In this briefing:
- LG Electronics – Boost from Higher Dividends, Air Motion Technology, & The War Against Huawei
- Futu Holdings Pre-IPO – FY18 Updates And Quick Thoughts on Valuation
1. LG Electronics – Boost from Higher Dividends, Air Motion Technology, & The War Against Huawei
- In this report, we provide an update on Lg Electronics (066570 KS), including the potential impact of the war on Huawei on the company, dividend policy, debt issue, sales of non-core assets, and the launch of new smartphones.
- Although LG’s V50 ThinQ product is a bit disappointing, another new LG smartphone called G8ThinQ appears to be promising. This is one of the first smartphones to use “air motion” technology to activate some of the features including playing a song or video or adjusting volume (remember Tom Cruise in the movie Minority Report)? The airmotion technology could bring back the “thrill” of using a smartphone.
- Many investors around the world are asking, “What companies will benefit from the continued war on Huawei by the US government?” LG Electronics, the 7th largest smartphone maker globally, could be one of the key beneficiaries of the war on Huawei.
- LG Electronics recently announced that it will pay DPS of 750 won for its common shareholders in 2018, which is nearly twice as high the DPS of 400 won in 2017.
2. Futu Holdings Pre-IPO – FY18 Updates And Quick Thoughts on Valuation
Futu Holdings Ltd (FHL US) plans to raise around US$300m in its US IPO. The company is backed by Tencent Holdings (700 HK) , Matrix Partners and Sequoia.
In my earlier insight, Futu Holdings Pre-IPO – Great Metrics but in a Commoditised Industry, I looked at the company’s background and past financial performance along with some of the other firms that are competing in the same space.
This insight covers the positive and negative takeaways from the FY18 updated filing and also includes our thoughts on valuation.
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