In today’s briefing:
- Actionable Tactical Trade: Long China Mobile H-Share 941HK on Strong Southbound Momentum & A/H Prem.
- [Tencent (700 HK, BUY, TP HK$433) Earnings Preview]: Still a BUY, but Not Our Top Pick
- Vivendi: Leadership Position in Media, Entertainment, Culture, and Communication
- Core Business Still Strong with 2023 Off to a Good Start
- Updates on PAGS, YI, SBSAA
- OLO’s Dilemma… (part 2)
- Analog Devices Inc.: The Next Big Thing in Mission-Critical Equipment – Key Drivers
- Skyworks Solutions Inc.: Working Towards The Future of Connectivity and Mobility – Key Drivers
Actionable Tactical Trade: Long China Mobile H-Share 941HK on Strong Southbound Momentum & A/H Prem.
- This insight is a short note that aims to ride on short term momentum for the stock
- Since April, southbound trade contributes to 72% of China Mobile H-share turnover. So, southbound trade is the major share driver
- For entire market, A-share is trading at 40% premium to H-share. For China mobile, the A/H premium is currently at 80%. Strong upside for H-share if premium is to narrow
[Tencent (700 HK, BUY, TP HK$433) Earnings Preview]: Still a BUY, but Not Our Top Pick
- We estimate that Tencent 1Q23’s rev./non-IFRS net income beat cons. by 3.6%/4.5%. We forecast that VAS/ads/others will have 6.5%/15.3% /17.6% YoY growth in 1Q23.
- We maintain BUY rating for Tencent because of 1) video account, especially the rapid growth of Wechat Beans (微信豆); and 2) recovery of ads revenue from Ecommerce and gaming.
- We remove Tencent from our top buy ideas because: 1) current consensus has been high; 2) lack of hit title in upcoming pipeline; and 3) launch of DNF casts shadow
Vivendi: Leadership Position in Media, Entertainment, Culture, and Communication
- For 2022, Vivendi reported a solid set of results as both revenues and EBITA grew strongly despite the challenging market environment
- For 2023, positive momentum is expected to be sustained, as management stays confident in the growth prospects.
- Underlying market growing close 4.6% CAGR to 2026. Solid growth prospects for the Company
Core Business Still Strong with 2023 Off to a Good Start
- Results recap. EVmo reported record revenues of $12.6 million, up 23% from 2021, on a growing vehicle fleet, higher rental rates from new high-demand cars (Tesla Model 3s), and increased sales efforts.
- Based on the existing fleet today, the company expects annual revenues of more than $18 million, which would imply 40% growth over 2022.
- Consolidated net loss was $7.1 million, an almost $8 million improvement from 2021 due to sales growth and cost controls.
Updates on PAGS, YI, SBSAA
- A list of my current active ideas are at the bottom of this write-up.
- I thought I would do a follow up on my Pagseguro (PAGS) article last month, as the write-up was a bit too brief.
- It was mentioned in the comment section that PIX is the reason the stock is cheap and that it will take market share from Credit Cards in Brazil.
OLO’s Dilemma… (part 2)
- Over the past few weeks I’ve done a handful of checks with competitors and customers in the restaurant-tech industry.
- It was by no means exhaustive but definitely insightful.
- Some were first party conversations; others came from 3rd party expert networks, podcasts interviews (there are lots of good ones out there, by the way) and other vendor white-papers etc.
Analog Devices Inc.: The Next Big Thing in Mission-Critical Equipment – Key Drivers
- Despite significant macroeconomic uncertainty in the first quarter of fiscal 2023, Analog Devices managed to deliver an all-around beat.
- These successes were driven by the company’s unwavering commitment to customer collaboration, the rising demand for cutting-edge technologies, and effective operational management.
- We give Analog Devices a ‘Hold’ rating with a revised target price.
Skyworks Solutions Inc.: Working Towards The Future of Connectivity and Mobility – Key Drivers
- Skyworks Solutions reported a strong first-quarter financial results, with sales above the analyst consensus estimate, robust profitability, and significant cash flow performance.
- In addition to the strong financial performance, Skyworks expanded its design win pipeline in a number of emerging high-growth markets.
- Skyworks expanded its expanding technology portfolio across a growing customer base in IoT.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
