Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/byd-co-ltd-h" target="_blank" data-smartkarma-citation="entities:20962:1" rel="noopener">BYD (1211 HK)</a> shares had a breakout relative to the MSCI China index and showing good momentum during the low volume days of summer.  
</li>
<li>
<a href="https://www.smartkarma.com/entities/power-assets-holdings-ltd" target="_blank" data-smartkarma-citation="entities:788:1" rel="noopener">POWER ASSETS HOLDINGS (6 HK)</a> has shown a breakout relative to MSCI Hong Kong with a defensive business and 5%+ dividend yield. 
</li>
<li>
<a href="https://www.smartkarma.com/entities/wh-group-ltd" target="_blank" data-smartkarma-citation="entities:13200:1" rel="noopener">WH GROUP (288 HK)</a> has also shown a breakout relative to the MSCI Hong Kong after its announcement of the spinoff of Smithfield Foods in the US. 
</li>
</ul>



BYD (1211 HK) shares had a breakout relative to the MSCI China index and showing good momentum during the low volume days of summer.  


POWER ASSETS HOLDINGS (6 HK) has shown a breakout relative to MSCI Hong Kong with a defensive business and 5%+ dividend yield. 


WH GROUP (288 HK) has also shown a breakout relative to the MSCI Hong Kong after its announcement of the spinoff of Smithfield Foods in the US. 



Technically Speaking, Breakouts and Breakdowns: HONG KONG (July 24)

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Pilgrim's Pride Corporation reported positive financial results for the first quarter of 2024, demonstrating significant growth and operational efficiency despite challenging market conditions.</li><li>The company recorded net revenues of $4.4 billion, marking a 4.7% increase from the previous year.</li><li>Moreover, the adjusted EBITDA reached $372 million, which is a 145% rise compared to Q1 2023, and the adjusted EBITDA margin expanded from 3.6% to 8.5%.</li></ul>

Pilgrim's Pride Corporation reported positive financial results for the first quarter of 2024, demonstrating significant growth and operational efficiency despite challenging market conditions.The company recorded net revenues of $4.4 billion, marking a 4.7% increase from the previous year.Moreover, the adjusted EBITDA reached $372 million, which is a 145% rise compared to Q1 2023, and the adjusted EBITDA margin expanded from 3.6% to 8.5%.

Pilgrim's Pride Corporation: A Story Of Changing Market Dynamics & Industry Positioning! - Major Drivers

<ul><li>The Pilgrim’s Pride Corporation has encountered several ups and downs in the fiscal year 2023.</li><li>The company possessed an impressive net revenue of $4.5 billion in Q4 2023, with an adjusted EBITDA of $310 million and an adjusted EBITDA margin of 6.8%.</li><li>Their revenue for the fiscal year was $17.4 billion, marking an EBITDA of $1 billion and margins of 6%.</li></ul>

The Pilgrim’s Pride Corporation has encountered several ups and downs in the fiscal year 2023.The company possessed an impressive net revenue of $4.5 billion in Q4 2023, with an adjusted EBITDA of $310 million and an adjusted EBITDA margin of 6.8%.Their revenue for the fiscal year was $17.4 billion, marking an EBITDA of $1 billion and margins of 6%.

Pilgrim's Pride Corporation: Initiation Of Coverage - What Is The Core Business Strategy Of This Meat & Poultry Giant? - Major Drivers

US/Europe Event-Driven Analyst

John DeMasi

Event-Driven

<ul>
<li>Cargill/Continental Grain announced joint acquisition of Sanderson Farms on 9th August 2021 for $203/share cash.</li>
<li>Poultry Market in the USA is not concentrated; deal presents little traditional competition risk.</li>
<li>Recent accusations of price-fixing in poultry sector present political risk, but SAFM is cheap even if deal were to get blocked.</li>
</ul>


Cargill/Continental Grain announced joint acquisition of Sanderson Farms on 9th August 2021 for $203/share cash.
Poultry Market in the USA is not concentrated; deal presents little traditional competition risk.
Recent accusations of price-fixing in poultry sector present political risk, but SAFM is cheap even if deal were to get blocked.


Sanderson Farms (SAFM US) – Pending Takeover Offers Favourable Risk/Reward

Director | Exposing Creative Accounting, Bucephalus Research Partnership

Robert Medd

Director | Exposing Creative Accounting

Exposing Creative Accounting

Bucephalus Research Partnership

Bucephalus Research Partnership Limited. Exposing Creative Accounting.

At the Bucephalus Research Partnership (BRP) we analyse financial statements using our accountant's practical experience and our own quantitative algorithms for corporate governance, accounting risk and peer performance.

Our thematic research refines our unique algorithms while our single stock research focuses on examples where we discover a significant gap between published accounts and business reality.

​Bucephalus Research Partnership:
- Is an independent fee-based research service
- Does not take proprietary positions, long or short
- Does not solicit business or fees from the corporates we review

Forensic Accounting

Rural Fund Management (RFM) has recently filed its 2019 accounts with ASIC. They reveal the real quality of the Rural Funds Group (RFF) assets. RFM farms lost money in 3 out of the last 4 years. RFM makes money by paying disproportionately high rents to RFF. These rents boost valuations and so ensure that RFF unitholders pay ever higher fees to RFM.RFM then disguises the subterfuge by paying dividends based on revaluation, not cash, profits. This has left RFM highly levered and it would probably collapse without support from RFF.  We think unitholders have no idea about the risk of the J&amp;F debt they underwrote.  The sale of the poultry operations illustrates the lack of care and maintenance investment, undermines recurring cashflow and confirms our valuation concerns.

Rural Fund Management (RFM) has recently filed its 2019 accounts with ASIC. They reveal the real quality of the Rural Funds Group (RFF) assets. RFM farms lost money in 3 out of the last 4 years. RFM makes money by paying disproportionately high rents to RFF. These rents boost valuations and so ensure that RFF unitholders pay ever higher fees to RFM.RFM then disguises the subterfuge by paying dividends based on revaluation, not cash, profits. This has left RFM highly levered and it would probably collapse without support from RFF.  We think unitholders have no idea about the risk of the J&amp;F debt they underwrote.  The sale of the poultry operations illustrates the lack of care and maintenance investment, undermines recurring cashflow and confirms our valuation concerns.

Rural Funds (RFF AU): Milking Their Investors

United States

Pilgrim's Pride Corporation produces prepared and fresh chicken products in the United States and Mexico.  Through vertical integration, the Company controls the breeding, hatching, and growing of chickens and the processing, preparation, and packaging of its product lines.  Pilgrim's Pride exports its products to Canada, Eastern Europe, the Far East, and other world markets.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Pilgrim'S Pride (PPC US)

Technically Speaking, Breakouts and Breakdowns: HONG KONG (July 24)

BYD Company, Power Assets and WH Group all experienced breakouts during the week. WH Group announced a spin off of its Smithfield Foods business...

David Mudd

Pilgrim's Pride Corporation: A Story Of Changing Market Dynamics & Industry Positioning! - Major Drivers

Pilgrim's Pride Corporation reported positive financial results for the first quarter of 2024, demonstrating significant growth and operational...

Baptista Research

Pilgrim's Pride Corporation: Initiation Of Coverage - What Is The Core Business Strategy Of This Meat & Poultry Giant? - Major Drivers

The Pilgrim’s Pride Corporation has encountered several ups and downs in the fiscal year 2023. The company possessed an impressive net revenue of...

Baptista Research

Sanderson Farms (SAFM US) – Pending Takeover Offers Favourable Risk/Reward

Chicken on Sale! Sanderson Farms trades at much lower multiples than peers and has a pending takeover which could close within months. Even if the...

John DeMasi

Rural Funds (RFF AU): Milking Their Investors

Rural Fund Management (RFM) has recently filed its 2019 accounts with ASIC. They reveal the real quality of the Rural Funds Group (RFF) assets. RFM...

Bucephalus Research Partnership

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)