In today’s briefing:
- A New New Oriental?
- Amazon’s Grubhub Deal Worse for DoorDash than Uber
- XPER: Positive Catalyst to Growth Story
- DELTA: Shortage Issue Still Persists Despite Concerns on Weakening Demand in 2022
- Medy Tox Inc (086900 KS): Legal Battle Continues; Muted Recovery in Export Revenue
A New New Oriental?
- Oriental Selection achieves high-speed user growth through bilingual livestreaming, thanks to Douyin’s algorithmic recommendation mechanism before 6/18 ecommerce, after 6/18 the increase in the follower numbers & GMV dropped sharply.
- The unit price of the product is below average, due to the focus on produce and books, Agricultural livestreaming has always been a difficult to grow category
- 10%-15% Commission is lower than industry average, and subsequent supply chain control and 1st party products have lower margins.
Amazon’s Grubhub Deal Worse for DoorDash than Uber
- Amazon announced a partnership with TKWY’s Grubhub where Amazon Prime members will get one year free of Grubhub+ membership.
- Amazon has the option to take a 2% stake in Grubhub which could grow to 15% depending on performance conditions.
- Deal is a direct shot at DoorDash’s Dashpass subscription program, which is 30% of DASH’s customers and accounts for ~50%? of GOV… expect a price cut to stave off churn.
XPER: Positive Catalyst to Growth Story
- XPER is accelerating its presence within connected TVs with the acquisition of Vewd Software
- Vewd Software is a middleware developer that has been installed in more than 450 million connected TVs and devices.
- The synergistic value of Vewd could be revealed to shareholders in the next 12 to 18 months when XPER begins to monetize Vewd’s install base
DELTA: Shortage Issue Still Persists Despite Concerns on Weakening Demand in 2022
- We maintain our BUY rating and TP of Bt419 based on based on 51.7xPE’22E. Business update meeting last Friday came with positive news on improving shortage situation by 4Q22
- 2Q22E earnings to decline QoQ: We believe that 2Q22E net profit will be at Bt2.7bn (+61% YoY, -4% QoQ).
- We expect 2Q22E sales to be at Bt24bn (+15%YoY, -4% QoQ). QoQ decline is mainly due to lockdown issues in China and longer holidays during 2Q22.
Medy Tox Inc (086900 KS): Legal Battle Continues; Muted Recovery in Export Revenue
- The U.S. International Trade Commission is starting an official investigation based on Medy Tox Inc (086900 KS)’s complaint against Hugel for the alleged theft of its botulinum toxin strain.
- The verdict is expected in H12023. Hugel is expected to receive FDA approval for botulinum toxin by the end of 2022, while Medytox plans to file to FDA in H12023.
- Medytox’s export revenue has still not recovered. However, Q1 sales jumped 25%, on the back of 89% increase in domestic revenue. Medytox shares has declined 20% YTD.
Related tickers: Xperi (TSRA.O), Delta Electronics Thai (DELTA.BK), Medy Tox Inc (086900.KQ)
Before it’s here, it’s on Smartkarma
