In today’s briefing:
- O2Micro Trading Wide To Terms Ahead Of Shareholder Vote
- China Allows Import of 45 Foreign Video Games Including 7 Korean Games
- Mediatek: We Contacted Management Re: Latest Arm Restrictions, Accumulate
- Chewy Inc.: Initiation of Coverage – Post-Pandemic Recovery & Key Drivers
- Hon Hai: EV Growth Will Come Into Focus in 2023E, Can Hit NT$155 Per Share
- Tencent/Netease: Tencent Behind Smaller Peers in This Year Game Approval
O2Micro Trading Wide To Terms Ahead Of Shareholder Vote
- Back on the 30 September, O2Micro International (OIIM US), an integrated circuits play, announced a definitive privatisation from management at US$5.00/ADS, a 68.9% premium to the undisturbed price.
- An EGM will take place on the 31 January. The Offer requires shareholders representing at least two-thirds of O2Micro vote FOR. 16.9% of shares out are supportive.
- This Offer is expected to close in the 1Q23. The IFA considers the Offer fair.
China Allows Import of 45 Foreign Video Games Including 7 Korean Games
- On 28 December, the Chinese regulators announced that it will allow import of 45 foreign video games in China, among which seven are Korean video games.
- Now that the Chinese authorities have allowed greater imports of foreign games, this will act as a significant positive catalyst to boost share prices of Korean game companies.
- Among the major Korean game companies, we believe that NCsoft and Netmarble are best positioned to capitalize on this catalyst.
Mediatek: We Contacted Management Re: Latest Arm Restrictions, Accumulate
- We contacted Mediatek management in regards to the latest Arm restrictions for China; Mediatek doesn’t expect to be impacted.
- Mediatek’s latest chipsets are competing well against Qualcomm, and its China competition has been stunted by U.S. restrictions in our view.
- We have established our financial model for the company – We believe the shares should be held or accumulated on a value-basis.
Chewy Inc.: Initiation of Coverage – Post-Pandemic Recovery & Key Drivers
- This is our first report on Chewy, the leading pure play e-commerce company in the U.S. in the domain of pet food, pet supplies, and pet healthcare products.
- During the quarter, they announced the growth of CarePlus, their exclusive line of insurance and wellness products with Lemonade-powered plans.
- In this report, we have carried out a fundamental analysis of the historical financial statements of the company.
Hon Hai: EV Growth Will Come Into Focus in 2023E, Can Hit NT$155 Per Share
- Hon Hai’s Zhengzhou problems appear to be easing; Nevertheless, the company is expanding in India and Vietnam regardless.
- We believe the company’s EV platform business and EV milestones will drive the shares in 2023E.
- We have developed a financial model for Hon Hai and are establishing a 12-month price target of NT$155 per share, 55% above current levels. This is higher than the Street.
Tencent/Netease: Tencent Behind Smaller Peers in This Year Game Approval
- China just announced game approval for December batch. The number of games approved is slightly higher than the previous three months.
- Pace of China game approval stays flattish, at a much slower pace than pre-tightening.
- In both December batch, as well as over the past year, we see Tencent behind its smaller peers in terms of receiving game approval.
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