TMT/Internet

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
On the IPO front, Socionext (6526 JP) provided a welcome respite with a positive listing, while South Korean IPOs continued to struggle.
There was only one large placement this week, with GLP J-REIT (3281 JP) deciding to brave the markets.

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Oct 15

Daily Brief TMT/Internet: Taiwan Semiconductor (TSMC), Semiconductor Manufacturing International Corp (SMIC), SS&C Technologies and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

Intel Vs. TSMC/UMC Long/Short Monitor: Mgmt Call Takeaways, Calculating a Normalized Valuation
Shanghai/Shenzhen Southbound Connect: Weekly Moves (14 October 2022)
SS&C Technologies Holdings Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report
SS&C Technologies Holdings Inc.: Initiation of Coverage – Competitive Positioning

Intel Vs. TSMC/UMC Long/Short Monitor: Mgmt Call Takeaways, Calculating a Normalized Valuation

By Vincent Fernando, CFA

TSMC says limited impact from U.S. China restrictions — We crosscheck the comments.
TSMC guidance was strong and gives hope for 1H23 industry improvement. Looks cheap on a cycle-adjusted PE.
Intel has outperformed TSMC shares despite the recent TSMC rebound.

Shanghai/Shenzhen Southbound Connect: Weekly Moves (14 October 2022)

Inside is a recap of movements in the last week relating to the Shanghai and Shenzhen-Hong Kong Stock Connect facilities, broken down by company and industry.
Overall, the net inflow over the past week was ~US$0.5bn, split (+US$0.26bn) for Shanghai and (+US$0.24bn) for Shenzhen.
The largest inflows were into Tracker Fund of Hong Kong Ltd (2800 HK) and Tencent (700 HK). The largest outflows were in Meituan (3690 HK) and Semiconductor Manufacturing International (981 HK).

SS&C Technologies Holdings Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report

SS&C Technologies is a major software solutions provider to the financial and healthcare industries.
Even while new fund launches and inflows influenced the Alternatives industry, it nevertheless developed well.
In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

SS&C Technologies Holdings Inc.: Initiation of Coverage – Competitive Positioning

This is our first report on SS&C Technologies, a well-known software solutions provider to the financial and healthcare industries.
Even while new fund launches and inflows influenced the Alternatives industry, it nevertheless developed well.
We initiate coverage on the stock of SS&C Technologies with a ‘Buy’ rating.

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Oct 14

Daily Brief TMT/Internet: Sea Ltd, Elmo Software, Lionheart Studio, Tata Elxsi Ltd, ByteDance, Kaynes Technology India, BYJU’S, Gartner Inc, Luwjistik and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

Sea Ltd – No Bringing Back to Life For Free Fire, Shopee’s Top Line Growth Could Disappear
Elmo Software Confirms Takeover Interest from Various Parties
ELMO Software (ELO AU): KKR Returns To The Well
Lionheart Studio IPO: Still Same Inflated Valuation
S&P BSE/Sensex Quiddity Leaderboard Dec 22: Adani Names with F&O Question Marks Still in the Race
TikTok Dives Into Southeast Asia With E-Commerce Push
Kaynes Technology Pre-IPO – Can’t Put a Finger on the Business
Byju’s to Lay off 2,500 Employees, Consolidate Several Units
Gartner Inc: Initiation of Coverage – Major Revenue Streams & Other Drivers
Shippit Acquires Luwjistik to Ramp up Regional Expansion

Sea Ltd – No Bringing Back to Life For Free Fire, Shopee’s Top Line Growth Could Disappear

By Oshadhi Kumarasiri

Garena has introduced nine major updates to “Free Fire” since June last-year but none of them has managed to turn around the game’s declining trend and regain the lost users.
With Sea Ltd (SE US) no longer capable of funding Shopee’s growth, we are expecting e-commerce to start losing its top-line growth potential from 4Q22.
Even though we are predicting a lot of downside to Sea Ltd over the medium term, an okayish Q3 could see shares bouncing back from the bottom.

Elmo Software Confirms Takeover Interest from Various Parties

Elmo Software (ELO AU) confirmed takeover interest from several parties, including Accel-KKR. Elmo previously disclosed on 14 June that it had discussions on a non-binding offer at A$6.10 per share.
The previous talks ended because the bidder (Accel-KKR) could not progress to a binding offer due to changing tech valuations. Elmo has materially underperformed ASX SaaS peers since 14 June.
The current conditions suggest a higher risk that the talks will fizzle out. Despite today’s 28% pop, the shares remain undemanding compared to peer multiples providing support to the shares.

ELMO Software (ELO AU): KKR Returns To The Well

Cloud-Based solutions provider Elmo Software (ELO AU) has confirmed it has received multiple expressions of interest from various parties, including Accel-KKR.
No agreement has been reached with any parties, no pricing mentioned, nor whether data room access has been afforded.
Earlier this year ELMO held discussions with Accel-KKR in regard to a change of control proposal at $6.10/share. That figure is a stretch in this market.

Lionheart Studio IPO: Still Same Inflated Valuation

By Sanghyun Park

Lionheart used the net profit from 3Q last year to 2Q this year. The Odin sales peaked in the third quarter of last year and are on a downward trend.
The indicative price band reaches a P/E multiple of 22~32x reasonably projected earnings of ₩140B. NCsoft’s 12M forward PER stands at 14-15x. Krafton is only 12x.
It is unclear whether the market will accept this price deception under current conditions. We should refrain from aggressively approaching it without a clear answer to the decline in sales.

S&P BSE/Sensex Quiddity Leaderboard Dec 22: Adani Names with F&O Question Marks Still in the Race

By Janaghan Jeyakumar, CFA

In this insight, we take a look at the names leading the race to become ADDs/DELs for the BSE SENSEX, 100, 200, and 500 Indices in the December 2022 Rebalance.
The reference period for the trading data used for the index selection ends on 31st October 2022.
At present, I see one change for SENSEX, three changes for BSE 100, and six changes for BSE 200.

TikTok Dives Into Southeast Asia With E-Commerce Push

By Caixin Global

ByteDance’s TikTok is cranking up its e-commerce foray into Southeast Asia as the Chinese tech giant pushes to commercialize the popular short video app to create a new revenue stream.
During the first half, TikTok launched e-commerce businesses in Thailand, Vietnam, Malaysia, the Philippines and Singapore, expanding its presence to all major markets in the region.
TikTok has been operating online shopping services in Indonesia, Southeast Asia’s largest economy, since early 2021.

Kaynes Technology Pre-IPO – Can’t Put a Finger on the Business

By Ethan Aw

Kaynes Technology India (7575164Z IN) is looking to raise about US$125m in its upcoming India IPO.
Kaynes Technology (KT) is an end-to-end and IoT solutions enabled integrated electronics manufacturing player, having capabilities across the entire spectrum of electronics system design and manufacturing (ESDM) services.
Profitability accelerated post COVID-19 with margins expanding slightly. However, revenue growth might have been driven by the pandemic and there hasn’t been much operating data for us to work with.

Byju’s to Lay off 2,500 Employees, Consolidate Several Units

By Tech in Asia

Byju’s, the global edtech behemoth based out of India, announced that it is laying off 5% or 2,500 of its total workforce as it restructures to achieve overall profitability by March 2023.
The job cuts, which will be across the product, content, media, and technology teams, will be done in phases.
The SoftBank-backed company said the move stems from the consolidation of its various K-10 businesses, namely Toppr, Meritnation, TutorVista, Scholar, and HashLearn, into one unit.

Gartner Inc: Initiation of Coverage – Major Revenue Streams & Other Drivers

This is our first report on Gartner, one of the most well-known companies in the market research and IT advisory domain.
The past quarter’s results for Gartner were quite strong, with double-digit growth in adjusted EPS, revenue, and contract value and the company delivered an all-around beat.
The research revenue of the company has been consistently growing and the retention rate has been quite strong.

Shippit Acquires Luwjistik to Ramp up Regional Expansion

By e27

Australian logistics tech platform Shippit announced that it had acquired its Southeast Asian (SEA) counterpart Luwjistik.
This deal is Shippit’s second acquisition in 2022, after announcing the acquisition of leading Australian last mile technology firm Premonition in March.
Shippit has been operating in SEA since 2020. Through the acquisition, it plans to double down on growth in the region, including in its enterprise customers, by leveraging Luwjistik’s technology, local relationships and expertise.

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Oct 12

Daily Brief TMT/Internet: Socionext, Pushpay Holdings, Lionheart Studio, Meituan, Palo Alto Networks, Zebra Technologies Corp, Adyen BV, Amphenol Corp Cl A and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

Socionext IPO Trading – Upsized IPO with Strong Demand. Peers Inched Downwards, but Upside Remains
Pushpay: BGH Resurrects The Catholic Opportunity
LionHeart Studio Pre-IPO – The Negatives – Appears to Be Well past Its Peak, Founder Cashed In $700m
Does Meituan Have the Appetite to Serve HK Food Delivery Market and Take On Foodpanda and Deliveroo?
Cyberattacks at Numerous US Airports by Suspects from Russia
LionHeart Studio IPO – Peer Comparison – Youngest and Most Untested
Zebra Technologies Corporation: Initiation of Coverage – Wide Footprint
Adyen ($ADYEY, $ADYYF, $ADYEN)
Amphenol Corporation: Detailed Credit Analysis & Financial Strength Evaluation Report
Amphenol Corporation: Initiation of Coverage – Financial Forecasts

Socionext IPO Trading – Upsized IPO with Strong Demand. Peers Inched Downwards, but Upside Remains

By Clarence Chu

Socionext (6526 JP) raised around US$463m in its Japan IPO. The IPO consisted of 100% secondary shares.
Socionext is a fabless semiconductor provider which commenced operations after integrating the system on a chip (SoC) businesses of Fujitsu Semiconductor Limited and Panasonic Holding Corporation.
In this note we will talk about the trading dynamics.

Pushpay: BGH Resurrects The Catholic Opportunity

Back on the 26 April, church donor management tech play Pushpay Holdings (PPH NZ) announced “unsolicited, non-binding and conditional expressions of interest or approaches from third parties“. No price was mentioned.
Roughly a month later, BGH Capital and Sixth Street, both existing shareholders, entered into a cooperation agreement with respect to a potential transaction for Pushpay. Again, no price was provided.
Pushpay has now announced it has received a non-binding proposal. Word on the street this involves BGH. Still, no price was made public. A 30% premium to undisturbed is ~NZ$1.34/share.

LionHeart Studio Pre-IPO – The Negatives – Appears to Be Well past Its Peak, Founder Cashed In $700m

By Shifara Samsudeen, ACMA, CGMA

Lionheart Studio (426630 KS), a game development studio based in South Korea, aims to raise around US$420m via its South Korean IPO.
The company is majority owned by Kakao Games Corp (293490 KS) , which after having recently hiked its stake, owned 54.94% of the company prior to listing.
In this note, we will talk about the not-so-positive aspects of the deal.

Does Meituan Have the Appetite to Serve HK Food Delivery Market and Take On Foodpanda and Deliveroo?

Several news media outlets reported that food delivery giant Meituan (3690 HK) is preparing to enter the food delivery market in Hong Kong as domestic market is slowing down.
Slowdown in Chinese economy coupled with regulatory hurdles have made it impossible for Meituan and other domestic tech players to expand locally.
Online food delivery market in HK is dominated by Foodpanda and Deliveroo, and we think Meituan will have to offer deep discounts to grab market share from these two dominants.

Cyberattacks at Numerous US Airports by Suspects from Russia

By Douglas Kim

In the past 24 hours, there have been many news flow about numerous US airports that have been cyber attacked by suspects from Russia.
The increasing media attention on cyberattack threat could result in greater concerns about cybersecurity inducing higher global spending on software and other services that help to protect against cyber attacks.
Global cybersecurity stocks that could benefit from greater media attention on cyberattacks include Palo Alto Networks (PANW US) Crowdstrike Holdings Inc (CRWD US) CloudFlare (NET US).

LionHeart Studio IPO – Peer Comparison – Youngest and Most Untested

Lionheart Studio (426630 KS), a game development studio based in South Korea, aims to raise around US$420m via its South Korean IPO.
The company is majority owned by Kakao Games Corp (293490 KS), which after having recently hiked its stake, owned 54.94% of the company prior to listing.
We spoke about the company’s past performance in our previous note. In this note, we’ll undertake a peer comparison.

Zebra Technologies Corporation: Initiation of Coverage – Wide Footprint

This is our first report on one of the leading players in the Automatic Identification Data Capture (AIDC) market, Zebra Technologies Corporation.
For the solutions which automate and digitize workflows, customer demand remains strong for Zebra and it saw good growth in the e-commerce, retail, manufacturing, and healthcare end markets.
We initiate coverage on the stock of Zebra Technologies Corporation with a ‘Buy’ rating.

Adyen ($ADYEY, $ADYYF, $ADYEN)

By MT Capital

When I think about the world of tech, there is no shortage of products, developments, or innovations that deserve attention.
Some pieces of technology, when broken down, are extraordinarily complex and exist out in the open.
Others hide in plain sight, functioning in the shadows, but are still responsible for certain components of indispensable processes that allow our world to operate as we know it today.

Amphenol Corporation: Detailed Credit Analysis & Financial Strength Evaluation Report

Amphenol Corporation is a renowned designer, manufacturer, and marketer of electrical, electronic and fiber optic connectors and interconnect systems, antennas, sensors and sensor-based products, and coaxial and high-speed specialty cables.
The company has seen a strong financial performance in recent quarters and their restructuring strategy is on track.
Amphenol’s strong portfolio of advanced connectivity and sensor solutions places the company well across all key defense programs as militaries worldwide continue to deploy a wide range of next-generation defense technologies.

Amphenol Corporation: Initiation of Coverage – Financial Forecasts

This is our first report on Amphenol Corporation.
The company is a well-known designer and manufacturer of electrical, electronic and fiber optic connectors and interconnect systems, antennas, sensors and sensor-based products, and coaxial and high-speed specialty cables.
After two challenging years for the airline sector, Amphenol finally saw quarter of strength in the commercial aviation market.

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Oct 11

Daily Brief TMT/Internet: Bilibili, Pushpay Holdings, Lionheart Studio, Tencent, Yaskawa Electric, AVEVA Group PLC, Binance Coin and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

Clarifying the Bilibili (9626 HK) Rule on Southbound Eligibility
Pushpay Draws Another Sixth Street/BGH Offer
Lion Heart Studio Pre-IPO – The Positives – Got One Hit
Tencent Seeks Majority Stake in Overseas Game Companies as Game Revenue Slows Down Further
Yaskawa (6506 JP) | Constant Currency Concerns
Schneider Electric/Aveva: Potential Offer Price Sweetening
Open Interest Hits All Time High

Clarifying the Bilibili (9626 HK) Rule on Southbound Eligibility

By Travis Lundy

Bilibili Inc (BILI US) listed in the US in April 2018. It eventually listed in Hong Kong under the ticker Bilibili (9626 HK) in March 2021 as a Secondary Listing.
Bilibili (9626 HK) announced 16 March 2022 it intended to pursue a HK Primary Listing. Application was announced on 2 May 2022, Circular a month later. Results announced 29 September.
As of 3 October, it is a Dual Primary Listing, making it eventually eligible for Southbound Trading. But there as confusion as to when. Hint: It’s March 2023.

Pushpay Draws Another Sixth Street/BGH Offer

Pushpay Holdings (PPH NZ) confirmed that it had received a “revised” indicative non-binding proposal from a shareholder consortium, believed to be Sixth Street/BGH, which has a 20.3% stake.
The proposal is “to acquire the Company at a premium to Friday’s closing share price.” Due to the sell-off, Sixth Street/BGH will likely offer a lower premium than initially intended.
Our best guess is that Sixth Street/BGH’s offer is around A$1.30 per share. While not a knockout offer, it is a good starting point in the current grim market conditions.

Lion Heart Studio Pre-IPO – The Positives – Got One Hit

By Shifara Samsudeen, ACMA, CGMA

Lionheart Studio (426630 KS), a game development studio based in South Korea, aims to raise around US$420m via its South Korean IPO.
The company is majority owned by Kakao Games Corp (293490 KS), which after having recently hiked its stake, owned 54.94% of the company prior to listing.
In this note, we will talk about the positive aspects of the deal.

Tencent Seeks Majority Stake in Overseas Game Companies as Game Revenue Slows Down Further

Several news media outlets reported last week that Tencent has changed its M&A strategy to obtain majority stakes in overseas gaming companies as opposed to buying minority stakes previously.
Tencent’s online game revenue declined YoY for two-consecutive quarters primarily due to decline in domestic game revenue that was impacted by absence of new game titles and minority protection rules.
Our analysis on Tencent’s game downloads and ranks reveal that both domestic and international game revenues would decline further in 3Q2022E.

Yaskawa (6506 JP) | Constant Currency Concerns

By Mark Chadwick

Yaskawa’s order momentum has peaked. On a constant currency basis, orders growth was -6% sequentially
Margins for the key Motion Control segment were 160bps lower in the quarter compared to a year ago
A minor revision down relies on aggressive FX assumptions for the 2H. We feel there is another downgrade to come. Stay Bearish

Schneider Electric/Aveva: Potential Offer Price Sweetening

By Jesus Rodriguez Aguilar

Davidson Kempner and others may seek an improved offer of up to 3,500p/share, 29.7x EV/Fwd EBIT, in line with Ideagen’s acquisition multiples. Gross spread is +2.38%.
Assuming AVEVA can reach 2018a 34.7% EBITDA margins and increase revenues, the offer price would seem cheap. An increase to 3,300p seems feasible, £4,073 million, similar to the Bridge Facility.
Current net debt/EBITDA is 1.3x and EBIT/interest is 33.6x, so it could comfortably take on that additional debt. At 3,300p, proforma net debt/EBITDA would be 1.9x, before adding any synergies.

Open Interest Hits All Time High

By Kaiko

Price Movements: BNB, the native token of Binance Smart Chain, is down 8% following a $100mn hack.
Market Liquidity: Sushiswap’s market share vs. Uniswap hit all time lows of just 1% in September as new Head Chef takes over.
Derivatives: Open interest on Binance has surged to all time highs, although funding rates remain firmly neutral.

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Oct 10

Daily Brief TMT/Internet: Softbank Group, Link Administration, Taiwan Semiconductor (TSMC) – ADR and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

TOPIX October 2022 Rebal – Buy/Sell Baskets (May the Flow Be Ever In Your Favour)
Weekly Deals Digest (09 Oct) – Betagro, Link Admin, Tyro, MACA, Eagle Cement, O2Micro, SMG
Taiwan Tech Weekly: Our Summary of Sweeping New China Restrictions, TSMC Results This Week

TOPIX October 2022 Rebal – Buy/Sell Baskets (May the Flow Be Ever In Your Favour)

By Travis Lundy

As a follow-on to TOPIX October 2022 Rebal – BIG Names with BIG Flows which discussed ¥2.1trln a side flows overall, this insight analyses and proposes intra-sector baskets.
In general, the sector-neutral BUYs vs SELLs baskets of all names where Index Shares change by 10% or more have seen BUYs sharply outperform SELLs in the past three weeks.
Look for pre-positioning unwinds so trading BUY vs SELL baskets which have bucked the trend, banks and chemicals – might be worthwhile. Otherwise, pick your spots. Use the flow.

Weekly Deals Digest (09 Oct) – Betagro, Link Admin, Tyro, MACA, Eagle Cement, O2Micro, SMG

A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments – CALB (3931 HK)‘s weak debut. Betagro (BTG TB) will open its books for its THB17.4 billion (US$462 million) from 10 to 25 October.
Event-Driven developments – Link Administration (LNK AU), MACA Ltd (MLD AU), Tyro Payments (TYR AU), Eagle Cement Corp (EAGLE PM), O2Micro International (OIIM US), Singapore Medical (SMG SP).

Taiwan Tech Weekly: Our Summary of Sweeping New China Restrictions, TSMC Results This Week

By Vincent Fernando, CFA

AMD and Samsung preliminary numbers disappoint, PC demand weakness cited.
U.S. issues broad new rules restricting technology sales to China, essentially removing China as a long-term demand driver for advanced products.
TSMC results coming out this week, expecting all-time high revenue.

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Oct 09

Daily Brief TMT/Internet: Kakao Corp, KLA-Tencor Corp, Softbank Corp and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

Is Kakao Cheap or Not? Actions Louder than Words
KLA Corporation: Initiation of Coverage – Business Strategy & Key Drivers
Index Rebalance & ETF Flow Recap: HSCI, FTSE, HSI, TW Div+, China 50, KOSDAQ150, TOPIX FFW, PEXA

Is Kakao Cheap or Not? Actions Louder than Words

By Ken S. Kim

Why KakaoBank (323410 KS) , Kakao Games Corp (293490 KS) and Kakao Pay (377300 KS) were hit recently
Aside from the sum of the 3, why Kakao Corp (035720 KS) is getting hit further
Are near the bottom or is there more to go?

KLA Corporation: Initiation of Coverage – Business Strategy & Key Drivers

This is our first report on KLA Corporation, a well-known provider of process control and yield management solutions to the semiconductors industry and other electronics businesses.
Strong customer demand across key product categories, macroeconomic uncertainties, and the effects of consumer demand are factors driving this performance.
Despite macroeconomic and supply chain headwinds, KLA continues to focus on addressing the most pressing process control concerns.

Index Rebalance & ETF Flow Recap: HSCI, FTSE, HSI, TW Div+, China 50, KOSDAQ150, TOPIX FFW, PEXA

By Brian Freitas

We expect a few adds to the HSCI in December followed by a lot more change in March. We could finally reach 80 HSI INDEX constituents in December.
There will be a handful of adds to the FTSE All-World/All-Cap indices in December. But there will be many changes to the FTSE TWSE Taiwan Dividend+ Index in December.
There were large inflows to the Yuanta/PShares Taiwan Dividend Plus ETF (0056 TT), Hang Seng H Share Index ETF (2828 HK) and Tracker Fund of Hong Kong Ltd (2800 HK).

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Oct 08

Daily Brief TMT/Internet: Servicenow Inc, Netgear Inc, Ciena Corp and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

Observability: ServiceNow Acquisition Threatens Dynatrace and Elastic
NTGR: Hotspot of a Preview
Ciena Corporation: Initiation of Coverage – Partnership With MSAR & Other Drivers

Observability: ServiceNow Acquisition Threatens Dynatrace and Elastic

By Aaron Gabin

ServiceNow acquired Era Software this week to extend its presence in the observability and log management space.
The deal is most threatening to DT/ESTC (we advocate as longs) and SPLK (short) because of ServiceNow’s ability to bundle functionality for larger deals.
That said…the observability space remains one of the hottest in digital transformations, and the deal is on net, more validating than threatening to DT/ESTC.

NTGR: Hotspot of a Preview

By Hamed Khorsand

NTGR is relying on the back-to-school shopping season to help sell through some of its lingering wireless router inventory as it transitions to higher end models
We continue to believe the retail market remains challenging for NTGR and the Company could have experienced difficulty in selling down inventory to desired levels
During the third quarter NTGR used Prime Day as an opportunity to reduce inventory for certain Nighthawk wireless routers. We expect the same again during Prime Day on October 11

Ciena Corporation: Initiation of Coverage – Partnership With MSAR & Other Drivers

This is our first report on Ciena Corporation, a networking systems, services and software player catering primarily to the telecom industry.
In spite of the elongated lead times and supply chain challenges, the strong secular demand trends have not shown any sign of abating.
In spite of the supply challenges, Ciena had a record quantity of quarter for its WaveLogic 5 shipments.

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Oct 07

Daily Brief TMT/Internet: Kakao Pay, ISC Co Ltd, Globish, Ambarella Inc, Corning Inc, Binance Coin, Xperi, Trade Desk Inc, Xerox Corp and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

Kakao Pay: Downsized Rights Offering of Kakao Pay Securities & Potential Selling by Alipay
KOSDAQ150 Index Rebalance Preview: Moving in the Right Direction
Thai Online Learning Platform Globish Closes US$2.5M Series A+
Ambarella Inc: Major Drivers
Corning Inc: Facility Expansion & Other Drivers
Introducing: Quarterly Market Report
ADEA & XPER: The Spin and Price Targets
The Trade Desk: The First-Party Data Playbook & Other Drivers
Xerox Corp: Acquisition Of Go Inspire & Other Drivers

Kakao Pay: Downsized Rights Offering of Kakao Pay Securities & Potential Selling by Alipay

By Douglas Kim

The lack of minority shareholders participation in Kakao Pay Securities rights offering is likely to be viewed negatively by many investors since Kakao Pay may need to inject more capital.
On 8 June 2022, Alipay sold 5 million shares of Kakao Pay and Alipay put a lockup on its remaining 46 million shares in Kakao Pay for another 120 days.
All in all, we continue to have a Negative view of Kakao Pay.

KOSDAQ150 Index Rebalance Preview: Moving in the Right Direction

By Brian Freitas

With 85% of the review period complete, we see 10 potential changes to the KOSDAQ 150 Index (KOSDQ150 INDEX) at the December rebalance.
There are a few stocks that are close adds/deletes on market cap and liquidity and could make it into the final list depending on price/volume over the next few weeks.
The potential adds have outperformed the potential deletes over the last month and pre-positioning could continue till the end of the review period.

Thai Online Learning Platform Globish Closes US$2.5M Series A+

By e27

Globish conducts 300,000 English and Chinese classes for learners comprising 20 per cent students and 80 per cent working-age people
Thailand’s edutech startup Globish, which provides a live online learning platform, has announced closing its US$2.5 million Series A+ funding round.
Globish will use the money for expansion into other ASEAN countries. It recently began expanding in Ho Chi Minh City in Vietnam and plans to expand into more markets.

Ambarella Inc: Major Drivers

Ambarella’s Q2 results were on par with management expectations and surpassed the analyst consensus on Wall Street.
The company’s revenue was up 2% from the same period last year, but it was down 10% sequentially.
The company’s blended average selling price surpassed $10 due to the considerable year-over-year growth in CV revenue.

Corning Inc: Facility Expansion & Other Drivers

Corning delivered a mixed set of quarterly results missing out on market expectations with respect to revenues given the challenging environment.
Optical communications were the greatest contributor to the growth of this quarter and were a key factor responsible for the company delivering an earnings beat.
We provide the stock of Corning with a ‘Buy’ rating and a revision in the target price.

Introducing: Quarterly Market Report

By Kaiko

Q3 was a whirlwind dominated by macro volatility, the Merge, and the ongoing fallout from the crypto credit crisis.
Yet, one relatively under-the-radar trend caught my attention: Binance’s increasingly bold moves to clinch market supremacy.
On July 8th, Binance eliminated trading fees for 13 BTC trading pairs and shortly after removed fees for ETH-BUSD.

ADEA & XPER: The Spin and Price Targets

By Hamed Khorsand

Adeia (ADEA) spun out Xperi Inc. (XPER) to shareholders. We are updating our coverage by downgrading ADEA to Buy Rating from Top Pick, initiating coverage of XPER with Top Pick.
The separation of the two businesses should allow the markets to appropriately price each stock. This should lead to a higher overall valuation compared to when the companies were together.
XPER is our Top Pick due to the multiple revenue opportunities from new products over the next 12 months.

The Trade Desk: The First-Party Data Playbook & Other Drivers

Trade Desk’s revenues have continued to grow over the past quarter and the company gained market share in spite of some macroeconomic uncertainty.
The worldwide pressure on Google appears to be creating a market opportunity for Trade Desk.
The company launched its first-party playbook teaching brands to have a self-assessment for companies and their first-party data for the companies to identify their potential steps in the journey of their first-party data.

Xerox Corp: Acquisition Of Go Inspire & Other Drivers

In spite of macroeconomic challenges, Xerox managed to deliver an earnings beat in the last quarterly result.
The signings of its content and capture business, including processing, data extraction, and digital mailroom services, grew double digits though the company did miss out on revenues.
Also, it has launched a worldwide intelligent document process offering to strengthen its content and capture capabilities.

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Oct 06

Daily Brief TMT/Internet: Link Administration, CALB, Samsung Electronics, Twitter Inc, Nasdaq Inc and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

Link’s Ongoing Overtures from DND Underscore Its Value
StubWorld: Link And D&D Continue Negotiations On Unlisted Ops
CALB IPO: Trading Debut
Samsung Electronics: Lee Jae-Yong Orders the Creation of a New Task Force to Raise Shareholder Value
Elon V. Twitter: Elon Caved…For Sure…Maybe
Trading Ideas on the Possibility of Samsung Electronics’ Special Shareholder Returns
We are Not Crashing, It’s Just Volatile

Link’s Ongoing Overtures from DND Underscore Its Value

Dye & Durham/DND is a persistent bidder and returned with a A$1.27 billion bid for Link Administration (LNK AU)’s CM and BCM businesses. The Board will update next week.
The latest offer is attractive but curiously, contradicts DND’s previous comments that the FCA would make it challenging to distribute any part sale proceeds.
Despite the overhang from the FCA fine, DND’s ongoing persistence and the Board’s potential in-specie distribution of the PEXA Group (PXA AU) stake highlight the underlying value.

StubWorld: Link And D&D Continue Negotiations On Unlisted Ops

In a Musk/Twitter-like on/off/on-again situation, Link Administration (LNK AU) announced it received an improved offer for its corporate markets and Banking & Credit Management (BCM) businesses from Dye & Durham.
Separately, Link is working with the Australian Tax Office on the in-specie distribution of a minimum of 80% of Link’s holding into PEXA Group (PXA AU).
Preceding my comments on Link are the current setup/unwind tables for Asia-Pacific Holdcos. These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

CALB IPO: Trading Debut