Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<ul>
<li>Our base case valuation of Instacart is target price of $33.7 per share, which represents a 20% upside from the high end of the IPO price range ($28 per share).</li>
<li>We estimate the company's operating margin to improve from 2.4% in 2022 to 13.2% in 2023 and 14.6% in 2024.</li>
<li>Although overall sales growth rate from 2020 to 2024 is lower for Instacart as compared to Uber and DoorDash, Instacart is having stronger growth in operating margins than its peers. </li>
</ul>


Our base case valuation of Instacart is target price of $33.7 per share, which represents a 20% upside from the high end of the IPO price range ($28 per share).
We estimate the company's operating margin to improve from 2.4% in 2022 to 13.2% in 2023 and 14.6% in 2024.
Although overall sales growth rate from 2020 to 2024 is lower for Instacart as compared to Uber and DoorDash, Instacart is having stronger growth in operating margins than its peers. 


Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

Taiwan Semiconductor (TSMC) / Technical Analysis

<ul>
<li>Global equities (MSCI ACWI) continue to hold above $93 on ACWI-US, a level that, since January, we had anticipated would cap upside in 2023. </li>
<li>While ACWI-US remains below $96-$97 (a target we discussed was possible in our April 18, 2023 Int’l Macro Vision), we could easily see $93 act as support moving forward.</li>
<li>Therefore, we are bullish on global equities as long as ACWI-US is above $93, targeting $110.29. This is the measured move price target following the inverse head-and-shoulders breakout.</li>
</ul>


Global equities (MSCI ACWI) continue to hold above $93 on ACWI-US, a level that, since January, we had anticipated would cap upside in 2023. 
While ACWI-US remains below $96-$97 (a target we discussed was possible in our April 18, 2023 Int’l Macro Vision), we could easily see $93 act as support moving forward.
Therefore, we are bullish on global equities as long as ACWI-US is above $93, targeting $110.29. This is the measured move price target following the inverse head-and-shoulders breakout.


MSCI ACWI-US Bullish Above $93; EURO STOXX 50 Holding At Uptrend; Buys in Discretionary, Tech, Svcs.

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/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a> ’s 1Q2023 earnings beat consensus estimates and the key highlight was the company turning into adjusted operating profits after two years.</li>
<li>Revenue from Core local commerce continued to see strong growth in earnings though we expected growth rates to decline with pandemic conditions easing off.</li>
<li>Meituan has launched its food delivery app “KeeTa” in Hong Kong which is dominated by Foodpanda and Deliveroo.</li>
</ul>



Meituan (3690 HK) ’s 1Q2023 earnings beat consensus estimates and the key highlight was the company turning into adjusted operating profits after two years.
Revenue from Core local commerce continued to see strong growth in earnings though we expected growth rates to decline with pandemic conditions easing off.
Meituan has launched its food delivery app “KeeTa” in Hong Kong which is dominated by Foodpanda and Deliveroo.


Meituan: Strong 1Q with Operating Profits; No Disclosure on User Numbers and Delivery Costs

Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

News from Caixin

Cross Asset Strategy

<ul><li>Debt /: Cover Story: China’s effort to move mountain of ‘hidden debt’ faces uphill climb</li><li>G7 /: China protests G7 communique, saying it interferes in domestic affairs</li><li>Covid-19 /: China’s post-reopening second Covid wave could peak in late June, expert says</li></ul>

Debt /: Cover Story: China’s effort to move mountain of ‘hidden debt’ faces uphill climbG7 /: China protests G7 communique, saying it interferes in domestic affairsCovid-19 /: China’s post-reopening second Covid wave could peak in late June, expert says

CX Daily: China’s Effort to Move Mountain of ‘Hidden Debt’ Faces Uphill Climb

<ul><li>Chinese food delivery giant Meituan launched a recruitment campaign in Hong Kong signaling a push into the Asian financial hub dominated by foreign on-demand service leaders foodpanda and Deliveroo.</li><li>Meituan is hiring delivery workers including motorcycle and bike riders as well as so-called foot soldiers who can dispatch orders by foot, a recruitment document showed.</li><li>As an incentive, Meituan said new riders who complete a certain volume of orders will receive a bonus of HK$2,500 ($319).</li></ul>

Chinese food delivery giant Meituan launched a recruitment campaign in Hong Kong signaling a push into the Asian financial hub dominated by foreign on-demand service leaders foodpanda and Deliveroo.Meituan is hiring delivery workers including motorcycle and bike riders as well as so-called foot soldiers who can dispatch orders by foot, a recruitment document showed.As an incentive, Meituan said new riders who complete a certain volume of orders will receive a bonus of HK$2,500 ($319).

Meituan Gears Up for Hong Kong Expansion With Rider Recruitment

United Kingdom

Deliveroo PLC provides software solutions. The Company offers an online food delivery platform which allows users to order meals from partner restaurants, grocery stores, and other food suppliers. Deliveroo serves customers worldwide.

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Deliveroo (ROO LN)

Instacart IPO Valuation Analysis

Our base case valuation of Instacart is target price of $33.7 per share, which represents a 20% upside from the high end of the IPO price range...

Douglas Kim

MSCI ACWI-US Bullish Above $93; EURO STOXX 50 Holding At Uptrend; Buys in Discretionary, Tech, Svcs.

MSCI $ACWI Bullish Above $93, inverse head-and-shoulders breakout targets $110; EURO $STOXX 50 Holding At the Uptrend; Buys in Consumer...

Vermilion Research

Meituan: Strong 1Q with Operating Profits; No Disclosure on User Numbers and Delivery Costs

Meituan reported adj. OP and core local commerce biz seeing strong growth. There is no disclosure on user/merchant numbers and delivery costs which...

Shifara Samsudeen, ACMA, CGMA

CX Daily: China’s Effort to Move Mountain of ‘Hidden Debt’ Faces Uphill Climb

Debt /: Cover Story: China’s effort to move mountain of ‘hidden debt’ faces uphill climb G7 /: China protests G7 communique, saying it interferes...

Caixin Global

Meituan Gears Up for Hong Kong Expansion With Rider Recruitment

Chinese food delivery giant Meituan launched a recruitment campaign in Hong Kong signaling a push into the Asian financial hub dominated by...

Caixin Global

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