In today’s briefing:
- Alibaba: Daniel Zhang Shown The Door, Jack Ma Back In The Game
- ARM IPO Breakdown
- 4Paradigm IPO: PHIP Updates
- [Week 2] Namaste India 🙏 | Paytm (PAYTM IN) | Withdrawing Disclosures
- Intel Foundry Chief Unveils His Strategy
- HSCEI Index Rebalance Preview: China Unicom (762) Could Replace Zhongsheng (881)
- 4Paradigm IPO: The Bull Case
- Banijay – ESG Report – Lucror Analytics
- MongoDB Inc.: Targeting The Public Sector With MongoDB Atlas! – Major Drivers
- Workday Inc.: 4 Major Factors Driving Their Growth! – Financial Forecasts
Alibaba: Daniel Zhang Shown The Door, Jack Ma Back In The Game
- News broke yesterday that Daniel Zhang is no longer leading Alibaba (ADR) (BABA US)‘s Cloud Business unit.
- The statement from Alibaba’s current chairman, in which he mentions that Zhang would “switch to a different approach and continue to fight alongside us at Alibaba” raises skepticism.
- We also think that the $1.0bn Alibaba committed to a technology fund could be seen as a form of compensation to ensure Daniel Zhang’s silence.
ARM IPO Breakdown
- ARM prices this Wednesday and trades on Thursday.
- I have a lot of thoughts. This will be a great post if you want to learn about ARM.
- So, without further adieu, let’s dive into the most important IP company in the world.
4Paradigm IPO: PHIP Updates
- 4Paradigm is a pioneer and leader in enterprise AI. The company offers platform-centric AI solutions to enterprises that can be deployed on a large scale to support decision making.
- The company’s application for HKEx IPO has been approved and this insight focuses on new data points from the company’s latest PHIP release (dated 07th Sep 2023).
- 4Paradigm (1764934D HK) revenues have continued to expand with significant reduction in operating losses, and we remain positive on the company’s growth prospects.
[Week 2] Namaste India 🙏 | Paytm (PAYTM IN) | Withdrawing Disclosures
- Life is good for the NIFTY Index (NIFTY INDEX) at 20K. Strong domestic sentiment is likely to continue.
- Paytm (PAYTM IN) posted strong operating metrics for August, but this will be the second last update as the company moves to quarterly disclosures for reasons not completely justified.
- Other Ideas discussed include Poonawalla Fincorp (POONAWAL IN) , Dabur India Ltd (DABUR IN) and Landmark Cars along with upcoming IPOs.
Intel Foundry Chief Unveils His Strategy
- It’s a “show me the money” versus a “build it and they will come” approach
- New fab construction will be based solely on customer commitments.
- It’s a curiously cautious plan and highly unlikely to succeed
HSCEI Index Rebalance Preview: China Unicom (762) Could Replace Zhongsheng (881)
- Zhongsheng Group (881 HK) is a potential deletion in December and that could result in China Unicom Hong Kong (762 HK) being added to the index.
- Estimated one-way turnover at the rebalance is 1.36% resulting in a one-way trade of HK$845m. Passives will need to trade over 1x ADV on both stocks.
- There is a very small impact on the fair value of the HSCEI 2023 dividend futures but there will be a larger impact on the dividend futures expiring in 2024.
4Paradigm IPO: The Bull Case
- 4Paradigm (1764934D HK), a leader in enterprise artificial intelligence (AI) in China, is pre-marketing a US$150-200 million HKEx IPO.
- 4Paradigm was the largest player by revenue in China’s platform-centric decision-making AI market with a market share of 22.6% in 2022, according to CIC.
- The bull case rests on the success in increasing key account customer numbers, net dollar expansion rates, improving revenue visibility, strong growth in application development services and reducing loss margin.
Banijay – ESG Report – Lucror Analytics
- Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
- We assess Banijay’s ESG as “Adequate”, in line with its Social and Governance scores, while the Environmental pillar is “Weak”. Controversies are “Immaterial” but Disclosure is “Weak”.
- Banijay creates and distributes content for television and multimedia platforms. It was founded in 2008 by Stephane Courbit, and has since grown through a string of acquisitions.
MongoDB Inc.: Targeting The Public Sector With MongoDB Atlas! – Major Drivers
- MongoDB managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.
- The company exceeded the high end of its projection and achieved revenue of $424 million, a 40% year-over-year increase.
- Atlas sales increased 38% year over year, accounting for 63% of revenue, and is now a product with a run rate of more than $1 billion.
Workday Inc.: 4 Major Factors Driving Their Growth! – Financial Forecasts
- Workday exceeded analyst expectations in terms of revenue and earnings, with a non-GAAP operating margin of 24%, subscription revenue growth of 19%, and a 24-month backlog increase of 23%.
- Early renewals exceeded Workday’s expectations in the quarter and increased the 24-month backlog by nearly 1.5 percentage points.
- Workday’s team anticipates increasing their forecast for subscription revenue for FY 2024 to a new range of $6.57 billion to $6.59 billion, representing an 18% yearly increase.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
