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.

Equity Capital Markets

<a href="https://www.smartkarma.com/entities/tuya-inc" target="_blank" data-smartkarma-citation="entities:32158:1" rel="noopener">Tuya Inc (1869782D US)</a> provides a backend service for IoT (internet of things) device makers. Tuya offers its customers a Platform-as-a-Service (PaaS) for IoT devices that handles the connectivity, device software and application development. In 2020, Tuya was the largest IoT PaaS business globally as measured by the volume of smart devices powered, according to CIC.Tuya is backed by <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a> (10.8% stake) and NEA (23.9% stake). Jeff Immelt, the former chairman and CEO of <a href="https://www.smartkarma.com/entities/general-electric-co" target="_blank" data-smartkarma-citation="entities:782:1" rel="noopener">General Electric Co (GE US)</a>, is a venture partner at NEA and has been appointed as a director at Tuya. Tuya has filed for an NYSE IPO to raise proceeds of $1 billion, according to press reports. Despite the growing user demand for smart IoT enabled devices driven by increased affordability and improved user experiences, most products are not connected yet. Devices related to smart home and smart business reached 762.8 million in 2019 and is expected to grow to 2.5 billion by 2024, representing a CAGR of 26.7%, according to CIC. This is a huge opportunity for companies that can offer their customers a cost-effective solution to bring their products online. <div class="content-highlight">PaaS is a key enabler to accelerate the launch of smart IoT enabled devices by making the software development cycles and feature update process time and cost-efficient. PaaS is a platform where third-party providers deliver software, infrastructure and hardware tools needed for software developers to build and manage software efficiently. Tuya’s PaaS solutions are well-positioned to benefit from the rising need for third-party IoT PaaS providers who can provide the required tools. Overall, we believe that Tuya’s fundamentals are attractive.</div>

Tuya Inc (1869782D US) provides a backend service for IoT (internet of things) device makers. Tuya offers its customers a Platform-as-a-Service (PaaS) for IoT devices that handles the connectivity, device software and application development. In 2020, Tuya was the largest IoT PaaS business globally as measured by the volume of smart devices powered, according to CIC.Tuya is backed by Tencent Holdings (700 HK) (10.8% stake) and NEA (23.9% stake). Jeff Immelt, the former chairman and CEO of General Electric Co (GE US), is a venture partner at NEA and has been appointed as a director at Tuya. Tuya has filed for an NYSE IPO to raise proceeds of $1 billion, according to press reports. Despite the growing user demand for smart IoT enabled devices driven by increased affordability and improved user experiences, most products are not connected yet. Devices related to smart home and smart business reached 762.8 million in 2019 and is expected to grow to 2.5 billion by 2024, representing a CAGR of 26.7%, according to CIC. This is a huge opportunity for companies that can offer their customers a cost-effective solution to bring their products online. PaaS is a key enabler to accelerate the launch of smart IoT enabled devices by making the software development cycles and feature update process time and cost-efficient. PaaS is a platform where third-party providers deliver software, infrastructure and hardware tools needed for software developers to build and manage software efficiently. Tuya’s PaaS solutions are well-positioned to benefit from the rising need for third-party IoT PaaS providers who can provide the required tools. Overall, we believe that Tuya’s fundamentals are attractive.

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

MSCI Emerging Markets Index / Technical Analysis

We continue to believe the path of least resistance is higher for global equities. As a result, our outlook remains bullish and we suggest buying any dips. This week we are focusing on Consumer Staples and Health Care, two Sectors that have been less-loved over the past several months. We also highlight additional ideas in the following Sectors: Services, Technology, Financials, Real Estate, Communications, and Utilities.

We continue to believe the path of least resistance is higher for global equities. As a result, our outlook remains bullish and we suggest buying any dips. This week we are focusing on Consumer Staples and Health Care, two Sectors that have been less-loved over the past several months. We also highlight additional ideas in the following Sectors: Services, Technology, Financials, Real Estate, Communications, and Utilities.

EM Equities At New Highs Despite Some Caution Signs

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.

Event-Driven

<ul>
<li>Dutch health technology company, Philips during its 4Q2019 results release, announced that it will be reviewing options for future ownership of its Domestic Appliance business.</li>
<li>The domestic appliance business is engaged in the sale of coffee machines, air purifiers and air fryers and the company has booked the domestic appliance business under its Personal Health Segment.</li>
<li>Philips has a long history of business restructuring where it previously divested/spun-off its semiconductor, TVs and lighting businesses in order to narrow down its focus on healthcare equipment and personal health products.</li>
<li>In this insight, we take a look at the company’s Domestic Appliance business, potential valuation and the impact on Philips’ revenue and margins.</li>
</ul>


Dutch health technology company, Philips during its 4Q2019 results release, announced that it will be reviewing options for future ownership of its Domestic Appliance business.
The domestic appliance business is engaged in the sale of coffee machines, air purifiers and air fryers and the company has booked the domestic appliance business under its Personal Health Segment.
Philips has a long history of business restructuring where it previously divested/spun-off its semiconductor, TVs and lighting businesses in order to narrow down its focus on healthcare equipment and personal health products.
In this insight, we take a look at the company’s Domestic Appliance business, potential valuation and the impact on Philips’ revenue and margins.


Philips to Divest Domestic Appliances Business – Potential for Margin Expansion

Insight Provider, CrossASEAN Research

Nicolas Van Broekhoven

Insight Provider

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

On Monday the 22nd of July I attended the AGM of <a href="https://www.smartkarma.com/entities/8387" target="_blank" data-smartkarma-citation="entities:8387:1" rel="noopener">Valuetronics Holdings Ltd (VALUE SP)</a> in Singapore. The meeting was attended by about 120 shareholders. There was a barrage of questions by multiple shareholders which meant the meeting lasted for almost two hours.The share price of <a href="https://www.smartkarma.com/entities/8387" target="_blank" data-smartkarma-citation="entities:8387:1" rel="noopener">Valuetronics Holdings Ltd (VALUE SP)</a> is up over 8% YTD. While the CE segment will remain volatile the ICE segment should continue to be a long-term driver. Short-term all investors are watching how the trade war unfolds as Valuetronics is a prime victim with 45% of its sales coming from US clients and 100% of its production base in China. Investors were keenly focused to learn about its relocation plans to Vietnam and M&amp;A search in North America.Despite the strong cash position (52% of market cap), attractive dividend (5% yield) and cheap valuation (4x ex-cash 2020 PE) I continue to think there is no rush to buy Valuetronics until there is more clarity on a trade war outcome. The next set of results (1Q20) should be out by the second week of August.

On Monday the 22nd of July I attended the AGM of Valuetronics Holdings Ltd (VALUE SP) in Singapore. The meeting was attended by about 120 shareholders. There was a barrage of questions by multiple shareholders which meant the meeting lasted for almost two hours.The share price of Valuetronics Holdings Ltd (VALUE SP) is up over 8% YTD. While the CE segment will remain volatile the ICE segment should continue to be a long-term driver. Short-term all investors are watching how the trade war unfolds as Valuetronics is a prime victim with 45% of its sales coming from US clients and 100% of its production base in China. Investors were keenly focused to learn about its relocation plans to Vietnam and M&amp;A search in North America.Despite the strong cash position (52% of market cap), attractive dividend (5% yield) and cheap valuation (4x ex-cash 2020 PE) I continue to think there is no rush to buy Valuetronics until there is more clarity on a trade war outcome. The next set of results (1Q20) should be out by the second week of August.

AGM Valuetronics (VALUE SP): Talking Points Remain Trial Production in Vietnam + M&A in N. America

Asia Long-Short PM/Analyst

Curtis Lehnert

I am long Sunningdale Tech (SUNN SP).  Every time I've bought a stock after a panic selloff for non-fundamental reasons, I've typically done very well.  (Don't worry, I've managed to botch plenty of other things in my life.)
There is an interesting buying opportunity on this Singapore plastic injection player trading around 0.6x P/B with liquidity of USD 2-3mm/day. A 1Q earnings miss sent the stock diving 25%, while I see a re-rating catalyst coming up in the 2Q earnings report.  There is a rousing 1:3.5 risk-reward ratio that offers 83% upside realistically that turns into a 1:5 ratio in a blue sky scenario with 128% upside.
This is a unique situation that value hunters and sticklers for a catalyst alike would be well served to look into.

I am long Sunningdale Tech (SUNN SP).  Every time I've bought a stock after a panic selloff for non-fundamental reasons, I've typically done very well.  (Don't worry, I've managed to botch plenty of other things in my life.)
There is an interesting buying opportunity on this Singapore plastic injection player trading around 0.6x P/B with liquidity of USD 2-3mm/day. A 1Q earnings miss sent the stock diving 25%, while I see a re-rating catalyst coming up in the 2Q earnings report.  There is a rousing 1:3.5 risk-reward ratio that offers 83% upside realistically that turns into a 1:5 ratio in a blue sky scenario with 128% upside.
This is a unique situation that value hunters and sticklers for a catalyst alike would be well served to look into.

Sunningdale Tech (SUNN SP): Value...with a Catalyst - CONVICTION BUY

Netherlands

Koninklijke Philips NV is a health technology company focused on improving people's health across the health continuum from healthy living and prevention, to diagnosis, treatment, and home care. The Company offers products and services in diagnostic imaging, image-guided therapy, patient monitoring and health informatics, as well as in consumer health and home care.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Koninklijke Philips NV (PHIA NA)

Tuya IPO Initiation: Connected Future

Tencent-backed Tuya has filed for an NYSE IPO to raise proceeds of $1 billion, according to press reports. Overall, we believe that Tuya’s...

Arun George

EM Equities At New Highs Despite Some Caution Signs

We continue to believe the path of least resistance is higher for global equities. As a result, our outlook remains bullish and we suggest buying...

Vermilion Research

Philips to Divest Domestic Appliances Business – Potential for Margin Expansion

Dutch health technology company, Philips during its 4Q2019 results release, announced that it will be reviewing options for future ownership of...

Shifara Samsudeen, ACMA, CGMA

AGM Valuetronics (VALUE SP): Talking Points Remain Trial Production in Vietnam + M&A in N. America

On Monday the 22nd of July I attended the AGM of Valuetronics Holdings Ltd (VALUE SP) in Singapore. The meeting was attended by about 120...

Nicolas Van Broekhoven

Sunningdale Tech (SUNN SP): Value...with a Catalyst - CONVICTION BUY

I am long Sunningdale Tech (SUNN SP). Every time I've bought a stock after a panic selloff for non-fundamental reasons, I've typically done very...

Curtis Lehnert

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)