Quality-first, Business-perspective Strategy, Urbem (HK) Limited

Steven Chen

Quality-first, Business-perspective Strategy

Equity Bottom-Up

<ul>
<li>My long-time audience may have learned my lack of interest in the internet sector when it comes to equity investing;</li>
<li>But <a href="https://www.smartkarma.com/entities/kaspi-kz-jsc" target="_blank" data-smartkarma-citation="entities:33382:1" rel="noopener">Kaspi.KZ JSC (KSPI LI)</a> can be an exception thanks to its superior quality;</li>
<li>The valuation of the share does not seem cheap but is by no means unfair given the rapidly-developing addressable market, multi-cylinder growth engine, sustainable competitive advantage, and owner-leadership.</li>
</ul>


My long-time audience may have learned my lack of interest in the internet sector when it comes to equity investing;
But Kaspi.KZ JSC (KSPI LI) can be an exception thanks to its superior quality;
The valuation of the share does not seem cheap but is by no means unfair given the rapidly-developing addressable market, multi-cylinder growth engine, sustainable competitive advantage, and owner-leadership.


Silver Point

Thomas J. Monaco

Independent Insight Provider

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

*Major US Merchant Deal: Tencent Holding’s (700.HK) [Tencent] Afterpay Touch's (APT.AU) [Afterpay] recently announced that it is further expanding its Buy Now, Pay Later (BNPL) model to several major high profile US merchants in order to boost sales and margins. Afterpay is now allowing all US users to shop at 13 retailers by October 2021 - ahead of the holiday shopping season; and*Tencent’s Midas Touch: Tencent continues to hit it out of the park with its Afterpay stake. In addition to its superb return on investment over the past ten months since the stake announcement - -even after giving back some of its gains, this alliance with Australia’s premier financial technology BNPL company is paying dividends to Tencent in numerous other ways.

*Major US Merchant Deal: Tencent Holding’s (700.HK) [Tencent] Afterpay Touch's (APT.AU) [Afterpay] recently announced that it is further expanding its Buy Now, Pay Later (BNPL) model to several major high profile US merchants in order to boost sales and margins. Afterpay is now allowing all US users to shop at 13 retailers by October 2021 - ahead of the holiday shopping season; and*Tencent’s Midas Touch: Tencent continues to hit it out of the park with its Afterpay stake. In addition to its superb return on investment over the past ten months since the stake announcement - -even after giving back some of its gains, this alliance with Australia’s premier financial technology BNPL company is paying dividends to Tencent in numerous other ways. 

Tencent Holdings – Digging In Their Heals

TMT & Consumer Independent Equity Research Analyst, Obex Capital Research

Aaron Gabin

TMT & Consumer Independent Equity Research Analyst

TMT & Consumer Independent Equity Research

Obex Capital Research

“Obex” is Latin for Barriers to Entry. Obex Capital Management’s investment philosophy is driven by an intense focus on which business model’s Barriers to Entry are able to withstand the ever increasing competitive disruption in the TMT and Consumer Sectors.

Much like in March, when we advocated for buying large cap tech, we are once again calling to buy large cap tech. Order of preference from here? AMZN, FB, GOOGL, NFLX, MSFT/ADBE/NOW,  AAPL<div class="content-highlight">Obex’s fundamental research process is focused on secular change in the TMT and Consumer sectors. We seek to differentiate between fundamental business analysis and security analysis. Before deciding if a security’s pricing and positioning merit a long or short position, we analyze the four pillars of business fundamentals (Secular Factors, TAM, Competitive Advantage, Business Model) in order to determine if this is a “good” or “not so good” opportunity.  </div>

Much like in March, when we advocated for buying large cap tech, we are once again calling to buy large cap tech. Order of preference from here? AMZN, FB, GOOGL, NFLX, MSFT/ADBE/NOW,  AAPLObex’s fundamental research process is focused on secular change in the TMT and Consumer sectors. We seek to differentiate between fundamental business analysis and security analysis. Before deciding if a security’s pricing and positioning merit a long or short position, we analyze the four pillars of business fundamentals (Secular Factors, TAM, Competitive Advantage, Business Model) in order to determine if this is a “good” or “not so good” opportunity.  

*Reserve Bank of Australia’s No Action On BNPL:The Reserve Bank of Australia (RBA) released a Retail Payments Review on May 28, 2021 discussing among other items the Buy Now Pay Later (BNPL) model. Specifically, the RBA reviewed whether the BNPL model should continue with its ‘no surcharge rules’ whereby merchants are precluded from passing along BNPL fees to its customers. The RBA concluded that it will not require the BNPL sector to change its ‘no surcharge rules’; and  *Tencent’s Midas Touch: Tencent continues to hit it out of the park with its Afterpay stake. In addition to its superb return on investment over the past nine months since the stake announcement - -even after giving back some of its gains, this alliance with Australia’s premier financial technology BNPL company is paying dividends to Tencent in numerous other ways.

*Reserve Bank of Australia’s No Action On BNPL:The Reserve Bank of Australia (RBA) released a Retail Payments Review on May 28, 2021 discussing among other items the Buy Now Pay Later (BNPL) model. Specifically, the RBA reviewed whether the BNPL model should continue with its ‘no surcharge rules’ whereby merchants are precluded from passing along BNPL fees to its customers. The RBA concluded that it will not require the BNPL sector to change its ‘no surcharge rules’; and  *Tencent’s Midas Touch: Tencent continues to hit it out of the park with its Afterpay stake. In addition to its superb return on investment over the past nine months since the stake announcement - -even after giving back some of its gains, this alliance with Australia’s premier financial technology BNPL company is paying dividends to Tencent in numerous other ways. 

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Granite Bay Capital

An innovation focussed investment company

Granite Bay Capital is an innovation focussed investment company with a deep focus on the companies at the leading edge of innovation across major themes such as AI, ubiquitous computing, sustainability, automation and longevity.

Thematic (Sector/Industry)

It’s a bad week for crypto, with bitcoin off ~30%.  Firstly, Elon Musk has done a U-turn, now not accepting bitcoin as payment for Tesla due to environmental concerns.  He may also wind down the company’s position in the asset.

It’s a bad week for crypto, with bitcoin off ~30%.  Firstly, Elon Musk has done a U-turn, now not accepting bitcoin as payment for Tesla due to environmental concerns.  He may also wind down the company’s position in the asset.

United States

Alphabet, Inc. operates as a holding company. The Company, through its subsidiaries, provides web-based search, advertisements, maps, software applications, mobile operating systems, consumer content, enterprise solutions, commerce, and hardware products.

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Alphabet (GOOG US)

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Subscribe nowHeadline Developments It’s a bad week for crypto, with bitcoin off ~30%. Firstly, Elon Musk has done a U-turn, now not accepting...

Granite Bay Capital

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