In today’s briefing:
- PropertyGuru (PGRU US): KKR/TPG Mulling a Buyout
- Shift Up IPO Valuation Analysis
- Tech Supply Chain Tracker (23-May-2024): UMC begins move-in at Singapore fab.
- AMAT. No Beat, No Raise, No Slump. But Why?
- KS / Kuaishou (1024 HK): 1Q24, Strong GMV and Historical High Op Margin Again
- NIFTY100 Low Volatility 30 Index Rebalance Preview: Bharti Could Replace Power Grid
- Tuya, Inc. – 1Q24 Earnings Strong
- Nvidia Up Sharply Again – Can This Last?
PropertyGuru (PGRU US): KKR/TPG Mulling a Buyout
- Bloomberg reports that KKR and TPG are exploring options, including a buyout of PropertyGuru (PGRU US), and are gauging initial interest from other global investors.
- The favoured privatisation option for US ADRs with the Cayman Islands incorporation is a statutory merger requiring a two-thirds voting approval threshold.
- The concentrated shareholder register would suggest that TPG/KKR would aim for irrevocable from the other three substantial shareholders, facilitating a modest takeover premium.
Shift Up IPO Valuation Analysis
- Our base case valuation of Shift Up is target price of 95,510 won, which is 59% higher than the high end of the IPO price range (60,000 won).
- We believe Shift Up deserves higher valuation multiples than its peers mainly due to higher sales growth, much higher operating margins, and higher ROE.
- Since its launch in April of this year, Stellar Blade (PS console game) has ranked first in sales in eight countries, including the United States, United Kingdom, Canada, and Japan.
Tech Supply Chain Tracker (23-May-2024): UMC begins move-in at Singapore fab.
- UMC Singapore fab is in the process of moving in new equipment to enhance its production capabilities.
- Japan has a target of manufacturing 12 million software-defined vehicles by the year 2030.
- India continues to enforce import restrictions on IT products, impacting the sector’s growth and development. Power HV brings advanced technology to transformer monitoring in the energy industry for increased reliability.
AMAT. No Beat, No Raise, No Slump. But Why?
- AMAT Q124 revenues of $6.65 billion, in line with guidance and essentially flat both QoQ and YoY. Current quarter guidance also flat sequentially
- WFE valuations are at all time record highs while revenues remain on life support from China
- If China revenues fall off before non-China returns to growth, the WFE segment could be in for a world of pain.
KS / Kuaishou (1024 HK): 1Q24, Strong GMV and Historical High Op Margin Again
- In 1Q24, revenue grew by 17% YoY and e-commerce GMV grew by 28% YoY.
- Both the operating margin and the operating profit reached historical highs in 1Q24.
- We set an upside of 47% and the price target at HK$86.00. Buy.
NIFTY100 Low Volatility 30 Index Rebalance Preview: Bharti Could Replace Power Grid
- With a week left in the review period, Bharti Airtel (BHARTI IN) could replace Power Grid Corporation Of India (PWGR IN) in the Nifty100 Low Volatility 30 Index in June.
- Constituent changes, volatility changes and capping changes will result in one-way turnover of 6.4% resulting in a one-way trade of INR 2.3bn.
- The flows on the stocks are not very large but there will be same side and offsetting flows from other index trackers at the same time.
Tuya, Inc. – 1Q24 Earnings Strong
- Tuya reported a strong 1Q24, with revenue of $61.7 million, up 30% Y/Y (consensus was for ~15% Y/Y growth).
- Gross margin continued to grow, up 360 bps Y/Y to 47.8% (a company record). IoT PaaS revenue grew 36% Y/Y to $45.6 million.
- Its 590-bp Y/Y margin improvement was significant to corporate margin growth.
Nvidia Up Sharply Again – Can This Last?
- Nvidia announced another sharp sales increase to $26 billion in quarterly revenues
- The company’s growth is far greater than hyperscaler CapEx growth, as standard servers yield to AI servers: Bad news for Intel & AMD
- Some of this may stem from an inventory build at the hyperscaler, which may lead to another Boom/Bust cycle similar to 2018 and 2022
💡 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
