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Having been quite busy at my normal day to day job in recent weeks I haven't had much time to focus on further entries or in fact my portfolio as a whole. It was pleasing to see that during this time, both Hi Sun and Sisram seemed to have gained some traction and a sign that the market is starting to recognise that they have both been quite undervalued in recent times.

Hi Sun

The blockbuster announcement by Hi Sun came on 20 January when it announced that Cloopen had filed for IPO in the US. The news was not overly surprising but the timing of the IPO was, I was expecting an IPO at a later date probably towards back end of 2021. I still need to go over the prospectus in more detail but the simple observation is that the last private fundraising of Cloopen was at ~22HKD per share in 2020 and the IPO was set at 124HKD per share (or $16). So almost a 6 fold increase in the value of Cloopen. Post IPO the share price went all the way up to $50 having fallen to ~$25 in the recent equities market sell-off. Hi Sun holds ~17% of Cloopen so based on the ~$25 per share that's approximately ~5bn HKD. As of today, Hi Sun trades at ~5bn HKD (equivalent to HKD 1.82 per share).  

The commentary around Pax and VBill, as well as the net cash position remains unchanged for the investment thesis. Just updating prior valuation for the latest Cloopen information, prices Hi Sun's share conservatively at ~5.30HKD a share and in a more bullish scenario (but still not overly aggressive) at around ~8.50HKD a share. 

Based on prior disclosures, I would expect Hi Sun's results to be published in late February/early March so we are likely to see some of the FV uplift of Cloopen reflected in the financials (or at least properly disclosed if still valued based on the share of profit from associates method).

Sisram

No real official company announcements took place in the last few weeks although there was a promotion announcement for Management in the North America division on 19 January. This was accompanied by a comment from Lior Dayan (CEO of Alma and Sisram) which hinted at good performance in North America in 2020

"Last year displayed unforeseen challenges but the culture that this leadership team has built allowed them to execute effectively to meet record-breaking targets. I anticipate strong continued growth in our North America business with this Executive Management team."

This might have prompted a large increase in the volume of shares traded in Sisram on 21 January, with someone likely taking a sizeable position in the company (10 million share volume that day, 20x typical daily volume in prior months). The volume of transactions has continued in the last month which hopefully is a sign that the company is starting to be more well known across investors in global markets.

I expect results to be published around mid March so we'll see how business is doing. Following the recent surge in share price, I don't see as much upside as for Hi Sun but still see the share price trading below what I think is a conservative target price.