In today’s briefing:
- TSMC (TSM.US, 2330.TT): Bright Outlook in 2022
- Capcom – Monster Hunter Rise PC Launches Even as Stock Hits 12 Month Low
- Bilibili Makes a Late Entry into Livestreaming E-Commerce; Timing Is Not Just Right
- Qingdao AInnovation Technology Group Pre-IPO – Has Grown Fast, but Holds an Unproven Track Record
- Earnings Update | Infosys: Raises Revenue Growth Guidance
- Recent IPO Insights: Samsara
- CALX: Designed for Decline
TSMC (TSM.US, 2330.TT): Bright Outlook in 2022
- TSMC’s 2022 outlook is bright, but new drama around Intel’s possible orders could define the foundry in 2023
- IPhone’s 2022 modem is currently equipped with Qualcomm’s design but 2023’s will be designed by Apple
- TSMC’s continuously updated technology roadmap shows it as a tech-leader in the foundry space
Capcom – Monster Hunter Rise PC Launches Even as Stock Hits 12 Month Low
- Early last year we very wrongly called Capcom as our top short-term pick as we expected an earnings blowout in 1QFY22.
- The blowout duly came with OP 37% above clueless sell side expectations and… the stock tanked.
- Almost a year later the stock languishes 28% lower just as the PC version of Monster Hunter Rise launches.
Bilibili Makes a Late Entry into Livestreaming E-Commerce; Timing Is Not Just Right
- Bilibili launched a shopping cart feature (Xiaohuangche) recently on its livestreaming platform which enables users to purchase goods while watching a live-stream.
- This comes at a time; China’s common prosperity crackdown has set its eyes on livestreaming e-commerce.
- Bilibili has been looking at ways to improve its monetisation to reduce losses, but we think the new initiative will likely add further pressure on deteriorating margins.
Qingdao AInnovation Technology Group Pre-IPO – Has Grown Fast, but Holds an Unproven Track Record
- Qingdao Ainnovation Technology Group Co Ltd (1853807D CH) is looking to raise up to US$200m in its Hong Kong IPO.
- Qingdao AInnovation Technology Group is an AI solutions provider offering full-stack AI-based products and solutions.
- While revenue has grown since inception, margin improvement can’t be attributed solely to better cost controls. It also has an unproven track record and operates in a highly fragmented market.
Earnings Update | Infosys: Raises Revenue Growth Guidance
- Infosys reported strong Q3FY22 earnings with constant currency (CC) sequential growth of 7%, despite weak seasonality. YoY CC growth at 21.5% is the highest ever over the past 11 years.
- Large deal wins and continued momentum in digital revenue growth helped Infosys Ltd (INFO IN) to post a strong Q3. Share of digital revenues grew to 58.5% vs 50.1% YoY.
- On the back of strong Q3FY22 earnings, Infosys raised its FY22 revenue growth guidance to 19.5-20% vs 16.5%-17.5% earlier.
Recent IPO Insights: Samsara
- IOT data platform meant to digitize physical operations for manufacturing, transportation, construction, utilities, healthcare, and education.
- Excellent management team, previously co-founded Meraki, which was sold to Cisco.
- Hypergrowth software business on par with ServiceNow and Workday at this stage in growth, but much less profitable (so far) due to hardware and bandwidth costs.
CALX: Designed for Decline
- CALX has yet to experience the full extent of our original sell thesis even though there are growing signs of an impending impact
- Component issues could have become a headwind in the fourth quarter and remain a challenge in 2022.
- With Huawei equipment replacement predominately complete, small service providers could reduce their spending
Before it’s here, it’s on Smartkarma
