Recent Asian-listed tech stock earnings have been vastly different this year. Investors are happy to reward business management that cuts costs and promises to improve profitability. At the same time, it punishes companies that fail to meet the expected targets.
Recent winners Covering many companies such as “Grab”, a Singaporean technology platform, and “Kupang”, a well-known e-commerce company in South Korea, by Kupang, whose stock price rose dramatically in 2021 before plunging the following year. As investors shift their focus from startups’ long-term commitments to the heart of how these companies do business instead: profitability.
“Companies focus on operations. causing investors to focus on making profits Or offer a reliable way to lead to profit. while also trying to maintain sustainable business growth,” said Mark Feightney, Chief Technology Officer. JP Morgan’s Asia-Pacific Media & Telecommunications Interview with Nikkei Asia
Grab’s share price rose 15.2% through Jan. 27 after the company announced measures to cut costs. Including delaying employment Delaying salary increases for senior managers Reduce travel budgets and other expenses Grab’s share price has been on an upward trend since last October after the company announced plans to turn its earnings into a breakeven point. within the second half of 2024
On Jan. 15, Morgan Stanley gave Grab an “overweight” rating and ranked the company as the most preferred stock. Among Southeast Asian technology firms that lost money included Singapore’s Sea, GoTo and Indonesia’s Blibli.
This month, Morgan Stanley also upgraded its GoTo rating to “equalweight” from “underweight the Indonesian conglomerate’s share price. It has risen 28.6 percent this year after it cut 12 percent of its workforce and sold its stake in a local retailer.
as well as Kupang stocks which rebounded 13.6% this year in November The company, which is financed by SoftBank. Reports third quarter net profit Net profit ended Sept. 30 was $90 million, down from a $323 million loss in the same period a year earlier.
It was the company’s first quarterly earnings report since its initial public offering (IPO) in 2021 and reflected the South Korean e-commerce firm’s efforts to turn around. profit and stimulate investment in expanding delivery networks including in Japan
But not all newly-listed companies are quick to change their business practices. In the case of Zomato, the Indian food-delivery app, its stock dropped 20.8% year-to-date Jan. 30. . ) Shares
GoTo and Grab shares are still 60% below the listing price, while Kupang and Zomato shares are trading 50% and 30% below their initial share price, respectively.
“Paul Go” Head of IPO World from consulting firm EY said, “The launch of stock sales in 2021 causes more volatility in stock prices. Due to geopolitical conflicts, inflation and rising interest rates. Also, the stock market is weak. The valuation and share price after the sale therefore undermines investor confidence.
Refinitive data indicates that the global IPO market last year collapsed. It tumbled 64% to just $148 billion, with Asian markets accounting for about 70% of funding, but listed firms still struggle to survive after IPOs.
With such a difficult situation Causing some startups to postpone their IPOs last year. like in Japan
AnyMind Group, a marketing technology company Suspend IPO in December on Tokyo Stock Exchange Considered to postpone the IPO for the second time.
boAt, an Indian apparel startup Suspend plans to sell shares in Oct. and instead raised $60 million in capital from private investors.
While the outstanding IPOs in the Hong Kong stock market were not as bright as last year. It’s the worst IPO in a decade. On the first day of the stock market open, Zhejiang Leapmotor Technology, a Chinese electric vehicle manufacturer. It fell nearly 34% from its IPO opening price of 48 Hong Kong dollars. (US$6)Stock
Onewo Space-Tech Service, the Chinese real estate affiliate of Vanke, fell 6.8 percent.
But China’s opening up faster than many countries had anticipated would help stave off economic damage and prevent further plunging in business profits.
However, “Peggy Mack”, investment portfolio manager from Haven Capital, commented in a warning manner that The IPO market may not be as smooth as many expected. especially for the Chinese market as well as predicting that Internet platform companies continue to face scrutiny and close scrutiny, and companies in the group continue to downsize their businesses.
