- Plus Digital Technologies provides digitalised sales and marketing and SaaS+ services to its customers to enhance their offline sales and marketing efficiency and drive their offline retail sales.
- Its provision of services is supported by its Field Management Ecology System (FMES) platform, which contains a variety of digitalised products with different functionalities to meet customers’ various requirements.
Fidelity National Information Services: Initiation of Coverage – Core Processing Business Upside & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (07/22)
- This is our first report on the leading global technology solutions provider to the banking and finance industry – Fidelity National Information.
- The company’s annual organic growth expectations were all exceeded with a 9% organic top-line growth.
- In this report, we have carried out a fundamental analysis of the historical financial statements of the company.
Jabil Inc.: Initiation of Coverage – Collaborations With SolarEdge, Cardo Systems, & Other Key Drivers, Financial Forecasts, DCF & Comparables Valuation, Key Risks (07/22)
- This is our first report on diversified manufacturing services and solutions provider, Jabil Inc.
- The company has maintained a strong diversification strategy which has helped it perform despite a difficult supply chain environment and widely reported shutdowns in China.
- During the quarter, the company further collaborated with two companies, SolarEdge and Cardo Systems, to expand its supply chain.
Fidelity National Information Services: Detailed Credit Analysis & Financial Strength Evaluation Report, Key Risks & ESG Assessment (07/2022)
- Fidelity National Information is a technology solutions provider to the worldwide banking and finance industry.
- The company had a strong start to the year, 2022 far outpacing its projections for revenue and delivering a solid organic top-line growth.
- During the quarter, they launched their Guaranteed Payments solution, making it the only payment processor to provide a fully integrated solution guaranteed to increase e-commerce transaction approval rates and remove chargebacks resulting from fraudulent purchases.
Viavi Solutions Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report, Key Risks (07/2022)
- Viavi Solutions is a leading provider of network test solutions, monitoring and assurance solutions to the telecom industry, enterprises, network equipment manufacturers, Governments, and avionics corporations.
- The North American service providers upgraded and expanded their networks with fibre which benefitted the company.
- Its solutions for assurance and products for data centres have been experiencing significant growth.
Jabil Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report, Key Risks (07/2022)
- Jabil Inc is a highly diversified manufacturing services and solutions provider across multiple industries.
- The company has maintained a strong diversification strategy which has helped it perform despite a difficult supply chain environment and widely reported shutdowns in China.
- The strong demand within EMS, partially offset by sporadic Covid-19 challenges within DMS, was the primary factor driving their revenues since the start of 2022.
Viavi Solutions Inc.: Initiation of Coverage – The NTT DOCOMO Partnership, New Product Launches & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, Key Risks (07/22)
- This is our first report on Viavi Solutions, a major player within the network test solutions and monitoring space.
- As North American service providers upgraded and expanded their networks with fibre, fibre grew by double-digit percentages from the same time the previous year.
- We initiate coverage on Viavi Solutions with a ‘Hold’ rating with a revised target price.
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