In today’s briefing:
- New Ruipeng Pet Group Pre-IPO – The Negative – Loss-Making and Cash Burn Could Dampen Ambitions
- Amazon: Recent Quarter Is A Reminder That Red Flags Should Not Be Ignored
- Comcast Corporation: Major Drivers
- Intel Corp: Launch Of 13th Generation Lineup & Other Drivers
- Snap Inc: New Promotional Campaign & Other Developments
- Amazon 4Q22: When Does AWS Trough?
- SAP SE ADR: Launch Of SAP Build & Other Drivers
- ASRT: Looking Ahead to 2023
- Sherwin-Williams: Acquisition Of SIC & Other Drivers
New Ruipeng Pet Group Pre-IPO – The Negative – Loss-Making and Cash Burn Could Dampen Ambitions
- New Ruipeng Pet Group (RPET US) is looking to raise at least US$100m in its upcoming US IPO.
- New Ruipeng Pet Group (Ruipeng) is a pet services platform, primarily offering pet care services, supply chain services and local services, covering the entire lifecycle of pets.
- In this note, we will talk about the not-so-positive aspects of the deal.
Amazon: Recent Quarter Is A Reminder That Red Flags Should Not Be Ignored
- Amazon’s share price has fallen 25% since April of last year, sparking a fear of missing out.
- The pressure for cost-cutting measures will likely increase as profitability and free cash flow remain elusive, according to Amazon.
- Amazon has seen a 25% drop in its share price in January.
Comcast Corporation: Major Drivers
- Comcast achieved a strong result that surpassed Wall Street expectations in terms of revenues as well as earnings.
- The company is slowly growing its ARPU as it is working towards building its customer relationships by steadily introducing new capabilities, services, and benefits.
- In 2023, ARPU growth should continue to be the main factor influencing their residential broadband revenue growth.
Intel Corp: Launch Of 13th Generation Lineup & Other Drivers
- Intel delivered a weak result, failing to meet Wall Street expectations in terms of revenues as well as earnings given the persisting macroeconomic headwinds in the semiconductor industry.
- Intel continues to integrate AXG into CCG and DCAI to deliver a more effective go-to-market capability, accelerating the scale of these businesses while further cutting costs.
- The management believes their first EUV-deploying modes, Intel 4 and 3, will significantly improve transistor performance per watt and density.
Snap Inc: New Promotional Campaign & Other Developments
- Snap continued to encounter massive challenges due to increased competition and macroeconomic headwinds.
- In the quarter, the company released communities to expand its content offerings and onboarded several new media partners.
- The company has also launched new Snapchat+ features to increase audience engagement on the platform in the quarter.
Amazon 4Q22: When Does AWS Trough?
- AWS revenue grew 20% YoY to $21.3B, about $400M or ~2% below consensus…and a 700bp deceleration.
- AWS margins of 24% were down 200bps QoQ / 600bps YoY as continued optimization of customer contracts continues to weigh on margins.
- Amazon advertising continues to dramatically outpace all other online platforms, highlighting the moat of first party data at the point of purchase, unimpacted by Apple.
SAP SE ADR: Launch Of SAP Build & Other Drivers
- SAP delivered a mixed set of results in the final quarter of 2022 as it surpassed the revenue expectations of Wall Street but missed out on earnings.
- This year, cloud revenue also surpassed support revenue to become SAP’s single-largest revenue stream.
- Their overall SaaS and PaaS portfolio grew significantly, with SaaS cloud revenue increasing by 25% and PaaS cloud revenue increasing by 45%.
ASRT: Looking Ahead to 2023
- ASRT has setup 2023 with the potential for growth even though Cambia now has generic competition. ASRT had been mentioning the generic competition for more than a year.
- Looking ahead to 2023, ASRT should benefit from having samples of Otrextup available for physicians.
- Indocin remains the primary revenue generator for ASRT. We are expecting greater revenue contribution from Indocin to offset Cambia
Sherwin-Williams: Acquisition Of SIC & Other Drivers
- Sherwin-Williams’ fourth quarter results were mixed as the company failed to meet the revenue expectations of Wall Street despite a high single-digit percentage sales growth.
- The company managed an earnings beat as a result of the significant year-over-year gross margin improvement.
- Sales in North and Latin America increased by double-digit percentages in the industrial sector, offsetting some of the weaker circumstances in Europe and Asia.
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