In today’s briefing:
- Rorze (6323) | Japan Small Cap Winner
- Samsung’s Lee Jae-Yong Receives Pardon & Get Out of Jail Card: A Signal of Major M&As by Samsung?
- Softbank Group (9984 JP) 1Q 22 Results – Focus on Fintech and LatAm Holdings
- Adobe Inc.: Creative Cloud Upside & Other Drivers
- Mastercard Inc.: New Set Of Collaborations & Other Key Drivers
Rorze (6323) | Japan Small Cap Winner
- We are Bullish on Rorze, a global leader in ultra-clean wafer substrate handling solutions.
- We believe that Rorze is well placed to monetise the long-term growth in semiconductor demand and WFE spend
- The stock has recently underperformed its peer group and valuations collapsed. We see almost 100% upside potential based on a 14x target multiple
Samsung’s Lee Jae-Yong Receives Pardon & Get Out of Jail Card: A Signal of Major M&As by Samsung?
- On 12 August, the South Korean government finally gave a presidential pardon to Samsung’s heir Lee Jae-Yong.
- With Lee Jae-Yong given the presidential pardon, there is an increasing likelihood that the Samsung Group could become more aggressive in making major global M&As in the next several years.
- Three major M&As that Samsung could make in the next several years include ARM, Infineon, and NXP Semiconductor.
Softbank Group (9984 JP) 1Q 22 Results – Focus on Fintech and LatAm Holdings
- Softbank Group’s fintech portfolio companies – and especially those in the largely Softbank-funded Vision Fund 2 – were a meaningful part of the group’s large loss in fiscal 1Q 2022
- However, Klarna and eToro “down rounds” – concluded in early July – do not seem to have been incorporated into June-end losses; the Vision Funds are absorbing the LatAm Fund
- Despite the public markets rebound, Softbank faces multiples challenges, and it is hard to find positives in the Alibaba derivatives contracts
Adobe Inc.: Creative Cloud Upside & Other Drivers
- Adobe has witnessed a particularly robust demand over Experience Cloud, Document Cloud, and Creative Cloud.
- Adobe is winning in its established business and is viewing significant momentum in innovative categories.
- During the quarter, it hiked prices for particular creative cloud subscriptions which helped the revenue growth.
Mastercard Inc.: New Set Of Collaborations & Other Key Drivers
- Mastercard continued to bear the brunt of inflationary pressures since the start of 2022 but the company has definitely benefitted from the fact that travel-related spending and consumer spending have remained strong.
- Apple Pay Later has been recently announced by Apple which is using the Mastercard installments program.
- In the U.S., the company established a partnership agreements that extend its small, co-brand, credit, and debit business credit programs.
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