Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Cross Asset Strategy

<p><strong>In this insight, we discuss the two contrasting views of what could happen next week in the United States on January 20th (Inauguration day of the next President of the United States). </strong></p><div class="content-highlight">
<h2>Conclusion</h2>
<p>Overall, we would not claim to know if Trump will enact the Insurrection Act in order to recount the votes next week. It is premature for us to know what will exactly happen. However, we do want to highlight that it is unprecedented to have nearly 25,000 troops to secure Washington DC for the Inauguration day. While the dominant view in the media is that Biden will be inaugurated as the next US President, there is a (very) minority view that Trump could enact the Insurrection Act to have the military intervene and recount the votes in key swing states. </p>
</div>

In this insight, we discuss the two contrasting views of what could happen next week in the United States on January 20th (Inauguration day of the next President of the United States). 
Conclusion
Overall, we would not claim to know if Trump will enact the Insurrection Act in order to recount the votes next week. It is premature for us to know what will exactly happen. However, we do want to highlight that it is unprecedented to have nearly 25,000 troops to secure Washington DC for the Inauguration day. While the dominant view in the media is that Biden will be inaugurated as the next US President, there is a (very) minority view that Trump could enact the Insurrection Act to have the military intervene and recount the votes in key swing states. 


Two Contrasting Views of What Could Happen Next Week in the United States on January 20th

Asia Consumer Research, Investory

Devi Subhakesan

Asia Consumer Research

ASIA CONSUMER: INSIGHTS AND INVESTMENT IDEAS

Investory

Investory is a Singapore-based boutique independent equity research firm founded in January 2017 with a primary focus on consumption themes across Asia-Pacific.

We aim to generate investible ideas based on consumption trends and outlook. We screen our ideas on several parameters - product potential, long-term growth and management commitment being the most critical.  We follow a fundamental analysis approach in our stock selection process and are not restricted by market cap.

We aspire to grow into a leading source of unbiased research, free of conflict of interest, for investors yearning for independent and disciplined analysis. 

We also undertake bespoke research mandates to support our Institutional clients’ investment needs.

Our team comprises of professionals with extensive experience in the Asian equity markets, in areas ranging from research, servicing institutional clients and investment management.

Event-Driven

<p>In this note, we look at how Amazon's foray into India's booming EdTech sector could impact the existing players and sector dynamics/growth trajectory. <a href="https://www.smartkarma.com/entities/amazon-com-inc" target="_blank" data-smartkarma-citation="entities:409:1" rel="noopener">Amazon.com Inc (AMZN US)</a> formally launched its online learning venture in India - <em><strong><a href="https://academy.amazon.in/" target="_blank" rel="noopener">Amazon Academy</a></strong></em> - this week. Presently on Beta mode, the online learning tools and live classes on Amazon Academy (currently available for free) are designed to help students prepare for the highly competitive selection tests to gain admission at top-rated Engineering colleges in the country. Amazon's reported foray into the booming Edtech sector in India had already set off a flurry of M&amp;A activity as existing lead players attempt to fortify their positions. Edtech sector witnessed rapid growth last year as COVID-led lockdowns disrupted formal education and students across age groups were forced to resort to online learning options. </p><p>India's heavily underinvested (and often badly managed) public education system and highly restrictive regulations governing the private education sector have helped create a large and attractive opportunity for EdTech players. Lead players have attracted funding from who's who of private investing (see appendix), a testimony to the sector's attractiveness and potential. Will that change with the foray of Amazon, known for its aggressive and competitive operating style? While little is known about Amazon's operating pricing plans and strategy, we present our expectation on the same and how it could impact existing players and sector dynamics/growth. </p>

In this note, we look at how Amazon's foray into India's booming EdTech sector could impact the existing players and sector dynamics/growth trajectory. Amazon.com Inc (AMZN US) formally launched its online learning venture in India - Amazon Academy - this week. Presently on Beta mode, the online learning tools and live classes on Amazon Academy (currently available for free) are designed to help students prepare for the highly competitive selection tests to gain admission at top-rated Engineering colleges in the country. Amazon's reported foray into the booming Edtech sector in India had already set off a flurry of M&amp;A activity as existing lead players attempt to fortify their positions. Edtech sector witnessed rapid growth last year as COVID-led lockdowns disrupted formal education and students across age groups were forced to resort to online learning options. India's heavily underinvested (and often badly managed) public education system and highly restrictive regulations governing the private education sector have helped create a large and attractive opportunity for EdTech players. Lead players have attracted funding from who's who of private investing (see appendix), a testimony to the sector's attractiveness and potential. Will that change with the foray of Amazon, known for its aggressive and competitive operating style? While little is known about Amazon's operating pricing plans and strategy, we present our expectation on the same and how it could impact existing players and sector dynamics/growth. 

Amazon Forays into India EdTech - Expect Shift in Sector Dynamics, Rest May Brace to Pivot

Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

<p>On Friday after market-close, Tokyo-based cloud integration company <a href="https://www.smartkarma.com/entities/serverworks-co-ltd" target="_blank" data-smartkarma-citation="entities:31045:1" rel="noopener">Serverworks (4434 JP)</a> announced (<a href="https://ssl4.eir-parts.net/doc/4434/tdnet/1918006/00.pdf" target="_blank" rel="noopener">J-only</a>) they had received approval to move from the MOTHERS Section to the First Section of the Tokyo Stock Exchange as of 15th January 2021.</p><p>TSE1 reassignment triggers inclusion into the TOPIX Index and the Inclusion Event can be expected to be at the close of trading 25th February 2021.</p><p>Serverworks provides Amazon Web Services (AWS) based cloud integration services to corporate clients in Japan. They help companies transition from conventional on-premise information systems where companies own and operate their own information equipment and software to cloud-based solutions where a third party service provider (<a href="https://www.smartkarma.com/entities/amazon-com-inc" target="_blank" data-smartkarma-citation="entities:409:1" rel="noopener">Amazon.com Inc (AMZN US)</a> in the case of AWS) invests in equipment and software and charges users typically on a pay-as-you-go basis depending on the level of usage.  </p><p>In this insight, we take a look at the Index Inclusion Parameters and the Fundamentals of the company to evaluate the upside potential of the TOPIX Inclusion Event. </p>

On Friday after market-close, Tokyo-based cloud integration company Serverworks (4434 JP) announced (J-only) they had received approval to move from the MOTHERS Section to the First Section of the Tokyo Stock Exchange as of 15th January 2021.TSE1 reassignment triggers inclusion into the TOPIX Index and the Inclusion Event can be expected to be at the close of trading 25th February 2021.Serverworks provides Amazon Web Services (AWS) based cloud integration services to corporate clients in Japan. They help companies transition from conventional on-premise information systems where companies own and operate their own information equipment and software to cloud-based solutions where a third party service provider (Amazon.com Inc (AMZN US) in the case of AWS) invests in equipment and software and charges users typically on a pay-as-you-go basis depending on the level of usage.  In this insight, we take a look at the Index Inclusion Parameters and the Fundamentals of the company to evaluate the upside potential of the TOPIX Inclusion Event. 

TOPIX Inclusion: Serverworks (4434 JP):  Clouds in a BLUE Sky

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.

Equity Bottom-Up

<p>Three things caught our eye this first week of 2021: eBay, Amazon, and the spectrum auction.</p><p></p><div class="content-highlight"><p>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.</p></div>

Three things caught our eye this first week of 2021: eBay, Amazon, and the spectrum auction.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.

TMT Weekly: 3 Things that Stood Out The Week of 1/8/2021

Private Capital Markets

<div class="content-highlight"><p><strong>According to <a href="https://www.bloomberg.com/news/articles/2021-01-06/softbank-s-son-is-poised-for-another-ipo-windfall-in-2021" target="_blank" rel="noopener">Bloomberg, </a>it reported that Coupang, the largest e-commerce company in Korea, is getting ready to complete its IPO as soon as 2Q 2021.</strong> The estimated valuation of Coupang could be at least $30 billion. Softbank invested $2.7 billion in Coupang and <a href="https://biz.chosun.com/site/data/html_dir/2021/01/07/2021010702121.html?utm_source=naver&amp;utm_medium=original&amp;utm_campaign=biz" target="_blank" rel="noopener">Softbank (Vision Fund)</a> currently has a 37% stake in the company. If Mr. Market is willing to place a $30 billion valuation on Coupang, Softbank would reap a cool $8 billion+ gain on its investments in Coupang.</p></div>

According to Bloomberg, it reported that Coupang, the largest e-commerce company in Korea, is getting ready to complete its IPO as soon as 2Q 2021. The estimated valuation of Coupang could be at least $30 billion. Softbank invested $2.7 billion in Coupang and Softbank (Vision Fund) currently has a 37% stake in the company. If Mr. Market is willing to place a $30 billion valuation on Coupang, Softbank would reap a cool $8 billion+ gain on its investments in Coupang.

Initial Thoughts on the Coupang IPO & Impact on SK Telecom (11st) Vs. Naver

United States

Amazon.com, Inc. is an online retailer that offers a wide range of products. The Company's products include books, music, videotapes, computers, electronics, home and garden, and numerous other products.  Amazon offers personalized shopping services, Web-based credit card payment, and direct shipping to customers.

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Amazon.com Inc (AMZN US)

Two Contrasting Views of What Could Happen Next Week in the United States on January 20th

In this insight, we discuss the two contrasting views of what could happen next week in the United States on January 20th (Inauguration day of the...

Douglas Kim

Amazon Forays into India EdTech - Expect Shift in Sector Dynamics, Rest May Brace to Pivot

Amazon Academy's possible aggressive pricing plans and potential subscriber base. Analysis of how it could impact existing players and sector...

Devi Subhakesan

TOPIX Inclusion: Serverworks (4434 JP): Clouds in a BLUE Sky

Serverworks (4434) is in a high-growth business, but not one without rivals, which are far cheaper. Joining the TSE is a positive, but it is well...

Janaghan Jeyakumar, CFA

TMT Weekly: 3 Things that Stood Out The Week of 1/8/2021

This week we highlight eBay's new tool to drive online advertising adoption, Amazon's further foray into logistics, and the $90B spent in the...

Aaron Gabin

Initial Thoughts on the Coupang IPO & Impact on SK Telecom (11st) Vs. Naver

According to Bloomberg, it reported that Coupang is getting ready to complete its IPO as soon as 2Q 2021. The estimated valuation of Coupang could...

Douglas Kim

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