In today’s briefing:
- KRX New Deal Index Rebalance Preview: Potential & Close Changes in September
- Tata Technologies IPO: The Bull Case
- AMD Q1’23 Revenue $5.4 Billion, -3.5% QoQ, -9% YoY. Q2 Flat Sequentially.
- Meituan’s Strategies to Compete with Douyin: A Review of the Latest Three
- Focus Media (002027 CH): Light at the End of Tunnel
- Pureprofile Ltd – Guidance for Underlying EBITDA Margin of 11% for FY23
- Harvest Technology Group Limited – Interest Level High and Rising
- Telekom Austria: Is the Significant Discount to Peers Justified?
KRX New Deal Index Rebalance Preview: Potential & Close Changes in September
- The review period for the September rebalance ends on 31 July, the changes will be announced towards end August and implemented at the close of trading on 7 September.
- There are potential changes to some of the indices and then there are close changes that will result in big flows if they eventuate.
- The March rebalance saw some funky moves on the stocks that had big flows and we could see more of that at the September rebalance.
Tata Technologies IPO: The Bull Case
- Tata Technologies (TATATECH IN), the largest India-based ER&D service provider, is seeking to raise up to US$600 million, according to press reports.
- Tata Technologies ranked first among India service providers and third globally among rated service providers for automotive ER&D services, according to Zinnov.
- The key elements of the bull case rest on its automotive leadership positioning, solid performance of the core business, high repeat rates, rising margin and cash generation.
AMD Q1’23 Revenue $5.4 Billion, -3.5% QoQ, -9% YoY. Q2 Flat Sequentially.
- Q1’23 revenues of $5.4 billion, down 3.5% QoQ, down 9% YoY, but marginally ahead of the guided midpoint.
- AMD’s outlook for the current quarter is for revenues of $5.3 billion at the midpoint, basically flat sequentially:
- Data center revenues will grow 50% sequentially in H2’23 compared to H1’23
Meituan’s Strategies to Compete with Douyin: A Review of the Latest Three
- Meituan has recently implemented three strategies to compete with Douyin: a low-price strategy, the addition of more video/live streaming content, and a management reorganization.
- The low-price strategy has already shown some promising results, as seen in the slowdown of Douyin’s local service GTV and the number of new merchants joining its platform.
- However, the effectiveness of the other two strategies, particularly Meituan’s push to add more video content, remains unclear.
Focus Media (002027 CH): Light at the End of Tunnel
- Urbanization and brand premiumization are Focus Media’s two long term structural drivers which will keep broadening its audience and advertiser base.
- 1Q23 results end a 5-quarter streak of profit decline and mark the start of new profit cycle. This will usher in a meaningful stock re-rating if history is a guide.
- We expect at least 30% upside by the end of 2023 by applying 25x P/E (still at large discount to last profit cycle) on RMB4.9 billion net profit for 2023.
Pureprofile Ltd – Guidance for Underlying EBITDA Margin of 11% for FY23
- Pureprofile Ltd (ASX:PPL) is a data analytics and consumer insights business underpinned by proprietary technology, servicing business decision makers in brands and media companies as well as market researchers.
- The company has an established position delivering insights to clients across 89 countries and has captured through its panel fully declared, deep consumer profiles, first-party data and insights.
- Pureprofile has delivered a 22% increase in quarterly revenue to $10.3m from its core Data & Insights and SaaS platform businesses. Normalised EBITDA from these businesses increased 121% to $1.0m for the quarter.
Harvest Technology Group Limited – Interest Level High and Rising
- Harvest Technology Group Limited (ASX:HTG) licenses its proprietary video compression and encryption technology for low-bandwidth, high-latency applications needing secure real-time streaming video communication.
- The company delivers solutions for data transfer from anywhere via satellite or congested networks.
- Harvest offers a solution which enables real-time monitoring of remote locations, real-time feedback for field technicians, and secure video conferencing.
Telekom Austria: Is the Significant Discount to Peers Justified?
- The Company has solid mid-single-digit top-line growth and has one of the healthiest balance sheets in the sector.
- Telekom Austria announced plans to spin off and list its towers business. We believe this be a positive catalyst to unlock some of the Company’s hidden value.
- Feedback from discussion with the IR included in this investment case
💡 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
