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Smartkarma Daily Briefs

Apr 07
0

Daily Brief Indonesia: PT Metrodata Electronics, Indocement Tunggal Prakarsa, Medco Energi and more

By | Daily Briefs, Indonesia

In today’s briefing:

  • PT Metrodata Electronics (MTDL IJ) – The Digital Transformer
  • Indocement Tunggal Prakarsa (INTP IJ) – Building Through Sustainable and Digital Means
  • Medco Energi – Earnings Flash – FY 2022 Results – Lucror Analytics

PT Metrodata Electronics (MTDL IJ) – The Digital Transformer

By Angus Mackintosh

  • PT Metrodata Electronics had a strong finish to the year with FY2022 net profit growth of +14.1% YoY driven by both its ICT distribution and Solutions & Consulting (S&C) businesses.
  • The S&C business continues to thrive on Indonesia’s ongoing digitalisation, especially in the financial sector with the advent of digital banking but also in the telecom and oil&gas sectors. 
  • PT Metrodata sees a slower outlook for the consumer outlook but strong momentum behind commercial sales and S&C as digitalisation continues, and new growth from the Public Sector. Valuations attractive.

Indocement Tunggal Prakarsa (INTP IJ) – Building Through Sustainable and Digital Means

By Angus Mackintosh

  • Indocement Tunggal Prakarsa (INTP IJ) released solid FY2022 results despite inclement conditions for the industry, as it utilised more low CV coal and alternative fuels and raised prices.
  • The company now has much better access to cheaper DMO coal, which accounted for 60% of requirements in 2H2022, which provides a lower and more sustainable cost base for 2023.
  • Indocement has continued to aggressively expand its distribution footprint across Indonesia in 2022, allowing it to access regional areas of demand. Valuations are attractive versus history.

Medco Energi – Earnings Flash – FY 2022 Results – Lucror Analytics

By Leonard Law, CFA

Medco Energi’s FY 2022 results were strong, in line with expectations. This was supported by increased production following the ConocoPhillips Indonesia acquisition in March, as well as the high oil-price environment. Moreover, copper and gold mining JV AMNT has started to mature, generating healthy dividends. Leverage improved to a healthy level, with Debt/EBITDA at 2.1x and Net Debt/EBITDA at 1.6x.

We expect Medco’s earnings to increase slightly in FY 2023, assuming oil prices are maintained at current levels, as ASP from its fixed-price contracts is likely to rise from a low base. In addition, the company should deleverage further going forward, supported by strong OCF generation and debt repayments. Management said that Medco intends to acquire more assets in future, although there are no imminent plans currently.

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Apr 07
0

Daily Brief China: Xiaomi Corp, Sinopharm Group Co Ltd H, Prudential PLC, Sino Biopharmaceutical and more

By | China, Daily Briefs

In today’s briefing:

  • Xiaomi: Aggressive Spending on EVs as Smartphone Growth Slows Down
  • Sinopharm Group (1099 HK): Strong 2022 Results; Double-Digit Top and Bottom-Line Growth to Continue
  • Prudential PLC: Initiation of Coverage – Expansion In Emerging Markets & Other Drivers
  • Sino Biopharmaceutical (1177.HK) – The Positives and the Negatives

Xiaomi: Aggressive Spending on EVs as Smartphone Growth Slows Down

By Shifara Samsudeen, ACMA, CGMA

  • Xiaomi Corp (1810 HK) ’s share price has been down more than 10% over the last 12-months with weakening of the company’s earnings particularly the smartphone business.
  • Xiaomi’s entry into premium segment has not much helped its smartphone biz as it faces stiff competition from Apple and Samsung in the premium segment.
  • The company spends aggressively on EVs to drive growth, however, with EV subsidies not renewed and intense competition, this may not help Xiaomi in the near term.

Sinopharm Group (1099 HK): Strong 2022 Results; Double-Digit Top and Bottom-Line Growth to Continue

By Tina Banerjee

  • Sinopharm Group Co Ltd H (1099 HK) reported strong 2022 results, with annual revenue exceeding RMB550B and net profit achieving 10% YoY growth. Growth was driven by pharmaceutical distribution business.
  • EPS increased 10% YoY to RMB2.73, ahead of consensus of RMB2.64. The company has increased its final dividend to RMB0.82 per share from RMB0.75 per share in the prior year.
  • With favorable industry tailwind and China reopening, consensus expects Sinopharm to report double-digit revenue and EPS growth through 2025.

Prudential PLC: Initiation of Coverage – Expansion In Emerging Markets & Other Drivers

By Baptista Research

  • This is our first report on Prudential, a major provider of life and health insurance.
  • Prudential had a very strong quarter with 19% sales growth.
  • Despite slower revenue recognition in the life insurance market, the company has been witnessing strong cash flows and returned over $800 million to shareholders in the latest quarter.

Sino Biopharmaceutical (1177.HK) – The Positives and the Negatives

By Xinyao (Criss) Wang

  • Sino Biopharm’s 2022 performance isn’t satisfactory, but the Company is gradually getting rid of the negative influence of VBP. We expect Sino Biopharm to achieve faster performance recovery than Hengrui.
  • Most of Sino Biopharm’s innovative drugs are biosimilars and Me-Too products, which will face fierce competition once approved for listing. The revenue target of HK$100 billion by 2030 looks challenging. 
  • Corporate governance deficiencies and lack of the next big variety are the reasons why the market is reluctant to offer high valuation. The new CEO needs time to prove his ability. 

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Apr 07
0

Daily Brief Japan: Rakuten Bank, HS Holdings and more

By | Daily Briefs, Japan

In today’s briefing:

  • Rakuten Bank (5838) IPO – New Price Is One To Take (Part 1)
  • Khan Bank IPO Is Here – At IPO Price, the Stake Is Worth More than HS Holdings’ Share Price
  • Rakuten Bank IPO Valuation: A Deep Value Play in Japanese Banking

Rakuten Bank (5838) IPO – New Price Is One To Take (Part 1)

By Travis Lundy

  • Rakuten Bank (5838 JP) has priced at a new range of ¥1,300-1,400/share, down from ¥1,630-1,930/share. That lowers TTM PER and PBR to well below where SBI Sumishin was priced.
  • This will now be universally recognised by pre-IPO analysts as a raging buy. Even at the top end. Important considerations:  Rakuten parent TAM, growth, index inclusions, etc. 
  • There are OTHER important considerations going forward which show themselves in the documents. 

Khan Bank IPO Is Here – At IPO Price, the Stake Is Worth More than HS Holdings’ Share Price

By Travis Lundy

  • Today, it was announced that HS Holdings (8699 JP) subsidiary Khan Bank LLC – Mongolia’s largest bank – would IPO this month. 
  • This is a big deal. The IPO is for 10% of the bank (US$521mm equivalent). Priced at 4x Dec 2022 earnings for a bank which has ~ 25% ROE.
  • There is a reason to expect substantial realisation of this value within 2023 due to a section of Feb 2021 Amended Mongolian Banking Law. Plus there is boatloads of cash.

Rakuten Bank IPO Valuation: A Deep Value Play in Japanese Banking

By Oshadhi Kumarasiri

  • Rakuten Bank announced its IPO price range at ¥1,300-1,400 per share, which is 20-29% lower than the initially indicated price range at the time of filling of the IPO prospectus.
  • The new price puts Rakuten Bank (5838 JP) on 4.9-5.3x FY+2 PE, which is the lowest in Japan’s banking sector.
  • Japanese banks usually trade at a price-to-book of 0.2x per 1% ROE. This indicates that Rakuten Bank, which is priced at 1.0-1.1x, may deserve a fair price-to-book of over 2.0x.

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Apr 07
0

Daily Brief Energy/Materials: Indocement Tunggal Prakarsa, Medco Energi, Equinor ASA, Seadrill Ltd and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • Indocement Tunggal Prakarsa (INTP IJ) – Building Through Sustainable and Digital Means
  • Medco Energi – Earnings Flash – FY 2022 Results – Lucror Analytics
  • Equinor ADR: Initiation of Coverage – Recent Acquisitions & Other Drivers
  • SDRL: Deal Is Done, Now for the Free Cash Flow

Indocement Tunggal Prakarsa (INTP IJ) – Building Through Sustainable and Digital Means

By Angus Mackintosh

  • Indocement Tunggal Prakarsa (INTP IJ) released solid FY2022 results despite inclement conditions for the industry, as it utilised more low CV coal and alternative fuels and raised prices.
  • The company now has much better access to cheaper DMO coal, which accounted for 60% of requirements in 2H2022, which provides a lower and more sustainable cost base for 2023.
  • Indocement has continued to aggressively expand its distribution footprint across Indonesia in 2022, allowing it to access regional areas of demand. Valuations are attractive versus history.

Medco Energi – Earnings Flash – FY 2022 Results – Lucror Analytics

By Leonard Law, CFA

Medco Energi’s FY 2022 results were strong, in line with expectations. This was supported by increased production following the ConocoPhillips Indonesia acquisition in March, as well as the high oil-price environment. Moreover, copper and gold mining JV AMNT has started to mature, generating healthy dividends. Leverage improved to a healthy level, with Debt/EBITDA at 2.1x and Net Debt/EBITDA at 1.6x.

We expect Medco’s earnings to increase slightly in FY 2023, assuming oil prices are maintained at current levels, as ASP from its fixed-price contracts is likely to rise from a low base. In addition, the company should deleverage further going forward, supported by strong OCF generation and debt repayments. Management said that Medco intends to acquire more assets in future, although there are no imminent plans currently.

Equinor ADR: Initiation of Coverage – Recent Acquisitions & Other Drivers

By Baptista Research

  • This is our first report on an international energy major, Equinor.
  • The company delivered a mixed operational performance for the fourth quarter with below-par revenues but managed an earnings beat.
  • Equinor improved security for its assets and cyberspace by enforcing tougher security rules, providing more training, and collaborating more closely with law enforcement.

SDRL: Deal Is Done, Now for the Free Cash Flow

By Hamed Khorsand

  • SDRL reported its long awaited fourth quarter results after the Company consummated the purchase of Aquadrill.
  • It was in the Q123 when SDRL was able to generate revenue from its new Brazilian contracts making it more likely investors would minimize their interest on the Q4 results
  • The purchase of Aquadrill provides scale to SDRL’s operations through a larger fleet size and being able to internally manage the Aquadrill fleet as contracts begin the expire

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Apr 07
0

Daily Brief Industrials: Golden Energy & Resources, Old Dominion Freight Line and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Golden Energy (GER SP): Annual Report Data Points Further Underscore a Low-Balled Offer
  • Old Dominion Freight Line Inc.: Initiation of Coverage – Business Strategy & Key Drivers

Golden Energy (GER SP): Annual Report Data Points Further Underscore a Low-Balled Offer

By Arun George

  • Golden Energy & Resources (GER SP)’s valuation is dependent on three key assets – Golden Energy Mines (GEMS IJ), Stanmore Coal (SMR AU) and Ravenswood. GEMS/SMR have observable values.
  • The valuation of GEAR’s 50% stake in Ravenswood gets little publicity largely as it is unlisted. However, the annual report provides data points to value this key gold asset. 
  • Based on peer EV/Resource and EV/Reserve multiples, Ravenswood 50% stake is worth S$200-465 million. Using the midpoint valuation, the SoTP valuation is S$1.40 (39% upside to the last close).

Old Dominion Freight Line Inc.: Initiation of Coverage – Business Strategy & Key Drivers

By Baptista Research

  • This is our first report on a major LTL shipping company, Old Dominion Freight Line.
  • As a result, the company delivered double-digit growth in earnings per diluted share in the fourth quarter.
  • Besides that, the productive labor expenses as a percentage of revenue decreased by 170 basis points within their direct operating costs, while their purchase transportation costs decreased by 200 basis points.

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Apr 07
0

Daily Brief TMT/Internet: KT Corp, Xiaomi Corp, Samsung Electronics Pref Shares, Vodafone and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Why Will KT’s Foreign Room Stay Above 15% Until MSCI Review Period?
  • Xiaomi: Aggressive Spending on EVs as Smartphone Growth Slows Down
  • Gap Trades in Korean Prefs Vs Common Share Pairs in 2Q 2023
  • Vodafone Group ADR: Initiation of Coverage – Business Strategy

Why Will KT’s Foreign Room Stay Above 15% Until MSCI Review Period?

By Sanghyun Park

  • There is only one factor that could have affected KT’s foreign flow in mid-February, and that is the repurchase of its shares.
  • If KT continues its buyback at the current pace, which is highly likely, we can bet that the foreign room will not fall below 15% until MSCI’s review period.
  • This implies an essential premise for us to set up a more aggressive preemptive position on KT.

Xiaomi: Aggressive Spending on EVs as Smartphone Growth Slows Down

By Shifara Samsudeen, ACMA, CGMA

  • Xiaomi Corp (1810 HK) ’s share price has been down more than 10% over the last 12-months with weakening of the company’s earnings particularly the smartphone business.
  • Xiaomi’s entry into premium segment has not much helped its smartphone biz as it faces stiff competition from Apple and Samsung in the premium segment.
  • The company spends aggressively on EVs to drive growth, however, with EV subsidies not renewed and intense competition, this may not help Xiaomi in the near term.

Gap Trades in Korean Prefs Vs Common Share Pairs in 2Q 2023

By Douglas Kim

  • In this insight, we discuss numerous gap trades involving Korean preferred and common shares in 2Q 2023. 
  • The excessive gaps in the preferred and common shares of CJ Corp, Samsung Electronics, and LG Electronics could reverse in the next several months, in our view. 
  • We see some attractive longer-term opportunities for Amorepacific Corp, Doosan Fuelcell, LG Electronics, and Samsung SDI which have especially high discounts for the preferred shares versus their counterpart common shares.

Vodafone Group ADR: Initiation of Coverage – Business Strategy

By Baptista Research

  • This is our first report on a telecommunication giant, Vodafone Group ADR.
  • The company produced a resilient financial performance in 2022.
  • We initiate coverage on the stock of Vodafone Group with a ‘Buy’ rating.

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Apr 07
0

Daily Brief Financials: Rakuten Bank, HS Holdings, Industrivarden AB, Prudential PLC, Bitcoin, Ally Financial and more

By | Daily Briefs, Financials

In today’s briefing:

  • Rakuten Bank (5838) IPO – New Price Is One To Take (Part 1)
  • Rakuten Bank IPO Valuation: A Deep Value Play in Japanese Banking
  • Khan Bank IPO Is Here – At IPO Price, the Stake Is Worth More than HS Holdings’ Share Price
  • Industrivärden: Q1 Results and Discount to NAV
  • Prudential PLC: Initiation of Coverage – Expansion In Emerging Markets & Other Drivers
  • Q1 Liquidity Ranking for Crypto Assets
  • Ally Financial: Comparisons To The Recently Failed Banks Are Inappropriate

Rakuten Bank (5838) IPO – New Price Is One To Take (Part 1)

By Travis Lundy

  • Rakuten Bank (5838 JP) has priced at a new range of ¥1,300-1,400/share, down from ¥1,630-1,930/share. That lowers TTM PER and PBR to well below where SBI Sumishin was priced.
  • This will now be universally recognised by pre-IPO analysts as a raging buy. Even at the top end. Important considerations:  Rakuten parent TAM, growth, index inclusions, etc. 
  • There are OTHER important considerations going forward which show themselves in the documents. 

Rakuten Bank IPO Valuation: A Deep Value Play in Japanese Banking

By Oshadhi Kumarasiri

  • Rakuten Bank announced its IPO price range at ¥1,300-1,400 per share, which is 20-29% lower than the initially indicated price range at the time of filling of the IPO prospectus.
  • The new price puts Rakuten Bank (5838 JP) on 4.9-5.3x FY+2 PE, which is the lowest in Japan’s banking sector.
  • Japanese banks usually trade at a price-to-book of 0.2x per 1% ROE. This indicates that Rakuten Bank, which is priced at 1.0-1.1x, may deserve a fair price-to-book of over 2.0x.

Khan Bank IPO Is Here – At IPO Price, the Stake Is Worth More than HS Holdings’ Share Price

By Travis Lundy

  • Today, it was announced that HS Holdings (8699 JP) subsidiary Khan Bank LLC – Mongolia’s largest bank – would IPO this month. 
  • This is a big deal. The IPO is for 10% of the bank (US$521mm equivalent). Priced at 4x Dec 2022 earnings for a bank which has ~ 25% ROE.
  • There is a reason to expect substantial realisation of this value within 2023 due to a section of Feb 2021 Amended Mongolian Banking Law. Plus there is boatloads of cash.

Industrivärden: Q1 Results and Discount to NAV

By Jesus Rodriguez Aguilar

  • Industrivarden AB (INDUA SS) is resilient: NAV on 31 March was SEK 138.3 billion, or SEK 320/share, an increase q-o-q of SEK 27/share, +9%, with some minor additions to the portfolio.
  • The balance sheet is strong, with a debt/equities ratio kept at 4%. A+ rating was confirmed on 27 March. 5-year total return was 67.5% vs. 66% for the OMX30.
  • The discount to NAV of C shares is 8.1% (vs. 10.7% average over the last 8 years). During Q1 the discount has tightened from 13.6% on 31 December.

Prudential PLC: Initiation of Coverage – Expansion In Emerging Markets & Other Drivers

By Baptista Research

  • This is our first report on Prudential, a major provider of life and health insurance.
  • Prudential had a very strong quarter with 19% sales growth.
  • Despite slower revenue recognition in the life insurance market, the company has been witnessing strong cash flows and returned over $800 million to shareholders in the latest quarter.

Q1 Liquidity Ranking for Crypto Assets

By Kaiko

  • Last quarter I published the first liquidity ranking system for crypto assets, comparing each asset’s liquidity ranking to its market cap and investigating which token’s market cap is the most misleading from a liquidity standpoint.
  • Liquidity has arguably never been at more of a premium than right now in crypto, with USD payment rails being shut down and market makers pulling orders from exchanges.
  • With market depth at 10 month lows, price volatility has picked up and so it is essential investors can accurately evaluate the liquidity of each individual asset to gain an understanding of how much short term volatility to expect.

Ally Financial: Comparisons To The Recently Failed Banks Are Inappropriate

By Vladimir Dimitrov, CFA

  • Ally Financial has emerged as a potential target after the recent events in the banking sector.
  • There are certain macroeconomic risks involved, but the company has changed dramatically over the past decade.
  • There are also major differences between the recently failed banks and Ally Financial that need to be considered, according to the company.

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Apr 07
0

Daily Brief Health Care: Sinopharm Group Co Ltd H, iShares Global Healthcare ETF, Sino Biopharmaceutical, Perkinelmer Inc, Waters Corp, West Pharmaceutical Services Inc and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Sinopharm Group (1099 HK): Strong 2022 Results; Double-Digit Top and Bottom-Line Growth to Continue
  • Defensives Worthy of a Tactical Overweight; Buys in Global Health Care, Gold Miners, and Utilities
  • PerkinElmer Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report
  • Sino Biopharmaceutical (1177.HK) – The Positives and the Negatives
  • PerkinElmer Inc.: Initiation of Coverage – Business Strategy & Key Drivers
  • Waters Corporation: Initiation of Coverage – The Wyatt Technology Acquisition & Other Drivers
  • Waters Corporation: Detailed Credit Analysis & Financial Strength Evaluation Report
  • West Pharmaceutical Services Inc.: Initiation of Coverage – Business Strategy & Key Drivers

Sinopharm Group (1099 HK): Strong 2022 Results; Double-Digit Top and Bottom-Line Growth to Continue

By Tina Banerjee

  • Sinopharm Group Co Ltd H (1099 HK) reported strong 2022 results, with annual revenue exceeding RMB550B and net profit achieving 10% YoY growth. Growth was driven by pharmaceutical distribution business.
  • EPS increased 10% YoY to RMB2.73, ahead of consensus of RMB2.64. The company has increased its final dividend to RMB0.82 per share from RMB0.75 per share in the prior year.
  • With favorable industry tailwind and China reopening, consensus expects Sinopharm to report double-digit revenue and EPS growth through 2025.

Defensives Worthy of a Tactical Overweight; Buys in Global Health Care, Gold Miners, and Utilities

By Joe Jasper

  • As recently as last week and throughout February/March we have recommended shifting to defensives due to our belief that $93 will cap upside on the $ACWI in 2023.
  • MSCI ACWI defensive Sectors including Health Care, Utilities, and Consumer Staples are hitting 2+ month RS highs, and are staging bullish price and RS reversals, as are gold miners (GDX-US).
  • This confirms our belief that now is the time to be tactically overweight defensives. We highlight buys in Health Care, Gold Miners, and Utilities, with the vast majority from Europe

PerkinElmer Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report

By Baptista Research

  • PerkinElmer is a major provider of life sciences, diagnostics, and applied services markets across the globe.
  • The company had a decent 2022 and their Life Sciences and Diagnostics business experienced organic growth of 9% for the entire year.
  • With the introduction of adeno-associated virus or AAV detection kits, the Life Sciences business has continued to innovate in cell and gene therapy.

Sino Biopharmaceutical (1177.HK) – The Positives and the Negatives

By Xinyao (Criss) Wang

  • Sino Biopharm’s 2022 performance isn’t satisfactory, but the Company is gradually getting rid of the negative influence of VBP. We expect Sino Biopharm to achieve faster performance recovery than Hengrui.
  • Most of Sino Biopharm’s innovative drugs are biosimilars and Me-Too products, which will face fierce competition once approved for listing. The revenue target of HK$100 billion by 2030 looks challenging. 
  • Corporate governance deficiencies and lack of the next big variety are the reasons why the market is reluctant to offer high valuation. The new CEO needs time to prove his ability. 

PerkinElmer Inc.: Initiation of Coverage – Business Strategy & Key Drivers

By Baptista Research

  • This is our first report on PerkinElmer, a premium provider of life sciences, diagnostics, and applied services markets across the globe.
  • The company had a decent 2022 and their Life Sciences and Diagnostics business experienced organic growth of 9% for the entire year.
  • With the introduction of adeno-associated virus or AAV detection kits, the Life Sciences business has continued to innovate in cell and gene therapy.

Waters Corporation: Initiation of Coverage – The Wyatt Technology Acquisition & Other Drivers

By Baptista Research

  • This is our first report on major lab equipment manufacturer, Waters Corporation.
  • Waters’ growth has also been aided by its reinvigorated portfolio and this trend is expected to continue.
  • We initiate coverage on the stock of Waters Corporation with a ‘Hold’ rating.

Waters Corporation: Detailed Credit Analysis & Financial Strength Evaluation Report

By Baptista Research

  • This is our first report on major lab equipment manufacturer, Waters Corporation.
  • Its Pharma has also had decent growth, driven by both large and small molecule applications which has been led by the European markets.
  • Baptista Research looks to evaluate the different credit strengths and credit risks of the company as well as a line-by-line analysis of the financial statements of the company for the past four years.

West Pharmaceutical Services Inc.: Initiation of Coverage – Business Strategy & Key Drivers

By Baptista Research

  • This is our first report on West Pharmaceutical Services, a major manufacturer of injectable medication delivery and packaging systems.
  • West Pharmaceutical reported an all-around beat in its last result and generated about 8% growth in organic sales overall.
  • With COVID-19 excluded, West anticipates that its base organic sales growth was in the low double digits, with proprietary product growth in the mid-teens.

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Apr 07
0

Daily Brief Industrials: Golden Energy & Resources, Old Dominion Freight Line and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Golden Energy (GER SP): Annual Report Data Points Further Underscore a Low-Balled Offer
  • Old Dominion Freight Line Inc.: Initiation of Coverage – Business Strategy & Key Drivers

Golden Energy (GER SP): Annual Report Data Points Further Underscore a Low-Balled Offer

By Arun George

  • Golden Energy & Resources (GER SP)’s valuation is dependent on three key assets – Golden Energy Mines (GEMS IJ), Stanmore Coal (SMR AU) and Ravenswood. GEMS/SMR have observable values.
  • The valuation of GEAR’s 50% stake in Ravenswood gets little publicity largely as it is unlisted. However, the annual report provides data points to value this key gold asset. 
  • Based on peer EV/Resource and EV/Reserve multiples, Ravenswood 50% stake is worth S$200-465 million. Using the midpoint valuation, the SoTP valuation is S$1.40 (39% upside to the last close).

Old Dominion Freight Line Inc.: Initiation of Coverage – Business Strategy & Key Drivers

By Baptista Research

  • This is our first report on a major LTL shipping company, Old Dominion Freight Line.
  • As a result, the company delivered double-digit growth in earnings per diluted share in the fourth quarter.
  • Besides that, the productive labor expenses as a percentage of revenue decreased by 170 basis points within their direct operating costs, while their purchase transportation costs decreased by 200 basis points.

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Apr 07
0

Daily Brief Consumer: Jardine Cycle & Carriage, PT Metrodata Electronics, Formula One Group and more

By | Consumer, Daily Briefs

In today’s briefing:

  • JCNC’s Logic-Defying Valuation
  • PT Metrodata Electronics (MTDL IJ) – The Digital Transformer
  • Formula One Group: Initiation of Coverage – Major Partnerships & Other Key Drivers
  • Formula One Group: Detailed Credit Analysis & Financial Strength Evaluation Report

JCNC’s Logic-Defying Valuation

By David Blennerhassett

PT Metrodata Electronics (MTDL IJ) – The Digital Transformer

By Angus Mackintosh

  • PT Metrodata Electronics had a strong finish to the year with FY2022 net profit growth of +14.1% YoY driven by both its ICT distribution and Solutions & Consulting (S&C) businesses.
  • The S&C business continues to thrive on Indonesia’s ongoing digitalisation, especially in the financial sector with the advent of digital banking but also in the telecom and oil&gas sectors. 
  • PT Metrodata sees a slower outlook for the consumer outlook but strong momentum behind commercial sales and S&C as digitalisation continues, and new growth from the Public Sector. Valuations attractive.

Formula One Group: Initiation of Coverage – Major Partnerships & Other Key Drivers

By Baptista Research

  • This is our first report on a global media and entertainment player, Formula One Group.
  • Its fourth quarter result was mixed and the company surpassed the revenue expectations of Wall Street but missed out on meeting earnings expectations.
  • The company introduced a new brand campaign in the quarter to demonstrate F1’s position in the sporting and entertainment worlds.

Formula One Group: Detailed Credit Analysis & Financial Strength Evaluation Report

By Baptista Research

  • Formula One Group is major global media and entertainment company with decent fundamentals.
  • The management anticipates Ford’s contribution as a technical engine supplier will be valuable for the sport and Red Bull.
  • Baptista Research looks to evaluate the different credit strengths and credit risks of the company as well as a line-by-line analysis of the financial statements of the company for the past four years.

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