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Smartkarma Daily Briefs

Daily Brief United States: Revolution Medicines, Ecovyst, EURO/US DOLLAR, Xperi, Colgate Palmolive Co, SmartRent, SS&C Technologies, ACCO Brands, Hawkins Inc, iPower and more

By | Daily Briefs, United States

In today’s briefing:

  • Smartkarma Webinar | High Conviction Trade Ideas in the US
  • ECVT: The Earnings Normalcy
  • Comment On Exchange Rate EUR/USD
  • XPER: Connected Car Connected Earnings
  • Colgate-Palmolive Company: Strong Sales
  • SMRT – Accounting vs. Reality
  • SS&C Technologies Holdings Inc.: Can The New SS&C Flex Become A Major Catalyst For Revenue Growth? – Key Drivers
  • ACCO: Caution Reigns Supreme
  • HWKN: Returning to Buy Rating
  • IPower, Inc. -Building a Dynamic E-Commerce Home and Commercial Goods Business


Smartkarma Webinar | High Conviction Trade Ideas in the US

By Smartkarma Research

  • In the next installment of our Webinar series, we go live with Smartkarma Insight Provider Andrei Zakharov 
  • He will be discussing some U.S. SaaS stocks, crypto mining companies as part of his High Conviction Trade Ideas in the US.
  • He will also be sharing his insights into his high-conviction trade idea in biotech – oncology-focused company, Revolution Medicines. 

The webinar will be hosted on Wednesday, 14 August 2023, 17:00 SGT/HKT.

Andrei Zakharov is the founder of independent equity research firm Algosun Global Limited, with broad professional experience at leading multinational banks Citibank and Morgan Stanley. Andrei has a respectable background in wealth advisory services for UHNW individuals, alternative energy buy-side research, in-depth analysis of pre-IPO technology unicorns, and portfolio management.


ECVT: The Earnings Normalcy

By Hamed Khorsand

  • ECVT has gone from one maintenance issue at the beginning of the year to another that is expected to impact second half results and creates near-term headwind for investor sentiment.
  • Maintenance and CapEx spending is likely to receive much of the scrutiny from investors after ECVT had two issues this year. However, they are unrelated, and one was from weather
  • The sell-off in ECVT’s stock price after the quarterly results reflects investor anxiety over the business being able to generate free cash flow on a consistent basis

Comment On Exchange Rate EUR/USD

By VRS (Valuation & Research Specialists)

  • The EUR/USD exchange rate ended up moving upwards in June 2023 despite the various fluctuations occurring during the month.
  • During the first ten trading days of the period under consideration, the pair was fluctuating along a narrow range, i.e. 1.07-1.08.
  • From June 13th – 21st, the exchange rate increased significantly whereas in the following trading sessions, the pair faced some ups and downs, finally closing with a slight rise on monthly basis, i.e.compared to end of May.

XPER: Connected Car Connected Earnings

By Hamed Khorsand

  • XPER reported second quarter results underscoring the progress the Company has made in securing new design wins and revenue opportunities for its connected car and media platform segments
  • Simultaneous with the second quarter results, XPER announced Sharp would use TiVo operating system for smart TVs starting in 2024
  • New design wins for DTS AutoSense and DTS AutoStage are expected to translate into revenue towards the end of 2024

Colgate-Palmolive Company: Strong Sales

By Baptista Research

  • Colgate-Palmolive Company delivered a solid result and managed an all-around beat in the last quarter.
  • The company produced a decent performance in terms of organic sales growth.
  • In addition to increasing its gross margin, Colgate-Palmolive also increased its operating margin.

SMRT – Accounting vs. Reality

By Guasty Winds

  • SmartRent’s 2Q was a bit of a head-scratcher. The significant growth in sales from 1Q didn’t carryover into 2Q, with top-line decelerating from ~74% YoY in Q1 to 26% YoY in 2Q.
  • Trends of key KPIs suggest deterioration in the underlying business is continuing and in fact worsening, as we have seen from industry peers recently.
  • The exact cause of such is unclear given management’s hesitance to provide clear commentary.

SS&C Technologies Holdings Inc.: Can The New SS&C Flex Become A Major Catalyst For Revenue Growth? – Key Drivers

By Baptista Research

  • SS&C delivered mixed results for the previous quarter, with revenues above the analyst consensus.
  • The company’s strength was evident in its alternative business, particularly private markets, which saw a significant growth of over 20%, as well as in its Intralinks and retirement businesses.
  • SS&C plans to focus on expense management, prioritize innovation, and continue product rollouts.

ACCO: Caution Reigns Supreme

By Hamed Khorsand

  • ACCO reported second quarter results with a greater pull-in of back-to-school related sales, but management took a cautious stance on outlook for the rest of the year
  • The second quarter is seasonally one of the stronger periods of the year due to the timing of retailers taking inventory for the back-to-school season
  • Without a stable back to school shopping season ACCO would be dependent on the holiday season in fourth quarter to achieve its free cash flow guidance for the year

HWKN: Returning to Buy Rating

By Hamed Khorsand

  • HWKN reported fiscal first quarter (June) results where higher prices had offset the decline in unit volume.
  • Without having to take LIFO reserves, HWKN was able to materially beat our expectations. We do not believe this is likely to occur again in the September quarter
  • There is no evidence of unit volumes rising in the short-term. However, input costs might have stabilized in the June quarter

IPower, Inc. -Building a Dynamic E-Commerce Home and Commercial Goods Business

By Water Tower Research

  • iPower has built a growing, efficient e-commerce platform to market a wide range of home and commercial goods, including hydroponics supplies, fans, shelving systems, pet supplies, and furniture.

  • The company has multiple product expansion opportunities, setting the business up for continued strong long- term top-line growth.

  • iPower leverages extensive data analytics at every step of the value chain to optimize its processes, from product conception and design, to sourcing, logistics, and marketing. 


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Daily Brief Japan: Inpex Corp, Keisei Electric Railway Co, Beenos Inc, Sumitomo Mitsui Financial Group (Sponsored Adr), Tokyo Stock Exchange Tokyo Price Index Topix, Recruit Holdings, Restar Holdings Corporation, Japan Elevator Service Holding and more

By | Daily Briefs, Japan

In today’s briefing:

  • StubWorld: Japex/Inpex, Amorepacific, Wynn, Shimao, Takara, Silicon Integrated/United Micro
  • Keisei Electric (9009): The Chinese Are Back.
  • Beenos: Ramps Up Buybacks
  • SMFG – Least Achieved of FY24 Forecast, With Lowest ROE of Mega’s & Less JPY Bond Leverage
  • The Fruit of TSE Market Reorganization Was the Creation of Prime Market with 600 Fewer Companies
  • Recruit 1Q: Earnings Further Slow Down; New Pricing Model Seems to Impact HR Tech Further
  • Restar Holdings (3156) – Remaining on Course with Business Transformation
  • Q1 FY3/2024 Results Update – Japan Elevator Service Holdings (6544)


StubWorld: Japex/Inpex, Amorepacific, Wynn, Shimao, Takara, Silicon Integrated/United Micro

By David Blennerhassett

  • For a change of pace, this insight briefly canvasses a clutch of Holdco’s trading at extreme levels. 
  • Preceding the chart-heavy insight are the current setup/unwind tables for Asia-Pacific Holdcos.
  • These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

Keisei Electric (9009): The Chinese Are Back.

By Henry Soediarko

  • The moment of truth is here, the Chinese are finally coming back to Japan. 
  • Keisei Electric Railway Co (9009 JP) is one of the biggest beneficiaries of increased tourist arrivals in Japan. 
  • It is trading at 0.04 PEG, a very low valuation considering its potential for producing large growth rate. 

Beenos: Ramps Up Buybacks

By Oshadhi Kumarasiri

  • Beenos revealed a ¥300m buyback plan in 2QFY23 and recently declared a ¥500m buyback in 3QFY23. This incremental buybacks is likely to continue due to disposal of incubator investments.
  • The cash balance of 34% of total assets and over 49% of market cap, supports the ongoing buyback trend even if incubator divestments take longer than expected.
  • Hence, we expect Beenos Inc (3328 JP)’s Holdco discount to move closer to the 20% mark, potentially resulting in a 75% upside in the short term.

SMFG – Least Achieved of FY24 Forecast, With Lowest ROE of Mega’s & Less JPY Bond Leverage

By Daniel Tabbush

  • SMFG achieved less of its FY24 profit forecast than peer megabanks; less upgrades
  • SMFG reported a far lower ROE than peer megabanks & some worse financial metrics
  • SMFG’s JPY bonds are only 0.88x of total equity; it is less leveraged than peer megabanks

The Fruit of TSE Market Reorganization Was the Creation of Prime Market with 600 Fewer Companies

By Aki Matsumoto

  • The number of companies that announced their intention to move to Standard Market has increased to 48, while most of 268 transitional companies are expected to move to Standard Market.
  • Companies that cannot meet Prime Market listing criteria in 2026 can also move to Standard Market by undergoing examination, so they don’t need to announce their move in a hurry.
  • Prime Market has slimmed down from TSE 1st Section by 600 companies, but it will remain market where many companies with market capitalization of about 50 billion yen are listed. 

Recruit 1Q: Earnings Further Slow Down; New Pricing Model Seems to Impact HR Tech Further

By Shifara Samsudeen, ACMA, CGMA

  • Recruit Holdings (6098 JP) reported 1QFY03/2024 results yesterday. Revenue and OP increased 0.9% and 1.9% YoY to ¥850.8bn (vs consensus ¥818.7bn) and ¥121.6bn (vs consensus ¥109.9bn) respectively.
  • 1QFY03/24 revenues of ¥850.8bn and adjusted EBITDA of ¥165.9bn were higher than the company guided revenues and adj. EBITDA of ¥800-830bn and ¥140-160bn respectively.
  • HR Tech segment’s revenues declined 9.1% and Recruit has shifted to a new pricing model for HR Tech which we think would further impact the segment’s earnings.

Restar Holdings (3156) – Remaining on Course with Business Transformation

By Astris Advisory Japan

  • Focus maintained on growth, experiencing temporary headwinds – Q1 FY3/2024 results showcased the company’s strong execution in driving growth, with sales increasing by 6.2% YoY.
  • Although there was a major improvement in profitability in the Environmental Energy segment, the core Semiconductor and Electronics Components experienced a negative of persistent demand weakness in China.
  • There was also reduced spot demand, negative FX translation impact YoY and on inventory valuation, and allowance for doubtful debt related to a key customer. 

Q1 FY3/2024 Results Update – Japan Elevator Service Holdings (6544)

By Astris Advisory Japan

  • Accelerating growth profile – Japan Elevator Service (JES) made a strong start in Q1 FY3/2024, reporting high double-digit growth for both sales (+21.4% YoY) and operating profit (+35.7% YoY).
  • It continues to gain market share in Maintenance & Repair with its quality and cost-efficient offering and is experiencing accelerating demand in its Modernization business with its structural tailwinds.
  • While this may dilute the sales mix, the combination of cost management and rising engineer productivity is driving operational leverage.

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Most Read: MOG Digitech Holdings , Power Finance, Hotel Shilla, Eoflow , Inpex Corp, Alibaba Group Holding , Alibaba (ADR), Hongkong Land, Ecopro Co Ltd and more

By | Daily Briefs, Most Read

In today’s briefing:

  • MOG Digitech (1942 HK): What the Flow Is Going On?
  • India – Positioning on Some Interesting Names
  • China to Finally Allow Group Tours to Korea and Japan?
  • Insulet’s Lawsuit Against Eoflow, Medtronic’s Tender Offer, and Eoflow’s “Special Sauce”
  • Inpex (1605 JP) – Earnings, Forecasts and a BIGLY Buyback (Aug 2023 Version)
  • Alibaba (9988 HK): 1Q24, Brilliant Result After Reorganization, 90% Upside
  • Alibaba: A Quick Take on 1QFY24
  • Hongkong Land: Exchange Square Sale Would Be BIG News. (If True)
  • StubWorld: Japex/Inpex, Amorepacific, Wynn, Shimao, Takara, Silicon Integrated/United Micro
  • Two Noteworthy Issues in Korea’s SSF/SSO Selection in September Round


MOG Digitech (1942 HK): What the Flow Is Going On?

By Brian Freitas

  • MOG Holdings (1942 HK) has been skyrocketing in price since the start of the year. Remarkably, there is little change in the number of shares that trade daily.
  • MOG Holdings (1942 HK) has a market cap of US$6.44bn and trades at a modest Price/Sales ratio of 75x and an equally modest Price to Book Value of 89.5x.
  • Liquidity has improved to the point where the stock could be added to some indices. However, there is a precedent of stocks not being added following market participant feedback.

India – Positioning on Some Interesting Names

By Brian Freitas


China to Finally Allow Group Tours to Korea and Japan?

By Douglas Kim

  • In the past several days, there have been numerous new flow that the Chinese government is likely to allow group tours to South Korea and Japan in the coming days. 
  • The group tours from China to South Korea which has been banned since March 2017, are expected to resume after six years, according to the Korean Embassy in China.
  • Nikkei Asia also reported on 9 August that the Chinese government is ready to allow group tours to Japan as early as this week.

Insulet’s Lawsuit Against Eoflow, Medtronic’s Tender Offer, and Eoflow’s “Special Sauce”

By Douglas Kim

  • Insulet Corp (PODD US)’s lawsuit against Eoflow (294090 KS) caused a sharp decline in Eoflow’s share price today (down 10.7% to 24,950 won).
  • Insulet is accusing Eoflow of hiring several senior personnel that have helped Eoflow to develop a product that could take away market share from Insulet. 
  • The most important factor may be Eoflow’s “special sauce” which is some kind of technology/mechanism that allows this 17% greater efficiency/convenience for the wearable EOPatch insulin device.

Inpex (1605 JP) – Earnings, Forecasts and a BIGLY Buyback (Aug 2023 Version)

By Travis Lundy

  • A year ago I wrote that same headline as Inpex Corp (1605 JP) reported H1 results, a change in forecasts, and a bigly buyback.
  • Yesterday, Inpex reported FY2023 H1 results, a change in forecasts, and a bigly buyback. 
  • The mechanics are the same. The impact is a bit different, but it is worth looking at. Then there is the event on 28 February 2024.

Alibaba (9988 HK): 1Q24, Brilliant Result After Reorganization, 90% Upside

By Ming Lu

  • The revenue growth rate rose to 14% in 1Q24, compared to the past four stagnant quarters.
  • All businesses continued to improve their margins, so that the general operating margin rose to 19% in 1Q24 versus 12% in 1Q23.
  • We believe the re-organization is successful and the stock price is overly impacted. Buy.

Alibaba: A Quick Take on 1QFY24

By Oshadhi Kumarasiri

  • Alibaba (ADR) (BABA US)‘s 1QFY24 revenue and OP beat consensus by RMB 9.2bn and RMB 14.4bn respectively, possibly on the back of a successful 6.18 shopping festival.
  • It looks like Alibaba Group Holding (9988 HK) has decided to abandon its New Retail Strategy and instead, put more effort into e-commerce, especially on popular platforms like Taobao and Tmall.
  • Although this is a good-sign and could rally the stock short-term, we would still steer clear of Alibaba as we remain skeptical about the overall health of the Chinese economy.

Hongkong Land: Exchange Square Sale Would Be BIG News. (If True)

By David Blennerhassett

  • According to Sing Tao, two PRC firms and a mainland bank have formed a consortium to acquire Hongkong Land (HKL SP)‘s 33-storey Three Exchange Square.
  • This “news” is straight out of left field. For its part, HKL said the market rumour is pure speculation.
  • HKL’s P/B of 0.24x is closing in on its all-time low of 0.21x during the depths of Covid. 

StubWorld: Japex/Inpex, Amorepacific, Wynn, Shimao, Takara, Silicon Integrated/United Micro

By David Blennerhassett

  • For a change of pace, this insight briefly canvasses a clutch of Holdco’s trading at extreme levels. 
  • Preceding the chart-heavy insight are the current setup/unwind tables for Asia-Pacific Holdcos.
  • These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

Two Noteworthy Issues in Korea’s SSF/SSO Selection in September Round

By Sanghyun Park

  • Recent information leaked through local media reveals that KRX has ultimately opted not to list Ecopro Co’s SSF in the upcoming September round.
  • Given the unusually high trading volume of at-the-money (ATM) options in the local SSO market, the market’s interest in covered calls for dividend-yielding stocks can be substantial.
  • So, we should pay attention to stocks whose SSO is already listed or will be newly listed in September among those that have shifted their ex-dividend dates to post-dividend confirmation.

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Daily Brief Consumer: L’Occitane, Hotel Shilla, Invocare Ltd, Universal Entertainment, Coupang , Li Auto , 4imprint and more

By | Consumer, Daily Briefs

In today’s briefing:

  • L’Occitane (973 HK): HK$35 Offer from the Controlling Shareholder?
  • China to Finally Allow Group Tours to Korea and Japan?
  • L’Occitane (973 HK): Ripe for a Makeover?
  • InvoCare Agrees To TPG’s Lower Offer
  • InvoCare (IVC AU): TPG’s Binding Proposal at A$12.70
  • Universal Entertainment: Pivoting Our Bullish Focus to Basic Verticals from Okada Casino Only
  • [Coupang (CPNG US, SELL, TP US$14.4) TP Change]: Margin Beat Due to Higher 3P Spend on Ads and FLC
  • [Li Auto Inc. (LI US, BUY, TP US$57)TP Change]: MEGA Is the Next Catalyst…Reiterate as Our Top Pick
  • 4imprint Group – Record H123 customer demand


L’Occitane (973 HK): HK$35 Offer from the Controlling Shareholder?

By Arun George

  • According to Bloomberg, L’Occitane (973 HK) is set to receive a HK$35 per share privatisation offer from Reinold Geiger, the Chairman and the largest shareholder.
  • The rumoured price is attractive and represents an all-time high share price. Therefore, Acatis KVG, the shareholder with a blocking stake, would be supportive.
  • The rumoured price implies multiples at a discount to peer multiples, which explains Mr Geiger’s ambitions for a possible European listing to secure higher valuation multiples. 

China to Finally Allow Group Tours to Korea and Japan?

By Douglas Kim

  • In the past several days, there have been numerous new flow that the Chinese government is likely to allow group tours to South Korea and Japan in the coming days. 
  • The group tours from China to South Korea which has been banned since March 2017, are expected to resume after six years, according to the Korean Embassy in China.
  • Nikkei Asia also reported on 9 August that the Chinese government is ready to allow group tours to Japan as early as this week.

L’Occitane (973 HK): Ripe for a Makeover?

By David Blennerhassett

  • In late 2018, there were reports that French beauty retailer L’Occitane (973 HK) had drawn interest from Advent International. That rumour came to naught. 
  • Similarly, late last month, L’Occitane clarified media reports that it had not received any Offer or proposal. 
  • After going into a trading halt this morning, reportedly (Reuters) Chairman Reinold Geiger has been discussing a possible offer of ~HK$35 for each L’Occitane share he doesn’t already own.

InvoCare Agrees To TPG’s Lower Offer

By David Blennerhassett

  • After pitching a A$13/share NBIO on the 15 May, TPG has now inked a Scheme Implementation agreement with InvoCare (IVC AU) at A$12.70/share, inclusive of a A$0.60/share fully franked dividend. 
  • This compares to PE-outfit TPG’s A$12.65/share NBIO on the 7 March – which Australia’s leading funeral services provider InvoCare promptly rejected.  
  • A comparatively benign flu season, and an expected ~10% decline in 1H23 EBITDA, largely account for InvoCare’s change of heart.

InvoCare (IVC AU): TPG’s Binding Proposal at A$12.70

By Arun George

  • Invocare Ltd (IVC AU) has entered a SID with TPG at A$12.70 per share, a modest -2.3% discount to the previous non-binding offer of A$13.00 per share.
  • The price cut was justified by a trading update which noted a challenging near-term macro-environment and softening in market volumes. The median peers’ share prices have also derated.
  • The offer requires shareholder, FIRB and OIO approval. At the last close and for the end of November payment, the gross and annualised spread is 1.8% and 5.7%, respectively. 

Universal Entertainment: Pivoting Our Bullish Focus to Basic Verticals from Okada Casino Only

By Howard J Klein

  • We have been covering UE for five years principally because we were bullish about its intentions to bring its Manila casino business public.
  • Our focus has shifted. We see the casino IPO as inevitable but we like the stock now because it has performed well in its core Pachinko and media businesses post-covid. 
  • If the Okada casino deal gest past current legal issues it would be a catalyst “bonus” to holders who come into the stock now, on a slight dip.

[Coupang (CPNG US, SELL, TP US$14.4) TP Change]: Margin Beat Due to Higher 3P Spend on Ads and FLC

By Shawn Yang

  • CPNG reported C2Q23 top-line, adjusted EBITDA, and GAAP net profit in-line, 45%, and 102% vs. our estimate, and 2%, 27%, and 49% vs. consensus, respectively.
  • Product commerce EBITDA margin rose 2ppts QoQ, which offset the 126% QoQ increase to developing offerings losses, which rose due to increased investment in its Taiwan business.
  • Given improved product commerce profitability, we raise our TP to US$ 14.4, but maintain SELL to reflect the impact of China e-commerce on CPNG.

[Li Auto Inc. (LI US, BUY, TP US$57)TP Change]: MEGA Is the Next Catalyst…Reiterate as Our Top Pick

By Shawn Yang

  • Li Auto reported solid 2Q23 results, with both top line beating cons/our est. by 5.3%/3.6% and GPM of 21.8% beating cons/our est. by 1.1/1.7ppt.
  • We reiterate that capacity ramp-up is the key for Q3/Q4 delivery. Q3 sees a temporary capacity bottleneck albeit this is likely to be resolved in Q4.
  • We expect the launch of MEGA BEV in 4Q23 to be the next catalyst. We reiterate Li Auto as our top pick and raise TP due to better-than-expected margin outlook.

4imprint Group – Record H123 customer demand

By Edison Investment Research

4imprint’s interim results reflect the narrative at last week’s trading update, being strong underlying demand, an uptick in gross margin as the supply chain bottlenecks ease and strong returns on each dollar of marketing spend. Having upgraded following the update, we have now ‘tidied up’ our modelling for FY23 and FY24. With the buy-in of the legacy defined benefit pension and the accelerated recovery contributions, plus payment of the special dividend, we expect 4imprint to end FY23 with net cash of around $72m. This gives plenty of firepower to support continued growth, helped by a likely project in FY24 to extend the Oshkosh distribution centre. The group is clearly outperforming its market and building (profitable) share.


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Daily Brief Financials: Power Finance, Commonwealth Bank of Australia, Hana Financial, Hopson Development, SES AI Corp, Target Healthcare REIT PLC, Tetragon Financial Group Ltd/F and more

By | Daily Briefs, Financials

In today’s briefing:

  • India – Positioning on Some Interesting Names
  • CBA – The Applause Over Results Seem Misplaced, Considering Credit Metrics
  • South Korean Banks Screen; Stick with Hana Financial (086790 KS)
  • Morning Views Asia: China SCE, Hopson Development, Sunny Optical Technology Group
  • SES AI Corp. – 2Q23 Results: Net Loss Reduced by $10.8 Million
  • Target Healthcare REIT – Fully covered DPS and positive total return
  • Tetragon Financial Group – Leveraging up for new investments


India – Positioning on Some Interesting Names

By Brian Freitas


CBA – The Applause Over Results Seem Misplaced, Considering Credit Metrics

By Daniel Tabbush

  • Credit cost surge in 1H23 is strangely tempered in 2H23 results, although still rising
  • Despite rising credit costs, they remain at relatively low levels compared with history
  • Data on credit metrics suggest to us that credit costs should have been higher in 2H23

South Korean Banks Screen; Stick with Hana Financial (086790 KS)

By Victor Galliano

  • In our latest South Korean banks screener; we stick with quality play Hana Financial but remove contrarian call Industrial Bank of Korea, due to fast rising credit quality headwinds
  • NPLs and precautionary quality credits continue on a rising trend, whilst Hana seems to be containing delinquency better than most
  • Hana has a low PBV ratio relative to its premium ROE, high post-provision returns, a sound CET1 ratio and a healthy LDR; Kakaobank is one for the watchlist

Morning Views Asia: China SCE, Hopson Development, Sunny Optical Technology Group

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.


SES AI Corp. – 2Q23 Results: Net Loss Reduced by $10.8 Million

By Water Tower Research

  • By the end of 2023, the company plans to increase monthly production capacity to around 1,000 100Ah Li-Metal cells per month per line.

  • The company’s lines in Shanghai and South Korea make about 500 large 100Ah Li-Metal cells per month with one shift and it plans to add a second shift.

  • Earlier this year, the company announced B-sample line preparation, which is a dedicated B-sample EV cell for one of its customers. 


Target Healthcare REIT – Fully covered DPS and positive total return

By Edison Investment Research

Target Healthcare REIT’s Q423 shows a second consecutive quarter of NAV growth, as property yields stabilise and indexed rent uplifts drive valuation growth. Rental growth and near-full rent collection are supporting earnings and delivering full dividend cover. Audited full year results will be published in early October.


Tetragon Financial Group – Leveraging up for new investments

By Edison Investment Research

Tetragon Financial Group (Tetragon) reported a 1.7% ROE in H123 and its NAV increased by 1.7% in total return terms. The portfolio gained 3.0% on the back of TFG Asset Management (which remains Tetragon’s largest asset, representing 50% of its NAV), private equity assets and its direct listed equity investments, while the remaining asset classes had a limited impact on NAV. Tetragon targets returns uncorrelated with broader equity markets and a 10–15% ROE (9.9% on average over the last five financial years, and 11.4% pa since IPO). In H123 Tetragon was a net investor and increased its credit facility utilisation to 75% (US$300m), deploying capital predominantly into private equity assets and hedge funds, and further supporting the growth of TFG Asset Management.


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Daily Brief Industrials: YTO Express, TVS Supply Chain Solutions, RELX and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Quiddity Primer for STAR 50 Index Rebalance Events
  • TVS Supply Chain Solutions IPO – RHP Updates, Peer Comparison & Thoughts on Valuation
  • Relx Plc: Diving Deep into Their Growth Strategies! – Key Drivers


Quiddity Primer for STAR 50 Index Rebalance Events

By Janaghan Jeyakumar, CFA

  • STAR 50 Index represents the performance of the top 50 securities by market capitalization and liquidity listed on the Science and Technology Innovation (STAR) Board of the Shanghai Stock Exchange.
  • This is one of the most significant indices in Mainland China when considering the average passive AUM per stock as a percentage of float.
  • In this insight, we take a brief look at the index selection methodology and the historical price and volume performance of STAR 50 index rebalance baskets.

TVS Supply Chain Solutions IPO – RHP Updates, Peer Comparison & Thoughts on Valuation

By Ethan Aw

  • TVS Supply Chain Solutions (1915741D IN) is looking to raise up to US$110m in its India IPO, after downsizing from an earlier float of up to US$500m.
  • TVS SCS is an Indian supply chain logistics solution provider which also has global capabilities and network across the value chain with cross deployment abilities, according to RedSeer. 
  • In our previous note, we looked at the company’s past performance. In this note, we talk about RHP updates, undertake a peer comparison and provide our thoughts on valuation.

Relx Plc: Diving Deep into Their Growth Strategies! – Key Drivers

By Baptista Research

  • Relx had a decent financial performance in the recent quarter and is being driven by a continued shift in the business mix toward higher-growth analytics and decision tools that provide increased value to their clients across market categories.
  • The underlying adjusted operating profit increased by 16%.
  • All four business segments expanded well, with underlying adjusted operating profit growth matching or exceeding underlying sales growth.

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Daily Brief TMT/Internet: NTT (Nippon Telegraph & Telephone), Kyoden Co Ltd, Advanced Micro Devices, Softbank Group, KPIT Technologies, Taiwan Semiconductor (TSMC), FUJIFILM Holdings, Charter Communications and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Amari Ni Mo… NTT (9432)
  • Kyoden (6881 JP) MBO – An Small, Easy, Illiquid, Light But Not Horribly Unfair Done Deal at ¥600
  • AMD. Doubling Down On AI Acceleration
  • Softbank (9984 JP): WeWork on the Brink and Other Factors
  • KPIT: Stellar Q1FY24 Earnings
  • Kyoden Company (6881 JP): Founder’s JPY600 Tender Offer
  • Taiwan Tech Weekly: U.S. Announces New Bans on Investment into Chinese High Tech Industries
  • Fujifilm: Earnings Beat; Yet to Trade in Line with Healthcare Players
  • Charter Communications Inc.: Powering Ahead With These 3 Growth Catalysts! – Financial Forecasts


Amari Ni Mo… NTT (9432)

By Travis Lundy

  • NTT reports a Q1 which looks like KDDI where the business looks like KDDI and a bit better than that where it doesn’t. Good. Not great. 
  • But NTT announced a ¥200bn buyback. Again good. Not great. 
  • And on Sunday, LDP politician Amari spoke on a Sunday news show about the possible govt selldown of NTT shares. 20yrs is a long time. So no overhang.

Kyoden (6881 JP) MBO – An Small, Easy, Illiquid, Light But Not Horribly Unfair Done Deal at ¥600

By Travis Lundy

  • Today, the personal holding company of Kyoden Co Ltd (6881 JP) founder Hashimoto-san announced a Tender Offer to take the company private. 
  • Together with his company, he owns 64.75%. He only needs 1.93% to tender. The combination of Shokochukin, SMBC, and Yokohama Bank get him over the line. 
  • This is small, illiquid, and will trade tight, but it’s a done deal. 

AMD. Doubling Down On AI Acceleration

By William Keating

  • AMD reported Q2’23 revenues of $5.4 billion, $100 million above the guided midpoint, flat sequentially but down 18% YoY, largely attributable to weakness in their client segment revenues.
  • Q3’23 revenue of $5.7 billion at the midpoint,  a modest 5.5% increase sequentially and ~2.5% YoY.
  • AMD has a lot riding on its MI300 launch but can it really take a bite from NVIDIA’s lunch?

Softbank (9984 JP): WeWork on the Brink and Other Factors

By Victor Galliano

  • Softbank and the Vision Fund’s exposure to WeWork – estimated at USD1.8bn – look increasingly to be at risk of being written off
  • Masa’s debts to SoftBank stand at USD5.1bn at 1QFY23 end and we believe that private company valuations are vulnerable, especially in the light of the recent Union Square Ventures write-downs
  • Softbank shares trade at a 36% discount to the stated NAV; with Alibaba gone, the potential Arm IPO valuation is critical but SVF1 and 2 private company valuations remain questionable

KPIT: Stellar Q1FY24 Earnings

By Ankit Agrawal, CFA

  • KPIT reported a strong Q1FY24 with 7.1% constant-currency (CC) revenue growth and EBIDTA growth of 13.3% QoQ. EBITDA margin expanded by 90bp QoQ to end at 20%.
  • KPIT is upbeat about the demand environment. OEMs are continuing to spend heavily on new technologies. KPIT itself is investing significantly in R&D, especially Generative AI.
  • Deal wins was healthy at $190mm vs typical run-rate of $150mm+. The pipeline is also healthy across practices.

Kyoden Company (6881 JP): Founder’s JPY600 Tender Offer

By Arun George

  • Kyoden Co Ltd (6881 JP) has recommended the founder’s tender offer of JPY600 per share, a 32.5% premium to the undisturbed price (9 August).
  • The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the tender offer is set at a 1.91% ownership ratio.
  • The minimum acceptance condition (lower limit) requires an undemanding 5.4% minority acceptance rate. The tender offer is reasonable. 

Taiwan Tech Weekly: U.S. Announces New Bans on Investment into Chinese High Tech Industries

By Vincent Fernando, CFA

  • U.S. has announced new bans on PE and VC investment into key Chinese tech industries.
  • Elan Microelectronics, ChipMOS reported good results, two longs to consider as we still see upside.
  • Apple earnings short-term trades update — We’re closing out both trades, one at a loss and one roughly flat.

Fujifilm: Earnings Beat; Yet to Trade in Line with Healthcare Players

By Shifara Samsudeen, ACMA, CGMA

  • FUJIFILM Holdings (4901 JP) reported 1QFY03/24 results today. Both revenue and OP increased 5.6% and 5.2% YoY to ¥660.8bn (vs consensus ¥649bn) and ¥52.2bn (vs consensus ¥52.1bn) respectively.
  • Materials segment’s earnings were negatively impacted during the quarter due to a stagnant semiconductor market, however, we expect segment’s earnings to improve with the completion of Entegris acquisition.
  • Despite the company successfully transitioning into a healthcare player, Fujifilm is still trading in line with imaging/photocopy players and there is significant upside to the company’s current share price.

Charter Communications Inc.: Powering Ahead With These 3 Growth Catalysts! – Financial Forecasts

By Baptista Research

  • Charter Communications delivered a disappointing set of results as the company was unable to meet the revenue and earnings expectations of Wall Street.
  • The company attracted 77,000 new Internet users in the second quarter, and its Spectrum One product and network development plans continue to pay off.
  • The overall number of mobile lines was over 6.6 million at the end of the second quarter.

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Daily Brief Industrials: YTO Express, TVS Supply Chain Solutions, RELX and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Quiddity Primer for STAR 50 Index Rebalance Events
  • TVS Supply Chain Solutions IPO – RHP Updates, Peer Comparison & Thoughts on Valuation
  • Relx Plc: Diving Deep into Their Growth Strategies! – Key Drivers


Quiddity Primer for STAR 50 Index Rebalance Events

By Janaghan Jeyakumar, CFA

  • STAR 50 Index represents the performance of the top 50 securities by market capitalization and liquidity listed on the Science and Technology Innovation (STAR) Board of the Shanghai Stock Exchange.
  • This is one of the most significant indices in Mainland China when considering the average passive AUM per stock as a percentage of float.
  • In this insight, we take a brief look at the index selection methodology and the historical price and volume performance of STAR 50 index rebalance baskets.

TVS Supply Chain Solutions IPO – RHP Updates, Peer Comparison & Thoughts on Valuation

By Ethan Aw

  • TVS Supply Chain Solutions (1915741D IN) is looking to raise up to US$110m in its India IPO, after downsizing from an earlier float of up to US$500m.
  • TVS SCS is an Indian supply chain logistics solution provider which also has global capabilities and network across the value chain with cross deployment abilities, according to RedSeer. 
  • In our previous note, we looked at the company’s past performance. In this note, we talk about RHP updates, undertake a peer comparison and provide our thoughts on valuation.

Relx Plc: Diving Deep into Their Growth Strategies! – Key Drivers

By Baptista Research

  • Relx had a decent financial performance in the recent quarter and is being driven by a continued shift in the business mix toward higher-growth analytics and decision tools that provide increased value to their clients across market categories.
  • The underlying adjusted operating profit increased by 16%.
  • All four business segments expanded well, with underlying adjusted operating profit growth matching or exceeding underlying sales growth.

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Daily Brief Health Care: Eoflow , Dexcom Inc, Hygeia Healthcare Group and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Insulet Accuses EOFlow Of Stealing Trade Secrets
  • Summary of the Situation Regarding Insulet’s Lawsuit in the US Against Eoflow
  • Insulet’s Lawsuit Against Eoflow, Medtronic’s Tender Offer, and Eoflow’s “Special Sauce”
  • DexCom Inc.: New Innovations Driving The Way Forward! – Key Drivers
  • Hygeia Healthcare Group (6078.HK) – The Crack in the Egg


Insulet Accuses EOFlow Of Stealing Trade Secrets

By David Blennerhassett

  • From the outset, EOFlow (294090 KS) has traded wide (~7% of average) to Medtronic Plc (MDT US)‘s Offer. An apparent delay in filing with Korean regulators formed one argument. 
  • Now there’s a compelling reason. Key insulin pump competitor Insulet  (PODD US) has filed a lawsuit accusing EOFlow of the misappropriation of trade secrets, patent infringement, and trademark dilution.
  • Singapore-Based Flex (FLEX US) and three ex-employees of Insulet are also defendants. This does not bode well for the transaction. 

Summary of the Situation Regarding Insulet’s Lawsuit in the US Against Eoflow

By Sanghyun Park

  • This signifies the official commencement of a lawsuit against Eoflow in the United States, which has been considered one of the most significant risks for Eoflow.
  • Eoflow is externally saying that the aspect of patents claimed by Insulet is actually based on previously expired patents. Hence, Eoflow believes they can win this patent lawsuit.
  • This lawsuit emerged before the acquisition decision by Medtronic suggesting a need to consider trading the current spread based on the inference that the tender offer is still valid.

Insulet’s Lawsuit Against Eoflow, Medtronic’s Tender Offer, and Eoflow’s “Special Sauce”

By Douglas Kim

  • Insulet Corp (PODD US)’s lawsuit against Eoflow (294090 KS) caused a sharp decline in Eoflow’s share price today (down 10.7% to 24,950 won).
  • Insulet is accusing Eoflow of hiring several senior personnel that have helped Eoflow to develop a product that could take away market share from Insulet. 
  • The most important factor may be Eoflow’s “special sauce” which is some kind of technology/mechanism that allows this 17% greater efficiency/convenience for the wearable EOPatch insulin device.

DexCom Inc.: New Innovations Driving The Way Forward! – Key Drivers

By Baptista Research

  • DexCom delivered an all-around beat in the previous quarter.
  • The company generated another fantastic quarter, with organic revenue growing by 26% in the second quarter compared to the second quarter of 2022.
  • As the availability of their products expands more quickly than at any other point in the company’s history, demand for DexCom CGM keeps rising.

Hygeia Healthcare Group (6078.HK) – The Crack in the Egg

By Xinyao (Criss) Wang

  • Based on endogenous development and external M&A, the outlook of Hygeia is full of imagination. Hygeia also start to expand business in northwest region of China by acquiring Chang’an Hospital.
  • If public hospitals have a role in “guiding patients” to Hygeia, anti-corruption campaign would affect Hygeia’s future performance, which is a significant uncertainty that could also shake its investment logic.
  • There may be short-term chaos. It remains to be seen whether performance can sustain growth of around 30%. The 23H2 revenue growth would be an important guidance for Hygeia’s outlook.

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Daily Brief Energy/Materials: Inpex Corp, Australis Oil & Gas, Eni SpA, Independence Contract Drilling and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • Inpex (1605 JP) – Earnings, Forecasts and a BIGLY Buyback (Aug 2023 Version)
  • Australis Oil & Gas Limited – Maintaining the Strategic Position in the TMS
  • Eni S.p.A.: Acquisition of Neptune Energy Group & Other Developments
  • Independence Contract Drilling, Inc. – Premium Rig Fleet Supports Deleveraging Goal


Inpex (1605 JP) – Earnings, Forecasts and a BIGLY Buyback (Aug 2023 Version)

By Travis Lundy

  • A year ago I wrote that same headline as Inpex Corp (1605 JP) reported H1 results, a change in forecasts, and a bigly buyback.
  • Yesterday, Inpex reported FY2023 H1 results, a change in forecasts, and a bigly buyback. 
  • The mechanics are the same. The impact is a bit different, but it is worth looking at. Then there is the event on 28 February 2024.

Australis Oil & Gas Limited – Maintaining the Strategic Position in the TMS

By Research as a Service (RaaS)

  • Australis Oil & Gas (ASX:ATS) is an oil and gas producer/developer, with a strategic and controlling position in the emerging Tuscaloosa Marine Shale (TMS) oil play, onshore US.
  • The TMS is an Eagle Ford-equivalent but early-stage oil play with recoverable oil potential of around 7bn barrels – this is the next big thing.
  • Australis represents a highly leveraged and attractive exposure to the transformational potential of the TMS oil play. 

Eni S.p.A.: Acquisition of Neptune Energy Group & Other Developments

By Baptista Research

  • delivered mixed results in the past quarter, with revenues falling short of analysts’ expectations but above-par earnings.
  • In 2023, the company surpassed expectations in terms of the underlying operating profitability.
  • With increases in Mozambique, Mexico and production recovery in Kazakhstan, upstream production averaged 1.61 million barrels per day in the quarter, up 2% yearly and exceeding the company’s target of 1.6 million barrels per day.

Independence Contract Drilling, Inc. – Premium Rig Fleet Supports Deleveraging Goal

By Water Tower Research

  • Despite turbulence affecting the 2Q23 and 3Q23 oilfield services markets, demand for ICD’s fleet of pad-optimal super- spec drilling rigs supports management’s ultimate goal of deleveraging the balance sheet and shifting value to equity owners.

  • ICD generated $18.7 million of adjusted EBITDA in 2Q23 from 15.0 average rigs earning revenue.

  • Margin per day averaged $15,462, landing in the high end of management’s $15,000-15,500 guidance range.


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