All Posts By

Smartkarma Daily Briefs

Apr 27
0

Daily Brief Thailand: Thai Life Insurance and more

By | Daily Briefs, Thailand

In today’s briefing:

  • Quiddity Leaderboard for SET50 Jun 23: TLI Vs BLA Pair Trade Seems Interesting

Quiddity Leaderboard for SET50 Jun 23: TLI Vs BLA Pair Trade Seems Interesting

By Janaghan Jeyakumar, CFA

  • In this insight, we take a look at the potential ADDs/DELs for Thailand’s SET50 index rebalance in June 2023.
  • I currently see 2 ADDs and 2 DELs but the next-in-line names are lurking close to the border.
  • Thai Life Insurance (TLI TB) is one of these potential ADDs and there might be an interesting pair trade against Bangkok Life Assurance (BLA TB) for the next few weeks. 

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Apr 27
0

Daily Brief Australia: Blackmores Ltd, Codan, Schrole Group Ltd, Amaero International Ltd and more

By | Australia, Daily Briefs

In today’s briefing:

  • Blackmores (BKL AU) Signs SID with Kirin Holdings (2503 JP)
  • Codan (CDA AU): Balancing Defence And Accelerated Preparedness
  • Schrole Group Ltd – Strong Growth in Q1 Cash Receipts in a Usually Quiet Quarter
  • Amaero International Ltd – No Surprises in Q3 Result, Focus on the UAE Greenlight

Blackmores (BKL AU) Signs SID with Kirin Holdings (2503 JP)

By Brian Freitas

  • Blackmores Ltd (BKL AU) has signed a Scheme Implementation Deed with Kirin Holdings (2503 JP) for the acquisition of 100% of Blackmores by way of a scheme of arrangement.
  • The A$95/share offer is a 23.7% premium to the last close and is at least a 20% premium to most other VWAPs.
  • Blackmores Ltd (BKL AU) intends to pay a fully-franked special dividend of A$3.34/share. This will enable eligible shareholders to benefit from franking credits of A$1.43/share.

Codan (CDA AU): Balancing Defence And Accelerated Preparedness

By David Blennerhassett

  • The highly-anticipated Defence Strategic Review, released on the 24 April, clarifies the five key missions for the Australian Defence Force: maritime, land, air, space, and cyber.
  • One takeaway recommended Defence balance the need for local content against its timely acquisition, suggesting increased off-the-shelf acquisitions. This may favour overseas contractors in place of the domestic industry.
  • Codan (CDA AU), whose metal detectors and communications technology are used by the military, is one SME whose procurement speed may be scrutinised. 

Schrole Group Ltd – Strong Growth in Q1 Cash Receipts in a Usually Quiet Quarter

By Research as a Service (RaaS)

  • Schrole Group Ltd (ASX:SCL) is an Australian software company focused on providing human resource technology solutions to the international education and training sector.
  • Schrole has developed a suite of five HR Software-as-a-Service (SaaS) offerings including the core product, Schrole Connect, a SaaS-based staff recruitment platform.
  • Schrole Group has reported a 23% increase in quarter-on- quarter cash receipts to $1.29m and a narrowed operating cash loss of $0.37m, in what Is a seasonally quiet quarter for the company. 

Amaero International Ltd – No Surprises in Q3 Result, Focus on the UAE Greenlight

By Research as a Service (RaaS)

  • Amaero International Ltd (ASX:3DA) is a global specialist in metal additive manufacturing for the defence, aerospace, and other industrial sectors.
  • The company has reported a Q3 operating cash loss of $3.33m which was in line with our expectations.
  • The cash balance at the end of Q3 was $9.8m with an additional $2.05m in non-recurring cash payments has been received since the end of the quarter. 

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Apr 27
0

Daily Brief India: HDFC Limited, Tata Motors Ltd and more

By | Daily Briefs, India

In today’s briefing:

  • HDFC/​​​​HDFC Bank Mega Merger: Index Implications as We Near Completion
  • Morning Views Asia: Country Garden Holdings Co, Tata Motors ADR, Xiaomi Corp

HDFC/​​​​HDFC Bank Mega Merger: Index Implications as We Near Completion

By Brian Freitas

  • Foreign shareholding has dropped in HDFC Limited and increased in HDFC Bank – the net effect is an increase in foreign room to just north of 18%.
  • The merger is expected to complete in Q2/Q3 when there will be buying from MSCI trackers. There will be adhoc inclusions to the NIFTY, Nifty Next 50 and SENSEX indices.
  • HDFC Limited (HDFC IN) trades 1.39% below the merger ratio with HDFC Bank (HDFCB IN) and also at a lower price to book.

Morning Views Asia: Country Garden Holdings Co, Tata Motors ADR, Xiaomi Corp

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.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Apr 27
0

Daily Brief United States: Kenvue, Activision Blizzard, Assertio Holdings, ACM Research, Elastic NV, Fleetcor Technologies, M & T Bank Corp, Nutanix Inc, Teleflex Inc, AppLovin Corp and more

By | Daily Briefs, United States

In today’s briefing:

  • Kenvue (KVUE US) Pre-IPO: Marquee Brands to Drive Profitable Growth
  • Activision Blizzard – An Unsightly Mess
  • ASRT: Rolling with Spectrum
  • [ACM Research Inc. (ACMR US, BUY, TP US$30) Earnings Preview]: Tool Monopoly for Next YMTC Expansion
  • Elastic N.V.: Revolutionizing Data Organization and Management – Key Drivers
  • FLEETCOR Technologies Inc.: A Hidden Gem In Payment Solutions? – Key Drivers
  • M&T Bank Corporation: Initiation of Coverage – Playing The Rate Hike Well And Creating An Investor Safe Haven – Key Drivers
  • Nutanix Inc: The Next Amazon Of Hybrid Multi-Cloud Computing? – Key Drivers
  • Teleflex Incorporated: Revolutionizing Gastric Sleeve Surgery with the Titan Stapler – Key Drivers
  • AppLovin Corporation: Is AXON 2 The New Secret Weapon For Growth? – Key Drivers

Kenvue (KVUE US) Pre-IPO: Marquee Brands to Drive Profitable Growth

By Tina Banerjee

  • Kenvue (KVUE US), a wholly owned subsidiary of Johnson & Johnson (JNJ US), is preparing for an IPO of 151M shares. The IPO price is expected to be $20–23/share.  
  • Goldman Sachs, J.P. Morgan, and BofA Securities are acting as joint lead bookrunning managers for the IPO. J&J will still own more than 90% of Kenvue’s shares after the IPO.
  • In 1Q23, Kenvue’s revenue increased 7% YoY to $3.9B, driven by a 12% YoY revenue growth in self-care OTC products. Adjusted net income increased 3% YoY to $630M.

Activision Blizzard – An Unsightly Mess

By Mio Kato

  • Last night the CMA chose to block the merger between Microsoft and Activision Blizzard in the UK on the grounds that it would harm competition in cloud gaming. 
  • The merits of that position are highly debatable in our view but that does not mean that the decision is bad for consumers. 
  • It also does not mean that the decision is bad for Microsoft in our view.

ASRT: Rolling with Spectrum

By Hamed Khorsand

  • ASRT is purchasing Spectrum Pharmaceuticals (SPPI) in an all-stock transaction that adds ROLVEDON to its product portfolio.
  • The initial reaction to the deal has been materially negative after ASRT added it would maintain a majority of SPPI’s operating expenses.
  • ASRT’s management has been looking for an asset that would help diversify the revenue stream away from Indocin. The purchase of SPPI achieves such a goal

[ACM Research Inc. (ACMR US, BUY, TP US$30) Earnings Preview]: Tool Monopoly for Next YMTC Expansion

By Shawn Yang

  • We expect ACMR to report C1Q23 top-line and IFRS net income 2.8% and 83% vs. consensus, respectively. 
  • We expect it to raise FY the mid-point of its guidance to US$560mn~, due to YMTC orders and 4Q23 order visibility; 
  • We are buyers into earnings but avoid long-positions between reporting dates due to geopolitical risk exposure.

Elastic N.V.: Revolutionizing Data Organization and Management – Key Drivers

By Baptista Research

  • Elastic NV has managed to deliver another all-around beat in its last result and increased its revenue by 27% in the last quarter.
  • Though there have been challenges and obstacles in the macro environment recently, such as problems regarding the supply chain, Elastic has maintained its growth trajectory.
  • We also have a dedicated analysis of the company’s Environmental, Social, and Governance (ESG) risk scores in order to evaluate the sustainability risk.

FLEETCOR Technologies Inc.: A Hidden Gem In Payment Solutions? – Key Drivers

By Baptista Research

  • Fleetcor Technologies’ Q4 results were stronger than anticipated, surpassing Wall Street expectations in terms of revenues as well as earnings and also surpassing the upper limit of the management’s guidance in terms of revenues.
  • The company’s organic revenue increase was 7%.
  • Its total sales increased by 19%, retention remained constant at 92%, and same-store results were up 2% for the quarter.

M&T Bank Corporation: Initiation of Coverage – Playing The Rate Hike Well And Creating An Investor Safe Haven – Key Drivers

By Baptista Research

  • This is our first report on a regional lender that played the rate hike well with its high-quality deposit base – M&T Bank Corporation.
  • Their interest-bearing bank deposits decreased from $41.9 billion to under $25 billion due to their repositioning the balance sheet to use surplus cash.
  • We initiate coverage on the stock of M&T Bank Corporation with a ‘Buy’ rating.

Nutanix Inc: The Next Amazon Of Hybrid Multi-Cloud Computing? – Key Drivers

By Baptista Research

  • Nutanix delivered a strong first quarter with an all-around beat.
  • The company’s renewals continue to be strong, exceeding its projected metrics.
  • Nutanix managed to deliver a successful quarter with efficient growth in the number of customers as well as in revenue and ACV billings.

Teleflex Incorporated: Revolutionizing Gastric Sleeve Surgery with the Titan Stapler – Key Drivers

By Baptista Research

  • Teleflex had a mixed quarter with revenues of $758 million that was below Wall Street expectations given a year-over-year fall of 0.5%.
  • Despite an unanticipated subcomponent supply chain issue in their Surgical business, their fourth quarter constant currency revenue growth remained steady.
  • Teleflex’s Interventional, Surgical, and OEM product categories produced double-digit constant currency year-over-year revenue increase.

AppLovin Corporation: Is AXON 2 The New Secret Weapon For Growth? – Key Drivers

By Baptista Research

  • AppLovin Corporation had a disappointing quarter as it delivered significantly wider-than-expected losses and a negative bottom-line even though its revenues were above Wall Street expectations.
  • Its results in the quarter included the performance of the software platform, which increased 24% year over year.
  • For the first quarter of the upcoming year, they anticipate total revenue and EBITDA to be roughly flat compared to the fourth quarter which implies another possible loss-making quarter.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Apr 27
0

Daily Brief China: Samsonite, ZJLD Group, AVIC (Chengdu) UAS Co Ltd, JD Industrials, Beijing Kingsoft Office Software-A, Horizon Construction Development, Tata Motors Ltd, Bilibili Inc and more

By | China, Daily Briefs

In today’s briefing:

  • HSI Market Consultation: Foreign Companies, Industry Groups, HK Companies
  • ZJLD Group IPO Trading – Subscription Rates Better than Recent Large HK Deals
  • ZJLD Group IPO: Trading Debut
  • STAR50 Index Rebalance Preview: Changes Depend on Minimum Listing History
  • JD Industrials Pre-IPO – The Negatives – Hasn’t Provided a Whole Lot of Details
  • SSE50 Index Rebalance Preview: Five Changes Coming Up in June
  • Horizon Construction Development IPO: The Bear Case
  • Morning Views Asia: Country Garden Holdings Co, Tata Motors ADR, Xiaomi Corp
  • Horizon Construction Dev Pre-IPO – Refiled PHIP Updates – Affected by COVID-19 & Fueled by More Debt
  • [Bilibili Inc. (BILI US, SELL, TP US$15.4)]: Long-Term Challenge Exists Amid Short-Term Catalysts

HSI Market Consultation: Foreign Companies, Industry Groups, HK Companies

By Brian Freitas

  • Hang Seng Indexes has started a consultation on the eligibility of Foreign Companies in the Hang Seng Index, a review of the seven Industry Groups and number of HK constituents.
  • We agree that foreign companies should be added to the index, no change needed to the Industry Groups, and the cap on the number of HK constituents should be removed.
  • There are a few potential adds due to the removal of the cap on HK companies, while there are potential foreign company additions later this year or in 2024.

ZJLD Group IPO Trading – Subscription Rates Better than Recent Large HK Deals

By Clarence Chu

  • ZJLD Group (ZJLD HK) raised around US$676m in its Hong Kong IPO.
  • ZJLD Group (ZJLD) is a Chinese liquor company primarily producing baijiu.
  • In this note, we will talk about the trading dynamics and valuation.

ZJLD Group IPO: Trading Debut

By Arun George

STAR50 Index Rebalance Preview: Changes Depend on Minimum Listing History

By Brian Freitas

  • The review period for the June rebalance ends 28 April. We expect the changes to be announced 26 May with the implementation taking place after the close on 9 June.
  • Using a 12-month minimum listing history results in no index changes. Using a 6-month minimum listing history results in two changes – we think this is what will be used.
  • The potential adds have outperformed the potential deletes but both sets of stocks have underperformed the SSE STAR50 (STAR50 INDEX) and the CSI Smallcap 500 Index – Shanghai (SH000905 INDEX). 

JD Industrials Pre-IPO – The Negatives – Hasn’t Provided a Whole Lot of Details

By Sumeet Singh

  • JD Industrials is looking to raise about US$1bn in its upcoming HK IPO. 
  • JD Industrials (JDI) is a leading industrial supply chain technology and service provider in China in terms of GMV in each year during the Track Record Period, according to CIC.
  • In this note, we talk about the not-so-positive aspects of the deal.

SSE50 Index Rebalance Preview: Five Changes Coming Up in June

By Brian Freitas

  • With 2 trading days left in the review period, we see 7 potential adds/5 potential deletes in June. However, there can be a maximum of 5 changes at a rebalance.
  • We estimate one-way turnover of 5.58% at the June rebalance leading to a one-way trade of CNY 4.22bn. Index arb balances could increase the impact on the stocks.
  • The potential adds have outperformed the potential deletes over the last couple of months and have underperformed over the last week.

Horizon Construction Development IPO: The Bear Case

By Arun George

Morning Views Asia: Country Garden Holdings Co, Tata Motors ADR, Xiaomi Corp

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.

Horizon Construction Dev Pre-IPO – Refiled PHIP Updates – Affected by COVID-19 & Fueled by More Debt

By Ethan Aw

  • Horizon Construction Development (1887128D HK) is looking to raise US$250m in its upcoming Hong Kong IPO.
  • HCD is an equipment operation service provider in China. It provides services covering the full cycle of projects.
  • In our previous note, we looked at the company’s past performance. In this note, we take a look at the company’s refiled PHIP updates.

[Bilibili Inc. (BILI US, SELL, TP US$15.4)]: Long-Term Challenge Exists Amid Short-Term Catalysts

By Shawn Yang

  • We estimate that BILI’s 1Q23 rev./adj. net income are 3%/11% vs cons. 
  • We raise gaming/ads revenue starting from 2Q23 because of 1) an increasing number of newly approved games; and 2) increasing possibilities that pre-roll ads could be launched. 
  • Yet, we still maintain SELL rating and TP unchanged because of concerns about its content ecosystem. Our TP implies 1.7X PS in 2023.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Apr 27
0

Daily Brief Japan: Tokyo Gas, Skylark Co Ltd, Isetan Mitsukoshi Holdings Ltd, Softbank Group, CyberAgent Inc and more

By | Daily Briefs, Japan

In today’s briefing:

  • Tokyo Gas (9531 JP) Mega Buyback Announced
  • Skylark Holdings: A Big Upgrade to Guidance Could Be on The Horizon
  • Isetan-Mitsukoshi: ¥300 Billion from Just One Store
  • SoftBank Group (9884 JP) – Revolut’s Impending Valuation Write-Down?
  • CyberAgent: Growth Avenues Seem Limited and Further Downside to Consensus

Tokyo Gas (9531 JP) Mega Buyback Announced

By Travis Lundy

  • Five days ago, Tokyo Gas (9531 JP) announced a revision to earnings for the year to 31 March 2023. Today they reported results, and announced March 2024 guidance.
  • The company also announced a buyback programme to spend up to ¥113 billion to repurchase up to 53mm shares (12.2% of TSO). ¥113 billion is a very specific number. 
  • With the price where it is, ¥113bn is “only” 9.6% of shares out but this is very interesting indeed.

Skylark Holdings: A Big Upgrade to Guidance Could Be on The Horizon

By Oshadhi Kumarasiri

  • The removal of COVID-19 testing requirements for Chinese tourists is expected to increase tourist arrivals from the Greater China region.
  • In addition, consensus estimates for Skylark Co Ltd (3197 JP) are increasing due to the company’s faster-than-expected same-store sales recovery.
  • Skylark’s annual operating profit could reach ¥20bn if revenues return to pre-COVID levels, which is significantly higher than consensus of ¥5.2bn and guidance of ¥6.0bn.

Isetan-Mitsukoshi: ¥300 Billion from Just One Store

By Michael Causton

  • Isetan Shinjuku has always outperformed competitors by a large distance but the store’s management is intent on widening this gap further. 
  • The key will be a focus on premium customers with ever more granular data sets to personalise marketing. 68% of sales now come from cardholders, compared to 50% in 2018.
  • While dependence on just a few stores makes Isetan Mitsukoshi Holdings Ltd (3099 JP) vulnerable to downturns – such as the loss of tourist traffic – these stores are also resilient.

SoftBank Group (9884 JP) – Revolut’s Impending Valuation Write-Down?

By Victor Galliano

  • We have already questioned SoftBank’s private company valuation marks; a Schroders trust recently announced a 46% valuation cut in its Revolut investment, acquired at the July 2021 funding round
  • SVF2 acquired 5% of Revolut, also in July 2021; third party valuation providers indicate that the Revolut USD valuation has fallen by at least 50% in 2022
  • July 2021 was Revolut’s most recent funding round, implying that Softbank may yet need to mark down its valuation; this could also apply to the funds’ other private companies

CyberAgent: Growth Avenues Seem Limited and Further Downside to Consensus

By Shifara Samsudeen, ACMA, CGMA

  • CA reported 2QFY09/2023 results today. Revenue increased 2.4% YoY to ¥195.6bn (vs consensus ¥191.0bn) while operating profit declined 27.0% YoY to ¥18.8bn (vs consensus ¥18.0bn).
  • The viewership for AbemaTV has fallen back to pre-FIFA levels and revenue growth from AbemaTV has been on a declining trend.
  • CA didn’t release any gaming titles despite mentioning about 3 for 2022. The company has mentioned about 2 titles for FY09/2023 and the segment seems struggling with producing hit titles.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Apr 27
0

Daily Brief TMT/Internet: Activision Blizzard, Beijing Kingsoft Office Software-A, Codan, Softbank Group, ACM Research, Schrole Group Ltd, AppLovin Corp, Elastic NV, Bilibili Inc, Nutanix Inc and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Activision Blizzard – An Unsightly Mess
  • SSE50 Index Rebalance Preview: Five Changes Coming Up in June
  • Codan (CDA AU): Balancing Defence And Accelerated Preparedness
  • SoftBank Group (9884 JP) – Revolut’s Impending Valuation Write-Down?
  • [ACM Research Inc. (ACMR US, BUY, TP US$30) Earnings Preview]: Tool Monopoly for Next YMTC Expansion
  • Schrole Group Ltd – Strong Growth in Q1 Cash Receipts in a Usually Quiet Quarter
  • AppLovin Corporation: Is AXON 2 The New Secret Weapon For Growth? – Key Drivers
  • Elastic N.V.: Revolutionizing Data Organization and Management – Key Drivers
  • [Bilibili Inc. (BILI US, SELL, TP US$15.4)]: Long-Term Challenge Exists Amid Short-Term Catalysts
  • Nutanix Inc: The Next Amazon Of Hybrid Multi-Cloud Computing? – Key Drivers

Activision Blizzard – An Unsightly Mess

By Mio Kato

  • Last night the CMA chose to block the merger between Microsoft and Activision Blizzard in the UK on the grounds that it would harm competition in cloud gaming. 
  • The merits of that position are highly debatable in our view but that does not mean that the decision is bad for consumers. 
  • It also does not mean that the decision is bad for Microsoft in our view.

SSE50 Index Rebalance Preview: Five Changes Coming Up in June

By Brian Freitas

  • With 2 trading days left in the review period, we see 7 potential adds/5 potential deletes in June. However, there can be a maximum of 5 changes at a rebalance.
  • We estimate one-way turnover of 5.58% at the June rebalance leading to a one-way trade of CNY 4.22bn. Index arb balances could increase the impact on the stocks.
  • The potential adds have outperformed the potential deletes over the last couple of months and have underperformed over the last week.

Codan (CDA AU): Balancing Defence And Accelerated Preparedness

By David Blennerhassett

  • The highly-anticipated Defence Strategic Review, released on the 24 April, clarifies the five key missions for the Australian Defence Force: maritime, land, air, space, and cyber.
  • One takeaway recommended Defence balance the need for local content against its timely acquisition, suggesting increased off-the-shelf acquisitions. This may favour overseas contractors in place of the domestic industry.
  • Codan (CDA AU), whose metal detectors and communications technology are used by the military, is one SME whose procurement speed may be scrutinised. 

SoftBank Group (9884 JP) – Revolut’s Impending Valuation Write-Down?

By Victor Galliano

  • We have already questioned SoftBank’s private company valuation marks; a Schroders trust recently announced a 46% valuation cut in its Revolut investment, acquired at the July 2021 funding round
  • SVF2 acquired 5% of Revolut, also in July 2021; third party valuation providers indicate that the Revolut USD valuation has fallen by at least 50% in 2022
  • July 2021 was Revolut’s most recent funding round, implying that Softbank may yet need to mark down its valuation; this could also apply to the funds’ other private companies

[ACM Research Inc. (ACMR US, BUY, TP US$30) Earnings Preview]: Tool Monopoly for Next YMTC Expansion

By Shawn Yang

  • We expect ACMR to report C1Q23 top-line and IFRS net income 2.8% and 83% vs. consensus, respectively. 
  • We expect it to raise FY the mid-point of its guidance to US$560mn~, due to YMTC orders and 4Q23 order visibility; 
  • We are buyers into earnings but avoid long-positions between reporting dates due to geopolitical risk exposure.

Schrole Group Ltd – Strong Growth in Q1 Cash Receipts in a Usually Quiet Quarter

By Research as a Service (RaaS)

  • Schrole Group Ltd (ASX:SCL) is an Australian software company focused on providing human resource technology solutions to the international education and training sector.
  • Schrole has developed a suite of five HR Software-as-a-Service (SaaS) offerings including the core product, Schrole Connect, a SaaS-based staff recruitment platform.
  • Schrole Group has reported a 23% increase in quarter-on- quarter cash receipts to $1.29m and a narrowed operating cash loss of $0.37m, in what Is a seasonally quiet quarter for the company. 

AppLovin Corporation: Is AXON 2 The New Secret Weapon For Growth? – Key Drivers

By Baptista Research

  • AppLovin Corporation had a disappointing quarter as it delivered significantly wider-than-expected losses and a negative bottom-line even though its revenues were above Wall Street expectations.
  • Its results in the quarter included the performance of the software platform, which increased 24% year over year.
  • For the first quarter of the upcoming year, they anticipate total revenue and EBITDA to be roughly flat compared to the fourth quarter which implies another possible loss-making quarter.

Elastic N.V.: Revolutionizing Data Organization and Management – Key Drivers

By Baptista Research

  • Elastic NV has managed to deliver another all-around beat in its last result and increased its revenue by 27% in the last quarter.
  • Though there have been challenges and obstacles in the macro environment recently, such as problems regarding the supply chain, Elastic has maintained its growth trajectory.
  • We also have a dedicated analysis of the company’s Environmental, Social, and Governance (ESG) risk scores in order to evaluate the sustainability risk.

[Bilibili Inc. (BILI US, SELL, TP US$15.4)]: Long-Term Challenge Exists Amid Short-Term Catalysts

By Shawn Yang

  • We estimate that BILI’s 1Q23 rev./adj. net income are 3%/11% vs cons. 
  • We raise gaming/ads revenue starting from 2Q23 because of 1) an increasing number of newly approved games; and 2) increasing possibilities that pre-roll ads could be launched. 
  • Yet, we still maintain SELL rating and TP unchanged because of concerns about its content ecosystem. Our TP implies 1.7X PS in 2023.

Nutanix Inc: The Next Amazon Of Hybrid Multi-Cloud Computing? – Key Drivers

By Baptista Research

  • Nutanix delivered a strong first quarter with an all-around beat.
  • The company’s renewals continue to be strong, exceeding its projected metrics.
  • Nutanix managed to deliver a successful quarter with efficient growth in the number of customers as well as in revenue and ACV billings.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Apr 27
0

Daily Brief Consumer: Samsonite, ZJLD Group, Skylark Co Ltd, Blackmores Ltd, Hyundai Motor, Isetan Mitsukoshi Holdings Ltd, CyberAgent Inc, Shakey’s Pizza, Tata Motors Ltd and more

By | Consumer, Daily Briefs

In today’s briefing:

  • HSI Market Consultation: Foreign Companies, Industry Groups, HK Companies
  • ZJLD Group IPO Trading – Subscription Rates Better than Recent Large HK Deals
  • ZJLD Group IPO: Trading Debut
  • Skylark Holdings: A Big Upgrade to Guidance Could Be on The Horizon
  • Blackmores (BKL AU) Signs SID with Kirin Holdings (2503 JP)
  • Hyundai Motor: Highest Operating Profit Among All Korean Companies in 2023
  • Isetan-Mitsukoshi: ¥300 Billion from Just One Store
  • CyberAgent: Growth Avenues Seem Limited and Further Downside to Consensus
  • Shakeys Pizza: Q4 2022 Concall Guides For Teens CAGR Revenue Growth, Margins Flat
  • Morning Views Asia: Country Garden Holdings Co, Tata Motors ADR, Xiaomi Corp

HSI Market Consultation: Foreign Companies, Industry Groups, HK Companies

By Brian Freitas

  • Hang Seng Indexes has started a consultation on the eligibility of Foreign Companies in the Hang Seng Index, a review of the seven Industry Groups and number of HK constituents.
  • We agree that foreign companies should be added to the index, no change needed to the Industry Groups, and the cap on the number of HK constituents should be removed.
  • There are a few potential adds due to the removal of the cap on HK companies, while there are potential foreign company additions later this year or in 2024.

ZJLD Group IPO Trading – Subscription Rates Better than Recent Large HK Deals

By Clarence Chu

  • ZJLD Group (ZJLD HK) raised around US$676m in its Hong Kong IPO.
  • ZJLD Group (ZJLD) is a Chinese liquor company primarily producing baijiu.
  • In this note, we will talk about the trading dynamics and valuation.

ZJLD Group IPO: Trading Debut

By Arun George

Skylark Holdings: A Big Upgrade to Guidance Could Be on The Horizon

By Oshadhi Kumarasiri

  • The removal of COVID-19 testing requirements for Chinese tourists is expected to increase tourist arrivals from the Greater China region.
  • In addition, consensus estimates for Skylark Co Ltd (3197 JP) are increasing due to the company’s faster-than-expected same-store sales recovery.
  • Skylark’s annual operating profit could reach ¥20bn if revenues return to pre-COVID levels, which is significantly higher than consensus of ¥5.2bn and guidance of ¥6.0bn.

Blackmores (BKL AU) Signs SID with Kirin Holdings (2503 JP)

By Brian Freitas

  • Blackmores Ltd (BKL AU) has signed a Scheme Implementation Deed with Kirin Holdings (2503 JP) for the acquisition of 100% of Blackmores by way of a scheme of arrangement.
  • The A$95/share offer is a 23.7% premium to the last close and is at least a 20% premium to most other VWAPs.
  • Blackmores Ltd (BKL AU) intends to pay a fully-franked special dividend of A$3.34/share. This will enable eligible shareholders to benefit from franking credits of A$1.43/share.

Hyundai Motor: Highest Operating Profit Among All Korean Companies in 2023

By Douglas Kim

  • We discuss the importance of Hyundai Motor generating nearly 11.5 trillion won in operating profit in 2023, which is likely to be the highest among all Korean companies. 
  • Hyundai Motor and Kia Corp combined are expected to generate operating profit of 20.7 trillion won in 2023, representing 57% of total operating profit of the top 10 Korean companies.
  • In 2023, Hyundai Motor plans a full-scale world-wide roll-out of its EV Ioniq 6. Furthermore, it set a dividend payout ratio at 25% or higher.

Isetan-Mitsukoshi: ¥300 Billion from Just One Store

By Michael Causton

  • Isetan Shinjuku has always outperformed competitors by a large distance but the store’s management is intent on widening this gap further. 
  • The key will be a focus on premium customers with ever more granular data sets to personalise marketing. 68% of sales now come from cardholders, compared to 50% in 2018.
  • While dependence on just a few stores makes Isetan Mitsukoshi Holdings Ltd (3099 JP) vulnerable to downturns – such as the loss of tourist traffic – these stores are also resilient.

CyberAgent: Growth Avenues Seem Limited and Further Downside to Consensus

By Shifara Samsudeen, ACMA, CGMA

  • CA reported 2QFY09/2023 results today. Revenue increased 2.4% YoY to ¥195.6bn (vs consensus ¥191.0bn) while operating profit declined 27.0% YoY to ¥18.8bn (vs consensus ¥18.0bn).
  • The viewership for AbemaTV has fallen back to pre-FIFA levels and revenue growth from AbemaTV has been on a declining trend.
  • CA didn’t release any gaming titles despite mentioning about 3 for 2022. The company has mentioned about 2 titles for FY09/2023 and the segment seems struggling with producing hit titles.

Shakeys Pizza: Q4 2022 Concall Guides For Teens CAGR Revenue Growth, Margins Flat

By Sameer Taneja

  • Shakey’s Pizza (PIZZA PM) came in higher than analysts on earnings for FY22, posting an 873 mn peso bottom line number (vs. a 728 mn peso Bloomberg consensus).   
  • Systemwide sales grew 101% YoY to 14.1 bn pesos, with 4.5 bn pesos in the last quarter, up 113% YoY. Excluding Potato Corner, growth for the year was 37% YoY.
  • Based on their guidance for FY23 of 20% growth on the topline/bottom line, the stock trades at 13.7x FY23e PE with future growth in the mid-teens CAGR. 

Morning Views Asia: Country Garden Holdings Co, Tata Motors ADR, Xiaomi Corp

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.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Apr 27
0

Daily Brief Utilities: Tokyo Gas, Seoul City Gas and more

By | Daily Briefs, Utilities Sector

In today’s briefing:

  • Tokyo Gas (9531 JP) Mega Buyback Announced
  • A Crash in 8 Korean Stocks Related to CFD Derivatives: Margin Call in Korea

Tokyo Gas (9531 JP) Mega Buyback Announced

By Travis Lundy

  • Five days ago, Tokyo Gas (9531 JP) announced a revision to earnings for the year to 31 March 2023. Today they reported results, and announced March 2024 guidance.
  • The company also announced a buyback programme to spend up to ¥113 billion to repurchase up to 53mm shares (12.2% of TSO). ¥113 billion is a very specific number. 
  • With the price where it is, ¥113bn is “only” 9.6% of shares out but this is very interesting indeed.

A Crash in 8 Korean Stocks Related to CFD Derivatives: Margin Call in Korea

By Douglas Kim

  • The biggest story in the Korean stock market in the past three days has been the crash in 8 stocks related to CFD derivatives.
  • As a result of the CFD related margin call selling, the following are the major impact on the 8 related stocks and the overall Korean stock market in our view.
  • They include a) overshooting on the downside on 8 related names, b) negative impact on the major rechargeable battery names, and c) negative impact on the overall Korean stock market. 

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Apr 27
0

Daily Brief ECM: ZJLD Group IPO Trading – Subscription Rates Better than Recent Large HK Deals and more

By | Daily Briefs, ECM

In today’s briefing:

  • ZJLD Group IPO Trading – Subscription Rates Better than Recent Large HK Deals
  • ZJLD Group IPO: Trading Debut
  • JD Industrials Pre-IPO – The Negatives – Hasn’t Provided a Whole Lot of Details
  • Kenvue (KVUE US) Pre-IPO: Marquee Brands to Drive Profitable Growth
  • Horizon Construction Development IPO: The Bear Case
  • AppLovin Corporation: Is AXON 2 The New Secret Weapon For Growth? – Key Drivers
  • M&T Bank Corporation: Initiation of Coverage – Playing The Rate Hike Well And Creating An Investor Safe Haven – Key Drivers
  • Nutanix Inc: The Next Amazon Of Hybrid Multi-Cloud Computing? – Key Drivers
  • Teleflex Incorporated: Revolutionizing Gastric Sleeve Surgery with the Titan Stapler – Key Drivers
  • FLEETCOR Technologies Inc.: A Hidden Gem In Payment Solutions? – Key Drivers

ZJLD Group IPO Trading – Subscription Rates Better than Recent Large HK Deals

By Clarence Chu

  • ZJLD Group (ZJLD HK) raised around US$676m in its Hong Kong IPO.
  • ZJLD Group (ZJLD) is a Chinese liquor company primarily producing baijiu.
  • In this note, we will talk about the trading dynamics and valuation.

ZJLD Group IPO: Trading Debut

By Arun George

JD Industrials Pre-IPO – The Negatives – Hasn’t Provided a Whole Lot of Details

By Sumeet Singh

  • JD Industrials is looking to raise about US$1bn in its upcoming HK IPO. 
  • JD Industrials (JDI) is a leading industrial supply chain technology and service provider in China in terms of GMV in each year during the Track Record Period, according to CIC.
  • In this note, we talk about the not-so-positive aspects of the deal.

Kenvue (KVUE US) Pre-IPO: Marquee Brands to Drive Profitable Growth

By Tina Banerjee

  • Kenvue (KVUE US), a wholly owned subsidiary of Johnson & Johnson (JNJ US), is preparing for an IPO of 151M shares. The IPO price is expected to be $20–23/share.  
  • Goldman Sachs, J.P. Morgan, and BofA Securities are acting as joint lead bookrunning managers for the IPO. J&J will still own more than 90% of Kenvue’s shares after the IPO.
  • In 1Q23, Kenvue’s revenue increased 7% YoY to $3.9B, driven by a 12% YoY revenue growth in self-care OTC products. Adjusted net income increased 3% YoY to $630M.

Horizon Construction Development IPO: The Bear Case

By Arun George

AppLovin Corporation: Is AXON 2 The New Secret Weapon For Growth? – Key Drivers

By Baptista Research

  • AppLovin Corporation had a disappointing quarter as it delivered significantly wider-than-expected losses and a negative bottom-line even though its revenues were above Wall Street expectations.
  • Its results in the quarter included the performance of the software platform, which increased 24% year over year.
  • For the first quarter of the upcoming year, they anticipate total revenue and EBITDA to be roughly flat compared to the fourth quarter which implies another possible loss-making quarter.

M&T Bank Corporation: Initiation of Coverage – Playing The Rate Hike Well And Creating An Investor Safe Haven – Key Drivers

By Baptista Research

  • This is our first report on a regional lender that played the rate hike well with its high-quality deposit base – M&T Bank Corporation.
  • Their interest-bearing bank deposits decreased from $41.9 billion to under $25 billion due to their repositioning the balance sheet to use surplus cash.
  • We initiate coverage on the stock of M&T Bank Corporation with a ‘Buy’ rating.

Nutanix Inc: The Next Amazon Of Hybrid Multi-Cloud Computing? – Key Drivers

By Baptista Research

  • Nutanix delivered a strong first quarter with an all-around beat.
  • The company’s renewals continue to be strong, exceeding its projected metrics.
  • Nutanix managed to deliver a successful quarter with efficient growth in the number of customers as well as in revenue and ACV billings.

Teleflex Incorporated: Revolutionizing Gastric Sleeve Surgery with the Titan Stapler – Key Drivers

By Baptista Research

  • Teleflex had a mixed quarter with revenues of $758 million that was below Wall Street expectations given a year-over-year fall of 0.5%.
  • Despite an unanticipated subcomponent supply chain issue in their Surgical business, their fourth quarter constant currency revenue growth remained steady.
  • Teleflex’s Interventional, Surgical, and OEM product categories produced double-digit constant currency year-over-year revenue increase.

FLEETCOR Technologies Inc.: A Hidden Gem In Payment Solutions? – Key Drivers

By Baptista Research

  • Fleetcor Technologies’ Q4 results were stronger than anticipated, surpassing Wall Street expectations in terms of revenues as well as earnings and also surpassing the upper limit of the management’s guidance in terms of revenues.
  • The company’s organic revenue increase was 7%.
  • Its total sales increased by 19%, retention remained constant at 92%, and same-store results were up 2% for the quarter.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free