Market Movers - 7 December 2024
Stocks covered: NU, NIO, ADYEN, SE, INPST, APR.WA
Welcome back to the Wolf of Harcourt Street Newsletter.
Market Movers is your time-saving guide to crucial stock news, cutting through the noise.
With all that being said, let’s dive into today’s edition!
Todays Agenda
Nubank Partnership with Puntored in Colombia
NIO November 2024 Delivery Update
Adyen 3 New Partnerships
Sea Limited Vietnam Bans Temu and Shein
InPost Extends Partnership With Newcastle United
Auto Partner November Sales Update
1. Nubank (NU) Partnership with Puntored in Colombia
Nu Colombia has partnered with Puntored to enable free cash deposits into Nu accounts at over 15,000 locations nationwide, covering 100% of Colombian municipalities.
Puntored specializes in providing financial services to underbanked individuals in rural and isolated areas, aligning with Nu’s mission to increase accessibility to banking services.
This collaboration strengthens Nu's position as a transactional account provider through the integration of new features:
Cash Deposits: Free deposits via Puntored’s network.
PSE Payments: Integration with Colombia's electronic payment system.
Nu Placa: A unique identifier for instant, secure, and private account transfers.
Source: Latam List
My Perspective: This partnership establishes Puntored as Nu’s first banking correspondent in Colombia and mirrors its expansion strategy in Mexico, where it recently partnered with FINABIEN to enhance financial accessibility. Despite entering Colombia in 2020, Nubank has already reached 2 million customers, underscoring its rapid growth trajectory.
2. NIO (NIO) November 2024 Delivery Update
NIO delivered 20,575 vehicles in November 2024, a 29% increase compared to November 2023. With one month remaining in Q4, NIO's deliveries total 41,551 vehicles. As of November 30, 2024, the company has delivered a cumulative 640,426 vehicles.
Source: NIO IR
My Perspective: NIO’s Q4 guidance, issued during the Q3 earnings release, projected deliveries of 72,000 to 75,000 vehicles. To meet this, December deliveries would need to range between 30,449 and 33,449—a highly ambitious target that seems increasingly unlikely to materialize.
3. Adyen (ADYEN) 3 New Partnerships
Doctolib
Adyen and Doctolib, a leader in European digital healthcare, have partnered to deliver innovative financial services for medical professionals. The collaboration began in France and Italy, with plans to expand into Germany and other European countries.
Doctolib will use Adyen's payment solutions to offer online payment systems and embedded financial products, streamlining financial management for medical professionals. This reduces administrative burdens, enabling them to focus more on patient care. Patients can save payment methods in the Doctolib app, making payments for consultations seamless and reducing reliance on cash or physical cards.
Source: Adyen IR
My Perspective: Adyen’s Europe-exclusive data centres, meeting Doctolib’s strict data protection standards, stood out as a key advantage—a unique selling point I hadn’t previously considered.
Tripla
Adyen has partnered with Tripla, a Tokyo-based hotel solutions provider, to enhance payment processing for accommodation facilities using Tripla’s ‘tripla Book’ reservation engine.
Through Adyen’s single platform, Tripla will manage advance payments for room reservations and cancellation fees via credit card. The platform consolidates domestic and international payment data while supporting multi-currency transactions.
The ‘tripla Book’ reservation engine simplifies bookings to as few as two steps and supports advance payments. Guests benefit from real-time optimal exchange rates for multi-currency payments.
Additionally, Tripla’s ‘tripla Pay’ feature offers a “Pay by Link” service to collect cancellation fees, addressing the issue of unauthorized cancellations.
Source: Adyen IR
My Perspective: Adyen and Tripla are well-positioned to capitalize on the growing inbound travel demand in Japan and the broader Asia-Pacific region. By offering innovative payment solutions, the partnership aims to enhance customer experiences, reduce financial risks for hotels, and support the global expansion of Japanese accommodation facilities.
Intuit
Intuit Inc. and Adyen have partnered to integrate Adyen’s embedded payment services into Intuit’s QuickBooks Online, targeting the UK market. This partnership aims to simplify electronic payments for small and mid-sized businesses (SMBs).
UK SMBs lose an average of £22,000 annually to late payments, contributing to 50,000 business closures each year. Faster payments could boost the UK economy by £2.5 billion annually. Adyen’s UK banking license and real-time payment rails (Faster Payments Service) will help SMBs receive funds faster, improving cash flow stability.
Adyen’s integration automates financial processes, reducing manual errors and simplifying accounts receivable tracking. SMBs can offer customers diverse payment methods, including bank transfers and card payments, reducing friction. Real-time insights into revenue and cash flow further streamline bookkeeping and financial management.
Source: Adyen IR
My Perspective: Intuit QuickBooks serves 6.5 million subscribers globally and processes 2.9 million invoices monthly in the UK, making this a significant win for Adyen. It also sets the stage for future innovations in embedded financial services, solidifying both companies’ positions in the SMB-focused fintech space.
4. Sea Limited (SE) Vietnam Bans Temu and Shein
Vietnam has suspended the operations of Chinese online retailers Temu and Shein after they missed the government’s deadline to register their operations by the end of November.
Temu has submitted registration documents, which are under review, but the timeline for resuming operations remains unclear. Similarly, Shein is working on registration, but its Vietnamese website is currently unavailable. Customers can, however, still shop through Shein’s international platform.
Authorities are concerned about the impact of foreign platforms’ deep discounting on domestic businesses and the potential sale of counterfeit goods.
Recently, Vietnam’s parliament passed legal changes requiring foreign e-commerce platforms to pay VAT and eliminating tax exemptions for low-cost imported goods, which had benefited platforms like Temu and Shein. These measures aim to level the playing field for local businesses and increase tax revenues.
Source: Reuters
My Perspective: These suspensions and new tax requirements will undoubtedly disrupt the business models of foreign e-commerce platforms in Vietnam. This should directly benefit Shopee, which already holds over two-thirds of the e-commerce market share in the country.
5. InPost (INPST) Extends Partnership With Newcastle United
Newcastle United and InPost have extended their partnership after a successful first year marked by innovative community initiatives.
Notably, InPost installed custom parcel lockers at St. James’s Park, the first at a Premier League stadium. These lockers enhance Newcastle United’s e-commerce offerings, allowing fans to receive online deliveries conveniently at any UK locker.
Source: Newcastle United
My Perspective: This partnership highlights the mutual growth ambitions and shared values of both organizations. For InPost, rapidly scaling in the UK, such collaborations are crucial for building brand recognition and fostering community connections.
6. Auto Partner (APR.WA) November Sales Update
Auto Partner reported November 2024 revenue of PLN 340.3 million, reflecting a 5% year-over-year increase. On a cumulative basis, 2024 year-to-date revenue stands at PLN 3.84 billion, representing a 13% YoY increase.
Source: Bankier
My Perspective: Auto Partner’s monthly sales continue to exhibit variability. For instance, October’s sales growth was 14%, compared to just 5% in November. While these updates provide useful insights, investors should prioritise the long-term trend over fluctuations in monthly performance.
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Happy investing
Wolf of Harcourt Street
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Twitter: @wolfofharcourt
Email: wolfofharcourtstreet@gmail.com