Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<ul>
<li>OneStore is getting ready to complete its IPO in May with IPO price range of 34,300 won to 41,700 won. It is one of the largest app operators in Korea.</li>
<li>The IPO base deal size is from $187 million to $227 million. The expected market cap after the IPO is from 0.9 trillion won to 1.1 trillion won. </li>
<li>OneStore generated sales of 214.2 billion won (up 38% YoY), operating loss of 5.8 billion won, and EBITDA of 8 billion won in 2021. </li>
</ul>


OneStore is getting ready to complete its IPO in May with IPO price range of 34,300 won to 41,700 won. It is one of the largest app operators in Korea.
The IPO base deal size is from $187 million to $227 million. The expected market cap after the IPO is from 0.9 trillion won to 1.1 trillion won. 
OneStore generated sales of 214.2 billion won (up 38% YoY), operating loss of 5.8 billion won, and EBITDA of 8 billion won in 2021. 


Cross Asset Strategy

<ul>
<li>In this insight, we discuss about the major Taiwanese players in the electronics supply chain that could be impacted by the the slowing demand for consumer electronics, especially in China.</li>
<li>When TSMC's Chairman mentions that the demand for consumer electronics is slowing down, especially in China, this is a time for a pause and really ponder on this.</li>
<li>We believe that there is an increasing risk of the average sales growth of the 13 major Taiwanese tech/consumer electronics stocks being lowered further in the coming months.</li>
</ul>


In this insight, we discuss about the major Taiwanese players in the electronics supply chain that could be impacted by the the slowing demand for consumer electronics, especially in China.
When TSMC's Chairman mentions that the demand for consumer electronics is slowing down, especially in China, this is a time for a pause and really ponder on this.
We believe that there is an increasing risk of the average sales growth of the 13 major Taiwanese tech/consumer electronics stocks being lowered further in the coming months.


Major Taiwanese Players in the Electronics Supply Chain: Slowing Demand for Consumer Electronics

Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi Corp (1810 HK)</a> reported 4Q2021 results on Tuesday. Revenue grew 21.4% YoY to RMB85.6bn (vs consensus RMB82.1bn) while reported OP declined 54.0% YoY to RMB4.5bn (vs consensus RMB4.3bn).</li>
<li>Adjusted OP (excluding fair value adjustment and other gains) grew 21.4% YoY to RMB85.6bn, with an adjusted OPM of 4.0% vs 3.0% in 4Q2020.</li>
<li>Xiaomi’s smartphone revenues bounced back in 4Q2021 after growing less than 1.0% YoY during the previous quarter. The company also announced a share buyback of HK$10bn.</li>
</ul>



Xiaomi Corp (1810 HK) reported 4Q2021 results on Tuesday. Revenue grew 21.4% YoY to RMB85.6bn (vs consensus RMB82.1bn) while reported OP declined 54.0% YoY to RMB4.5bn (vs consensus RMB4.3bn).
Adjusted OP (excluding fair value adjustment and other gains) grew 21.4% YoY to RMB85.6bn, with an adjusted OPM of 4.0% vs 3.0% in 4Q2020.
Xiaomi’s smartphone revenues bounced back in 4Q2021 after growing less than 1.0% YoY during the previous quarter. The company also announced a share buyback of HK$10bn.


Xiaomi 4Q: Good Results Despite a Challenging Environment

Oshadhi Kumarasiri

<ul>
<li>Perhaps, misled by the Chinese tech rally due to the change in stance from the Chinese Government, Sea's shares rose by 33% compared to the broader market's 8.3%.</li>
<li>With fundamentals deteriorating and the Federal Reserve signalling an aggressive rate hike outlook, <a href="https://www.smartkarma.com/entities/sea-ltd" target="_blank" data-smartkarma-citation="entities:8509:1" rel="noopener">Sea Ltd (SE US)</a>’s 33% move seems unwarranted.</li>
<li>Meanwhile, the downside potential is quite significant as Sea trades at a significant FY+2 EV/Sales premium to regional peers whose cyclical bottoms are unknown.</li>
</ul>


Perhaps, misled by the Chinese tech rally due to the change in stance from the Chinese Government, Sea's shares rose by 33% compared to the broader market's 8.3%.
With fundamentals deteriorating and the Federal Reserve signalling an aggressive rate hike outlook, Sea Ltd (SE US)’s 33% move seems unwarranted.
Meanwhile, the downside potential is quite significant as Sea trades at a significant FY+2 EV/Sales premium to regional peers whose cyclical bottoms are unknown.


Sea Ltd.'s Money Machine Is Broken, Downside Is Not Fully Priced-In

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/razer-inc" target="_blank" data-smartkarma-citation="entities:24380:1" rel="noopener">Razer Inc (1337 HK)</a>'s FY21 results beat consensus revenue by 8% but came below consensus EBIT by 3%, based on CapitalIQ data.</li>
<li>The management did their best to dampen sentiment by pointing out slowing growth momentum and margin compression due to significant growth investments in 2022.  </li>
<li>We think that the results/outlook do little to increase the attractiveness of the offer. We would be buyers up to HK$2.5 per share (implies 65% deal probability).</li>
</ul>



Razer Inc (1337 HK)'s FY21 results beat consensus revenue by 8% but came below consensus EBIT by 3%, based on CapitalIQ data.
The management did their best to dampen sentiment by pointing out slowing growth momentum and margin compression due to significant growth investments in 2022.  
We think that the results/outlook do little to increase the attractiveness of the offer. We would be buyers up to HK$2.5 per share (implies 65% deal probability).


Razer's Offer Spread Risk/Reward – FY21 Results

United States

Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related accessories. The Company also offers payment, digital content, cloud and advertising services. Apple Inc.'s customers are primarily in consumer, small & mid-sized business, education, enterprise and government markets worldwide.

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Apple (AAPL US)

OneStore IPO Preview

OneStore is getting ready to complete its IPO in May with IPO price range of 34,300 won to 41,700 won. It is one of the largest app operators in...

Douglas Kim

Major Taiwanese Players in the Electronics Supply Chain: Slowing Demand for Consumer Electronics

In this insight, we discuss about the major Taiwanese players in the electronics supply chain that could be impacted by the the slowing demand for...

Douglas Kim

Xiaomi 4Q: Good Results Despite a Challenging Environment

Xiaomi’s 4Q2021 earnings helped eased our concerns over its smartphones business which grew less than 1.0% during 3Q2021. Smartphone revenues...

Shifara Samsudeen, ACMA, CGMA

Sea Ltd.'s Money Machine Is Broken, Downside Is Not Fully Priced-In

With fundamentals deteriorating and the Fed signalling an aggressive rate hike outlook, Sea’s 33% move seems unwarranted. The downside potential is...

Oshadhi Kumarasiri

Razer's Offer Spread Risk/Reward – FY21 Results

The management did their best to sound downbeat by pointing out slowing growth and margin compression in 2022. We think that the results/outlook do...

Arun George

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