In today’s briefing:
- Meituan (3690 HK): 3Q22, Growth Higher, Loss Close to Zero, 90% Upside
- Bilibili: Earnings Recovery to Continue with Improvement in Mobile Games and Cost Controls
- ATRenew: A Turnaround Story With Material Increase in Profit Margins + Remaining Share Buyback
- NTGR: Routing Thru Investor Day
- Taiwan Tech Weekly: Hon Hai IPhone Plant Recovery, Nanya Slumps, Intel Foundry Potential in 2023
Meituan (3690 HK): 3Q22, Growth Higher, Loss Close to Zero, 90% Upside
- The revenue growth rate accelerated to 28% YoY in 3Q22 versus 16% YoY in 2Q22.
- Operating Loss was close to zero in 3Q22 and we believe it will turn positive in 2023.
- According to price / sales history, we believe the company has an upside of 89% for year end 2023.
Bilibili: Earnings Recovery to Continue with Improvement in Mobile Games and Cost Controls
- Bilibili Inc (BILI US) reported 3Q2022 results Tuesday. 3Q revenue increased 11.3% YoY to RMB5.8bn (vs consensus RMB5.7bn) while operating losses for the quarter dropped to RMB1.8bn vs consensus RMB2.1bn.
- Recovery in mobile games biz alongside aggressive cost cutting measures supported improvement in Bilibili’s profitability during the quarter.
- Pandaily reported that Bilibili is exploring expanding into the SEA region and increased R&D spending could be an indication that plans are underway.
ATRenew: A Turnaround Story With Material Increase in Profit Margins + Remaining Share Buyback
- ATRenew (RERE US) is one of the stocks in China that is starting to look very attractive after a sharp decline in its share price since its IPO.
- ATRenew has achieved noticeable improvements in operations and profitability in the recent quarter.
- Our base case valuation analysis suggests an implied market cap of US$720 million, representing an implied price of US$3.15 per share, representing an upside of 43% from current price.
NTGR: Routing Thru Investor Day
- NTGR held its annual investor day reflecting on the challenges it has incurred within retail and highlighting how consumer demand has remained strong for high-end devices and its 5G hotspot
- NTGR’s stock has been trading at levels valuing the Company near its working capital on fears the business would continue to generate losses
- NTGR’s transition in becoming a super-premium brand started over a year ago, but only in recent quarters has it began to take a bigger role on the consumer
Taiwan Tech Weekly: Hon Hai IPhone Plant Recovery, Nanya Slumps, Intel Foundry Potential in 2023
- Hon Hai’s Zhengzhou iPhone plant to return to full production? Shares pop
- Nanya Tech shares worst performers last week – We remain near-term negative
- Intel & TSMC trade flattish last week — Intel currently at UBS’s TMT conference
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