In today’s briefing:
- Pinduoduo (PDD US): Spectacular 3Q, Tough Outlook
- Expect Bigtincan To Reject SQN’s Proposal
- ASEAN Utilities: From Tap To Socket
- STOXX Europe 600 Dec 22 Rebal: Final Changes and Historical Performance Analysis
- When Will Samsung Life Insurance Be Forced to Sell Its Stake in Samsung Electronics by the Govt?
Pinduoduo (PDD US): Spectacular 3Q, Tough Outlook
- PDD’s spectacular 3Q results will prove unsustainable based on our assessments of its core markets and deep-dive benchmark analysis of growth trajectory of PDD and Alibaba, using GMV as scale.
- We see earnings risk going into 2023 due to well-penetrated wallet share of core user base, deflating growth drivers and ramp-up of investments.
- In the long term, inevitable multiple compression also renders the risk-return payoff of this US$100bn company mediocre, even under blue-sky growth forecasts. Prefer Alibaba over PDD.
Expect Bigtincan To Reject SQN’s Proposal
- Software provider Bigtincan Holdings Ltd (BTH AU) has announced an indicative proposal, by way of Scheme, from PE outfit SQN Investors at A$0.80/share, a 17.6% premium to last close.
- Due diligence has not yet been afforded. SQN currently holds a 13.6% stake.
- BTH also highlighted it has had preliminary discussions with other interested parties. Expect BTH’s board not to engage with SQN at this price.
ASEAN Utilities: From Tap To Socket
- This insight covers 68 ASEAN utilities, each boasting a market cap greater than US$500mn.
- Countries covered include Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.
- Intouch Holdings (INTUCH TB) remains highly elevated, and is a short against Advanced Info Service (ADVANC TB), and perhaps with some Singtel (ST SP).
STOXX Europe 600 Dec 22 Rebal: Final Changes and Historical Performance Analysis
- The December 2022 index changes for the STOXX Benchmark Indices were announced yesterday.
- There will be 6 ADDs and 6 DELs for the STOXX Europe 600 Index and 3 ADDs and 1 DEL for the EURO STOXX Index in December 2022.
- In this insight, we take a closer look at the index flow expectations and the historical performance of STOXX Europe 600 and EURO STOXX Rebalance events.
When Will Samsung Life Insurance Be Forced to Sell Its Stake in Samsung Electronics by the Govt?
- The debate about whether or not Samsung Life Insurance should sell its stake in Samsung Electronics is being reviewed by the National Assembly once again.
- The greater probability event is status quo. The Korean government is not likely to force Samsung Life Insurance to sell its stake in Samsung Electronics in the near term.
- Korean government is likely to require Samsung Life Insurance to sell its stake in Samsung Electronics after the Lee family has paid off all their inheritance taxes in 3-4 years.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
