In today’s briefing:
- Xiaomi (1810 HK)’s US$5bn Placement: Unfavourable Index Dynamics but Strong Momentum
- Xiaomi US$5.3bn Placement – Relatively Small, Strong Momentum but Is Expensive
- Tencent/Netease: One Game Approved Each in March
- Revisiting Korea’s Local Rights Issue Arb Setup
- Tech Supply Chain Tracker (25-Mar-2025): DeepSeek impacts chip demand globally.
- Taiwan Tech Weekly: Delta At Nvidia GTC 2025; Foxconn EV Strategy Win; Key Semi Industry Indicators
- Docusign Inc.: Will Its Emphasis On The Expansion of Identity and Access Management (IAM) Pay Off?
- Telefónica: Execution and Valuation Update
- Soluna Holdings, Inc. – Secures $5 Million in Non-Dilutive Debt Financing
- Asana Inc.: An Enhanced Revenue Forecasting & ARR Growth Insight!
Xiaomi (1810 HK)’s US$5bn Placement: Unfavourable Index Dynamics but Strong Momentum
- Xiaomi Corp (1810 HK) is looking to place 750m shares at a price range of HK$52.8-54.6/share, a 4.2-7.4% discount from last. That could raise up to HK$40.95bn (US$5.27bn).
- There will be limited passive buying near-term. There will be more passive buying at the end of May. Then there will be passive selling early June.
- Shorts will be hurting from the relentless move higher in the stock and there could be short covering if the stock moves lower from these levels.
Xiaomi US$5.3bn Placement – Relatively Small, Strong Momentum but Is Expensive
- Xiaomi Corp (1810 HK) is looking to raise around US$5.3bn via selling 3% additional shares.
- The shares have done exceedingly well this year and are now trading at their all time highs.
- In this note, we will talk about the placement and run the deal through our ECM framework.
Tencent/Netease: One Game Approved Each in March
- China announced game approval for the March batch. The number of games approved remained at a higher level than 2023.
- The pace of China game approval appears to have accelerated to the same level as pre-tightening. We see pick up in approval rate this month.
- Both Tencent and Netease received approval for one game. In addition, Kingsoft received approval for its legendary Sword Heroes series.
Revisiting Korea’s Local Rights Issue Arb Setup
- Korea’s rights issues offer a clean arb setup—track stock rights vs. spot price, with first price as a cap, and lock in predictable entry vs. exit costs.
- Aggressive locals skip hedging, betting the discount holds between final pricing and listing. History backs it, but it’s a case-by-case call—not a blanket recommendation.
- Samsung SDI and Hanwha Aerospace’s KRW 5.5T raise is massive, likely flooding stock rights into the market—prime setup for arb plays.
Tech Supply Chain Tracker (25-Mar-2025): DeepSeek impacts chip demand globally.
- DeepSeek is a significant factor driving global chip demand with implications for various industries including automotive.
- Tesla and Tata are in talks regarding the sourcing of EV components, highlighting the growing importance of electric vehicles in the market.
- Tim Cook’s visit to China to discuss collaboration with DeepSeek signals potential advancements in the supply chain and technology sectors.
Taiwan Tech Weekly: Delta At Nvidia GTC 2025; Foxconn EV Strategy Win; Key Semi Industry Indicators
- NVIDIA GTC 2025 Last Week — Delta Electronics Expands Role in Nvidia Ecosystem Showcasing AI-Centric Power Solutions
- Foxconn’s Huge EV Bet Pays Off: Key Mitsubishi Win Could Spark Additional Automaker Deals to Come
- Semiconductors. Key Indicator Updates, 2024 In Review, and 2025 Forecasts
Docusign Inc.: Will Its Emphasis On The Expansion of Identity and Access Management (IAM) Pay Off?
- DocuSign, Inc. delivered a noteworthy performance in the fourth quarter of Fiscal Year 2025, underpinned by both strategic pivots and operational efficiency gains.
- The company reported a revenue of $776 million, marking a 9% year-over-year rise, culminating in an annual revenue of $3 billion—an 8% increase over the prior year.
- This growth trajectory underscores a positive momentum, primarily fueled by the launch of Intelligent Agreement Management (IAM), a comprehensive AI-driven platform focused on transforming how businesses manage agreements.
Telefónica: Execution and Valuation Update
- Telefónica is nearing completion of its Latin American divestment strategy, unlocking capital from low-margin markets and reducing geopolitical risk, with €2.5 billion equity value estimated for remaining Hispam units.
- A conservative 4x EV/EBITDA multiple applied to Hispam subsidiaries yields a fair value of €5.06 per share, while a prudent €4.50 target reflects geopolitical and execution risk buffers.
- Proceeds from disposals strengthen Telefónica’s balance sheet, support its 7% dividend yield, and enable reinvestment into high-growth segments like Tech and fibercos, enhancing long-term shareholder value and operating efficiency.
Soluna Holdings, Inc. – Secures $5 Million in Non-Dilutive Debt Financing
- Earlier this week, Soluna announced that it has successfully closed a $5 million loan facility with Galaxy Digital (TSX: GLXY), a financial services and investment management innovator in the digital asset and blockchain technology sectors.
- CEO John Belizaire highlighted that the deal underscores the strength of the company’s project cash flow and demonstrates confidence in its ability to monetize energy through AI and Bitcoin mining.
- Belizaire said, “Simply put, the assets we build are durable and very, very valuable. With this financing, we gain access to additional capital to accelerate our execution— without diluting our shareholders.”
Asana Inc.: An Enhanced Revenue Forecasting & ARR Growth Insight!
- Asana, Inc. reported its financial results for the fourth quarter and fiscal year 2025, showing a blend of achievements and challenges.
- The company’s revenue grew by over 10% year-over-year, slightly exceeding adjusted guidance when accounting for currency impact, signaling stabilization in growth rates.
- Positively, Asana reached a significant milestone by generating positive free cash flow for the entire fiscal year.
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