In today’s briefing:
- A Modest Proposal to the Nikkei Index Committee for Nikkei 225 Methodology Change
- HPSP IPO Valuation Analysis
- Amplitude: Valuations Look Attractive and Growth Catalysts May Materialize in CY22
A Modest Proposal to the Nikkei Index Committee for Nikkei 225 Methodology Change
- The Nikkei Index team proposed several changes to the Nikkei 225 Average methodology last week. They include capping, a semi-annual (vs annual) review, and a change in “liquidity” measure.
- It helps move membership away from the low price low weight names which populate the bottom of the index. Slowly. 6 names a year. That’s not enough.
- And it doesn’t fix the historical anomalies rendering the index unsuitable as benchmark (and BOJ tool). I propose more changes below. You can submit this or yours in the consultation.
HPSP IPO Valuation Analysis
- Our base case valuation of HPSP is implied market cap of 810 billion won or target price of 38,228 won per share.
- This is 53% higher than the high end of the IPO price range of 25,000 won. Given the solid upside, we have a POSITIVE view of the HPSP IPO.
- Our base case valuation uses our estimated net profit of 79.8 billion won in 2022 and P/E of 10.2x which is the median valuation multiple of its peers.
Amplitude: Valuations Look Attractive and Growth Catalysts May Materialize in CY22
- During the #1 product and growth conference Amplify 2022 in Las Vegas, Amplitude (AMPL US) introduced the Customer Data Platform (CDP) with integrated product analytics.
- The company expanded partner integration with Snowflake Inc (SNOW US) to improve data connectivity while Amplitude Experiment sees strong traction with customers.
- With shares down ~65% YTD, Amplitude has underperformed the Nasdaq Composite (-23%). Our PT is $28.00, implying ~14x EV/2022E revenue and ~10x EV/2023E revenue.
Before it’s here, it’s on Smartkarma
