In today’s briefing:
- Tencent/Netease: Breakthrough in November Batch of Game Approval
- Weimob (2013 HK): Strategic Patience Will Be Rewarded
- EQD | Alibaba (BABA US): Use Elevated Upside to Buy Call Ratios into Year-End
- Bullish Reversals Continue: TAIEX, KOSPI, AEX, Hang Seng, CSI 300. Buy Cyclicals/Growth on Pullbacks
- Taiwan Semiconductor: Initiation of Coverage – Geopolitical Challenges & Other Factors
- Bumble Inc.: Blind Dating Offering & Other Drivers
Tencent/Netease: Breakthrough in November Batch of Game Approval
- China just announced game approval for November batch after one month break. The number of games approved is inline with the previous three months.
- Pace of China game approval stays flattish, at a much slower pace than pre-tightening.
- Both Tencent and Netease received approval for one game. It is more symbolic than financially material. Sentiments are turning slightly but it is not out of the wood yet.
Weimob (2013 HK): Strategic Patience Will Be Rewarded
- Weimob’s share price more than doubled in a month on encouraging 3Q preliminary data and improved sentiment towards China assets
- We explore socio-economic factors resulting in the slow ramp up of China SaaS sector , size Weimob’s TAM by drawing insights from Alibaba and determine its valuation in two-piece report
- In the first part, we argue that inadequate cost or efficiency competitiveness of SaaS solutions over existing labor-based or manual processes have been a key drag
EQD | Alibaba (BABA US): Use Elevated Upside to Buy Call Ratios into Year-End
- Alibaba unveiled an upsized buyback plan this week and stock rallied despite a revenue miss
- Sentiment in China is changing with tweaks to the Covid strategy and improving economic outlook
- Call buying has elevated upside vols providing trading opportunites for both directional and volatility traders
Bullish Reversals Continue: TAIEX, KOSPI, AEX, Hang Seng, CSI 300. Buy Cyclicals/Growth on Pullbacks
- The bear market rally that we have discussed since our Sept. 29 Int’l Compass has managed to surpass our price targets, which were YTD downtrends on the ACWX-US and EFA-US.
- As a result of these bullish reversals and breakdowns on the US dollar (DXY) and 10-year Treasury yield, we are upgrading our outlook to neutral.
- Buy ideas on a pullback in: Consumer Discretionary, Energy, and Technology/Tech Services
Taiwan Semiconductor: Initiation of Coverage – Geopolitical Challenges & Other Factors
- This is our first report on Taiwan Semiconductor, the world’s largest dedicated contract chip manufacturer.
- The company delivered a mixed set of results for the past quarter with revenues below expectations as it continues to see softness in the consumer end-market category.
- TSMC’s other end market categories, like data centers and the automotive industry, are currently stable and it did manage to deliver an earnings beat.
Bumble Inc.: Blind Dating Offering & Other Drivers
- Bumble delivered a mixed set of third-quarter results as it failed to meet market expectations on the revenue front but managed an earnings beat.
- The company produced a decent top-line growth of 17% year over year in Q3, driven by 28% growth for the Bumble App.
- The revenue growth would have been 10 points higher and Bumble App revenue growth would have been 5 points higher after adjusting for forex and the situation in Ukraine.
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