Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

Equity Bottom-Up

<ul><li>Tuya 4Q23 beats. Tuya reported 4Q23 revenue of $64 million, up 42% Y/Y, while overall gross margin reached a historical high of 47.3% and non-GAAP net profit reached a new peak of $12.6 million, representing 19.5% of non-GAAP net margin, driven by a global downstream demand recovery, the end of industry restocking, and Tuya’s successful execution of its big customer- focused strategy and earlier restructuring.</li><li>IoT PaaS contributed $47 million of revenue in 4Q23, up 45% Y/Y, driven by the normalization of downstream inventory and Tuya’s big customer-focused strategy.</li><li>Meanwhile, Tuya sees a more balanced distribution between smart lighting and electrical versus smart safety and home appliances.</li></ul>

Tuya 4Q23 beats. Tuya reported 4Q23 revenue of $64 million, up 42% Y/Y, while overall gross margin reached a historical high of 47.3% and non-GAAP net profit reached a new peak of $12.6 million, representing 19.5% of non-GAAP net margin, driven by a global downstream demand recovery, the end of industry restocking, and Tuya’s successful execution of its big customer- focused strategy and earlier restructuring.IoT PaaS contributed $47 million of revenue in 4Q23, up 45% Y/Y, driven by the normalization of downstream inventory and Tuya’s big customer-focused strategy.Meanwhile, Tuya sees a more balanced distribution between smart lighting and electrical versus smart safety and home appliances.

Tuya, Inc. - 4Q23 Beats: Well Positioned for 2024

<ul><li>Tuya is a leading Internet of Things (IoT) ecosystem builder that enables businesses to quickly design networked intelligence into their products, creating competitive advantages for themselves and added benefits for end customers.</li><li>Traditionally, brands and OEMs have invested significant effort and budget to make their products smart and provide end customers with a unified experience.</li><li>Tuya attempts to address this market fragmentation through its one- stop platform and neutral infrastructure, which it believes enables brands, OEMs, and developers to develop, launch, manage, and monetize smart devices and services in a quick and cost-effective way. </li></ul>

Tuya is a leading Internet of Things (IoT) ecosystem builder that enables businesses to quickly design networked intelligence into their products, creating competitive advantages for themselves and added benefits for end customers.Traditionally, brands and OEMs have invested significant effort and budget to make their products smart and provide end customers with a unified experience.Tuya attempts to address this market fragmentation through its one- stop platform and neutral infrastructure, which it believes enables brands, OEMs, and developers to develop, launch, manage, and monetize smart devices and services in a quick and cost-effective way. 

Tuya, Inc. - Winter Is Over: IoT Ecosystem Builder Pioneers the Next Stage of Growth

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Full Truck Alliance   / Equity Capital Markets

<ul>
<li>Full Truck Alliance (FTA), China’s largest digital freight platform by gross transaction value, raised around US$2bn in its US listing in Jun 21. It is backed by Softbank and Sequoia.</li>
<li>We have looked at various aspects of the deal in our earlier IPO notes, links to which are included below.</li>
<li>In this note, we look at the updates since listing and the impact of the upcoming lock-up expiry.</li>
</ul>


Full Truck Alliance (FTA), China’s largest digital freight platform by gross transaction value, raised around US$2bn in its US listing in Jun 21. It is backed by Softbank and Sequoia.
We have looked at various aspects of the deal in our earlier IPO notes, links to which are included below.
In this note, we look at the updates since listing and the impact of the upcoming lock-up expiry.


Full Truck Alliance Lock-Up Expiry - In Similar Delisting Boat as Didi. 60% of Stock up for Lock-Up

SenseTime Group  / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/sensetime-group" target="_blank" data-smartkarma-citation="entities:34319:1" rel="noopener">SenseTime Group (1475539D HK)</a> is looking to raise about US$2bn in its upcoming Hong Kong IPO. SenseTime Group (STG) is a leading AI software company. Its software is used by customers from a wide range of industries. STG was the largest AI software company in Asia in terms of 2020 revenue, as per Frost &amp; Sullivan (F&amp;S).In this note, we look at STG’s business model, financials, and share our initial thoughts on the IPO.

SenseTime Group (1475539D HK) is looking to raise about US$2bn in its upcoming Hong Kong IPO. SenseTime Group (STG) is a leading AI software company. Its software is used by customers from a wide range of industries. STG was the largest AI software company in Asia in terms of 2020 revenue, as per Frost &amp; Sullivan (F&amp;S).In this note, we look at STG’s business model, financials, and share our initial thoughts on the IPO.

SenseTime Group (商汤集团) Pre-IPO - Fast-Growing but Still Finding Its Footing

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.

<a href="https://www.smartkarma.com/entities/tdcx-inc" target="_blank" data-smartkarma-citation="entities:34187:1" rel="noopener">TDCX (TDCX US)</a> TDCX provides digital customer experience solutions for innovative technology and other blue-chip companies. The company’s solutions include omnichannel CX solutions, sales and digital marketing services, content monitoring and moderation services to a global client base that includes Facebook and Airbnb.The company has filed for an IPO to list its shares in the US and plans to raise proceeds of about US$400m. The company plans to use about US$180m of the net IPO proceeds for repaying its debt (obtained under the Credit Suisse Facility) while the remainder will be used for business expansion including into new markets.In this insight, we examine the company’s business model, segments, revenues, margins and the outlook on the company.

TDCX (TDCX US) TDCX provides digital customer experience solutions for innovative technology and other blue-chip companies. The company’s solutions include omnichannel CX solutions, sales and digital marketing services, content monitoring and moderation services to a global client base that includes Facebook and Airbnb.The company has filed for an IPO to list its shares in the US and plans to raise proceeds of about US$400m. The company plans to use about US$180m of the net IPO proceeds for repaying its debt (obtained under the Credit Suisse Facility) while the remainder will be used for business expansion including into new markets.In this insight, we examine the company’s business model, segments, revenues, margins and the outlook on the company.

TDCX IPO: Not a Typical Unprofitable Tech Services Company

United States

Tuya Inc., doing business as Tuya Smart, provides IoT cloud platform. The Company offers solutions which enables brands, retailers, OEMs, and manufacturers to develop, launch, manage, and monetize software-enabled devices and services. Tuya Smart serves customers worldwide.

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

Tuya Inc (TUYA US)

Tuya, Inc. - 4Q23 Beats: Well Positioned for 2024

IoT PaaS contributed $47 million of revenue in 4Q23, up 45% Y/Y, driven by the normalization of downstream inventory and Tuya’s big customer...

Water Tower Research

Tuya, Inc. - Winter Is Over: IoT Ecosystem Builder Pioneers the Next Stage of Growth

Traditionally, brands and OEMs have invested significant effort and budget to make their products smart and provide end customers with a unified...

Water Tower Research

Full Truck Alliance Lock-Up Expiry - In Similar Delisting Boat as Didi. 60% of Stock up for Lock-Up

Full Truck Alliance (FTA), China’s largest digital freight platform by gross transaction value, raised around US$2bn in its US listing in Jun 21....

Sumeet Singh

SenseTime Group (商汤集团) Pre-IPO - Fast-Growing but Still Finding Its Footing

SenseTime Group (1475539D HK) is looking to raise about US$2bn in its upcoming Hong Kong IPO. SenseTime Group (STG) is a leading AI software company.

Sumeet Singh

TDCX IPO: Not a Typical Unprofitable Tech Services Company

Unlike a large number of tech and internet services companies that went for listing in the US and HK recently who had no clear path to profits,...

Shifara Samsudeen, ACMA, CGMA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)