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Smartkarma Daily Briefs

Jun 11
0

Daily Brief Energy/Materials: Alamos Gold , Inner Mongolia Yitai Coal Company Ltd and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • MVIS Global Junior Gold Miners Index Rebalance: Big Float & Capping Changes
  • (Mostly) Asia-Pac Weekly Risk Arb Wrap: ENM, Estia Health, Yitai Coal, and Challenger Technologies

MVIS Global Junior Gold Miners Index Rebalance: Big Float & Capping Changes

By Brian Freitas

(Mostly) Asia-Pac Weekly Risk Arb Wrap: ENM, Estia Health, Yitai Coal, and Challenger Technologies

By David Blennerhassett

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Jun 11
0

Daily Brief Industrials: Toshiba Corp, Korea Se Corp and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Last Week in Event SPACE: Toshiba, China Resources Power, Chindata, Tian An China
  • Early Preview of KOSDAQ 150 Ad-Hoc Change in July: Hydro Lithium Will Replace NICE IS

Last Week in Event SPACE: Toshiba, China Resources Power, Chindata, Tian An China

By David Blennerhassett

  • Toshiba Corp (6502 JP)‘s Board has a Revised Opinion. It has recommended the Offer for reasons which smack of resignation rather than appropriate deliberation. Investors beware.
  • Given CR Power (836 HK)‘s clean energy unit’s profitably, a listing should be a significant event, attracting a wide audience, and probably a premium to other listed green energy plays.
  • Chindata Group (CD US) is unquestionably cheap. But Bain’s indicative Offer is not the answer to long-suffering shareholders.

Early Preview of KOSDAQ 150 Ad-Hoc Change in July: Hydro Lithium Will Replace NICE IS

By Sanghyun Park

  • Hydro Lithium (formerly Korea Se Corp) is the top reserved issue in INDUSTRIALS and will get to replace NICE IS as a result of the KOSPI transfer listing.  
  • The most significant price movements occur when the index corporate action announcement is made. However, some investors hunt for this pattern, as observed in the case of Youlchon Chemical.
  • Hence, it’s worth considering an earlier entry timing. To minimize uncertainty, it’s vital to keep an eye on the preemptive price increase of Hydro Lithium before KRX’s approval.

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Jun 11
0

Daily Brief Industrials: Toshiba Corp, Korea Se Corp and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Last Week in Event SPACE: Toshiba, China Resources Power, Chindata, Tian An China
  • Early Preview of KOSDAQ 150 Ad-Hoc Change in July: Hydro Lithium Will Replace NICE IS

Last Week in Event SPACE: Toshiba, China Resources Power, Chindata, Tian An China

By David Blennerhassett

  • Toshiba Corp (6502 JP)‘s Board has a Revised Opinion. It has recommended the Offer for reasons which smack of resignation rather than appropriate deliberation. Investors beware.
  • Given CR Power (836 HK)‘s clean energy unit’s profitably, a listing should be a significant event, attracting a wide audience, and probably a premium to other listed green energy plays.
  • Chindata Group (CD US) is unquestionably cheap. But Bain’s indicative Offer is not the answer to long-suffering shareholders.

Early Preview of KOSDAQ 150 Ad-Hoc Change in July: Hydro Lithium Will Replace NICE IS

By Sanghyun Park

  • Hydro Lithium (formerly Korea Se Corp) is the top reserved issue in INDUSTRIALS and will get to replace NICE IS as a result of the KOSPI transfer listing.  
  • The most significant price movements occur when the index corporate action announcement is made. However, some investors hunt for this pattern, as observed in the case of Youlchon Chemical.
  • Hence, it’s worth considering an earlier entry timing. To minimize uncertainty, it’s vital to keep an eye on the preemptive price increase of Hydro Lithium before KRX’s approval.

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Jun 11
0

Daily Brief Health Care: Clover Biopharmaceuticals and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • China Healthcare Weekly (Jun.9) – Pediatric TCM New Policy, Long-Term Money Dislikes A-Share, Clover

China Healthcare Weekly (Jun.9) – Pediatric TCM New Policy, Long-Term Money Dislikes A-Share, Clover

By Xinyao (Criss) Wang

  • The General Office of National Health Commission issued a notice on further strengthening the management of clinical medication for children. Pediatric TCM is more popular, with decent growth potential.
  • Long-Term money choosing to leave A-share isn’t due to geopolitical risks. If outlook isn’t good, the logic of capital’s allocation in A-share isn’t based on promising growth, but on liquidity instead.
  • We analyzed key points of Clover Biopharmaceuticals (2197 HK). The Company has entered a vicious cycle. If Clover is abandoned by the market, it will lead to lack of liquidity.

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Jun 11
0

Daily Brief Consumer: MOG Holdings, Esports Entertainment Group, Home Depot Inc and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Index Rebalance & ETF Flow Recap: HSCI, GDXJ, KRX New Deal, AMFI, Amman Mineral, Infratil
  • Galaxy Entertainment: A Macau Market Leader with Room to Grow Even near Term
  • The Home Depot Inc.: Can It Bounce Back From This Dull Phase? – Key Drivers

Index Rebalance & ETF Flow Recap: HSCI, GDXJ, KRX New Deal, AMFI, Amman Mineral, Infratil

By Brian Freitas

  • The changes for the KOSPI2 INDEX, KOSDAQ150 Index, CSI300 Index, STAR50 INDEX and a bunch of other onshore China indices were implemented last week.
  • The coming week has a lot of rebalance implementations on Friday with the S&P/ASX family and the MVIS family, among others.
  • AUM for the Yuanta/P-shares Taiwan Top 50 ETF (0050 TT) has continued to increase with big inflows in the last week.

Galaxy Entertainment: A Macau Market Leader with Room to Grow Even near Term

By Howard J Klein

  • Conventional corporate wisdom says market leaders have less room to grow and must concentrate on holding share. Not true.
  • As Macau recovery gains steam, Galaxy is meeting challenges with its expansion likely to move its dominant market share higher as the total pie grows.
  • The company’s focus is on capacity as well as diversity of offerings bolstered by a balance sheet among the healthiest in the sector.

The Home Depot Inc.: Can It Bounce Back From This Dull Phase? – Key Drivers

By Baptista Research

  • Home Depot delivered a disappointing set of results as the company was unable to meet the revenue expectations as well as earnings expectations of Wall Street.
  • However, despite these challenges, Home Depot observed strength in key spring-related categories, such as live goods and other garden-related products, where the weather was more favorable.
  • Despite the challenges, Home Depot’s dedicated team prioritizes associates and customers, delivering value and service throughout the quarter.

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Jun 10
0

Daily Brief Thailand: CP ALL PCL and more

By | Daily Briefs, Thailand

In today’s briefing:

  • CP ALL Pcl (CPALL TB) – Omnipresent Operator

CP ALL Pcl (CPALL TB) – Omnipresent Operator

By Angus Mackintosh

  • CP ALL is increasingly one of the best proxies for consumption in Thailand, with its broad exposure to convenience stores, hypermarkets, supermarkets, wholesale through Makro’s cash & carry stores.
  • The company continues to expand its store footprint and improve margins through a better product mix towards fresh and private labels, as well as group synergies around growing omnichannel sales. 
  • CP ALL is the largest weighting in MSCI Thailand and has seen pressure from foreign outflows due to political uncertainty but this may be about to work in its favour. 

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Jun 10
0

Daily Brief South Korea: Lutronic Corp and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Trading Plays for the Unexpected Tender Offer to Lutronic Corp Shareholders
  • Details of the Lutronic Tender Offer M&A by Hahn & Company

Trading Plays for the Unexpected Tender Offer to Lutronic Corp Shareholders

By Sanghyun Park

  • Retail investors hold the majority of shares at 60%, and they may be interested in participating in the second tender offer based on their accumulated learning effect.
  • Based on the observed behavior of Hahn & Co, it’s unlikely that they will walk away from the delisting plan.
  • We need to consider going long on the potential upward adjustment of the second tendering price. This play can be viewed as a call option with a floor at ₩36,700.

Details of the Lutronic Tender Offer M&A by Hahn & Company

By Douglas Kim

  • In this insight, we provide details of the Lutronic tender offer M&A by Hahn & Company.
  • We believe that Hahn & Co is likely to successfully complete this M&A tender offer of Lutronic. 
  • In our view, most of the shareholders of Lutronic are likely to tender their shares, given the sharp share price appreciation and reasonable tender offer premium. 

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Jun 10
0

Daily Brief Japan: Tokyo Stock Exchange Tokyo Price Index Topix, Toyota Motor Corp Spon Adr and more

By | Daily Briefs, Japan

In today’s briefing:

  • What Is the Effective Way to Ensure That “TSE Request” Does Not End up Being a Formal Disclosure?
  • Toyota Motor Corporation: How Long Are Production Constraints & Other Challenges Going To Last? – Key Drivers

What Is the Effective Way to Ensure That “TSE Request” Does Not End up Being a Formal Disclosure?

By Aki Matsumoto

  • The test will be how many companies will disclose details that include the measures investors expect and whether the stock price will react positively when the panel concludes this fall.
  • The most effective measure to ensure that “TSE’s request” doesn’t end up as a formal disclosure is for shareholders to press management at the AGMs to raise the share price.
  • It’s important that the company’s resources are used effectively to maximize corporate value, and such measures should be put in place to increase the share price above the current level.

Toyota Motor Corporation: How Long Are Production Constraints & Other Challenges Going To Last? – Key Drivers

By Baptista Research

  • Toyota managed to exceed analyst expectations in terms of revenue as well as earnings.
  • The company faced production constraints due to factors like semiconductor shortages, natural disasters, and the ongoing impact of COVID-19.
  • Their expert team members also remain committed to managing risks, investing in growth, and shaping the future of the automotive industry.

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Jun 10
0

Daily Brief United States: Tandem Diabetes Care, Elastic NV, Coinbase, Henry Schein, ROBLOX , Fox Corporation, Twilio Inc, Tyson Foods Inc Cl A, Waters Corp, Wynn Resorts and more

By | Daily Briefs, United States

In today’s briefing:

  • Tandem Diabetes Care (TNDM US): Missed Earnings + Severe Competition = A Bitter Pill to Swallow
  • Focus On Profitability Expansion And Durable Growth: PT Reduced To $112 From $133
  • Coinbase: The Outlook Is Cloudy After The SEC Lawsuit
  • Henry Schein Inc.: Acquisition of Regional Health Care Group & Other Drivers
  • Roblox Corporation: Launch Of Generative AI Game Creation Tools & Other Drivers
  • Fox Corporation: Formation of Tubi Media Group To Lead Fox’s Digital Expansion Efforts – Key Drivers
  • Twilio Inc.: Sale Of IoT Business
  • Tyson Foods Inc.: Continued Challenges In Beef
  • Waters Corporation: Can It Weather the Storm in China? – Key Drivers
  • Wynn Resorts

Tandem Diabetes Care (TNDM US): Missed Earnings + Severe Competition = A Bitter Pill to Swallow

By Tina Banerjee

  • Tandem Diabetes Care (TNDM US) has been consistently missing earnings expectations. This is taking a toll on the share price performance, with shares plunging ~61% over the last one year.
  • Tandem’s nearest rival has recently launched its new insulin pump in the U.S. This will affect Tandem’s Q2 sales growth. Tandem guided for 10–12% revenue growth in 2023.
  • Tandem is a hugely beaten down stock. However, it will be wise to wait for Tandem to launch new product, ensure its good uptake amid competition, and exhibit earnings stability.

Focus On Profitability Expansion And Durable Growth: PT Reduced To $112 From $133

By Andrei Zakharov

  • Elastic NV (ESTC US) reported a solid 4QFY23, reflecting a stronger-than-expected non-GAAP operating margin of ~9% and GAAP subscription gross margin of ~79%. 
  • Elastic cloud revenue grew 28% y/y, representing 40% of total revenue. Elastic cloud is scaling well, and margins improved faster-than-anticipated. 
  • We are concerned about slowing H1 FY24 y/y growth in total revenue and failure to achieve the $2B revenue mark in FY25. Price target to $112.

Coinbase: The Outlook Is Cloudy After The SEC Lawsuit

By Kevin George

  • Coinbase lost 16% of its value after the SEC announced a lawsuit against the company.
  • The lawsuit comes 24 hours after a similar action against rival exchange Binance, which saw $780 million in outflows.
  • Coinbase may continue to make quarterly losses due to market uncertainty, loss of deposits and potential SEC fines.

Henry Schein Inc.: Acquisition of Regional Health Care Group & Other Drivers

By Baptista Research

  • Henry Schein delivered a mixed set of results for the previous quarter, with revenues above analyst expectations but below-par earnings.
  • The global dental specialties business saw increased sales growth, particularly in premium product lines and implant sales.
  • Henry Schein made notable acquisitions, including a majority stake in Biotech Dental, a leading provider of dental implants and clear aligners, and the planned entry into the Brazilian implant market with the acquisition of S.I.N.

Roblox Corporation: Launch Of Generative AI Game Creation Tools & Other Drivers

By Baptista Research

  • Roblox 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.
  • They achieved positive cash flow and generated substantial free cash during the quarter.
  • Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

Fox Corporation: Formation of Tubi Media Group To Lead Fox’s Digital Expansion Efforts – Key Drivers

By Baptista Research

  • Fox Corporation delivered an all-around beat in the previous quarter.
  • The significant Super Bowl LVII bolstered the quarter’s success on the Fox Broadcast Network, which generated significant advertising revenue across their businesses and contributed to a remarkable 61% growth in advertising revenue in the Television segment.
  • Despite the industry challenges, We give Fox Corporation a ‘Hold’ rating with a revised target price.

Twilio Inc.: Sale Of IoT Business

By Baptista Research

  • Twilio delivered an all-around beat in the previous quarter.
  • It was a challenging quarter as the company navigated through changes and headwinds in a demanding macro environment.
  • The management acknowledged the moderation in consumer-facing usage patterns and the impact of lapping peak crypto usage from the previous year.

Tyson Foods Inc.: Continued Challenges In Beef

By Baptista Research

  • Tyson Foods delivered a disappointing set of results as the company was unable to meet the revenue expectations as well as earnings expectations of Wall Street.
  • While the overall performance was disappointing compared to the previous year, Tyson Foods claims to have performed reasonably in volume and dollar sales, gaining market share in the retail core business lines.
  • Despite these challenges, Tyson Foods remains focused on strengthening its branded foods business.

Waters Corporation: Can It Weather the Storm in China? – Key Drivers

By Baptista Research

  • Waters Corporation delivered a disappointing set of results as the company was unable to meet the revenue expectations as well as earnings expectations of Wall Street.
  • Waters Corporation continues to invest in high-growth adjacencies and has a pending acquisition of Wyatt.
  • Waters Corporation is focused on managing the challenges and maintaining its growth trajectory, emphasizing customer needs and market opportunities.

Wynn Resorts

By Baptista Research

  • Wynn Resorts managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.
  • In Las Vegas, Wynn Resorts achieved significant results in Q1, supported by a thriving consumer base.
  • In Macau, Wynn Resorts generated significant earnings despite some challenges, including a lower VIP hold.

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Jun 10
0

Daily Brief China: Koolearn, Tian An China Investment, Mobvoi, JD Health, Hopson Development, Dalian Wanda Commercial Properties and more

By | China, Daily Briefs

In today’s briefing:

  • KWEB Index Rebalance: Few Changes at the Close Today
  • StubWorld: Tian An In AGL’s Crosshairs
  • Chinese ChatGPT Rival Mobvoi Files for Hong Kong IPO
  • JD Health: Profitability Remains Under Pressure
  • Weekly Wrap – 09 Jun 2023
  • Wanda Group Expects to Pay $281 Million Note Due Saturday

KWEB Index Rebalance: Few Changes at the Close Today

By Brian Freitas

  • The June rebalance of the KraneShares CSI China Internet ETF (KWEB US) will take place at the close of trading today.
  • There are a couple of deletions and one inclusion. Plus there will be capping changes on the other stocks, but the impact of those changes is not large.
  • The stocks have already been moving in the right direction during the day and the pre-positions could be flipped to the ETF at the close.

StubWorld: Tian An In AGL’s Crosshairs

By David Blennerhassett

Chinese ChatGPT Rival Mobvoi Files for Hong Kong IPO

By Caixin Global

  • Google-backed Chinese artificial intelligence company Mobvoi Inc. filed Tuesday for an initial public offering on the Hong Kong Stock Exchange.
  • The Beijing-based startup, valued at $756 million in its last round of fundraising three years ago, didn’t disclose the size of the IPO.
  • Bloomberg reported that the company aims to raise $200 million to $300 million, citing people familiar with the matter.

JD Health: Profitability Remains Under Pressure

By Shifara Samsudeen, ACMA, CGMA

  • In May, JD Health made a voluntary announcement that the company has made operating income of RMB795.4m (5.7% of revenues) in 1Q2023 vs RMB61.6m (0.7% of revenues) reported in 1Q2022.
  • JD Health’s share price been down more than 25% despite the company announcing strong 1Q2023 results, as the market has become concerned over the company’s ability to sustain its profits.
  • Our quantamental analysis proves that JD Health may not be able to generate OPM in excess of 2-3% as there is very little room for GPM to improve.

Weekly Wrap – 09 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. China SCE
  2. China Hongqiao
  3. Times China
  4. Greentown China
  5. Seazen (Formerly Future Land)

and more…

Wanda Group Expects to Pay $281 Million Note Due Saturday

By Caixin Global

  • Dalian Wanda Group Co.’s property management unit expects to scrape up enough cash to pay off a 2 billion yuan ($281 million) note due this Saturday, the company said.
  • But with 8.9 billion yuan of domestic notes and offshore bond due within two months, Dalian still needs to dump some of its shopping malls and hotels.
  • The troubled property-to-entertainment conglomerate was reported to be considering such moves earlier this week.

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