Smartkarma Daily Briefs

Solactive has announced the constituent changes for the Global Uranium & Nuclear Components Index with implementation at the close on 31 July.
Oklo (OKLO US) and Western Uranium & Vanadium (WUC CN) will be added to the index. Estimated one-way turnover is 7.9% resulting in a round-trip trade of US$486m.
There are only 4 trading days to implementation of the changes and we’d watch out for big moves on stocks that have more than 2x ADV to trade.

India: Potential Free Float Changes & Passive Flows in August

Companies in India have disclosed their shareholding pattern as of end-June in July. There are companies with significant float changes from end-December and/or end-March.
The changes in free float could be reflected in domestic and global indices over the next few weeks and months resulting in action from passive trackers.
Depending on the date that the shareholding was published, there could be 12 stocks with passive inflows from global trackers while 5 could see passive outflows in August.

CPMC (906 HK): Champion’s Offer Now Open. But All Eyes On ORG’s Tilt

Back on the 6th December 2023, packaging play CPMC Holdings (906 HK) announced a pre-conditional Offer of $6.87/share, in cash, from SASAC/NCSSF-backed Champion.
The Offer Document is now out. This is not a Composite Document. A “Response Document” is expected in two weeks, which will include the IFA opinion.
All the above is moot. ORG Technology Co., Ltd. A (002701 CH)‘s superior HK$7.21/share Offer is currently navigating the necessary regulatory approvals. With irrevocables, ORG has 46.44% in the bag.

Ola Electric IPO – RHP Updates – Growing Faster than Expected, Driven by GoI Policy

By Sumeet Singh

Ola Electric is now looking to raise about US$730m in its upcoming India IPO.
Ola Electric Mobility is a vertically integrated pure EV player in India with manufacturing capabilities for EVs and EV components, including cells.
In our previous notes, we looked at the company’s performance, undertook a peer comparison and talked about valuations. In this note, we look at the updates from its recent filings.

STAR100 Index Rebalance Preview: Potential Adds Diverge Further from Potential Deletes

The review period for the September rebalance ends 31 July. We expect the changes to be announced 30 August with the implementation taking place after the close on 13 September.
We forecast 6 changes for the index, including migrations between the STAR100 Index and the STAR50 INDEX. There is uncertainty for a few adds given profitability (or lack of it).
The outright potential adds have outperformed the outright potential deletes since the start of the calendar year with 12% outperformance in just the last 3 weeks.

Ola Electric: India’s First EV IPO – Key Facts, Financials & Valuation

By Devi Subhakesan

Ola Electric (1700674D IN) , India’s leading electric 2-wheeler backed by Softbank Group ‘s Vision Fund, will launch its USD 735 million IPO on Friday, August 2.
The IPO pricing suggests a post-money equity valuation of around USD 4 billion, significantly lower than its earlier funding levels.
Government incentives for EVs are being revised, with the current scheme valid only until the end of September, creating uncertainty that has possibly impacted valuations.

Reservoir Hogs: WH Group (288 HK) Mulls US/Mexican Spin-Off

Earlier this month, WH Group (288 HK) announced it had submitted a plan to spin-off its Smithfield US and Mexican ops on the NYSE or NASDAQ,
These ops accounted for 54% of WHG’s FY23 revenue and 22.4% of the operating profit; compared to 56% and 44.9% respectively in FY22.
We’ve been here before. A Smithfield spin-off was touted in 4Q23 (in the media). WHG acquired Smithfield for US$4.7bn in 2013, ahead of its 2014 listing.

Block Deal Sale Of 2.3% Stake in Woori Financial and Highlights of Its Corporate Value Up Program

By Douglas Kim

On 30 July, it was reported that IMM Private Equity (PE) sold a 2.3% stake (16.78 million shares) of Woori Financial Group (WFG), which was worth 264 billion won.
Block deal sale price was 15,737 won (0.4% higher than current price). Today’s block deal sale represents a second block deal sale of Woori Financial by IMM PE in 2024.
Under the mid-to-long term Value Up program, Woori Financial Group aims to achieve a sustainable ROE of 10% and total shareholder returns of 50%.

Quiddity Leaderboard ES50 Sep 24: Billion Dollar Flows Now in the Money

By Janaghan Jeyakumar, CFA

The ES50 Index is one of the most highly-tracked indices in Europe and the annual index review takes place in September every year.
In this insight, we take a look at Quiddity’s estimation of the latest ranks of potential ADDs and DELs for the upcoming index rebal event in September 2024.
We have been tracking these movements for several months and it seemed like index changes were unlikely to take place but our expectations have changed now.

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Jul 31

Daily Brief Industrials: Symbotic, Ador Welding, ZTO Express Cayman , Naigai Trans Line and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

SYM: Now a General Contractor?
Ador Weldings Ltd- Forensic Analysis
Monthly Chinese Express Tracker | Strong June Volume | Weak Pricing and Intl | (July 2024)
Naigai Trans Line (9384 JP): 1H FY12/24 flash update

SYM: Now a General Contractor?

By Hamed Khorsand

SYM had an increase in system costs. SYM’s management highlighted delays in construction of systems in the quarter resulting in the Company to taking back EPC work.
SYM suggests bringing the EPC work in-house would be more efficient. We do not agree. This creates additional headwinds as to timing and could create a new risk for SYM.
During the earnings call, SYM’s management referred to delays in permits and product delivery resulting in people not having anything to do. This is a characterization of a construction/contracting company.

Ador Weldings Ltd- Forensic Analysis

By Nitin Mangal

Ador Welding (AWL IN) is a renowned player in the business of manufacturing and trading of welding and related products.
The company sells welding consumables, equipments and also does preoject-engineering. While the company has seen recent growth in topline, there are few forensic checks that one must be cautious about.
This relates to accounting policy relating to Flares segment, lack of conservatism relating to ECL provisioning and depreciation, troubles in generating cash, etc.

Monthly Chinese Express Tracker | Strong June Volume | Weak Pricing and Intl | (July 2024)

By Daniel Hellberg

Parcel volume growth remained strong in June, but ASPs weakened (again)
YTO Express seems to be managing price / volume tradeoff competently
Year-To-Date, only YTO shares up > 10%; three companies down -10% or more

Naigai Trans Line (9384 JP): 1H FY12/24 flash update

Sales rose to JPY17.2bn (+6.1% YoY), driven by strong overseas subsidiaries and a weaker yen.
Operating profit decreased to JPY1.9bn (-15.3% YoY) due to increased SG&A expenses and reduced high GPM LCL export cargo.
Overseas segment sales grew to JPY6.0bn (+30.2% YoY), with solid warehouse operations in India and South Korea.

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Jul 31

Daily Brief Energy/Materials: CPMC Holdings, DSM-Firmenich, Gold, TotalEnergies, Richards Packaging Income Fund, Cabb, Trigon Metals , Fedrigoni, New Zealand Energy and more

By Smartkarma Daily Briefs | Daily Briefs, Energy & Materials Sector

In today’s briefing:

CPMC (906 HK): Champion’s Offer Now Open. But All Eyes On ORG’s Tilt
CPMC Holdings (906 HK): Poker Face off as Changping Industrial Launches Offer at Unchanged Terms
Quiddity Leaderboard ES50 Sep 24: Billion Dollar Flows Now in the Money
Global Commodities: Gold & Silver—Citius, Altius, Fortius
[Earnings Review] TotalEnergies Misses Estimates on Lower Sales and Shrinking Margins
Richards Packaging Income Fd (RPI.UN) – Monday, Apr 29, 2024
CABB – ESG Report – Lucror Analytics
TM: FY24 Financials Improve with Costs Decreasing
Fedrigoni – ESG Report – Lucror Analytics
New Zealand Energy Corp. (TSX-V: NZ): Increasing Domestic Natural Gas Prices. Tariki-5 to Spud in September

CPMC (906 HK): Champion’s Offer Now Open. But All Eyes On ORG’s Tilt

Back on the 6th December 2023, packaging play CPMC Holdings (906 HK) announced a pre-conditional Offer of $6.87/share, in cash, from SASAC/NCSSF-backed Champion.
The Offer Document is now out. This is not a Composite Document. A “Response Document” is expected in two weeks, which will include the IFA opinion.
All the above is moot. ORG Technology Co., Ltd. A (002701 CH)‘s superior HK$7.21/share Offer is currently navigating the necessary regulatory approvals. With irrevocables, ORG has 46.44% in the bag.

CPMC Holdings (906 HK): Poker Face off as Changping Industrial Launches Offer at Unchanged Terms

By Arun George

Changping Industrial’s offer for CPMC Holdings (906 HK) opens at an unchanged HK$6.87, 4.7% below ORG Technology Co., Ltd. A (002701 CH)’s competing HK$7.21 offer.
Changping Industrial thinks deal fatigue may tip the balance in its favour. However, minorities will call Changping’s bluff, as the offer at current terms has a low chance of success.
Despite the current posturing, Changping Industrial will likely need to bump above ORG’s offer marginally to succeed. Expect more twists and turns in this contested battle.

Quiddity Leaderboard ES50 Sep 24: Billion Dollar Flows Now in the Money

By Janaghan Jeyakumar, CFA

The ES50 Index is one of the most highly-tracked indices in Europe and the annual index review takes place in September every year.
In this insight, we take a look at Quiddity’s estimation of the latest ranks of potential ADDs and DELs for the upcoming index rebal event in September 2024.
We have been tracking these movements for several months and it seemed like index changes were unlikely to take place but our expectations have changed now.

Global Commodities: Gold & Silver—Citius, Altius, Fortius

By At Any Rate

Fed is expected to start easing cycle in September, potentially leading to a bullish trend for gold and silver
Structural factors such as US fiscal deficit concerns, central bank reserve diversification, and geopolitical risks could continue to support gold prices
Chinese physical gold demand has cooled, but other factors like western ETF demand and potential Indian import duty reduction may provide support for gold prices

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

[Earnings Review] TotalEnergies Misses Estimates on Lower Sales and Shrinking Margins

By Suhas Reddy

TotalEnergies missed Q2 revenue and EPS estimates by 7.3% and 7.2%, respectively, with a 7.4% YoY drop in net profit due to contracting refining margins.
TotalEnergies’ hydrocarbon production hit 2.44 mboe/d in Q2, near the top of its guidance. Projects production in Q3 at 2.4-2.49 mboe/d.
In Q2, TotalEnergies generated USD 7.8 billion in cash flow and completed USD 2 billion in buybacks. Authorized up to USD 2 billion in buybacks for Q3.

Richards Packaging Income Fd (RPI.UN) – Monday, Apr 29, 2024

By Value Investors Club

Surge in demand for packaging products and healthcare supplies
Strong long-term growth prospects
Attractive investment opportunity with history of acquisitions, minimal equity issuance, and low valuation at 7x 2023 FCF

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

CABB – ESG Report – Lucror Analytics

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess CABB’s ESG as “Strong”, in line with its Environmental and Governance scores, while the Social score is “Adequate”. Controversies are “Immaterial” and Disclosure is “Strong”.

TM: FY24 Financials Improve with Costs Decreasing

By Atrium Research

Trigon announced its Q4/24 and FY24 financial results marking the completion of a transformational year for the Company.
With just a small amount of underground production included in the Q4 numbers, costs have already started to decrease with C1 cash costs coming in at $3.31/lb vs. $3.81 for the full fiscal year.
The failed pump has been replaced and most importantly, mining activities were not affected by the short dewatering issue.

Fedrigoni – ESG Report – Lucror Analytics

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Fedrigoni’s ESG as “Strong”, in line with its Environmental and Social scores. Governance is “Adequate”. Controversies are “Immaterial” and Disclosure is “Strong”.

Fedrigoni received a Platinum medal from Ecovadis in 2022 and 2023, which places it in the Top 1% of companies assessed. This is an improvement from the Gold medal received in 2021.

In addition, the company received a score of 59/100 in 2022 and 61/100 in 2023 from S&P (Top 15% in the Paper & Forest Products sector), which evaluated the integration level of ESG factors in policies and practices to mitigate risk as well as maximise opportunities.

New Zealand Energy Corp. (TSX-V: NZ): Increasing Domestic Natural Gas Prices. Tariki-5 to Spud in September

By Auctus Advisors

The Tariki-5 well continues to be expected to spud in early September.
Drilling operations are expected to take 28 days with production starting in late October or early November.
Initial production is expected to be around 6-8 mmcf/d growing to 20 mmcf/d within 10 months once New Zealand Energy has upgraded its facilities to comply with current safety and production standards.

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Jul 31

Daily Brief Industrials: Symbotic, Ador Welding, ZTO Express Cayman , Naigai Trans Line and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

SYM: Now a General Contractor?
Ador Weldings Ltd- Forensic Analysis
Monthly Chinese Express Tracker | Strong June Volume | Weak Pricing and Intl | (July 2024)
Naigai Trans Line (9384 JP): 1H FY12/24 flash update

SYM: Now a General Contractor?

By Hamed Khorsand

SYM had an increase in system costs. SYM’s management highlighted delays in construction of systems in the quarter resulting in the Company to taking back EPC work.
SYM suggests bringing the EPC work in-house would be more efficient. We do not agree. This creates additional headwinds as to timing and could create a new risk for SYM.
During the earnings call, SYM’s management referred to delays in permits and product delivery resulting in people not having anything to do. This is a characterization of a construction/contracting company.

Ador Weldings Ltd- Forensic Analysis

By Nitin Mangal

Ador Welding (AWL IN) is a renowned player in the business of manufacturing and trading of welding and related products.
The company sells welding consumables, equipments and also does preoject-engineering. While the company has seen recent growth in topline, there are few forensic checks that one must be cautious about.
This relates to accounting policy relating to Flares segment, lack of conservatism relating to ECL provisioning and depreciation, troubles in generating cash, etc.

Monthly Chinese Express Tracker | Strong June Volume | Weak Pricing and Intl | (July 2024)

By Daniel Hellberg

Parcel volume growth remained strong in June, but ASPs weakened (again)
YTO Express seems to be managing price / volume tradeoff competently
Year-To-Date, only YTO shares up > 10%; three companies down -10% or more

Naigai Trans Line (9384 JP): 1H FY12/24 flash update

Sales rose to JPY17.2bn (+6.1% YoY), driven by strong overseas subsidiaries and a weaker yen.
Operating profit decreased to JPY1.9bn (-15.3% YoY) due to increased SG&A expenses and reduced high GPM LCL export cargo.
Overseas segment sales grew to JPY6.0bn (+30.2% YoY), with solid warehouse operations in India and South Korea.

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Jul 31

Daily Brief TMT/Internet: SK Hynix, Asustek Computer, Vanguard Intl Semiconductor, Simplex Holdings, Liberty Puerto Rico, Japan System Techniques Co, Smart Eye, Mitsubishi Research Institut and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

Asia Ex-Japan: Extreme Stocks
PC Monitor: MSFT Results Imminent; Look for Copilot Progress; Taiwan PC Makers Show Healthy Growth
Vanguard (5347.TT): Pricing Hit Bottom in 2Q24. Anticipates UTR in 2025 Returning to 70-80%.
Simplex Holdings (4373 JP) – Long Term Growth Scenario Remains Intact
Liberty Puerto Rico – ESG Report – Lucror Analytics
4Q Follow-Up – Japan System Techniques (4323 JP)
Smart Eye (SEYE SS) – Tuesday, Apr 30, 2024
Mitsubishi Research Institut (3636 JP): Q3 FY09/24 flash update

Asia Ex-Japan: Extreme Stocks

By Steven Holden

We screen for stocks at the extreme ends of their positioning or momentum ranges among active Asia Ex-Japan equity funds.
High Positioning, Negative Momentum: AIA Group Limited, Shenzhen Inovance Technology
Low Positioning, Positive Momentum: New Oriental Education & Technology Group, Shinhan Financial Group

PC Monitor: MSFT Results Imminent; Look for Copilot Progress; Taiwan PC Makers Show Healthy Growth

By Vincent Fernando, CFA

PC Maker Shares Under Pressure — PC makers’ share prices fell by mid-to-high single digits during July. However, pure PC exposure outperformed as shown by HPQ’s gain during the month.
Latest PC Industry Data is Promising — Latest IDC data shows that global PC shipments increased 3% YoY in 2Q24, and are up 5% YoY ex-China.
Microsoft & Taiwan PC Maker Earnings Ahead — Microsoft reports July 30th U.S. time. We expect Taiwan PC makers to report earnings within the first two weeks of August.

Vanguard (5347.TT): Pricing Hit Bottom in 2Q24. Anticipates UTR in 2025 Returning to 70-80%.

By Patrick Liao

3Q24 guidance: Shipment: up 9-11% due to higher customer demand. ASP: down 0-2% QoQ. GM: 28-30%, up 3ppts QoQ.
Pricing hit bottom in 2Q24. Anticipates UTR in 2025 returning to 70-80%.
Effective tax rate for 2H24 is expected to be 20%.

Simplex Holdings (4373 JP) – Long Term Growth Scenario Remains Intact

By Astris Advisory Japan

Q1FY3/25 results indicated a slow start for earnings, despite a robust profile for sales growth at 16.5% YoY and both quarterly orders and backlog at record highs.
The key takeaways are: 1) although reported OP fell 4.8% YoY, underlying OP growth was 4.6% YoY when restating for one-time expenses for a new office, 2) quality of earnings remains sound despite cases of project cost overruns, and 3) the sustained strong outlook for orders provides high earnings visibility.
We believe that the direction of travel remains positive for earnings growth, given strong order visibility and as the company’s operations continue to scale.

Liberty Puerto Rico – ESG Report – Lucror Analytics

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We view Liberty Puerto Rico’s ESG as “Adequate”. The score mirrors our assessment of parent Liberty Latin America (LLA), which discloses ESG-related information on a consolidated basis, without meaningful details on the bond-issuing credit pools that we cover (C&W Communications and Liberty Costa Rica).

We assess LLA’s Social and Governance pillars as “Strong” and “Adequate”, respectively, offsetting the “Weak” Environmental score. Controversies are “Immaterial” and Disclosure is “Adequate”.

4Q Follow-Up – Japan System Techniques (4323 JP)

By Sessa Investment Research

Japan System Techniques Co., Ltd. (hereafter, the “Company”) posted an increase of sales and profits in all four business segments for FY2024/3.
In particular, operating profit of the Medical Big Data business and the Global business in total, increased sharply by 49.5% YoY.
Net sales saw an increase for 13 consecutive years, and ordinary profit for 9 consecutive years with a record high, leading to 17.8% of ROE.

Smart Eye (SEYE SS) – Tuesday, Apr 30, 2024

By Value Investors Club

Smart Eye, a provider of eye tracking and driver monitoring systems for the automotive industry, has seen significant growth and potential upside
The company has secured over 100 new design wins and a capital raise, improving the risk-reward profile
With upcoming regulations in the EU driving demand for their technology, Smart Eye is expected to experience further revenue and profitability growth.

Mitsubishi Research Institut (3636 JP): Q3 FY09/24 flash update

Adoption of new revenue recognition standards increased FY09/22 revenue by JPY2.6bn, operating profit by JPY1.0bn, and reduced order backlog by JPY11.2bn.
FY09/23 revenue decreased by 6.8% YoY to JPY90.3bn, with operating profit down 15.8% YoY to JPY7.1bn.
Revised FY09/24 forecast predicts revenue of JPY116.0bn (-5.0% YoY) and operating profit of JPY7.5bn (-13.7% YoY).

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Jul 31

Daily Brief Consumer: Ola Electric, WH Group, Tencent Music, Shimano Inc, Pan Pacific International Holdings, Tesla , TSE Tokyo Price Index TOPIX, V-Mart Retail and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Ola Electric IPO – RHP Updates – Growing Faster than Expected, Driven by GoI Policy
Reservoir Hogs: WH Group (288 HK) Mulls US/Mexican Spin-Off
Ola Electric IPO: Valuation Insights
GEM Funds: Extreme Stocks, July 2024
Shimano (7309) | Shifts Gears with Upbeat Guidance
Customers Flocking to Donki for Both Discounted Daily Necessities and Tourist Toys
Tesla Inc (TSLA) – Tuesday, Apr 30, 2024
Ola Electric IPO – Thoughts on Valuation
Companies Without Engagement Opportunities Lack a Sense of Urgency to Solve Problems
Narrative and Numbers | V-Mart Retail (VMART IN) | FY24

Ola Electric IPO – RHP Updates – Growing Faster than Expected, Driven by GoI Policy

By Sumeet Singh

Ola Electric is now looking to raise about US$730m in its upcoming India IPO.
Ola Electric Mobility is a vertically integrated pure EV player in India with manufacturing capabilities for EVs and EV components, including cells.
In our previous notes, we looked at the company’s performance, undertook a peer comparison and talked about valuations. In this note, we look at the updates from its recent filings.

Reservoir Hogs: WH Group (288 HK) Mulls US/Mexican Spin-Off

Earlier this month, WH Group (288 HK) announced it had submitted a plan to spin-off its Smithfield US and Mexican ops on the NYSE or NASDAQ,
These ops accounted for 54% of WHG’s FY23 revenue and 22.4% of the operating profit; compared to 56% and 44.9% respectively in FY22.
We’ve been here before. A Smithfield spin-off was touted in 4Q23 (in the media). WHG acquired Smithfield for US$4.7bn in 2013, ahead of its 2014 listing.

Ola Electric IPO: Valuation Insights

By Arun George

Ola Electric (1700674D IN), the largest Indian player in electric two-wheel vehicles (E2W), is seeking to raise up to US$734 million.
We previously discussed the IPO in Ola Electric IPO: The Bull Case, Ola Electric IPO: The Bear Case and Ola Electric IPO: The Investment Case.
Our valuation analysis suggests that the IPO price range of Rs72-76 per share is attractive. Therefore, we would participate in the IPO.

GEM Funds: Extreme Stocks, July 2024

By Steven Holden

We screen for stocks at the extreme ends of their positioning or momentum ranges among active Emerging Market equity funds.
High Positioning, Negative Momentum: BYD Company Limited Class H, Novatek Microelectronics Corp.
Low Positioning, Negative Momentum: Banco Bradesco SA Pfd, LG Chem Ltd.

Shimano (7309) | Shifts Gears with Upbeat Guidance

By Mark Chadwick

Shimano’s Q2 results exceeded expectations with revenue and operating profit significantly beating estimates despite a YoY decline.
Full-Year revenue and operating profit guidance were revised upward, reflecting improved performance and aligning with analyst consensus.
Our estimate for FY25 was significantly raised; despite full valuations, further recovery and potential shareholder returns offer continued bullish outlook.

Customers Flocking to Donki for Both Discounted Daily Necessities and Tourist Toys

By Michael Causton

Inflation is encouraging customers to seek out discount chains, led by PPI’s Don Quijote.
Backed by expansion of private brand lines and more food lines, as well as higher sales to tourists, PPI has been posting record results.
There continues to be high expectations for further growth at home and abroad.

Tesla Inc (TSLA) – Tuesday, Apr 30, 2024

By Value Investors Club

Tesla is a polarizing company with both enthusiastic supporters and skeptical critics.
The company has the potential to become the most valuable in the world if it solves autonomous transportation.
The debate around Tesla is focused on its Full Self Driving software, which has recently transitioned to a neural net architecture and is best experienced firsthand at a Tesla delivery center.

Ola Electric IPO – Thoughts on Valuation

By Sumeet Singh

Ola Electric is now looking to raise about US$730m in its India IPO.
Ola Electric Mobility is a vertically integrated pure EV player in India with manufacturing capabilities for EVs and EV components, including cells.
In our previous notes, we looked at the company’s past performance. In this note, we will talk about valuations.

Companies Without Engagement Opportunities Lack a Sense of Urgency to Solve Problems

By Aki Matsumoto

Companies that have increased their valuations over the past year are those with higher valuations and have further increased their ROE and ROA, resulting in even higher valuations.
The difference between the characteristics of companies whose valuations increased and those whose valuations did not change over the past year is the foreign ownership ratio.
Companies with low foreign ownership have less access to overseas investors’ suggestions for solving individual company problems, which is why they are slow to act to improve capital profitability.

Narrative and Numbers | V-Mart Retail (VMART IN) | FY24

By Pranav Bhavsar

V-Mart Retail (VMART IN) is an omni-channel value retailer, providing a range of products aimed at Bharat’s middle and lower middle class
The company has implemented a cluster strategy that has supported its expansion across India. In FY24, V-Mart opened 46 new stores nationwide.
Being over-indexed to value, V-MART has posted slower revenue growth compared to the recent past. New Warehouse and tigher control over inventory could boost cashflows further.

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Jul 31

Daily Brief Financials: HDFC Bank, Woori Financial Group , Nasdaq Inc, JPY, Matsui Securities, Ethereum, Bitcoin Pro, Moon River Capital , Arbuthnot Banking and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

India: Potential Free Float Changes & Passive Flows in August
Block Deal Sale Of 2.3% Stake in Woori Financial and Highlights of Its Corporate Value Up Program
Nasdaq (NDAQ): $2.7bn Offering’s Global Index Implications
Global FX & Economics: Yen-maggedon
Matsui Securities (8628 JP): Q1 FY03/25 flash update
Crypto Crisp: Short-term Patience
Will History Rhyme?
MOO: Tier-1 Assets, Tier-1 Jurisdiction, and a Critical Metal
Hardman & Co Arbuthnot Banking Group (ARBB): 1H’24 – optimising the franchise value

India: Potential Free Float Changes & Passive Flows in August

Companies in India have disclosed their shareholding pattern as of end-June in July. There are companies with significant float changes from end-December and/or end-March.
The changes in free float could be reflected in domestic and global indices over the next few weeks and months resulting in action from passive trackers.
Depending on the date that the shareholding was published, there could be 12 stocks with passive inflows from global trackers while 5 could see passive outflows in August.

Block Deal Sale Of 2.3% Stake in Woori Financial and Highlights of Its Corporate Value Up Program

By Douglas Kim

On 30 July, it was reported that IMM Private Equity (PE) sold a 2.3% stake (16.78 million shares) of Woori Financial Group (WFG), which was worth 264 billion won.
Block deal sale price was 15,737 won (0.4% higher than current price). Today’s block deal sale represents a second block deal sale of Woori Financial by IMM PE in 2024.
Under the mid-to-long term Value Up program, Woori Financial Group aims to achieve a sustainable ROE of 10% and total shareholder returns of 50%.

Nasdaq (NDAQ): $2.7bn Offering’s Global Index Implications

By Dimitris Ioannidis

The size of the offering is expected to trigger intra-quarter implementations for both main global indices to be announced on 30 July and become effective 1 August.
Free float increase is estimated to take place due to Thoma Bravo – Nasdaq’s major strategic shareholder – offering almost half of its stake equivalent to ~$2.7bn.
Total forecasted passive fund demand is ~5.3m shares, ~$368m and ~1.8 ADV. It is expected to materialize at close of 1 August 2024.

Global FX & Economics: Yen-maggedon

By At Any Rate

Historical analysis suggests that previous lows in yen or highs in dollar yen may be difficult to recapture after significant technical damage.
The yen strength is influenced by wide US minus Japan real policy rate differentials, skewing historical results in a more yen bearish direction.
Expectations for the upcoming BOJ meeting include a 15 basis point rate hike and a halving of bond purchases, leading to dispersion of views among investors on the timing of rate hikes.

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Matsui Securities (8628 JP): Q1 FY03/25 flash update

Net operating revenue: JPY9.4bn (+14.8% YoY; -5.0% QoQ), Operating profit: JPY4.2bn (+17.8% YoY; -2.8% QoQ).
Total commissions: JPY5.2bn (+7.6% YoY; -16.7% QoQ), Brokerage commissions: JPY4.9bn (+7.2% YoY; -17.4% QoQ).
SG&A expenses: JPY5.2bn (+12.4% YoY; -6.7% QoQ), Personnel expenses: JPY976mn (+12.2% YoY; +4.8% QoQ).

Crypto Crisp: Short-term Patience

By Mads Eberhardt

In recent weeks, Bitcoin has shown signs of life, almost reaching $70,000 this morning.
In our view, it is only a matter of time before we break through this psychological level.
Enough about Bitcoin. As promised in last week’s Crypto Moves #36, this Crypto Crisp will focus on Ethereum ETFs.

Will History Rhyme?

By Delphi Digital

BTC’s July surge highlights market volatility and potential Q3 consolidation.
Spot ETF launches drive significant crypto inflows, influencing market dynamics.
Upcoming token unlocks could impact market liquidity and trading conditions.

MOO: Tier-1 Assets, Tier-1 Jurisdiction, and a Critical Metal

By Atrium Research

Moon River recently announced a highly economic PEA on its Davidson Project in B.C., the highest-grade molybdenum project outside of China.
The acquisition of a 25% stake in the Endako Project reduces single asset risk, providing MOO with $2M in working capital, $40M for maintenance and reclamation costs, as well as providing interest income to cover corporate G&A, offering substantial upside for the Company.
Moon River looks to take advantage of a booming molybdenum market.

Hardman & Co Arbuthnot Banking Group (ARBB): 1H’24 – optimising the franchise value

By Hardman & Co

ABG’s 1H’24 results showed the group’s continued evolution to optimise its franchise value.
2023 saw the peak benefits from ABG’s relationship deposit franchise in the recent rising rate environment.
Margins could be widened while still giving customers competitive products.

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Jul 31

Daily Brief Health Care: Alteogen Inc, UnitedHealth Group , WuXi AppTec, Azitra, Evaxion Biotech A/S, Genomma Lab Internacional Sab and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

KRX New Deal Index Rebalance Preview: Potential Changes as Review Period Ends Today
Upgrading Health Care to Market Weight; Risk-Off Signals Suggest SPX and QQQ Pullback to Continue
WuXi AppTec (2359.HK/603259.CH) 24H1- Backlog Looks Good but It May Not Bring a Performance Reversal
AZTR: Initiation – Get Some Skin in the Game
EVAX: Initiating Coverage: Using AI for Better Health Outcomes
Actinver Research – Genomma Lab: 2Q24 – Strong results across the board (Earnings Review)

KRX New Deal Index Rebalance Preview: Potential Changes as Review Period Ends Today

The review period for the September rebalance ends today, the changes will be announced in the first week of September and implemented at the close of trading on 12 September.
There is at least one change expected for each of the Secondary Battery, Bio, Internet, Game and BBIG indices.
The largest flows will be in Posco Future M, Ecopro BM, SK Biopharmaceuticals, Alteogen, Celltrion, SKC Co, Kakao Corp, Douzone Bizon, Krafton and Samsung Biologics.

Upgrading Health Care to Market Weight; Risk-Off Signals Suggest SPX and QQQ Pullback to Continue

By Joe Jasper

Breadth continues to improve and Russell 2000 (IWM) small-caps and the Dow remain bullish, all while the S&P 500 and Nasdaq 100 (QQQ) are going through a pullback/consolidation phase.
Considering the Russell 2000 vs. S&P 500 ratio is reversing a 3.5-year downtrend, we expect this trend of small-cap outperformance to continue for months or longer.
With new risk-off signals emerging, potential pullback zones we would look for include 5100-5191 on the S&P 500 and $443-$449 on the QQQ, expecting a low near the election.

WuXi AppTec (2359.HK/603259.CH) 24H1- Backlog Looks Good but It May Not Bring a Performance Reversal

By Xinyao (Criss) Wang

The message WuXi AppTec hopes to convey in 24H1 report is that the Company isn’t losing orders/customers due to BIOSECURE Act and from 2025 it will return to high growth.
TIDES business growth is below expectations. Whether WuXi AppTec’s performance can be reversed is no longer solely depends on fundamentals/industry cycles, but on whether geopolitical risks can be fully resolved.
Regardless of the outcome of 2024 presidential election, securing US supply chain is a already bipartisan consensus. If any Bill does pass in the future, valuation will plummet again.

AZTR: Initiation – Get Some Skin in the Game

By Zacks Small Cap Research

Azitra is developing genetically engineered bacteria for therapeutic use in dermatology.
The company possesses a microbial library of 1,500 unique bacterial strains that are candidates for a variety of indications.
Azitra’s lead candidate is ATR-12 for the rare disease Netherton Syndrome (NS).

EVAX: Initiating Coverage: Using AI for Better Health Outcomes

By Zacks Small Cap Research

EVAX is a clinical stage company that has proprietary AI models designed to more efficiently and more accurately target much-needed treatments.
The company has two streams of possible revenue: from the treatments themselves and from the licensing of the AI technology.
The company aims to be cash-flow neutral in 2024 and continues to develop relationships with major pharmaceutical companies, while also pushing treatments through the FDA approval process.

Actinver Research – Genomma Lab: 2Q24 – Strong results across the board (Earnings Review)

By Actinver

Better-than-expected 2Q24 results throughout the P&L.
While we had already forecasted healthy profitability ahead, we are raising our FY24E-25E estimates given the company’s anticipated path towards profitability targets.
We continue to see Genomma with healthy brand power across most of its core categories and also expect previous headwinds, such as FX (at least in some regions) and performance in Argentina, to become neutral-to-positive ahead, while the company’s productivity initiatives remain with ample runway as they reached 41% of the FY27 P$1.8bn target.

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Jul 30

Daily Brief ESG: Shinhan Financial: Shareholder Return Ratio of 50% to Boost Corporate Value and more

By Smartkarma Daily Briefs | Daily Briefs, ESG

In today’s briefing:

Shinhan Financial: Shareholder Return Ratio of 50% to Boost Corporate Value
Odigeo – ESG Report – Lucror Analytics

Shinhan Financial: Shareholder Return Ratio of 50% to Boost Corporate Value

By Douglas Kim

Shinhan Financial announced that it plans to increase shareholder return ratio to 50%, improve ROE to 10%, and reduce outstanding shares by 50 million+ by 2027.
Shinhan Financial Group’s new, outstanding shareholder return policy has been one of the most impressive since the roll-out of the Corporate Value Up program in Korea a few weeks ago.
The improved corporate governance policy is likely to lead to Shinhan Financial Group outperforming other financial stocks in Korea and KOSPI overall in the next 6-12 months.

Odigeo – ESG Report – Lucror Analytics