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Smartkarma Daily Briefs

Apr 23
0

Daily Brief China: Hong Kong Hang Seng Index, Jiangnan, Pharmaron Beijing Co., Ltd. (A) and more

By | China, Daily Briefs

In today’s briefing:

  • EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades- Grinding to a Halt
  • Jiangnan Group (1366 HK): Scheme Vote on 15 May
  • China Healthcare Weekly (Apr.21) – A Brutal Reality, Benign Returns from China Biotech, Pharmaron

EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades- Grinding to a Halt

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

Jiangnan Group (1366 HK): Scheme Vote on 15 May

By Arun George

  • The Jiangnan (1366 HK) scheme document is out with the court meeting scheduled for 15 May. The IFA considers the HK$0.40 per share offer to be fair and reasonable. 
  • Key conditions include approval by at least 75% independent shareholders (<10% rejection). The shareholder with a blocking stake has provided an irrevocable on 22 March.
  • This is a done deal. At the last close and for the 31 May payment, the gross and annualised spread is 3.9% and 44.0%, respectively.

China Healthcare Weekly (Apr.21) – A Brutal Reality, Benign Returns from China Biotech, Pharmaron

By Xinyao (Criss) Wang

  • Pharmaceutical companies shouldn’t always emphasize being the first to enter the market, but focus on how to best enter the market and maintain a dominant position as long as possible.
  • It’s truly felt that the assets of China’s pharmaceutical companies are accelerating their global recognition. As their internationalization strategy becomes increasingly mature, investors are expected to obtain more benign returns.
  • For Pharmaron, financial profit decline was the main reason for profit drop.If deducting fair value change of biological assets, operating profit growth was negative. We remain conservative about its outlook.

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Apr 23
0

Daily Brief Australia: Woodside Energy Group Ltd and more

By | Australia, Daily Briefs

In today’s briefing:

  • Woodside Energy Group Ltd: Upside From BHP Assets & Pluto KGP Interconnector

Woodside Energy Group Ltd: Upside From BHP Assets & Pluto KGP Interconnector

By Baptista Research

  • Woodside Energy Group delivered a decent financial performance in 2022, driven by higher prices and adding former BHP assets to the portfolio and the Pluto KGP interconnector.
  • Besides that, Woodside Energy completed subsea tieback and enhancement initiatives across its Gulf of Mexico and West Australian LNG assets, keeping the plants occupied.
  • We give Woodside Energy Group Ltd. a ‘Buy’ rating with a revised target price.

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Apr 23
0

Daily Brief South Korea: LG Energy Solution and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Nationalization of Lithium Industry in Chile – Impact on Korean Rechargeable Batteries Value Chain

Nationalization of Lithium Industry in Chile – Impact on Korean Rechargeable Batteries Value Chain

By Douglas Kim

  • On 20 April, Chile’s government announced that it will be nationalizing the country’s lithium industry. Chile is the second largest producer of lithium in the world. 
  • The nationalization of the lithium industry in Chile will likely have a long-term negative impact on the rechargeable batteries related companies in Korea.
  • This is mainly due to greater challenges of getting access to lithium at more affordable prices. 

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Apr 23
0

Daily Brief United States: Blackline Inc, Intl Flavors & Fragrances, Royal Bank Of Canada, Broadridge Financial Solutions, Inc, Wells Fargo & Co and more

By | Daily Briefs, United States

In today’s briefing:

  • BlackLine Inc.: Major Drivers
  • International Flavors & Fragrances Inc.: Continued Growth In Nourish
  • Royal Bank of Canada: Initiation of Coverage – Canadian Banking Market Dynamics
  • Broadridge Financial Solutions Inc.: Recurring Sales
  • Wells Fargo & Co: Initiation of Coverage – Banking Crisis Impact & Recent Developments

BlackLine Inc.: Major Drivers

By Baptista Research

  • BlackLine completed a year of profitable expansion with strong financial results for the fourth quarter.
  • The company had total sales of $140 million in Q4 and managed an all-around beat, including a top-line growth of 21%.
  • Moreover, increased utilization was caused by a stronger-than-anticipated demand for professional services due to customers’ willingness to access the solutions’ embedded value.

International Flavors & Fragrances Inc.: Continued Growth In Nourish

By Baptista Research

  • International Flavors & Fragrances delivered a mixed set of results in the quarter.
  • Sales were up 4% on a comparable, currency-neutral basis for the quarter, with increases seen in almost all divisions.
  • Besides that, their scent division performed well, achieving a 6% year-over-year sales increase, driven by double-digit growth in fine fragrance and mid-single-digit growth in consumer fragrance.

Royal Bank of Canada: Initiation of Coverage – Canadian Banking Market Dynamics

By Baptista Research

  • This is our first report on the Royal Bank of Canada, one of the top 2 banks in the country.
  • This quarter’s performance included significant capital markets revenue, led by excellent Global Markets results, as well as market share improvements in Investment Banking and origination operations across the sector.
  • We initiate coverage on the stock of the Royal Bank of Canada with a ‘Buy’ rating.

Broadridge Financial Solutions Inc.: Recurring Sales

By Baptista Research

  • Broadridge delivered a mixed set of results in the quarter.
  • Recurring sales increased by 8% on a constant currency basis, and both segments experienced significant growth but overall revenues were below analyst expectations.
  • However, the top-line growth combined with strict expense control helped to boost adjusted EPS by 11% which resulted in an earnings beat.

Wells Fargo & Co: Initiation of Coverage – Banking Crisis Impact & Recent Developments

By Baptista Research

  • This is our first report on one of the American banking major, Wells Fargo.
  • The company performed well in the quarter despite operating losses and managed an all-around beat.
  • Increasing interest rates fueled a rapid rise in net interest income.

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Apr 23
0

Daily Brief India: HDFC Bank and more

By | Daily Briefs, India

In today’s briefing:

  • HDFC Bank: Steady Q4FY23 Results | Merger Update – RBI Concessions

HDFC Bank: Steady Q4FY23 Results | Merger Update – RBI Concessions

By Ankit Agrawal, CFA

  • HDFC Bank (HDFCB IN) reported a steady and broadly in-line-with-expected Q4FY23 earnings. In particular, its growth in deposits at 8.7% QoQ was commendable.
  • Advances also grew at a healthy pace of 6% QoQ. Retail advances grew 5% QoQ, while CRB (Commercial and Rural Banking) grew the most at 9.7% QoQ.
  • Aided by low credit costs, HDFCB continues to invest in expanding its geographical and digital distribution to deepen its penetration.

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Apr 23
0

Daily Brief Japan: Yamada Denki, Rakuten Bank , Arcland Service and more

By | Daily Briefs, Japan

In today’s briefing:

  • Last Week in Event SPACE: Yamada Denki, Genting, HKBN, Toyo Construction
  • ECM Weekly (23rd Apr 2023) – Rakuten Bank, Merdeka, ZJLD, Mankind, Lalatech, IMotion, Anta, KIT
  • (Mostly) Asia-Pac Weekly Risk Arb Wrap: Silk Laser, Arcland, Essential Metals, AAG, Lian Beng, Oishi

Last Week in Event SPACE: Yamada Denki, Genting, HKBN, Toyo Construction

By David Blennerhassett

  • Yamada Denki (9831 JP) lowering the March 2023 div to ¥12/share vs ¥18/share last year was just weird. And bodes badly. We need a lightbulb moment for a lightbulb dilemma.
  • Genting Bhd (GENT MK)‘s implied stub and simple ratio (GENT/ Genting Singapore (GENS SP)) are currently at muti-year trough levels. 
  • Buy Toyo Construction (1890 JP) <¥970. The proposed dividend could be in danger should YFO spill the board; but spilling the board to get better governance is a good thing. 

ECM Weekly (23rd Apr 2023) – Rakuten Bank, Merdeka, ZJLD, Mankind, Lalatech, IMotion, Anta, KIT

By Sumeet Singh

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Silk Laser, Arcland, Essential Metals, AAG, Lian Beng, Oishi

By David Blennerhassett

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Apr 23
0

Daily Brief Energy/Materials: Intl Flavors & Fragrances, Petroleo Brasileiro SA and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • International Flavors & Fragrances Inc.: Continued Growth In Nourish
  • Petróleo Brasileiro S.A. – Petrobras: Chartering of FPSO Vessels & Other Developments

International Flavors & Fragrances Inc.: Continued Growth In Nourish

By Baptista Research

  • International Flavors & Fragrances delivered a mixed set of results in the quarter.
  • Sales were up 4% on a comparable, currency-neutral basis for the quarter, with increases seen in almost all divisions.
  • Besides that, their scent division performed well, achieving a 6% year-over-year sales increase, driven by double-digit growth in fine fragrance and mid-single-digit growth in consumer fragrance.

Petróleo Brasileiro S.A. – Petrobras: Chartering of FPSO Vessels & Other Developments

By Baptista Research

  • Petróleo Brasileiro achieved strong in the quarter last quarter and managed an all-around beat.
  • By increasing the utilization rate of its refineries and introducing new products with renewable content, Petrobras continues to be competitive.
  • We give Petróleo Brasileiro S.A. – Petrobras a ‘Hold’ rating with a revised target price.

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Apr 23
0

Daily Brief Industrials: Hong Kong Hang Seng Index, Jiangnan, LG Energy Solution, Woodside Energy Group Ltd and more

By | Daily Briefs, Industrials

In today’s briefing:

  • EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades- Grinding to a Halt
  • Jiangnan Group (1366 HK): Scheme Vote on 15 May
  • Nationalization of Lithium Industry in Chile – Impact on Korean Rechargeable Batteries Value Chain
  • Woodside Energy Group Ltd: Upside From BHP Assets & Pluto KGP Interconnector

EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades- Grinding to a Halt

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

Jiangnan Group (1366 HK): Scheme Vote on 15 May

By Arun George

  • The Jiangnan (1366 HK) scheme document is out with the court meeting scheduled for 15 May. The IFA considers the HK$0.40 per share offer to be fair and reasonable. 
  • Key conditions include approval by at least 75% independent shareholders (<10% rejection). The shareholder with a blocking stake has provided an irrevocable on 22 March.
  • This is a done deal. At the last close and for the 31 May payment, the gross and annualised spread is 3.9% and 44.0%, respectively.

Nationalization of Lithium Industry in Chile – Impact on Korean Rechargeable Batteries Value Chain

By Douglas Kim

  • On 20 April, Chile’s government announced that it will be nationalizing the country’s lithium industry. Chile is the second largest producer of lithium in the world. 
  • The nationalization of the lithium industry in Chile will likely have a long-term negative impact on the rechargeable batteries related companies in Korea.
  • This is mainly due to greater challenges of getting access to lithium at more affordable prices. 

Woodside Energy Group Ltd: Upside From BHP Assets & Pluto KGP Interconnector

By Baptista Research

  • Woodside Energy Group delivered a decent financial performance in 2022, driven by higher prices and adding former BHP assets to the portfolio and the Pluto KGP interconnector.
  • Besides that, Woodside Energy completed subsea tieback and enhancement initiatives across its Gulf of Mexico and West Australian LNG assets, keeping the plants occupied.
  • We give Woodside Energy Group Ltd. a ‘Buy’ rating with a revised target price.

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  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
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Apr 23
0

Daily Brief Consumer: Yamada Denki, Las Vegas Sands, Ambev SA, Arcland Service and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Last Week in Event SPACE: Yamada Denki, Genting, HKBN, Toyo Construction
  • Las Vegas Sands: Starting a Run as Macau Recovery Gains Speed. Up 23% YTD.
  • Ambev S.A.: Major Drivers
  • (Mostly) Asia-Pac Weekly Risk Arb Wrap: Silk Laser, Arcland, Essential Metals, AAG, Lian Beng, Oishi

Last Week in Event SPACE: Yamada Denki, Genting, HKBN, Toyo Construction

By David Blennerhassett

  • Yamada Denki (9831 JP) lowering the March 2023 div to ¥12/share vs ¥18/share last year was just weird. And bodes badly. We need a lightbulb moment for a lightbulb dilemma.
  • Genting Bhd (GENT MK)‘s implied stub and simple ratio (GENT/ Genting Singapore (GENS SP)) are currently at muti-year trough levels. 
  • Buy Toyo Construction (1890 JP) <¥970. The proposed dividend could be in danger should YFO spill the board; but spilling the board to get better governance is a good thing. 

Las Vegas Sands: Starting a Run as Macau Recovery Gains Speed. Up 23% YTD.

By Howard J Klein

  • LVS just reported 1Q23 results showing a surging recovery of GGR and daily arrivals in Macau driving gains in revenue and profit profile.
  • Labor shortages that have limited availability of LVS’ 12,000 rooms are beginning to subside. Golden Week just ahead expected to reach +90% room occupancy.
  • Stock has moved over 20% since our buy call at $53. Our PT is raised to $80.

Ambev S.A.: Major Drivers

By Baptista Research

  • Ambev delivered mixed results in Q4.
  • The company saw a 1.5% increase in volumes though its revenues were below Wall Street expectations.
  • Also, despite the impact of inflationary pressures on Ambev’s expenditures and expenses, normalized EBITDA increased in the quarter and the company delivered an earnings beat.

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Silk Laser, Arcland, Essential Metals, AAG, Lian Beng, Oishi

By David Blennerhassett

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Apr 23
0

Daily Brief TMT/Internet: Tong Hsing Electronic Industries Ltd, Blackline Inc, Broadridge Financial Solutions, Inc and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Index Rebalance & ETF Flow Recap: MSCI STD, Yuanta Div+, ZJLD, Anta
  • BlackLine Inc.: Major Drivers
  • Broadridge Financial Solutions Inc.: Recurring Sales

Index Rebalance & ETF Flow Recap: MSCI STD, Yuanta Div+, ZJLD, Anta

By Brian Freitas

  • The review period for the MSCI May QCIR started last week and there were ad hoc changes to the S&P/ASX family and the KOSDAQ 150 Index (KOSDQ150 INDEX).
  • The end of the coming week will mark the end of the review period for the upcoming rebalances for a bunch of indices with implementation scheduled in May and June.
  • There was inflow to the Tracker Fund of Hong Kong Ltd (2800 HK) ETF for another week.

BlackLine Inc.: Major Drivers

By Baptista Research

  • BlackLine completed a year of profitable expansion with strong financial results for the fourth quarter.
  • The company had total sales of $140 million in Q4 and managed an all-around beat, including a top-line growth of 21%.
  • Moreover, increased utilization was caused by a stronger-than-anticipated demand for professional services due to customers’ willingness to access the solutions’ embedded value.

Broadridge Financial Solutions Inc.: Recurring Sales

By Baptista Research

  • Broadridge delivered a mixed set of results in the quarter.
  • Recurring sales increased by 8% on a constant currency basis, and both segments experienced significant growth but overall revenues were below analyst expectations.
  • However, the top-line growth combined with strict expense control helped to boost adjusted EPS by 11% which resulted in an earnings beat.

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