In today’s briefing:
- Appier (4180) – Down But Not Out; Shareholder Structure Still The Biggest Risk
- Xiaomi: Massive Layoffs to Rescue Falling Margins
- Grab (GRAB IJ) – Moving Forward on a Number of Fronts
- Thailand SET 50 Dec 22 Rebal: Good Hit Rate, Successful Pre-Event Trade, Unwind Now
- The Attitude Toward Information Disclosure May Make a Further Difference in Stock Valuations
- TIGER (WISE) Secondary Battery ETF Rebalancing in January: Names to Watch
- Doctor Anywhere Acquires SG Healthcare Provider, Nets $38.8m Funding
- Aktivolabs scores US$10M Series A to help populations manage risk of chronic diseases
- Protean EGov Technologies Pre-IPO – A Key Service Provider but Earnings Have Lagged
Appier (4180) – Down But Not Out; Shareholder Structure Still The Biggest Risk
- Appier Group (4180 JP) had been among our picks for TSE Prime promotion and we had recommended positioning for it. That worked. On 8 Dec they announced the promotion.
- The company is now part of TSE Prime which means a TOPIX Inclusion at end-January and an upweight in April. More than 20% of TSE float to buy by end-April.
- Share price performance has not kept pace with potential, and yesterday’s BOJ decision saw a flurry of volume selling (bailing). Pre-IPO holder overhang may be the biggest “risk” here.
Xiaomi: Massive Layoffs to Rescue Falling Margins
- Several news media outlets reported that Xiaomi Corp (1810 HK) has started laying off about 10-15% of its employees across several units of its smartphone and internet services businesses.
- Xiaomi’s margins have come under pressure with entering into the premium smartphones segment which has resulted in aggressive expansion of offline stores.
- The company’s 3Q2022 revenues declined 9.7% YoY as a result of decrease in revenue from all three business segments while margins further dropped compared to 3Q2021.
Grab (GRAB IJ) – Moving Forward on a Number of Fronts
- Our recent update with Grab (GRAB US) management revealed a number of interesting product-led initiatives that will drive future growth and customer retention as well as save on costs.
- Grab (GRAB US) has already seen significant progress on Grab Unlimited given its link to promos plus it is focusing on higher-spending customers to reduce the need for subsidies.
- The company’s valuations look attractive relative to growth and considering it is moving more quickly towards profitability plus it has more than ample cash to make it there.
Thailand SET 50 Dec 22 Rebal: Good Hit Rate, Successful Pre-Event Trade, Unwind Now
- The index changes for the Thailand SET Index (SET INDEX) for the December 2022 Rebalance were announced yesterday (20th December 2022) after the close.
- There will be four ADDs/DELs for the SET 50 index.
- In this insight, we take a closer look at our expectations for index flows and potential trading ideas.
The Attitude Toward Information Disclosure May Make a Further Difference in Stock Valuations
- The less frequently information is disclosed, the greater the impact of single disclosure on stock prices. Fewer quarterly disclosure reduces trading volume, which will have negative impact on stock valuations.
- Companies listed on U.S. market will continue quarterly disclosure, while companies with limited human resources won’t adopt quarterly disclosure. Even within the same sector, companies may adopt different disclosure attitudes.
- Metrical’s analysis shows that the IR factor is highly positively correlated with Tobin’s q. Also, different disclosure stances may emerge depending on the ratio of foreign shareholders.
TIGER (WISE) Secondary Battery ETF Rebalancing in January: Names to Watch
- The key to this rebalancing is the inclusion of WCP, which satisfies the requirements of minimum listing period and secondary battery sales amount.
- As a hedge for the LONG WCP position, we can use Soulbrain and Solus Advanced, whose passive outflow is relatively high among those of a similar size to WCP.
- Among large caps, we should pay attention to L&F, Posco Chemical, and Iljin Materials. However, we should be cautious about approaching them as an active trading target.
Doctor Anywhere Acquires SG Healthcare Provider, Nets $38.8m Funding
- Singapore-headquartered Doctor Anywhere (DA) is set to acquire medical services group Asian Healthcare Specialists (AHS) in a cash deal valued at about S$109 million (US$76.7 million) at an offer price of S$0.188 (US$0.13) per share.
- The healthtech firm has also announced a US$38.8 million series C1 financing round led by Novo Holdings to partly fund the AHS acquisition and accelerate growth.
- According to DA’s financial statements, the company’s revenue hit S$31.9 million in 2021, an over 2.8x growth from the previous year
Aktivolabs scores US$10M Series A to help populations manage risk of chronic diseases
- Singapore-based digital health-science company Aktivolabs has secured US$10 million in a Series A round of investment led by Mitsui & Co, Adaptive Capital Partners, and SEEDS Capital.
- The company will develop the existing algorithm and data-analytics programme to enhance the efficiency and accuracy of predicting, preventing and self-managing chronic disease using digital biomarkers.
- The platform harnesses real-time digital health data elements in a low-touch, cost-effective manner with measurable actuarial and actionable value to life and health insurers.
Protean EGov Technologies Pre-IPO – A Key Service Provider but Earnings Have Lagged
- Protean eGov Technologies (PET) is looking to raise up to US$600m in its upcoming India IPO.
- Protean eGov Technologies (PET) is a key IT-enabled solutions company in India engaged in conceptualizing, developing and executing nationally critical greenfield technology solutions.
- In this note, we look at the company’s past performance.
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