In today’s briefing:
- (Mostly) Asia-Pac Weekly Risk Arb Wrap: Altium, Ansarada, Roland DG, Welbe, Orecorp, Vinda
- HSCEI Index Rebalance: Third Time Unlucky for Zhongsheng (881 HK) As China Unicom (762 HK) In
- Unveiling the Shadows: A Deep Dive into Hindenburg Research’s Exposé on Temenos
- Index Rebalance & ETF Flow Recap: HSI, Screen Holdings, GMRI, SEA EM, MVIS, SET50, JP Positioning
- Cloudflare Inc: Why We See Immense Potential In AI and Vectorize! – Major Drivers
- Coherent Corp.: Launch of New WaveShaper Instruments For U- And Super C-Bands & Other Major Developments
- Alibaba Group: Revitalization of Taobao and Tmall Group
- Roblox Corporation: Cutting-Edge AI Drives Cost Down! Inside Look at How They’re Revolutionizing Game Infrastructure! – Major Drivers
- Snap Inc: Can Its Optimization Of Machine Learning (ML) Models for Advertising Change The Game? – Major Drivers
- Take-Two Interactive Software: The Realization Of The Zynga Acquisition Synergies Is Now Evident & How! – Major Drivers
(Mostly) Asia-Pac Weekly Risk Arb Wrap: Altium, Ansarada, Roland DG, Welbe, Orecorp, Vinda
- I tally 53 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
- Four new deals discussed this week on Smartkarma: Altium Ltd (ALU AU), Ansarada Group Ltd (AND AU), Roland DG Corp (6789 JP), and Welbe Inc (6556 JP).
- Key updates took place on JSR Corp (4185 JP) and Outsourcing Inc (2427 JP)
HSCEI Index Rebalance: Third Time Unlucky for Zhongsheng (881 HK) As China Unicom (762 HK) In
- After narrowly avoiding deletion at the last two index reviews, Zhongsheng Group will be deleted from the HSCEI INDEX in March and replaced with China Unicom (762 HK).
- Zhongsheng Group (881 HK) is down 25% for the year while China Unicom Hong Kong (762 HK) is up 10%.
- There appears to be positioning on both stocks though the increase in shorts and jump in cumulative excess volume on Zhongsheng Group (881 HK) point to higher positioning.
Unveiling the Shadows: A Deep Dive into Hindenburg Research’s Exposé on Temenos
- Diving Deep into Hindenburg Research’s comprehensive report on Temenos triggers a market plunge, alleging accounting manipulations, failed North American expansion, product failures, and troubled European deals.
- Allegations include aggressive revenue recognition, excessive R&D capitalization, difficulty in revenue collection, inflated free cash flow, and executive insiders stock divestment.
- Temenos denies allegations, defending its business integrity, performance, and financial standing, but market volatility persists, emphasizing the need for transparent communication and governance reassurance.
Index Rebalance & ETF Flow Recap: HSI, Screen Holdings, GMRI, SEA EM, MVIS, SET50, JP Positioning
- There were index review announcements for the HSI, HSCEI INDEX, HSTECH, HSCI, HSIII and some global indices last week.
- There are a bunch of review cutoffs early in the coming week followed by announcements for the STAR50 INDEX and STAR100 Index later in the week.
- Another week of outflows for Tracker Fund of Hong Kong (2800 HK) and Hang Seng H Share ETF (2828 HK) as inflows to iShares Emerging Markets ex-China (EMXC US) continue.
Cloudflare Inc: Why We See Immense Potential In AI and Vectorize! – Major Drivers
- Cloudflare Inc.’s latest Q4 2023 earnings highlighted several encouraging developments, underscoring a strong quarter of business growth and an upbeat financial performance, even amid prevailing macroeconomic uncertainties.
- The cloud-based network security company reported total revenues of $362.5 million, a 32% increase year-over-year(YoY).
- The increase was driven significantly by larger customers, with 66% of revenue coming from this group.
Coherent Corp.: Launch of New WaveShaper Instruments For U- And Super C-Bands & Other Major Developments
- Coherent Corp.’s second quarter fiscal 2024 earnings demonstrated signs of gradual improvement in its financial performance, furthering confidence in its outlook for growth and profitability.
- They reported solid sequential growth in both revenue and margins.
- Significant developments from Q2 include increasing gross and operating margins and improving demand across its communications and industrial markets.
Alibaba Group: Revitalization of Taobao and Tmall Group
- Alibaba Group’s latest report for the December Quarter 2023 reflected steady growth despite necessary organizational adjustments.
- The call highlighted an overall focus on a more aggressive approach towards competition to win growth, reigniting the growth in their two core businesses: e-commerce and cloud computing.
- The healthy year-over-year Gross Merchandise Volume (GMV) growth in the e-commerce segment is attributed to the effective execution of user-first and competitive pricing strategies in Taobao and Tmall Group (TTG).
Roblox Corporation: Cutting-Edge AI Drives Cost Down! Inside Look at How They’re Revolutionizing Game Infrastructure! – Major Drivers
- Roblox Corporation exhibited a robust performance in the fourth quarter and full year 2023, in line with the outlook projected at their Investor Day.
- Q4 saw daily active users (DAUs) reaching 71.5 million, a 22% increase, and hours engaged increasing to 15.5 billion hours, a jump of 21% year-on-year.
- Revenue for Q4 alone stood at $749 million, up 30% year-on-year, with bookings hitting $1.1 billion, a bump of 25% year on year.
Snap Inc: Can Its Optimization Of Machine Learning (ML) Models for Advertising Change The Game? – Major Drivers
- Snap Inc.
- achieved significant progress in Q4 2023, driven by its strategic focus on growing its community and enhancing user engagement.
- Monthly active users increased 8% year-over-year, passing the 800 million mark, and daily active users also increased 10% to reach 414 million, which indicates progress towards the company’s goal of 1 billion monthly active users.
Take-Two Interactive Software: The Realization Of The Zynga Acquisition Synergies Is Now Evident & How! – Major Drivers
- Take-Two Interactive Software, Inc.
- posted robust results for Q3 FY2024, led by robust performances from Grand Theft Auto V, Grand Theft Auto Online, the Red Dead Redemption series, and Zynga’s in-app purchases.
- Net bookings reached $1.3 billion for the quarter.
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