In today’s briefing:
- Sea & Pinduoduo Are in Dangerous Territory With Tencent in Disposal Mode
- Grab: Almost No Price Reaction to a So-Called Strong Set of Results as There Is Much to Prove
- Appier (4180) | Why Has the Stock Outperformed?
- Taiwan Dual-Listings: TSMC Premium Reverts, Rare Hon Hai & UMC Discounts
- Buy Meituan on Tencent’s Distribution Announcement of Meituan Shares
- Defending the Gold Premium
- Delta Taiwan Vs. Thailand Monitor: China Concerns Easing, EV in 2023 Favor Delta Taiwan
- SG’s ADDX Raises $20m in Round Led by Korea’s KB Securities
- AI-Driven Property Portal MOGUL.sg Nets US$6.5M Series A
- KKR Leads US$48M Series C Round of Indonesian EKYC Company Privy
Sea & Pinduoduo Are in Dangerous Territory With Tencent in Disposal Mode
- After distributing over 450m of JD.com Inc. (9618 HK) shares to its shareholders late last year, Tencent (700 HK) took a short break from the downsizing of its public investments.
- Downsizing seems to have restarted with yesterday’s announcement of the distribution of more than 950m Meituan (3690 HK) shares to Tencent shareholders.
- Having already met Tencent’s soft self-sustainability criteria, Pinduoduo (PDD US) and Sea Ltd (SE US) could be lined up as Tencent’s next portfolio downsizing targets.
Grab: Almost No Price Reaction to a So-Called Strong Set of Results as There Is Much to Prove
- Grab (GRAB US) reported 3Q2022 results yesterday. 3Q revenue increased 143% YoY to $382m (vs consensus $348m) while reported an adjusted EBITDA (negative) of $161m (vs consensus $202m).
- The highlight of 3Q2022 earnings was the break-even of deliveries business as well as improvement in Mobilities financials driven by reduction in incentives (as % of GMV).
- Though the company called it a strong set of results, Grab’s share price moved up by 0.64% could be an indication that the profitability may not be sustainable.
Appier (4180) | Why Has the Stock Outperformed?
- Appier has been by far the best performing small-cap growth stock in Japan this year
- The company is gaining market share overseas, massively augmenting the Total Addressable Market
- It’s high growth, rising margins, and growing TAM makes this a top stock for SaaS investors
Taiwan Dual-Listings: TSMC Premium Reverts, Rare Hon Hai & UMC Discounts
- TSMC ADR’s premium has reverted after going as high as 10.9%.
- Hon Hai’s London-listed GDRs are trading at a historically rare discount.
- UMC ADRs also look interesting relative to the Taiwan shares given their rare discount.
Buy Meituan on Tencent’s Distribution Announcement of Meituan Shares
- Tencent announced to transfer 958 million shares of Meituan as a special dividend
- This distribution is similar to the previous JD distribution in Dec 2021
- The transfer of Meituan shares can provide potential two entry points of the stock.
Defending the Gold Premium
- When you look around the world for a big, liquid, globally accepted safe haven, there is only one, and that is gold, which continues to reassert its status as the asset of last resort.
- Pre-1970, in the days of the gold standard, gold formally enjoyed this role.
- Today, after a 50-year break, the free market is putting gold back onto the pedestal where it belongs.
Delta Taiwan Vs. Thailand Monitor: China Concerns Easing, EV in 2023 Favor Delta Taiwan
- Delta Taiwan has outperformed Delta Thailand, but remains at a historically low relative valuation.
- China concerns, which may have impacted Delta Taiwan on a relative basis, appear to be incrementally improving.
- We continue to favor Delta Taiwan vs. Delta Thailand, historical data implies Delta Taiwan is more likely to outperform Delta Thailand than vice-versa.
SG’s ADDX Raises $20m in Round Led by Korea’s KB Securities
- Singapore private market exchange ADDX has secured US$20 million in a pre-series B extension round.
The new capital injection comes on top of the US$58 million that ADDX initially raised in May, the company said in a release.
- Regulated by the Monetary Authority of Singapore, ADDX uses blockchain and smart contract tech to automate the manual processes in private market investing.
AI-Driven Property Portal MOGUL.sg Nets US$6.5M Series A
MOGUL.sg’s 3D map supports searches with an immersive experience to help prospective buyers visualise the properties and their surrounding areas better.
- MOGUL.sg, an AI-driven property search portal in Singapore, has raised S$9 (US$6.5) million in its first-ever funding round.
- Launched in 2018, MOGUL.sg aims to make property searches easy with smart keywords, property tagging, and a specially curated agent concierge team to assist homeowners.
KKR Leads US$48M Series C Round of Indonesian EKYC Company Privy
Privy has 30M+ verified users and 1,800 enterprise consumers and processes 40M+ digital signatures per year.
- Jakarta-based digital signature and identity company Privy has secured US$48 million in a Series C funding round.
- Privy will use the capital to support the development of its new consumer and enterprise products. The company also intends to expand into overseas markets to accelerate growth further.
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