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Smartkarma Daily Briefs

Jun 18
0

Daily Brief ESG: The Problem Is that Many Managers Know that ROE Is Below Cost of Capital but Are Not Taking Action and more

By | Daily Briefs, ESG

In today’s briefing:

  • The Problem Is that Many Managers Know that ROE Is Below Cost of Capital but Are Not Taking Action

The Problem Is that Many Managers Know that ROE Is Below Cost of Capital but Are Not Taking Action

By Aki Matsumoto

  • The essence of problem lies in the fact that even half of them believe that ROE doesn’t exceed cost of capital, yet managers haven’t taken measures to address this problem.
  • In reality, management reform is still a long way off, as constructive proposals from shareholders are often not accepted until the % of foreign shareholders rises to the 30% level.
  • TSE has made it possible to compare the superiority of management skills with share price. Attention will be focused on how managers will answer questions about share prices at AGMs.

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Jun 18
0

Daily Brief ECM: Almac IPO Bookbuilding Results Analysis and more

By | Daily Briefs, ECM

In today’s briefing:

  • Almac IPO Bookbuilding Results Analysis
  • ECM Weekly (18th June 2023) – JD Property, Tata Tech, SBFC Fin, Auckland Air, Weilong, Sula, Abacus

Almac IPO Bookbuilding Results Analysis

By Douglas Kim

  • Almac announced its IPO price of 50,000 won, which is 11% higher than the high end of the IPO price range. Demand ratio was very high at 1,697 to 1.
  • A 98.7% of the IPO shares applied thought that the company’s value is more than 45,000 won
  • Given the exceptional demand for IPO shares, it is likely that the IPO share price is likely to trade at higher end of the IPO range in our sensitivity analysis.

ECM Weekly (18th June 2023) – JD Property, Tata Tech, SBFC Fin, Auckland Air, Weilong, Sula, Abacus

By Sumeet Singh

  • Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
  • In the IPO space,  HK remained quiet with Australia seeing some more action.
  • On the placement front, Bain continued to exit Axis Bank Ltd (AXSB IN) while Weilong Delicious Global (9985 HK) and Sula Vineyards had lock-up expiries.

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Jun 18
0

Daily Brief Thematic (Sector/Industry): US Banks – Weekly Balance Sheets Show Major Loan Deceleration and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • US Banks – Weekly Balance Sheets Show Major Loan Deceleration
  • China Healthcare Weekly (Jun.16)- 9th National VBP Update, “Noise” of Consumption Upgrading, ChatGPT

US Banks – Weekly Balance Sheets Show Major Loan Deceleration

By Daniel Tabbush

  • Weekly US bank data shows sharply decelerating loans at the largest 25 banks
  • Core to the economy are C&I loans which are showing the pace of growth down 72%
  • Small US banks appear to be seeing off-balance sheet CRE loans moving on balance sheet

China Healthcare Weekly (Jun.16)- 9th National VBP Update, “Noise” of Consumption Upgrading, ChatGPT

By Xinyao (Criss) Wang

  • According to the latest requirements of NHSA, the inclusion of biological drugs in VBP is an inevitable trend, and seven varieties could be included in the upcoming 9th national VBP.
  • When the “noise” of consumption upgrading fades, the so-called product pricing power doesn’t belong to enterprises, but would return to consumers themselves.This is what companies/investors need to be aware of. 
  • We hope that investors can rationally see the applications and impacts of ChatGPT in the medical field. Its popularity and adoption may not be as fast as expected.

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Jun 18
0

Daily Brief Macro: 4 Charts to Watch Post-FOMC Meeting and more

By | Daily Briefs, Macro

In today’s briefing:

  • 4 Charts to Watch Post-FOMC Meeting
  • EM by EM #8 The Indian Elephant in the Room- Will It Keep Holding Up?

4 Charts to Watch Post-FOMC Meeting

By Emil Moller

  • The dot plot may be yet a hawkish surprise but inflation is crashing
  • “Pauses” tend to result in pivots but we see it more as FED prioritizing financial stability
  • The May playbook is still intact when it comes to trading FFR futures

EM by EM #8 The Indian Elephant in the Room- Will It Keep Holding Up?

By Emil Moller

  • Indian economy remains resilient and keeps expanding while clouds are gathering ROW
  • Equities in India are rich for a reason and corporate balance sheets look solid
  • We feel more comfortable being exposed to rates than cashflow due to outlook and valuation

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Jun 18
0

Daily Brief Event-Driven: Index Rebalance & ETF Flow Recap: HSCEI and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • Index Rebalance & ETF Flow Recap: HSCEI, HSTECH, STAR50, KOSDAQ150, CPSE/CNXBANK, Kenedix Merger
  • Last Week in Event SPACE: Kesei/Oriental Land, Intouch, Abacus Property, Great Eagle, JS Global
  • EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades-A Rising Tide Lifts All Boats
  • SET50 Index Rebalance: TLI, WHA to Replace JMART, JMT
  • (Mostly) Asia-Pac Weekly Risk Arb Wrap: Lutronic, Hailan, Mason, Tesserent, Kenedix

Index Rebalance & ETF Flow Recap: HSCEI, HSTECH, STAR50, KOSDAQ150, CPSE/CNXBANK, Kenedix Merger

By Brian Freitas

Last Week in Event SPACE: Kesei/Oriental Land, Intouch, Abacus Property, Great Eagle, JS Global

By David Blennerhassett

EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades-A Rising Tide Lifts All Boats

By Simon Harris

  • Weekly summary of vol changes and moves across Global Markets
  • Analysing ATM volatility and skew changes over the last 5 days
  • We suggest a few trades to take advantage of the implied vol surfaces

SET50 Index Rebalance: TLI, WHA to Replace JMART, JMT

By Brian Freitas

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Lutronic, Hailan, Mason, Tesserent, Kenedix

By David Blennerhassett

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Jun 18
0

Daily Brief Equity Bottom-Up: Puradelta Lestari (DMAS IJ) – Cars and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Puradelta Lestari (DMAS IJ) – Cars, Drugs, and Data Centres
  • Viva Biotech Holdings (1873 HK): Fund Raising Through Offloading Stake in CRO Arm

Puradelta Lestari (DMAS IJ) – Cars, Drugs, and Data Centres

By Angus Mackintosh

  • Puradelta Lestari (DMAS IJ) remains one of the most interesting industrial estate developers in Indonesia with a high-quality tenant base across growth sectors including autos, 2W, pharmaceuticals, and data centres.
  • The completion of a new AEON Mall will provide a further draw for the estate as a destination and a place to live and work and is increasingly well-connected.
  • DMAS had a slower start to the year for revenues but marketing sales are running ahead of schedule having beat last year, with bookings expected to pick up in 2023.

Viva Biotech Holdings (1873 HK): Fund Raising Through Offloading Stake in CRO Arm

By Tina Banerjee

  • Viva Biotech Holdings (1873 HK) is raising RMB1.06 billion (~$150 million) through offloading ~24% of its equity interest in Viva Shanghai, the primary entity of the company’s CRO business.
  • The consideration implies a revenue ratio and gross profit ratio of 4.90x and 11.04x, respectively. The ratios are at the similar level of the average ratios of other comparable peers.
  • Going ahead, Viva Biotech is planning to spin off its CRO business for separate listing in the A-shares market. IPO application is expected to be filed by June 30, 2024.

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Jun 17
0

Daily Brief TMT/Internet: Adobe Systems, Applied Materials, Autodesk Inc, Marvell Technology , NetEase and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Adobe 2Q’23 Update
  • Applied Materials Inc.: Launch of New R&D Facility & Other Drivers
  • Autodesk Inc.: Next-Generation Building Design On the Cloud – Key Drivers
  • Marvell Technology Inc.: Launch Of Silicon Interconnects A Possible Game Changer? – Key Drivers
  • NetEase Inc.: Launch of Multifunctional Studio & Other Developments

Adobe 2Q’23 Update

By MBI Deep Dives

  • Revenue: Digital Media net new ARR $470 Mn ($50 mn higher than guide).

  • Gross Margin: Digital Media gross margin remains steady at ~96%, but Digital Experience posted its highest ever gross margin of 67.3% in 2Q’23.

  • Cost Structure: 2Q’23 GAAP operating margin was 33.7%, down from 34.9% in 2Q’22.

Applied Materials Inc.: Launch of New R&D Facility & Other Drivers

By Baptista Research

  • Applied Materials managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.
  • Despite weaknesses in consumer electronics, the company sees robust demand driven by technology inflections and regional supply chain investments.
  • Applied Materials noted that leading-edge foundry logic customers have adjusted their spending plans but remain committed to their long-term roadmaps.

Autodesk Inc.: Next-Generation Building Design On the Cloud – Key Drivers

By Baptista Research

  • The last quarter was decent for Autodesk as it managed to meet the revenue expectations as well as the earnings expectations of Wall Street.
  • Key indicators remained consistent with the previous quarter, with modest growth in product usage, record bid activity on BuildingConnected, and improved renewal rates.
  • Autodesk is driving innovation and transformation, shifting from products to capabilities, exemplified by the successful launch of the AEC industry cloud, Forma.

Marvell Technology Inc.: Launch Of Silicon Interconnects A Possible Game Changer? – Key Drivers

By Baptista Research

  • Marvell managed to exceed analyst expectations in terms of revenue as well as earnings.
  • The company sees significant opportunities in the AI sector, as AI data centers require high-capacity, low-latency connectivity, driving demand for Marvell’s PAM4 optical DSP platform.
  • Marvell expects the AI trend to continue growing, with plans to double revenue in fiscal 2024 and at least double it again in fiscal 2025.

NetEase Inc.: Launch of Multifunctional Studio & Other Developments

By Baptista Research

  • NetEase delivered a mixed result in the recent quarter with revenues above market expectations but it failed to surpass the analyst consensus in terms of earnings.
  • The company experienced positive momentum with increased net revenues and significant growth in net income attributable to NetEase shareholders.
  • The company’s strong growth in Q3, with increased revenues, robust net income, and sustained Chinese audience engagement, positions them for future success.

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Jun 17
0

Daily Brief Credit: Weekly Wrap – 16 Jun 2023 and more

By | Credit, Daily Briefs

In today’s briefing:

  • Weekly Wrap – 16 Jun 2023
  • Europe HY Trade Book – June 2023 – Lucror Analytics

Weekly Wrap – 16 Jun 2023

By Charles Macgregor

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.

In this Insight:

  1. Vedanta Resources
  2. Tata Motors Ltd
  3. Health And Happiness (H&H)
  4. Central China Real Estate
  5. Agile Property Holdings

and more…

Europe HY Trade Book – June 2023 – Lucror Analytics

By Charles Macgregor

The Europe HY Trade Book for June 2023 includes high-conviction trade ideas drawn from our European HY coverage universe, along with relative-value scatter plots and tables by industry.

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Jun 17
0

Daily Brief ECM: Ralph Lauren Corporation: Digital Business Is Booming and more

By | Daily Briefs, ECM

In today’s briefing:

  • Ralph Lauren Corporation: Digital Business Is Booming
  • Best Buy Co: Investing in Omnichannel Capabilities to Stay Ahead of the Competition – Key Drivers
  • Burlington Stores: Robust Inventory Management Cushioning The Inflation Impact? – Key Drivers
  • Dollar Tree Inc.: Is The Multi-Price Strategy Its Real Secret Sauce For Success? – Key Drivers
  • Royal Bank of Canada: Is It Underperforming Versus Its Canadian Rivals? – Key Drivers
  • The Toronto-Dominion Bank: Failed Acquisition Of First Horizon A Positive For Shareholders? – Key Drivers
  • Autodesk Inc.: Next-Generation Building Design On the Cloud – Key Drivers
  • Ulta Beauty: Strong Self-Care Sales Are a Sign of Things to Come – Key Drivers

Ralph Lauren Corporation: Digital Business Is Booming

By Baptista Research

  • Ralph Lauren delivered an all-around beat in the previous quarter.
  • In the fourth quarter, the company’s total revenues climbed 9% in constant currency, driven mostly by double-digit growth in Asia.
  • Mid-single-digit revenue declines in constant currency were seen in their digital environment.

Best Buy Co: Investing in Omnichannel Capabilities to Stay Ahead of the Competition – Key Drivers

By Baptista Research

  • Best Buy delivered a mixed set of results for the previous quarter, with revenues well below analyst expectations but managed an earnings beat.
  • Despite cautious consumer behavior due to inflation and low confidence, Best Buy maintained consistent purchasing patterns and demographics.
  • Customer satisfaction scores improved for in-home services, delivery, and remote support, highlighting the company’s focus on customer support.

Burlington Stores: Robust Inventory Management Cushioning The Inflation Impact? – Key Drivers

By Baptista Research

  • Burlington Stores delivered a disappointing set of results as the company was unable to meet the revenue expectations as well as earnings expectations of Wall Street.
  • Comparable store sales increased by 4%, while overall sales increased by 11% during the quarter.
  • Product sourcing costs increased by 60 basis points as a percentage of sales.

Dollar Tree Inc.: Is The Multi-Price Strategy Its Real Secret Sauce For Success? – Key Drivers

By Baptista Research

  • Dollar Tree delivered a mixed set of results in its most recent result, with revenues above Wall Street expectations but below-par earnings.
  • Both the Dollar Tree and Family Dollar sectors had good top-line growth.
  • At Family Dollar and Dollar Tree, in-stock positions improved by 200 basis points and 400 basis points, respectively.

Royal Bank of Canada: Is It Underperforming Versus Its Canadian Rivals? – Key Drivers

By Baptista Research

  • Royal Bank of Canada delivered a mixed set of results for the previous quarter with revenues above the analyst consensus.
  • Capital Markets had another solid quarter despite a challenging climate for global investment banking fee pools.
  • Besides, the entrenched benefits of their structural low-beta core deposit business persisted this quarter, indicating the latent impact of recent interest rate increases.

The Toronto-Dominion Bank: Failed Acquisition Of First Horizon A Positive For Shareholders? – Key Drivers

By Baptista Research

  • Toronto Dominion delivered a mixed result in the recent quarter with revenues above market expectations but it failed to surpass the analyst consensus in terms of earnings.
  • During the last quarter, TD’s Canadian Personal and Commercial Banking segment showed steady progress, with increased net income and revenue.
  • Loan volumes and deposits saw modest growth, although there was a shift towards term deposits and higher-yielding investments.

Autodesk Inc.: Next-Generation Building Design On the Cloud – Key Drivers

By Baptista Research

  • The last quarter was decent for Autodesk as it managed to meet the revenue expectations as well as the earnings expectations of Wall Street.
  • Key indicators remained consistent with the previous quarter, with modest growth in product usage, record bid activity on BuildingConnected, and improved renewal rates.
  • Autodesk is driving innovation and transformation, shifting from products to capabilities, exemplified by the successful launch of the AEC industry cloud, Forma.

Ulta Beauty: Strong Self-Care Sales Are a Sign of Things to Come – Key Drivers

By Baptista Research

  • Ulta Beauty managed to exceed analyst expectations in terms of revenue as well as earnings.
  • However, the importance of self-care remains strong as evidenced by the solid engagement with beauty products.
  • They look to enhance guest experiences across touchpoints, including their digital store and Ulta Beauty at Target.

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Jun 17
0

Daily Brief Health Care: Immix Biopharma Inc and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Immix Biopharma – ATM completion may extend runway into H224

Immix Biopharma – ATM completion may extend runway into H224

By Edison Investment Research

Immix Biopharma has completed its $5.0m at-the-market (ATM) offering program. The funding is as a result of the initial share sales agreement in March 2023 and is anticipated to further support Immix’s pipeline activities with the development of its key assets: the CAR-T treatment, NXC-201, and the tissue-specific therapeutic, IMX-110. We view the ATM offering as a positive, especially in light of the current macro funding environment for biotech companies.

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