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Smartkarma Daily Briefs

May 26
0

Daily Brief United States: NVIDIA Corp, Futu Holdings Ltd, Aspira Women’s Health, Lido DAO Token and more

By | Daily Briefs, United States

In today’s briefing:

  • Nvidia Results Blow-Out: Multi-Year Growth Ahead; Wiwynn in Taiwan, Plus a Smallcap Wildcard AI Play
  • [Futu Holdings (FUTU US, BUY, TP US$51) Review]: A Resilient Quarter Under Regulatory Pressure
  • Aspira Women’s Health, Inc. – OvaWatch Is Here; Watch Out!
  • LDO’s Shifting Market Structure: Unveiling Asset Metrics

Nvidia Results Blow-Out: Multi-Year Growth Ahead; Wiwynn in Taiwan, Plus a Smallcap Wildcard AI Play

By Vincent Fernando, CFA

  • Nvidia’s results and guidance sparked a massive rally in the shares, marking one of the largest single-day increases in market cap in U.S. stock market history.
  • The company sees a multi-year growth cycle of data center upgrades ahead. Key supply chain partners TSMC and ASML are rising as well.
  • Wiwynn in Taiwan should be a key winner. We also highlight a potential wildcard smallcap AI play that we will investigate further.

[Futu Holdings (FUTU US, BUY, TP US$51) Review]: A Resilient Quarter Under Regulatory Pressure

By Shawn Yang

  • Futu reported 1Q23 revenue 12.7%/14.8% higher than our est./cons., non-GAAP NI 21.2%/19.5% higher than our est./cons., mainly due to strong margin financing and security lending activities during volatile market; 
  • Futu’s operation and client trading behaviours remain steady in 1Q23 after the implement of rectification measures from regulators. 
  • On the other side, overseas expansion in Japan and Malaysia may start to kick-off in 2H23; We maintain BUY rating on FUTU and maintain TP at US$51.  

Aspira Women’s Health, Inc. – OvaWatch Is Here; Watch Out!

By Water Tower Research

  • Aspira Women’s Health (AWH) hosted an Investor Day on May 23, which focused on its OvaWatchSM and EndoCheckTM diagnostic tools.
  • Two clinicians, Dr. Kevin Elias of Harvard Medical School, and Dr. Tamika Sea of Piedmont Henry Hospital in Atlanta, spoke to investors about their experience with AWH’s diagnostic technology.
  • OvaWatch, currently on the market, is a very important tool in monitoring and determining suspicious adnexal masses (indeterminate masses that show up on pelvic ultrasound scans).

LDO’s Shifting Market Structure: Unveiling Asset Metrics

By Kaiko

  • Asset Metrics is perhaps the most powerful product that Kaiko has ever released.
  • With a single endpoint, users are able to fetch historical liquidity and volume data for any asset we cover, including all instruments and all exchanges – centralized or decentralized.
  • Additionally, it includes historical holder data for a wide variety of ERC-20 tokens.

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May 26
0

Daily Brief Japan: Cosmo Energy Holdings, FUJIFILM Holdings, Frontier Management Inc, Tokyo Stock Exchange Tokyo Price Index Topix and more

By | Daily Briefs, Japan

In today’s briefing:

  • Cosmo Energy (5021) In a Display of Stunningly Bad Governance; If You Disagree, You Can’t Vote
  • FUJIFILM (4901.T) Loving The Setup Here
  • Frontier Management Inc. (7038 JP) – 1Q Follow-Up
  • Behind the Issue of Population Decline Is Also the Issue of Human Rights

Cosmo Energy (5021) In a Display of Stunningly Bad Governance; If You Disagree, You Can’t Vote

By Travis Lundy

  • Cosmo Energy Holdings (5021 JP) and noted Japanese activist Yoshiaki Murakami and affiliates/companies have been duking it out for the better part of a year. 
  • Now Cosmo is putting a Poison Pill to an AGM vote. And it has decided to not allow Murakami-san to vote his shares. Because he is an interested party.
  • INVESTORS NEED TO BE AWARE. This is the second time a company has sought to deny a shareholder its voting rights without legal basis. The last time the court agreed.

FUJIFILM (4901.T) Loving The Setup Here

By William Keating

  • Q1’23 revenues of ¥764 billion, up 15% YoY and 2.6% QoQ
  • FY2022, revenues grew by 13.2% to ¥2,859 while net income grew by 3.9% to ¥219.4.
  • Electronic Materials set to grow from ¥180 billion in ’22 to ¥500 billion by ’30

Frontier Management Inc. (7038 JP) – 1Q Follow-Up

By Sessa Investment Research

  • 1Q operating profit rose 18%, on a 19% rise in sales. Net profit rose 10%.
  • According to the company’s data, the pace of increase in orders has been increasing since around the last week of 1Q, indicating a potential for stronger results in this FY.
  • Management Consulting business sales rose 14%.

Behind the Issue of Population Decline Is Also the Issue of Human Rights

By Aki Matsumoto

  • The decline in the working-age population is not merely a decrease in the number of workers; it causes a loss of dynamism in society as a whole.
  • The “5-year rotational use of foreign workers without the assumption of permanent residency,” not immigration, is overshadowed by human rights issues.
  • Besides the high cost of education, an increasing number of people are choosing not to marry, and it is necessary to create a society that respects diverse lifestyles.

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May 26
0

Daily Brief ESG: China Water Affairs – ESG Report – Lucror Analytics and more

By | Daily Briefs, ESG

In today’s briefing:

  • China Water Affairs – ESG Report – Lucror Analytics
  • Behind the Issue of Population Decline Is Also the Issue of Human Rights
  • Sunac China – ESG Report – Lucror Analytics

China Water Affairs – ESG Report – Lucror Analytics

By Leonard Law, CFA

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess China Water Affairs’ ESG as “Adequate”, in line with its Environmental, Social and Governance scores. Controversies are “Immaterial” and Disclosure is “Adequate”.

Behind the Issue of Population Decline Is Also the Issue of Human Rights

By Aki Matsumoto

  • The decline in the working-age population is not merely a decrease in the number of workers; it causes a loss of dynamism in society as a whole.
  • The “5-year rotational use of foreign workers without the assumption of permanent residency,” not immigration, is overshadowed by human rights issues.
  • Besides the high cost of education, an increasing number of people are choosing not to marry, and it is necessary to create a society that respects diverse lifestyles.

Sunac China – ESG Report – Lucror Analytics

By Leonard Law, CFA

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Sunac China’s ESG as “Weak”, in line with its Governance score. That said, the Environmental and Social pillars are “Adequate”. Controversies are “Immaterial” and Disclosure is “Adequate”.

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May 26
0

Daily Brief Credit: Asia HY Trade Book – May 2023 – Lucror Analytics and more

By | Credit, Daily Briefs

In today’s briefing:

  • Asia HY Trade Book – May 2023 – Lucror Analytics
  • Morning Views Asia: Golden Eagle Retail

Asia HY Trade Book – May 2023 – Lucror Analytics

By Charles Macgregor

The Asia HY Trade Book for May 2023 includes a summary of our recommendations, as well as our high-conviction ideas. The report also features relative-value charts and lists of the bonds across Asia (ex-Japan) HY and crossover credits.

Morning Views Asia: Golden Eagle Retail

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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May 26
0

Daily Brief ECM: Mapletree Industrial Trust Placement – Data Centre Exposure Still on the Rise and more

By | Daily Briefs, ECM

In today’s briefing:

  • Mapletree Industrial Trust Placement – Data Centre Exposure Still on the Rise
  • Growatt Technology IPO: Valuation Updated Look
  • Almac IPO Preview

Mapletree Industrial Trust Placement – Data Centre Exposure Still on the Rise

By Ethan Aw

  • Mapletree Industrial Trust (MINT SP) is looking to raise at least S$202m (US$150m) in its primary placement.
  • The proceeds will be used to partially fund its acquisition of a data centre asset in downtown Osaka, Japan, while the remainder will be funded by debt.
  • In this note, we’ll run the deal through our ECM framework and comment on deal dynamics.

Growatt Technology IPO: Valuation Updated Look

By Arun George

Almac IPO Preview

By Douglas Kim

  • Almac is getting ready to complete its IPO on KOSDAQ in June. Almac is one of the leading aluminum parts company for the electric vehicles. 
  • The company ranks first in domestic market share in the aluminum extruded module cases that protect batteries from external shocks.
  • The company is offering 1 million new shares in this IPO. The IPO price range is from 40,000 won to 45,000 won.

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May 26
0

Daily Brief Thematic (Sector/Industry): Ohayo Japan |Tech..no and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • Ohayo Japan |Tech..no, NVIDIA All the Way; NUGGET: Calbee – Time for a 2nd Look ?
  • Monthly Chinese Tourism Tracker | Recovery Continues | But Seats Stay Empty | (May 2023)

Ohayo Japan |Tech..no, NVIDIA All the Way; NUGGET: Calbee – Time for a 2nd Look ?

By Mark Chadwick

  • OVERSEAS. NDIVIA scores leading Tech to drive SPX +0.9% into the green; Closer to a Debt Limit Deal;  Marvell Tech reports – Bullish On AI
  • JAPAN.  NKY Futs 0.9% vs Cash; USDJPY weakens to 140 on dovish Ueda comments; NVIDIA drives Japan AI supply chain gains; Foreigners continue to pour into Japan for 8th week.
  • NUGGET. Calbee, worth a 2nd look after the recent share price sell-off given their very credible medium term business plan.

Monthly Chinese Tourism Tracker | Recovery Continues | But Seats Stay Empty | (May 2023)

By Daniel Hellberg

  • Domestic and outbound Chinese air traffic continued to recover in April, but aircraft deployed on international routes continued to operate far below capacity
  • Headline numbers from the recent Labor Day holiday period show an increase in domestic travel activity to above 2019 levels, but spending per trip remains depressed
  • Tourism activity has increased dramatically compared to 2022, but five months after most Covid-19 restrictions were lifted there are few signs of stong demand for leisure travel

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May 26
0

Daily Brief Quantitative Analysis: Trend Following in Equities and more

By | Daily Briefs, Quantitative Analysis

In today’s briefing:

  • Trend Following in Equities
  • ASX Short Interest Weekly (May 19th): Wesfarmers, Coles, Xero, ANZ, Bhp, Woolworths, Newcrest
  • Hong Kong Buybacks Weekly (May 26th): Tencent, AIA, CK Asset

Trend Following in Equities

By Nicolas Rabener

  • Long-Only trend following in equities was more effective than long-short trend following in the US
  • Same for European and Asian stock markets. Perhaps explained by the negative skewness of stock markets.
  • The trend is my friend, right? May 2023 Reading Time: 10 Minutes. Author: Nicolas Rabener.

ASX Short Interest Weekly (May 19th): Wesfarmers, Coles, Xero, ANZ, Bhp, Woolworths, Newcrest

By Ke Yan, CFA, FRM

  • We analyzed the changes in short interest of ASX Stocks as of May 19th (reported today) which has an aggregated short interest worth USD16.8bn.
  • 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 Wesfarmers, Coles, Xero, ANZ, Bhp, Woolworths, Newcrest Mining.

Hong Kong Buybacks Weekly (May 26th): Tencent, AIA, CK Asset

By Ke Yan, CFA, FRM

  • We analyze statistics on top repurchases over one week, one month, one quarter and one year periods ended on May 26th based on HKEx daily reports.
  • In the past 7 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), Aia (1299 HK), Ck Asset (1113 HK).
  • In the past 30 days, the top 3 companies that repurchased the most shares from the market were Aia (1299 HK), Tencent (700 HK), Yihai International (1579 HK).

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May 26
0

Daily Brief Crypto: LDO’s Shifting Market Structure: Unveiling Asset Metrics and more

By | Crypto, Daily Briefs

In today’s briefing:

  • LDO’s Shifting Market Structure: Unveiling Asset Metrics

LDO’s Shifting Market Structure: Unveiling Asset Metrics

By Kaiko

  • Asset Metrics is perhaps the most powerful product that Kaiko has ever released.
  • With a single endpoint, users are able to fetch historical liquidity and volume data for any asset we cover, including all instruments and all exchanges – centralized or decentralized.
  • Additionally, it includes historical holder data for a wide variety of ERC-20 tokens.

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May 26
0

Daily Brief Event-Driven: Cosmo Energy (5021) In a Display of Stunningly Bad Governance; If You Disagree and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • Cosmo Energy (5021) In a Display of Stunningly Bad Governance; If You Disagree, You Can’t Vote
  • HDFC/​​​​​HDFC Bank Mega Merger Expected to Complete in a Few Weeks: Index Implications
  • Early Targetable Names in KOSPI 200 December Rebalancing
  • StubWorld: Swire Drifts Lower As Cathay Faces Discrimination Claim
  • EQD | Asian Derivative YTD Range Trade Ideas

Cosmo Energy (5021) In a Display of Stunningly Bad Governance; If You Disagree, You Can’t Vote

By Travis Lundy

  • Cosmo Energy Holdings (5021 JP) and noted Japanese activist Yoshiaki Murakami and affiliates/companies have been duking it out for the better part of a year. 
  • Now Cosmo is putting a Poison Pill to an AGM vote. And it has decided to not allow Murakami-san to vote his shares. Because he is an interested party.
  • INVESTORS NEED TO BE AWARE. This is the second time a company has sought to deny a shareholder its voting rights without legal basis. The last time the court agreed.

HDFC/​​​​​HDFC Bank Mega Merger Expected to Complete in a Few Weeks: Index Implications

By Brian Freitas

Early Targetable Names in KOSPI 200 December Rebalancing

By Sanghyun Park

  • Based on the average daily full market cap up until the last close, the following additions have been identified as high-probability candidates: Sam A Aluminum, Dentium, and Dongwon Industries.
  • Three constituents will likely leave as they rank at the bottom in descending order of full market cap among those failing the screening: Cuckoo Homesys, Zinus, and Hyundai Home Shopping.
  • Dongwon Industries seems to be the most attractive, but given the uncertainty surrounding its inclusion, it may be more appropriate to target Dentium.

StubWorld: Swire Drifts Lower As Cathay Faces Discrimination Claim

By David Blennerhassett

  • A double dose of StubWorld this week. Swire Pacific (A) (19 HK)‘s P/B is back down to 0.31x as Cathay Pacific (293 HK) tackles alleged language bias by flight attendants.
  • Preceding my comments on Japan Post 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%.

EQD | Asian Derivative YTD Range Trade Ideas

By Leon Gross

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May 26
0

Daily Brief Equity Bottom-Up: Nvidia Results Blow-Out: Multi-Year Growth Ahead; Wiwynn in Taiwan and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Nvidia Results Blow-Out: Multi-Year Growth Ahead; Wiwynn in Taiwan, Plus a Smallcap Wildcard AI Play
  • FUJIFILM (4901.T) Loving The Setup Here
  • Berli Jucker (BJC TB) – The Big C Factor
  • Meituan (3690 HK): 1Q23, Real Operating Profit Turned Positive After Nine Quarters
  • India Industrials | Quarterly Update – ABB, SIEM, HAVELLS, POLYCAB
  • [XPeng Inc. (XPEV US, BUY, TP US$10) TP Change]: BUY on Recovery Starting from 2Q23
  • [Vipshop (VIPS US) Earnings Review]: Demand for Apparel Rising on Increased Social Activity
  • [Xiaomi (1810 HK, SELL, TP HK$8.2) Earnings Review]: Good Cost Control Could Be Transitory
  • Frontier Management Inc. (7038 JP) – 1Q Follow-Up
  • [Futu Holdings (FUTU US, BUY, TP US$51) Review]: A Resilient Quarter Under Regulatory Pressure

Nvidia Results Blow-Out: Multi-Year Growth Ahead; Wiwynn in Taiwan, Plus a Smallcap Wildcard AI Play

By Vincent Fernando, CFA

  • Nvidia’s results and guidance sparked a massive rally in the shares, marking one of the largest single-day increases in market cap in U.S. stock market history.
  • The company sees a multi-year growth cycle of data center upgrades ahead. Key supply chain partners TSMC and ASML are rising as well.
  • Wiwynn in Taiwan should be a key winner. We also highlight a potential wildcard smallcap AI play that we will investigate further.

FUJIFILM (4901.T) Loving The Setup Here

By William Keating

  • Q1’23 revenues of ¥764 billion, up 15% YoY and 2.6% QoQ
  • FY2022, revenues grew by 13.2% to ¥2,859 while net income grew by 3.9% to ¥219.4.
  • Electronic Materials set to grow from ¥180 billion in ’22 to ¥500 billion by ’30

Berli Jucker (BJC TB) – The Big C Factor

By Angus Mackintosh

  • Berli Jucker‘s 1Q2023 results were driven by growth across its segments from modern retail to packaging to the consumer, and healthcare & Technical, with margin improvements at the same time. 
  • The key near-term catalyst for Berli Jucker will be the IPO of Big C Retail, which will provide a separate market valuation for its retail assets. 
  • Berli Jucker is a beneficiary of the resurgence of tourism in Thailand through both its retail and packaging businesses plus it benefits from lower commodity prices across its other divisions. 

Meituan (3690 HK): 1Q23, Real Operating Profit Turned Positive After Nine Quarters

By Ming Lu

  • In 1Q23, total revenues grew by 27% YoY with all business lines up by more than 10% YoY.
  • The real operating profits turned positive after nine quarters’ losses.
  • We believe the stock has an upside of 35% for yearend 2023. Buy.

India Industrials | Quarterly Update – ABB, SIEM, HAVELLS, POLYCAB

By Pranav Bhavsar

[XPeng Inc. (XPEV US, BUY, TP US$10) TP Change]: BUY on Recovery Starting from 2Q23

By Shawn Yang

  • XPeng reported soft 1Q23 results, with topline of RMB 4.03bn, missing cons by (4.4%); GPM of 1.7% missing cons. and our est. by (4.5ppt)/(4.8ppt. 
  • The 2Q23 guidance implies a QoQ recovery of 15.2%-20.7%, thanks to increasing order intake of the all-new P7i and recent channel transformation. 
  • We maintain BUY. We cut TP to US$ 10 due to pressure amid intensified competition.

[Vipshop (VIPS US) Earnings Review]: Demand for Apparel Rising on Increased Social Activity

By Shawn Yang

  • VIPS reported C1Q23 top-line, GAAP operating profit, and non-GAAP net income 6.6%, 27%, and 31% vs. our est., and 5.6%, 20%, and 36% vs. cons.; 
  • We expect VIPS profitability to remain steady given its relative immunity to competitor price competition, mainly due to its high apparel exposure, high member loyalty, and differentiated product sourcing strategy; 
  • Given improving apparel demand and EPADS on share buy-backs, we maintain BUY and US$ 16.3 TP, implying 8.1x 2023 non-GAAP P/E.  

[Xiaomi (1810 HK, SELL, TP HK$8.2) Earnings Review]: Good Cost Control Could Be Transitory

By Shawn Yang

  • Xiaomi reported C1Q23 top-line and non-IFRS net income (6.9%) and 20.7% vs. our est., and in-line and 39.9% vs. consensus; 
  • We suggest that higher margins are transitory, as (1) key IC component prices may have bottomed, (2) EV spend is likely to ramp up further. 
  • We maintain SELL and HK$ 8.2 TP, implying 26x FY23 PE.

Frontier Management Inc. (7038 JP) – 1Q Follow-Up

By Sessa Investment Research

  • 1Q operating profit rose 18%, on a 19% rise in sales. Net profit rose 10%.
  • According to the company’s data, the pace of increase in orders has been increasing since around the last week of 1Q, indicating a potential for stronger results in this FY.
  • Management Consulting business sales rose 14%.

[Futu Holdings (FUTU US, BUY, TP US$51) Review]: A Resilient Quarter Under Regulatory Pressure

By Shawn Yang

  • Futu reported 1Q23 revenue 12.7%/14.8% higher than our est./cons., non-GAAP NI 21.2%/19.5% higher than our est./cons., mainly due to strong margin financing and security lending activities during volatile market; 
  • Futu’s operation and client trading behaviours remain steady in 1Q23 after the implement of rectification measures from regulators. 
  • On the other side, overseas expansion in Japan and Malaysia may start to kick-off in 2H23; We maintain BUY rating on FUTU and maintain TP at US$51.  

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