Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>For the week, the Nikkei ended up 2.34%, while the Topix gained 2.29%.</li>
<li>Japan's 10-year government bond yield reached six-month highs, exceeding 0.9%, amidst the BOJ's unchanged interest rates.</li>
<li>Shares of Zeon rose by +17% this week after the company reported 4Q3/24 operating profits of ¥4.5 bn, surpassing analyst estimates</li>
</ul>


For the week, the Nikkei ended up 2.34%, while the Topix gained 2.29%.
Japan's 10-year government bond yield reached six-month highs, exceeding 0.9%, amidst the BOJ's unchanged interest rates.
Shares of Zeon rose by +17% this week after the company reported 4Q3/24 operating profits of ¥4.5 bn, surpassing analyst estimates


Japan Weekly | Earnings Reports Dictate Stock Moves

European Event-Driven Analyst

Jesus Rodriguez Aguilar

Event-Driven

<ul>
<li>I Squared and TDR presented a final offer price of €12.78/share in cash, marking a 16.2% increase over their prior bid and surpassing Apollo Global Management's final offer of €12.51/share.</li>
<li>The winning offer values the share capital at €1,649 million (7.3x EV/Fwd NTM EBITDA, 13.2x Fwd P/E), 34% above Apollo's initial offer.</li>
<li>Gross spread is 0.2%. Settlement could happen around 27 May, with 3.7% estimated annual return.</li>
</ul>


I Squared and TDR presented a final offer price of €12.78/share in cash, marking a 16.2% increase over their prior bid and surpassing Apollo Global Management's final offer of €12.51/share.
The winning offer values the share capital at €1,649 million (7.3x EV/Fwd NTM EBITDA, 13.2x Fwd P/E), 34% above Apollo's initial offer.
Gross spread is 0.2%. Settlement could happen around 27 May, with 3.7% estimated annual return.


I Squared & TDR Win the Long Battle for Applus at the Final Auction

Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/astellas-pharma-inc" target="_blank" data-smartkarma-citation="entities:6091:1" rel="noopener">Astellas Pharma (4503 JP)</a> reported ¥85B revenue increase in FY24 over FY23, while Fx impacted the revenue positively by ¥96B. In local currency terms, the U.S. revenue declined 5% YoY.</li>
<li>FY24 operating and net profit declined 80%+, due to amortization and impairment loss of intangible assets. Astellas is changing accounting policy to smoothen core operating and net profits in FY25.</li>
<li>For FY25, Astellas guided for just 3% revenue growth. Core operating profit is expected to decline 10%, while net profit is anticipated to take a bigger hit and decrease 17%.</li>
</ul>



Astellas Pharma (4503 JP) reported ¥85B revenue increase in FY24 over FY23, while Fx impacted the revenue positively by ¥96B. In local currency terms, the U.S. revenue declined 5% YoY.
FY24 operating and net profit declined 80%+, due to amortization and impairment loss of intangible assets. Astellas is changing accounting policy to smoothen core operating and net profits in FY25.
For FY25, Astellas guided for just 3% revenue growth. Core operating profit is expected to decline 10%, while net profit is anticipated to take a bigger hit and decrease 17%.


Astellas Pharma (4503 JP): Fx Drives FY24 Revenue; Impairment Loss Dents Profits; Pain to Continue

Taiwan Tech Focused Senior Analyst

Patrick Liao

<ul>
<li>In 2Q24F, customer demand has slowed down in the traditional low season, as inventory levels normalize.  </li>
<li>In summary, sales in USD are expected to grow in the mid-teens YoY in 2024F. Smartphone growth will be the strongest driver of this growth. </li>
<li>MediaTek is a leader in the Wi-Fi 7 market and aims to gain significant market share with its diverse product portfolio this year.</li>
</ul>


In 2Q24F, customer demand has slowed down in the traditional low season, as inventory levels normalize.  
In summary, sales in USD are expected to grow in the mid-teens YoY in 2024F. Smartphone growth will be the strongest driver of this growth. 
MediaTek is a leader in the Wi-Fi 7 market and aims to gain significant market share with its diverse product portfolio this year.


MediaTek (2454.TT): 1Q24 Results Beat; 2Q24F Revenue Outlook Shows a Flat to Downward Scenario.

Research from Atrium Research, Atrium Research Corporation

Atrium Research

Research from Atrium Research

Atrium Research Corporation

Atrium Research provides institutional quality issuer paid research on public equities in North America. Our investment philosophy takes a 3-5 year view on equities currently being overlooked by the market. Our research process emphasizes understanding the key performance metrics for each specific company, trustworthy management teams, unit economics, and an in-depth valuation analysis. 

Our research product includes in-depth initiation reports, research notes, thematic research pieces, and company fact sheets.

<ul><li>What you need to know: • BQE reported Q4 & 2023 financial results yesterday that came in largely ahead of our expectations on revenue.</li><li> • Proportional revenue was $5.4M compared to our estimate of $4.2M and adjusted EBITDA was $0.5M compared to our estimate of $0.6M. • BQE remains well positioned for another record year in 2024, we are expecting 8% revenue growth and 36% EBITDA growth.</li><li>• We are increasing our target to $71/share based on 11.0x 2025E EBITDA. BQE Water (BQE:TSXV, BTQNF:OTC) reported Q4 and 2023 financial results yesterday after market close.</li></ul>

What you need to know: • BQE reported Q4 & 2023 financial results yesterday that came in largely ahead of our expectations on revenue. • Proportional revenue was $5.4M compared to our estimate of $4.2M and adjusted EBITDA was $0.5M compared to our estimate of $0.6M. • BQE remains well positioned for another record year in 2024, we are expecting 8% revenue growth and 36% EBITDA growth.• We are increasing our target to $71/share based on 11.0x 2025E EBITDA. BQE Water (BQE:TSXV, BTQNF:OTC) reported Q4 and 2023 financial results yesterday after market close.

BQE: Excellent Q4 Financials; Increasing Target Price

Japan Weekly | Earnings Reports Dictate Stock Moves

For the week, the Nikkei ended up 2.34%, while the Topix gained 2.29%. We highlight stocks that performed well during the week.

Mark Chadwick

I Squared & TDR Win the Long Battle for Applus at the Final Auction

I Squared and TDR presented a final offer price of €12.78/share in cash, marking a 16.2% increase over their prior bid and surpassing Apollo Global...

Jesus Rodriguez Aguilar

Astellas Pharma (4503 JP): Fx Drives FY24 Revenue; Impairment Loss Dents Profits; Pain to Continue

For FY25, Astellas Pharma guided for just 3% revenue growth. FY25 core operating profit is expected to decline 10%, while net profit is anticipated...

Tina Banerjee

MediaTek (2454.TT): 1Q24 Results Beat; 2Q24F Revenue Outlook Shows a Flat to Downward Scenario.

Customer demand has slowed in 2Q24F. Sales in USD are expected to grow in the mid-teens YoY and Smartphone growth will be the strongest driver in...

Patrick Liao

BQE: Excellent Q4 Financials; Increasing Target Price

What you need to know: • BQE reported Q4 & 2023 financial results yesterday that came in largely ahead of our expectations on...

Atrium Research

Japan Weekly | Earnings Reports Dictate Stock Moves

For the week, the Nikkei ended up 2.34%, while the Topix gained 2.29%. We highlight stocks that performed well during the week.

Mark Chadwick

I Squared & TDR Win the Long Battle for Applus at the Final Auction

I Squared and TDR presented a final offer price of €12.78/share in cash, marking a 16.2% increase over their prior bid and surpassing Apollo Global...

Jesus Rodriguez Aguilar

Astellas Pharma (4503 JP): Fx Drives FY24 Revenue; Impairment Loss Dents Profits; Pain to Continue

For FY25, Astellas Pharma guided for just 3% revenue growth. FY25 core operating profit is expected to decline 10%, while net profit is anticipated...

Tina Banerjee

MediaTek (2454.TT): 1Q24 Results Beat; 2Q24F Revenue Outlook Shows a Flat to Downward Scenario.

​Customer demand has slowed in 2Q24F. Sales in USD are expected to grow in the mid-teens YoY and Smartphone growth will be the strongest driver in...

Patrick Liao

BQE: Excellent Q4 Financials; Increasing Target Price

What you need to know: • BQE reported Q4 & 2023 financial results yesterday that came in largely ahead of our expectations on...

Atrium Research

Customer demand has slowed in 2Q24F. Sales in USD are expected to grow in the mid-teens YoY and Smartphone growth will be the strongest driver in...