In today’s briefing:
- Pushpay (PPH NZ): Sixth Street/BGH Return with a NZ$1.42 Offer
- Tencent (700 HK) Earnings Preview: To Stop Decrease in 4Q22 and to Recover in 2023
- Quiddity Flow Expectations HSTECH Jun 23: New Oriental Education IN; AAC Technologies OUT
- Cosmo AM&T: Strong Momentum from Likely Inclusion in MSCI Korea Standard in 2023
- Fresh Safety Concerns Follow OpenAI’s GPT-4 Release
- Pagseguro, a Cheap Compounder?
- LONGi Green Energy to Build $600 Million Solar Panel Plant in U.S.
- Dorothy Energization Scheduled; Financing Secured; Company at an Inflection Point
- Auto Dealer Financing Startup Broom Bags US$10M to Diversify Product Offerings
Pushpay (PPH NZ): Sixth Street/BGH Return with a NZ$1.42 Offer
- Sixth Street/BGH have come back for Pushpay Holdings (PPH NZ) with a revised offer of NZ$1.42 per share, a 6.0% premium to the previous failed offer of NZ$1.34 per share.
- Sixth Street/BGH have secured total commitments to accept the offer from 28.9% of outstanding shares, including all the shareholders that publicly voted against the previous scheme.
- The offer is around the mid-point of the IE’s valuation range. At the last close and for the end-May payment, the gross and annualised spread is 2.2% and 7.4%, respectively.
Tencent (700 HK) Earnings Preview: To Stop Decrease in 4Q22 and to Recover in 2023
- We believe revenue will grow by 2.5% YoY in 4Q22 and 9% in 2023.
- We believe EPS will decrease by 62% YoY in 4Q22 and increase by 16% in 2023.
- We expect the stock has an upside of 42% for yearend 2023. Buy.
Quiddity Flow Expectations HSTECH Jun 23: New Oriental Education IN; AAC Technologies OUT
- In this insight, we take a look at the potential index changes and the resultant capping flows for the HSTECH Index in June 2023.
- According to our estimation, there could be one ADD/DEL for the HSTECH in June 2023 triggering total one-way index flows of US$238mn.
- The final index changes along with indicative capping and index weights will be published in Mid/Late-May 2023.
Cosmo AM&T: Strong Momentum from Likely Inclusion in MSCI Korea Standard in 2023
- We provide a fundamental analysis of Cosmo AM&T (005070 KS) (Cosmo Advanced Materials & Technology), which is increasingly likely to become included in MSCI Korea Standard index in 2023.
- Cosmo AM&T is a borderline inclusion candidate for MSCI Korea Standard in May 2023. If it does not get included in May, it could get included in 2H 2023.
- All in all, the increasing possibility of MSCI Korea Standard inclusion combined with strong sales and profit momentum could result in a further positive momentum on its share price.
Fresh Safety Concerns Follow OpenAI’s GPT-4 Release
- ChatGPT-4 is here and OpenAI is betting that it’s the smartest version so far.
GPT-4 has a broader general knowledge and problem solving abilities, the company said in a research paper that was released alongside the chatbot.
The paper showed that the latest model beat 90% of bar exam takers.
Pagseguro, a Cheap Compounder?
- I was complaining recently that I couldn’t find any cheap stocks, but I will take that back!
- I got another one, Pagseguro (PAGS). A Brazilian payment processor and online bank and potential compounder.
- PAGS trades at about 8x through earnings, has been growing quite rapidly and could see explosive short term earnings growth if they can bring down their financing costs.
LONGi Green Energy to Build $600 Million Solar Panel Plant in U.S.
- Chinese solar wafer giant LONGi Green Energy Technology Co. Ltd. will partner with U.S. solar developer Invenergy to build a $600 million, 5-gigawatt solar panel assembly factory in Ohio
- The project will be LONGi’s first entrance into the U.S. manufacturing market.
- What will eventually be the largest crystalline silicon solar panel factory in the U.S. will create 850 jobs, and operations are expected to start by the end of 2023
Dorothy Energization Scheduled; Financing Secured; Company at an Inflection Point
- Final funding for Project Dorothy is now secured, with energization scheduled for the first week of April, pending approval from ERCOT.
- Soluna recently announced $7.5 million in funding from existing project investor Spring Lane Capital (SLC) that will be used to complete the final energization of Dorothy and support corporate expenses.
- SLC’s stake in the 25 MW Dorothy 1A increases to ~85% from 32%, but Soluna retains the right to 50% of 1A’s profits after SLC achieves an 18% IRR hurdle.
Auto Dealer Financing Startup Broom Bags US$10M to Diversify Product Offerings
- Broom, an all-in-one automotive SME solutions startup in Indonesia, has secured US$10 million in a pre-Series A funding round
Jakarta-headquartered Broom will use the money to diversify its product offerings and further accelerate dealer inventory turnover.
Established in 2021, Broom provides an end-to-end financial solution for auto dealer inventories.
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