In today’s briefing:
- Chindata (CD US): Bain’s Binding Proposal at US$8.60 Per ADS
- Sep 2023 Nikkei 225 Review – Not An Easy Rebal 🤨
- ECM Weekly (13th August 2023) – Zomato, TVS Supply Chain, Suzlon Energy, Star Asia Investment
- PC Monitor: Asustek Preparing for AI PC Upgrade Wave, Volume Sales in 3Q24
- Juniper Networks: Unlocking the Power of AI-Powered Software Automation! – Major Drivers
- Himax: Sees Rebound in China Automotive Display Demand, Expects Dominant Market Share to Continue
- Roku Inc.: What Strategies Are Making It the Top-selling TV OS? – Financial Forecasts
Chindata (CD US): Bain’s Binding Proposal at US$8.60 Per ADS
- Chindata Group (CD US) has entered a definite agreement with Bain Capital at US$8.60 per ADS, 7.5% higher than its previous offer of US$8.00 per ADS.
- Completion is conditional on shareholder approval, dissenting shareholders representing less than 12% of outstanding shares and any applicable regulatory approvals. The completion conditions should be met.
- CMC’s offer, while higher, does not meet the “superior proposal” criterion. At the last close price and December-end completion, the gross and annualised spread is 6.0% and 16.6%, respectively.
Sep 2023 Nikkei 225 Review – Not An Easy Rebal 🤨
- The data for the Nikkei 225 Rebalance is cemented as of 31 July 2023. Lasertec Corp (6920 JP) looks like a shoo-in. The DELETEs are obvious too.
- Fast Retailing (9983 JP) doesn’t get a cap (yet). But the other ADDs are a real question. It is a matter of interpreting the methodology and qualitative aspects. And FLOAT.
- One way, Socionext (6526) and Mercari (4385) are ADDs. Another way, it looks like Nitori Holdings (9843) and ZOZO Inc (3092) or Ryohin Keikaku (7453). FLOAT IS A PROBLEM ANYWAY.
ECM Weekly (13th August 2023) – Zomato, TVS Supply Chain, Suzlon Energy, Star Asia Investment
- Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
- In India, TVS Supply Chain Solutions (1915741D IN) launched its IPO bookbuild. Suzlon Energy (SUEL IN) had also launched its well-flagged INR20bn (US$240m) QIP.
- While Japan saw Star Asia Investment (3468 JP) launching its primary follow-on for acquiring properties as well.
PC Monitor: Asustek Preparing for AI PC Upgrade Wave, Volume Sales in 3Q24
- Asustek and Acer recently reported 2Q23 results with both companies showing a rebound in margins and normalized inventory levels. The cycle trough is clearly past.
- Asustek expects to grow its server product revenue by 500% by 2027 and is also developing AI PCs that could generate a significant sales volume by 3Q24.
- The latest results and comments not just make a coming PC up-cycle clear, but also imply that it could be stronger than previous cycles thanks to AI PCs.
Juniper Networks: Unlocking the Power of AI-Powered Software Automation! – Major Drivers
- Juniper Networks delivered an all-around beat in the previous quarter, achieving total revenue growth of 13% year-over-year.
- Despite some challenges in the cloud and service provider segments due to the timing of projects and digestion of prior purchases, Juniper’s Enterprise business showed remarkable momentum, accounting for over 45% of total revenue and posting nearly 40% year-over-year growth.
- While revenue growth is expected to face some pressure soon due to macro uncertainties, Juniper remains optimistic about its long-term growth prospects, especially in the cloud and SP Metro opportunities.
Himax: Sees Rebound in China Automotive Display Demand, Expects Dominant Market Share to Continue
- Himax reported 2Q23 results — Showing a previously-guided margin drop due to the one-off impact of the exit from long-term capacity commitments.
- Positive developments — Inventory levels improved further, China’s automotive industry demand is rebounding from lows, and the company should maintain its already-dominant market share in automotive display drivers.
- Long Himax — Himax continues to represent structural exposure to dramatically increasing display content in vehicles. The stock’s previous all-time high is double the current level.
Roku Inc.: What Strategies Are Making It the Top-selling TV OS? – Financial Forecasts
- Roku Inc. managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.
- The company demonstrated growth in scale, engagement, and platform revenue.
- Roku’s TV streaming platform and its innovation and scale continue to attract users, advertisers, streaming services, and content owners.
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