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Key points
- These 2 ASX tech shares might be opportunities to consider in February 2022
- The ASIA ETF has some of Asia's strongest tech players. China continues to see more digital services
- The Kogan share price has dropped heavily in recent months, Credit Suisse thinks it looks good value
Lots of ASX tech shares are currently on sale after share market volatility in recent weeks and months.
Just because a business drops in value doesn't automatically make it worth pursuing. However, if businesses are growing then they could be attractive opportunities.
With that in mind, here are two ASX tech shares to consider:
Betashares Asia Technology Tigers ETF (ASX: ASIA)
This is an Asia-focused exchange-traded fund (ETF) that gives investors exposure to many of the leading tech businesses outside of Japan.
We're talking about names like Taiwan Semiconductor Manufacturing, Samsung, Tencent, Alibaba, Meituan, Infosys, JD.com, Pinduoduo and Netease.
Many of these businesses are the dominant players at what they do in China or the wider Asian region. Samsung is one of the global leaders of smartphones and other household appliances. The global tech supply chain relies heavily on Taiwan Semiconductor Manufacturing.
Specifically in China, the two companies of Tencent and Alibaba dominant industries like cloud computing, gaming, e-commerce, social media and communication.
Over the last year, the ASIA ETF has dropped more than 33%.
BetaShares says that due to its younger, tech-savvy population, Asia is surpassing the West in terms of technological adoption and the sector is anticipated to remain a growth sector.
The ASX tech share has an annual management fee of 0.67% per annum.
Kogan.com Ltd (ASX: KGN)
Investors continue to punish the e-commerce business. The Kogan share price is down 28% this year and 64% over the last year.
The business is hurting from higher costs, such as its supply chain with increased logistics costs, and recent sales growth hasn't been as much as some investors were hoping.
However, the broker Credit Suisse currently rates the ASX tech share as a buy, with a price target of $9.16. That's a potential increase of more than 40% over the next 12 months. Credit Suisse thinks that the business is still a buy due to the drop in the share price.
On Credit Suisse's latest numbers, the Kogan share price is now priced at 21x FY23's estimated earnings.
Looking at the adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for the first half of FY22, Kogan.com's adjusted EBITDA was down 70.1% to $14.6 million whilst overall adjusted EBITDA was down 58% to $21.7 million thanks to the inclusion of Mighty Ape.
Kogan continues to invest heavily in marketing to grow the platform.
However, there was growth in several other areas. Kogan.com's active customers increased 10% year on year to 3.3 million. Kogan First members went up 176% year on year to 274,000. Gross sales went up 9% year on year to $698 million. Kogan Marketplace gross sales rose 28.7% year on year to $221.1 million.
At 31 December 2021, the company had net cash of $39.7 million.
