Smartkarma Daily Briefs

The data in this insight is collated from the “shareholding disclosure” link on the HKEx website.
Often there is a corresponding HKEx announcement on the increase – or decrease – in the shareholding by directors. Or pledging. However, such disclosures are by no means an absolute.
The key stocks mentioned in this regular insight are Fast Retailing (9983 JP), Hang Lung (10 HK), Far East Consortium International (35 HK), and Pharmaron Beijing (3759 HK).

Trial Holdings IPO: The Investment Case

Trial Holdings (5882 JP), a discount store operator in Japan, is seeking to raise US$235 million at the IPO reference price of JPY1,550 per share. Pricing on 11 March.
Trial aims to act as a one-stop shopping store where consumers can buy whatever they want at a great price. Trial’s basic pricing strategy is Every Day Low Price.
The investment case rests on steady revenue growth, industry-leading same-store sales growth, solid margin profile and cash generation.

Geniee (6562) – Record-High Gross Profits and Recognizing Challenges

By Astris Advisory Japan

Heading in a positive direction – we saw the following positives in Q1-3 FY3/24 results; 1) sustained growth trend in quarterly gross profits, 2) all business segments generating positive returns, and 3) signs of progress regarding post-merger integration at Zelto Inc., which recorded strong monthly sales in November 2023.
The company has maintained FY3/24 guidance, implying an accelerating Q4 sales growth YoY from a seasonal upturn in activity.
We believe that Zelto Inc. will provide growth opportunities in overseas markets.

Whatever the Proxy Voting Advisor’s Criteria, It Is How Investors Actually Conduct Themselves

By Aki Matsumoto

Since many prime market listed companies have already achieved the gender and TCFD criteria, this will unlikely to be a major issue with regard to Glass Lewis’ criteria changes.
The ROE for the exception rule for companies with large policy shareholdings should have been even higher, not the same as the TSE’s 5-year average ROE of 8%.
The criteria for maximum tenure of outside directors should not have provided magic number, but rather performance and other factors that would determine whether he/she is qualified for the position.

LaKeel (4074) – Ready for the Next Growth Phase

By Astris Advisory Japan

Encouraging signs with a positive turnaround in Q4 FY12/23 – Q1-4 FY12/23 results were in line with company guidance, with Q4 FY12/23 demonstrating a major pick-up in LaKeel Product license sales resulting in a recovery in profitability QoQ.
This was a welcome development from project delays experienced in Q3 FY12/23 and highlights positive underlying demand for LaKeel’s technology.
Company guidance for FY12/24 reflects expectations of high double-digit sales and earnings growth YoY, and we believe this will be driven by intensifying efforts by LaKeel to increase market penetration of their technology.

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Feb 23

Daily Brief Utilities: Opdenergy Holdings and more

By Smartkarma Daily Briefs | Daily Briefs, Utilities Sector

In today’s briefing:

Start of Acceptance Period with Guaranteed Success

Start of Acceptance Period with Guaranteed Success

By Jesus Rodriguez Aguilar

Spanish renewables group Opdenergy Holdings (OPDE SM) will exit the stock market upon closing of Antin Infrastructure Partners (ANTIN FP)‘s takeover bid. The company is scheduled to delist on 23 April.
Minimum acceptance condition is 75%. Antin had 71.2% irrevocables, which together with a letter of intention for 6.09%, should mean the threshold is crossed.
Spread is 0.68%/7.54% (gross/annualised, assuming settlement on 26 March). Long and tender.

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Feb 23

Daily Brief Industrials: Samsung C&T, Qantas Airways, Boeing Co, Hyundai Rotem Company, Waste Management, HNI Corp, Howmet Aerospace and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

The Launch of 1st Corporate Value Up ETF on 27 February – Focus on Low PBR and Cash Flow
Qantas – Two-Year Earnings Re-Set in Prospect
A Longtime Aerospace Analyst Questions Boeing’s Future
Hyundai Rotem: Passage of Export-Import Bank Act To Support Korean Defense Companies
Waste Management Inc.: Is There A Negative Impact Of Inflation and The Changing Dynamic Of Sustainability-Related Capital Expenditures? – Major Drivers
HNI Corporation – HNI Margins Drive Adjusted EPS Beat
Howmet Aerospace: Focus on the Engine Product Market & Pricing Strategies! – Major Drivers

The Launch of 1st Corporate Value Up ETF on 27 February – Focus on Low PBR and Cash Flow

Samsung Asset Management announced today that it will be launching the first Corporate Value Up ETF on 27 February. It will focus on low PBR and positive cash flow generators.
This ETF which will be called KoAct Dividend Growth Active ETF. There are about 45 stocks that are expected to be included in this ETF.
Among the 92 companies in KOSPI 200 that are trading at less than 1x PBR, those that generate positive free cash flow are outperforming significantly.

Qantas – Two-Year Earnings Re-Set in Prospect

By Neil Glynn

With 1H24 results, Qantas followed Singapore Airlines in highlighting fare weakness in international markets and we cut our pre-tax income by 13% to FY24.
We expect FY24 pre-tax income to fall 16% yoy but also expect FY25 to fall another 5%, as our EBITDAR/ASK remains 10% above FY19 levels following 12% in 2H24.
While international markets continue to normalise, Qantas’s domestic market structure positions it favourably to continue to invest in customer service and product.

A Longtime Aerospace Analyst Questions Boeing’s Future

By Odd Lots

Boeing shares are down 20% since the start of the year, despite a booming global market for aviation
Boeing’s focus on financial performance and stock price over safety and engineering has been a concern
The current CEO David Calhoun dissolved the company’s strategy department, raising questions about Boeing’s future direction and decision-making strategies

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

Hyundai Rotem: Passage of Export-Import Bank Act To Support Korean Defense Companies

On 21 February, it was announced that the long awaited amendment to the Export-Import Bank Act was passed by the Korean National Assembly.
As a result of this passage, the capital limit of the Export-Import Bank of Korea will be raised from the current 10 trillion won to 25 trillion won.
The revision of this law is expected to benefit major defense companies in Korea including Hyundai Rotem, Hanwha Aerospace, LIG Nex1, and Korea Aerospace Industries.

Waste Management Inc.: Is There A Negative Impact Of Inflation and The Changing Dynamic Of Sustainability-Related Capital Expenditures? – Major Drivers

Waste Management, Inc.
has successfully delivered a strong end to 2023, with a 15% increase in fourth quarter operating EBITDA. This has resulted in full year operating EBITDA exceeding the company’s most recent guidance range by nearly $25 million, affirming the company’s original expectations at the start of the year.
However, despite this impressive performance, there are still risks ahead given uncertain economic conditions.

HNI Corporation – HNI Margins Drive Adjusted EPS Beat

By Water Tower Research

Before the open, HNI reported 4Q23 results, beating on adjusted EPS and roughly in line on the consolidated revenue line.
Adjusted EPS was $0.98, well ahead of our estimate of $0.84 and consensus of $0.83.
The adjusted number excluded ~$0.50 of restructuring asset impairment and acquisition-related costs.

Howmet Aerospace: Focus on the Engine Product Market & Pricing Strategies! – Major Drivers

Howmet Aerospace positively reported strong fourth quarter 2023 results, achieving or surpassing the upper end of guidance across various parameters, including revenue, EBITDA, EBITDA margin, and earnings per share.
It was reported that the company continued to grow faster than its respective markets.
The full-year figures for 2023 also revealed strong performances with a 17% increase in revenue and 18% increase in EBITDA. The earnings per share showed significant annual improvements, setting a record at $1.84 per share, marking a 31% year-over-year increase.

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Feb 23

Daily Brief Energy/Materials: CSR Ltd, Energean, Geopark Ltd, Panoro Energy ASA and more

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

In today’s briefing:

CSR (CSR AU): Saint Gobain’s $9/Share NBIO
Energean (ENOG) – Thursday, Nov 23, 2023
GeoPark Limited (NYSE: GPRK): 110% Reserve Replacement Ratio in 2023
Panoro Energy ASA (OSE: PEN): Hibiscus South discovery potentially 50-100% larger than expected

CSR (CSR AU): Saint Gobain’s $9/Share NBIO

Cie De Saint-Gobain (SGO FP) is offering CSR (CSR AU) shareholders A$9/share by way of a Scheme, a 34% premium to last close. That’s a knockout price.
The Offer is indicative. Confirmatory due diligence is ongoing. CSR board has, not surprisingly “unanimously resolved to pursue the offer at an agreed price of A$9.00“.
A firm offer would be subject to FIRB and shareholder approval. Neither should pose an issue. Assuming a firm Offer is shortly forthcoming, this could be wrapped up late-July

Energean (ENOG) – Thursday, Nov 23, 2023

By Value Investors Club

Key points

Energean has shown smart capital allocation and operational execution, particularly in the development of a large gas field with a 17-year production runway
The company’s core asset in Israel generates gas at a low cost and has promising supply-demand dynamics in the region
With a 10% dividend yield and potential for 15-20% returns in 2-3 years, Energean is being considered as a good long-term investment opportunity

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.

GeoPark Limited (NYSE: GPRK): 110% Reserve Replacement Ratio in 2023

By Auctus Advisors

2P YE23 reserves were estimated at 115.1 mmboe.
Excluding 14.6 mmboe at YE22 in Chile (being sold), this compares to 113.8 mmboe at YE22.
During 2023, GeoPark has added ~14 mmboe of 2P reserves.

Panoro Energy ASA (OSE: PEN): Hibiscus South discovery potentially 50-100% larger than expected

By Auctus Advisors

The FY23 production of 8,471 bbl/d was in line with previous indications.
YE23 cash, gross debt and cash advances had been previously reported.
The FY24 production guidance is now 11-13 mbbl/d (11-14 mbbl/d previously) as Panoro has incorporated a pause in drilling offshore EG. The main factor driving the adjusted upper limit of guidance range is the timing to secure a new rig in EG and deferral of some associated production.

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Feb 23

Daily Brief TMT/Internet: Sea , Workday Inc Class A, NVIDIA Corp, Jusung Engineering, SUMCO Corp, NetEase Inc, Datadog , Cadence Design Sys, Lattice Semiconductor and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

Sea Will Release Its Q4 2023 Earnings Report Soon
Quiddity Leaderboard S&P 500 Mar 24: Big Index Flows Possible for Workday and KKR
Nvidia: A Quality Stock that Shows Human Investors Are Unable to Discount Exponential Growth
FnGuide Semiconductor Top10 Index Rebalance Preview: One Change Likely; Close Among Potential Adds
SUMCO’s Sobering Outlook For Silicon Wafers
[NetEase, Inc. (NTES US, BUY, TP US$118) TP Change]: Strong In-House Game Performance Drives Margins
Datadog Inc: Can The Acquisition Of Actiondesk Be A Game Changer? – Major Drivers
Finding the Sweet Spot: Nvidia’s Goldilocks Quarter
Cadence Design Systems: A Solid AI Infrastructure & Product Positioning Changing Its Growth Story? – Major Drivers
Lattice Semiconductor: A Tale Of An Expanding Market & An Increasing Client Base! – Major Drivers

Sea Will Release Its Q4 2023 Earnings Report Soon

By Simon Torring

Shopee – Sea’s largest business unit and Southeast Asia’s largest e-commerce platform – has reported negative EBITDA for most of the 8 or so years since its launch.
Investors now however appear to be looking for earnings growth. In 7 of the last 9 quarterly earnings reports, investors have rewarded the company every time it has reported earnings growth (its share price has gone up in the day after the release), and penalized when it has not.
Based on our analysis (and subject to the disclaimer included below), we expect Shopee’s GMV and Revenue to improve in Q4 2023 (as compared to the previous quarter) along with its EBITDA, although earnings will likely remain in negative territory.

Quiddity Leaderboard S&P 500 Mar 24: Big Index Flows Possible for Workday and KKR

By Travis Lundy

The S&P 500 index tracks the 500 largest names listed in the US and it is one of the most highly-tracked indices in the world.
The index is reviewed quarterly. The next review will be in March 2024 and the evaluation date for the rankings for the constituent selection process is 29th February 2024.
In this insight, we take a look at Potential ADDs and Potential DELs for the rebalance. We estimate US$13.1bn one-way flow on 3 ADDs and 3 DELs.

Nvidia: A Quality Stock that Shows Human Investors Are Unable to Discount Exponential Growth

By Jeroen Blokland

Nvidia’s blowout earnings number is another example of how grasping exponential growth trends is extremely difficult for human investors.
Unlike what is often assumed, Nvidia, for now, qualifies as a quality stock, revealing relentless competitive power, low debt, and reasonable valuation.
Nvidia’s weight with Quality ETFs is bigger than its weight in the MSCI World Index, adding to quality stock outperformance.

FnGuide Semiconductor Top10 Index Rebalance Preview: One Change Likely; Close Among Potential Adds

By Brian Freitas

ISC Co Ltd (095340 KS) could replace Wonik Ips (240810 KS) in the FnGuide Semiconductor Top10 Index at the April rebalance.
Jusung Engineering (036930 KS) is ranked just behind ISC Co Ltd (095340 KS) and could be added to the index instead depending on relative price performance.
Shorts on ISC Co (095340 KS) have been stable over the last few months while there has been big covering on Wonik Ips (240810 KS) and Jusung Engineering (036930 KS).

SUMCO’s Sobering Outlook For Silicon Wafers

By William Keating

Q423 revenues of ¥105.1 billion, about 5% better than forecasted, up 5% QoQ but down ~10% YoY.
Q124 revenues forecasted to decline 17% QoQ to ¥87 billion. Not surprisingly, EBITDA will also decline 33% QoQ to ¥22.1 billion.
On a brighter note, demand growth driven by generative AI will roughly double wafer demand for servers (AI+General) by 2027

[NetEase, Inc. (NTES US, BUY, TP US$118) TP Change]: Strong In-House Game Performance Drives Margins

By Ying Pan

We expect NetEase to report C4Q23 revenue, GAAP op. profit and GAAP net income 4.9%, 5.7% and 8.5% vs. consensus.
The robust topline growth was mainly contributed by revenue recognition of <Justice Mobile> in the peak summer season.
The grossing of legacy titles like <FWWJ> is also growing steadily due to the low-price strategy. We raise our TP to US$118 to reflect the rich and diversified pipeline…

Datadog Inc: Can The Acquisition Of Actiondesk Be A Game Changer? – Major Drivers

Datadog Inc., in its Q4 2023 earnings, revealed that it ended the year on a high note.
With continued innovation and high customer adoption rates, the company’s revenue was $590 million, a 26% increase year-over-year, exceeding its guidance range.
The company’s customer growth was significant, moving from around 23,200 last year to about 27,300 currently.

Finding the Sweet Spot: Nvidia’s Goldilocks Quarter

By Douglas O’Laughlin

Nvidia’s earnings are akin to my Super Bowl.
There is no more significant event in semiconductors and AI, and each quarter, we tune into Nvidia’s results to see precisely what quarter we are in the AI hype cycle (and potentially bubble).
There is no better signpost for the entire AI ecosystem than the company making the most of the revenue so far: Nvidia.

Cadence Design Systems: A Solid AI Infrastructure & Product Positioning Changing Its Growth Story? – Major Drivers

Cadence Design Systems reported outstanding performance for Q4 and FY 2023, achieving 15% revenue growth, a non-GAAP operating margin of 42%, and over 20% non-GAAP EPS growth.
The company exited the year with a record backlog of $6 billion.
Cadence attributes this success to their innovative solutions and customer commitments to their chip to system integrated design and analysis platforms.

Lattice Semiconductor: A Tale Of An Expanding Market & An Increasing Client Base! – Major Drivers

Lattice Semiconductor Corp.
achieved solid financial results in 2023, with robust revenue growth and record gross margins.
The semiconductor industry’s cyclical correction had a slight impact on the company’s 2023 Q4 progress, which could continue into early 2024.

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Feb 23

Daily Brief Industrials: Samsung C&T, Qantas Airways, Boeing Co, Hyundai Rotem Company, Waste Management, HNI Corp, Howmet Aerospace and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

The Launch of 1st Corporate Value Up ETF on 27 February – Focus on Low PBR and Cash Flow
Qantas – Two-Year Earnings Re-Set in Prospect
A Longtime Aerospace Analyst Questions Boeing’s Future
Hyundai Rotem: Passage of Export-Import Bank Act To Support Korean Defense Companies
Waste Management Inc.: Is There A Negative Impact Of Inflation and The Changing Dynamic Of Sustainability-Related Capital Expenditures? – Major Drivers
HNI Corporation – HNI Margins Drive Adjusted EPS Beat
Howmet Aerospace: Focus on the Engine Product Market & Pricing Strategies! – Major Drivers

The Launch of 1st Corporate Value Up ETF on 27 February – Focus on Low PBR and Cash Flow

Samsung Asset Management announced today that it will be launching the first Corporate Value Up ETF on 27 February. It will focus on low PBR and positive cash flow generators.
This ETF which will be called KoAct Dividend Growth Active ETF. There are about 45 stocks that are expected to be included in this ETF.
Among the 92 companies in KOSPI 200 that are trading at less than 1x PBR, those that generate positive free cash flow are outperforming significantly.

Qantas – Two-Year Earnings Re-Set in Prospect

By Neil Glynn

With 1H24 results, Qantas followed Singapore Airlines in highlighting fare weakness in international markets and we cut our pre-tax income by 13% to FY24.
We expect FY24 pre-tax income to fall 16% yoy but also expect FY25 to fall another 5%, as our EBITDAR/ASK remains 10% above FY19 levels following 12% in 2H24.
While international markets continue to normalise, Qantas’s domestic market structure positions it favourably to continue to invest in customer service and product.

A Longtime Aerospace Analyst Questions Boeing’s Future

By Odd Lots

Boeing shares are down 20% since the start of the year, despite a booming global market for aviation
Boeing’s focus on financial performance and stock price over safety and engineering has been a concern
The current CEO David Calhoun dissolved the company’s strategy department, raising questions about Boeing’s future direction and decision-making strategies

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

Hyundai Rotem: Passage of Export-Import Bank Act To Support Korean Defense Companies

On 21 February, it was announced that the long awaited amendment to the Export-Import Bank Act was passed by the Korean National Assembly.
As a result of this passage, the capital limit of the Export-Import Bank of Korea will be raised from the current 10 trillion won to 25 trillion won.
The revision of this law is expected to benefit major defense companies in Korea including Hyundai Rotem, Hanwha Aerospace, LIG Nex1, and Korea Aerospace Industries.

Waste Management Inc.: Is There A Negative Impact Of Inflation and The Changing Dynamic Of Sustainability-Related Capital Expenditures? – Major Drivers

Waste Management, Inc.
has successfully delivered a strong end to 2023, with a 15% increase in fourth quarter operating EBITDA. This has resulted in full year operating EBITDA exceeding the company’s most recent guidance range by nearly $25 million, affirming the company’s original expectations at the start of the year.
However, despite this impressive performance, there are still risks ahead given uncertain economic conditions.

HNI Corporation – HNI Margins Drive Adjusted EPS Beat

By Water Tower Research

Before the open, HNI reported 4Q23 results, beating on adjusted EPS and roughly in line on the consolidated revenue line.
Adjusted EPS was $0.98, well ahead of our estimate of $0.84 and consensus of $0.83.
The adjusted number excluded ~$0.50 of restructuring asset impairment and acquisition-related costs.

Howmet Aerospace: Focus on the Engine Product Market & Pricing Strategies! – Major Drivers

Howmet Aerospace positively reported strong fourth quarter 2023 results, achieving or surpassing the upper end of guidance across various parameters, including revenue, EBITDA, EBITDA margin, and earnings per share.
It was reported that the company continued to grow faster than its respective markets.
The full-year figures for 2023 also revealed strong performances with a 17% increase in revenue and 18% increase in EBITDA. The earnings per share showed significant annual improvements, setting a record at $1.84 per share, marking a 31% year-over-year increase.

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Feb 23

Daily Brief Health Care: Celltrion Inc, Bangkok Dusit Medical Services, Biogen Inc, Zoetis Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

FnGuide Top10 Equal Weight Index Rebalance Preview: Celltrion Could Replace Samsung SDI
Bangkok Dusit Medical Services (BDMS TB): Core Business Drives 4Q23 Result; Outlook Remains Positive
Biogen Inc: The Breakthrough Drug Portfolio Set to Dominate Neurology – See How They’re Changing the Game! – Major Drivers
Zoetis Inc: Librela & Other Factors Contributing To Its Competitive Edge! – Financial Forecasts

FnGuide Top10 Equal Weight Index Rebalance Preview: Celltrion Could Replace Samsung SDI

By Brian Freitas

The Samsung KODEX Fn Top10 Equal Weight ETF (395170 KS) tracks the FnGuide Top 10 Equal Weight Index and has an AUM of US$241m.
We expect Celltrion Inc (068270 KS) will replace Samsung SDI (006400 KS) in the index at the March rebalance.
There will be 0.26x ADV to buy in Celltrion Inc (068270 KS) while passives will need to sell 0.17x ADV of Samsung SDI (006400 KS).

Bangkok Dusit Medical Services (BDMS TB): Core Business Drives 4Q23 Result; Outlook Remains Positive

By Tina Banerjee

Bangkok Dusit Medical Services (BDMS TB) reported double-digit top and bottomline growth in 4Q23. Growth was attributable to international and Thai non-COVID patient revenues growth.
In 2023, total revenue was THB102B, up 10% YoY, matching the higher end of the guidance range of 9–10%. EBITDA margin of 24.2% remained higher than guidance of 24.0%.
In 2024, BDMS expects healthcare business to grow continuously on the back of secular tailwinds in the healthcare sector in Thailand.

Biogen Inc: The Breakthrough Drug Portfolio Set to Dominate Neurology – See How They’re Changing the Game! – Major Drivers

Biogen concluded its Fourth Quarter and Full Year 2023, announcing several positive strides and addressing potential drawback in its prospects moving forward with its outlook for 2024.
Biogen emphasized its objective of returning to sustainable growth.
Chris Viehbacher, Biogen’s President and Chief Executive Officer, reported positive earnings per share guidance, a notable element for consideration.

Zoetis Inc: Librela & Other Factors Contributing To Its Competitive Edge! – Financial Forecasts

Zoetis, a leading company in animal health, reported strong results for the full year with an operational revenue growth of 7% which was driven by the success of their diverse portfolio, innovation and the commitment of their colleagues.
Their products designed for pain relief in osteoarthritis contributed towards a 6% growth in the U.S. sector and 9% operational growth internationally.
The companion animal portfolio showed an operational growth increasing by 8%, while the livestock portfolio also witnessed improvements, growing by 6%.

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Feb 23

Daily Brief Financials: Standard Chartered, Woori Financial Group , Ethereum, Moody’s Corp and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

StandChart Is Likely to Have More China Bohai Impairment
South Korean Banks; Woori Financial (316140 KS) Added to Buy List, Joining KB Financial (105560 KS)
Crypto Moves #16 – Why We Are Long Ethereum Layer 2s
Moody’s Corporation: New GenAI Tool

StandChart Is Likely to Have More China Bohai Impairment

By Fern Wang

StandChart may need to take further impairment hit on China Bohai Bank
VIU model is used to justify the higher carrying value compared to fair value of the holdings. There is zero headroom between the VIU model and the carrying amount.
We looked at VIU model assumptions for HSBC and StandChart. A declining NIM is likely put further pressure on the VIU model output for StandChart.

South Korean Banks; Woori Financial (316140 KS) Added to Buy List, Joining KB Financial (105560 KS)

By Victor Galliano

In our latest South Korean banks screener; we add Woori Financial to existing buy KB Financial as our preferred Korean banks picks
Delinquency ratios continued to worsen QoQ, with only Woori bucking the 4Q23 NPL trend; Woori has lagged in terms of returns, but we expect CoR control to support 2024 returns
KB has a low PBV ratio relative to its ROE, it delivers rising post-provision returns, it has a high CET1 ratio and it maintains a healthy LDR

Crypto Moves #16 – Why We Are Long Ethereum Layer 2s

By Mads Eberhardt

In the short to medium term, Ethereum is mainly depending on what is known as off-chain scaling to significantly expand its blockchain’s capacity beyond its current limit of roughly 15 transactions per second.
This strategy sets Ethereum apart from other blockchains like Solana, which primarily concentrate on scaling directly on the blockchain itself, also known as on-chain scaling.
Ethereum’s method involves using something called Layer 2s, or rollups.

Moody’s Corporation: New GenAI Tool

Moody’s Corporation showed a promising performance in their fourth quarter and full-year results of 2023.
The company ended the year with an 8% revenue growth and an increase in adjusted diluted EPS by 16%.
Within these achievements, Moody’s has been highlighted as an early adopter and innovator of GenAI. A significant accomplishment was the launch of their first-ever GenAI-enabled product in December 2023.

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Feb 23

Daily Brief Consumer: Trip.com, Trip.com Group , Fast Retailing, Trial Holdings, Adeia, Airbnb , Marriott International, Miniso, Xiaocaiyuan International Holding, Coca Cola Co and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Trip.com (9961 HK, TCOM US): 4Q23, Revenue Up by 105%, But Reached Our Last Price Target
Trip.com (9961 HK): Looks to Reap More Recovery Benefits
HK CEO & Director Dealings (23 Feb 2024): Fast Retailing, Far East Consortium, Pharmaron Beijing
Trial Holdings IPO: The Investment Case
ADEA: Adding More Licensees
Airbnb Inc: Increased Supply & Better Conversion Rates Can Lead To A Solid 2024? – Major Drivers
Marriott International: Increased Demand from Corporates and Leisure Customers Changing The Game? – Major Drivers
[Miniso Group (MNSO US, BUY, TP US$33) Company Update]: CNY Foot Traffic Growth Support Decent C1Q24
Xiaocaiyuan International Holding Pre-IPO – Strong Network Expansion and Same Store Sales Growth
The Coca-Cola Company: What Is The Impact Of Changing North American Market Dynamics? – Major Drivers

Trip.com (9961 HK, TCOM US): 4Q23, Revenue Up by 105%, But Reached Our Last Price Target

By Ming Lu

The main businesses, hotel and air ticket bookings increased by 131% YoY and 86% YoY in 4Q23.
The Chinese traveling market continued its recovery after the lift of the lockdown at the end of 2022.
The stock price is close to our last price target – Downgrade to Hold.

Trip.com (9961 HK): Looks to Reap More Recovery Benefits

By Osbert Tang, CFA

Trip.com Group (9961 HK) has a remarkable 4Q23 with adjusted net profit surged 437.1% YoY. Higher volume and better market efficiency have resulted in massive margin expansion.
Net cash has ballooned to about 15% of its share price, and this has allowed it to carry out a massive US$300m Capital Return Program in 2024.
Business has outperformed the industry in CNY, with domestic hotel and air business volume increased by 60% and 50% YoY. Its overseas platform also saw double-digit growth.

HK CEO & Director Dealings (23 Feb 2024): Fast Retailing, Far East Consortium, Pharmaron Beijing

The data in this insight is collated from the “shareholding disclosure” link on the HKEx website.
Often there is a corresponding HKEx announcement on the increase – or decrease – in the shareholding by directors. Or pledging. However, such disclosures are by no means an absolute.
The key stocks mentioned in this regular insight are Fast Retailing (9983 JP), Hang Lung (10 HK), Far East Consortium International (35 HK), and Pharmaron Beijing (3759 HK).

Trial Holdings IPO: The Investment Case

Trial Holdings (5882 JP), a discount store operator in Japan, is seeking to raise US$235 million at the IPO reference price of JPY1,550 per share. Pricing on 11 March.
Trial aims to act as a one-stop shopping store where consumers can buy whatever they want at a great price. Trial’s basic pricing strategy is Every Day Low Price.
The investment case rests on steady revenue growth, industry-leading same-store sales growth, solid margin profile and cash generation.

ADEA: Adding More Licensees

By Hamed Khorsand

ADEA reported fourth quarter results showcasing debt reduction through free cash flow generation. ADEA had eight license signings of which two were brand new licensees
Reported fourth quarter results showcasing debt reduction through free cash flow generation. ADEA had eight license signings of which two were brand new licensees
ADEA has started to invest more in R&D, which resulted in ADEA ending 2023 with nearly 11,000 patents compared to approximately 10,000 in the year prior

Airbnb Inc: Increased Supply & Better Conversion Rates Can Lead To A Solid 2024? – Major Drivers

Airbnb’s Fourth Quarter earnings for 2023 revealed significant financial growth, with 99 million Nights and Experiences booked in Q4, marking Airbnb’s highest ever fourth-quarter results.
Revenue increased by 70% year on year to reach $2.2 billion.
However, the net loss for the company stood at $249 million.

Marriott International: Increased Demand from Corporates and Leisure Customers Changing The Game? – Major Drivers

Marriott International delivered strong results in 2023 due to robust demand for travel and an increasing portfolio of over 30 leading brands.
The global room revenue per available room (RevPAR) grew nearly 15%, and net rooms increased 4.7%, driving profitable growth in earnings and cash flows.
For the fourth quarter, global RevPAR rose over 7% year-on-year, propelled by roughly equal growth in average daily rate (ADR) and occupancy levels.

[Miniso Group (MNSO US, BUY, TP US$33) Company Update]: CNY Foot Traffic Growth Support Decent C1Q24

By Eric Wen

Intra-Urban mobility in major cities and foot traffic in leading shopping malls in China have demonstrated decent growth during 2024 CNY holiday period.
We estimate Miniso domestic store sales increased 35% yoy during CNY-holiday and 11% yoy during Jan to mid-Feb 2024. We expect Miniso total revenue to increase 26% yoy in 1Q24.
We maintain the stock as BUY and maintain TP at US$33/ADS.

Xiaocaiyuan International Holding Pre-IPO – Strong Network Expansion and Same Store Sales Growth

By Ethan Aw

Xiaocaiyuan International Holding (XCY HK) is looking to raise up to US$200m in its upcoming HK IPO.
Xiaocaiyuan is a Chinese home-style cuisine restaurant operator. It prices its menus’ items to achieve average spending per consumer between RMB50 and RMB70 for its dine-in customers at its restaurants.
In this note, we talk about the company’s historical performance.

The Coca-Cola Company: What Is The Impact Of Changing North American Market Dynamics? – Major Drivers

Coca-Cola provided overall positive results despite the ongoing global challenges they faced.
James Quincey, Chairman and CEO, specifically highlighted their “all-weather strategy,” which allowed them to attain 8% comparable earnings per share growth, despite notable headwinds from a 7% currency impact.
He attributed the year’s success to the company’s strategy and improved capabilities, making Coca-Cola a more agile and efficient global organization.

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Feb 22

Most Read: Gree Inc, China Traditional Chinese Medicine, Korea Stock Exchange Kospi Index, Azure Minerals, Itoki Corp, Union Bank Of India, Hanwha Corporation and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

Gree (3632 JP) – Overnight Offering in Asset-Rich Value Trap as KDDI Sells Out
China Traditional Chinese Medicine (570.HK) – New Information on Privatization
Korea NPS Abruptly Joins Corporate Value Up Program: According to Document Obtained from NPS
Azure Minerals (AZS AU): MinRes Selling Out Paves the Way for the Scheme
Itoki (7972 JP) – Worth Thinking About Post Mega ToSTNeT-3 Buyback
Azure (AZS AU): MinRes’ Discounted Exit
Union Bank of India (UNBK IN) Placement: Using Index Inclusion Well
NPS Plans to Select Three Asset Management Companies For “Corporate Value Up” Program
China Traditional Chinese Medicine (570 HK): Sinopharm-Led Pre-Conditional Offer at HK$4.60
TCM (570 HK): Sinopharm’s $4.60/Share Offer

Gree (3632 JP) – Overnight Offering in Asset-Rich Value Trap as KDDI Sells Out

By Travis Lundy

Today after the close, KDDI Corp (9433 JP) and Gree Inc (3632 JP) announced that KDDI would offer its 8,000,000 shares in Gree in an international offering through Mizuho Intl.
The deal comes at a decently large discount and the stock is quite downtrodden. Especially when compared to its venture assets and cash, assuming invested amount is remotely viable.
The problem is that too much of revenue isn’t earning much, so this sits in a Value Trap category. Shareholder structure makes it difficult to do buybacks.

China Traditional Chinese Medicine (570.HK) – New Information on Privatization

By Xinyao (Criss) Wang

Since China TCM doesn’t deny the rumors so far after the trading halt, privatization is becoming likely this time.Rumor said formal negotiations may not begin until after the Lantern Festival.
CNPGC may not want to pay high prices on privatization.Weak sentiment/share price may help with the negotiations.But the key is to obtain the consent of other shareholders, especially Ping An.
There’s underlying logic for Taiji Group to drive this privatization. A price of higher than HKD5.1 is possible. If the price could reach HKD6 (or higher), it has exceeded expectations.

Korea NPS Abruptly Joins Corporate Value Up Program: According to Document Obtained from NPS

By Sanghyun Park

NPS abruptly joins ‘Corporate Value Up Program’, plans to select three asset managers. Deadline: this month’s 29th; results: March 19th, possibly linked to Korea Premium Index ETF launch in mid-May.
The document outlines guidelines, allocating 90-100% to value stocks, with KOSDAQ under 20%. While benchmarked to the internally-built index, it will likely focus on Korea Premium Index and KOSDAQ Global.
The fund size is crucial. NPS will disclose details later. But still, there is considerable room to this year’s ceiling for local equity; a significant amount could flow into this.

Azure Minerals (AZS AU): MinRes Selling Out Paves the Way for the Scheme

The AFR reports that JPMorgan is selling 14.5% of Azure Minerals (AZS AU) shares at A$3.42. The primary seller is said to be Mineral Resources (MIN AU), seeking to exit.
MinRes’ decision to sell out a discount rather than accept the scheme A$3.70 offer reflects the cost of securing a say on Andover and the opportunity cost of capital.
The transaction booklet will be despatched in early March. At the last close and for an early May scheme payment, the gross/annualised spread is 2.5%/13.4%.

Itoki (7972 JP) – Worth Thinking About Post Mega ToSTNeT-3 Buyback

By Travis Lundy

As discussed in Itoki (7972) Mammoth Buyback Coming Imminently After 35% Jump, the company was going to do a mega ToSTNeT-3 buyback between then and end-Feb. That happened this morning.
The company bought back 7.966mm shares (13.96%) for ¥15.9bn. That should have cleared out the bulk of the risk of the original warrant holders who bought in 2020. But…
The dilution/accretion don’t offset perfectly, and there is a clause suggesting how this might play out from here. But we can infer things from other data we now have.

Azure (AZS AU): MinRes’ Discounted Exit

JPMorgan is placing MinRes (MIN AU)‘s 14.5% stake in Azure Minerals (AZS AU) at A$3.42/share, a 5% discount to last close and a 7.6% discount to the A$3.70/share Scheme price.
It was reported last month that MinRes, who paid up to ~A$4.00/share for some of its stake, was looking to exit. But cash now vs. ~8% more in two months?
Given the recent rout in lithium and nickel prices, one wonders if a MAC landmine lurks. Or, quite simply, MinRes just needs the cash. Expect Azure to fall tomorrow.

Union Bank of India (UNBK IN) Placement: Using Index Inclusion Well

By Brian Freitas

Union Bank Of India (UNBK IN) is looking to raise up to INR 30bn (US$362m) with the floor price set at INR 142.78/share and a maximum discount of 5%.
The stock has run up a lot and with index inclusion around the corner, this is as good a time as any to issue stock.
Union Bank Of India (UNBK IN) trades cheaper than peers and could continue to outperform over the near-term.

NPS Plans to Select Three Asset Management Companies For “Corporate Value Up” Program

On 21 February, NPS announced that it will select three domestic asset management companies to manage funds that will be allocated to the “corporate value up” program.
NPS plans to accept proposals from the local asset management and investment advisory companies from 21 to 29 February. NPS is likely to finalize the selected candidates sometime in March.
We provide a list of 34 companies where the NPS has at least 5% ownership stake, with PBR of 0.5x or less, and included in KOSPI 200.

China Traditional Chinese Medicine (570 HK): Sinopharm-Led Pre-Conditional Offer at HK$4.60

China Traditional Chinese Medicine (570 HK) announced a privatisation offer from the Sinopharm-led consortium at HK$4.60 per share, a 47.4% premium to the undisturbed price.
The pre-condition relates to various Chinese regulatory approvals. As SOE entities own the offeror, regulatory approvals will be a formality. The offer price is final.
Ping An Insurance (H) (2318 HK), which holds a blocking stake, will be supportive. The offer is fair when the previously (higher) rumoured offers are adjusted for the market downturn.

TCM (570 HK): Sinopharm’s $4.60/Share Offer