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Smartkarma Daily Briefs

Jan 29
0

Daily Brief Consumer: LG Energy Solution, Kimberly Clark, Levi Strauss & Co and more

By | Consumer, Daily Briefs

In today’s briefing:

  • LG Energy Solution: Consensus Likely to Lower Sales and OP Estimates in 2023
  • Kimberly-Clark Corporation: Major Drivers
  • Levi Strauss & Co: Major Drivers

LG Energy Solution: Consensus Likely to Lower Sales and OP Estimates in 2023

By Douglas Kim

  • On 27 January, LG Energy Solution provided financial and operational guidance for 2023.
  • We believe that the consensus is likely to reduce sales estimate by 3% and operating profit estimates by 10-15% in 2023.  
  • Out of the total of 3.4% of ESOP shares, about 0.5% to 1.5% of the shares could be sold in the first few weeks after the end of the lock-up. 

Kimberly-Clark Corporation: Major Drivers

By Baptista Research

  • Kimberly-Clark delivered a mediocre performance in the last quarter of 2022 as it failed to meet the revenue expectations of Wall Street.
  • Despite that fact, the company managed to get 1/3rd of profit from the international market in the last quarter.
  • The new products created by Kimberly-Clark in the last 3 years have contributed to 60% of the total sales growth in 2022.

Levi Strauss & Co: Major Drivers

By Baptista Research

  • Levi Strauss had a successful fourth quarter with strong fiscal 2022 performance.
  • Levi Stauss managed to enhance its brand positioning and market share in the global market.
  • 40% of the company’s revenues came from outside of denim bottoms in this quarter.

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Jan 29
0

Daily Brief TMT/Internet: Kanematsu Electronics, SenseTime Group, Tencent, Tyro Payments, MongoDB Inc, Jabil Circuit, Dropbox Inc, Accenture Plc Cl A and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Kanematsu Electronics (8096 JP): JPY6,200 Tender Offer from Kanematsu Corporation
  • Index Rebalance & ETF Flow Recap: NKY, LQ45, New Deal, URA, NIFTY, Stock Connect, SenseTime, Adani
  • Kanematsu Electronics (8096) – ¥6200/Share Tender Offer by Parent – Easy Takeout
  • ECM Weekly (29th Jan 2023) – Adani, Oasis, Mankind Pharma, ZJLD, India IPO Bookrunners
  • Tyro Payments (TYR AU): Bid Revived as Potentia Secures Due Diligence
  • MongoDB Inc: Major Drivers, Financial Forecasts, DCF & Comparables Valuation, Key Risks (01/23)
  • Jabil Inc: Major Drivers
  • Dropbox Inc: The FormSwift Acquisition & Other Drivers
  • Accenture plc: Acquisition of FiftyFive5 & Other Drivers

Kanematsu Electronics (8096 JP): JPY6,200 Tender Offer from Kanematsu Corporation

By Arun George

  • Kanematsu Electronics (8096 JP) has recommended Kanematsu Corp (8020 JP)’s tender offer of JPY6,200 per share, an 32.9% premium to the undisturbed price (27 January).
  • The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the offer has been set to meet the 66.67% ownership ratio.
  • The tender offer is attractive as it represents an all-time share price high and a premium to peer multiples. This suggests a done deal. 

Index Rebalance & ETF Flow Recap: NKY, LQ45, New Deal, URA, NIFTY, Stock Connect, SenseTime, Adani

By Brian Freitas

Kanematsu Electronics (8096) – ¥6200/Share Tender Offer by Parent – Easy Takeout

By Travis Lundy

  • Kanematsu Corp (8020 JP) announced two tender offers Friday to take out subsidiaries. One more liquid one. One very small sub. This is the larger, easier deal. 
  • Kanematsu Electronics is an IT shop, designing and executing system integration and maintenance services. It is a great business. The takeout is a 33% premium to an all-time high.
  • It might still be a bit cheap, but it is not egregious, and it would be quite difficult to block. 

ECM Weekly (29th Jan 2023) – Adani, Oasis, Mankind Pharma, ZJLD, India IPO Bookrunners

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.
  • While the holiday shortened week didn’t see much action in Asia, but there was one more ADR filing in the US, adding to the mini-pipeline.
  • Adani’s ongoing FPO was the only live deal this week, although it had enough drama to make up for the lack of other deals.

Tyro Payments (TYR AU): Bid Revived as Potentia Secures Due Diligence

By Arun George

  • Tyro Payments (TYR AU) has offered, Potentia, four weeks of due diligence access to “develop a significantly improved proposal.” The Board rejected Potentia’s previous A$1.60 offer on 12 December.
  • Since the rejection of the offer, the FY2023 guidance has been upgraded and peers have re-rated. Therefore, Potentia can afford to be more generous with its terms. 
  • Press reports suggest that an offer of around A$1.85 per share would be supported by shareholders. We would be buyers as Tyro is undervalued at the last close price.

MongoDB Inc: Major Drivers, Financial Forecasts, DCF & Comparables Valuation, Key Risks (01/23)

By Baptista Research

  • MongoDB performed well in the third quarter in both financial and operational terms.
  • In addition, ISVs are continuing to develop their solutions using MongoDB in an increasing number of cases.
  • MongoDB is looking to achieve profitable growth and focus on acquiring new workloads from both existing and new customers.

Jabil Inc: Major Drivers

By Baptista Research

  • Jabil’s Q1 performance was impressive and the company delivered an all-around beat which helped propel its stock price.
  • The company’s strength resulted in the quarter’s double-digit rise in revenue, core operating income, and core diluted profits per share.
  • Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

Dropbox Inc: The FormSwift Acquisition & Other Drivers

By Baptista Research

  • Despite a series of macroeconomic challenges, Dropbox had a good last quarter and managed an all-around beat.
  • They also continue to return a sizable percentage of their free cash flow to shareholders through share repurchases.
  • Although they are experiencing moderate growth in their Sign business, it is important to set Dropbox Sign apart from conventional eSign solutions.

Accenture plc: Acquisition of FiftyFive5 & Other Drivers

By Baptista Research

  • Accenture continued its acquisition-led growth strategy in the last quarter and delivered another all-around beat, increasing operating margin while making significant investments in related businesses.
  • Engineering and industrial digitization are still in high demand and experienced strong double-digit growth in Q1.
  • Furthermore, they are assisting Celanese to undergo a digital transformation that will boost their manufacturing production resilience, productivity, and plant operations predictability.

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Jan 29
0

Daily Brief Industrials: Posco International Corporation, Kanematsu Nnk, Adani Enterprises, Hong Kong Hang Seng Index, Textron Inc and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Names to Watch for Inclusion in MSCI Korea May Review
  • Kanematsu Sustech (7961) ¥2250/Share Tender Offer by Parent – Supremely Illiquid But Interesting
  • Last Week in SPACE: Kawasaki Kisen Kaisha, Osstem, Fujitsu General, Adani Enterprises
  • EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades
  • Textron Inc: Major Drivers

Names to Watch for Inclusion in MSCI Korea May Review

By Sanghyun Park

  • Posco International‘s recent merger with Posco Energy increased the share count. The distance from the float market cap borderline is catchable, given the current share price uptrend.
  • Hanwha Aerospace will likely fail inclusion in this February review. The gap with the hurdle is not large, so it can aim for inclusion in the May review.
  • Among Outside IMI, Korea Gas is tricky as it is a FOL stock. MSCI-concluded float is 30%, and the gap with the float market cap hurdle is still quite large.

Kanematsu Sustech (7961) ¥2250/Share Tender Offer by Parent – Supremely Illiquid But Interesting

By Travis Lundy

  • Kanematsu Corp (8020 JP) announced two tender offers late Friday to take out minorities in subsidiaries. One larger, safer deal. One smaller, illiquid, but potentially interesting one.
  • This is the interesting one. It is being done at the wrong price, and it has investors who might care who have been long-time holders.
  • This could get interesting. You have a buyer. A target. It’s pretty clean except for shareholder structure. And the buyer has room to pay up. 

Last Week in SPACE: Kawasaki Kisen Kaisha, Osstem, Fujitsu General, Adani Enterprises

By David Blennerhassett

  • Be long Kawasaki Kisen Kaisha (9107 JP) vs MOL and NYK. The shares are cheap on a forward basis. KLine is reducing the Real World Float, causing further potential squeeze.
  • Sabana Industrial REIT (SSREIT SP)‘s Partial Offer at 0.88x book is not overwhelming, but it is also not a control stake. It is probably priced near-right.
  • IF Osstem (048260 KS)‘s price were to go higher, it is conceivable there could be a bump, but don’t bet on it as long as the stock trades <KRW 190,000. 

EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades

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

Textron Inc: Major Drivers

By Baptista Research

  • Textron delivered a decent result in the last quarter with revenues of $3.6 billion which surpassed Wall Street expectations.
  • The company faced a strong demand, a strong pricing net of inflation, and a higher aftermarket volume in this quarter.
  • It was a quarter of strong customer demand and solid cash flow.

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Jan 29
0

Daily Brief Utilities: Adani Transmission and more

By | Daily Briefs, Utilities Sector

In today’s briefing:

  • Adani Group: Hindenburg Report Spurs MSCI to Invite Feedback

Adani Group: Hindenburg Report Spurs MSCI to Invite Feedback

By Brian Freitas

  • The Adani Group stocks have taken a dive following the Hindenburg Research report. Group market cap is down more than US$47bn with company promoters taking the biggest hit.
  • The Adani Enterprises FPO is almost certain to be undersubscribed. MSCI, in an unprecedented step, is monitoring publicly available information and is seeking feedback from the investment community.
  • We find that the real float of some Adani Group stocks is much lower than the headline numbers and there could be selling if MSCI lowers the FIF.

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Jan 29
0

Daily Brief Health Care: Acotec Scientific Holdings and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Weekly Deals Digest (29 Jan) – AAG Energy, Acotec, Xingda, Origin Energy, Tyro, Kanematsu, Toyo

Weekly Deals Digest (29 Jan) – AAG Energy, Acotec, Xingda, Origin Energy, Tyro, Kanematsu, Toyo

By Arun George

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Jan 29
0

Daily Brief Financials: Sabana Industrial REIT, UnionBank of the Philippines and more

By | Daily Briefs, Financials

In today’s briefing:

  • (Mostly) Asia-Pac Weekly Risk Arb Wrap: Osstem, Warrego, Norwest Energy, Acotec, Sabana, Jafco, Toyo
  • PCOMP Index Rebalance: DMC, UBP to Replace MEG, RLC

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Osstem, Warrego, Norwest Energy, Acotec, Sabana, Jafco, Toyo

By David Blennerhassett

PCOMP Index Rebalance: DMC, UBP to Replace MEG, RLC

By Brian Freitas

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Jan 29
0

Daily Brief Australia: Tyro Payments and more

By | Australia, Daily Briefs

In today’s briefing:

  • Tyro Payments (TYR AU): Bid Revived as Potentia Secures Due Diligence

Tyro Payments (TYR AU): Bid Revived as Potentia Secures Due Diligence

By Arun George

  • Tyro Payments (TYR AU) has offered, Potentia, four weeks of due diligence access to “develop a significantly improved proposal.” The Board rejected Potentia’s previous A$1.60 offer on 12 December.
  • Since the rejection of the offer, the FY2023 guidance has been upgraded and peers have re-rated. Therefore, Potentia can afford to be more generous with its terms. 
  • Press reports suggest that an offer of around A$1.85 per share would be supported by shareholders. We would be buyers as Tyro is undervalued at the last close price.

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

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  • ✓ Unlimited Research Summaries
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  • ✓ Events & Webinars
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Jan 29
0

Daily Brief United States: Dropbox Inc, Jabil Circuit, Kimberly Clark, Levi Strauss & Co, MongoDB Inc, Schlumberger Ltd, Textron Inc and more

By | Daily Briefs, United States

In today’s briefing:

  • Dropbox Inc: The FormSwift Acquisition & Other Drivers
  • Jabil Inc: Major Drivers
  • Kimberly-Clark Corporation: Major Drivers
  • Levi Strauss & Co: Major Drivers
  • MongoDB Inc: Major Drivers, Financial Forecasts, DCF & Comparables Valuation, Key Risks (01/23)
  • Schlumberger NV: Major Drivers
  • Textron Inc: Major Drivers

Dropbox Inc: The FormSwift Acquisition & Other Drivers

By Baptista Research

  • Despite a series of macroeconomic challenges, Dropbox had a good last quarter and managed an all-around beat.
  • They also continue to return a sizable percentage of their free cash flow to shareholders through share repurchases.
  • Although they are experiencing moderate growth in their Sign business, it is important to set Dropbox Sign apart from conventional eSign solutions.

Jabil Inc: Major Drivers

By Baptista Research

  • Jabil’s Q1 performance was impressive and the company delivered an all-around beat which helped propel its stock price.
  • The company’s strength resulted in the quarter’s double-digit rise in revenue, core operating income, and core diluted profits per share.
  • Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

Kimberly-Clark Corporation: Major Drivers

By Baptista Research

  • Kimberly-Clark delivered a mediocre performance in the last quarter of 2022 as it failed to meet the revenue expectations of Wall Street.
  • Despite that fact, the company managed to get 1/3rd of profit from the international market in the last quarter.
  • The new products created by Kimberly-Clark in the last 3 years have contributed to 60% of the total sales growth in 2022.

Levi Strauss & Co: Major Drivers

By Baptista Research

  • Levi Strauss had a successful fourth quarter with strong fiscal 2022 performance.
  • Levi Stauss managed to enhance its brand positioning and market share in the global market.
  • 40% of the company’s revenues came from outside of denim bottoms in this quarter.

MongoDB Inc: Major Drivers, Financial Forecasts, DCF & Comparables Valuation, Key Risks (01/23)

By Baptista Research

  • MongoDB performed well in the third quarter in both financial and operational terms.
  • In addition, ISVs are continuing to develop their solutions using MongoDB in an increasing number of cases.
  • MongoDB is looking to achieve profitable growth and focus on acquiring new workloads from both existing and new customers.

Schlumberger NV: Major Drivers

By Baptista Research

  • Schlumberger maintained its growth momentum throughout the fourth quarter, producing significant revenue growth and additional sequential and annual margin increase.
  • They had sequential revenue growth and margin expansion in North America and internationally.
  • On the other hand, exploration data sales, INNOVATION FACTORI, and AI solutions saw a significant increase in the digital sector.

Textron Inc: Major Drivers

By Baptista Research

  • Textron delivered a decent result in the last quarter with revenues of $3.6 billion which surpassed Wall Street expectations.
  • The company faced a strong demand, a strong pricing net of inflation, and a higher aftermarket volume in this quarter.
  • It was a quarter of strong customer demand and solid cash flow.

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  • ✓ Events & Webinars
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Jan 29
0

Daily Brief Singapore: Sabana Industrial REIT and more

By | Daily Briefs, Singapore

In today’s briefing:

  • (Mostly) Asia-Pac Weekly Risk Arb Wrap: Osstem, Warrego, Norwest Energy, Acotec, Sabana, Jafco, Toyo

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Osstem, Warrego, Norwest Energy, Acotec, Sabana, Jafco, Toyo

By David Blennerhassett

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  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
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Jan 29
0

Daily Brief South Korea: Posco International Corporation, LG Energy Solution and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Names to Watch for Inclusion in MSCI Korea May Review
  • LG Energy Solution: Consensus Likely to Lower Sales and OP Estimates in 2023

Names to Watch for Inclusion in MSCI Korea May Review

By Sanghyun Park

  • Posco International‘s recent merger with Posco Energy increased the share count. The distance from the float market cap borderline is catchable, given the current share price uptrend.
  • Hanwha Aerospace will likely fail inclusion in this February review. The gap with the hurdle is not large, so it can aim for inclusion in the May review.
  • Among Outside IMI, Korea Gas is tricky as it is a FOL stock. MSCI-concluded float is 30%, and the gap with the float market cap hurdle is still quite large.

LG Energy Solution: Consensus Likely to Lower Sales and OP Estimates in 2023

By Douglas Kim

  • On 27 January, LG Energy Solution provided financial and operational guidance for 2023.
  • We believe that the consensus is likely to reduce sales estimate by 3% and operating profit estimates by 10-15% in 2023.  
  • Out of the total of 3.4% of ESOP shares, about 0.5% to 1.5% of the shares could be sold in the first few weeks after the end of the lock-up. 

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

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

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
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  • ✓ Events & Webinars
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