Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 30 years of experience in the Korean/Asian equity research. Major sectors coverage include the following:
- Technology 
- Consumer 
- Special Situations/Deep Value Plays
- Tender Offers/M&As
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

Smartkarma Webinar | Asian SaaS Stars: Embracing the New Leaders

Asian SaaS Stars: Opportunities, Market Outperformance, & Key Challenges

Duzonbizon: Cloud-Based Software Providing an Edge Amidst COVID-19 Carnage

Equity Bottom-Up

<div class="content-highlight"><p><strong>We are starting a new series of insights at Smartkarma called "Asian SaaS Stars."</strong> Atlassian is the first company to be included in this series of insights. The purpose of the Asian SaaS Stars insights is to provide investment analysis of attractive SaaS related companies in Asia (market caps of at least $500 million) and update the changing dynamics of the Asian SaaS industry. We plan to write one or two reports (or more) on the Asian SaaS Stars per month.</p></div><p>In <strong>June 2020,</strong> the company announced its plans to build a new 40-stories headquarters building in Sydney. This new skyscraper which is estimated to cost $1 billion, will be the world’s tallest hybrid timber building and it is scheduled to be completed by 2025. Atlassian has been looking for a <a href="https://www.afr.com/property/commercial/investors-vie-for-500m-slice-of-atlassian-s-pie-20200722-p55ec0" target="_blank" rel="noopener">partner</a> to take at least half of this stake in this building. So it is likely that Atlassian may be required to fund only about half ($500 million) of the total building construction cost. <strong>It is questionable whether this headquarters building construction is in the best interests of the minority shareholders.</strong></p><div class="content-highlight"><p><em><strong>We have labeled this insight as Bearish. </strong>Although Atlassian is one of the biggest companies in Asia that provide SaaS products and services, it is difficult to make a convincing value-based argument in terms of the company's lofty valuation multiples such as EV/Sales and EV/EBITDA. </em></p></div>

We are starting a new series of insights at Smartkarma called "Asian SaaS Stars." Atlassian is the first company to be included in this series of insights. The purpose of the Asian SaaS Stars insights is to provide investment analysis of attractive SaaS related companies in Asia (market caps of at least $500 million) and update the changing dynamics of the Asian SaaS industry. We plan to write one or two reports (or more) on the Asian SaaS Stars per month.In June 2020, the company announced its plans to build a new 40-stories headquarters building in Sydney. This new skyscraper which is estimated to cost $1 billion, will be the world’s tallest hybrid timber building and it is scheduled to be completed by 2025. Atlassian has been looking for a partner to take at least half of this stake in this building. So it is likely that Atlassian may be required to fund only about half ($500 million) of the total building construction cost. It is questionable whether this headquarters building construction is in the best interests of the minority shareholders.We have labeled this insight as Bearish. Although Atlassian is one of the biggest companies in Asia that provide SaaS products and services, it is difficult to make a convincing value-based argument in terms of the company's lofty valuation multiples such as EV/Sales and EV/EBITDA. 

Atlassian

Asian SaaS Stars: #1 Atlassian