In today’s briefing:
- Kakao Pay: Downsized Rights Offering of Kakao Pay Securities & Potential Selling by Alipay
- KOSDAQ150 Index Rebalance Preview: Moving in the Right Direction
- Thai Online Learning Platform Globish Closes US$2.5M Series A+
- Ambarella Inc: Major Drivers
- Corning Inc: Facility Expansion & Other Drivers
- Introducing: Quarterly Market Report
- ADEA & XPER: The Spin and Price Targets
- The Trade Desk: The First-Party Data Playbook & Other Drivers
- Xerox Corp: Acquisition Of Go Inspire & Other Drivers
Kakao Pay: Downsized Rights Offering of Kakao Pay Securities & Potential Selling by Alipay
- The lack of minority shareholders participation in Kakao Pay Securities rights offering is likely to be viewed negatively by many investors since Kakao Pay may need to inject more capital.
- On 8 June 2022, Alipay sold 5 million shares of Kakao Pay and Alipay put a lockup on its remaining 46 million shares in Kakao Pay for another 120 days.
- All in all, we continue to have a Negative view of Kakao Pay.
KOSDAQ150 Index Rebalance Preview: Moving in the Right Direction
- With 85% of the review period complete, we see 10 potential changes to the KOSDAQ 150 Index (KOSDQ150 INDEX) at the December rebalance.
- There are a few stocks that are close adds/deletes on market cap and liquidity and could make it into the final list depending on price/volume over the next few weeks.
- The potential adds have outperformed the potential deletes over the last month and pre-positioning could continue till the end of the review period.
Thai Online Learning Platform Globish Closes US$2.5M Series A+
- Globish conducts 300,000 English and Chinese classes for learners comprising 20 per cent students and 80 per cent working-age people
- Thailand’s edutech startup Globish, which provides a live online learning platform, has announced closing its US$2.5 million Series A+ funding round.
- Globish will use the money for expansion into other ASEAN countries. It recently began expanding in Ho Chi Minh City in Vietnam and plans to expand into more markets.
Ambarella Inc: Major Drivers
- Ambarella’s Q2 results were on par with management expectations and surpassed the analyst consensus on Wall Street.
- The company’s revenue was up 2% from the same period last year, but it was down 10% sequentially.
- The company’s blended average selling price surpassed $10 due to the considerable year-over-year growth in CV revenue.
Corning Inc: Facility Expansion & Other Drivers
- Corning delivered a mixed set of quarterly results missing out on market expectations with respect to revenues given the challenging environment.
- Optical communications were the greatest contributor to the growth of this quarter and were a key factor responsible for the company delivering an earnings beat.
- We provide the stock of Corning with a ‘Buy’ rating and a revision in the target price.
Introducing: Quarterly Market Report
- Q3 was a whirlwind dominated by macro volatility, the Merge, and the ongoing fallout from the crypto credit crisis.
- Yet, one relatively under-the-radar trend caught my attention: Binance’s increasingly bold moves to clinch market supremacy.
- On July 8th, Binance eliminated trading fees for 13 BTC trading pairs and shortly after removed fees for ETH-BUSD.
ADEA & XPER: The Spin and Price Targets
- Adeia (ADEA) spun out Xperi Inc. (XPER) to shareholders. We are updating our coverage by downgrading ADEA to Buy Rating from Top Pick, initiating coverage of XPER with Top Pick.
- The separation of the two businesses should allow the markets to appropriately price each stock. This should lead to a higher overall valuation compared to when the companies were together.
- XPER is our Top Pick due to the multiple revenue opportunities from new products over the next 12 months.
The Trade Desk: The First-Party Data Playbook & Other Drivers
- Trade Desk’s revenues have continued to grow over the past quarter and the company gained market share in spite of some macroeconomic uncertainty.
- The worldwide pressure on Google appears to be creating a market opportunity for Trade Desk.
- The company launched its first-party playbook teaching brands to have a self-assessment for companies and their first-party data for the companies to identify their potential steps in the journey of their first-party data.
Xerox Corp: Acquisition Of Go Inspire & Other Drivers
- In spite of macroeconomic challenges, Xerox managed to deliver an earnings beat in the last quarterly result.
- The signings of its content and capture business, including processing, data extraction, and digital mailroom services, grew double digits though the company did miss out on revenues.
- Also, it has launched a worldwide intelligent document process offering to strengthen its content and capture capabilities.
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