In today’s briefing:
- Rohm (6963): Costs Up, FX Gains Up More, Small Buyback, Cheap (And N225 Inclusion In the Distance)
- Tencent and China Unicom Tie Up in New Joint Venture
- Meta Platforms: Is The Hyper Growth Story Over? (11/22)
- Launching Single-Stock ETFs in Korea: Market Flow Impact Analysis
- Reason Behind the Difference in Management Between Family Companies and Others Is the Shareholding
- FishLog Raises US$3.5M to Empower Cold Storage Warehouses in Indonesia to Improve Utility
- Microsoft Inc: The Designer Visual Design App & Other Developments
- ATEN: Steady Growth, PT to $24
- Lazada Group Publishes First ESG Report
- Alphabet Inc: The Alter Acquisition & Other Drivers
Rohm (6963): Costs Up, FX Gains Up More, Small Buyback, Cheap (And N225 Inclusion In the Distance)
- ROHM Co Ltd (6963 JP) announced salutary H1 results on Nov 1. The numbers were good, the innards suggested cost pressures. The revised forecasts suggested conservativeness, or risk of weakness.
- The company also announced a stock buyback. It’s only about 2% of shares out, which is 5-10% of Real World Float, but the stock has a low-beta risk character.
- And it is quite cheap on a capital construct basis. EV/EBITDA to Mar23 on conservative guidance is 4.6x. Adj EV/EBITDA Mar23e deducing securities and net receivables? 3.7x.
Tencent and China Unicom Tie Up in New Joint Venture
- Chinese social media giant Tencent Holdings Ltd. and state telecom operator China Unicom were cleared by the country’s antitrust regulator to set up a joint venture to develop data and cloud-related businesses.
- The new business, one of 15 investment deals that cleared antitrust review Tuesday, will focus on content delivery networks and edge computing.
- The partnership is another tie-up between Tencent and China Unicom after a 2017 investment in which the social media giant acquired a 5.18% stake in the telecom company.
Meta Platforms: Is The Hyper Growth Story Over? (11/22)
- Meta Platforms delivered a highly disappointing set of results with a huge earnings miss.
- The company’s ballooning costs to fund its virtual reality vision have resulted in a drop in profitability.
- We provide the stock of Meta Platforms with a ‘Hold’ rating and a revision in the target price.
Launching Single-Stock ETFs in Korea: Market Flow Impact Analysis
- The target market size that will be affected by the Default Option is estimated to be ₩92T. Up to 30% of them (₩30T) can flow into single-stock ETFs.
- Competing against TDFs, half of this ₩30T is a conservative estimate for single-stock ETFs. Then, up to 40% of the ₩15T becomes the flow size entering the local stock market.
- KODEX’s Samsung Electronics single-stock ETF may dominate the market. In this case, at least ₩3-4T can flow into Samsung Electronics Ord.
Reason Behind the Difference in Management Between Family Companies and Others Is the Shareholding
- Correlation analysis of the major shareholder factor with ROE, ROA, and Tobin’s Q shows that founding family companies tend to have relatively high profitability (ROA) and high stock price valuations.
- On board practices, companies with more than 50% ownership are generally less concerned about improving their practices, because they don’t have to worry as much about voices of minority shareholders.
- With regard to key actions, companies with shareholders holding more than 50% interest are presumed to be proactive in growth investments.
FishLog Raises US$3.5M to Empower Cold Storage Warehouses in Indonesia to Improve Utility
- FishLog, an ecosystem enabler for the fisheries cold chain industry in Indonesia, has closed its US$3.5 million pre-Series A round
FishLog was established in 2020 by Bayu Anggara, Reza Fahlepi, and Abdul Halim to solve the fragmentation in cold chain fisheries in Indonesia
The agritech startup improves cold storage, processor, and distribution in Indonesia’s fisheries to enable the industry to meet global supply and demand better
Microsoft Inc: The Designer Visual Design App & Other Developments
- Microsoft delivered a good result in the last quarter surpassing Wall Street expectations on all counts.
- Microsoft Cloud revenue surpassed $25 billion, increasing by 24% and 31% in constant currency.
- Microsoft is getting more customers that want to grow and innovate with its existing infrastructure.
ATEN: Steady Growth, PT to $24
- ATEN continues to demonstrate its growth ability by focusing on its security first approach. ATEN reported third quarter revenue slightly more than we were projecting
- The steady growth ATEN has experienced this year has come through the diversification of its customer base
- ATEN’s management asserted demand has been consistent and dependent on performance. ATEN has added more customers throughout the year, which should serve as a baseline for incremental revenue in 2023
Lazada Group Publishes First ESG Report
- Singapore-based ecommerce giant Lazada has released its first environmental, social, and governance (ESG) report.
- As a largely unexplored concept in Southeast Asia, the firm enlisted the help of an independent consultant to map out its ESG priorities.
- The core tenets of the firm’s ESG framework are “empowering communities, developing a future-ready workforce, ensuring responsible stewardship, and effective governance.”
Alphabet Inc: The Alter Acquisition & Other Drivers
- Alphabet’s stock price has undergone a strong correction after the company delivered a disappointing third-quarter financial result, failing to meet Wall Street expectations in terms of revenues as well as earnings.
- Alphabet did have a decent underlying growth in Search and momentum in Cloud but the impact of currency conversion is reflected in their results.
- Lapping the high growth levels from the previous year and the difficult macroeconomic environment also influenced the growth in their advertising revenues.
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