Smartkarma Daily Briefs

Dollar General Corporation’s results were a major disappointment as the company failed to meet Wall Street’s revenue and earnings expectations.
Due to higher average borrowing amounts and interest rates, interest expense climbed to $84 million in Q2 from $43 million in Q2 of last year.
Dollar General has experienced a significant drop in its stock value this year, sparking speculation about potential activist investors eyeing the company.

Downgrading Industrials to Market Weight; Major Supports Holding; Buys in Uranium and Refiners

By Joe Jasper

We still believe it’s possible we’ve seen the lows for this pause/pullback on the SPX, and we see low probability of meaningful correction if SPX is above 4300-4325 (1.5-year support).
As initially discussed in our 8/29/23 Compass, we wouldn’t be surprised to see another month+ (i.e., through the end of September, and possibly longer) of consolidation between 4325 and 4600.
Downgrading Industrials (XLI) to market weight due to 1.5+ year RS uptrend violation. Buys highlighted in Uranium and Energy (refiners and coal).

MongoDB Inc.: Targeting The Public Sector With MongoDB Atlas! – Major Drivers

MongoDB managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.
The company exceeded the high end of its projection and achieved revenue of $424 million, a 40% year-over-year increase.
Atlas sales increased 38% year over year, accounting for 63% of revenue, and is now a product with a run rate of more than $1 billion.

The Cooper Companies: The Powerful Future of Fertility Business and How They’re Leading! – Major Drivers

The Cooper Companies delivered a positive result and managed an all-around beat in the last quarter.
The company surpassed revenue estimates, generating significant quarterly revenues of $930 million, driven by strong sustained organic growth.
CooperVision reported $630 million in revenue, up 13% organically, while CooperSurgical reported $300 million in revenue, up 9% organically.

Chewy Inc.: Delving Into The Major Drivers Taking The Company Forward! – Financial Forecasts

Chewy delivered a solid result and managed an all-around beat in the last quarter, producing mid-teens growth that exceeded expectations as well as strong profitability.
The number of active customers was almost steady sequentially, but the net sales per active customer, or NSPAC, rose by 15% to $530.
Net sales growth was boosted by active customer participation, highlighting the steadily growing strength of the Chewy ecosystem.

Workday Inc.: 4 Major Factors Driving Their Growth! – Financial Forecasts

Workday exceeded analyst expectations in terms of revenue and earnings, with a non-GAAP operating margin of 24%, subscription revenue growth of 19%, and a 24-month backlog increase of 23%.
Early renewals exceeded Workday’s expectations in the quarter and increased the 24-month backlog by nearly 1.5 percentage points.
Workday’s team anticipates increasing their forecast for subscription revenue for FY 2024 to a new range of $6.57 billion to $6.59 billion, representing an 18% yearly increase.

Dell Technologies Inc.: Can The Moogsoft Acquisition Help Enhance Dell’s AIOps Capabilities? – Major Drivers

Dell Technologies delivered a positive result and managed an all-around beat in the last quarter.
Government and small and medium-sized business demand also increased, and their transactional demand strengthened throughout the quarter.
While the overall DFS portfolio quality remains good and credit losses are around historically low levels, DFS ending managed assets achieved $14.7 billion.

Hormel Foods Corporation: Unveiling the Powerhouses Behind Their Volume Boost! – Major Drivers

Hormel Foods Corporation delivered a disappointing set of results as the company was unable to meet the revenue expectations as well as the earnings expectations of Wall Street.
Additionally, Hormel Foods recently introduced an LTO for the fall season: apple cider donut-flavored cashews, which the team anticipates will increase category volume and attention.
Hormel Foods noticed a recovery across the turkey portfolio in its Retail segment and increased volume in important categories.

Lululemon Athletica Inc.: Tapping into International Markets – A Game-Changing Move? Major Drivers

By Shifara Samsudeen, ACMA, CGMA

Lululemon Athletica delivered an all-around beat in the previous quarter, exceeding the management’s projections for revenue and EPS.
Comparable sales increased by 17% online and 9% in-store, and adjusted EPS rose by 22% over the same time last year.
In July, Lululemon Athletica established its first site in Thailand, making it the 100th APAC facility overall.

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Sep 13

Daily Brief TMT/Internet: Alibaba (ADR), ARM Holdings, 4Paradigm, Paytm, Intel Corp, China Unicom Hong Kong, Banijay Group, MongoDB , Workday Inc Class A and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

Alibaba: Daniel Zhang Shown The Door, Jack Ma Back In The Game
ARM IPO Breakdown
4Paradigm IPO: PHIP Updates
[Week 2] Namaste India | Paytm (PAYTM IN) | Withdrawing Disclosures
Intel Foundry Chief Unveils His Strategy
HSCEI Index Rebalance Preview: China Unicom (762) Could Replace Zhongsheng (881)
4Paradigm IPO: The Bull Case
Banijay – ESG Report – Lucror Analytics
MongoDB Inc.: Targeting The Public Sector With MongoDB Atlas! – Major Drivers
Workday Inc.: 4 Major Factors Driving Their Growth! – Financial Forecasts

Alibaba: Daniel Zhang Shown The Door, Jack Ma Back In The Game

By Oshadhi Kumarasiri

News broke yesterday that Daniel Zhang is no longer leading Alibaba (ADR) (BABA US)‘s Cloud Business unit.
The statement from Alibaba’s current chairman, in which he mentions that Zhang would “switch to a different approach and continue to fight alongside us at Alibaba” raises skepticism.
We also think that the $1.0bn Alibaba committed to a technology fund could be seen as a form of compensation to ensure Daniel Zhang’s silence.

ARM IPO Breakdown

By Douglas O’Laughlin

ARM prices this Wednesday and trades on Thursday.
I have a lot of thoughts. This will be a great post if you want to learn about ARM.
So, without further adieu, let’s dive into the most important IP company in the world.

4Paradigm IPO: PHIP Updates

4Paradigm is a pioneer and leader in enterprise AI. The company offers platform-centric AI solutions to enterprises that can be deployed on a large scale to support decision making.
The company’s application for HKEx IPO has been approved and this insight focuses on new data points from the company’s latest PHIP release (dated 07th Sep 2023).
4Paradigm (1764934D HK) revenues have continued to expand with significant reduction in operating losses, and we remain positive on the company’s growth prospects.

[Week 2] Namaste India | Paytm (PAYTM IN) | Withdrawing Disclosures

By Pranav Bhavsar

Life is good for the NIFTY Index (NIFTY INDEX) at 20K. Strong domestic sentiment is likely to continue.
Paytm (PAYTM IN) posted strong operating metrics for August, but this will be the second last update as the company moves to quarterly disclosures for reasons not completely justified.
Other Ideas discussed include Poonawalla Fincorp (POONAWAL IN) , Dabur India Ltd (DABUR IN) and Landmark Cars along with upcoming IPOs.

Intel Foundry Chief Unveils His Strategy

By William Keating

It’s a “show me the money” versus a “build it and they will come” approach
New fab construction will be based solely on customer commitments.
It’s a curiously cautious plan and highly unlikely to succeed

HSCEI Index Rebalance Preview: China Unicom (762) Could Replace Zhongsheng (881)

Zhongsheng Group (881 HK) is a potential deletion in December and that could result in China Unicom Hong Kong (762 HK) being added to the index.
Estimated one-way turnover at the rebalance is 1.36% resulting in a one-way trade of HK$845m. Passives will need to trade over 1x ADV on both stocks.
There is a very small impact on the fair value of the HSCEI 2023 dividend futures but there will be a larger impact on the dividend futures expiring in 2024.

4Paradigm IPO: The Bull Case

By Arun George

4Paradigm (1764934D HK), a leader in enterprise artificial intelligence (AI) in China, is pre-marketing a US$150-200 million HKEx IPO.
4Paradigm was the largest player by revenue in China’s platform-centric decision-making AI market with a market share of 22.6% in 2022, according to CIC.
The bull case rests on the success in increasing key account customer numbers, net dollar expansion rates, improving revenue visibility, strong growth in application development services and reducing loss margin.

Banijay – ESG Report – Lucror Analytics

By Charles Macgregor

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Banijay’s ESG as “Adequate”, in line with its Social and Governance scores, while the Environmental pillar is “Weak”. Controversies are “Immaterial” but Disclosure is “Weak”.
Banijay creates and distributes content for television and multimedia platforms. It was founded in 2008 by Stephane Courbit, and has since grown through a string of acquisitions.

MongoDB Inc.: Targeting The Public Sector With MongoDB Atlas! – Major Drivers

MongoDB managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.
The company exceeded the high end of its projection and achieved revenue of $424 million, a 40% year-over-year increase.
Atlas sales increased 38% year over year, accounting for 63% of revenue, and is now a product with a run rate of more than $1 billion.

Workday Inc.: 4 Major Factors Driving Their Growth! – Financial Forecasts

By Research as a Service (RaaS)

Workday exceeded analyst expectations in terms of revenue and earnings, with a non-GAAP operating margin of 24%, subscription revenue growth of 19%, and a 24-month backlog increase of 23%.
Early renewals exceeded Workday’s expectations in the quarter and increased the 24-month backlog by nearly 1.5 percentage points.
Workday’s team anticipates increasing their forecast for subscription revenue for FY 2024 to a new range of $6.57 billion to $6.59 billion, representing an 18% yearly increase.

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Sep 13

Daily Brief Australia: Origin Energy, Viva Energy Group , S&P/ASX 200, CommsChoice Group Ltd, Empire Energy and more

By Smartkarma Daily Briefs | Australia, Daily Briefs

In today’s briefing:

Origin Energy: ACCC’s Concerns And Brookfield’s Quid Pro Quo
Viva Energy Placement – News Leak Helps but It’s Still a Big One to Digest
EQD | S&P/ASX200 Index Looking Bearish: Resistance Levels Reset
Comms Group Limited – Further Valuation Support from CNW Bid
Empire Energy Group Ltd – More Flow-Rate Data Equals More Confidence

Origin Energy: ACCC’s Concerns And Brookfield’s Quid Pro Quo

By David Blennerhassett

After Origin Energy (ORG AU) entered into a Scheme Implementation Deed with Brookfield Asset Management/MidOcean Energy in late March, the ACCC approval process has played out in the public eye.
And it hasn’t been all beer and Skittles for the Offerors. Not just on competition issues. But also the perceived/apparent public benefit from Brookfield’s future commitment to renewable generation.
All the while, the ACCC recently blocked ANZ (ANZ AU)’s acquisition of Suncorp Bank, and Telstra Corp (TLS AU)/TPG Telecom (TPG AU)‘s mobile network sharing deal.

Viva Energy Placement – News Leak Helps but It’s Still a Big One to Digest

By Sumeet Singh

Viva Energy Group (VEA AU)‘s parent, Vitol, aims to raise around US$460m via selling 15% of the company
The news of a possible selldown was leaked overnight in the local press and hence, the stock has corrected going into the placement.
In this note, we will talk about the deal dynamics and run the deal through our ECM framework.

EQD | S&P/ASX200 Index Looking Bearish: Resistance Levels Reset

By Nico Rosti

The S&P/ASX 200 (AS51 INDEX) closed down last week (CC=-1), this week is rising again, we analyze the new, reset resistance levels to see how far it can go.
Our previous, recent insight discussed the fact that the index has been locked in a range for 2 years, an uptrend may be unfolding but it must breach 7600.
The current trend pattern is bearish, the index won’t rise more than 2-3 weeks, and it would probably go not very far: 7300-7400 should be the limit

Comms Group Limited – Further Valuation Support from CNW Bid

Comms Group Ltd (ASX:CCG) has received further valuation support in the form of the recent bid from Atturra Ltd (ASX:ATA) for Cirrus Networks (ASX:CNW).
We view CNW as the closest ASX peer to CCG in terms of business mix and market cap.
The ATA Scheme Implemented Deed values CNW at 7.4x post-AASB 16 FY23 EV/EBITDA and 8.8x pre-AASB 16.

Empire Energy Group Ltd – More Flow-Rate Data Equals More Confidence

By Research as a Service (RaaS)

Empire Energy Group Limited (ASX:EEG) is an oil and gas producer/developer, with onshore Northern Territory (NT) and US oil/gas production assets.
EEG has the largest tenement position in the highly prospective Greater McArthur Basin, which includes the Beetaloo Sub-basin.
The investment case is built around de-risking the development model as more evaluation data comes to hand and the latest data from Carpentaria-3H continues to build and shore up support for the economic case.

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Sep 13

Daily Brief South Korea: Value Added Technologies, Doosan Robotics, Seoul Guarantee Insurance and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

KOSDAQ150 Ad Hoc Index Rebalance: VATECH (043150 KS) Replaces Lutronic (085370 KS)
Doosan Robotics: Strong Initial Book Building Results
Doosan Robotics IPO – Updated Thoughts on Valuation – Sentiments Going Out of Control
Seoul Guarantee Insurance Corp IPO Preview

KOSDAQ150 Ad Hoc Index Rebalance: VATECH (043150 KS) Replaces Lutronic (085370 KS)

Value Added Technologies (043150 KS) will replace Lutronic Corp (085370 KS) in the KOSDAQ 150 Index (KOSDQ150 INDEX) at the close on 14 September.
Passive trackers will need to buy over 1.5x ADV on Value Added Technologies (043150 KS). The impact is higher on Lutronic Corp (085370 KS) but the arbs will provide liquidity.
Value Added Technologies (043150 KS) appears to trade cheaper than its peers on all valuation parameters and there could be a re-rating following the index inclusion.

Doosan Robotics: Strong Initial Book Building Results

Chosun Business Daily mentioned today that initial results of Doosan Robotics book building have been very strong. The current IPO price range is from 21,000 won to 26,000 won.
There is a high probability that the IPO price will be set at 26,000 won or more and close to 30,000 won.
Our base case valuation per share of Doosan Robotics is 42,826 won, which is 65% higher than the high end of the IPO valuation range.

Doosan Robotics IPO – Updated Thoughts on Valuation – Sentiments Going Out of Control

Doosan Robotics (454910 KS) is looking to raise up to US$318m in its Korean IPO.
Doosan Robotics (DR) manufactures and sells collaborative robots (Cobots). The firm’s product portfolio primarily includes different series of robot arms as well as its coffee module.
In our previous notes, we assessed the company’s past performance, undertook a peer comparison and shared our thoughts on valuation. In this note, we share our updated thoughts on valuation.

Seoul Guarantee Insurance Corp IPO Preview

Seoul Guarantee Insurance Corp is getting ready to complete its IPO in Korea in the next several weeks. The IPO price range is from 39,500 won to 51,800 won.
Market cap is from 2.8 trillion won to 3.6 trillion won. At the high end of the IPO price range, this could be the biggest IPO in Korea in 2023.
Many investors will be skeptical on the bankers including two overseas comps (Travelers and Coface) which have much higher valuations.

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Sep 13

Daily Brief Consumer: Poly Culture Group Corp H, Li Auto , Foshan Haitian Flavouring & Food, Universal Entertainment, Dollar General, Hormel Foods, Lululemon Athletica, Chewy and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Poly Culture (3636 HK): Trading Wide To Terms. Get Involved.
HSTECH Index Rebalance Preview: Round-Trip Trade of US$255m in December
Haitian Flavouring (603288 CH): Weakening Moat With Further Derating Likely
US Judge Rules Favorably for Okada Manila Dispute with Former Spac Partner
Dollar General Corporation: Activist Interest Looms After Recent Drop! – Major Drivers
Hormel Foods Corporation: Unveiling the Powerhouses Behind Their Volume Boost! – Major Drivers
Lululemon Athletica Inc.: Tapping into International Markets – A Game-Changing Move? Major Drivers
Chewy Inc.: Delving Into The Major Drivers Taking The Company Forward! – Financial Forecasts

Poly Culture (3636 HK): Trading Wide To Terms. Get Involved.

By David Blennerhassett

Back on the 27 June, art and culture play Poly Culture Group Corp H (3636 HK) announced a pre-conditional privatisation at HK$8.88 per H-share.
This Offer from SOE Poly Group is by way of a Merger by Absorption, incorporating a Scheme-like vote. There is no tendering condition.
The pre-cons have now been fulfilled. The Composite Document, including the H Share Class meeting/EGM date and IFA opinion, is expected to be despatched on or before the 30 September.

HSTECH Index Rebalance Preview: Round-Trip Trade of US$255m in December

With no stocks in inclusion or deletion zone, we do not expect any constituent changes for the Hang Seng TECH Index (HSTECH INDEX) in December.
Capping changes will result in a one-way turnover of a touch below 1% and that will result in a round-trip trade of US$255m.
The impact on the stocks is relatively small for now but that could increase till the end of November when the stocks will be capped.

Haitian Flavouring (603288 CH): Weakening Moat With Further Derating Likely

By Steve Zhou, CFA

Foshan Haitian Flavouring & Food (603288 CH), the largest condiment player in China is facing structural weakening of moat from a changed operating environment post-COVID.
Both catering and home consumption segments are faced with structural growth pressures that are difficult to solve for the company.
Expect further earnings weakness and derating in valuation multiple in the near term.

US Judge Rules Favorably for Okada Manila Dispute with Former Spac Partner

By Howard J Klein

Japan’s Universal Entertainment’s Okada Manila casino unit removes another obstacle to its long quest to transform into a NASDAQ traded IPO.
Judge rules that Okada is free of any obligations to US Space 26 Capital Partners.
UE’s goal to take the casino public, despite expectations that the Spac will appeal, is likely to move forward toward identifying a new partner.

Dollar General Corporation: Activist Interest Looms After Recent Drop! – Major Drivers

Dollar General Corporation’s results were a major disappointment as the company failed to meet Wall Street’s revenue and earnings expectations.
Due to higher average borrowing amounts and interest rates, interest expense climbed to $84 million in Q2 from $43 million in Q2 of last year.
Dollar General has experienced a significant drop in its stock value this year, sparking speculation about potential activist investors eyeing the company.

Hormel Foods Corporation: Unveiling the Powerhouses Behind Their Volume Boost! – Major Drivers

Hormel Foods Corporation delivered a disappointing set of results as the company was unable to meet the revenue expectations as well as the earnings expectations of Wall Street.
Additionally, Hormel Foods recently introduced an LTO for the fall season: apple cider donut-flavored cashews, which the team anticipates will increase category volume and attention.
Hormel Foods noticed a recovery across the turkey portfolio in its Retail segment and increased volume in important categories.

Lululemon Athletica Inc.: Tapping into International Markets – A Game-Changing Move? Major Drivers

Lululemon Athletica delivered an all-around beat in the previous quarter, exceeding the management’s projections for revenue and EPS.
Comparable sales increased by 17% online and 9% in-store, and adjusted EPS rose by 22% over the same time last year.
In July, Lululemon Athletica established its first site in Thailand, making it the 100th APAC facility overall.

Chewy Inc.: Delving Into The Major Drivers Taking The Company Forward! – Financial Forecasts

Chewy delivered a solid result and managed an all-around beat in the last quarter, producing mid-teens growth that exceeded expectations as well as strong profitability.
The number of active customers was almost steady sequentially, but the net sales per active customer, or NSPAC, rose by 15% to $530.
Net sales growth was boosted by active customer participation, highlighting the steadily growing strength of the Chewy ecosystem.

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Sep 13

Daily Brief India: Paytm, R R Kabel, China Jinmao Holdings and more

By Smartkarma Daily Briefs | Daily Briefs, India

In today’s briefing:

[Week 2] Namaste India | Paytm (PAYTM IN) | Withdrawing Disclosures
R R Kabel IPO – Peer Comp & Thoughts on Valuation – Fifth in Market Share but First in Sales Growth
R R Kabel Ltd IPO- Forensic Analysis
Morning Views Asia: China Jinmao Holdings, Vedanta Resources

[Week 2] Namaste India | Paytm (PAYTM IN) | Withdrawing Disclosures

By Pranav Bhavsar

Life is good for the NIFTY Index (NIFTY INDEX) at 20K. Strong domestic sentiment is likely to continue.
Paytm (PAYTM IN) posted strong operating metrics for August, but this will be the second last update as the company moves to quarterly disclosures for reasons not completely justified.
Other Ideas discussed include Poonawalla Fincorp (POONAWAL IN) , Dabur India Ltd (DABUR IN) and Landmark Cars along with upcoming IPOs.

R R Kabel IPO – Peer Comp & Thoughts on Valuation – Fifth in Market Share but First in Sales Growth

R R Kabel (2333180Z IN) is looking to raise up to US$238m in its India IPO.
R R Kabel is an Indian consumer electrical company, which primarily sells wires, cables and fast moving electrical goods (FMEG).
In our previous notes, we looked at the company’s past performance. In this note, we undertake a quick peer comparison and share our thoughts on valuation.

R R Kabel Ltd IPO- Forensic Analysis

By Nitin Mangal

R R Kabel (2333180Z IN) ‘s IPO will go live this week.
The company is the fifth largest player in the wires and cables market in India, having a market share of 5% overall and 7% among the branded players.
However, there our numerous aspects about the company and financials that warrant attention. These include RPT with promoters, misleading high CFO, promoter classification, high discounting, etc.

Morning Views Asia: China Jinmao Holdings, Vedanta Resources

By Charles Macgregor

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

China Jinmao Holdings
Vedanta Resources

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Sep 13

Daily Brief Industrials: Doosan Robotics, IHI Corp, Recruit Holdings, R R Kabel, S.F. Holding and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Doosan Robotics: Strong Initial Book Building Results
IHI (7013) | Brace for a ¥130b Charge
Doosan Robotics IPO – Updated Thoughts on Valuation – Sentiments Going Out of Control
Recruit Holdings: Weakening Job Markets and New Pricing Model to Impact HR Tech Further
R R Kabel IPO – Peer Comp & Thoughts on Valuation – Fifth in Market Share but First in Sales Growth
R R Kabel Ltd IPO- Forensic Analysis
SF Holdings A/H Listing – Recent Filing and Other Updates

Doosan Robotics: Strong Initial Book Building Results

Chosun Business Daily mentioned today that initial results of Doosan Robotics book building have been very strong. The current IPO price range is from 21,000 won to 26,000 won.
There is a high probability that the IPO price will be set at 26,000 won or more and close to 30,000 won.
Our base case valuation per share of Doosan Robotics is 42,826 won, which is 65% higher than the high end of the IPO valuation range.

IHI (7013) | Brace for a ¥130b Charge

By Mark Chadwick

IHI’s share price has declined 16% on news that Pratt & Whitney would need to ground more planes due to problems with its PW1100 turbofan engines
IHI has a 15% share of the revenue and risk from this program. The new engine was expected to be a major earnings driver over the next several years
We believe that IHI will be forced to revise down OP guidance to a loss. The bigger impact could be on FCF and future capex plans.

Doosan Robotics IPO – Updated Thoughts on Valuation – Sentiments Going Out of Control

By Shifara Samsudeen, ACMA, CGMA

Doosan Robotics (454910 KS) is looking to raise up to US$318m in its Korean IPO.
Doosan Robotics (DR) manufactures and sells collaborative robots (Cobots). The firm’s product portfolio primarily includes different series of robot arms as well as its coffee module.
In our previous notes, we assessed the company’s past performance, undertook a peer comparison and shared our thoughts on valuation. In this note, we share our updated thoughts on valuation.

Recruit Holdings: Weakening Job Markets and New Pricing Model to Impact HR Tech Further

The job openings in the US declined to 8.827m in July 2023, marking the lowest since March 2021, and falling well below projected 9.465m job openings for the month.
On the other hand, web traffic on Recruit Holdings (6098 JP) ’s job platform Indeed has declined in July compared to June 2023 while it has improved slightly on Glassdoor.
HR Tech segment’s top line growth declined 9.1% YoY in 1QFY03/2024 and the company has shifted into a new pricing model which we think would further impact segment’s growth.

R R Kabel IPO – Peer Comp & Thoughts on Valuation – Fifth in Market Share but First in Sales Growth

R R Kabel (2333180Z IN) is looking to raise up to US$238m in its India IPO.
R R Kabel is an Indian consumer electrical company, which primarily sells wires, cables and fast moving electrical goods (FMEG).
In our previous notes, we looked at the company’s past performance. In this note, we undertake a quick peer comparison and share our thoughts on valuation.

R R Kabel Ltd IPO- Forensic Analysis

By Nitin Mangal

R R Kabel (2333180Z IN) ‘s IPO will go live this week.
The company is the fifth largest player in the wires and cables market in India, having a market share of 5% overall and 7% among the branded players.
However, there our numerous aspects about the company and financials that warrant attention. These include RPT with promoters, misleading high CFO, promoter classification, high discounting, etc.

SF Holdings A/H Listing – Recent Filing and Other Updates

By Sumeet Singh

S.F. Holding (002352 CH) (SFH), China’s largest express delivery company, aims to raise around US$2-3bn in its H-share listing in Hong Kong.
SFH is the largest integrated express logistics service provider in China and the fourth largest in the world. It has been listed on the Shenzhen Stock Exchange since 2017.
We have looked at the company’s past performance in our previous notes. In this note, we look at its recent updates.

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Sep 13

Daily Brief Financials: Mitsubishi UFJ Financial (MUFG), Seoul Guarantee Insurance, S&P/ASX 200, KE Holdings , China Jinmao Holdings, JPMorgan European Smaller Comp and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

MUFG (8306) – Biggest JPN Bank, Lowest LDR at 48%: Most Bonds | ROE Surge to 12% May Be Sustainable
Seoul Guarantee Insurance Corp IPO Preview
EQD | S&P/ASX200 Index Looking Bearish: Resistance Levels Reset
[KE Holdings (BEKE US, BUY, TP US$24) Update]: Our View of Gradual Property Recovery into 2024
Morning Views Asia: China Jinmao Holdings, Vedanta Resources
JPMorgan European Discovery Trust – A balanced trust targeting a world-beating market

MUFG (8306) – Biggest JPN Bank, Lowest LDR at 48%: Most Bonds | ROE Surge to 12% May Be Sustainable

By Daniel Tabbush

The biggest Japan banks by assets, in spotlight as near ending of negative interest rates, with lowest LDR, so highest bonds, cash, can see major benefit from YCC relief
Years of low ROE at 5-7% seem behind MUFG now with 12-17% in past two quarters, where leverage is not out of control, with cost improvements key
Loss loans down 29% over past two years, can support low credit costs, which dropped sharply from 81bps to 15bps from 3Q23 to 1Q24, possibly moving to reversals

Seoul Guarantee Insurance Corp IPO Preview

Seoul Guarantee Insurance Corp is getting ready to complete its IPO in Korea in the next several weeks. The IPO price range is from 39,500 won to 51,800 won.
Market cap is from 2.8 trillion won to 3.6 trillion won. At the high end of the IPO price range, this could be the biggest IPO in Korea in 2023.
Many investors will be skeptical on the bankers including two overseas comps (Travelers and Coface) which have much higher valuations.

EQD | S&P/ASX200 Index Looking Bearish: Resistance Levels Reset

By Nico Rosti

The S&P/ASX 200 (AS51 INDEX) closed down last week (CC=-1), this week is rising again, we analyze the new, reset resistance levels to see how far it can go.
Our previous, recent insight discussed the fact that the index has been locked in a range for 2 years, an uptrend may be unfolding but it must breach 7600.
The current trend pattern is bearish, the index won’t rise more than 2-3 weeks, and it would probably go not very far: 7300-7400 should be the limit

[KE Holdings (BEKE US, BUY, TP US$24) Update]: Our View of Gradual Property Recovery into 2024

By Shawn Yang

We think the mild recovery is driven by the delayed orders in Jul. and Aug, thus expect transaction volume to be flattish MoM in Sep.
We think the recovery is on-track and expect Oct. volume to begin recovery and expect more meaningful rebound in Mar.-Apr. 2024, supported by 1) strong leading indicators from property agents,
2) refer to the recover trajectory in 2014-2015. We maintain the stock as BUY rating and maintain TP at US$24/ADS.

Morning Views Asia: China Jinmao Holdings, Vedanta Resources

By Charles Macgregor

China Jinmao Holdings
Vedanta Resources

JPMorgan European Discovery Trust – A balanced trust targeting a world-beating market

By Edison Investment Research

JPMorgan European Discovery Trust (JEDT) invests in European small-cap companies (excluding UK), with the aim of providing shareholders with long term capital growth. The investment case for this sector is clear and simple. European small caps have outperformed most other markets over the long term. JEDT’s disappointing performance during H122 prompted its managers to rotate out of high-growth IT software and medtech stocks, in favour of a more balanced approach focused on quality and value names. Many of these acquisitions are now contributing to returns.

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Sep 13

Daily Brief Health Care: Value Added Technologies, Innovent Biologics Inc, Acotec Scientific Holdings, Cooper Cos and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

KOSDAQ150 Ad Hoc Index Rebalance: VATECH (043150 KS) Replaces Lutronic (085370 KS)
Innovent Biologics Placement (1801.HK) – There Is No Such Thing as a Free Lunch
Acotec Scientific (6669.HK) – Growth Is Expected to Continue, But Risks Behind Can’t Be Ignored
The Cooper Companies: The Powerful Future of Fertility Business and How They’re Leading! – Major Drivers

KOSDAQ150 Ad Hoc Index Rebalance: VATECH (043150 KS) Replaces Lutronic (085370 KS)

Value Added Technologies (043150 KS) will replace Lutronic Corp (085370 KS) in the KOSDAQ 150 Index (KOSDQ150 INDEX) at the close on 14 September.
Passive trackers will need to buy over 1.5x ADV on Value Added Technologies (043150 KS). The impact is higher on Lutronic Corp (085370 KS) but the arbs will provide liquidity.
Value Added Technologies (043150 KS) appears to trade cheaper than its peers on all valuation parameters and there could be a re-rating following the index inclusion.

Innovent Biologics Placement (1801.HK) – There Is No Such Thing as a Free Lunch

By Xinyao (Criss) Wang

Innovent is actually not short of money, so the Placing this time looks “strange”.If Innovent is unable to deliver performance that matches expectations, investors would reconsider its future financing needs.
Innovent is undergoing important transition from quantitative change to qualitative change as turning losses into profits is within reach. So, the “concept validation” of Innovent’s business model has been completed.
Innovent decides to place the shares at this moment reflects that its stock price is already high. Based on our forecast, there could be limited upside room for share price.

Acotec Scientific (6669.HK) – Growth Is Expected to Continue, But Risks Behind Can’t Be Ignored

By Xinyao (Criss) Wang

Acotec’s revenue streams became more diversified in 23H1. New product launch in the next 1-2 years would further relieve the dependence on DCB products, leading to healthier revenue structure.
Acotec disclosed details of its collaboration with Boston Scientific.If the caps are fully implemented, revenue growth of Acotec will be impressive. Acotec has the ability to resist centralized procurement risks.
Concerns include how much negative impact anti-corruption campaign will have on Acotec’s performance in 23H2, and to what extent the deal with Boston Scientific would be implemented?

The Cooper Companies: The Powerful Future of Fertility Business and How They’re Leading! – Major Drivers