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Smartkarma Daily Briefs

Sep 22
0

Daily Brief Financials: Champion REIT, Bank Mandiri Persero, Bank Negara Indonesia Persero and more

By | Daily Briefs, Financials

In today’s briefing:

  • Champion REIT 2778 HK: Facing Multiple Headwinds, an Uphill Battle.  Bearish
  • Bank Mandiri (BMRI IJ) – Higher Returns While Livin’ It Up
  • BBNI – Stock Split to Double Shares on 10 October | NPLs Are in Sharp Decline, Especially Loss Loans

Champion REIT 2778 HK: Facing Multiple Headwinds, an Uphill Battle.  Bearish

By Jacob Cheng

  • Champion REIT is facing multiple headwinds, including weakness in its office building due to upcoming office supply
  • Its retail asset Langham is doing better post COVID, but not enough to offset the weakness in office
  • DPU may continue to decline over time. Therefore we stay bearish until we see turn-around signal

Bank Mandiri (BMRI IJ) – Higher Returns While Livin’ It Up

By Angus Mackintosh

  • Bank Mandiri (BMRI IJ) continues to positively surprise on loans, NIMs, and credit costs, with a consequential improvement in returns, only non-interest income seeing a slowdown but likely temporary.
  • Digital banking initiatives through Livin’ and KOPRA continue to grow and help the bank drive higher CASA and fee income whilst reducing costs, with smart branches also improving returns.
  • Bank Mandiri remains a core holding as a proxy to the Indonesian economy with its digital initiatives driving higher returns. Valuations remain attractive on 2.2x FY2023 PBV with 20% ROE.

BBNI – Stock Split to Double Shares on 10 October | NPLs Are in Sharp Decline, Especially Loss Loans

By Daniel Tabbush

  • The bank expects its 2 new for 1 old stock split to be done on 10 October
  • Total shares should move from 18.6tr to 37.3tr after the stock split
  • Compared with peers, BBNI has low market cap/assets, good ROA

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Sep 22
0

Most Read: Toshiba Corp, Newcrest Mining, Bloomberry Resorts, Kokusai Electric , SK Square , Midea Group Co Ltd A, Intage Holdings, Hanwha Systems Co Ltd, LG Corp, Kum Yang and more

By | Daily Briefs, Most Read

In today’s briefing:

  • Toshiba Tender Offer Ends Today – Upcoming Index Selldown Schedule
  • Newcrest-Newmont Merger: Fancy Index Shenanigans
  • PCOMP Index Rebalance Preview: MPI Delisting Could See Bloomberry Added
  • Kokusai Electric (6525 JP) IPO: Listing in October, TPX Inclusion in November, Global Indices Later
  • SK Square: Updated NAV Analysis Amid Potential Sale of 11st to Alibaba
  • Midea A/H Listing – Early Look – Probably Raising Acquisition Currency
  • Intage Holdings (4326 JP): NAVF Selldown and Proration for NTT’s Partial Offer
  • A Proactive Long Short Basket Setup Targeting KOSPI Size Index’s Next Rebal
  • LG Corp: Updated NAV Analysis & Outperformance Likely Driven by Value Investors
  • KRX Plans to Introduce Float Market Cap & Extreme Price Increases to KOSPI 200 Screening

Toshiba Tender Offer Ends Today – Upcoming Index Selldown Schedule

By Travis Lundy

  • The JIP Tender Offer for Toshiba Corp (6502 JP) closes today. I expect that we will see results announced as early as late tonight, but by law, by latest tomorrow.
  • There will be at least three major index downweights, and possibly deletions, most likely in the following five trading days.
  • This shows the approximate maximum share and dollar amounts to be sold, and approximate dates. 

Newcrest-Newmont Merger: Fancy Index Shenanigans

By Travis Lundy

PCOMP Index Rebalance Preview: MPI Delisting Could See Bloomberry Added

By Brian Freitas

Kokusai Electric (6525 JP) IPO: Listing in October, TPX Inclusion in November, Global Indices Later

By Brian Freitas

  • Kokusai Electric (6525 JP)‘s listing has been approved by the JPX and the stock is expected to start trading on the Prime Market from 25 October.
  • At the reported indicative IPO price of JPY 1890/share, Kokusai Electric (6525 JP) will be valued at JPY 435bn (US$2.94bn).
  • The stock should be added to the TPX INDEX at the close on 29 November where trackers will need to buy over 14% of the stock issued in the IPO.

SK Square: Updated NAV Analysis Amid Potential Sale of 11st to Alibaba

By Douglas Kim

  • In this insight, we provide an updated valuation analysis of SK Square (402340 KS) amid a potential sale of 11st to Alibaba (ADR) (BABA US).
  • Our NAV analysis of SK Square suggests NAV of 9.2 trillion won or NAV per share of 65,069 won, representing a 55% upside from current levels.
  • If SK Square is able to sell its stake in 11st to Alibaba, the capital inflow from the sale could be used to raise dividends and complete more share buybacks. 

Midea A/H Listing – Early Look – Probably Raising Acquisition Currency

By Sumeet Singh

  • Midea Group Co Ltd A (000333 CH), one of the world’s largest home appliance producers, aims to raise up to  US$5bn in its H-share listing.
  • Midea Group is one of the world’s largest home appliance manufacturing companies with a presence in over 200 countries. Its A-shares have been listed since 2013.
  • In this note, we look at its past performance and other deal dynamics that might impact the listing.

Intage Holdings (4326 JP): NAVF Selldown and Proration for NTT’s Partial Offer

By Arun George

A Proactive Long Short Basket Setup Targeting KOSPI Size Index’s Next Rebal

By Sanghyun Park

  • We need to focus on the top 2 candidates among the Mid→Large candidates in the screening table mentioned above and the bottom 4 candidates among the Large→Mid candidates.
  • Since they are relatively far from the borderline, there is a significant likelihood that their classification will change. So, flow trading timing on these candidates could be brought forward.
  • Monitoring Doosan Robotics’s market cap potentially nearing ₩3T and keeping an eye on the listing date of Ecopro Materials, we should make changes to the Mid→Large candidates from early December.

LG Corp: Updated NAV Analysis & Outperformance Likely Driven by Value Investors

By Douglas Kim

  • Our NAV analysis of LG Corp suggests an implied market cap of 16.9 trillion won or 107,217 won per share which is 28.4% higher than current share price. 
  • We believe that LG Corp could announce another share buybacks representing 2-3% of outstanding shares in the next 6-12 months. 
  • Another reason that could result in LG Corp’s shares outperforming other major LG related shares is due to the value investors increasing capital allocation to higher dividend paying LG Corp.

KRX Plans to Introduce Float Market Cap & Extreme Price Increases to KOSPI 200 Screening

By Sanghyun Park

  • In addition to full market cap and trading value, float-adjusted market cap will be added as a quantitative screening tool. 
  • Regarding extreme price increases, KRX plans to utilize the deviation between the average daily market capitalizations for two, three, and six months leading up to the screening base date.
  • We should consider designing trading setups that target stocks with relatively low free-float rates and high price volatility in recent months.

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Sep 21
0

Daily Brief Private Markets: Antler and more

By | Daily Briefs, Private Markets

In today’s briefing:

  • Antler, EFishery CEO Back Profitable Indonesian Corn Startup
  • Sustainable Farming, Supply Chain Traceability Startup Koltiva Raises Series A Funding
  • Evo Commerce Banks US$2.8M More for Product Development, Asia Expansion
  • Gene Solutions Raises $21m Series B, Targeting Regional Expansion

Antler, EFishery CEO Back Profitable Indonesian Corn Startup

By Tech in Asia

  • Maize plays a pivotal role in Indonesian agriculture, including as a prime source of animal feed. In 2022, the country’s maize production was estimated to reach 44 million tons.

  • Agritech startup Kora is one of those few startups operating in this space.

  • Kora aims to improve the quality and quantity of post-harvest maize.

Sustainable Farming, Supply Chain Traceability Startup Koltiva Raises Series A Funding

By e27

  • Indonesia-based Koltiva works with producers in 52 countries and boasts over 1 million producers and 6,800 businesses

  • Indonesia-based sustainable farming and supply chain traceability startup Koltiva has raised an undisclosed “seven-figure” USD in a Series A financing round led by AC Ventures.

  • Silverstrand Capital, Planet Rise, Development Finance Asia, Blue 7, The Meloy Fund, and an unnamed impact investor in Southeast Asia also joined.

Evo Commerce Banks US$2.8M More for Product Development, Asia Expansion

By e27

  • Evo Commerce owns two brands: bback focuses on post-party recovery aids, while Stryv specialises in the affordable luxury segment for personal care electronics

  • Evo Commerce, a direct-to-consumer health & beauty startup based in Singapore, has secured US$2.8 million in equity and debt financing.

  • Shanghai-based firm IJK Capital led the round, with participation from Carousell Co-Founder and CEO Quek Siu Rui, Fave Co-Founder Joel Neoh, and Tipsy Collective.

Gene Solutions Raises $21m Series B, Targeting Regional Expansion

By Tech in Asia

  • Gene Solutions, which bills itself as Vietnam’s largest genetic testing company, has raised US$21 million in a series B round.

  • This follows a US$15 million investment that the private equity investor made in the company in 2021.

  • Gene Solutions is one of Mekong Capital’s recent bets in biotech, a sector that has been arguably underserved by venture capital firms in Vietnam.

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Sep 21
0

Daily Brief ESG: Few Companies Recognize Board Diversity as a Management Issue? and more

By | Daily Briefs, ESG

In today’s briefing:

  • Few Companies Recognize Board Diversity as a Management Issue?
  • Cemig – ESG Report – Lucror Analytics

Few Companies Recognize Board Diversity as a Management Issue?

By Aki Matsumoto

  • The percentage of female managers is low, around 10%, so it will take time for internal executive directors to be nominated, and meanwhile companies will be dependent on outside directors.
  • Finally, TSE has clearly stated specific numerical targets, so the path to achieving the targets is clear. Now the focus will shift to the content of female board  directors.
  • Hiring talented people should be the biggest management challenge, but the appointment of foreign talent has been too slow compared to the globalization of the business.

Cemig – ESG Report – Lucror Analytics

By Charles Macgregor

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We view Cemig’s ESG as “Strong”, in line with its “Strong” Environmental score, while the Social and Governance scores are “Adequate”. Controversies are “Immaterial” and Disclosure is “Strong”.

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Sep 21
0

Daily Brief Thematic (Sector/Industry): Ohayo Japan: Dots Say Higher for Longer; JapanX: Kishida Lays Out Welcome Mat for Foreign Investors and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • Ohayo Japan: Dots Say Higher for Longer; JapanX: Kishida Lays Out Welcome Mat for Foreign Investors

Ohayo Japan: Dots Say Higher for Longer; JapanX: Kishida Lays Out Welcome Mat for Foreign Investors

By Mark Chadwick

  • OVERSEAS: SPX -0.9% as Fed opted not to raise interest rates. However, the CB now sees rates higher for longer
  • JAPAN: NKY Futures -0.8% v cash, JPY 148.3/$; Toshiba Tender Offer gets done (finally); 
  • JAPAN X: Tokyo has long-dreamed of becoming a global financial city. Now PM Kishida is inviting foreigners to revitalize the Asset Management Industry

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Sep 21
0

Daily Brief ECM: Midea Group (000333 CH):  Potential H-Share Listing Thoughts and more

By | Daily Briefs, ECM

In today’s briefing:

  • Midea Group (000333 CH):  Potential H-Share Listing Thoughts
  • Softbank (9984 JP): Arm IPO Done, the Hard Part Comes Next
  • SignatureGlobal (India) IPO- Forensic Analysis
  • JSW Infrastructure IPO – Would Need a Wider Discount to Its Larger and More Dominant Peer
  • Seoul Guarantee Insurance IPO: The Bear Case
  • 4Paradigm IPO: Forecasts and Valuation
  • DPC Dash IPO – US$400m Lockup Expiry Should Provide a Liquidity Boost

Midea Group (000333 CH):  Potential H-Share Listing Thoughts

By Steve Zhou, CFA

  • Midea Group Co Ltd A (000333 CH) announced on September 18 the approval for H-share listing for a total of not more than 10% of its outstanding shares (before overallotment).
  • Reasons for the listing include the possible share incentive program for overseas employees and more exposure to foreign investors. 
  • The H-share listing could be a safe bet given the current valuation profile, especially if the discount to A-share is larger than 10%. 

Softbank (9984 JP): Arm IPO Done, the Hard Part Comes Next

By Victor Galliano

  • Softbank’s successful Arm Holdings IPO is a relief for Masa, with Arm valued at USD57bn and Arm shares trading above the issue price; this supports the SoftBank share price
  • Arm’s key challenge is delivering on the growth strategy to justify its super-premium valuation; Arm’s historic price to sales is at a big premium to its peer group, excluding Nvida
  • On current market values including Arm, Softbank shares trade at a 52% NAV discount; however, Arm’s current valuation seems unsustainable to us, threatening to erode the near term NAV lift

SignatureGlobal (India) IPO- Forensic Analysis

By Nitin Mangal

  • SignatureGlobal India Pvt Ltd (1468641D IN) IPO will go live for subscription this week. 
  • The company is one of the renowned players in the NCR and Haryana in the affordable and lower mid segment housing.
  • The company has grown well in the recent times, however there are certain forensic takeaways such as poor health of subsidiaries, related party transactions, etc.

JSW Infrastructure IPO – Would Need a Wider Discount to Its Larger and More Dominant Peer

By Clarence Chu

  • JSW Infrastructure (5978490Z IN) is looking to raise US$336m in its India IPO.
  • JSW Infrastructure (JSWI) is the fastest growing port-related infrastructure company in terms of growth in installed cargo handling capacity and cargo volumes handled during FY20 to FY22, according to CRISIL.
  • In this note, we will look at JSWI’s RHP updates, undertake a peer comparison, and share our thoughts on valuation.

Seoul Guarantee Insurance IPO: The Bear Case

By Arun George

  • Seoul Guarantee Insurance (031210 KS), a leading guarantee provider in Korea, is pre-marketing an IPO to raise up to KRW362 billion (US$272 million).
  • In Seoul Guarantee Insurance IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
  • The bear case rests on ongoing market share losses, weak performing credit insurance business, a 1H23 increase in the combined ratio and a decline in ROA/ROE metrics. 

4Paradigm IPO: Forecasts and Valuation

By Shifara Samsudeen, ACMA, CGMA

  • 4Paradigm has announced the terms for its IPO. The company plans to raise gross proceeds of $131-144m through issuing 18.4m shares at an indicative price range of HK$55.6-61.16 per shares.
  • The company’s IPO is timed perfectly when AI adoption is expected to expand on a large scale with the popularity of ChatGPT and other AI applications.
  • Though we liked 4Paradigm (1764934D HK) for its improving financials and growth prospects, our analysis suggests that the IPO is expensive.

DPC Dash IPO – US$400m Lockup Expiry Should Provide a Liquidity Boost

By Sumeet Singh

  • DPC Dash (1405 HK) raised around US$75m in its Hong Kong IPO in Mar 2023. Its IPO linked lockup is set to expire soon.
  • The company is the exclusive master franchisee for Domino’s Pizza in China, HK and Macau. DPC operated 672 stores across 20 cities, as of Jun 2023.
  • In this note, we will talk about the lock-up dynamics and updates since our last note.

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Sep 21
0

Daily Brief Credit: Morning Views Asia: First Pacific Co and more

By | Credit, Daily Briefs

In today’s briefing:

  • Morning Views Asia: First Pacific Co

Morning Views Asia: First Pacific Co

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 21
0

Daily Brief Event-Driven: Toshiba Tender Offer Ends Today – Upcoming Index Selldown Schedule and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • Toshiba Tender Offer Ends Today – Upcoming Index Selldown Schedule
  • Itochu TOB on Itochu Techno Solutions – The Index Selldown Schedule for $700mm+ of Flows
  • PCOMP Index Rebalance Preview: MPI Delisting Could See Bloomberry Added
  • Newcrest-Newmont Merger: Fancy Index Shenanigans
  • Descente a Key Part of Itochu’s Plans in Sports
  • StubWorld: PTT Public Is Trading Cheap
  • Naspers (NPN) & Prosus (PRX): Initial Market Reaction to Leadership Changes
  • Quiddity Leaderboard ASX Dec 23: 5 ASX 200 Changes and Other Large Potential Flow Events (NCM, AKE)
  • HLB: Hires Korea Investment & Securities for a Potential Switch to a KOSPI Listing
  • Deutsche Boerse Gets >90% of SimCorp

Toshiba Tender Offer Ends Today – Upcoming Index Selldown Schedule

By Travis Lundy

  • The JIP Tender Offer for Toshiba Corp (6502 JP) closes today. I expect that we will see results announced as early as late tonight, but by law, by latest tomorrow.
  • There will be at least three major index downweights, and possibly deletions, most likely in the following five trading days.
  • This shows the approximate maximum share and dollar amounts to be sold, and approximate dates. 

Itochu TOB on Itochu Techno Solutions – The Index Selldown Schedule for $700mm+ of Flows

By Travis Lundy

  • In August, Itochu Corp (8001 JP) launched a Tender offer on Itochu Techno Solutions (4739 JP) to buy out minorities. 
  • That tender offer ended last week, with Itochu and the acquirer vehicle owning 85+%. 
  • Interestingly, there are near-term flow events as a result. Worth watching.

PCOMP Index Rebalance Preview: MPI Delisting Could See Bloomberry Added

By Brian Freitas

Newcrest-Newmont Merger: Fancy Index Shenanigans

By Travis Lundy

Descente a Key Part of Itochu’s Plans in Sports

By Michael Causton

  • Through all the upheavals in discretionary product distribution in the last decade, Itochu Corp (8001 JP)’s Itochu Textile subsidiary has managed to maintain huge power in the channel.
  • While the trading firm has traditionally focused on premium fashion brands, in the last few years it has invested heavily in the sports market, including its growing investment in Descente.
  • The move is part of wider plans to take lead share in sports, footwear and department store brands.

StubWorld: PTT Public Is Trading Cheap

By David Blennerhassett

  • The recent share price pullback sees PTT PCL (PTT TB) trading below its long-term averages, and with respect to peers. 
  • Preceding my comments on PTT 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%.

Naspers (NPN) & Prosus (PRX): Initial Market Reaction to Leadership Changes

By Charlotte van Tiddens, CFA

  • Early on Monday morning, Naspers and Prosus announced the immediate resignation of CEO Bob van Dijk. Management hosted an investor call shortly after. Key takeaways are included below.
  • Ervin Tu, Group Chief Investment Officer, will take over as Interim CEO. Tu is a strong candidate for the permanent position.
  • After an initial bounce at the open, both counters sold off, widening the discounts by more than 1 percentage point intra-day.

Quiddity Leaderboard ASX Dec 23: 5 ASX 200 Changes and Other Large Potential Flow Events (NCM, AKE)

By Janaghan Jeyakumar, CFA

  • In this insight, we take a look at the potential index changes for ASX 200, 100, 50, and 20 in the run up to the December 2023 Rebalance.
  • There could be up to five ASX 200 changes including the intra-review changes that could potentially be triggered by M&A events.
  • There are also couple of possibly large reverse funding flow scenarios involving Newcrest Mining (NCM AU) and Allkem Ltd (AKE AU).

HLB: Hires Korea Investment & Securities for a Potential Switch to a KOSPI Listing

By Douglas Kim

  • On 20 September, HLB Inc announced that it has hired Korea Investment & Securities as an advisor for a potential switch from KOSDAQ to KOSPI listing. 
  • In our view, there is a 80-90%+ probability of HLB switching its listing from KOSDAQ to KOSPI sometime in the next 6-12 months.
  • If HLB finally decides to switch its listing from KOSDAQ to KOSPI, it is likely that HLB will be included in KOSPI 200 index in 2024. 

Deutsche Boerse Gets >90% of SimCorp

By Jesus Rodriguez Aguilar

  • Deutsche Boerse (DB1 GR) offered a (full) price of DKK 735/share for SimCorp A/S (SIM DC) to grow in data & analytics. I recommend long. Acceptances total roughly 93.65% of share capital.
  • All conditions and approvals, including minimum acceptance of 50%+1 share have been fulfilled. Final results should be announced on 22 September and settlement should take place on 29 September.
  • Deutsche Börse will as soon as possible seek to initiate and complete a compulsory acquisition. After a recent dip, the shares trade again at the offer price.

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Sep 21
0

Daily Brief Equity Bottom-Up: Coinbase: From Sleeping Giant To Industry Leader and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Coinbase: From Sleeping Giant To Industry Leader
  • Cambodia’s New Gaming Laws Reduce More than 50% of Legal Casinos: Nagacorp Expands Geographic Reach
  • Global Digital Niaga (BELI IJ) – BliBli Ploughing a More Profitable Furrow
  • Airport of Thailand (AOT): Not the Right Time
  • Remitly – Rev +49% | ROW Rev +120% | Scaling: COGS -25% | Adj EBITDA Margin 2Q23 Is 8.7%, Highest
  • BeiGene (6160.HK/BGNE.US) – The Truth Behind Novartis’ Divorce Decision on PD-1
  • UMC (2303.TT; UMC.US): The Revenue Can Be Downward a Bit in 4Q23F.
  • Yamazaki Baking: Breads & Buns Buonce But Valuation Is a Stalemate
  • PHC Holdings (6523 JP): Despite Slow Start, FY24 Guidance Reiterated; Diabetes Can Be a Sweet Spot
  • Chip Designer Arm Committed to China, CEO Says

Coinbase: From Sleeping Giant To Industry Leader

By Delphi Digital

  • Coinbase sees the looming opportunity in the global crypto futures & derivatives market. It’s positioning itself to capitalize on a market that’s been hollowed out over last 12-18 months.
  • We explore 3 key areas of Coinbase’s business that we believe Wall Street is overlooking. These include: Coinbase International, ETF Spot approvals, and Base Chain
  • We estimate Coinbase has the potential to realize additional top-line revenue in the range of 15-20% on the low-end to +150% increase on the high-end over the next few years.

Cambodia’s New Gaming Laws Reduce More than 50% of Legal Casinos: Nagacorp Expands Geographic Reach

By Howard J Klein

  • From 200 properties, the Cambodian government now only allows 87 shrinking capacity but increasing footfall for existing properties like Nagaworld in Phnom Penh.
  • Nagaworld enjoys a moat in metro Phnom Penh–this supply reduction expands its base.
  • H1 performance strong, reduced national capacity will contribute to revenue gains from a wider geography for the largest single integrated luxury resort in Cambodia.

Global Digital Niaga (BELI IJ) – BliBli Ploughing a More Profitable Furrow

By Angus Mackintosh

  • Global Digital Niaga (BliBli) continues to stand out from peers given a differentiated omnichannel model plus a greater portion of 1P but 3P sales are growing driven by Tiket.com.
  • TPV growth surpassed revenue growth in 1H2023 driven by Tiket.com but take rates and gross margins improved, as the company cut back on promotional spending and improved cost efficiencies. 
  • BliBli booked organic growth with more users and a significant pick-up in the average order value, partially driven by Tiket.com. 

Airport of Thailand (AOT): Not the Right Time

By Henry Soediarko

  • Visa-Free travel for Chinese tourists is certainly a boost for the Airports of Thailand (AOT TB) .
  • Compared to 2019 operational numbers, the 2023 number is still very low despite the large YoY gain thanks to the low base in 2022. 
  • The valuation is still high as the share price has run ahead of its fundamentals.

Remitly – Rev +49% | ROW Rev +120% | Scaling: COGS -25% | Adj EBITDA Margin 2Q23 Is 8.7%, Highest

By Daniel Tabbush

  • Remitly (RELY) offers remittances services with 5m active customers, in over 170 countries, with 4 billion bank accounts, and 4,800 corridors, mostly to persons in US, Canada. 
  • Revenue growth is strong at 49% YoY in 2Q23 and averaging 43% YoY for the preceding 5 quarters, with active customers up 474,000 in 2Q23 QoQ vs 371,000 in 1Q23
  • Costs remain high, GAAP earnings are in loss, but this is due to stock-based compensation; adjusted EBITDA is now USD20.4m in 2Q23 from an adjusted EBITDA loss YoY

BeiGene (6160.HK/BGNE.US) – The Truth Behind Novartis’ Divorce Decision on PD-1

By Xinyao (Criss) Wang

  • Novartis’ return of PD-1 to BeiGene may actually have nothing to do with TIGIT project. Long-term strategic adjustment and decreasing value of tislelizumab to Novartis could be the core reasons.
  • Abandoning PD-1 is a simple decision for Novartis, but not for BeiGene, who will do its best to promote FDA approval for tislelizumab, aiming to expand internationalization and stabilize valuation.
  • We advise investors not to focus too much on whether or not tislelizumab will eventually get FDA approval,because the actual peak sales tislelizumab can contribute to BeiGene could be disappointing.

UMC (2303.TT; UMC.US): The Revenue Can Be Downward a Bit in 4Q23F.

By Patrick Liao

  • The upcoming demand is expected to reduce in 4Q23F, with the most obvious decline in 40nm and 8″ demand.
  • Wafer ASP is expected to remain relatively stable until 4Q22F, even though revenue is not anticipated to pick up in 1H24F.
  • We expect the market to reach its lowest point in the first half of 2024F. The most likely scenario indicates a potential recovery around the third quarter of 2024F.

Yamazaki Baking: Breads & Buns Buonce But Valuation Is a Stalemate

By Oshadhi Kumarasiri

  • While Yamazaki Baking (2212 JP)‘s recent surge has been impressive, consensus expectations are high for the upcoming quarter, despite yet another price hike in July 2023.
  • From a valuation perspective, we expect limited upside potential even if Yamazaki Baking surpasses consensus expectations.
  • Therefore, we believe that the risk-reward profile for maintaining a long position in Yamazaki Baking is currently not particularly attractive.

PHC Holdings (6523 JP): Despite Slow Start, FY24 Guidance Reiterated; Diabetes Can Be a Sweet Spot

By Tina Banerjee

  • Despite the absence of special demand related to COVID-19, PHC Holdings (6523 JP)’s Q1FY24 revenue of ¥81.3B was at the same level as Q1FY23 due to favorable Fx impact.
  • Operating profit declined 16% YoY to ¥1.7B, due to lower profit in the diabetes management business and a drop in the volume of PCR testing.
  • PHC guided for FY24 revenue of ¥355.5B and operating profit of ¥29.3B (+47% YoY). The company expects FY24 net profit of ¥15.6B from a net loss of ¥3.2B in FY23.

Chip Designer Arm Committed to China, CEO Says

By Caixin Global

  • British chip designer Arm Holdings Plc remains committed to China and to working closely with its mainland-based partner following its $4.87 billion IPO, according to chief executive Rene Haas.

  • The Softbank-backed firm floated in New York last week via the world’s largest public offering year-to-date. But that has not affected its strategy globally.

  • Shanghai-headquartered Arm Technology (China) Co. Ltd., also known as Arm China, operates independently and is the exclusive licensing platform of Arm’s global intellectual property in China

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Sep 21
0

Daily Brief Crypto: China Expands Use of Digital Yuan to Covering Utility Bills and more

By | Crypto, Daily Briefs

In today’s briefing:

  • China Expands Use of Digital Yuan to Covering Utility Bills

China Expands Use of Digital Yuan to Covering Utility Bills

By Caixin Global

  • China further expanded the use of the digital yuan by enabling consumers to use it to pay utility bills. 
  • The digital yuan, also known as the e-CNY, is a legal currency in digital form issued by the central bank.
  • The People’s Bank of China (PBOC) recently updated its e-CNY mobile wallet app, adding new features that allow users to pay water, gas, electricity, heating and phone bills with the digital yuan. 

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