TMT: Bukalapak, Novatek Microelectronics Corp, Adobe Systems, Shopify Inc and more

In today’s briefing:

Bukalapak (BUKA IJ) – Building a Warchest of Ecosystems

Bukalapak (BUKA IJ) is rapidly broadening its exposure to a greater range of services, with the latest move increasing its exposure to gaming, a potential future cash cow.
We have already seen Bukalapak (BUKA IJ) making bold moves into digital banking through Allo Bank Indonesia and a direct commitment to online groceries through AlloFresh with Trans Retail Indonesia.
We continue to focus on the improving fundamentals of Bukalapak (BUKA IJ) and its growing ecosystem and would use any short-term trading anomalies to accumulate the stock.

Novatek’s monthly revenue is increasing above 20% YoY from July 2020. However, the growth trend seems slowing down from 1Q22.
The price for DDIC (Display Driver IC) is the lowest among in the foundry companies’ products although its demand quantity can be large, which gives its actual price bargaining power.
Somehow, the end demand still needs a Display with related ICs for the application. So, there must be some certain suppliers to complete the supply chain.

Adobe’s stock has pulled back 35% since November, a far larger drawdown than megacap software peers on fears of pulled in growth for Creative Cloud.
Weak initial guidance for 2022 was reiterated this past week, implying reacceleration in 2H22.
Price increases should serve as a tailwind in 2H22, providing a good entry point on a quality compounder that is trading at 5 year trough multiples.

Today I will be completing an in-depth analysis on Shopify. Within, I will spend time breaking down the opportunity in front of the company, both broadly within the e-commerce space as a whole, as well as more specifically from a value proposition point of view.
In addition, I will break down the company’s business model, clearly outline how the company makes money, analyze their most recent earnings report, delve into some KPIs and discuss some bear and bull cases that some investors should be wary of going forwards.
As always, the format of this research piece can be seen outlined below, feel free to skip ahead to the sections that you feel will be most useful.

Before it’s here, it’s on Smartkarma