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Smartkarma Daily Briefs

Jun 27
0

Daily Brief Equity Bottom-Up: Medley (4480 JP): 2023 Started on Strong Note; Full-Year Guidance Reaffirmed; Mid-Term Plan Revised and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Medley (4480 JP): 2023 Started on Strong Note; Full-Year Guidance Reaffirmed; Mid-Term Plan Revised
  • Meilan Airport (357 HK): Positive on The Only China Airport Trading Below Book Value
  • Taiwan Tech Weekly: Micron Results Key for Nanya; Hon Hai New 52-Week High; AI Leaders Basket
  • Alphamab Co Ltd (9966.HK) – Valuation Is Already Low, but Many Issues Hinder the Bullish View
  • Yamaha Motors (7272) | Choppy Waters Ahead
  • EDG: First Batch of Drill Results Don’t Disappoint
  • Takamiya Co., Ltd (2445 JP) – 23/3 Full Year Follow-Up
  • Monster Beverage Corporation: Still A GARP Opportunity
  • PI: Red Tagged, Initiating with Sell
  • Update Note – Steelcase, Inc. (SCS)

Medley (4480 JP): 2023 Started on Strong Note; Full-Year Guidance Reaffirmed; Mid-Term Plan Revised

By Tina Banerjee

  • Medley (4480 JP) started 2023 on a strong note, with 1Q23 revenue increasing 56% YoY to ¥4.4B, mainly driven by 83% YoY revenue growth in medical platform business.
  • Despite better-than-usual progress in Q1 result, Medley did not change 2023 guidance. However, the company sees a strong possibility of surpassing 2023 profit targets at the EBITDA level and below.
  • Medley has revised its mid-term target and brough forward the timeline for achievement of the goals by one year. The company now aims to achieve revenue of ¥23B in 2024.

Meilan Airport (357 HK): Positive on The Only China Airport Trading Below Book Value

By Eric Chen

  • A slew of bad news from weak China consumption, depreciating RMB to negative progress in an arbitration sent Meilan Airport stock down to below book value.
  • Yet when it comes to the fundamental of the company itself, we believe concerns are over-blown and very much priced in.
  • Meilan Airport is the most under-valued major airport in China airport space in our view. Patience will pay off.

Taiwan Tech Weekly: Micron Results Key for Nanya; Hon Hai New 52-Week High; AI Leaders Basket

By Vincent Fernando, CFA

  • Micron results this week; will give a key readthrough for Nanya Tech. The latest memory chip pricing data implies it was another tough quarter.
  • Hon Hai’s break out continues, with the shares achieving a new 52-week high. The company’s new JV with automaker Stellantis may finally be winning over naysayers.
  • AI Leaders Basket: TSMC and ASML have substantially lagged Nvidia and could serve as AI-exposure alternatives to chasing Nvidia’s rally.

Alphamab Co Ltd (9966.HK) – Valuation Is Already Low, but Many Issues Hinder the Bullish View

By Xinyao (Criss) Wang

  • KN046’s commercialization prospects is limited if it doesn’t demonstrate better results than PD-1 in head-to-head trial. The value of KN046 still lies in its potential to treat PDAC not sqNSCLC.
  • KN026 is difficult to become a blockbuster variety. JSKN003 may not have good opportunity in front of DS-8201. Many investors are unhappy with Alphamab’s credibility and information disclosure quality.
  • Alphamab’s valuation is already at low level. However, considering the current pessimistic sentiment towards biotech in HKEX, investors are advised to remain cautious, and just short-term trade is recommended.

Yamaha Motors (7272) | Choppy Waters Ahead

By Mark Chadwick

  • Yamaha Motors had blow-out 1Q results. The 20% share price rally since then suggests much of the good news is in the price
  • We are concerned that deteriorating macro-economic conditions in the US due to higher interest rates could derail demand for marine engines and boats
  • The stock price of US peer, Brunswick has already started to correct. Yamaha now trades at a premium valuation

EDG: First Batch of Drill Results Don’t Disappoint

By Atrium Research

  • 2,100m of the 15,000m 2023 program have been completed to-date.
  • This morning, Endurance Gold Corporation (EDG:TSXV) provided an update on the ongoing exploration program at its Reliance Gold Project and assay results for three drill holes completed at the Imperial and Diplomat target areas.
  • Eight holes have been completed over 2,100m of the ongoing 15,000m program which commenced in May.

Takamiya Co., Ltd (2445 JP) – 23/3 Full Year Follow-Up

By Sessa Investment Research

  • FY23/3 full-year results were announced in the last month.
  • In its consolidated earnings, Operating profit rose 33.9%, ¥2,253 mn, on a 5.3% rise in sales, to ¥41,894 mn. Ordinary profit was up 22.9%, to ¥2,400 mn, and net profit rose 51.3%, to ¥1,460mn.
  • Compared to the company’s forecast at the time of the 3Q results announcement, net sales fell short by about 7%, but operating profit and net profit were in line. 

Monster Beverage Corporation: Still A GARP Opportunity

By Pearl Gray Equity and Research

  • Qualitative factors and key metrics suggest that Monster Beverage Corporation presents a GARP opportunity.
  • The company is growing at scale and holds down a significant part of the energy drinks market.
  • The generational consumer shift into stimulated drinks lends researchers much scope to delve into the prospects of Monster Beverage Corporation (NASDAQ:MNST).

PI: Red Tagged, Initiating with Sell

By Hamed Khorsand

  • Impinj was a late beneficiary to the COVID-19 pandemic and could now be on the cusp of a correction in its revenue growth trajectory
  • The developer of radio frequency identification (“RFID”) chips used in RFID tags benefited when companies were facing supply chain issues resulting in ordering much more inventory than necessary
  • Consensus estimates are for another 36 percent increase in revenue in 2023 even though Impinj is heavily dependent on retail apparel

Update Note – Steelcase, Inc. (SCS)

By Water Tower Research

  • This note follows up on the Steelcase 1QFY24 earnings release, management’s earnings conference call, and our earnings analysis note from June 22.
  • Herein, we refresh our estimates for Steelcase.
  • Steelcase has been tied to the fortunes of commercial/contract furniture, where the company is a global leader. 

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Jun 27
0

Daily Brief Macro: Everybody Wants Bitcoin! and more

By | Daily Briefs, Macro

In today’s briefing:

  • Everybody Wants Bitcoin!
  • The Week That Was in ASEAN@Smartkarma – Rationalizing Grab, Bank Rakyat Rising, and Big C Retail IPO
  • EM BY EM #10 2021 in Reverse: Will EM Central Banks Outsmart DM’s Once Again?
  • Soybeans Spike Due to Weather Worries – The Credit Crunch Isn’t over Yet

Everybody Wants Bitcoin!

By Jeroen Blokland

  • BlackRock is feeding Bitcoin animal spirits. The last time the SEC rejected a product offering from the ‘inventor’ of iShares was in 2014. BlackRock has a success ratio of 99.8%.
  • The SEC’s main objection to approving a physical Bitcoin ETF has always been ‘price manipulation.’ Hence, BlackRock has entered a ‘surveillance-sharing’ agreement with Nasdaq
  • We updated our Bitcoin as a gold-like insurance premium scenario analysis to provide estimates about Bitcoin’s future price.

The Week That Was in ASEAN@Smartkarma – Rationalizing Grab, Bank Rakyat Rising, and Big C Retail IPO

By Angus Mackintosh

EM BY EM #10 2021 in Reverse: Will EM Central Banks Outsmart DM’s Once Again?

By Emil Moller

  • EM’s were the first movers in this hiking cycle that is coming to an end
  • We think there is a decent chance they will be ahead of the curve once again
  • But this time around it will probably be the commodity exporters who cut rates first

Soybeans Spike Due to Weather Worries – The Credit Crunch Isn’t over Yet

By The Commodity Report

  • Soybeans spike due to weather worries The worst U.S. Midwest drought since 2012 expanded over the past week despite mild temperatures as a lack of rain across the heart of the American farm belt threatened newly seeded crops.
  • Below-average rainfall and high winds also exacerbated drought conditions in many regions.
  • In the early growing stage of the crops, drought can be compensated by more rain in the later stages.

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Jun 27
0

Daily Brief Industrials: IdeaForge Technology Limited, Tryt Inc, Nws Holdings, Hainan Meilan International Airport, J&T Express , Srg Takamiya, Steelcase Inc Cl A and more

By | Daily Briefs, Industrials

In today’s briefing:

  • IdeaForge Technologies IPO- Forensic Analysis
  • Tryt IPO – The Positives – Supportive Macro Backdrop and Has Weathered the Pandemic Well
  • Chow Tai Fooks’ Offer For NWS (659 HK). Buy NWD (17 HK)
  • Meilan Airport (357 HK): Positive on The Only China Airport Trading Below Book Value
  • J&T Global Express IPO: SEA Margins Declining and Other Businesses Far from Profitability
  • Takamiya Co., Ltd (2445 JP) – 23/3 Full Year Follow-Up
  • Update Note – Steelcase, Inc. (SCS)

IdeaForge Technologies IPO- Forensic Analysis

By Nitin Mangal

  • IdeaForge Technology Limited (1475641D IN)‘s IPO opens for subscription this week. 
  • The company is said to be the market leader in manufacturing of drones, an industry that is expected to grow rapidly in the next five years.
  • However, there are several forensic takeaways that include disclosure errs relating to litigations, treatment of R&D, cash generation, etc.

Tryt IPO – The Positives – Supportive Macro Backdrop and Has Weathered the Pandemic Well

By Clarence Chu

  • Tryt Inc (9164 JP) is looking to raise about US$460m in its Japan IPO.
  • Tryt Inc (Tryt) offers employee placement services and temporary staffing services for the elderly care, nursing care and childcare workers segments.
  • In this note, we will talk about the positive aspects of the deal.

Chow Tai Fooks’ Offer For NWS (659 HK). Buy NWD (17 HK)

By David Blennerhassett

  • Chow Tai Fook (CTFE) has made a voluntary cash Offer for New World Development (17 HK)‘s (NWD) 60.88%-held NWS Holdings (659 HK) at HK$9.15/share, a 22.2% premium to undisturbed. 
  • CTFE and connected parties hold 45.24% of NWD, therefore the parent is effectively injecting ~US$2.75bn of cash into NWD for its NWS stake.
  • The Offer is subject to regulatory approvals in Hong Kong and Bermuda. These will not be an issue given CTFE is NWD’s ultimate shareholder. 

Meilan Airport (357 HK): Positive on The Only China Airport Trading Below Book Value

By Eric Chen

  • A slew of bad news from weak China consumption, depreciating RMB to negative progress in an arbitration sent Meilan Airport stock down to below book value.
  • Yet when it comes to the fundamental of the company itself, we believe concerns are over-blown and very much priced in.
  • Meilan Airport is the most under-valued major airport in China airport space in our view. Patience will pay off.

J&T Global Express IPO: SEA Margins Declining and Other Businesses Far from Profitability

By Shifara Samsudeen, ACMA, CGMA

  • Global logistics and express delivery service provider J&T Express (1936374D CH) has filed for an IPO on the HKEx to raise about US$500m-1bn.
  • J&T’s SEA operation is the only gross margin making business, however, the segment’s gross margin has been on a declining trend.
  • Though the gross losses of China biz has reduced during 2020-2022, J&T continues to invest in China to capture market share which we think would delay profits.

Takamiya Co., Ltd (2445 JP) – 23/3 Full Year Follow-Up

By Sessa Investment Research

  • FY23/3 full-year results were announced in the last month.
  • In its consolidated earnings, Operating profit rose 33.9%, ¥2,253 mn, on a 5.3% rise in sales, to ¥41,894 mn. Ordinary profit was up 22.9%, to ¥2,400 mn, and net profit rose 51.3%, to ¥1,460mn.
  • Compared to the company’s forecast at the time of the 3Q results announcement, net sales fell short by about 7%, but operating profit and net profit were in line. 

Update Note – Steelcase, Inc. (SCS)

By Water Tower Research

  • This note follows up on the Steelcase 1QFY24 earnings release, management’s earnings conference call, and our earnings analysis note from June 22.
  • Herein, we refresh our estimates for Steelcase.
  • Steelcase has been tied to the fortunes of commercial/contract furniture, where the company is a global leader. 

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Jun 27
0

Daily Brief TMT/Internet: Softbank Group, 4Paradigm, Taiwan Semiconductor (TSMC) – ADR, JST Group, Earable, Japan System Techniques Co, PolicyStreet, Impinj Inc and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • The IPO Shot in the Arm for Softbank (9984 JP), but Is It Enough?
  • 4Paradigm Pre-IPO – Refiling Updates – Has Been Paring Down Losses but Cash Runway Seems Short
  • Taiwan Tech Weekly: Micron Results Key for Nanya; Hon Hai New 52-Week High; AI Leaders Basket
  • JST Group Pre-IPO Tearsheet
  • Samsung Ventures Invests in Sleeptech Firm Earable Neuroscience
  • Japan System Techniques (4323 JP) – FY23/3 Full Year Follow-Up
  • PolicyStreet Bags $15.3m from Malaysian Gov’t to Bolster Insurance Products
  • PI: Red Tagged, Initiating with Sell

The IPO Shot in the Arm for Softbank (9984 JP), but Is It Enough?

By Victor Galliano

  • We believe that Masa’s AI predictions and ambitions in the AGM presentation may well need a reality check; nonetheless, Softbank subsidiary Arm is a beneficiary of increasing AI applications
  • The prospective Arm IPO is a key driver in the recent Softbank group share price rally; we look at AMD’s acquisition of Xilinx for an indication of Arm’s potential valuation
  • Softbank group’s stated NAV discount narrowed by 19 pp to 31%; we explore Arm IPO valuation scenarios for NAV upside but we only see Softbank upside in a super-premium valuation

4Paradigm Pre-IPO – Refiling Updates – Has Been Paring Down Losses but Cash Runway Seems Short

By Ethan Aw

  • 4Paradigm (1764934D HK) is looking to raise about US$600m in its upcoming IPO in Hong Kong. 
  • 4P is a platform-centric AI enterprise solutions provider. It was the largest player by revenue in the platform-centric decision-making AI market in China in 2022, as per CIC. 
  • In our previous note, we took a look at the company’s background and financial performance. In this note, we will cover the firm’s refiling updates.

Taiwan Tech Weekly: Micron Results Key for Nanya; Hon Hai New 52-Week High; AI Leaders Basket

By Vincent Fernando, CFA

  • Micron results this week; will give a key readthrough for Nanya Tech. The latest memory chip pricing data implies it was another tough quarter.
  • Hon Hai’s break out continues, with the shares achieving a new 52-week high. The company’s new JV with automaker Stellantis may finally be winning over naysayers.
  • AI Leaders Basket: TSMC and ASML have substantially lagged Nvidia and could serve as AI-exposure alternatives to chasing Nvidia’s rally.

JST Group Pre-IPO Tearsheet

By Ethan Aw

  • JST Group (1703609D CH) is looking to raise at least US$100m in its upcoming HK IPO. The deal will be run by CICC and JP Morgan.
  • Jushuitan (JST) is China’s largest e-commerce SaaS ERP provider in terms of revenue in 2022, with a market share of 20.7%, according to CIC. 
  • The firm offers a suite of cloud-based e-commerce SaaS products, and is able to connect merchants with over 350 e-commerce platforms in China and across the world.

Samsung Ventures Invests in Sleeptech Firm Earable Neuroscience

By e27

  • Earable Neuroscience, a US-headquartered deep-tech company that has developed a sleep tech wearable device, has secured undisclosed bridge funding from Samsung Ventures.
  • Through this investment, Samsung Ventures plans to forge alliances within its local and global network to support Earable Neuroscience’s global expansion, including the Korean market.
  • Established in 2018 by Vietnamese founder Tam Vu, the startup’s sleep tech wearable, FRENZ Brainband, incorporates cutting-edge neuroscience technology into a consumer wearable to enhance sleep quality, improve focus, and promote relaxation.

Japan System Techniques (4323 JP) – FY23/3 Full Year Follow-Up

By Sessa Investment Research

  • Japan System Techniques announced itsfull-year results for FY23/3 after the close of the market on Friday, May 12.
  • Operating profit rose 19.3%, to ¥2,385 mn, on a 9.9% rise in sales, to ¥23,519 mn.
  • Ordinary profit rose 19.4%, to ¥2,450 mn, and net profit rose 33.2%, to ¥1,772 mn. 

PolicyStreet Bags $15.3m from Malaysian Gov’t to Bolster Insurance Products

By Tech in Asia

  • Malaysian insurtech company PolicyStreet has raised US$15.3 million in its series B funding round led by local sovereign fund Khazanah Nasional Berhad.
  • This investment was made under the fund’s 6 billion ringgit (US$1.3 billion) Dana Impak mandate.
  • PolicyStreet offers digital insurance options to both consumers and businesses, aiming to make such products more accessible and affordable with the firm’s in-house underwriting capabilities.

PI: Red Tagged, Initiating with Sell

By Hamed Khorsand

  • Impinj was a late beneficiary to the COVID-19 pandemic and could now be on the cusp of a correction in its revenue growth trajectory
  • The developer of radio frequency identification (“RFID”) chips used in RFID tags benefited when companies were facing supply chain issues resulting in ordering much more inventory than necessary
  • Consensus estimates are for another 36 percent increase in revenue in 2023 even though Impinj is heavily dependent on retail apparel

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Jun 27
0

Daily Brief Utilities: Azure Power Global Ltd, Gold and more

By | Daily Briefs, Utilities Sector

In today’s briefing:

  • Morning Views Asia: Azure Power Global Ltd, Sino-Ocean Service
  • Soybeans Spike Due to Weather Worries – The Credit Crunch Isn’t over Yet

Morning Views Asia: Azure Power Global Ltd, Sino-Ocean Service

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.

Soybeans Spike Due to Weather Worries – The Credit Crunch Isn’t over Yet

By The Commodity Report

  • Soybeans spike due to weather worries The worst U.S. Midwest drought since 2012 expanded over the past week despite mild temperatures as a lack of rain across the heart of the American farm belt threatened newly seeded crops.
  • Below-average rainfall and high winds also exacerbated drought conditions in many regions.
  • In the early growing stage of the crops, drought can be compensated by more rain in the later stages.

💡 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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Jun 27
0

Daily Brief Industrials: IdeaForge Technology Limited, Tryt Inc, Nws Holdings, Hainan Meilan International Airport, J&T Express , Srg Takamiya, Steelcase Inc Cl A and more

By | Daily Briefs, Industrials

In today’s briefing:

  • IdeaForge Technologies IPO- Forensic Analysis
  • Tryt IPO – The Positives – Supportive Macro Backdrop and Has Weathered the Pandemic Well
  • Chow Tai Fooks’ Offer For NWS (659 HK). Buy NWD (17 HK)
  • Meilan Airport (357 HK): Positive on The Only China Airport Trading Below Book Value
  • J&T Global Express IPO: SEA Margins Declining and Other Businesses Far from Profitability
  • Takamiya Co., Ltd (2445 JP) – 23/3 Full Year Follow-Up
  • Update Note – Steelcase, Inc. (SCS)

IdeaForge Technologies IPO- Forensic Analysis

By Nitin Mangal

  • IdeaForge Technology Limited (1475641D IN)‘s IPO opens for subscription this week. 
  • The company is said to be the market leader in manufacturing of drones, an industry that is expected to grow rapidly in the next five years.
  • However, there are several forensic takeaways that include disclosure errs relating to litigations, treatment of R&D, cash generation, etc.

Tryt IPO – The Positives – Supportive Macro Backdrop and Has Weathered the Pandemic Well

By Clarence Chu

  • Tryt Inc (9164 JP) is looking to raise about US$460m in its Japan IPO.
  • Tryt Inc (Tryt) offers employee placement services and temporary staffing services for the elderly care, nursing care and childcare workers segments.
  • In this note, we will talk about the positive aspects of the deal.

Chow Tai Fooks’ Offer For NWS (659 HK). Buy NWD (17 HK)

By David Blennerhassett

  • Chow Tai Fook (CTFE) has made a voluntary cash Offer for New World Development (17 HK)‘s (NWD) 60.88%-held NWS Holdings (659 HK) at HK$9.15/share, a 22.2% premium to undisturbed. 
  • CTFE and connected parties hold 45.24% of NWD, therefore the parent is effectively injecting ~US$2.75bn of cash into NWD for its NWS stake.
  • The Offer is subject to regulatory approvals in Hong Kong and Bermuda. These will not be an issue given CTFE is NWD’s ultimate shareholder. 

Meilan Airport (357 HK): Positive on The Only China Airport Trading Below Book Value

By Eric Chen

  • A slew of bad news from weak China consumption, depreciating RMB to negative progress in an arbitration sent Meilan Airport stock down to below book value.
  • Yet when it comes to the fundamental of the company itself, we believe concerns are over-blown and very much priced in.
  • Meilan Airport is the most under-valued major airport in China airport space in our view. Patience will pay off.

J&T Global Express IPO: SEA Margins Declining and Other Businesses Far from Profitability

By Shifara Samsudeen, ACMA, CGMA

  • Global logistics and express delivery service provider J&T Express (1936374D CH) has filed for an IPO on the HKEx to raise about US$500m-1bn.
  • J&T’s SEA operation is the only gross margin making business, however, the segment’s gross margin has been on a declining trend.
  • Though the gross losses of China biz has reduced during 2020-2022, J&T continues to invest in China to capture market share which we think would delay profits.

Takamiya Co., Ltd (2445 JP) – 23/3 Full Year Follow-Up

By Sessa Investment Research

  • FY23/3 full-year results were announced in the last month.
  • In its consolidated earnings, Operating profit rose 33.9%, ¥2,253 mn, on a 5.3% rise in sales, to ¥41,894 mn. Ordinary profit was up 22.9%, to ¥2,400 mn, and net profit rose 51.3%, to ¥1,460mn.
  • Compared to the company’s forecast at the time of the 3Q results announcement, net sales fell short by about 7%, but operating profit and net profit were in line. 

Update Note – Steelcase, Inc. (SCS)

By Water Tower Research

  • This note follows up on the Steelcase 1QFY24 earnings release, management’s earnings conference call, and our earnings analysis note from June 22.
  • Herein, we refresh our estimates for Steelcase.
  • Steelcase has been tied to the fortunes of commercial/contract furniture, where the company is a global leader. 

💡 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

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  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
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  • ✓ Events & Webinars
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Jun 27
0

Daily Brief Energy/Materials: JSR Corp, BrainChip Holdings, DDH1, Endurance Gold and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • JIC Launches a NOT-¥1trln Tender Offer for JSR (4185). Welcome? Yes. Overwhelming? Meh.
  • [UPDATE] Tax-Loss Selling in Australia – Time To Unwind the Basket
  • JSR Corporation (4185 JP): JIC’s Pre-Conditional Tender Offer at JPY4,350
  • DDH1 To Merge With Perenti
  • DDH1 (DDH AU): Binding Offer from Perenti (PRN AU)
  • EDG: First Batch of Drill Results Don’t Disappoint

JIC Launches a NOT-¥1trln Tender Offer for JSR (4185). Welcome? Yes. Overwhelming? Meh.

By Travis Lundy

  • Japan Investment Corp (JIC) has launched a Tender Offer on top photoresist maker JSR Corp (4185 JP), at ¥4,350/share.  
  • That is a decent price, but it is not overwhelming. Furthermore, process for determining (and understanding) “fair” remains inadequate. 
  • Significant foreign ownership, a high price, Japanese equity excitement, etc, all make this a situation where we likely see a pop (the last bit), a fade, then a re-drift better.

[UPDATE] Tax-Loss Selling in Australia – Time To Unwind the Basket

By Travis Lundy

  • In Tax-Loss Selling in Australia – Brief Historical Analysis And A Trade Basket at the start of June I proposed a basket. 
  • We are getting to the end of June. Time to unwind that short basket. The named ticker was -26%. The 70-name basket underperformed ASX200 by 4.4%.
  • One can now go long the basket into end-June as historically it outperforms S&P-ASX200 over two months. If one did not short, one can still go long. Basket below.

JSR Corporation (4185 JP): JIC’s Pre-Conditional Tender Offer at JPY4,350

By Arun George

  • JSR Corp (4185 JP) has recommended JIC’s pre-conditional tender offer of JPY4,350 per share, a 34.5% and 10.6% premium to the undisturbed price and last close, respectively.
  • The pre-conditions relate to various country approvals. China’s approval should be challenging due to Japan’s recent curbs on Chinese exports of chipmaking equipment.
  • The offer is long-dated and opens in late December. The offer price is attractive compared to peer multiples and just a touch below the all-time share price high.

DDH1 To Merge With Perenti

By David Blennerhassett

  • Specialty mining driller DDH1 (DDH AU) has announced a merger, by way of a Scheme, with Perenti Global (PRN AU).
  • Under the proposed terms, DDH1 shareholders will receive for each DDH1 share held $0.1238 cash plus 0.7111 Perenti shares, for an implied value of A$1.01/share, or a 17.4% premium. 
  • Directors and shareholders with a combined 38% of DDH1 shares have indicated an intention to vote in favour of the transaction. Scheme implementation is expected in early October 2023.

DDH1 (DDH AU): Binding Offer from Perenti (PRN AU)

By Arun George

  • DDH1 (DDH AU) has entered a SID with Perenti Global (PRN AU) at A$0.1238 cash plus 0.7111 PRN shares for each DDH share, a 17.4% premium to DDH’s 5-day VWAP.
  • The key conditions are shareholder scheme approval and ACCC clearance. Shareholders representing 38.0% of outstanding shares will vote in favour of the scheme.
  • The offer is attractive compared to peer multiples, and the net exchange ratio is fair on a 1-year basis. A critical risk is volatility risk around PRN shares.  

EDG: First Batch of Drill Results Don’t Disappoint

By Atrium Research

  • 2,100m of the 15,000m 2023 program have been completed to-date.
  • This morning, Endurance Gold Corporation (EDG:TSXV) provided an update on the ongoing exploration program at its Reliance Gold Project and assay results for three drill holes completed at the Imperial and Diplomat target areas.
  • Eight holes have been completed over 2,100m of the ongoing 15,000m program which commenced in May.

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Jun 27
0

Daily Brief Health Care: Sartorius AG, Medley, Alphamab Co Ltd and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Quiddity Leaderboard-DAX Jun 23: A SHORT Sartorius LONG Merck Trade Might Be Interesting
  • Medley (4480 JP): 2023 Started on Strong Note; Full-Year Guidance Reaffirmed; Mid-Term Plan Revised
  • Alphamab Co Ltd (9966.HK) – Valuation Is Already Low, but Many Issues Hinder the Bullish View

Quiddity Leaderboard-DAX Jun 23: A SHORT Sartorius LONG Merck Trade Might Be Interesting

By Janaghan Jeyakumar, CFA

  • In this insight, we take a look at the names leading the race to become ADDs/DELs for the DAX, MDAX, and SDAX Indices in the September 2023 Rebalance.
  • Software AG (SOW GR)‘s takeover situation could result in intra-review index changes prior to the September 2023 rebalance. 
  • Fresenius Medical Care (FME GR) and Deutsche Lufthansa AG (LHA GR) are close to becoming DAX ADDs as they require very small price gains to trigger Fast Entry additions.

Medley (4480 JP): 2023 Started on Strong Note; Full-Year Guidance Reaffirmed; Mid-Term Plan Revised

By Tina Banerjee

  • Medley (4480 JP) started 2023 on a strong note, with 1Q23 revenue increasing 56% YoY to ¥4.4B, mainly driven by 83% YoY revenue growth in medical platform business.
  • Despite better-than-usual progress in Q1 result, Medley did not change 2023 guidance. However, the company sees a strong possibility of surpassing 2023 profit targets at the EBITDA level and below.
  • Medley has revised its mid-term target and brough forward the timeline for achievement of the goals by one year. The company now aims to achieve revenue of ¥23B in 2024.

Alphamab Co Ltd (9966.HK) – Valuation Is Already Low, but Many Issues Hinder the Bullish View

By Xinyao (Criss) Wang

  • KN046’s commercialization prospects is limited if it doesn’t demonstrate better results than PD-1 in head-to-head trial. The value of KN046 still lies in its potential to treat PDAC not sqNSCLC.
  • KN026 is difficult to become a blockbuster variety. JSKN003 may not have good opportunity in front of DS-8201. Many investors are unhappy with Alphamab’s credibility and information disclosure quality.
  • Alphamab’s valuation is already at low level. However, considering the current pessimistic sentiment towards biotech in HKEX, investors are advised to remain cautious, and just short-term trade is recommended.

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Jun 27
0

Daily Brief Financials: Mandala Multifinance, Bitcoin, Kilde Pte Ltd and more

By | Daily Briefs, Financials

In today’s briefing:

  • MUFG Seeks A Majority Stake In Mandala
  • What’s Driving Bitcoin’s Rally?
  • Kilde bags $1.1m to bankroll securities tokenization project

MUFG Seeks A Majority Stake In Mandala

By David Blennerhassett

  • Mitsubishi UFJ Financial (MUFG US) and 92.7%-held Adira Dinamika Multi Finance (ADMF IJ) have entered into SPAs with key shareholders to acquire an 80.6% stake in Mandala Multifinance (MFIN IJ).
  • MUFG and Adira appear to be paying IDR 3,297/share or IDR 7tn all-in. The SPAs are subject to regulatory approvals with completion expected in early 2024. 
  • Upon completion, MUFG will hold 70.6% in Mandala and Adira 10% in the Indo car/motorcycle loan lender. This will trigger a Mandatory Tender Offer for the remaining 19.4%.

What’s Driving Bitcoin’s Rally?

By Kaiko

  • Bitcoin briefly hit yearly highs over the weekend and is up 15% week-on-week.
  • What’s driving this rapid surge in prices?
  • While news of a Blackrock ETF filing is certainly a bullish catalyst, let’s see what the data says. 

Kilde bags $1.1m to bankroll securities tokenization project

By Tech in Asia

  • Private debt platform Kilde has raised US$1.1 million in seed funding from investors including Big Sky Capital, Borderless Capital, AXL Ventures, and Algorand Foundation.
  • The fresh funds will help the Singapore-based firm expand its private credit offerings and develop SafeBay, its securities tokenization project.
  • Founded in 2019, Kilde caters to accredited and institutional investors by giving them access to private credit deals, which can yield annual returns of up to 13.5%. The company said that its investors have seen annual returns of 11.9%.

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Jun 27
0

Daily Brief Consumer: Mitra Adiperkasa, Silk Laser Australia, Yamaha Motor, Luyuan Group, Shoppable Business, Monster Beverage and more

By | Consumer, Daily Briefs

In today’s briefing:

  • LQ45 Index Rebalance Preview (July): Review Period Nearly Complete
  • Silk Laser Firms Offer With Wesfarmers
  • Silk Laser Australia (SLA AU): Wesfarmers Binding Offer, Next Move EC Healthcare
  • Yamaha Motors (7272) | Choppy Waters Ahead
  • Luyuan Group IPO Preview: An Ambitious Manufacturer of Electric Bicycles Based in China
  • Filipino B2B E-Commerce Startup Shoppable Business Attracts US$1.15M Funding
  • Monster Beverage Corporation: Still A GARP Opportunity

LQ45 Index Rebalance Preview (July): Review Period Nearly Complete

By Brian Freitas

  • The review period for the LQ45 Index ends on 30 June. The changes should be announced in the last week of July, becoming effective after the close on 31 July.
  • Based on the index methodology, there could be up to 5 changes at the rebalance. Plus there will be capping changes for Bank Rakyat (BBRI) and Bank Central Asia (BBCA).
  • The impact of passive trading will be higher on the deletions than the inclusions since lower liquidity stocks are replaced with higher liquidity stocks.

Silk Laser Firms Offer With Wesfarmers

By David Blennerhassett

  • On the 19 April, Silk Laser Australia (SLA AU), an operator of specialist clinic networks across Australia, announced a $3.15/share NBIO from Wesfarmers Ltd (WES AU)
  • Ahead of the expiry of Wesfarmers’ due diligence, EC Healthcare (2138 HK) snuck in a $3.35/share NBIO. Wesfarmers opted out of its matching rights. Although due diligence remained ongoing.
  • SLA has now announced a binding implementation agreement with Wesfarmers at A$3.35/share. No word, as yet, from EC Healthcare. Nor is one expected.

Silk Laser Australia (SLA AU): Wesfarmers Binding Offer, Next Move EC Healthcare

By Arun George

  • Silk Laser Australia (SLA AU)‘s binding offer from Wesfarmers Ltd (WES AU) is at A$3.35 per share which is in line with EC Healthcare (2138 HK)’s non-binding proposal.
  • While EC Healthcare is a relative minnow, it secured HK$1 billion (A$191 million) financing in May, which suggests a chance of returning with a higher offer. 
  • If EC Healthcare deployed the HK$1.0 billion loan for the acquisition, it would imply a price of A$3.60 per share, 7.6% above Wesfarmers’ offer.  

Yamaha Motors (7272) | Choppy Waters Ahead

By Mark Chadwick

  • Yamaha Motors had blow-out 1Q results. The 20% share price rally since then suggests much of the good news is in the price
  • We are concerned that deteriorating macro-economic conditions in the US due to higher interest rates could derail demand for marine engines and boats
  • The stock price of US peer, Brunswick has already started to correct. Yamaha now trades at a premium valuation

Luyuan Group IPO Preview: An Ambitious Manufacturer of Electric Bicycles Based in China

By Andrei Zakharov

  • Luyuan Group (LUYUAN HK), a founder-led company and a pioneer in the e-bike industry in China, is looking to raise capital via the upcoming Hong Kong IPO. 
  • Luyuan Group (LUYUAN HK) is an extremely ambitious manufacturer of electric bicycles and electric motorcycles in China. ”Luyuan” is a trusted and well-known brand in Asia and worldwide.
  • I like profitable growth at scale and believe Luyuan Group IPO would be attractive to investors, given the company’s 40% y/y revenue growth and valuable brand.

Filipino B2B E-Commerce Startup Shoppable Business Attracts US$1.15M Funding

By e27

  • Filipino B2B e-commerce marketplace Shoppable Business has secured US$1.15 million in an oversubscribed pre-seed funding round, co-led by Foxmont Capital Partners and Seedstars International Ventures.
  • An unnamed global network of angel investors also participated.
  • The startup will use the funds to grow its business development team, develop more products and features, and expand into new regional markets.

Monster Beverage Corporation: Still A GARP Opportunity

By Pearl Gray Equity and Research

  • Qualitative factors and key metrics suggest that Monster Beverage Corporation presents a GARP opportunity.
  • The company is growing at scale and holds down a significant part of the energy drinks market.
  • The generational consumer shift into stimulated drinks lends researchers much scope to delve into the prospects of Monster Beverage Corporation (NASDAQ:MNST).

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