In today’s briefing:
- SPX 4,100 Bull Turn
- Gigavis IPO Valuation Analysis
- X2M Connect (ASX:X2M) – China Contract Adds to H2 Progress
- X2M Connect Ltd – China Contract Adds to H2 Progress
SPX 4,100 Bull Turn
- SPX met the 4,100 long target and NDX turned higher off of 13,000 support that are expected to induce a secondary April rally.
- A push back toward SPX 4,200 will put the final touches on the buoyant April recovery cycle toward SPX 4,200/20. There is risk the rally falters below 4,200.
- US 10yr yield hovering above 3.20% lower wedge support per call for an undershoot below 3.35%.
Gigavis IPO Valuation Analysis
- Our base case valuation of Gigavis IPO is target price of 61,755 won per share, representing 56% higher than the high end of the IPO price range.
- We estimate the company to generate sales of 126.6 billion won (up 27% YoY) in 2023 and 150.9 billion won (up 19.2% YoY) in 2024.
- Our base case valuation is based on 21.8x P/E using our estimated net profit of 35.9 billion won in 2023.
X2M Connect (ASX:X2M) – China Contract Adds to H2 Progress
- X2M Connect (ASX:X2M), which is focused on digitising the utilities sector across APAC, has secured $1.8m in hardware water quality sensor sales in China with three new contract.
- The contracts bring the contribution from China to $3.4m this financial year which exceeds the revenue generated from China in FY22;
- While this announcement is in our numbers, it provides comfort for both near-term and longer-term estimates as units in the field support future recurring subscription fees.
X2M Connect Ltd – China Contract Adds to H2 Progress
- X2M Connect Ltd (ASX:X2M) has developed and is commercialising a patented proprietary Internet of Things (IoT) solution predominantly focused on the utilities sector across the Asia Pacific region, converting legacy meters into smart meters.
- The company has announced it has secured $1.8m in hardware water quality sensor sales in China with three new contracts.
- The contracts bring the contribution from China to $3.4m this financial year to date which exceeds the revenue generated from China in FY22.
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