In today’s briefing:
- Tencent (700 HK) – This Is Not the Selldown You Are Looking For
- An Alternative Flow Trading Angle for K200 Rebalancing in June
- Tata Technologies Pre-IPO – The Positives – A Tata Group Listing After a Long Lull
- High Conviction Shift: Margins at Record High with Strict Management and Operational Improvement
- Rokid Corporation: AR Player Catering to the Industrials Sector
- NTGR: Promotion Stability a Positive
- VeriSign Inc.: Initiation of Coverage – Recent Management Focus & Key Drivers
- VeriSign Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report
Tencent (700 HK) – This Is Not the Selldown You Are Looking For
- On April 11, Prosus (PRX NA) made an Update on Repurchase Programme that it had repurchased shares in the market from the 3-7 April. They do so every week.
- This one said they would move 96 million shares of Tencent (700 HK) currently held in non-transferrable shares into CCASS so they could be sold.
- The ADRs dropped in New York time. Tencent shares fell hard today. If the share price fell because of a block offering, that would be unwarranted.
An Alternative Flow Trading Angle for K200 Rebalancing in June
- In KOSPI 200 IT Sector Index rebalancing in June, we should consider using Samsung SDS as a hedge for short positions on KakaoPay from a day trading perspective.
- The expected performance of traditional flow trading based on passive impact has become uncertain due to flexible rebalancing trading by local pensions and short selling resumption on K200 new entrants.
- As such, flow events on these sector indices that are still pretty much under the radar in the market could be a meaningful alternative for us.
Tata Technologies Pre-IPO – The Positives – A Tata Group Listing After a Long Lull
- Tata Technologies (TATATECH IN) (TT) is looking to raise around US$600m in its upcoming India IPO.
- Tata Technologies is a global engineering services company offering product development and digital solutions, including turnkey solutions, to global original equipment manufacturers (OEMs) and their tier 1 suppliers.
- In this note we talk about the positive aspects of the deal.
High Conviction Shift: Margins at Record High with Strict Management and Operational Improvement
- Shift Inc (3697 JP) reported 2QFY08/23 results on Monday. Revenue increased 34.7% YoY to ¥21.0bn (vs consensus ¥21.3bn vs guidance ¥21.1bn) while OP grew 74.8% YoY to ¥3.3bn (vs consensus ¥2.4bn).
- Both GPM and OPM improved significantly reaching record highs as unprofitable projects came to an end with cost optimisation initiatives removing previous concerns over declined margins in 1QFY08/23.
- Shift’s share price closed at ¥25,870 closing 15.8% higher than the previous close at the end of yesterday’s trading following its strong set of earnings.
Rokid Corporation: AR Player Catering to the Industrials Sector
- Founded in 2014, Hangzho Rokid Technology (2004144D CH) is a Chinese developer of AR glasses and AI robotics software products, and the company operates across 10 countries.
- Rokid’s glasses are mainly used for industrial purposes including in oil & gas, electric power, aviation, rail transport and others thereby creating its own niche in the AR/VR glasses sector.
- The company has just expanded into North America with further global expansion on the cards and may likely to seek an overseas listing.
NTGR: Promotion Stability a Positive
- NTGR has been going through a product transition cycle in a soft demand environment for more than a year, but recent promotion activity suggests an end could be near
- The scale of promotions seems to have abated in the first quarter of 2023 even though demand has yet to return.
- NTGR had been projecting the first quarter would be the low point of the year with sequential revenue growth in the second quarter.
VeriSign Inc.: Initiation of Coverage – Recent Management Focus & Key Drivers
- This is our first report on the renowned domain name registry services and internet infrastructure provider, VeriSign.
- It produced solid financial results throughout 2022 while bolstering its vital Internet infrastructure.
- This was made achievable by conservative expense management, restricted pricing flexibility, and minimal domain name base expansion.
VeriSign Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report
- VeriSign is one of the largest domain name registry services and internet infrastructure providers in the world.
- It produced solid financial results throughout 2022 while bolstering its vital Internet infrastructure.
- Baptista Research looks to evaluate the different credit strengths and credit risks of the company as well as a line-by-line analysis of the financial statements of the company for the past four years.
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