In today’s briefing:
- VNG Pre-IPO – The Positives – Vietnam’s Mini-Tencent
- Energy One: Busby Baulks At STG’s Offer
- Core Concept Technologies (4371 JP) – A BIGLY 2ndary Offering (Re-IPO), and Eventual TOPIX Inclusion
- Zeus Co: Listing of JET Co Japanese Subsidiary and NAV Valuation
- Zeus Co (079370 KS): Is J.E.T.’s Spin-Off Priced In?
- ARM Holdings IPO: Valuation Insights
- Taiwan Shorts Analysis: AI Supply Chain Stocks With High Short Squeeze Risk
- Quiddity Leaderboard SET50 Dec 23: JMT Network Addition and Centel Plaza Deletion Likely
- VNG Pre-IPO – The Negatives – Vietnam’s Mini-Tencent
- Gogoro: Hunting for a Contrarian EV Buy; Valuing It as a Utility/Infra Business
VNG Pre-IPO – The Positives – Vietnam’s Mini-Tencent
- Vng (VNG US), Vietnam’s leading internet platform, aims to raise up to US$300m in its US IPO.
- VNG is Vietnam’s leading homegrown digital ecosystem, as per the company, with diverse product offerings across games, communications and media, fintech and other opportunities
- In this note, we talk about the positive aspects of the deal.
Energy One: Busby Baulks At STG’s Offer
- Yesterday (28 August) software provider Energy One Ltd (EOL AU) announced an indicative Offer, by way of a Scheme, from STG at A$5.85/share, a solid 44% premium to last close.
- Energy One has granted STG due diligence on an exclusive basis and the board is supportive if terms are firmed. All looks good. However …
- … Vaughan Busby, a NED and founding CEO of Energy One, is not aligned with the board. And he holds ~14%.
Core Concept Technologies (4371 JP) – A BIGLY 2ndary Offering (Re-IPO), and Eventual TOPIX Inclusion
- Last week I wrote about another situation, noting Equity Offering Into TOPIX Inclusion is a standard construct. Here we have another.
- DX and HR Support company Core Concept Technologies Inc (4371 JP) today announced a large (it ups Real World Float by 64%, and is 33 days of ADV) secondary offering.
- The “reason” for the offering mentions a desire to move to TSE Prime in future.
Zeus Co: Listing of JET Co Japanese Subsidiary and NAV Valuation
- Our NAV valuation of Zeus Co suggests an implied price target of 32,991 won, which is 13% lower than current share price.
- Given the lack of upside, we would avoid Zeus shares at current prices.
- Currently, JET Co is listed on Tokyo PRO Market Exchange. JET Co is expected to switch its listing to the Tokyo Standard Market Exchange.
Zeus Co (079370 KS): Is J.E.T.’s Spin-Off Priced In?
- Zeus Co Ltd (079370 KS), a maker of semiconductor equipment, flat panel display equipment, and facility automation solutions, intends to spin off 95%-held J.E.T. Co (6228 JP) next month.
- J.E.T., a semiconductor etching equipment play, will list on the 25 September. Pricing is expected around the 5 September.
- Zeus’ share price has fallen 33% in the past month. That may be justified.
ARM Holdings IPO: Valuation Insights
- ARM Holdings (1822695D US) is the world’s most widely licensed and deployed processor. Softbank Group (9984 JP) seeks to raise about US$6-10 billion by listing ARM on Nasdaq.
- We previously discussed the IPO in ARM Holdings IPO: The Bull Case and ARM Holdings IPO: The Bear Case.
- Our valuation analysis suggests that the rumoured target valuation of US$60-70 billion is unjustified. Our base-case DCF valuation is US$44.0 billion.
Taiwan Shorts Analysis: AI Supply Chain Stocks With High Short Squeeze Risk
- We analyze the most shorted stocks in Taiwan and highlight notable AI supply chain stocks who have have some of the highest short interest vs. float in the market.
- Gigabyte Technology (2376 TT) , Global Unichip (3443 TT) , Gold Circuit Electronics (2368 TT) , Inventec Corp (2356 TT) , Mitac Holdings (3706 TT) – high short squeeze risk.
- Some Apple (AAPL US) supply chain stocks, Display-related, and Memory-related stocks are also heavily shorted.
Quiddity Leaderboard SET50 Dec 23: JMT Network Addition and Centel Plaza Deletion Likely
- In this insight, we take a look at the potential ADDs/DELs for Thailand’s SET50 index rebalance in December 2023.
- At present, I see JMT Network Services (JMT TB) as an expected ADD and Central Plaza Hotel (CENTEL TB) as an expected DEL.
- Separately, Delta Electronics Thai (DELTA TB) is two trading days away from skipping the MSM list in August 2023 and avoiding deletion in the December 2023 rebalance.
VNG Pre-IPO – The Negatives – Vietnam’s Mini-Tencent
- VNG (VinaGame) (VNG US), Vietnam’s leading internet platform, aims to raise up to US$300m in its US IPO.
- VNG is Vietnam’s leading homegrown digital ecosystem, as per the company, with diverse product offerings across games, communications and media, fintech and other opportunities
- In this note, we talk about the not-so-positive aspects of the deal.
Gogoro: Hunting for a Contrarian EV Buy; Valuing It as a Utility/Infra Business
- We spoke to Gogoro (GGR US), a beaten-down and under-covered Taiwan EV play listed in the US — As part of a hunt for contrarian plays.
- The company has faced headwinds recently, with hardware sales relatively weak vs. its local market. The battery swapping business is compelling and steadily growing however.
- We find the company fairly valued unless it can show more growth — We value it as two parts, a EV 2-wheeler hardware business and an infrastructure-like battery swapping business.
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