In today’s briefing:
- ECM Weekly (4th Sep 2022) – China ADRs, Tencent, Leapmotor, Onewo, Hongjiu Fruit, Doosan Ener
- August Route Leads September Pain
- Applied Materials Inc: The Picosun Oy Acquisition & Other Drivers
- Livspace: A Tech-Enabled Home Interior and Renovation Marketplace in Asia
- Last Week in Event SPACE: Kyocera, Hang Lung Group, CSRC/PCAOB Audit Terms, MACA, Nitro Software
- Dell Technologies: New Additions To Storage Portfolio & Other Drivers
- Norton LifeLock Inc: Evolution of Norton 360
- Cisco Systems Inc: Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (09/22)
ECM Weekly (4th Sep 2022) – China ADRs, Tencent, Leapmotor, Onewo, Hongjiu Fruit, Doosan Ener
- Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
- On the IPO front, things are starting to move with Leapmotor and Onewo, while CALB continues to have second thoughts.
- The biggest placement this week was Doosan, but there was news of Tencent setting its sights on sizeable future placements via divestments.
August Route Leads September Pain
- The impulsive decline in growth sectors (NDX) warns of more pain in September. Sell resistance lies at 12,500/800 below the 13k risk pivot. NDX early August relative peak led.
- SPX macro sell call on August 19 worked well with a short NDX focus (short group includes DAX, HSI, Taiwan and recently Korea).
- August was touted as the month to sell longs establish in June/July and to raise short bets for a bearish September as pundits turned bullish in mid-August, we were selling.
Applied Materials Inc: The Picosun Oy Acquisition & Other Drivers
- Applied Materials saw a decent quarter as overall demand remains healthy which enabled the company to deliver an all-around beat.
- In the quarter supply chain improved incrementally.
- Among major updates, Applied Materials carried out the acquisition of Picosun Oy, a semiconductor equipment company based in Finland.
Livspace: A Tech-Enabled Home Interior and Renovation Marketplace in Asia
- Livspace brings together designers, brands, manufacturers, and contractors onto its marketplace.
- It automates the entire process from interior design to managing last mile fulfilment for all rooms in users’ homes.
- The company was valued at $1.2bn based on its last capital raise in Feb 2022; it operates in India, Singapore, and Malaysia and plans to expand to other makers aggressively.
Last Week in Event SPACE: Kyocera, Hang Lung Group, CSRC/PCAOB Audit Terms, MACA, Nitro Software
- Kyocera (6971 JP) is not blowing out the lights versus peers, but it’s relatively inexpensive to its history and peers. If Kazuo Inamori’s shares are sold, Kyocera can buy them.
- Hang Lung (10 HK) currently trades at a 62% discount to NAV, a level last seen around the Covid lows in May 2020.
- Washington and Beijing reach an agreement allowing US regulators access to audits of Chinese companies listed on American exchanges. However, US regulators remain cautious about the success of the deal.
Dell Technologies: New Additions To Storage Portfolio & Other Drivers
- Dell Technologies’ stock price has crashed after the company indicated a weak sectoral outlook for PC sales.
- The company observed ISG demand pushing throughout the quarter even though it was still expanding slowly.
- Among new launches, Dell Technologies has also introduced software-driven modern storage solutions throughout its storage portfolio to promote improved intelligence, automation, cyber resilience, and multi-cloud flexibility.
Norton LifeLock Inc: Evolution of Norton 360
- Norton LifeLock’s business has been adversely affected by the volatile forex environment and various macroeconomic pressures.
- The customer unit retention stays stable, and it continues to drive improvements to main cohorts with the inclusion of its newer customers.
- It has made inroads from its latest Norton Identity Advisory Plus launch in the UK market.
Cisco Systems Inc: Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (09/22)
- Cisco Systems had quite a strong quarter and was able to exceed Wall Street expectation on all counts despite operating in an incredibly dynamic environment.
- The company continues to view strong customer adoption of its subscriptions and software driven by its targeted investments.
- We provide the stock of Cisco Systems with a ‘Hold’ rating with a revision in the target price.
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