In today’s briefing:
- Excelpoint’s Scheme Meeting on 10 August, IFA’s Opinion
- Excelpoint Tech (EXLP SP): Scheme Doc Out. 10th August Shareholder Meeting
- DTAC : Better 2H22 Outlook from Tourism Recovery
- ATEN: US Dollar Factor
Excelpoint’s Scheme Meeting on 10 August, IFA’s Opinion
- Unsurprisingly, the independent financial advisor (IFA) considers WT Microelectronics (3036 TT)‘s S$1.93 offer for Excelpoint Technology (EXLP SP) to be fair and reasonable. We think that IFA’s valuation approach is sound.
- The key condition is approval from shareholders and regulatory authorities (Taiwan pending). The scheme meeting is scheduled for 3:00 pm on 10 August.
- We continue to think that offer is attractive. At the current price and for the 15 September payment date, the gross and annualised spread is 0.5% and 3.1%, respectively.
Excelpoint Tech (EXLP SP): Scheme Doc Out. 10th August Shareholder Meeting
- On the 13 April, WT Microelectronics (3036 TT) entered into an agreement to acquire electronic component distributor Excelpoint Technology (EXLP SP) by way of a Scheme.
- The cash consideration of S$1.93/share was a 7.8% premium to last close, but a 21.4% premium to the undisturbed price.
- The Scheme Doc is out. The Scheme Meeting will be held on the 10th August. The IFA considers the terms to be fair. Settlement is expected by the 15th September.
DTAC : Better 2H22 Outlook from Tourism Recovery
- We maintain our HOLD rating and TP of Bt47.60 based on DTAC’s tender offer price. Conference call came with negative tone, as management lowered its guidance on core service revenue
- 2Q22 core profit was below expectation 2Q22 net profit was at Bt1bn (-34% YoY, +38% QoQ), growing QoQ due to a one-time Bt1bn deductible granted by the NBTC
- Excluding extraordinary items, 2Q22 core profit should be at Bt573m, 33% below our forecast, declining both QoQ and YoY due to losses in subsidizing handset sales to attract subscribers.
ATEN: US Dollar Factor
- The recent strength in the Dollar is likely to result in second half revenue ending up lower than anticipated
- ATEN generated 60% of its revenue in 2021 from outside the USA. The strength in the US Dollar is likely to result in revenue growing at a slower pace
- Our new estimates reflect the impact of a stronger Dollar on revenue and expenses. We are currently not expecting demand softness to push results lower
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