In today’s briefing:
- PC Partner: Record FY21 Results and Strong Dividend. Cash Is 70% of Market Cap. Fair Value 18 HKD.
- Over 300 of Shopee India’s Staff in a Fix as It Checks Out
- YC Doubles the Number of SEA Startups in Latest Cohort
- SIS: Cloud and Cybersecurity Will Be the New Main Focus for Growth
PC Partner: Record FY21 Results and Strong Dividend. Cash Is 70% of Market Cap. Fair Value 18 HKD.
- Pc Partner posted record results with revenue and profits increasing by 99%% and 1,047% respectively. The final 1.61 HKD dividend was below my 2 HKD estimate but still solid.
- Cash grew to 3.1 b HKD vs a market cap of 4.37 b HKD, or 70% of market cap. By end of FY22 cash could be 100% of market cap.
- The outlook is mixed with short-term ASP pressure into 2Q22 but longer-term optimism into 2H22. As always visibility is low but offset by a cheap valuation and large cash buffer.
Over 300 of Shopee India’s Staff in a Fix as It Checks Out
- Shopee India will lay off over 300 staff after it decided to shut down operations in the South Asian country.
- The news came as a shocker to its employees, who were unaware until Monday that the company was wrapping up its business in India, sources told Tech in Asia.
- While the ecommerce firm’s India unit had about 300 employees in December 2021, that number has since gone up to 350 workers, an employee told Tech in Asia on condition of anonymity.
YC Doubles the Number of SEA Startups in Latest Cohort
- Startup enabler Y Combinator has unveiled the 33 Southeast Asian startups that have been included in its latest winter 2022 cohort.
The number is almost doubled from the last batch and amounted to around 8% of the 414 startups that were funded by the accelerator in this cohort.
- As part of the accelerator program, Y Combinator will invest US$125,000 in seed capital for a 7% stake in each startup.
SIS: Cloud and Cybersecurity Will Be the New Main Focus for Growth
- Analyst meeting came out with positive tone. Cloud and cybersecurity businesses should grow rapidly over the next few years.Current inventory stock provides 4 to 6 months buffer from Chinese lockdown
- We believe that cloud and cybersecurity will drive earnings at a CAGR of 18.5% between 2021-24E, led sales growth at 8.6% CAGR and slightly improved margins. Management maintains strong outlook
- We expect 1Q22E earnings at Bt201m(+6%QoQ, +6%YoY)driven QoQ by GPM expansion. We recommend accumulating shares now as earnings in 1H22 should be the lowest of the year due to seasonality.
Before it’s here, it’s on Smartkarma
