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Smartkarma Daily Briefs

Aug 29
0

Daily Brief Health Care: Ramsay Health Care, Bumrungrad Hospital Pub Co, Jafron Biomedical Co Ltd and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Ramsay and KKR’s Game of Cat and Mouse
  • Bumrungrad Hospital Pub Co (BH TB): Flying High on Return of Medical Tourism
  • Jafron Biomedical (300529CH) 22H1- Possibility of Logic Reversal and Upside Potential of Stock Price

Ramsay and KKR’s Game of Cat and Mouse

By Arun George

  • Ramsay Health Care (RHC AU) disclosed that the KKR & Co Inc (KKR US) consortium withdrew its indicative proposal but remains committed to the alternative proposal, which the Board earlier rejected. 
  • The alternative proposal, while inferior to the indicative proposal, is still attractive and better than the status quo of no deal. The Board will engage for an improved offer. 
  • The value gap between the parties is not huge, and a deal is possible. The upside (20% to alternative proposal) vs downside (-9% to undisturbed price) is worth a punt. 

Bumrungrad Hospital Pub Co (BH TB): Flying High on Return of Medical Tourism

By Tina Banerjee

  • Bumrungrad Hospital Pub Co (BH TB) reported strong Q2 2022 results, with revenue growth of 64% y/y, mainy driven by a 121% y/y increase in revenue from non-Thai patients.
  • Despite international patient volume is recovering, it is still lower than pre-COVID levels. Non-Thai patients contributed 66.2% of total revenue in Q2 2019, higher than 62.3% reported for Q2 2022.
  • Thailand targets 10 million foreign tourist arrivals this year, which should augur well for Bumrungrad.

Jafron Biomedical (300529CH) 22H1- Possibility of Logic Reversal and Upside Potential of Stock Price

By Xinyao (Criss) Wang

  • The centralized procurement of hemoperfusion cartridge is the major risk. This is why capital market is divided over the logic of long-term growth when performance continued to grow in 2022H1. 
  • Jafron is not without chances to get out of a passive situation. Either business diversification or internationalization would help re-establish the investment logic and improve the outlook.
  • The valuation of Jafron Biomedical Co Ltd (300529 CH)has entered the “hitting zone”. After continuous correction, there could be some rebound, like 10%-20% upside potential. Short term trade is recommended.

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Aug 29
0

Daily Brief Consumer: Alibaba Group, PT Surya Citra Media Tbk, Shiseido Company and more

By | Consumer, Daily Briefs

In today’s briefing:

  • CSRC and PCAOB “Agree” On Audit Terms – Now PCAOB Will Try To Prove a Negative
  • PT Surya Citra Media Tbk (SCMA IJ) – On the Cusp of a Convincing Recovery
  • Shiseido (4911 JP) | Wrinkle Free

CSRC and PCAOB “Agree” On Audit Terms – Now PCAOB Will Try To Prove a Negative

By Travis Lundy

  • Friday in US time, the China Securities Regulatory Commission (CSRC), China’s MOF, and the US Public Company Accounting Oversight Board (PCAOB) “agreed” on a Statement of Protocol.
  • This SoP sets the outlines for PCAOB access to inspect/investigate audit papers and accounting firms in China and HK for companies listed in the US.
  • The releases’ difference in language is to be expected – different constituencies – but as PCAOB Chair Williams said, “Now we will find out whether those promises hold up.”

PT Surya Citra Media Tbk (SCMA IJ) – On the Cusp of a Convincing Recovery

By Angus Mackintosh

  • PT Surya Citra Media 1H2022 reflects a recovery in advertising activity but also a normalisation of costs and investment in future growth, especially in its leading Indonesian OTT business Vidio.
  • The company continues to gain audience share, as it invests in new fresh content and its sporting content such as Liga 1, and the English Premier League kicks in.
  • PT Surya Citra Media is a proxy for recovering advertising spending as the Indonesian economy recovers plus its digital strategy through Vidio has already been proving successful.

Shiseido (4911 JP) | Wrinkle Free

By Mark Chadwick

  • We turn Bullish on Shiseido. The market has now digested the weak results for 2022 and can look to a recovery over the next year
  • Recent commentary from Estee Lauder’s CEO suggest that China is recovering and that the outlook is bright
  • Shiseido is one of the key beneficiaries as Japan re-opens its borders to foreign travellers

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Aug 29
0

Most Read: Alibaba Group, Hoymiles Power Electronics, PetroChina, Swire Pacific (A), Ramsay Health Care, Greentown Service Group, SK Innovation, China Tourism Group Duty Free Corp Ltd, True Corp Pcl and more

By | Daily Briefs, Most Read

In today’s briefing:

  • CSRC and PCAOB “Agree” On Audit Terms – Now PCAOB Will Try To Prove a Negative
  • STAR50 Index Rebalance: Adds Continue to Outperform as Changes Are Announced
  • Index Rebalance & ETF Flow Recap: FTSE AW/AC, CH 50/A50, STI, KLCI, TW 50/Div+, STAR50, EPRA Nareit
  • Last Week in Event SPACE: Toshiba, Swire Pacific, Ramsay Health, Pendal, Intouch
  • Ramsay and KKR’s Game of Cat and Mouse
  • China Property Management: Lacking Independence
  • KODEX FnGuide Battery ETF Rebalancing Checkup
  • (Mostly) Asia-Pac Weekly Risk Arb Wrap: Ramsay Health, Pendal, Nearmap, Xiamen Port, PTB Group, MACA
  • ECM Weekly (28th Aug 2022) – China Tourism, BA REIT, Hongjiu Fruit, YH Ent, Biocyto, WM, APM, Daiwa
  • Merger Arb Mondays (29 Aug) – Ramsay, DTAC/True, Pendal, Link Admin, Ramsay, Infomedia, ResApp, MACA

CSRC and PCAOB “Agree” On Audit Terms – Now PCAOB Will Try To Prove a Negative

By Travis Lundy

  • Friday in US time, the China Securities Regulatory Commission (CSRC), China’s MOF, and the US Public Company Accounting Oversight Board (PCAOB) “agreed” on a Statement of Protocol.
  • This SoP sets the outlines for PCAOB access to inspect/investigate audit papers and accounting firms in China and HK for companies listed in the US.
  • The releases’ difference in language is to be expected – different constituencies – but as PCAOB Chair Williams said, “Now we will find out whether those promises hold up.”

STAR50 Index Rebalance: Adds Continue to Outperform as Changes Are Announced

By Brian Freitas

  • The index committee has continued to use a 6 month minimum listing history leading to five changes to the SSE STAR50 (STAR50 INDEX) in September.
  • One-Way turnover is estimated at 4.07% and will result in a one-way trade of CNY 2,265m. Passive trackers will need to trade between 1-5 days ADV on the adds/deletes.
  • The adds have outperformed the deletes and the CSI500 Index since the end of the review period. We’d look to buy the adds and hedge with CSI500 Index futures.

Index Rebalance & ETF Flow Recap: FTSE AW/AC, CH 50/A50, STI, KLCI, TW 50/Div+, STAR50, EPRA Nareit

By Brian Freitas

Last Week in Event SPACE: Toshiba, Swire Pacific, Ramsay Health, Pendal, Intouch

By David Blennerhassett

  • Based on an admittedly somewhat finger-in-the-air estimate of probability of privatisation,  shorting Toshiba Corp (6502 JP) here against its Peer Basket is probably not a good outcome.
  • Swire Pacific (19 HK) has started buying back with 3.5x the average ADV impact on Bs vs As. That is likely to continue. 
  • KKR’s all cash A$88/share Offer for Ramsay Health (RHC AU) is off. The alternative Offer has a lower implied value, and has been unceremoniously rejected, despite Ramsay’s horrible FY22 numbers.

Ramsay and KKR’s Game of Cat and Mouse

By Arun George

  • Ramsay Health Care (RHC AU) disclosed that the KKR & Co Inc (KKR US) consortium withdrew its indicative proposal but remains committed to the alternative proposal, which the Board earlier rejected. 
  • The alternative proposal, while inferior to the indicative proposal, is still attractive and better than the status quo of no deal. The Board will engage for an improved offer. 
  • The value gap between the parties is not huge, and a deal is possible. The upside (20% to alternative proposal) vs downside (-9% to undisturbed price) is worth a punt. 

China Property Management: Lacking Independence

By David Blennerhassett

  • As China’s property market melts down, shares of property management companies are following suit.
  • And there are increasing governance issues attached to these management units as a slew of questionable parent/subsidiary transactions unfold. 
  • Valuations for property management companies are trading at multi-year lows. That trend is likely to continue.

KODEX FnGuide Battery ETF Rebalancing Checkup

By Sanghyun Park

  • I recommend focusing on the ceiling regression play. In this regard, SK Innovation has the most notable regression spread, and we should use Samsung SDI as a hedge against it.
  • As for constituent change, SungEel HiTech is firmly positioned with a market cap of ₩1.34T and a float rate of 50%. And it belongs to the Waste batteries keyword.
  • But, it is unclear whether SungEel will be in the top 25 in scoring. We should patiently wait until confirmation as it’s still a worthy candidate requiring our attention.

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Ramsay Health, Pendal, Nearmap, Xiamen Port, PTB Group, MACA

By David Blennerhassett

ECM Weekly (28th Aug 2022) – China Tourism, BA REIT, Hongjiu Fruit, YH Ent, Biocyto, WM, APM, Daiwa

By Sumeet Singh

  • Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
  • On the IPO front, China Tourism’s listing appears to have set the ball rolling for others to follow.
  • After a flurry of activity in the prior week, there weren’t any major placements this week.

Merger Arb Mondays (29 Aug) – Ramsay, DTAC/True, Pendal, Link Admin, Ramsay, Infomedia, ResApp, MACA

By Arun George

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Aug 28
0

Daily Brief Technical Analysis: NDX Short Conviction and more

By | Daily Briefs, Technical Analysis

In today’s briefing:

  • NDX Short Conviction

NDX Short Conviction

By Thomas Schroeder

  • NDX was our top US short bet from 13,750/500.  NDX below 13,000 is a risk off pivot for the global cycle. Conviction call to build NDX short on strength.
  • NDX 13k will now act as resistance with 12,500 and 12,100 downside targets. SPX reaction rise due Monday with resistance at 4,130/70.
  • Risk cycle peak rolled a bit early (before late August) sold weaker markets early (NDX, DAX, Taiwan, HK, Korea).

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Aug 28
0

Daily Brief China: Swire Pacific (A), China Tourism Group Duty Free Corp Ltd, Greentown Service Group, PetroChina and more

By | China, Daily Briefs

In today’s briefing:

  • Last Week in Event SPACE: Toshiba, Swire Pacific, Ramsay Health, Pendal, Intouch
  • ECM Weekly (28th Aug 2022) – China Tourism, BA REIT, Hongjiu Fruit, YH Ent, Biocyto, WM, APM, Daiwa
  • China Property Management: Lacking Independence
  • Index Rebalance & ETF Flow Recap: FTSE AW/AC, CH 50/A50, STI, KLCI, TW 50/Div+, STAR50, EPRA Nareit

Last Week in Event SPACE: Toshiba, Swire Pacific, Ramsay Health, Pendal, Intouch

By David Blennerhassett

  • Based on an admittedly somewhat finger-in-the-air estimate of probability of privatisation,  shorting Toshiba Corp (6502 JP) here against its Peer Basket is probably not a good outcome.
  • Swire Pacific (19 HK) has started buying back with 3.5x the average ADV impact on Bs vs As. That is likely to continue. 
  • KKR’s all cash A$88/share Offer for Ramsay Health (RHC AU) is off. The alternative Offer has a lower implied value, and has been unceremoniously rejected, despite Ramsay’s horrible FY22 numbers.

ECM Weekly (28th Aug 2022) – China Tourism, BA REIT, Hongjiu Fruit, YH Ent, Biocyto, WM, APM, Daiwa

By Sumeet Singh

  • Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
  • On the IPO front, China Tourism’s listing appears to have set the ball rolling for others to follow.
  • After a flurry of activity in the prior week, there weren’t any major placements this week.

China Property Management: Lacking Independence

By David Blennerhassett

  • As China’s property market melts down, shares of property management companies are following suit.
  • And there are increasing governance issues attached to these management units as a slew of questionable parent/subsidiary transactions unfold. 
  • Valuations for property management companies are trading at multi-year lows. That trend is likely to continue.

Index Rebalance & ETF Flow Recap: FTSE AW/AC, CH 50/A50, STI, KLCI, TW 50/Div+, STAR50, EPRA Nareit

By Brian Freitas

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Aug 28
0

Most Read: Emperador, Healthcare & Medical Investment Corporation, Jafco Co Ltd, Ramsay Health Care, Nasdaq-100 Stock Index, Hoymiles Power Electronics, Model Solution, Samsung Electronics Pref Shares, PetroChina, Sungeel Hitech and more

By | Daily Briefs, Most Read

In today’s briefing:

  • STI Index Rebalance Preview: Three Cheers for Emperador?
  • FTSE EPRA Nareit Developed Asia Preview: A Few Inclusion Possibilities
  • JAFCO (8595) Down as Murakami Affiliates Sell the Pop on the Poison Pill, So Buy the Range Dip
  • Ramsay Keeps Door Ajar After KKR’s “Meaningful Inferior” Offer
  • NDX Short Conviction
  • STAR50 Index Rebalance: Adds Continue to Outperform as Changes Are Announced
  • Model Solution IPO Preview
  • JY Lee Pardoned; What Should He Do Next?
  • Index Rebalance & ETF Flow Recap: FTSE AW/AC, CH 50/A50, STI, KLCI, TW 50/Div+, STAR50, EPRA Nareit
  • SungEel HiTech: KOSDAQ 150 Early Entry in December

STI Index Rebalance Preview: Three Cheers for Emperador?

By Brian Freitas

  • We expect Emperador (EMI SP) to be added to the FTSE Straits Times Index at the September rebalance after meeting the free float, market cap and liquidity requirements. 
  • As the lowest ranked current index constituent, we expect Comfortdelgro Corp (CD SP) will be deleted heaping pressure on the beleaguered stock with over 4 days of ADV to sell.
  • Emperador (EMP PM) is an inclusion to the FTSE All-World Index and there is a lot to buy on that line from passive trackers at the close on 16 September.

FTSE EPRA Nareit Developed Asia Preview: A Few Inclusion Possibilities

By Brian Freitas

JAFCO (8595) Down as Murakami Affiliates Sell the Pop on the Poison Pill, So Buy the Range Dip

By Travis Lundy

  • Entities related to noted Japanese activist Yoshiaki Murakami had bought 11+%, suggested 15%, proposed 51%, and pestered Jafco Co Ltd (8595 JP) for an asset sale and super-large buyback. 
  • JAFCO decided to launch a poison pill process as a hostile takeover defence mechanism, with the Record Date at August month-end.
  • The shares popped. I was bearish. It turns out Murakami affiliates sold the pop. And this starts the range trade.

Ramsay Keeps Door Ajar After KKR’s “Meaningful Inferior” Offer

By David Blennerhassett

  • KKR has all-but-abandoned its A$88/share cash offer for Ramsay Health Care (RHC AU),  Australia’s largest private hospital group.
  • KKR’s alternative proposal involves $88/share for the 5,000 RHC shares, followed by A$78.20/cash + 0.22 Ramsay Generale de Sante (GDS FP) shares thereafter – or an indicative value of A$84.93/share.
  • Despite announcing horrible annual results, Ramsay’s board considers the alternative proposal to be meaningfully inferior to the KKR’s indicative proposal of $88.00/share.

NDX Short Conviction

By Thomas Schroeder

  • NDX was our top US short bet from 13,750/500.  NDX below 13,000 is a risk off pivot for the global cycle. Conviction call to build NDX short on strength.
  • NDX 13k will now act as resistance with 12,500 and 12,100 downside targets. SPX reaction rise due Monday with resistance at 4,130/70.
  • Risk cycle peak rolled a bit early (before late August) sold weaker markets early (NDX, DAX, Taiwan, HK, Korea).

STAR50 Index Rebalance: Adds Continue to Outperform as Changes Are Announced

By Brian Freitas

  • The index committee has continued to use a 6 month minimum listing history leading to five changes to the SSE STAR50 (STAR50 INDEX) in September.
  • One-Way turnover is estimated at 4.07% and will result in a one-way trade of CNY 2,265m. Passive trackers will need to trade between 1-5 days ADV on the adds/deletes.
  • The adds have outperformed the deletes and the CSI500 Index since the end of the review period. We’d look to buy the adds and hedge with CSI500 Index futures.

Model Solution IPO Preview

By Douglas Kim

  • Model Solution makes prototypes to mainly check design and function in the product development stage, which is before the mass production stage of new products such as IT devices. 
  • The IPO price range is from 24,000 won to 27,000 won. The expected market cap of the IPO is from 153 billion won to 173 billion won.
  • The company had sales of 61.1 billion won (up 9.9% YoY) and operating profit of 8.9 billion won (up 32.1% YoY) in 2021.

JY Lee Pardoned; What Should He Do Next?

By Ken S. Kim

  • With JY Lee pardoned this past Monday, there is a lot of speculation about the speed of restructuring
  • A lot will depend on what happens with whether Samsung Life will be forced to sell its shares in Samsung Electronics
  • What should be done for the best of the family and shareholders is to buyout the pref shares

Index Rebalance & ETF Flow Recap: FTSE AW/AC, CH 50/A50, STI, KLCI, TW 50/Div+, STAR50, EPRA Nareit

By Brian Freitas

SungEel HiTech: KOSDAQ 150 Early Entry in December

By Sanghyun Park

  • So far, SungEel is in the top 50, currently ranked 38th. Given that the gap with 50th place is more than ₩100B, its early entry in December is very likely.
  • Rsupport is currently at the bottom with an average daily market cap of ₩0.27T. However, there are four other names under ₩0.30T, so we have to wait a little longer.
  • SungEel can expect a passive inflow equivalent to 1.0x ADTV. Combined with potential passive inflows from the local battery ETFs, it will form a quite solid flow momentum until December.

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Aug 27
0

Daily Brief Quantitative Analysis: Hong Kong Buybacks Weekly: Tencent and more

By | Daily Briefs, Quantitative Analysis

In today’s briefing:

  • Hong Kong Buybacks Weekly: Tencent, Xiaomi, Swire Pacific

Hong Kong Buybacks Weekly: Tencent, Xiaomi, Swire Pacific

By Ke Yan, CFA, FRM

  • We analyze statistics on top repurchases over one week, one month, one quarter and one year periods ended on Aug 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), Xiaomi (1810 HK), Swire Pacific (19 HK).
  • In the past 30 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), Ck Asset Holdings(1113 HK), Great Wall Motor (2333 HK).

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Aug 27
0

Daily Brief Australia: Ramsay Health Care, MACA Ltd and more

By | Australia, Daily Briefs

In today’s briefing:

  • Ramsay Keeps Door Ajar After KKR’s “Meaningful Inferior” Offer
  • MACA’s Target Statement Responds To Thiess’ Offer

Ramsay Keeps Door Ajar After KKR’s “Meaningful Inferior” Offer

By David Blennerhassett

  • KKR has all-but-abandoned its A$88/share cash offer for Ramsay Health Care (RHC AU),  Australia’s largest private hospital group.
  • KKR’s alternative proposal involves $88/share for the 5,000 RHC shares, followed by A$78.20/cash + 0.22 Ramsay Generale de Sante (GDS FP) shares thereafter – or an indicative value of A$84.93/share.
  • Despite announcing horrible annual results, Ramsay’s board considers the alternative proposal to be meaningfully inferior to the KKR’s indicative proposal of $88.00/share.

MACA’s Target Statement Responds To Thiess’ Offer

By David Blennerhassett

  • On the 26th July, diversified contractor MACA Ltd (MLD AU) announced a friendly off-market cash offer from fellow contractor Thiess, at A$1.025/share, a 28.1% premium to the previous close.
  • The Bidder’s Statement was dispatched on the 9 August. After rebuffing NRW Holdings (NWH AU)‘s non-binding proposal, MACA has now dispatched the Target Statement.
  • The IE deems the Offer, which remains subject to FIRB and ACCC approvals, to be fair. The first closing date is the 12 September. 

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Aug 27
0

Daily Brief Indonesia: Kalbe Farma, Guangzhou R&F Properties and more

By | Daily Briefs, Indonesia

In today’s briefing:

  • Kalbe Farma (KLBF IJ) – Fuelling Health Consciousness in Indonesia
  • Weekly Wrap – 26 Aug 2022

Kalbe Farma (KLBF IJ) – Fuelling Health Consciousness in Indonesia

By Angus Mackintosh

  • Kalbe Farma (KLBF IJ) results reflected its resilience in the face of inflationary pressure, with decent growth across all four core divisions with some manageable margin pressure.
  • The company raised prices by +3-5% in 1H2022 to offset raw material price increases and may increase a further +1%-3% in 2H2022 in a selective fashion to maintain margins. 
  • Kalbe Farma remains confident in the guidance of +11%-15% growth in sales and EPS for FY2022E and remains an interesting play on increasing health consciousness in Indonesia on attractive valuations.

Weekly Wrap – 26 Aug 2022

By Charles Macgregor

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.

In this Insight:

  1. China Oil And Gas
  2. Geely Auto
  3. Shimao Property Holdings
  4. Kwg Property Holding
  5. Seazen (Formerly Future Land)

and more…

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Aug 27
0

Daily Brief United States: Binance Coin, Booking Holdings, Advanced Micro Devices, Chevron Corp, Procter & Gamble Co, Caterpillar Inc, Verizon Communications, Conagra Foods, Paypal Holdings and more

By | Daily Briefs, United States

In today’s briefing:

  • Mastercard Partnership with Binance: BNB Will Benefit from Network Effect
  • Booking Holdings: Collaboration With Citigroup & Other Drivers
  • Advanced Micro Devices: The New Ryzen Embedded R-Series Launch & Other Drivers
  • Chevron Corp: The REG Acquisition & Other Developments
  • Procter & Gamble Company: Financial Forecasts
  • Caterpillar Inc: Cat MineStar Developments & Other Drivers
  • Verizon Communications Inc: Navigating Through A Challenging Business Environment
  • Conagra Brands Inc: New Product Launches & Other Drivers
  • PayPal Holdings Inc: Venmo & Other Innovations

Mastercard Partnership with Binance: BNB Will Benefit from Network Effect

By Rose Choy

  • The new Mastercard Binance debit card allows users to make purchases with selected cryptocurrencies in their Binance wallet and will first be rolled out in Argentina.
  • BNB, the Binance native token, will benefit from network effect as adoption for the crypto card grows.
  • Binance is expanding its payment strategy as a tool to drive user adoption and expand its ecosystem.

Booking Holdings: Collaboration With Citigroup & Other Drivers

By Ishan Majumdar

  • For the first time since the Covid-19 pandemic, Booking Holdings managed to exceed the levels for room nights in the last quarter which is a significant milestone in its recovery.
  • Nearly 0.25 billion room nights were reserved by the company’s clients in Q2, a slight increase from the first quarter’s 9% fall and a rise of 16% compared to Q2 2019.
  • The near-term macroeconomic climate is unpredictable which is why we maintain our ‘Hold’ rating on Booking Holdings with a revised target price.

Advanced Micro Devices: The New Ryzen Embedded R-Series Launch & Other Drivers

By Ishan Majumdar

  • Advanced Micro Devices continued its strong execution across the board and delivered an all-around beat in the recent result driven by its premier product line, and diverse business strategy.
  • The management also observed a significant year-over-year rise for their networking and FPGA solutions, which are the best in the business, with cloud and financial customers.
  • During the quarter, they also launched Ryzen Embedded R-Series system-on-chips processors in order to broaden their product line and target emerging markets.

Chevron Corp: The REG Acquisition & Other Developments

By Ishan Majumdar

  • Chevron continued its restructuring efforts which included $200 million in asset sale gains and a $600 million charge to cancel an extended LNG regas contract at Sabine Pass.
  • Chevron’s results were encouraging as it managed to deliver an all-around beat with superior yields and reduced carbon in the Permian.
  • With the remaining project operations mostly concentrated on systems completion, commissioning, and start-up, Chevron anticipates finishing construction by year’s end.

Procter & Gamble Company: Financial Forecasts

By Ishan Majumdar

  • Procter and Gamble delivered a decent top-line growth in the last quarter surpassing Wall Street expectations and continued its strong cash productivity which enables its high dividend payouts.
  • Feminine care, fabric care, and Personal health care were up by double digits, whereas personal care, skin and hair care, and oral and home care all grew low-single digit.
  • We provide the stock of Procter and Gamble Company with a ‘Hold’ rating with a revision in the target price.

Caterpillar Inc: Cat MineStar Developments & Other Drivers

By Ishan Majumdar

  • Despite persistent supply chain difficulties, Caterpillar delivered another strong quarter with a double-digit top line growth though it did fail to meet Wall Street expectations on the revenue front.
  • Most of its end markets are experiencing strong demand and its strong margin profile did help deliver an earnings beat.
  • The management achieved stronger services revenue and better-than-anticipated price revenue, which were offset by lower-than-anticipated user sales.

Verizon Communications Inc: Navigating Through A Challenging Business Environment

By Ishan Majumdar

  • Verizon Communications had a below par performance in the quarter as the inflationary pressure has been impacting consumer behavior resulting in the company failing to match earnings expectations and just about beating revenue expectations of Wall Street.
  • The company updated its financial guidance by lowering its expectations of other revenue and service.
  • The company launched its plan Welcome Unlimited for consumers wireless which will meet the requirements of budget-conscious consumers without offering device subsidies.

Conagra Brands Inc: New Product Launches & Other Drivers

By Ishan Majumdar

  • Conagra Brands’ strong result was driven by the excellent performance of its snacks business and it managed to deliver an all-around beat.
  • With the joint venture, Ardent Mills, the company had a strong quarter performance that recently managed through the latest instability in the wheat markets as well as proved to be an effective windbreak against inflation.
  • Conagra brands are planning to deliver $1 billion in cost savings in the upcoming three years as it updates and renovates its supply chain.

PayPal Holdings Inc: Venmo & Other Innovations

By Ishan Majumdar

  • PayPal has seen some level of recovery after the stock nosedived and stayed low in the period from May to July 2022.
  • Also, it has reinvigorated its organizational operating model and has been recruiting world-class talent in its product, technology, and engineering functions.
  • We see a further recovery in the stock of PayPal Holdings and we give it a ‘Buy’ rating with a revision in the target price.

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