In today’s briefing:
- KOSDAQ150 Index Rebalance: 8 Changes a Side; Fadu Appears to Be a 4 Letter Word
- Tuya Inc (TUYA US/2391 HK): Third Listing A Charm? Not So Fast …
- The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (November 21)
- Tuya: Improving Sales Growth and Profit Margins Help to Clench Investment by 65 Equity Partners
- Qualcomm’s $4 Billion PC Chip Bet: Can It Dominate Beyond Smartphones?
- [Xiaomi Inc. (1810 HK, BUY, TP HK$33) Target Price Change]: Good Result, and It Will Only Get Better
- Why Ancora Thinks Harmonic Inc. Should Explore a Strategic Sale: What Investors Need to Know!
- EQD | Hang Seng (HSI) – Analysis of Option Strategies Recently Traded on HKEX
- Ziff Davis: These Are The 6 Biggest Factors Impacting Its Performance In 2025 &Beyond! – Major Drivers
- Lightspeed Commerce Inc.: These Are The 7 Biggest Factors Impacting Its Performance In 2025 & Beyond! – Major Drivers
KOSDAQ150 Index Rebalance: 8 Changes a Side; Fadu Appears to Be a 4 Letter Word
- There will be 8 additions and 8 deletions for the KOSDAQ 150 Index (KOSDQ150 INDEX) at the next rebalance to be implemented at the close on 12 December.
- Most of the inclusions were forecast but there is a lot of variance among the list of deletions… index committee knows best!
- Fadu (440110 KS) was ignored for yet another rebalance, while Snh Inc (051980 KS) has also not been included in the index.
Tuya Inc (TUYA US/2391 HK): Third Listing A Charm? Not So Fast …
- Tuya Inc (TUYA US/2391 HK), a leading IoT cloud platform in China, was listed on the 18th March 2021 at US$21.00/ADS. The share price is currently down 92.5%.
- Tuya subsequently established a primary dual-listing in Hong Kong on the 5th July 2022, priced at HK$19.30/share. Those shares are down ~23%
- Temasek-Backed 65 Equity Partners has now acquired a 13% stake (equivalent to ~6.2% of the voting rights) in Tuya, with a view to establishing a secondary listing on the SGX.
The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (November 21)
- Hong Kong is again trading well below its historical multiple valuation levels after the October/November correction. Mainland investors bought a record amount the day after Trump’s win.
- Kingsoft Corp (3888 HK) reported consensus beating results with its online game segment surging. The company is benefiting from AI upgrades in its office SAAS business.
- Precision Tsugami China (1651 HK) posted blockbuster earnings for its 1H25 as the machine tool sector rebounds on the back of factories upgrading to intelligent manufacturing.
Tuya: Improving Sales Growth and Profit Margins Help to Clench Investment by 65 Equity Partners
- On 18 November, it was announced that 65 Equity Partners (backed by Temasek) will invest US$100 million (S$134 million) for a 13% stake in Tuya Inc (TUYA US).
- Net cash as a percentage of market cap is currently at 92%. Tuya’s sales growth and improvement in operating margin in 1Q-3Q 2024 have also been impressive this year.
- Comps are trading at average EV/EBITDA of 13.7x in 2025 versus 2.3x for for Tuya. If Tuya continues its turnaround, its valuation gap versus its peers could decrease further.
Qualcomm’s $4 Billion PC Chip Bet: Can It Dominate Beyond Smartphones?
- Qualcomm is aggressively pushing into the PC market, aiming to transform its identity from a mobile chip giant to a diversified computing powerhouse.
- At its recent investor day, Qualcomm announced bold revenue projections of $4 billion from PC chips by 2029, alongside significant strides in automotive, industrial IoT, and XR markets.
- This marks a pivotal moment as Qualcomm ventures beyond its traditional smartphone business, which currently accounts for 75% of its chip revenue.
[Xiaomi Inc. (1810 HK, BUY, TP HK$33) Target Price Change]: Good Result, and It Will Only Get Better
- Xiaomi reported CY3Q24 revenue, non-IFRS EBIT and non-IFRS net income 4.7%, 7.8%, and 16.6% vs. consensus.
- C4Q should be even stronger, as (1) appliance subsidy drive IoT revenue and margin improvement, (2) SU7 production output ~doubles
- We reiterate Xiaomi as our TOP BUY idea and raise Xiaomi’s TP to HK$ 33 to reflect the improved profit outlook. Our TP implies 26.6x CY25 P/E.
Why Ancora Thinks Harmonic Inc. Should Explore a Strategic Sale: What Investors Need to Know!
- Harmonic reported record results for the third quarter of 2024, with total company revenue and profitability exceeding expectations.
- The company’s Broadband and Video segments both contributed significantly to this performance, showcasing strong execution on business plans.
- The Broadband revenue reached $145.3 million, marking a 92% year-over-year increase and a 56% sequential increase.
EQD | Hang Seng (HSI) – Analysis of Option Strategies Recently Traded on HKEX
- Hang Seng Index (HSI INDEX) implied volatility fell across the term structure and skew. The skew displays a smile favoring specific option strategies.
- The most traded HKEX traded tailor-made combinations are Call and Put Spreads. Straddles, Strangles and Butterflies have become less popular most recently.
- While three quarters of all strategies take a long volatility position, there is a balance in bullish, bearish, and market-neutral strategies.
Ziff Davis: These Are The 6 Biggest Factors Impacting Its Performance In 2025 &Beyond! – Major Drivers
- Ziff Davis reported its financial performance for the third quarter of 2024, highlighting several strategic advancements and financial outcomes.
- Total revenue grew by 3.7% compared to Q3 2023, reaching $353.6 million.
- Adjusted EBITDA increased more significantly, by 9.6%, reflecting a focus on operational efficiency and cost management that resulted in a higher adjusted EBITDA margin of 35.3%.
Lightspeed Commerce Inc.: These Are The 7 Biggest Factors Impacting Its Performance In 2025 & Beyond! – Major Drivers
- Lightspeed Commerce Inc. reported its fiscal Q2 2025 earnings, showcasing robust performance with a 20% year-over-year increase in total revenue to $277.2 million, surpassing their projected range of $270-$275 million.
- This growth was driven by a significant rise in payment services penetration and effective cost control measures, resulting in a record adjusted EBITDA of $14 million, up from breakeven in the same quarter last year.
- Furthermore, Lightspeed’s trailing 12-month revenue exceeded $1 billion, demonstrating positive momentum for the company as it celebrates its 20th anniversary.
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