Daily BriefsTMT/Internet

TMT: Twitter Inc, Excelpoint Technology, Visional Inc, Tencent, Taiwan Semiconductor Sp Adr, SolarEdge Technologies Inc, Kakao Games Corp, Getir Perakende Lojistik AS and more

In today’s briefing:

  • Elon Musk Bids for All of Twitter 🤯
  • WT Micro’s Offer For Excelpoint Tech
  • Visional IPO Lock-Up – Shares Have Performed Well, a Small Lock-Up Expiry to Look At
  • Excelpoint’s Privatisation Offer from WT
  • Valorant’s Regional Parity and Japan’s Emerging Esports Scene
  • TSMC (TSM.US; 2330.TT): 1Q22 Beats Our Forecast; 2Q22 Revenue Is in Line, and GM/OPM Beats Forecast
  • ClearBridge International Growth ADR Strategy Portfolio Manager Commentary Q1 2022
  • Lionheart Studio Getting Ready for an IPO as Early as 2H 2022: A Near-Term Negative for Kakao Games
  • Getir: Turnover Is Vanity, Profit Is Sanity, And Cash Is Reality
  • ClearBridge International Growth EAFE Strategy Portfolio Manager Commentary Q1 2022

Elon Musk Bids for All of Twitter 🤯

By Travis Lundy

  • Elon Musk has apparently sent a letter to Bret Taylor, Chairman of the Board of Twitter, saying he would make a bid for 100% of Twitter at US$54.20/share. 
  • Get it? Get it? Nudge nudge wink wink. That’s all part of the fun for him. 
  • The question is whether this bid, which creates problems of whether one should take it seriously vs literally, or vice versa, engenders more discussion about how the platform makes money.

WT Micro’s Offer For Excelpoint Tech

By David Blennerhassett

  • WT Microelectronics (3036 TT) has entered into an agreement to acquire electronic component distributor  Excelpoint Technology (EXLP SP) by way of a Scheme at a cash consideration of S$1.93/share.
  • This is an Offer premium 7.8% to last close but a 21.4% premium prior to the announcement Excelpoint was in discussions with a third party involving the company’s shares.
  • Albert Phuay (founder and CEO) will reinvest part of his cash consideration under the Scheme in 20% equity of the Acquiring Entity, with the balance 80% stake owned by WT. 

Visional IPO Lock-Up – Shares Have Performed Well, a Small Lock-Up Expiry to Look At

By Clarence Chu

  • Visional Inc (4194 JP) had raised US$609m in its Japan IPO in April 2021, where it had been priced at the top end after books were reportedly multiple times covered.
  • Visional is a HR technology company based in Japan. The company operates BizReach, an online recruiting platform that helps to connect professional job seekers to direct employers and third-party recruiters. 
  • The Pre-IPO shareholder, YJ2 Investment, will be released from its lockup on 16th Apr 2022, 360 days post-listing.

Excelpoint’s Privatisation Offer from WT

By Arun George

  • WT Microelectronics (3036 TT) will offer S$1.93 in cash and a final FY2021 dividend (ex-div date: 28 April, payment date: 13 May) of S$0.088 for a total consideration of S$2.018.
  • The key scheme conditions are shareholder approval and Court approval. The scheme meeting will be held sometime in late June to early July.
  • The offer price represents a 10-year share price high. At the last close of S$1.96, the gross and annualised spread for a mid-Sep effective date is 3.0% and 7.1%, respectively.

Valorant’s Regional Parity and Japan’s Emerging Esports Scene

By Mio Kato

  • We have previously commented on Valorant’s relatively unique position in esports due to its high degree of regional parity and that is being further underscored during its ongoing Masters tournament. 
  • In particular, Japan, a region not known for any particular prowess in FPS titles secured its first top eight position generating significant buzz on twitter in doing so. 
  • The implications look positive here for both Valorant overall and for Japan’s esports ambitions where it is probably now time to truly familiarise yourself with the potential plays.

TSMC (TSM.US; 2330.TT): 1Q22 Beats Our Forecast; 2Q22 Revenue Is in Line, and GM/OPM Beats Forecast

By Patrick Liao

  • The revenue/ GM/ OPM/ EPS/ ROE is USD$17.57b/ 55.6%/ 45.6%/ NT$7.82/ 36.2% in 1Q22. The revenue/ GMO/ OPM is US$17.6-18.2bn/ 56-58%/ OPM: 45-47% in 2Q22 guidance.
  • Moving into 2Q22, TSMC expects their business to be supported by HPC, Automotive related demands, partially offset by smartphone seasonality.
  • The HPC platform is the strongest growing platform and the largest contribution to TSMC’s growth in 2022.

ClearBridge International Growth ADR Strategy Portfolio Manager Commentary Q1 2022

By Fund Newsletters

  • International equities were faced with numerous risks in the first quarter, ranging from resurging COVID-19 cases in large geographies like China to inflation and potential monetary tightening globally
  • Europe was most directly impacted by the conflict as crude oil and natural gas prices spiked and already-challenged supply chains were further pressured
  • One of the key drivers of the rotation from growth to value stocks was action in the bond market

Lionheart Studio Getting Ready for an IPO as Early as 2H 2022: A Near-Term Negative for Kakao Games

By Douglas Kim

  • Lionheart Studio Corp, which is one of the fastest growing game making companies in Korea, is getting ready to complete its IPO as early as 2H 2022. 
  • Lionheart Studio is best known for its popular mobile game Odin which ranked first in app market sales right after its launch in June of last year.
  • Kakao Games’ share price could fall further as some investors that are enthusiastic about Odin would rather invest invest in Lionheart Studio directly rather than in Kakao Games.

Getir: Turnover Is Vanity, Profit Is Sanity, And Cash Is Reality

By Alec Tseung

  • Getir has been one of the hottest tech companies in Europe from Turkey, with its valuation reaching c. $12 billion in March this year.
  • Intense competition has put pressure on the topline. There’s no clear path to profitability in the medium term, as players in the sector are still burning capital to build scale.
  • Future consolidation in the Q-commerce sector is given. Diversification is likely the way forward for current leaders to create more ways to monetize from its users.

ClearBridge International Growth EAFE Strategy Portfolio Manager Commentary Q1 2022

By Fund Newsletters

  • ClearBridge is a leading global asset manager committed to active management.
  • ClearBridge believes Europe has the support structures and spending capacity to avoid a recession and keep an incipient post-COVID-19 recovery intact.
  • We were active in repositioning the portfolio to better manage the volatile risk/reward environment in international markets.

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