In today’s briefing:
- Shinko Electric (6967 JP): Tender Offer Risk/Reward
- KOSPI200 Index Rebalance (March): Fast Entry for PoscoDX; Will L&F Make It Too?
- Zee Entertainment- What Lies Ahead?
- Breakouts Proliferate; Bullish Outlook Intact; Small- And Mid-Caps to Lead?
- nCino Inc: Initiation of Coverage – How nCino’s Digital Solutions are Capturing the Financial Market! – Major Drivers
- [Kuaishou (1024 HK, BUY, TP HK$79) TP Change]: Robust Organic Traffic Supports Robust Growth
- Marathon Digital Holdings: Initiation of Coverage – The Power of Smart Cash Management! How Its Financial Strategy is Winning in the Crypto World! – Major Drivers
- Silicon Labs: Initiation of Coverage – What Is The Core Business Strategy Driving Growth?
- Vontier Corporation: Initiation of Coverage – Its 6 Biggest Growth Catalysts! – Financial Forecasts
- Power Integrations: Initiation of Coverage – Design Wins Defying Odds! How Power Integrations Is Capturing the Tech Market Amidst Challenges! – Major Drivers
Shinko Electric (6967 JP): Tender Offer Risk/Reward
- Shinko Electric Industries (6967 JP)‘s pre-conditional tender offer from the JIC alliance is JPY5,920 per share. Since the deal announcement, the gross spread has averaged 8.3%.
- The wide gross spread reflects the risk in satisfying the pre-conditions related to country approvals, particularly China and shareholder approval, due to Ibiden Co Ltd (4062 JP)’s re-rating.
- Ibiden’s re-rating is not necessarily an issue. JIC’s confidence in securing SAMR approval for the JSR Corp (4185 JP) transaction by March is a positive for Shinko’s SAMR approval.
KOSPI200 Index Rebalance (March): Fast Entry for PoscoDX; Will L&F Make It Too?
- KRX has announced that Posco DX (022100 KS) will replace Shinsegae International Co (031430 KS) in the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX) at the close on 14 March.
- Passive trackers will need to buy 0.5 days of ADV in Posco DX (022100 KS) while selling in Shinsegae International (031430 KS) is larger at over 7 days of ADV.
- L&F (066970 KS) lists on the KOSPI market on 29 January; there is a possibility that the stock is also added to the index in March as a Fast Entry.
Zee Entertainment- What Lies Ahead?
- We have been covering Zee Entertainment Enterprises (Z IN) during the entire merger saga and had already highlighted several financial and governance issues with the entire group.
- The $10 bn merger deal with Sony has now been terminated but it is not a surprise to us, considering the events that were unraveled in the last two years.
- But where does ZEEL go from here is a question that lacks some clarity. There are uncertainties looming around and ZEEL can face further brunt.
Breakouts Proliferate; Bullish Outlook Intact; Small- And Mid-Caps to Lead?
- The SPX, Nasdaq 100, and DJI breaking out to new all-time highs following 3-week consolidations. Russell 2000 (IWM), S&P 400 (IJH), Vanguard ExtendedMarket (VXF), countless other Sectors/industries breaking out also.
- This is classic bull market behavior. Considering market dynamics remain healthy, this is all evidence that supports our ongoing bullish outlook.
- Software, Data Storage buys: NTAP, NTNX, DBX, VRNS, and CVLT. Investment Banking & Brokerage, Mid-Cap buys: JEF, SF, EVR, MC, and LAZ
nCino Inc: Initiation of Coverage – How nCino’s Digital Solutions are Capturing the Financial Market! – Major Drivers
- This is our first report on SaaS player, nCino Inc.
- The company’s third quarter fiscal 2024 performance presented both opportunities and challenges in the midst of a complex economic environment.
- The company announced a significant product win in relation to a consumer lending deal with an enterprise bank in the United States of over $200 billion.
[Kuaishou (1024 HK, BUY, TP HK$79) TP Change]: Robust Organic Traffic Supports Robust Growth
- We expect Kuaishou to report C4Q23 revenue, IFRS op. profit and IFRS net income in-line, 34% and 29% vs. consensus, thanks to margin improvements;
- Playlet continued to generate significant organic traffic, leading to decreasing sales marketing cost and growth in advertising inventories. We further expect AI to drive playlet market expansions;
- E-Commerce GMV growth was robust. Kuaishou will likely increase take rate in the future. We maintain BUY and raise TP to HK$79, implying an 17x PE.
Marathon Digital Holdings: Initiation of Coverage – The Power of Smart Cash Management! How Its Financial Strategy is Winning in the Crypto World! – Major Drivers
- This is our first report on Marathon Digital Holdings, a renowned cryptocurrency technology company.
- Improved operational efficiency also resulted in a lower cost per bitcoin mined and a drop in all-in cost per coin.
- In this report, we have carried out a fundamental analysis of the historical financial statements of the company.
Silicon Labs: Initiation of Coverage – What Is The Core Business Strategy Driving Growth?
- This is our first report on fabless semiconductors player, Silicon Labs.
- The third quarter of 2023 has been a difficult period for Silicon Labs amidst a backdrop of weak demand and heightened inventory levels.
- In this report, we have carried out a fundamental analysis of the historical financial statements of the company.
Vontier Corporation: Initiation of Coverage – Its 6 Biggest Growth Catalysts! – Financial Forecasts
- This is our first report on critical technical equipment, components, software, and services provider, Vontier Corporation.
- The company, in its latest earnings, exhibited noteworthy progress in its strategies and performance for the third quarter.
- The top-line performance recorded for the quarter outperformed expectations with baseline core revenue growth of 10%, reflecting gains from the company’s connected mobility strategy.
Power Integrations: Initiation of Coverage – Design Wins Defying Odds! How Power Integrations Is Capturing the Tech Market Amidst Challenges! – Major Drivers
- This is our first report on analog and mixed-signal integrated circuits manufacturer, Power Integrations.
- The company’ Q3 2021 Financial Results depict a mixed picture with modest sequential growth but a contraction in sales year-over-year.
- For Q4, Power Integrations expects a sequential decrease to $90 million at the midpoint of the range, largely reflecting broad-based weakness echoed by industry peers amid challenging macroeconomic conditions.
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