YB new stock pitches (Mon, Sep 14)

High Templar Tech is now essentially an asset-holding company trading near $2.60 per share against roughly $8.60 of net financial assets and $13 of book value per share. Unlike many trapped Chinese cash boxes, it has already returned substantial capital: the company retired 40% of its shares from the start of 2021 through 2025, then bought another 43% of remaining shares for $128 million in a tender, helping lift book value per share 70% since early 2022. Founder and CEO Min Luo now owns about 56% of the economics and controls 92% of the vote, making continued buybacks or an eventual take-private plausible as the roughly 50 million-ADS free float shrinks. Full NAV realization is unnecessary: a takeout at 0.5x net financial assets would imply $4.30 per share, 65% above the current price. The Cayman parent’s cash and demonstrated international borrowing capacity support financing flexibility. Key risks are opaque asset quality and accessibility, stale and weak disclosure, and a take-private below fair value; a 5% position was initiated.

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8x8 appears left for dead at roughly 5x EPS despite improving growth, debt reduction and long-term targets presented on what was announced as a product-innovation call but effectively became an investor day. Management is targeting 8% growth and more than $100M of EBIT by FY30, implying at least $0.60 of EPS versus a $1.80 share price, or about 3x that earnings level. A 10x multiple would produce more than 200% upside. The business is already showing an inflection: last-quarter growth was 8% year over year, revenue guidance was raised, and the usage-based API voice operation — which enables AI agents to create phone numbers and place calls — grew 63%. The company continues to pay down debt and plans to eliminate it within four years, while peers such as RNG, FIVN and BAND have also begun inflecting meaningfully.

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Flitto is a profitable Korean AI training-data provider differentiated by non-Western language datasets, addressing a weakness in LLMs trained largely on English internet content. Revenue grew organically from ₩9.3B in 2021 to ₩36B in 2025, while operating margin improved from -65% to 17% and the company posted its first annual profit. June backlog reached ₩28.3B; the largest customer’s two current contracts expanded from ₩0.6B to ₩8.9B and from ₩10.0B to ₩23.8B, with the latter increased by ₩1.1B on September 2 without changing its September 26 delivery date. This supports the view that most revenue will be recognized in H2, primarily Q3. A deliberately conservative 2026 estimate — assuming no further orders, the worst historical settlement true-down and some margin regression — produces ₩51.5B of revenue, up 43%, and ₩17.4B of net income, valuing shares at 8.7x earnings and 2.7x EV/revenue. The principal risk is customer concentration: one annually renewing US buyer represents roughly half of revenue, despite three consecutive larger renewals.

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