Daily BriefsTMT/Internet

TMT: CEI Limited, Roblox, Gcl Poly Energy Holdings Limited, iFast Corp Ltd, Samsung Electronics, Linklogis, Intel Corp and more

In today’s briefing:

  • CEI Limited (CEI SP): Privatization Deal by AEM Holdings (AEM SP) Trading with a View to Complete
  • Roblox Valuation Analysis
  • GCL Poly Energy Holdings Placement – Won’t Solve Its Debt Problems
  • IFast Corp: Higher AUA Growth Points Toward Significant Growth in 4Q Earnings (Quantamental)
  • Samsung Closed the Gap with TSMC Already at 5nm? Whoa!
  • Linklogis IPO Initiation: ISupply
  • Intel CEO Change Brings Focus Back to Technology

CEI Limited (CEI SP): Privatization Deal by AEM Holdings (AEM SP) Trading with a View to Complete

By Janaghan Jeyakumar, CFA

After market-close on Monday 11th January, Singapore-based electronic components manufacturer CEI Limited (CEI SP) received a Pre-conditional Voluntary Offer from a wholly-owned subsidiary of AEM Holdings (AEM SP) valuing the company at S$100mn. 

The Offer Price will be S$1.15/share and there will be a all-cash option (default choice) and two other cash and scrip combinations from which CEI shareholders will be allowed to choose. 

The making of the Offer will be subject to the satisfaction of the pre-condition which requires approval-in-principle of the SGX-ST for the listing and quotation of the New AEM Holdings Shares. 

More below the fold. 

For more information about M&A rules, regulations, and practices in Singapore, please refer to Quiddity Singapore M&A Guide 2019 


Roblox Valuation Analysis

By Douglas Kim

Roblox, one of the leading global game platforms, announced on Friday (8 January) that it plans to go public through a Direct Public Listing (DPL), instead of the traditional IPO. Ahead of this direct public listing, Roblox raised $520 million in private financing, valuing the company at $29.5 billion or $45 per share.

Our valuation analysis suggests a base case implied market cap of $50 billion and a target price of $76.20 per share for Roblox. This would represent 69% higher level than its most recent private capital raise of $520 million, valuing the company at $29.5 billion or $45 per share. The direct listing valuation range is from $40.5 billion to $60.5 billion, according to our valuation sensitivity analysis. 


GCL Poly Energy Holdings Placement – Won’t Solve Its Debt Problems

By Sumeet Singh

Gcl Poly Energy Holdings Limited (3800 HK) aims to raise around US$460m via a primary placement to reduce borrowings. 

The shares have done exceedingly well since Aug 2020 in the face of multiple headwinds.


IFast Corp: Higher AUA Growth Points Toward Significant Growth in 4Q Earnings (Quantamental)

By Shifara Samsudeen, ACMA, CGMA

iFast Corp Ltd (IFAST SP)  offers investment products and services in Singapore, Hong Kong, Malaysia and China. The company’s platform offers fintech and wealth management services to a large client base and is the first fintech company to be listed on the Singapore Stock Exchange.

On 6th January 2021, iFast reported that its assets under administration (AUA) grew by 44.5% YoY to reach S$14.45bn as at 31st December 2020 from S$10bn in the previous year. This indicates a 14.8% QoQ increase from S$12.59bn as at the end of 3Q2020.


Samsung Closed the Gap with TSMC Already at 5nm? Whoa!

By Ken S. Kim

Local press reporting that Samsung Electronics (005930 KS) has made significant improvement on their 5nm technology which is a significant improvement given Samsung Electronics (005930 KS) ‘s to desire to take close the gap with TSMC (2330 TT) this is a big step.  Or was it already in the cards from a prior deal? 


Linklogis IPO Initiation: ISupply

By Arun George

Linklogis (LINK HK) is a leading technology solution provider for supply chain finance in China. Its solutions optimise the payment cycle of supply chain transactions and digitalize the entire workflow of supply chain finance. Linklogis was the leading technology solution providers in China with a 20.5% market share of supply chain finance transactions processed in 9M20, according to CIC. Linklogis is backed by Tencent Holdings (700 HK), CITIC Capital, GIC and Standard Chartered (STAN LN). Linklogis has filed for a Hong Kong IPO to raise as much as $500 million, according to press reports.

Linklogis is a play on China’s supply chain finance market. SMEs in China had an average of 92 days of accounts receivable outstanding in 2019, higher than 51 days on average in the US. It could also take up to 6 to 12 months for SMEs to receive final payments. The Chinese government has introduced a series of supportive policies to direct funding towards small businesses, including imposing SME lending growth targets for banks. Supply chain finance has proven to be a useful way to bridge the financing gap of SMEs, as it allows SMEs to get quick access to payment and funding at low costs. In 9M20, Linklogis’ customers helped their SME suppliers obtain low-cost financing at an average financing cost of 5.4%, significantly lower than the cost of financing extended to SMEs relying on their own creditworthiness that ranges from 10% to 20%, according to CIC.

Linklogis is an attractive play on these market dynamics by combining an attractive monetisation model, high customer retention rate (strong revenue visibility) and good operating leverage.


Intel CEO Change Brings Focus Back to Technology

By Jim Handy

Intel announced on January 13, 2021, that its CEO Bob Swan would step down to be replaced by departed Intel veteran Pat Gelsinger.  This Smartkarma Insight focuses on the work that Gelsinger must do to win back the company’s diminishing prominence in the processor market that it created.


Before it’s here, it’s on Smartkarma