Daily Brief TMT/Internet: L&F Co Ltd, Kunlun Tech , SiteMinder, Travelsky Technology Ltd H, GDS Holdings , Cpi Card Group, Kinatico , Eventbrite Inc, Synaptics Inc and more

• L&F Co Ltd (066970 KS) will move from the KOSDAQ Market to the KOSPI Market on 29 January. That means KOSDAQ 150 Index deletion at the close on 26 January.
• As the highest ranked non-constituent from the Information Technology sector at the December rebalance, Seronics Co Ltd (042600 KS) will be added to the index.
• Short interest on L&F Co (066970 KS) is 1.8m shares (KRW 364bn; 4.98% of shares outstanding; 7.24% of float; 2.4x ADV). There could be recalls from passives and forced covering.

• With three-quarters of the review period nearly complete, we forecast 50 changes (the maximum permitted) for the CSI 500 Index at the close on 14 June.
• There is a big sector skew in the potential changes. We estimate a one-way turnover of 9.1% at the June rebalance resulting in a one-way trade of CNY 5.34bn.
• The potential adds and deletes and the CSI 500 Index have performed in line since August and the current setup appears attractive.

• In this insight, we take a look at the potential index changes for ASX 300, 200, 100, 50, and 20 in the run-up to the March 2024 index review.
• The conclusion of the Costa Group Holdings (CGC AU) M&A deal could trigger an index change in February 2024.
• Separately, there could be a “surprise” index change in March 2024 caused by a long-term trading suspension. 

• Travelsky Technology Ltd H (696 HK) has been the predictable play for a rebound in domestic tourism in China.
• 1H23 result did not show anything that should alert investors to the changes in business practices.
• The recent profit warning disclosure has alerted investors that there is something else beyond the usual.

• The China equity markets have continued to slide and the lower market caps and free float market caps will see a lot of stocks deleted from passive portfolios in February.
• We currently estimate selling of around US$1.66bn across 74 stocks listed on the mainland, in HK and the U.S., and that number could increase as markets continue to underperform.
• The potential deletes have dropped a lot over the last 4 months and there has been a marked underperformance versus the headline indices over the last month.

Key points (machine generated)

• CPI Card Group’s debt-to-equity ratio is around 4.5x, higher than ideal but manageable with their cash flow generation.
• The smallcap downturn has affected the stock negatively, but the current valuation of CPI Card Group is deemed attractive, with a 20% free cash flow yield and 4.6x EV/EBITDA.
• With strong cash flow, reasonable debt management, and potential share buybacks, it is expected that the stock will increase in value when market sentiment improves.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Kinatico Ltd (ASX:KYP) is a ‘Know Your People’ regtech company providing workforce compliance monitoring and management technology and services.
• KYP has reported a 6% year-on-year increase in Q2 FY24 revenue to $7.1m, and a 145% year-on-year increase in SaaS revenue to $2.4m.
• SaaS revenue accounted for 33% of total revenue for the quarter, compared to 14% in Q2 FY23. 

• EB is leveraging its balance sheet to solidify the top position as an event marketplace. 
• The pricing plan at EB is not much different than its peers and we view it as more of EB catching up to the rest of the other event sites.
• The pricing model should become a source of revenue and adjusted EBITDA growth. EB’s competitors have different pricing plans that can make it costly for event creators

• This is our first report on intuitive human interface solutions provider, Synaptics Incorporated.
• In its First Quarter 2024 Financial Results , the management addressed the current standing of the company and projected future expectations.
• Despite the challenging market conditions, Synaptics remains optimistic about its business and expects to see improvements in 2024.