In today’s briefing:
- Arteria Networks (4423) Tender Launches 5 July.
- PhilEnergy IPO Bookbuilding Results Analysis
- At the Core Lies Why Anything Named Samsung Deserves a Discount
- SSE50 Index Rebalance Preview: Potential Adds Powering Higher
- Fadu IPO Valuation Analysis
- IAC Inc.: 4 Ways In Which This Company Is Shaping Its Long-Term Growth Prospects! – Key Drivers
Arteria Networks (4423) Tender Launches 5 July.
- Seven weeks ago, Marubeni Corp (8002 JP) and Secom Co Ltd (9735 JP) announced a joint deal to acquire the rest of ARTERIA Networks Corp (4423 JP).
- As I wrote in the previous piece, the premium was good, but the price was not great. The Board rejected the price, then agreed when the bidders wouldn’t go further.
- Now we have a deal and the Tender Offer starts 5 July. It was cheap to start. It’s still too cheap. But this one is tough to block.
PhilEnergy IPO Bookbuilding Results Analysis
- PhilEnergy’s IPO price has been determined a 34,000 won. The company will raise 95.6 billion won in this IPO offering.
- A total of 1,955 institutional investors participated in the IPO offering with a competition demand ratio of 1,812 to 1.
- Given the exceptional book building results, it is highly likely that PhilEnergy will have a strong price performance once it starts trading.
At the Core Lies Why Anything Named Samsung Deserves a Discount
- Samsung Electronics (005930 KS) has been a nice outperformer relative to SK Hynix (000660 KS) and Micron Technology (MU US) due to valuation, tech merit and exposure to AI
- For cyclical stocks, no matter defensive vs. peers, does it make more sense to play the pure plays?
- On the recent settlement between Elliott and Samsung C&T (028260 KS) , there was a secret payment made to just Elliott. What about the other minority shareholders?!
SSE50 Index Rebalance Preview: Potential Adds Powering Higher
- Two thirds of the way through the review period, we see 10 potential adds/8 potential deletes in December. However, there can be a maximum of 5 changes at a review.
- We estimate a one-way turnover of 5.8% at the December rebalance leading to a one-way trade of CNY 4.67bn. Index arb balances could increase the impact on the stocks.
- The potential adds have outperformed the potential deletes over the last six months and there has been renewed outperformance over the last month.
Fadu IPO Valuation Analysis
- Our base case valuation analysis suggests implied market cap of 2.2 trillion won or 43,676 won per share, representing 41% higher than the high end of the IPO price range.
- At the high end of our valuation sensitivity analysis, it suggests implied price of 62,893 won per share, representing 103% higher than the high end of the IPO price range.
- Fadu is a system semiconductor fabless company specializing in data centers, which is experiencing a strong growth due to higher data demand for cloud, AI/Big data, 5G, and autonomous driving.
IAC Inc.: 4 Ways In Which This Company Is Shaping Its Long-Term Growth Prospects! – Key Drivers
- IAC managed to exceed analyst expectations in terms of revenue as well as earnings.
- The company’s emphasis on core fundamentals and operational efficiency has yielded profitability and improved customer experiences.
- IAC is also focused on driving revenue growth through investments in customer experience and strategic revenue reallocation.
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