In today’s briefing:
- Nexon (3659) | The Best Pipeline Ever
- Socionext Pre-IPO Peer Comparison – Margins Have Been Weaker than Peers, but Gap Has Been Closing
- India EdTech Woes: Waning Demand, Dried up Funding & Risk of Eroding Valuations
- Tencent Music – Earnings Show Recovery but Do Not Rush to Make an Entry
- GoDaddy Inc: Initiation of Coverage – Business Strategy
- GoDaddy Inc: Detailed Credit Analysis & Financial Strength Evaluation Report
- Trimble Inc: Detailed Credit Analysis & Financial Strength Evaluation Report
- Trimble Inc: Initiation of Coverage – The Bilberry Acquisition & Other Drivers
- Motorola Solutions Inc: Initiation of Coverage – Revenue Stickiness & Other Drivers
- Motorola Solutions Inc: Detailed Credit Analysis & Financial Strength Evaluation Report
Nexon (3659) | The Best Pipeline Ever
- Nexon’s stock price is down -20% from the highs made in April and -30% from its highs last year.
- Nexon is a key beneficiary of the trend to immersive virtual worlds and live game operations
- The best pipeline in Nexon’s history will drive higher Free Cash Flows and shareholder returns
Socionext Pre-IPO Peer Comparison – Margins Have Been Weaker than Peers, but Gap Has Been Closing
- Socionext (6526 JP) is looking to raise up to US$285m in its Japan IPO.
- Socionext is a fabless semiconductor provider which commenced operations after integrating the system on a chip (SoC) businesses of Fujitsu Semiconductor Limited and Panasonic Holding Corporation.
- In this note, we undertake a peer comparison with its international peers, which have a similar fabless business model-type to that of Socionext’s
India EdTech Woes: Waning Demand, Dried up Funding & Risk of Eroding Valuations
- BYJU’S (1391510D IN), the world’s most valued online learning company, shocked the street with reported losses of USD576 mn on revenues of USD286 mn for the year ending March2021.
- Post-Pandemic return to school has reset growth trajectory for India’s blooming EdTech sector that thrived during COVID times attracting multi-billion dollar valuations.
- Industry wide layoffs and few shut downs have raised concerns on growth prospects for edTech players and sustainability of their boom period valuations.
Tencent Music – Earnings Show Recovery but Do Not Rush to Make an Entry
- TME’s shares are due to start trading on HKEx tomorrow once it carries out a secondary listing by introduction. The company neither issues new shares nor raise any proceeds.
- The company’s earnings growth has started decelerating with having to end exclusive music licensing agreements with WMG, UMG and Sony Music a year ago as part of a SAMR probe.
- TME’s 2Q2022 results show recovery in its earnings, however, we would recommend waiting until regulatory crackdown on tech platforms eases off.
GoDaddy Inc: Initiation of Coverage – Business Strategy
- This is our first report on cloud-based solutions provider, GoDaddy.
- The company is one of the largest players in the domains, hosting and other related cloud-based solutions space across the globe.
- This quarter, the company launched its beta WooSaas solution, allowing it to reach larger customers.
GoDaddy Inc: Detailed Credit Analysis & Financial Strength Evaluation Report
- GoDaddy is a cloud-based solutions provider and one of the largest players in the domains, hosting and other related cloud-based services.
- The company is currently facing a challenging forex environment but this has not stopped them from delivering a positive result.
- This quarter, the company launched its beta WooSaas solution, allowing it to reach larger customers.
Trimble Inc: Detailed Credit Analysis & Financial Strength Evaluation Report
- Trimble Inc is a well-known player in the agri-tech space.
- The company has gone through its fair share of corporate restructuring with a series of acquisitions and divestments.
- On execution, Trimble continues to simplify its portfolio through actions like decreasing the number of product offerings and part numbers.
Trimble Inc: Initiation of Coverage – The Bilberry Acquisition & Other Drivers
- This is our first report on agri-tech player, Trimble Inc.
- The company has delivered a robust set of results this quarter with growth in total revenue and gross margin, with excellent progress seen on the Trimble Construction One offering.
- From the perspective of capital allocation, Trimble has divested 5 businesses where the revenue was more than 90%.
Motorola Solutions Inc: Initiation of Coverage – Revenue Stickiness & Other Drivers
- This is our first report on communications specialist, Motorola Solutions.
- In services and software, Motorola’s revenue was up highlighted by robust software growth.
- Motorola Solutions recently went on to acquire Videotec S.p.A, the global supplier of the ruggedized video security solutions.
Motorola Solutions Inc: Detailed Credit Analysis & Financial Strength Evaluation Report
- Motorola Solutions is a renowned communications and analytics player and has a strong market position particularly in the land mobile radio (LMR) communications domain.
- In the SI and product segments, continued strong order demand in both Video and LMR drives a high level of backlog.
- Motorola strengthened its video portfolio with its acquisitions of Callipsa, which brought the company advanced cloud-native video analytics.
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