In today’s briefing:
- WinSemi (3105.TT): 1Q22 Preview- We Think the Hope Is in 3Q22.
- Bukalapak (BUKA IJ) – Increasing Clarity with a Focus on Category Leadership
- TSMC – Great 1Q But Scope For Further Good News Looks Limited
- Square Enix – Kingdom Hearts 4 and the Implications for Next Year’s Pipeline
- Palm Valley Capital Fund Q1 2022 Commentary
- Money Forward Q1 22 Results: Mixed Quarter but Underlying KPIs Solid
WinSemi (3105.TT): 1Q22 Preview- We Think the Hope Is in 3Q22.
- WinSemi’s revenue was NTD$5.56bn in 1Q22, which was -7.3% YoY and -22.96% QoQ.
- We think WinSemi’s revenue could be seeing upside until 3Q22, and it could be still struggling in 2Q22.
- The optical devices decreased the weakest. The communication infrastructure aligned the supply chain. The handset and WiFi decreased seasonality and the WiFi router was impacted because of chip shortage.
Bukalapak (BUKA IJ) – Increasing Clarity with a Focus on Category Leadership
- Bukalapak’s (BUKA IJ) results saw very strong growth from its Mitra Business, with a much slower marketplace but we see the latter picking up as its specialty strategy is developed.
- The launch of both Allo Bank Indonesia and Allo Fresh over the next two quarters should provide some excitement, whilst its gaming marketplace Itemku is already profitable.
- Take rates should improve in 2022 as Bukalapak (BUKA IJ) offers a broadening array of services across its Mitra and marketplace verticals. Valuations look attractive versus peers.
TSMC – Great 1Q But Scope For Further Good News Looks Limited
- TSMC’s 1Q results were extremely strong with revenue 4.15% above consensus and OP 9.04% above consensus.
- With the strong pricing power and favourable forex factored in consensus OP estimates for the year have moved up to TWD954bn in line with our start of year estimate.
- However, that now leaves limited further upside in our view and we expect earnings to decline next year rather than rise.
Square Enix – Kingdom Hearts 4 and the Implications for Next Year’s Pipeline
- Square Enix held their 20th anniversary event for Kingdom Heart over the weekend announcing a number of mobile titles as well the next mainline title Kingdom Hearts 4.
- While a release date was not offered we would expect a launch during the next fiscal year.
- Just as importantly, the announcement lends added weight to already leaked information on the company’s upcoming pipeline.
Palm Valley Capital Fund Q1 2022 Commentary
- The Palm Valley Capital Fund invests in small cap stocks.
- The Fund is new, its underlying return-based investment strategy is not.
- The past year was the first time ever that aggregate small cap earnings actually achieved the forward estimates established by analysts one year earlier.
Money Forward Q1 22 Results: Mixed Quarter but Underlying KPIs Solid
- Money Forward (3994 JP) posted solid Q1 financial results as revenue growth rebounded and EBITDA losses were within management’s forecast
- But revenue guidance for Q2 was weaker than expected and represents the lowest YoY growth to date which has raised questions on the effectiveness of marketing spend
- Full year guidance remains intact and the company expects that underlying growth in recurring revenue to remain robust which is positive for the long term thesis
Before it’s here, it’s on Smartkarma
