In today’s briefing:
- Screening For The Next Douyu (DOYU US)
- S&P 500 / S&P 1500: Deriving Forecasts & First Prediction for September
- Digital Arts: Decision to Deconsolidate DAC Business – A Positive Move
- Tech Supply Chain Tracker (05-Jul-2024): S. Korea boosts EDA competitiveness.
Screening For The Next Douyu (DOYU US)
- In a particularly altruistic move, live-streaming game platform play Douyu International Holdings (DOYU US) announced a special cash dividend of US$9.76/share, vs. a last price of US$12.59.
- The cash outlay is roughly US$308mn, and Douyu had cash (as at 1Q24) of US$936.6mn. And no debt. Founder/chairman/CEO Shaojie Chen (17.2% shareholder) will pocket a tidy ~US$53mn.
- An outlier; or should we expect more of the same for other cash-rich US-listed China plays?
S&P 500 / S&P 1500: Deriving Forecasts & First Prediction for September
- Index Committee’s discretion decreases the predictability of index changes. Even when a company passes all eligibility criteria and thresholds, it might still not be selected.
- Understanding triggers for index changes, types of additions/deletions and selection patterns, narrows down the pool of candidates and increases conviction of forecasts.
- Dell Technologies (DELL US) is currently the main candidate to be added by transition to the S&P 500 in September 2024 Quarterly Rebalance.
Digital Arts: Decision to Deconsolidate DAC Business – A Positive Move
- Digital Arts (2326 JP) , based in Japan offers internet security software and appliances globally. The company also provides consulting services related to information security.
- The company’s share price has moved up by more than 30% over the last 30-days driven by DA’s decision to deconsolidate its DAC business.
- Given the high-cost nature, we welcome Digital Arts’ move to deconsolidate the DAC business as it should help improve the company’s profitability.
Tech Supply Chain Tracker (05-Jul-2024): S. Korea boosts EDA competitiveness.
- South Korea is prioritizing enhancing its EDA competitiveness to stay ahead in the technological race.
- China is focusing on consolidating promising chip firms while doubling the terminations of IPOs to control the market.
- Commodity DRAM and NAND chip prices are stalling due to slow demand recovery, affecting Taiwanese companies and PanelSemi’s development of mini LEDs. Vietnam PM strengthens South Korea relations and secures investments in display production and clean energy. Taiwan is aiming to lead in floating wind technology with a projected global investment of EUR250 billion by 2035.
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