Daily BriefsTMT/Internet

TMT: Sea Ltd, Weibo Corp, Tanla Platforms, Hcl Technologies, Avaya Holdings Corp and more

In today’s briefing:

  • Sea Ltd (SE US) – The Sails Are Set
  • Weibo (WB US) Files For Hong Kong Listing
  • Tanla Platforms (Initiating Coverage): Version 2.0. BUY
  • Services strength to cushion any Product softness
  • AVYA: Calling It a Preview

Sea Ltd (SE US) – The Sails Are Set

By Angus Mackintosh

  • Sea Ltd (SE US) released yet another knockout set of results in 3Q2021, representing the ninth quarter of triple-digit growth in GAAP sales plus management upgraded FY2021 guidance.
  • Key positives include e-commerce loss per order declining further in 3Q2021, take-rates improving further, marketplace revenues growing +151% YoY in 3Q2021 and good progress made in new markets. 
  • Gaming adjusted EBITDA continues to cover losses from e-commerce despite slower growth from digital entertainment. We see the post-results correction as an opportunity to accumulate Sea Ltd (SE US)

Weibo (WB US) Files For Hong Kong Listing

By David Blennerhassett


Tanla Platforms (Initiating Coverage): Version 2.0. BUY

By HDFC Securities

Tanla is expected to grow strongly, based on: (1) continued growth in enterprise messaging volumes; (2) increasing Trubloq platform volumes (higher margins); (3) scaling up of Wisely platform (developed by Tanla in partnership with Microsoft); and (4) up-selling and client addition. Over FY21-24E, we project revenue/EBITDA/EPS CAGRs of +26/30/27%. We initiate coverage on Tanla with a TP of INR 1,600, valuing it at 30x FY24E EPS, supported by its top quartile growth, higher RoE of 44%, excellent cash generation, and net cash of INR 8.5bn (~5% of market cap).

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Services strength to cushion any Product softness

By Motilal Oswal

We expect the robust performance in HCL’s Services business, especially the ER&D vertical, to continue as the demand environment remains favorable. We also draw comfort from improving management commentary on continued growth momentum in the IT Services business. Sustainable demand momentum for Cloud and Digital Engineering benefits HCLT, given its large presence within IMS and ER&D and continued investments in capabilities.

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

AVYA: Calling It a Preview

By Hamed Khorsand

  • AVYA is scheduled to report fiscal fourth quarter (September) results on November 22, 2021, with all eyes on how much the cloud business has grown.
  • During the calendar year 2021, cloud adoption had accelerated where AVYA pulled forward the timing of reaching $1 billion in ARR. This trend is to continue
  • ARR momentum would harm revenue line and push out free cash flow generation to late fiscal 2022. 

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