In today’s briefing:
- Alibaba (9988 HK): Value Proposition Looks Clean
- TSMC (2330.TT; TSM.US): Foundry Market Forecast in 2030F; TSMC Had Developed The 2nm Nanosheet.
- China Consumption Weekly (26 Feb 2024): Alibaba, Xpeng, HiPhi, Tuhu Car, Luckin
- Appier (4180) | A Volatile Stock Despite Solid SaaS Metrics
- Elan Microelectronics: 50% YoY Growth Feasible for 2024E; Now a Pricey Consensus Long
- KYEC (2449.TT): 2024F Could Be a Prosperous Year Although 4Q23 Saw a 5% Decline QoQ.
- Full Report – Carta Holdings (3688 JP)
- ATNI: The Free Cash Flow Story Begins
- Kinatico Ltd – H1 Result In-Line, SaaS Now 30%+ of Revenue
- H1 result in-line, SaaS now 30%+ of revenue
Alibaba (9988 HK): Value Proposition Looks Clean
- It is well-known that Alibaba (ADR) (BABA US) is cheap (9x FY24 PE, fiscal year ending March; 8x FY23 free cash flow; net cash 25% of market cap).
- Taking into account all of the major moving parts, I believe Alibaba can now be categorized as a good value stock.
- Shareholder returns through buyback and dividend, minus stock-based compensation in 2023 calendar year equal to around 5% yield.
TSMC (2330.TT; TSM.US): Foundry Market Forecast in 2030F; TSMC Had Developed The 2nm Nanosheet.
- TSMC expects the foundry, semiconductor, electronics, industrial technology, and global GDP to be $0.25 trillion, $1 trillion, $3 trillion, $12 trillion, and $145 trillion, respectively, in 2030F
- Transistor technology is constantly evolving, and FinFET architecture will be followed by Nanosheet and others.
- In the transition, the automotive market belongs to IDM companies, but the utility of ADAS (Advanced Driver Assistance Systems) could fall under Foundry territory.
China Consumption Weekly (26 Feb 2024): Alibaba, Xpeng, HiPhi, Tuhu Car, Luckin
- Alibaba plans to provide operational services to third-party sales broadcasters.
- Xpeng will hire 4,000 employees and raise research budget by 40%.
- Tuhu Car expected that its net profit will turn positive in 2023.
Appier (4180) | A Volatile Stock Despite Solid SaaS Metrics
- Post FY23 results in mid-February, Appier’s stock exhibited significant volatility, despite robust financial performance.
- We believe that Appier is a beneficiary of continued growth in ecommerce and increasing ubiquity of AI solutions for marketing.
- Appier trades at a significant discount to global peers and domestic SaaS companies, suggesting significant upside
Elan Microelectronics: 50% YoY Growth Feasible for 2024E; Now a Pricey Consensus Long
- Elan Guides For Strong Revenue Growth Ahead and High Margins to Continue
- AI PCs Only Expected to Drive Significant Volume by 2025E; Major AI Opportunity for Touch Sensors
- Elan Can Benefit From Rising Consensus Forecasts But is Pricey — We Wouldn’t Chase the Rally But Also Don’t Want to Short It
KYEC (2449.TT): 2024F Could Be a Prosperous Year Although 4Q23 Saw a 5% Decline QoQ.
- It was declined by 5% for 2023 verses 2022, which was not a surprise because the overall sentiment should be dim in 2023.
- For the coming 1Q24F, it could be a bit downside by 5%, assumed as a normal seasonality.
- AI demand remain the biggest driving force, and all eyes are on the CoWoS.
Full Report – Carta Holdings (3688 JP)
- CARTA HD strives to become “The Evolution Factory” and operates mainly in the digital marketing field.
- The company was established in January 2019 through the merger of the former VOYAGE Group, which had expanded earnings by creating a series of new businesses centered on the ad tech domain, and the former Cyber Communications, the largest media rep firm in Japan.
- CARTA HD holds a 3.9% share in the Japanese online advertising market.
ATNI: The Free Cash Flow Story Begins
- ATNI reiterated its entry into the era of generating free cash flow after spending the last several years building out its fiber network
- ATNI reported fourth quarter results that showed services revenue rising sequentially. An increase in subscribers is the source for the success
- To grow revenue and generate free cash flow, ATNI has expanded its broadband network to approximately 769 thousand homes passed with 367 thousand of these homes having high-speed data
Kinatico Ltd – H1 Result In-Line, SaaS Now 30%+ of Revenue
- Kinatico Ltd (ASX:KYP) is a ‘Know Your People’ regtech company providing workforce compliance monitoring and management technology and services.
- KYP has reported H1 FY24 NPAT of $0.357m, a $1.13m turnaround on the previous corresponding period (pcp), and the company’s best-ever result.
- The gross margin and EBITDA margin hit record levels of 67.7% and 13.4% respectively. The result was above our gross margin forecast but in line with our EBITDA estimate.
H1 result in-line, SaaS now 30%+ of revenue
- Kinatico Ltd (ASX:KYP) is a ‘Know Your People’ regtech company providing workforce compliance monitoring and management technology and services.
- KYP has reported H1 FY24 NPAT of $0.357m, a $1.13m turnaround on the previous corresponding period (pcp), and the company’s best-ever result.
- The gross margin and EBITDA margin hit record levels of 67.7% and 13.4% respectively.
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