Daily BriefsTMT/Internet

TMT: Tencent Holdings, Rakus Co Ltd, Samsung Electronics and more

In today’s briefing:

  • Tencent: The Deferred Revenue Issue
  • Small Cap Growth: Rakus (3923) – Q2 Sales +28%
  • SEC Bull Shift and Breakout

Tencent: The Deferred Revenue Issue

By Rickin Thakrar

Tencent Holdings (700 HK) just posted its best EBIT growth in eleven quarters and for two quarters in a row, it has reversed its declining two-year growth rate. Despite the tailwind from the current macro environment, we believe there are underlying issues when looking closer at Tencent’s deferred revenue and underlying EBIT. More details below. 


Small Cap Growth: Rakus (3923) – Q2 Sales +28%

By Mark Chadwick

Rakus Co Ltd (3923 JP)  operates a cloud-based Business Spend Management (BSM) service that helps companies and employees efficiently track and settle expenses. The expense management software, Raku Raku Seisan, helps enterprises to enhance productivity, compliance, and control overspending.

The recent quarterly results confirm that top line growth continues unabated. Given the market for BSM is potentially huge in Japan and currently underpenetrated, Rakus should continue to see a strong growth trajectory in the foreseeable future.  

This note looks at the strong Q2 results, while the following note looks at the Market, Moat and Management: Small Cap Growth: Rakus (3923) – Sayonara Manual Expenses! 


SEC Bull Shift and Breakout

By Thomas Schroeder

Samsung Electronics (005930 KS) has broken above 61k resistance. Our recent insight touted shorting as an underperform pair with long Kospi with an absolute stop above 60k. The relative stance continues to struggle as does MACD new price high non confirmations. We hold a bullish (buy dips) stance for the Kopsi.

SEC breakout places a bull stance in absolute terms and will benefit from rotation out of China tech.

SEC key pivot lies at 61k and if we slip back below this level fresh buy support lies at 58k. Bull projections come in at 67,100 and 68,900. 61k support must hold to provide fuel for an immediate rise to noted projections.


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