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Smartkarma Daily Briefs

Sep 25
0

Daily Brief TMT/Internet: Lasertec Corp, China Mobile, Micron Technology, Taiwan Semiconductor (TSMC) – ADR, Huawei Technology and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • The Biggish Sep 2023 “Wednesday-Thursday Trade” With Added Monday/Friday Flavour
  • Quiddity HK Connect SOUTHBOUND Flows (Week to 22Sep23) : China Mobile, Meituan, Xpeng, Banks!
  • Micron’s Results Likely to Call a Memory Market Trough and Highlight New HBM DRAM for AI
  • Taiwan Tech Weekly: Micron Results Ahead; Taiwan AI Plays Slump But Still Beat Nvidia Last 3 Months
  • Huawei and Kirin 9000S, Memory Markets, Intel, Nordic, and Broadcom TPUs

The Biggish Sep 2023 “Wednesday-Thursday Trade” With Added Monday/Friday Flavour

By Travis Lundy

  • Every year it’s the same trade. This year it is Wednesday and Thursday. There are risks to the analysis – notably allocation.
  • But there may be ¥800bn+ to buy on one day into the close later this month (+ another ¥200-300bn on two other days). Then a ¥500bn sell two days later.
  • Over the past ten years, the two day return on the March trade is great. In Sep, not so much. This year there are Extra Special Flows.

Quiddity HK Connect SOUTHBOUND Flows (Week to 22Sep23) : China Mobile, Meituan, Xpeng, Banks!

By Travis Lundy

  • This is the brand spanking new Quiddity HK Connect SOUTHBOUND Monitor. We work off the same presentation as the A/H Premium Monitor and Mainland Connect NORTHBOUND Monitor.
  • The data on liquid names is presented for 5 days and four weeks and anything seen can be ranked in tables or selected and charted (names, sectors, outperformance, etc).
  • We like the nifty interactive tables and charts and welcome feedback. This week saw HKD 14.5bn+ of net buying. That makes ten weeks of net inflows.

Micron’s Results Likely to Call a Memory Market Trough and Highlight New HBM DRAM for AI

By Vincent Fernando, CFA

  • Micron’s earnings results will be released September 27th. We expect the company to describe a trough for memory pricing happening now and provide a positive outlook for rising prices.
  • Micron and Nanya Tech have outperformed SK Hynix recently. Our ‘reversion catch up’ trade has worked. Going forward we believe Micron looks compelling on a relative basis.
  • SK Hynix was ahead of peers developing HBM DRAM needed for AI. However, Micron could now convince the market it can catch up by focusing on the next advanced version.

Taiwan Tech Weekly: Micron Results Ahead; Taiwan AI Plays Slump But Still Beat Nvidia Last 3 Months

By Vincent Fernando, CFA

  • Micron results this week. The company is likely to call a trough for memory prices and highlight its development of the next most advanced type of HBM DRAM for AI. 
  • Taiwan’s market fell, with previous AI-rally beneficiaries continuing to be some of the top losers. Interestingly, Taiwan AI-names outperformed Nvidia over the last three months.
  • Intel’s Innovation Conference wrapped up last week, with its new Meteor Lake PC CPUs launching Dec 14th, which is positive for the PC supply chain. Intel shares fell slightly however.

Huawei and Kirin 9000S, Memory Markets, Intel, Nordic, and Broadcom TPUs

By Douglas O’Laughlin

  • First, let’s talk about Huawei. I want to highlight how lackadaisically the export restrictions have even been applied.
  • BIS granted validated end-user status to SMIC in 2007, which meant that as late as 2020, multiple SMIC entities were still receiving tools from American companies.
  • BIS got lobbied by tool makers to undo commerce control list regulations in 2018. Also, AMEC has outright stolen tools from US companies.

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Sep 25
0

Daily Brief Health Care: Tokyo Stock Exchange Tokyo Price Index Topix, Lotus Pharmaceutical and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Ways Should Be Explored to Make Companies More Effective in Disclosing Their Cost of Capital
  • Lotus Pharmaceutical (1795 TT): Continued Stellar Growth in Q2; Pipeline Expansion to Drive Growth

Ways Should Be Explored to Make Companies More Effective in Disclosing Their Cost of Capital

By Aki Matsumoto

  • Recognizing the cost of capital and return on capital is an important factor in determining business strategy, but not many companies disclose their cost of capital and specific management vision.
  • In order to increase the effectiveness of disclosure of the cost of capital, we should consider changing the Corporate Governance Code to require disclosure by prime market listed companies.
  • JPX Prime 150 Index, which is based on “equity spreads,” has begun to be calculated, but it has’t attracted much attention since its performance doesn’t differ from that of TOPIX.

Lotus Pharmaceutical (1795 TT): Continued Stellar Growth in Q2; Pipeline Expansion to Drive Growth

By Tina Banerjee

  • In 2Q23, Lotus Pharmaceutical (1795 TT) reported 53% YoY growth in revenue to NTD4.4B, mainly driven by strong uptake of Lenalidomide and Suboxone in America and branded products in Taiwan.
  • Lotus reported an EPS of NTD4.85 for Q2 2023, 285% above EPS of NTD1.26 reported for the same quarter of 2022. This result beat the average analyst’s estimate by NTD0.64.
  • Lotus has acquired exclusive global right to develop and commercialize suicidal bipolar therapy NRX-101 and obtained approval for new branded oncology drug Zepzelca in Taiwan.

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Sep 25
0

Daily Brief Industrials: Malaysia Airports Holdings, Lonking Holdings, S.F. Holding, Jyoti CNC Automation and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Malaysia Airport (MAHB): Undervalued Tourism Play in SEA
  • Lonking (3339 HK): Between a Rock and a Hard Place
  • Monthly Chinese Express Tracker | August ASPs Plunge | Long SF / Short ‘Ground’? | (September 2023)
  • Jyoti CNC Automation Pre-IPO Tearsheet

Malaysia Airport (MAHB): Undervalued Tourism Play in SEA

By Henry Soediarko

  • Besides Thailand and Singapore, Malaysia is one of the countries in South East Asia that are popular tourists destination. 
  • Malaysia Airports Holdings (MAHB MK) is the airport operator that benefits from the tourism recovery in Malaysia. 
  • Compared to Airports of Thailand (AOT TB) , Malaysia Airport is trading at a lower valuation, although it has recorded better operating numbers YTD. 

Lonking (3339 HK): Between a Rock and a Hard Place

By Osbert Tang, CFA

  • While valuations for Lonking Holdings (3339 HK) do not appear expensive, there is a risk that the 2H23 earnings outlook is weaker than expected. This opens room for disappointment.
  • There is no sign that domestic sales have picked up and Jul-Aug was still down significantly. Meanwhile, the strong export in 1H23 has not sustained in the last two months. 
  • The weaker A-share market so far in 2H23 also does not bode well for investment gains, which are important contributors to the impressive earnings rebound in 1H23.

Monthly Chinese Express Tracker | August ASPs Plunge | Long SF / Short ‘Ground’? | (September 2023)

By Daniel Hellberg

  • Express industry pricing fell by -5% in August, but some companies’ ASPs fell by far more
  • Reportedly, we could see movement on planned J&T Express and CaiNiao IPOs this week
  • We think SF Holding should outperform its “plain vanilla” express peers in medium-term

Jyoti CNC Automation Pre-IPO Tearsheet

By Ethan Aw

  • Jyoti CNC Automation (0907734D IN) is looking to raise up to US$120m in its upcoming India IPO. The deal will be run by Equirus, SBI Capital and ICICI Securities.
  • Jyoti CNC Automation is a manufacturer of simultaneous 5-Axis Computer Numerical Control (CNC) machines with the second and twelfth largest market share in India and globally, respectively, according to F&S. 
  • Its portfolio includes a range of CNC machines such as CNC Turning Centers, CNC Turn Mill Centers and CNC Vertical Machining Centers, amongst others. 

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Sep 25
0

Daily Brief Financials: China Vanke (H), Redsun Properties Group Ltd and more

By | Daily Briefs, Financials

In today’s briefing:

  • Quiddity A/H Premium Weekly (To 22Sep23):  Financials & Communications Dominate Flows
  • Morning Views Asia: JSW Steel Ltd, Redsun Properties Group Ltd

Quiddity A/H Premium Weekly (To 22Sep23):  Financials & Communications Dominate Flows

By Travis Lundy

  • The Brand-Spanking New (7 weeks old) A-H Monitor has tables, charts, measures galore to track A/H premium positioning, southbound and northbound positioning in pairs over time, etc.
  • We used to do it and brought it back better. There are lots of cool interactive tables, and charts, heat maps, and comparative data. And 47 Trade Recommendations.
  • The last 6 weeks (since the start of the new Monitor and Portfolio 7 weeks ago) have seen net portfolio performance of +0.50%, +1.35%, +0.14%, +0.47%, +0.15%, +0.12%.

Morning Views Asia: JSW Steel Ltd, Redsun Properties Group Ltd

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.

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Sep 25
0

Daily Brief Consumer: Thai Beverage, ENM Holdings, Water Oasis, BYD , Golden Agri Resources, Pointerra Ltd and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Thai Beverage (THBEV SP): Cheaper than Peers with an Upcoming Catalyst
  • Merger Arb Mondays (25 Sep) – ENM, Poly Culture, Eoflow, Origin Energy, Symbio, Costa, InvoCare
  • Shortlist Of High Conviction Ideas: Income, Value, and Margin of Safety – September 2023
  • Quiddity Mainland Connect NORTHBOUND Flows (Week to 22Sep23) : BYD, Midea, Bk of Jiangsu, & Amperex
  • Golden Agri-Resources (GGR SP): Could Outperform Peers
  • Pointerra Ltd – FY24 Outlook Improving

Thai Beverage (THBEV SP): Cheaper than Peers with an Upcoming Catalyst

By Brian Freitas

  • Thai Beverage (THBEV SP) has trended lower over the last couple of years and the stock is trading very close to its lows.
  • There has been a contraction in multiples and Thai Beverage (THBEV SP) trades cheaper than a lot of its Asia listed peers.
  • A potential index inclusion could bring in significant passive inflows and result in a rerating of the stock.

Merger Arb Mondays (25 Sep) – ENM, Poly Culture, Eoflow, Origin Energy, Symbio, Costa, InvoCare

By Arun George

Shortlist Of High Conviction Ideas: Income, Value, and Margin of Safety – September 2023

By Sameer Taneja

Quiddity Mainland Connect NORTHBOUND Flows (Week to 22Sep23) : BYD, Midea, Bk of Jiangsu, & Amperex

By Travis Lundy

  • This is the brand spanking new Quiddity Mainland Connect NORTHBOUND Monitor. We work off the same presentation as the A/H Premium Monitor and HK Connect SOUTHBOUND Monitor.
  • The data on liquid names is presented for 5 days and four weeks and anything seen can be ranked in tables or selected and charted (names, sectors, outperformance, etc).
  • We like the nifty interactive tables and charts and welcome feedback. This week saw small net buying for the first week in seven.

Golden Agri-Resources (GGR SP): Could Outperform Peers

By Brian Freitas

  • Golden Agri Resources (GGR SP) has traded lower over the last year and trades cheaper than some of its peers.
  • Revenue, income and net profit margins have been moving higher over the last few years and EPS/DPS have increased sharply over the last two years.
  • Potential passive buying could result in Golden Agri Resources (GGR SP) outperforming peers in the near term.

Pointerra Ltd – FY24 Outlook Improving

By Research as a Service (RaaS)

  • Pointerra Ltd (ASX:3DP) provides a powerful cloud-based solution (Pointerra3D) for managing, visualising, analysing, using and sharing massive 3D point clouds and datasets.
  • Pointerra3D is a proprietary digital twin SaaS platform which delivers predictive digital insights and definitive answers to complex physical asset management questions.
  • The company has reported FY23 revenue of $8.3m, a decline of 22% on the previous corresponding period (pcp) and an underlying EBITDA loss of $4.68m (which includes non-recurring project services costs of $2.19m), against an underlying EBITDA loss of $0.02m a year ago. 

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Sep 25
0

Most Read: Mercari , Lasertec Corp, Thai Beverage, Samsonite, Posco DX, China Mobile, Newcrest Mining, Doosan Robotics, ENM Holdings, China Vanke (H) and more

By | Daily Briefs, Most Read

In today’s briefing:

  • Nikkei 225 Index Rebalance: Mercari, Lasertec, Nitori IN; Nippon Glass, Mitsui E&S, Matsui Sec OUT
  • The Biggish Sep 2023 “Wednesday-Thursday Trade” With Added Monday/Friday Flavour
  • Thai Beverage (THBEV SP): Cheaper than Peers with an Upcoming Catalyst
  • Index Rebalance & ETF Flow Recap: HSI, HSCI, ASX, SET50, Wharf, SK Tel, Tata Motors, Midea, PCOMP
  • KOSPI 200 Rebalance Candidates in December 2023 & Changes to the KOSPI 200 Rebalance Process
  • Quiddity HK Connect SOUTHBOUND Flows (Week to 22Sep23) : China Mobile, Meituan, Xpeng, Banks!
  • Last Week in Event SPACE: Newcrest/Newmont, PTT/PTTEP, Naspers/Prosus/Tencent, Itochu Techno
  • Doosan Robotics Institutional Lockups Breakdown Leaked Pre-Disclosure: Analyzing Flow Schedule
  • Merger Arb Mondays (25 Sep) – ENM, Poly Culture, Eoflow, Origin Energy, Symbio, Costa, InvoCare
  • Quiddity A/H Premium Weekly (To 22Sep23):  Financials & Communications Dominate Flows

Nikkei 225 Index Rebalance: Mercari, Lasertec, Nitori IN; Nippon Glass, Mitsui E&S, Matsui Sec OUT

By Brian Freitas

The Biggish Sep 2023 “Wednesday-Thursday Trade” With Added Monday/Friday Flavour

By Travis Lundy

  • Every year it’s the same trade. This year it is Wednesday and Thursday. There are risks to the analysis – notably allocation.
  • But there may be ¥800bn+ to buy on one day into the close later this month (+ another ¥200-300bn on two other days). Then a ¥500bn sell two days later.
  • Over the past ten years, the two day return on the March trade is great. In Sep, not so much. This year there are Extra Special Flows.

Thai Beverage (THBEV SP): Cheaper than Peers with an Upcoming Catalyst

By Brian Freitas

  • Thai Beverage (THBEV SP) has trended lower over the last couple of years and the stock is trading very close to its lows.
  • There has been a contraction in multiples and Thai Beverage (THBEV SP) trades cheaper than a lot of its Asia listed peers.
  • A potential index inclusion could bring in significant passive inflows and result in a rerating of the stock.

Index Rebalance & ETF Flow Recap: HSI, HSCI, ASX, SET50, Wharf, SK Tel, Tata Motors, Midea, PCOMP

By Brian Freitas

KOSPI 200 Rebalance Candidates in December 2023 & Changes to the KOSPI 200 Rebalance Process

By Douglas Kim

  • Korea Exchange is planning to change the criteria for rebalancing stocks in the KOSPI 200 index. 
  • The purpose of this change is to prevent stocks that surge ahead of the actual KOSPI 200 inclusion but fall significantly after the inclusion announcement.
  • We think there is a 70-80%+ probability that POSCO DX and L&F Co will be included in KOSPI 200 index in December 2023.

Quiddity HK Connect SOUTHBOUND Flows (Week to 22Sep23) : China Mobile, Meituan, Xpeng, Banks!

By Travis Lundy

  • This is the brand spanking new Quiddity HK Connect SOUTHBOUND Monitor. We work off the same presentation as the A/H Premium Monitor and Mainland Connect NORTHBOUND Monitor.
  • The data on liquid names is presented for 5 days and four weeks and anything seen can be ranked in tables or selected and charted (names, sectors, outperformance, etc).
  • We like the nifty interactive tables and charts and welcome feedback. This week saw HKD 14.5bn+ of net buying. That makes ten weeks of net inflows.

Last Week in Event SPACE: Newcrest/Newmont, PTT/PTTEP, Naspers/Prosus/Tencent, Itochu Techno

By David Blennerhassett

  • The Newmont (NEM US) CDI selldown on 15 December will have to be bought by active shareholders, not passive; a relatively large reverse funding trade on the ASX rebal.
  • Naspers (NPN SJ)/Prosus NV (PRX NA)‘s CEO steps down. However, operations/investments, and the ongoing tweaking of the organizational structure with respect to Tencent (700 HK), should continue unabated. 
  • Activist shareholders and Toshiba Corp (6502 JP) stuck with each other for years. The takeover allows both sides to escape their mutual bearhug,

Doosan Robotics Institutional Lockups Breakdown Leaked Pre-Disclosure: Analyzing Flow Schedule

By Sanghyun Park

  • The immediate float rate on the listing date (October 5) has reached 19.25% as the institutional lockup volume is not as high as initially expected.
  • Even with a low institutional lockup level, there seems to be a possibility of a certain IPO day pop.
  • The first exit point we can look for in the short term would be the 1-month lockup release (1.44% of SO) one month after listing.

Merger Arb Mondays (25 Sep) – ENM, Poly Culture, Eoflow, Origin Energy, Symbio, Costa, InvoCare

By Arun George

Quiddity A/H Premium Weekly (To 22Sep23):  Financials & Communications Dominate Flows

By Travis Lundy

  • The Brand-Spanking New (7 weeks old) A-H Monitor has tables, charts, measures galore to track A/H premium positioning, southbound and northbound positioning in pairs over time, etc.
  • We used to do it and brought it back better. There are lots of cool interactive tables, and charts, heat maps, and comparative data. And 47 Trade Recommendations.
  • The last 6 weeks (since the start of the new Monitor and Portfolio 7 weeks ago) have seen net portfolio performance of +0.50%, +1.35%, +0.14%, +0.47%, +0.15%, +0.12%.

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Sep 24
0

Daily Brief Quantitative Analysis: TWSE Short Interest Weekly (Sep 22nd): Accton Tech and more

By | Daily Briefs, Quantitative Analysis

In today’s briefing:

  • TWSE Short Interest Weekly (Sep 22nd): Accton Tech, Alchip Tech, Ap Memory Tech, Asmedia Tech

TWSE Short Interest Weekly (Sep 22nd): Accton Tech, Alchip Tech, Ap Memory Tech, Asmedia Tech

By Ke Yan, CFA, FRM

  • We analyzed the changes in short interest of TWSE Stocks as of Sep 22nd which has an aggregated short interest worth USD13.6bn.
  • We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases & decreases in short value, short as multiple of ADT.
  • We highlight short interest changes in Accton Tech, Alchip Tech, Ap Memory Tech, Asmedia Tech, Bizlink Holding, Faraday Tech.

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Sep 24
0

Daily Brief Thematic (Sector/Industry): US Large Banks – New B/S Data: CRE Craters and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • US Large Banks – New B/S Data: CRE Craters, MBS Sharp Decline, LLR & Big Fixed Deposits Up+, SE Flat
  • Auctus on Friday – 22/09/2023

US Large Banks – New B/S Data: CRE Craters, MBS Sharp Decline, LLR & Big Fixed Deposits Up+, SE Flat

By Daniel Tabbush

  • US large banks are showing more cash emphasis in the latest weekly data, increased signs of risk aversion, with MBS in sharp decline and CRE loans
  • Loan loss reserves continue to rise at over 18% YoY, and this will mean that banks are taking a lot more credit costs, impacting returns, net profit growth
  • Large time deposits accelerating, up 88.0% YoY in the most recent week; with all of these points, perhaps it is no wonder that shareholders’ equity is stagnant?

Auctus on Friday – 22/09/2023

By Auctus Advisors

  • ADX Energy (ADX AU)C ; target price of A$0.08 per share : Completing farm-out transaction in Austria – The farm-out transaction of Anshof to MND has now completed with an initial payment of EUR1.93 mm.
  • MND has further Anshof development funding obligations of EUR4.683 mm for the drilling, completion and tie-in of the Anshof-2 and Anshof-1 wells as well as payment of further contingent amounts of EUR1.335 mm and EUR3.57 mm (A$ 5.95 million) if the Anshof-2 well meets agreed production performance criteria.
  • Arrow Exploration (AXL LN/CN)C ; target price of £0.55 per share: Good flow rate in the C7 at CN-3 – A 23 ft pay zone (25% porosity) in the Carbonera C7 formation in the CN-3 well has been perforated and put initially on production at a rate of 1,149 bbl/d on pump with a water cut of <0.5%. 

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Sep 24
0

Daily Brief ECM: Doosan Robotics Institutional Lockups Breakdown Leaked Pre-Disclosure: Analyzing Flow Schedule and more

By | Daily Briefs, ECM

In today’s briefing:

  • Doosan Robotics Institutional Lockups Breakdown Leaked Pre-Disclosure: Analyzing Flow Schedule
  • ECM Weekly (24th Sep 2023) – Cainiao, J&T, Midea, Kokusai, Seoul Guarantee, Barito, Integral, DPC

Doosan Robotics Institutional Lockups Breakdown Leaked Pre-Disclosure: Analyzing Flow Schedule

By Sanghyun Park

  • The immediate float rate on the listing date (October 5) has reached 19.25% as the institutional lockup volume is not as high as initially expected.
  • Even with a low institutional lockup level, there seems to be a possibility of a certain IPO day pop.
  • The first exit point we can look for in the short term would be the 1-month lockup release (1.44% of SO) one month after listing.

ECM Weekly (24th Sep 2023) – Cainiao, J&T, Midea, Kokusai, Seoul Guarantee, Barito, Integral, DPC

By Sumeet Singh

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Sep 24
0

Daily Brief Equity Bottom-Up: China Healthcare Weekly (Sep.22) – Medical Device VBP and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • China Healthcare Weekly (Sep.22) – Medical Device VBP, Restore Optimism on Healthcare, Biokin Pharma
  • Sunac Services (1516 HK):  Positive Development From Debt Restructuring Of Parent Company
  • MediaTek (2454.TT): Gaining Google TPU V7 Project Entirely Could Be a Misconception
  • 2Q Follow-Up – D. Western Therapeutics Institute (DWTI) (4576 JP)
  • China’s New List Of D-SIBs’ Capital Buffer Is Wearing Thin For Some
  • Hyatt Hotels Corporation: Key Initiatives to Boost Loyalty and Attract New Guests! – Major Drivers
  • Splunk and $28B Mega Deal: Will Cisco Overpay For San Francisco-Based Software Company?
  • Steelcase, Inc. – Early 3Q Order Flow Rebounding; Raising Estimates
  • IPG Photonics Corporation: The E-Mobility Surge Pushing the Revenue Boundaries! – Major Drivers
  • Teleflex Incorporated: Strategies Unveiled to Conquer Approvals and Surgeon Training! – Major Drivers

China Healthcare Weekly (Sep.22) – Medical Device VBP, Restore Optimism on Healthcare, Biokin Pharma

By Xinyao (Criss) Wang

  • The national centralized procurement of high-value medical consumables such as intraocular lens (IOL) and sports medicine medical consumables is about to begin. We listed the companies that could be affected.
  • The instability of policies seems to be a consensus among investors regarding China healthcare. However, if truly understand the logic behind policy changes and industry shifts, investors will maintain optimism.
  • We analyzed the key points of Biokin. Its valuation is ridiculously high considering the current pipeline situation and commercialization outlook. We think the bubble will eventually burst (e.g. 50% downside).

Sunac Services (1516 HK):  Positive Development From Debt Restructuring Of Parent Company

By Steve Zhou, CFA

  • On September 21, a debt restructuring agreement was reached with debt holders of Sunac China, in which part of the agreement included Sunac Services shares.
  • The debt restructuring for Sunac China should provide a positive feedback loop to the sentiment and fundamentals of Sunac Services.
  • The core property management business (86% of sales) grew 8% yoy in 1H23, with total gross floor area growing by 12% yoy. 

MediaTek (2454.TT): Gaining Google TPU V7 Project Entirely Could Be a Misconception

By Patrick Liao

  • There is a misconception that “MediaTek is gaining the Google TPU v7 project entirely in 2024-25F.”
  • Transsion Holding is placing a new order with MediaTek in 4Q23F, which is larger than ~25mn and has the lowest ASP.
  • Our current view remains bearish on smartphone demand for 2H23F.

2Q Follow-Up – D. Western Therapeutics Institute (DWTI) (4576 JP)

By Sessa Investment Research

  • Major milestones with high expectations coming in the next 2-3 years: 1) Phase IIb US trials for H-1337 as “first choice as a second-line Glaucoma drug” for patients who do not respond to PGs, 2) 2023 application, 2024 approval and 2025 launch of DW-1002 in Japan, 2023 application/approval/launch in China, as well as expedited development of combination formula MembraneBlue-DualR (DW-1002 + trypan blue) in the US [NEW], 3) 2023 approval and subsequent 2024 launch of DW-5LBT lidocaine patch for treatment of neuropathic pain in the US, and 4) clinical trials in 2024 in Japan and application for approval in 2025 of regenerative cell medicine DWR-2206 [NEW].
  • Coming into the 3Q, DWTI announced 2 updates not included in its “Business Plan and Growth Potential.”
  • On 7/13, DWTI announced the development plan for regenerative cell medicine DWR-2206, aiming to submit a notification of clinical trial at the end of 2023, start clinical trials in 2024, and submit application for approval (NDA) in 2025 (using the expedited conditional and term-limited approval system for regenerative therapeutics).

China’s New List Of D-SIBs’ Capital Buffer Is Wearing Thin For Some

By Fern Wang

  • PBOC and NAFR included Bank of Nanjing in its latest D-SIBs list, increasing the total D-SIBs to 20
  • 13 benchmarks were used to assess the D-SIBs using 1H23 data
  • All D-SIBs fulfilled their additional capital requirements as of 1H23, but the buffer is wearing thin for some especially in view of the difficult economic environment 

Hyatt Hotels Corporation: Key Initiatives to Boost Loyalty and Attract New Guests! – Major Drivers

By Baptista Research

  • Hyatt Hotels Corporation’s results were a major disappointment as the company failed to meet Wall Street’s revenue and earnings expectations.
  • The ongoing transformation of Hyatt is gaining momentum, with second-quarter results reinforcing their confidence in executing the strategy outlined during the Investor Day in May.
  • Hyatt has set ambitious targets, aiming to achieve $750 million in free cash flow and an 80% asset-light earnings mix by 2025.

Splunk and $28B Mega Deal: Will Cisco Overpay For San Francisco-Based Software Company?

By Andrei Zakharov

  • Splunk shares outperformed in 2023 and rose ~69% as total ARR exceeded $4B, operating loss narrowed, and FCF margin improved. The company executed well to drive long-term durable growth.
  • Over the past 2 years, Splunk transformed itself into a cloud company. In 2022, WSJ reported that Cisco made a $20B+ takeover offer. However, no deal was on the table. 
  • Following M&A rumors, the company’s cloud transition, and strong fundamentals, Cisco offered a $157 per share to acquire Splunk in a $28B mega all-cash deal on September 21, 2023. 

Steelcase, Inc. – Early 3Q Order Flow Rebounding; Raising Estimates

By Water Tower Research

  • We are raising our estimates following an upbeat conference call and follow-up with SCS management.

  • Our adjusted 3QFY24 estimate, now at $0.25, is up from $0.21 and at the midpoint of guidance.

  • Full-year FY24 guidance is now $0.80-0.90. Our new FY24 EPS estimate is $0.88, up from $0.71 pre-release and near the top end of guidance.

IPG Photonics Corporation: The E-Mobility Surge Pushing the Revenue Boundaries! – Major Drivers

By Baptista Research

  • IPG Photonics Corporation delivered a mixed set of results for the previous quarter, with revenues below the analyst consensus.
  • They achieved substantial revenue growth in the welding and cleaning applications, led by robust e-mobility and handheld welding solution sales.
  • Additionally, 3D printing and solar cell manufacturing applications have seen increased revenue as a result of better investments in these industries.

Teleflex Incorporated: Strategies Unveiled to Conquer Approvals and Surgeon Training! – Major Drivers

By Baptista Research

  • Teleflex managed to exceed analyst expectations in terms of revenue as well as earnings.
  • Adjusted earnings per share for the same period were $3.41, reflecting a 0.6% increase compared to the previous year.
  • The company observed a continued stabilization in hospital staffing, positively affecting second-quarter revenue growth, particularly in products tied to hospital settings.

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