In today’s briefing:
- Lasertec – A Miss At Stratospheric Valuations But That Isn’t Even The Biggest Problem
- Meituan Shuts Community Group Buying in Beijing – A Late Realisation That Profits Are Not Easy
- End of Mandatory Lock-Up Periods for 40 Companies in Korea in May 2022
- Intel 1Q22: Unexplained Optimism
Lasertec – A Miss At Stratospheric Valuations But That Isn’t Even The Biggest Problem
- Lasertec’s 3Q disappointed as revenue of ¥16.6bn materially undershoot consensus estimates of ¥26.6bn but given quarterly volatility in deliveries and acceptances that is understandable.
- What is more concerning is the emerging picture of gross margin decline which the company had previously warned about.
- Given inflated valuations these small negatives together with no guidance raise could drive a continued correction.
Meituan Shuts Community Group Buying in Beijing – A Late Realisation That Profits Are Not Easy
- Caixin reported on Wednesday that Meituan (3690 HK) has shut down community-group service (Meituan Select) in Beijing following news that the company plans to shut down operations in loss-making cities.
- Community-Group buying (CGB) became popular in China in 2020 and Meituan entered the market in 3Q2020 and continues to spend heavily on the biz.
- The market became heavily competitive in the form of price war, which attracted regulatory scrutiny and led to large players like Alibaba and JD.com opting out of the market.
End of Mandatory Lock-Up Periods for 40 Companies in Korea in May 2022
- In this insight, we discuss end of the mandatory lock-up periods for 40 stocks in Korea in May 2022, among which 4 are in KOSPI and 36 are in KOSDAQ.
- These 40 stocks on average could be subject to further selling pressures in May and could underperform relative to the market.
- Among these 40 stocks, the following stocks such as Kakao Pay, Enchem, DearU, and 4by4 could face further selling pressures in the coming weeks.
Intel 1Q22: Unexplained Optimism
- Inline quarter, though margins continue to decline on market share loss and ramping new nodes.
- Intel is overly optimistic about PCs rebounding in the 2H; 2021’s 15% growth is not sustainable.
- Intel maintained its full year revenue guidance and increased its EPS despite lowering 2Q’s guidance. This implies an acceleration in the back half. We find that overly optimistic
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