In today’s briefing:
- Gungho Is Gungho for Gungho (3765 JP)
- Pan Jit Hostile/Unsolicited Partial Offer for Champion Micro (3257 TT)
- Delhivery Pre-IPO – The Positives – Riding the E-Commerce Boom
- Appier – Baby Thrown Out With the Bathwater Number One
- Top Three Takeaways: Parade Technologies
- Bilibili (BILI): Upgrade to Buy for First Time Before 4Q21 Result
- Tower Semiconductor (TSME.US): To Be Merged by Intel- A Fastest Way, but a Patience Test, Too.
- Green World FinTech Service: Green Light On
- Delhivery Pre-IPO – The Negatives – Not Showing Clear Signs of Delivering Profits
Gungho Is Gungho for Gungho (3765 JP)
- Gungho on Monday announced results, with both revenues and earnings up.
- They also announced a buyback, which at current price means about 2.8% of shares out.
- That doesn’t sound like a lot, but context matters. It may matter a great deal.
Pan Jit Hostile/Unsolicited Partial Offer for Champion Micro (3257 TT)
- Pan Jit International (2481 TT) appears to have launched an unsolicited/hostile partial Tender for 5.0-30.0% of the shares out of power management IC maker Champion Microelectronic Corp (3257 TT).
- The price is near but not at a medium-term (and all-time) high, and is made “for investment purposes but hoping for more.”
- Insiders officially hold ~13.7% of the target. It would seem done, which means a defence effort and/or white knight is not out of the question. We will watch it develop.
Delhivery Pre-IPO – The Positives – Riding the E-Commerce Boom
- Delhivery is looking to raise US$1bn in its upcoming India IPO, the company is backed by a host of financial investors, the largest being Softbank.
- Delhivery is an online logistics service provider which covers express parcel delivery, heavy goods delivery, part truckload (PTL) freight, truckload (TL) freight, supply chain solutions, cross border solutions etc.
- In this note, we talk about the positive aspects of the deal.
Appier – Baby Thrown Out With the Bathwater Number One
- Appier reported 4Q21 results on Monday with revenue beating consensus by 5% and EBITDA beating by 323%.
- The company guided for ¥17.5bn in revenue, above consensus at ¥16.2bn but significantly below our guesstimate of ¥20.8bn.
- However, a close look at trends in the US suggest that our initial estimate remains reasonable enough.
Top Three Takeaways: Parade Technologies
- Revenue growth is slowing and would require additional capacity and new products to re-accelerate core segment growth
- Gross margin expectations are high, leaving very little margin of error
- The near-term revenue growth visibility and medium-term demand outlook remain robust
Bilibili (BILI): Upgrade to Buy for First Time Before 4Q21 Result
- BILI’s stock price has plunged significantly over the past year.
- We believe the revenue growth will be stable in 4Q21.
- We believe all business lines remains promising except for advertising.
Tower Semiconductor (TSME.US): To Be Merged by Intel- A Fastest Way, but a Patience Test, Too.
- Transaction is expected to be immediately accretive to Intel’s non-GAAP EPS. The stock market reacted exciting for Tower raised 42% to reach $47.07 and Intel raised with ~1.8% respectively.
- Tower Semiconductor is emphasized on analog semiconductor specialty foundries. Namely, it’s different from TSMC, UMC and GlobalFoundries, which are focusing on digital products original, and expand into analog afterward.
- Intel wants to march into foundry business and have to count on Tower to bring in such operation know-hows, but Intel has to tolerate a completely different system.
Green World FinTech Service: Green Light On
- Green World FinTech Service (6763 TT) is one of the leading third-party payment solution providers in Taiwanese market.
- The Covid-19 pandemic has accelerated digitisation of the payments industry in Taiwan. This has helped strong growth in top line and margin improvements for the company.
- Though the company seems fairly valued compared to regional and global players, we think further upside is possible given its strong market dominance and demand for fintech in Taiwan.
Delhivery Pre-IPO – The Negatives – Not Showing Clear Signs of Delivering Profits
- Delhivery is looking to raise US$1bn in its upcoming India IPO, the company is backed by a host of financial investors, the largest being Softbank.
- Delhivery is an online logistics service provider which covers express parcel delivery, heavy goods delivery, part truckload (PTL) freight, truckload (TL) freight, supply chain solutions, cross border solutions etc.
- In this note, we talk about the not so positive aspects of the deal.
Before it’s here, it’s on Smartkarma
