In today’s briefing:
- A8 New Media (800 HK): A Scheme with a 162% Takeover Premium
- Proposed Merger Between Rebellions and Sapeon – To Challenge Nvidia
- Transsion (688036 CH): Global No. 4 Smartphone Producer, Revenue Up by 88% YoY in 1Q24
- Tech Supply Chain Tracker (13-Jun-2024): Sony aims for profit in car camera biz by 2026.
- A8 Media (800 HK): A 163% Premium to Undisturbed? Yes Please.
- i-mobile Co Ltd (6535 JP): Q3 FY07/24 flash update
A8 New Media (800 HK): A Scheme with a 162% Takeover Premium
- A8 New Media (800 HK) disclosed a Cayman scheme privatisation offer from Mr Liu Xiaosong (Founder, Chairman, CEO) at HK$0.36 per share, a 162.8% premium to the last close price.
- The massive premium is unsurprising, as A8’s EV has been negative since April 2023 due to headwinds from the weak Chinese leasing sector and uncertainty about cash use.
- The high takeover premium, no shareholder holding a blocking stake, and low AGM minority participation rate point to a done deal. However, this is a small-cap illiquid stock.
Proposed Merger Between Rebellions and Sapeon – To Challenge Nvidia
- On 12 June, SK Telecom (017670 KS) confirmed that its affiliate Sapeon plans to merge with its competitor Rebellions by end of this year.
- Sapeon and Rebellions’ largest global competitor is Nvidia. A key aim of the merger is to challenge Nvidia and try to take away its global dominance in AI chips.
- If the combined Sapeon and Rebellion can take away just 1% market share resulting in 1% of Nvidia’s market cap, this would suggest valuation of US$31 billion.
Transsion (688036 CH): Global No. 4 Smartphone Producer, Revenue Up by 88% YoY in 1Q24
- Transsion is the global No. 4 largest smartphone producer according to IDC.
- In 1Q24, shipments increased by 34% YoY and revenue increased by 88% YoY.
- We see the stock’s upside at 17% and the price target at RMB100.00.
Tech Supply Chain Tracker (13-Jun-2024): Sony aims for profit in car camera biz by 2026.
- Sony plans to achieve profitability in car camera business by 2026, aiming for 6x growth in the sector.
- Samsung cancels anniversary events to focus on new management plan in response to crisis within the company.
- Taiwan’s passive component makers like Yageo and Ample flourish in AI boom, indicating growth potential in semiconductor industry.
A8 Media (800 HK): A 163% Premium to Undisturbed? Yes Please.
- Following a suspension on the 28th May, property rental play A8 New Media (800 HK) has now announced an Offer by way of a Scheme from chairman/founder/major shareholder Liu Xiaosong.
- The Cancellation price is $0.36, a whopping 162.77% to last close. The price is final.
- This is a done deal. But A8 is an illiquid micro cap.
i-mobile Co Ltd (6535 JP): Q3 FY07/24 flash update
- i-mobile reported cumulative Q3 FY07/24 revenue of JPY16.3bn (+14.3% YoY), operating profit of JPY3.7bn (+9.2% YoY).
- Consumer Service business cumulative Q3 revenue was JPY14.2bn (+19.4% YoY), with segment profit of JPY3.5bn (+18.9% YoY).
- Online Advertising business cumulative Q3 revenue was JPY2.1bn (-11.8% YoY), with segment profit of JPY316mn (-39.3% YoY).
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