In today’s briefing:
- Ya Gotta Have Faith (4295). Or Not. Chance for Someone To Get A Big Position in a Net Cash Co
- SMIC (981.HK): The Overall Demand Situation Is Growing Up in 2022.
- TME – Miss on Revenue and Margins; Earnings Continue to Remain Under Pressure
- Affirm Raises Outlook For FY 2022: No Changes In Bullish Narrative
- Money Forward (3994): Large Additional Investment in Indonesian SaaS Company
Ya Gotta Have Faith (4295). Or Not. Chance for Someone To Get A Big Position in a Net Cash Co
- Faith Inc (4295 JP) is a very smallcap contents management and platform business. As a business, one could give it a miss forever, but it is cash-rich.
- The company is doing a very large buyback, and for someone who decided they’d be interested, there is a large block for sale.
- The thing is… one would have to act quickly and aggressively.
SMIC (981.HK): The Overall Demand Situation Is Growing Up in 2022.
- SMIC reported revenue/GM were US$1,869/40% for revenue/GM in 1Q22 respectively. The revenue matched to our expectation, but the GM was exceeding ~8% versus guidance.
- The outlook is a little bit lower than our expectation for revenue/GM to be US$1860-1,897/37-39% in 2Q22 guidance.
- The overall demand situation is growing up although inflation, Russia-Ukraine war, and other factors may affect.
TME – Miss on Revenue and Margins; Earnings Continue to Remain Under Pressure
- Tencent Music (TME US) reported 1Q2022 results today. Revenue declined 15% YoY to RMB6.64bn (vs consensus RMB6.69n) while reported OP dropped 35.7% YoY to RMB749m (vs consensus RMB817m).
- Revenue from Online music services declined YoY for the first time since 2017 while revenue from Social Entertainment services further declined during the quarter.
- We expect TME’s earnings to remain under pressure with increased competition and regulatory restrictions on livestreaming sector.
Affirm Raises Outlook For FY 2022: No Changes In Bullish Narrative
- Fintech unicorn could report strong earnings results for FY Q3 2022. Total revenue increased by 54% year-over-year, and net loss narrowed to ~$55M for the reporting period.
- Affirm Holdings (AFRM US) closed a $500M revolving ABS deal and added $2.5B in new funding capacity from various partners. Total funding capacity was ~$9B, marking a 55% YoY increase.
- Sovereign wealth fund GIC Singapore acquired ~$126 million worth of Affirm Holdings (AFRM US) shares in April at an average of $33.00 per share.
Money Forward (3994): Large Additional Investment in Indonesian SaaS Company
- The company has made multiple investments in Mekari since its first investment in 2018
- This investment is a large one, equivalent to approximately 6.2bn yen. We understand that the largest investment the company has made in the past was approximately 3.4bn yen in Smartcamp (a consolidated subsidiary).
- The company’s balance sheet at the end of 1Q FY11/22 showed 5.4bn yen in investment securities and 4.8bn yen in goodwill
Before it’s here, it’s on Smartkarma
