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Smartkarma Daily Briefs

Jan 07
0

Daily Brief ESG: Investors Do Not Want to See A “P/B Improvement Plan” That Follows a Template and more

By | Daily Briefs, ESG

In today’s briefing:

  • Investors Do Not Want to See A “P/B Improvement Plan” That Follows a Template

Investors Do Not Want to See A “P/B Improvement Plan” That Follows a Template

By Aki Matsumoto

  • TSE’s request to raise P/B was issued March end, and the number of companies that have disclosed their improvement measures is still low, at only about 30% of all companies.
  • Companies are likely to use good examples, but because the factors that increase share price vary from company to company, companies must offer their own solutions to their own situations.
  • Investors don’t want to see “P/B improvement plan” that follows the template, but want to see compelling measures that demonstrate cash flow growth, which is based on share price appreciation.

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Jan 07
0

Daily Brief Thematic (Sector/Industry): Japan Weekly | A Happy New Year and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • Japan Weekly | A Happy New Year
  • Boeing 737 MAX 9 and MAX-8200 Grounded: Implications And Opportunities

Japan Weekly | A Happy New Year

By Mark Chadwick

  • TOPIX rose by 1.15% over the past 5 trading days, which is an impressive performance given the negative news flow
  • Securities companies such as SBI (+7.7%), Daiwa (+7.1%) and Nomura (+6.3%) performed well on expectations that they would do well from the change in NISA regulations.
  • We highlight again the outperformance of value versus growth again over the past 5 days.

Boeing 737 MAX 9 and MAX-8200 Grounded: Implications And Opportunities

By Mohshin Aziz

  • Alaska Air Flight 1282 had an in-flight blowout of its mid-aft door and interior sidewall; the aircraft returned and landed safely, and there were no injuries or fatalities  
  • The U.S. Federal Aviation Administration (FAA) has ordered a temporary grounding of the affected aircraft model, and we think other countries will follow suit soon   
  • These stocks will likely be under shorts attack on Monday: Boeing (BA US), Alaska Air (ALK US), Ryanair (RYA ID) and United Airlines (UAL US)

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Jan 07
0

Daily Brief United States: Ethereum, Dell Technologies and more

By | Daily Briefs, United States

In today’s briefing:

  • A Comprehensive Analysis of Zetachain (Executive Summary)
  • Year Ahead for DeFi 2024 (Executive Summary)
  • ‘Clippy’ Having the Last Laugh? Microsoft’s Design Change to Drive AI PC Adoption; Dell Trade Update

A Comprehensive Analysis of Zetachain (Executive Summary)

By Gerryl Pay

  • Zetachain is building a bridge into a  smart contract platform in a bid to create a platform for omnichain smart contracts.
  • Omnichain smart contracts enable applications to live on multiple chains but still be connected and share liquidity.
  • There is opportunity for Zetachain to seize across DeFi, NFTs, and Ordinals. Whether this will happen comes down to strategy execution and ecosystem building.

Year Ahead for DeFi 2024 (Executive Summary)

By Gerryl Pay

  • EigenLayer emerges as a protocol reshaping the staking paradigm. Going beyond Ethereum’s security, EigenLayer greatly extends the utility of staked ETH.
  • UniswapX and other intent based apps will break DEXs out of their growth plateau. 
  • Scalability advancements through rollapps and UX improvements from next-gen wallets will make DeFi more viable for end users. 

‘Clippy’ Having the Last Laugh? Microsoft’s Design Change to Drive AI PC Adoption; Dell Trade Update

By Vincent Fernando, CFA

  • On January 4th, Microsoft announced a design change for PCs whereby a new physical key will be added to PC keyboards; the Microsoft Copilot key.
  • Microsoft Copilot will become a must-have for companies in our view. Initial Copilot capabilities can dramatically improve worker productivity and this should help drive AI PC upgrades for the industry.
  • CES 2024 Jan 9th – 12th will showcase AI PC models sporting Intel’s Core Ultra processors and Microsoft’s new Copilot key. We also update our Dell vs. Taiwan PCs trade.

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Jan 07
0

Daily Brief India: Shriram Finance and more

By | Daily Briefs, India

In today’s briefing:

  • Index Rebalance & ETF Flow Recap: HSCEI, HSCI, KRX New Deal, NIFTY50, NEXT50, CNXBANK

Index Rebalance & ETF Flow Recap: HSCEI, HSCI, KRX New Deal, NIFTY50, NEXT50, CNXBANK

By Brian Freitas

  • Posco DX (022100 KS) continues to drop following its section transfer from the KOSDAQ market to the KOSPI market. Short interest in the stock nearly halved in December.
  • There were big net inflows to China ETFs with creations in CSI 300 Index ETFs and redemptions in ETFs tracking the CSI 500 Index and CSI 1000 Index.
  • Creations continued in the iShares Emerging Markets ex China (EMXC US) ETF with units outstanding reaching a new high.

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Jan 07
0

Daily Brief ECM: MIXUE Group IPO: The Investment Case and more

By | Daily Briefs, ECM

In today’s briefing:

  • MIXUE Group IPO: The Investment Case

MIXUE Group IPO: The Investment Case

By Arun George

  • Mixue Group (MIX HK), a world-leading freshly made drinks company, filed for an HKEx IPO to raise US$0.5-1.0 billion. 
  • Mixue is China’s largest and the world’s second-largest freshly made drinks company, in terms of both the number of stores and cups sold in 9M23, according to CIC.
  • The investment case rests on a strong brand, leading market share, high revenue growth, robust cost control, stable profitability and cash generation. 

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Jan 07
0

Daily Brief Event-Driven: (Mostly) Asia-Pac Weekly Risk Arb Wrap: Aoki and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • (Mostly) Asia-Pac Weekly Risk Arb Wrap: Aoki, Kerry Express Thailand, JOYY, Tietto Mins, Pact Group
  • Index Rebalance & ETF Flow Recap: HSCEI, HSCI, KRX New Deal, NIFTY50, NEXT50, CNXBANK
  • Last Week in Event SPACE: HS Holdings, Celltrion Pharm, NISA, PICC/PICC P&C

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Aoki, Kerry Express Thailand, JOYY, Tietto Mins, Pact Group

By David Blennerhassett

Index Rebalance & ETF Flow Recap: HSCEI, HSCI, KRX New Deal, NIFTY50, NEXT50, CNXBANK

By Brian Freitas

  • Posco DX (022100 KS) continues to drop following its section transfer from the KOSDAQ market to the KOSPI market. Short interest in the stock nearly halved in December.
  • There were big net inflows to China ETFs with creations in CSI 300 Index ETFs and redemptions in ETFs tracking the CSI 500 Index and CSI 1000 Index.
  • Creations continued in the iShares Emerging Markets ex China (EMXC US) ETF with units outstanding reaching a new high.

Last Week in Event SPACE: HS Holdings, Celltrion Pharm, NISA, PICC/PICC P&C

By David Blennerhassett

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Jan 07
0

Daily Brief Japan: Aoki Super, TSE Tokyo Price Index TOPIX and more

By | Daily Briefs, Japan

In today’s briefing:

  • (Mostly) Asia-Pac Weekly Risk Arb Wrap: Aoki, Kerry Express Thailand, JOYY, Tietto Mins, Pact Group
  • Investors Do Not Want to See A “P/B Improvement Plan” That Follows a Template

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Aoki, Kerry Express Thailand, JOYY, Tietto Mins, Pact Group

By David Blennerhassett

Investors Do Not Want to See A “P/B Improvement Plan” That Follows a Template

By Aki Matsumoto

  • TSE’s request to raise P/B was issued March end, and the number of companies that have disclosed their improvement measures is still low, at only about 30% of all companies.
  • Companies are likely to use good examples, but because the factors that increase share price vary from company to company, companies must offer their own solutions to their own situations.
  • Investors don’t want to see “P/B improvement plan” that follows the template, but want to see compelling measures that demonstrate cash flow growth, which is based on share price appreciation.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Jan 07
0

Daily Brief China: Mixue Group, CanSino Biologics and more

By | China, Daily Briefs

In today’s briefing:

  • MIXUE Group IPO: The Investment Case
  • China Healthcare Weekly (Jan.5) – WuXi XDC, GLP-1s New Game Rule, Innovent, Cansino, A-Share Outlook

MIXUE Group IPO: The Investment Case

By Arun George

  • Mixue Group (MIX HK), a world-leading freshly made drinks company, filed for an HKEx IPO to raise US$0.5-1.0 billion. 
  • Mixue is China’s largest and the world’s second-largest freshly made drinks company, in terms of both the number of stores and cups sold in 9M23, according to CIC.
  • The investment case rests on a strong brand, leading market share, high revenue growth, robust cost control, stable profitability and cash generation. 

China Healthcare Weekly (Jan.5) – WuXi XDC, GLP-1s New Game Rule, Innovent, Cansino, A-Share Outlook

By Xinyao (Criss) Wang

  • WuXi XDC remains our top pick in China healthcare. We’re optimistic about its share price performance. Cansino is stronger than imagined, and we recommend investors to be patient with it.
  • The future competitive landscape of GLP-1s would present very different situation from traditional drugs. Innovent’s Mazdutide could be a “dark horse” if the head-to-head trial against Semaglutide is successful.
  • For GLP-1s, it will be difficult to shake the first-mover position of the first two giants (Semaglutide and Tirzepatide) unless latecomers are able to show higher marginal benefits.

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Jan 07
0

Daily Brief Equity Bottom-Up: Mobileye Profit Warning Is A Harbinger Of Gloom As Q423 Earnings Loom and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Mobileye Profit Warning Is A Harbinger Of Gloom As Q423 Earnings Loom
  • China Healthcare Weekly (Jan.5) – WuXi XDC, GLP-1s New Game Rule, Innovent, Cansino, A-Share Outlook
  • Vanguard (5347.TT): 1Q24F Revenue Might Decline ~10% QoQ.
  • ‘Clippy’ Having the Last Laugh? Microsoft’s Design Change to Drive AI PC Adoption; Dell Trade Update

Mobileye Profit Warning Is A Harbinger Of Gloom As Q423 Earnings Loom

By William Keating

  • From a growth forecast of >20% YoY just two months ago, 2024 is now pegged as a low-to-no growth year
  • This will be a big negative for the likes of Infineon, ST Microelectronics, NXP, Globalfoundries and HH Grace, among others. 
  • Our anticipated gloomy Q423 earnings season just got a whole lot gloomier

China Healthcare Weekly (Jan.5) – WuXi XDC, GLP-1s New Game Rule, Innovent, Cansino, A-Share Outlook

By Xinyao (Criss) Wang

  • WuXi XDC remains our top pick in China healthcare. We’re optimistic about its share price performance. Cansino is stronger than imagined, and we recommend investors to be patient with it.
  • The future competitive landscape of GLP-1s would present very different situation from traditional drugs. Innovent’s Mazdutide could be a “dark horse” if the head-to-head trial against Semaglutide is successful.
  • For GLP-1s, it will be difficult to shake the first-mover position of the first two giants (Semaglutide and Tirzepatide) unless latecomers are able to show higher marginal benefits.

Vanguard (5347.TT): 1Q24F Revenue Might Decline ~10% QoQ.

By Patrick Liao

  • Vanguard Intl Semiconductor (5347 TT) is likely to see that there could be a decline of around 10% QoQ in 1Q24F.
  • In terms of revenue contribution, Taiwan, US, China, Europe, and Japan account for approximately 40%, 20%, 15%, 15%, and 10% respectively.
  • Taiwan Semiconductor (TSMC) (2330 TT) may give up technology development at 40nm and above and transfer them to Vanguard.

‘Clippy’ Having the Last Laugh? Microsoft’s Design Change to Drive AI PC Adoption; Dell Trade Update

By Vincent Fernando, CFA

  • On January 4th, Microsoft announced a design change for PCs whereby a new physical key will be added to PC keyboards; the Microsoft Copilot key.
  • Microsoft Copilot will become a must-have for companies in our view. Initial Copilot capabilities can dramatically improve worker productivity and this should help drive AI PC upgrades for the industry.
  • CES 2024 Jan 9th – 12th will showcase AI PC models sporting Intel’s Core Ultra processors and Microsoft’s new Copilot key. We also update our Dell vs. Taiwan PCs trade.

💡 Before it’s here, it’s on Smartkarma

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The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
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Jan 07
0

Daily Brief Crypto: A Comprehensive Analysis of Zetachain (Executive Summary) and more

By | Crypto, Daily Briefs

In today’s briefing:

  • A Comprehensive Analysis of Zetachain (Executive Summary)
  • Year Ahead for DeFi 2024 (Executive Summary)

A Comprehensive Analysis of Zetachain (Executive Summary)

By Gerryl Pay

  • Zetachain is building a bridge into a  smart contract platform in a bid to create a platform for omnichain smart contracts.
  • Omnichain smart contracts enable applications to live on multiple chains but still be connected and share liquidity.
  • There is opportunity for Zetachain to seize across DeFi, NFTs, and Ordinals. Whether this will happen comes down to strategy execution and ecosystem building.

Year Ahead for DeFi 2024 (Executive Summary)

By Gerryl Pay

  • EigenLayer emerges as a protocol reshaping the staking paradigm. Going beyond Ethereum’s security, EigenLayer greatly extends the utility of staked ETH.
  • UniswapX and other intent based apps will break DEXs out of their growth plateau. 
  • Scalability advancements through rollapps and UX improvements from next-gen wallets will make DeFi more viable for end users. 

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
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