In today’s briefing:
- The IPO Shot in the Arm for Softbank (9984 JP), but Is It Enough?
- 4Paradigm Pre-IPO – Refiling Updates – Has Been Paring Down Losses but Cash Runway Seems Short
- Taiwan Tech Weekly: Micron Results Key for Nanya; Hon Hai New 52-Week High; AI Leaders Basket
- JST Group Pre-IPO Tearsheet
- Samsung Ventures Invests in Sleeptech Firm Earable Neuroscience
- Japan System Techniques (4323 JP) – FY23/3 Full Year Follow-Up
- PolicyStreet Bags $15.3m from Malaysian Gov’t to Bolster Insurance Products
- PI: Red Tagged, Initiating with Sell
The IPO Shot in the Arm for Softbank (9984 JP), but Is It Enough?
- We believe that Masa’s AI predictions and ambitions in the AGM presentation may well need a reality check; nonetheless, Softbank subsidiary Arm is a beneficiary of increasing AI applications
- The prospective Arm IPO is a key driver in the recent Softbank group share price rally; we look at AMD’s acquisition of Xilinx for an indication of Arm’s potential valuation
- Softbank group’s stated NAV discount narrowed by 19 pp to 31%; we explore Arm IPO valuation scenarios for NAV upside but we only see Softbank upside in a super-premium valuation
4Paradigm Pre-IPO – Refiling Updates – Has Been Paring Down Losses but Cash Runway Seems Short
- 4Paradigm (1764934D HK) is looking to raise about US$600m in its upcoming IPO in Hong Kong.
- 4P is a platform-centric AI enterprise solutions provider. It was the largest player by revenue in the platform-centric decision-making AI market in China in 2022, as per CIC.
- In our previous note, we took a look at the company’s background and financial performance. In this note, we will cover the firm’s refiling updates.
Taiwan Tech Weekly: Micron Results Key for Nanya; Hon Hai New 52-Week High; AI Leaders Basket
- Micron results this week; will give a key readthrough for Nanya Tech. The latest memory chip pricing data implies it was another tough quarter.
- Hon Hai’s break out continues, with the shares achieving a new 52-week high. The company’s new JV with automaker Stellantis may finally be winning over naysayers.
- AI Leaders Basket: TSMC and ASML have substantially lagged Nvidia and could serve as AI-exposure alternatives to chasing Nvidia’s rally.
JST Group Pre-IPO Tearsheet
- JST Group (1703609D CH) is looking to raise at least US$100m in its upcoming HK IPO. The deal will be run by CICC and JP Morgan.
- Jushuitan (JST) is China’s largest e-commerce SaaS ERP provider in terms of revenue in 2022, with a market share of 20.7%, according to CIC.
- The firm offers a suite of cloud-based e-commerce SaaS products, and is able to connect merchants with over 350 e-commerce platforms in China and across the world.
Samsung Ventures Invests in Sleeptech Firm Earable Neuroscience
- Earable Neuroscience, a US-headquartered deep-tech company that has developed a sleep tech wearable device, has secured undisclosed bridge funding from Samsung Ventures.
- Through this investment, Samsung Ventures plans to forge alliances within its local and global network to support Earable Neuroscience’s global expansion, including the Korean market.
- Established in 2018 by Vietnamese founder Tam Vu, the startup’s sleep tech wearable, FRENZ Brainband, incorporates cutting-edge neuroscience technology into a consumer wearable to enhance sleep quality, improve focus, and promote relaxation.
Japan System Techniques (4323 JP) – FY23/3 Full Year Follow-Up
- Japan System Techniques announced itsfull-year results for FY23/3 after the close of the market on Friday, May 12.
- Operating profit rose 19.3%, to ¥2,385 mn, on a 9.9% rise in sales, to ¥23,519 mn.
- Ordinary profit rose 19.4%, to ¥2,450 mn, and net profit rose 33.2%, to ¥1,772 mn.
PolicyStreet Bags $15.3m from Malaysian Gov’t to Bolster Insurance Products
- Malaysian insurtech company PolicyStreet has raised US$15.3 million in its series B funding round led by local sovereign fund Khazanah Nasional Berhad.
- This investment was made under the fund’s 6 billion ringgit (US$1.3 billion) Dana Impak mandate.
- PolicyStreet offers digital insurance options to both consumers and businesses, aiming to make such products more accessible and affordable with the firm’s in-house underwriting capabilities.
PI: Red Tagged, Initiating with Sell
- Impinj was a late beneficiary to the COVID-19 pandemic and could now be on the cusp of a correction in its revenue growth trajectory
- The developer of radio frequency identification (“RFID”) chips used in RFID tags benefited when companies were facing supply chain issues resulting in ordering much more inventory than necessary
- Consensus estimates are for another 36 percent increase in revenue in 2023 even though Impinj is heavily dependent on retail apparel
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