In today’s briefing:
- Appier (4180) | It’s Doubled, so What’s Next
- JF Wealth Holdings IPO – Can Get Similar Exposure at Cheaper Valuations
- Mathpresso: Google Backed AI-Based Math Problem Solver
- Nitro Software Backs Potentia’s Offer
- Baidu Inc.: Ernie Bot As An Aftermath Of The ChatGPT Effect? Check Out The Key Drivers
- Alibaba Group Holding Limited: Major Drivers
- Bilibili (Bili Us): Further Downside Risks Ahead
- Adobe Systems: Surprisingly Resilient
- Bilibili (9626 HK): 4Q22, Not Really Weak Quarter, But Transition for Dropping Games
- [Weibo (WB US) Earnings Review]: Maintain BUY for Ads Recovery in Coming Quarters
Appier (4180) | It’s Doubled, so What’s Next
- ChatGPT has focused the investment community on the potential of AI to drive business performance and investment returns.
- Forbes picked Adobe as its top AI pick in 2023. We pick Appier, which is a faster-growing alternative in the digital marketing space.
- Appier’s revenue grew by over 50% last year and unlike many SaaS companies, it is profitable.
JF Wealth Holdings IPO – Can Get Similar Exposure at Cheaper Valuations
- JF Wealth Holdings (9636 HK) is looking to raise US$143m in its Hong Kong IPO.
- JF Wealth (JFW) is an online investment decision-making solution provider in China, focusing on the online investor content services market.
- In this note, we discuss our earnings estimates, and thoughts on valuation.
Mathpresso: Google Backed AI-Based Math Problem Solver
- Mathpresso (Qanda app) uses AI technology to provide homework assistance for math problems.
- As of February 2023, the Qanda app solved 4.7 billion math problems. The Qanda app is available in numerous languages including Korean, English, Spanish, Japanese, Vietnamese, Indonesian and Thai.
- The company has received $122 million in funding since the inception of the company. Major investors in Mathpresso include Google, Softbank, Smilegate Investment, Legend Holdings, and GGV Capital.
Nitro Software Backs Potentia’s Offer
- As expected, Nitro Software Ltd (NTO AU)‘s board has unanimously backed Potentia’s three-tiered revised Offer.
- On the 23rd of February, Potentia bumped with a $2.17/share unconditional Offer, increasing to $2.20 if they get to 75% interest, and $2.25 if ≥25% tendering opt for scrip.
- Where does this leave Alludo? Nitro reckons Alludo can’t raise their offer because of ASIC’s Truth In Takeovers policy. But Alludo do pocket the A$5mn break fee for their troubles.
Baidu Inc.: Ernie Bot As An Aftermath Of The ChatGPT Effect? Check Out The Key Drivers
- Baidu managed to deliver an all-around in the last quarter beat despite the fact that its financial performance was impacted by a challenging environment because of a rapid rise in COVID-19 cases as well as its impact on the broader economy.
- Both feeds distributed through the Baidu app and mobile search queries continued experiencing double-digit growth in the quarter.
- Baidu is expected to launch Ernie Bot, its new conversational AI bot, powered by its latest in-house large language models, to counter ChatGPT.
Alibaba Group Holding Limited: Major Drivers
- Alibaba managed to deliver an all-around beat despite experiencing significant challenges because of the rapid change in the Covid situation.
- The company delivered double-digit growth in its free cash flow and adjusted EBITA through operating efficiency and cost optimization.
- The strong net cash position of Alibaba is supported by its healthy cash flow generation.
Bilibili (Bili Us): Further Downside Risks Ahead
- BILI’s 4Q results missed expectations across key metrics from revenue and MAU growth to guidance for 2023
- The results suggest fast growth will not return in 2023 and an uncertain road to breakeven by 2024.
- Reiterate our bearish view on the stock and see further downside risks ahead.
Adobe Systems: Surprisingly Resilient
- 4QFY22 results in-line with guidance and expectations; guidance for FY23 lower
- Growth outlook while weakening, is surprisingly stronger-than-expected
- Share price unlikely to move up materially due to overhang from Figma acquisition; but valuations seem fair given growth is holding up; fair value (FV) rises to USD365
Bilibili (9626 HK): 4Q22, Not Really Weak Quarter, But Transition for Dropping Games
- The fourth quarter looks like a weak quarter according to the growth and the loss.
- However, deducting the termination cost for game studios, we believe the financials will be promising in 2023.
- We believe the stock has an upside of 19% for the yearend 2023.
[Weibo (WB US) Earnings Review]: Maintain BUY for Ads Recovery in Coming Quarters
- Weibo’s 4Q22 top line was in line with our est., and non-GAAP net income beat our est./cons. by 34%/46%, due to reverse of a contingent payment agreement with Jiamian Tech.
- While we raise its revenue forecast in 2023, we also expect its costs and expenses to rebound due to the recovery of offline promotion events.
- Maintain BUY and TP unchanged, which implies 13X PE in 2023.
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