TMT: ApeCoin, Keyence Corp, GoTo, Tencent, Meituan, BYJU’S, Mindtree Ltd, Policybazaar and more

• ApeCoin (APE CURNCY) the $4.5bn market cap token is up over 30% this week while the market continues to trade sideways 
• The main upcoming catalyst is the Yugalabs metaverse land mint event that is expected to be on April 23rd, the 1 year anniversary of Yugalabs. 
• Yugalabs is the team behind Bored Ape Yacht Club, and is at the forefront of NFT development. So the market is eagerly awaiting the land mint

• The stock has been hit by rising inflation and interest rates. Now is the time to buy
• Keyence is well placed to weather the storm given it has pricing power, high margins, and low capital intensity
• The P/B valuation of 6x is now back to a normalised range and the stock trades at a discount to global peers. 

• Superapp GoTo (GOTO IJ) made its public debut on the Indonesian Stock Exchange on 11th April. The company set the final IPO price at IDR338 per share.  
• GoTo’s shares surged nearly 23% to IDR416 a piece on the open, boosting the company’s market cap to more than IDR497trn.
• GoTo’s share price has continued to slide and our SOTP valuation suggests that there is further downside.

• Tencent short call at 390-400 is a hold but needs to break below the 351 low for bear traction toward our downside targets at 333 and 320 (bull zone).
• The current flat/trapped range shows resistance at 382 and pivot support at 351/350. Below 350 would open the way lower.
• Re test of the low zone is a buying opportunity for a rally to the 320-30 macro barrier. HK tech index sub 4k buy zone is our long counter balance.

We view Meituan as “Low Risk” on the LARA scale, given the company’s: [1] leading market positions in China’s food delivery as well as the in-store, hotel & travel accommodation industries; [2] increasing market share and scale, which should drive operating leverage; and [3] robust balance sheet, with net cash and a strong liquidity position. Meituan benefits from regulations that restrict aggressive pricing to gain market share. In addition, the company has fast-growing revenue streams across its business segments. However, the credit profile is weighed down by: [1] regulatory headwinds in the food delivery business; and [2] the ongoing losses and cash burn from the company’s community group-buying business.

Our Credit Bias is “Stable”, given the robust business risk profile and strong balance sheet.

• This channel insight focuses on private unicorns backed by Blackrock Inc (BLK US), Tencent (700 HK), Alibaba Group (9988 HK).
• There are indications of organic growth slowing down. Cash burn is probably the only possible way to cross the high operating performance seen during COVID.  
• Investor pressure is mounting, leading to mass hiring or firing in the Industry. 

• MTCL reported a revenue of USD384m (+5.2% QoQ CC) in 4QFY22.
• Reported revenue grew 4.8% (inline), driven by broad-based growth across verticals and regions.
• Deal TCV rose 9% QoQ to USD390m in 4QFY22.

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• Mindtree’s (MTCL) 4QFY22 revenue at US$383.8mn, grew by 5.2% QoQ in CC terms, marking 6th consecutive quarter of 5%+ growth, but was tad lower than our estimate of 6%.
• EBIT margin of ~18.9% was in line, contracting by 30bps QoQ.
• TCV of ~US$390mn (US$375mn in 4QFY21) reflects the need for pick-up in order inflow…(continued).

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• PB Fintech (PBF) is among the leading insurance and lending intermediaries in India.
• It operates principally through its platforms PolicyBazaar/PaisaBazaar, and has also entered into newer businesses.
• PBF is well placed to benefit from the rising insurance penetration in India, especially through digital distribution.

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• Mindtree (MTCL) has reported revenue growth of over 5% QoQ (CC) for the fifth consecutive quarter in Q4FY22.
• Revenue stood at US$384mn, growing at 5.2% QoQ (CC) and 4.8% QoQ (US$) (Isec: 4.9%, Cons: 4.3%).
• Margin performance was impressive with EBIT margin at 18.9%, -30bps QoQ (Isec: 18.1%, Cons: 18.8%), above our estimates.

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.