In today’s briefing:
- Sea Ltd.’s Money Machine Is Broken, Downside Is Not Fully Priced-In
- Wiwynn Corp Placement – Selldown’s Timing Is Curious but Previous Deal Had Performed Well
Sea Ltd.’s Money Machine Is Broken, Downside Is Not Fully Priced-In
- Perhaps, misled by the Chinese tech rally due to the change in stance from the Chinese Government, Sea’s shares rose by 33% compared to the broader market’s 8.3%.
- With fundamentals deteriorating and the Federal Reserve signalling an aggressive rate hike outlook, Sea Ltd (SE US)’s 33% move seems unwarranted.
- Meanwhile, the downside potential is quite significant as Sea trades at a significant FY+2 EV/Sales premium to regional peers whose cyclical bottoms are unknown.
Wiwynn Corp Placement – Selldown’s Timing Is Curious but Previous Deal Had Performed Well
- Wistron Corp (3231 TT) aims to raise around US$204m (NT$5.8bn) via selling 3.3% of its stake in subsidiary, Wiwynn Corp (6669 TT) . This would not be a clean-up.
- The timing is curious given Wiwynn having just announced its plans to offer up to 17m new shares in a primary follow-on offer.
- In this note, we will talk about the firm’s track record and run the deal through our ECM framework.
Before it’s here, it’s on Smartkarma
