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Smartkarma Daily Briefs

Jan 25
0

Daily Brief Financials: Close Brothers and more

By | Daily Briefs, Financials

In today’s briefing:

  • Quiddity Leaderboard STOXX Europe Mar 23: 5 ADDs/DELs and Potential Downweights for EDF and VTWR

Quiddity Leaderboard STOXX Europe Mar 23: 5 ADDs/DELs and Potential Downweights for EDF and VTWR

By Janaghan Jeyakumar, CFA

  • In this insight, we take a look at the names leading the race to become ADDs/DELs for the STOXX Europe 600 and EURO STOXX Indices for the March 2023 Rebalance.
  • Based on the latest available data, I see five ADDs/DELs for the STOXX Europe 600 Index during the March 2023 review.
  • Separately, Electricite De France Sa (EDF FP) and Vantage Towers (VTWR GR) could have index outflows triggered by extraordinary float adjustments before or during the March 2023 review. 

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Jan 25
0

Daily Brief Consumer: Coway Co Ltd, Tokyo Stock Exchange Tokyo Price Index Topix, Sonos Inc, Lululemon Athletica, Restaurant Brands Intern, Skechers Usa Inc Cl A and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Coway Is a Prime Candidate for Corporate Activism in Korea
  • The Real Goal of a Company that Wants to Remain in Prime Market Is to Remain in TOPIX
  • Sonos Inc: New Launches & Other Drivers
  • Lululemon Athletica: Major Drivers
  • Restaurant Brands International: Major Drivers
  • Skechers USA Inc: Major Drivers

Coway Is a Prime Candidate for Corporate Activism in Korea

By Douglas Kim

  • In this insight, we discuss the major reasons why Coway Co Ltd (021240 KS) is a prime candidate for corporate activism in Korea.
  • Netmarble has done a poor job with Coway post its acquisition in 2019.
  • An action plan for Coway is to return at least half of its net profit through dividends and share buybacks/cancellations.

The Real Goal of a Company that Wants to Remain in Prime Market Is to Remain in TOPIX

By Aki Matsumoto

  • Since simply increasing shareholder returns won’t increase corporate value/market cap, it’s more natural to present shareholder return policy together with reasonable earnings target, even when such policy is put forth.
  • In fact, the companies exemplified in the Nikkei article saw share prices rise for companies with positive earnings outlooks and increased conviction that they will meet their medium-term earnings targets.
  • This is  a more serious and urgent issue for transitional companies, as companies with market cap of less than 10 billion yen in October 2023 will be excluded from TOPIX.

Sonos Inc: New Launches & Other Drivers

By Baptista Research

  • Sonos delivered a decent performance in the last quarter with revenue growth beyond market expectations and narrower-than-expected losses despite the challenging macroeconomic backdrop.
  • In the last quarter, installer solutions revenue grew, driven by robust demand for the company’s Port and Amp products in spite of persistent supply challenges.
  • Sonos continues to see strong performance in its installer solutions channel in spite of slowing house activity in the United States.

Lululemon Athletica: Major Drivers

By Baptista Research

  • Lululemon’s results for the last quarter continued to be strong and the company produced an all-around beat despite the fact that the external environment remains challenging.
  • In terms of traffic driven and revenue, Black Friday was among the biggest days for the company.
  • The revenue growth of Lululemon remained balanced and strong across various drivers, and the company’s market share gains continued.

Restaurant Brands International: Major Drivers

By Baptista Research

  • Restaurant Brands delivered a positive set of results in the last quarter, surpassing Wall Street expectations in terms of revenues as well as earnings.
  • It delivered a strong performance across Tim Hortons Canada and Burger King International businesses.
  • Improvements in the U.S. at Burger King, Popeyes, and Firehouse Subs were significant.

Skechers USA Inc: Major Drivers

By Baptista Research

  • With the Skechers results just around the corner, it would be interesting to see how the company has performed in the previous quarter.
  • Last quarter, the company set a new quarterly sales record of $1.88 billion which was well above Wall Street expectations.
  • Its direct-to-consumer and wholesale businesses experienced double-digit growth given the strength in their retail stores and digital platforms.

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Jan 25
0

Daily Brief Quantitative Analysis: What Are Growth Stocks? and more

By | Daily Briefs, Quantitative Analysis

In today’s briefing:

  • What Are Growth Stocks?
  • HK Short Interest Weekly: Ping An, Li Ning, Icbc, Jiumaojiu

What Are Growth Stocks?

By Nicolas Rabener

  • Growth stocks can be defined via valuations, fundamentals, or performance
  • These stocks have generated essentially zero excess returns since 2005
  • Neither has the inverse basket (low valuations, low growth, low momentum

HK Short Interest Weekly: Ping An, Li Ning, Icbc, Jiumaojiu

By Ke Yan, CFA, FRM

  • We analyzed the latest HK SFC report for aggregate short position as of Jan 13th.
  • Top short increases and decreases were tabulated for one week and four week period. 
  • We highlight short changes in Ping An, Li Ning, Icbc, Jiumaojiu.

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Jan 25
0

Daily Brief Industrials: Kawasaki Kisen Kaisha, Toyo Construction, Nidec Corp, Comfortdelgro Corp, Baycurrent Consulting, Sunrun Inc, Enphase Energy, United Airlines Holdings and more

By | Daily Briefs, Industrials

In today’s briefing:

  • KLINE (9107) – Chances for an Additional Buyback At Q3 Earnings?
  • YFO To Take the Fight To Toyo Construction’s Board
  • Nidec (6594) | Down but Not Out
  • Comfortdelgro (CD): Now or Never
  • Baycurrent Consulting: High Value-Added Projects and New Consulting Areas Drive New Phase of Growth
  • Sunrun Inc: Collaboration With The Enel Group & Other Drivers
  • Enphase Energy Inc: Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (01/23)
  • United Airlines: Major Drivers

KLINE (9107) – Chances for an Additional Buyback At Q3 Earnings?

By Travis Lundy

  • KLine is the cheapest of the three Japan majors in terms of forward consensus PER. And forward EPS ratios are improving as the company buys back shares. 
  • The CEO mentioned in December the possibility of additional shareholder return this fiscal year based on cashflow. 
  • In this insight, we look at what he knew then, and what he might know now, and the chances for an additional buyback (and how it might work).

YFO To Take the Fight To Toyo Construction’s Board

By Travis Lundy

  • YFO offered another Press Release yesterday. This one outlines what they see as Corporate Governance failures and offers a NEW POLICY.
  • The Corporate Governance failures are indeed, failures. Toyo’s Board has failed to be transparent with shareholders, and in not at least addressing the takeover proposal, has failed its duties.
  • NEW POLICY? Elect new independent directors “capable of improving the long-term corporate value and maximizing the interests of the general shareholders.”  Soft war starts now.

Nidec (6594) | Down but Not Out

By Mark Chadwick

  • Nidec slashed its full year operating profit guidance by 48% to 110 billion yen
  • For Q3, Nidec reported an operating profit of 28 billion yen (-37% YoY), significantly below street expectations (51 billion)
  • We remain bullish, expecting cost cutting efforts to ignite a profit recovery next year

Comfortdelgro (CD): Now or Never

By Henry Soediarko

  • New leadership with expertise in Australia could lead to value unlocking for Australian assets. 
  • Q3 22 ridership has gone up to 85% and 83% of pre-COVID level for NEL and DTL while in Q3 21 was only 49% for NEL and 43% for DTL.
  • The reopening has brought tourists back and increased ridership level while China’s reopening has just started and is not yet priced in. 

Baycurrent Consulting: High Value-Added Projects and New Consulting Areas Drive New Phase of Growth

By Shifara Samsudeen, ACMA, CGMA

  • Baycurrent’s share price has moved up 41.3% YTD with the company reporting strong earnings for 3QFY02/2023 which beat consensus estimates by a huge margin.
  • With pandemic conditions fading off, share price began to fall with top-line growth declining slightly. However, growth rates have bounced back, and margins have seen strong improvement reaching new highs.
  • Though share priced has rallied significantly over the last few months, we think there is further upside driven by value-added projects and expansion into new consulting areas.

Sunrun Inc: Collaboration With The Enel Group & Other Drivers

By Baptista Research

  • Sunrun delivered strong results in the last quarter as it continued expanding net subscriber value and delivering cost efficiency.
  • During the quarter, Lunar Energy unveiled the clean energy company where Sunrun invested for accelerating whole-home electrification.
  • Ford’s partnership with Sunrun continues to deliver strong results.

Enphase Energy Inc: Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (01/23)

By Baptista Research

  • Enphase delivered solid results for the past quarter driven largely by solid revenues through microinverters which helped them produce an all-around beat.
  • Enphase Energy has recently announced the launch of IQ8 Microinverters in the Netherlands and France, thereby making the foremost expansion into the international markets for this product.
  • In the U.S., the microinverter channel inventory has been very healthy, and its storage channel inventory was slightly elevated because of longer installation times.

United Airlines: Major Drivers

By Baptista Research

  • United Airlines faced a challenging operating environment during the last quarter but managed to deliver an all-around beat.
  • Although the company had high load factors, it quickly accommodated thousands more passengers when other airlines’ flights were cancelled.
  • Domestic capacity decreased by 8%, while international capacity decreased by 12%.

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Jan 25
0

Daily Brief Equity Bottom-Up: Nidec (6594) | Down but Not Out and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Nidec (6594) | Down but Not Out
  • Tencent (700.HK): Valuing Wechat Channels
  • Comfortdelgro (CD): Now or Never
  • Baycurrent Consulting: High Value-Added Projects and New Consulting Areas Drive New Phase of Growth
  • Asian Paints (APNT IN) | Masking Growth Concerns
  • Hutchmed China Ltd (13.HK/HCM.US) – The $1.13B Eye-Catching Deal with Takeda and the New Outlook
  • PolyNovo (PNV AU): 1H23 Result- Growth Trajectory Continues; Fund Raising Strengthens Balance Sheet
  • Bayer: Focusing On Fundamentals – What The Market Isn’t Picking Up!
  • Teladoc Inc: New Integrated Healthcare Experience & Other Developments
  • ON Semiconductor Corp: Major Drivers

Nidec (6594) | Down but Not Out

By Mark Chadwick

  • Nidec slashed its full year operating profit guidance by 48% to 110 billion yen
  • For Q3, Nidec reported an operating profit of 28 billion yen (-37% YoY), significantly below street expectations (51 billion)
  • We remain bullish, expecting cost cutting efforts to ignite a profit recovery next year

Tencent (700.HK): Valuing Wechat Channels

By Eric Chen

  • Recent developments highlighted the strategic significance of Wechat Channels (微信视频号) that Tencent’s management attached to the company’s future.
  • Counter-Intuitively, while backing of the social giant saves Wechat Channels’ efforts for traffic acquisition, it also limits the product’s potential to develop into a content ecosystem rivaling Douyin.
  • Our base case values the product at $29 billion, or 6% of Tencent’s market cap as of January 20th.

Comfortdelgro (CD): Now or Never

By Henry Soediarko

  • New leadership with expertise in Australia could lead to value unlocking for Australian assets. 
  • Q3 22 ridership has gone up to 85% and 83% of pre-COVID level for NEL and DTL while in Q3 21 was only 49% for NEL and 43% for DTL.
  • The reopening has brought tourists back and increased ridership level while China’s reopening has just started and is not yet priced in. 

Baycurrent Consulting: High Value-Added Projects and New Consulting Areas Drive New Phase of Growth

By Shifara Samsudeen, ACMA, CGMA

  • Baycurrent’s share price has moved up 41.3% YTD with the company reporting strong earnings for 3QFY02/2023 which beat consensus estimates by a huge margin.
  • With pandemic conditions fading off, share price began to fall with top-line growth declining slightly. However, growth rates have bounced back, and margins have seen strong improvement reaching new highs.
  • Though share priced has rallied significantly over the last few months, we think there is further upside driven by value-added projects and expansion into new consulting areas.

Asian Paints (APNT IN) | Masking Growth Concerns

By Pranav Bhavsar

  • Asian Paints (APNT IN) reported flat year-over-year volumes and flat sales in domestic decorative paints in 3Q FY23. The company’s gross margin recovery is aligned with easing raw material prices.  
  • The company attributed the rough quarter to a heavy base from last year’s price increases and a prolonged monsoon, which impacted October volumes.
  • We believe that the volumes are lower than what has been reported.  Increasing competition could challenge APNT’s premium valuation.

Hutchmed China Ltd (13.HK/HCM.US) – The $1.13B Eye-Catching Deal with Takeda and the New Outlook

By Xinyao (Criss) Wang

  • HUTCHMED entered into an exclusive license agreement with Takeda- HUTCHMED will receive up to US$1.13 billion including US$400 million upfront, the third highest upfront among China’s TOP 10 license-out deals.
  • Even if fruquintinib may probably not become a blockbuster product in the future, HUTCHMED still gets a decent upfront to relieve its cash flow pressure and an internationalization admission ticket.
  • Hutchmed China Ltd (13 HK) is undervalued based on our sales forecast. After savolitinib has been included in the updated NRDL, this year’s performance growth is worth looking forward to.

PolyNovo (PNV AU): 1H23 Result- Growth Trajectory Continues; Fund Raising Strengthens Balance Sheet

By Tina Banerjee

  • PolyNovo Ltd (PNV AU) reported record high sales of A$27.3 million, up 67.5% YoY during H1FY23, mainly driven by the strong momentum in the U.S.
  • The company has continued to increase the sales team, particularly in the U.S. which has driven sales growth and customer account acquisition, entailing long-term visibility.
  • Recently, PolyNovo has raised A$53 million to fund its global growth aspirations. The company is entering new markets, enhancing portfolio, and expanding manufacturing facility to support 5x sales.

Bayer: Focusing On Fundamentals – What The Market Isn’t Picking Up!

By Alexis Dwek

  • The equity story expands across all of Bayer’s three segments. Positive signs in Pharma, Crops Sciences, and Consumer Health are showing, which we believe are misunderstood by the investment community
  • Bayer has seen a material share price decline driven by litigation issues, while earnings showed solid progress.
  • Positive news from the Pharma pipeline and progress in the high value seed business as well as the litigation cases removed from the spotlight should help the stock rerate.

Teladoc Inc: New Integrated Healthcare Experience & Other Developments

By Baptista Research

  • Teladoc Health delivered a decent result for the last quarter and managed to exceed the revenue expectations as well as the earnings expectations of Wall Street.
  • Teladoc concluded the quarter with a total US paid membership of 57.8 million members, an increase of 1.2 million members over the second quarter, driven by a combination of new virtual care client onboardings and population expansions within current clients.
  • The management conducted their client advisory panel with representatives from 30 health plans, sizable employers, and health systems in attendance.

ON Semiconductor Corp: Major Drivers

By Baptista Research

  • ON Semiconductor Corporation delivered another all-around beat in its last result.
  • The company is a well-known provider of intelligent sensing and power solutions and has established a good market position within its niche in the semiconductor market.
  • More and more companies are considering ON Semiconductors as their long-term strategic partners as the company walks according to an amazing foresight.

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Jan 25
0

Daily Brief Australia: Norwest Energy NL, PolyNovo Ltd, Schrole Group Ltd and more

By | Australia, Daily Briefs

In today’s briefing:

  • Norwest Energy (NWE AU): The Board Perplexing Succumbs to MinRes’ Revised Offer
  • PolyNovo (PNV AU): 1H23 Result- Growth Trajectory Continues; Fund Raising Strengthens Balance Sheet
  • Schrole Group Ltd – Record Cash Receipts and Quarterly Operating Cashflow

Norwest Energy (NWE AU): The Board Perplexing Succumbs to MinRes’ Revised Offer

By Arun George

  • Mineral Resources (MIN AU) has revised its offer from 1 MinRes share for every 1,367 NWE shares to 1 MinRes share for every 1,300 NWE shares. The offer is unconditional. 
  • The Norwest Energy NL (NWE AU) Board now recommends the offer. Most of the value uplift is due to the 17.4% increase in MinRes’ share price since 15 December.
  • MinRes’ revised off-market takeover offer is fair in comparison to Warrego Energy (WGO AU)’s bids and historical ranges. However, this is predicated on the MinRes maintaining its share price run.

PolyNovo (PNV AU): 1H23 Result- Growth Trajectory Continues; Fund Raising Strengthens Balance Sheet

By Tina Banerjee

  • PolyNovo Ltd (PNV AU) reported record high sales of A$27.3 million, up 67.5% YoY during H1FY23, mainly driven by the strong momentum in the U.S.
  • The company has continued to increase the sales team, particularly in the U.S. which has driven sales growth and customer account acquisition, entailing long-term visibility.
  • Recently, PolyNovo has raised A$53 million to fund its global growth aspirations. The company is entering new markets, enhancing portfolio, and expanding manufacturing facility to support 5x sales.

Schrole Group Ltd – Record Cash Receipts and Quarterly Operating Cashflow

By Research as a Service (RaaS)

  • Schrole Group Ltd (ASX:SCL) is an Australian software company focused on providing human resource technology solutions to the international education and training sector.
  • Schrole has developed a suite of five HR Software-as-a-Service (SaaS) offerings including the core product, Schrole Connect, a SaaS-based staff recruitment platform.
  • Schrole Group has reported its best- ever quarterly cash receipts and operating cashflow which respectively increased 38% and 138% over the same period in CY21.

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Jan 25
0

Daily Brief Singapore: Comfortdelgro Corp and more

By | Daily Briefs, Singapore

In today’s briefing:

  • Comfortdelgro (CD): Now or Never

Comfortdelgro (CD): Now or Never

By Henry Soediarko

  • New leadership with expertise in Australia could lead to value unlocking for Australian assets. 
  • Q3 22 ridership has gone up to 85% and 83% of pre-COVID level for NEL and DTL while in Q3 21 was only 49% for NEL and 43% for DTL.
  • The reopening has brought tourists back and increased ridership level while China’s reopening has just started and is not yet priced in. 

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Jan 25
0

Daily Brief South Korea: Douzone Bizon, Coway Co Ltd, Osstem Implant and more

By | Daily Briefs, South Korea

In today’s briefing:

  • KRX New Deal Index Rebalance Preview: Some Big Impact Names
  • Coway Is a Prime Candidate for Corporate Activism in Korea
  • A Tender Offer of Osstem Implant by MBK & Unison Capital?
  • Detailing Maekyung Report on MBK’s Tender Offer to Osstem Implant Shareholders at a 20% Premium

KRX New Deal Index Rebalance Preview: Some Big Impact Names

By Brian Freitas

  • The review period for the March rebalance ends on 31 January, the changes will be announced towards end February and implemented at the close of trading on 9 March.
  • We forecast one add/delete for the Game Index, and a couple of adds/deletes for the BBIG Index. There will be a lot of capping changes.
  • The largest inflows are expected on Posco Chemical (003670 KS) and Douzone Bizon (012510 KS); the largest outflows are expected on SK Innovation (096770 KS) and KMW (032500 KS).

Coway Is a Prime Candidate for Corporate Activism in Korea

By Douglas Kim

  • In this insight, we discuss the major reasons why Coway Co Ltd (021240 KS) is a prime candidate for corporate activism in Korea.
  • Netmarble has done a poor job with Coway post its acquisition in 2019.
  • An action plan for Coway is to return at least half of its net profit through dividends and share buybacks/cancellations.

A Tender Offer of Osstem Implant by MBK & Unison Capital?

By Douglas Kim

  • On 24 January, it was reported in Maeil Business Daily that MBK and Unison Capital are ready to take over the management rights of Osstem Implant through a tender offer.
  • For now, Osstem Implant, MBK Partners, and Unison Capital have not confirmed on the validity of this news.
  • We would attach a 70-90% probability that indeed MBK Partners and Unison Capital Korea are ready to launch a tender offer on Osstem Implant.

Detailing Maekyung Report on MBK’s Tender Offer to Osstem Implant Shareholders at a 20% Premium

By Sanghyun Park

  • Maekyung exclusively reports MBK will do a tender offer to Osstem Implant shareholders at a 20% premium to buy a 15% stake.
  • As Maekyung is a first-tier news outlet in Korea, we have to see enough credibility in this report. We should expect to see it in an official regulatory filing soon.
  • We should design a play that actively utilizes the tender offer event very elaborately. Here, we need to consider immediate offerings and potential delisting from a longer-term perspective.

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Jan 25
0

Daily Brief United States: NEXTracker, Teladoc Health, Inc., Sonos Inc, Communication Services Select, Sunrun Inc, Automatic Data Processing, On Semiconductor, Appian Corp, United Airlines Holdings, Enphase Energy and more

By | Daily Briefs, United States

In today’s briefing:

  • Nextracker IPO Valuation Analysis
  • Teladoc Inc: New Integrated Healthcare Experience & Other Developments
  • Sonos Inc: New Launches & Other Drivers
  • Upgrading Communications, Downgrading Staples – Both to Market Weight; US Dollar Major Top
  • Sunrun Inc: Collaboration With The Enel Group & Other Drivers
  • Automatic Data Processing Inc (ADP): Major Drivers
  • ON Semiconductor Corp: Major Drivers
  • Appian Corp: Major Drivers, Financial Forecasts, DCF & Comparables Valuation, Key Risks (01/23)
  • United Airlines: Major Drivers
  • Enphase Energy Inc: Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (01/23)

Nextracker IPO Valuation Analysis

By Andrei Zakharov

  • NEXTracker (NXT US) , a leading solar tracker and software solutions provider for utility-scale and distributed generation projects, filed for an IPO.
  • According to Crunchbase, NEXTracker (NXT US)  has raised ~$548M in funding over four rounds, and investors include Sigma Partners, DBL Partners, SJF Ventures, and American private equity firm TPG.
  • We have a favorable view of the upcoming Nextracker IPO and see upside potential to the last round valuation of ~$3B, when the company announced a strategic investment from TPG. 

Teladoc Inc: New Integrated Healthcare Experience & Other Developments

By Baptista Research

  • Teladoc Health delivered a decent result for the last quarter and managed to exceed the revenue expectations as well as the earnings expectations of Wall Street.
  • Teladoc concluded the quarter with a total US paid membership of 57.8 million members, an increase of 1.2 million members over the second quarter, driven by a combination of new virtual care client onboardings and population expansions within current clients.
  • The management conducted their client advisory panel with representatives from 30 health plans, sizable employers, and health systems in attendance.

Sonos Inc: New Launches & Other Drivers

By Baptista Research

  • Sonos delivered a decent performance in the last quarter with revenue growth beyond market expectations and narrower-than-expected losses despite the challenging macroeconomic backdrop.
  • In the last quarter, installer solutions revenue grew, driven by robust demand for the company’s Port and Amp products in spite of persistent supply challenges.
  • Sonos continues to see strong performance in its installer solutions channel in spite of slowing house activity in the United States.

Upgrading Communications, Downgrading Staples – Both to Market Weight; US Dollar Major Top

By Joe Jasper

  • In our January 10th Compass, we discussed a break above 3910 on SPX would signal a tradable rally, with 4100-4165 our target, the top-end of our expected 2023 trading range.
  • We believe equities are still in the midst of a rally/short squeeze, but that the rally is likely to fizzle in the 4100-4165 area.
  • After being underweight Communications (XLC) since Nov 2021, sidestepping 20% underperformance vs. SPX, we now see signs of price and RS bottoms, and we are upgrading to market weight. Buy.

Sunrun Inc: Collaboration With The Enel Group & Other Drivers

By Baptista Research

  • Sunrun delivered strong results in the last quarter as it continued expanding net subscriber value and delivering cost efficiency.
  • During the quarter, Lunar Energy unveiled the clean energy company where Sunrun invested for accelerating whole-home electrification.
  • Ford’s partnership with Sunrun continues to deliver strong results.

Automatic Data Processing Inc (ADP): Major Drivers

By Baptista Research

  • ADP had a great start to fiscal 2023 and delivered an all-around beat in its last result.
  • The company overcame elevated expense growth over the first quarter of last year and ongoing investments in the business by delivering 30 basis points of adjusted EBIT margin expansion.
  • In contrast, the start of bookings growth in the foreign business was slower than the management had anticipated.

ON Semiconductor Corp: Major Drivers

By Baptista Research

  • ON Semiconductor Corporation delivered another all-around beat in its last result.
  • The company is a well-known provider of intelligent sensing and power solutions and has established a good market position within its niche in the semiconductor market.
  • More and more companies are considering ON Semiconductors as their long-term strategic partners as the company walks according to an amazing foresight.

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

By Baptista Research

  • Appian Corp delivered a mixed result in the last quarter with revenues exceeding Wall Street expectations largely driven by the growth in cloud subscription revenue.
  • In every category, the revenue growth is healthy and setting records in the quarter.
  • While a large part of the tech industry has been retrenching, Appian went ahead and hired 221 employees in the last quarter.

United Airlines: Major Drivers

By Baptista Research

  • United Airlines faced a challenging operating environment during the last quarter but managed to deliver an all-around beat.
  • Although the company had high load factors, it quickly accommodated thousands more passengers when other airlines’ flights were cancelled.
  • Domestic capacity decreased by 8%, while international capacity decreased by 12%.

Enphase Energy Inc: Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (01/23)

By Baptista Research

  • Enphase delivered solid results for the past quarter driven largely by solid revenues through microinverters which helped them produce an all-around beat.
  • Enphase Energy has recently announced the launch of IQ8 Microinverters in the Netherlands and France, thereby making the foremost expansion into the international markets for this product.
  • In the U.S., the microinverter channel inventory has been very healthy, and its storage channel inventory was slightly elevated because of longer installation times.

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Jan 25
0

Daily Brief India: Mankind Pharma, Asian Paints, JSW Steel Ltd and more

By | Daily Briefs, India

In today’s briefing:

  • Mankind Pharma (6596876Z IN) Pre-IPO: Solid India-Centric Growth Story Fueled by Marquee Brands
  • Asian Paints (APNT IN) | Masking Growth Concerns
  • Morning Views Asia: JSW Steel Ltd, Reliance Industries

Mankind Pharma (6596876Z IN) Pre-IPO: Solid India-Centric Growth Story Fueled by Marquee Brands

By Tina Banerjee

  • Mankind Pharma (6596876Z IN), India’s fourth largest pharmaceutical company, has filed DRHP for INR55B IPO, which is comprised of an OFS of 40M shares by promoters and existing investors.  
  • Mankind has 36 pharma brands that have each achieved annual revenue of more than INR500M. 18 of its brands are among 300 top selling brands of the Indian pharma market.
  • During FY20–22, domestic sales of Mankind had a CAGR of ~16%, which is ~1.5 times that of the Indian pharma market, which grew at a CAGR of ~11%.

Asian Paints (APNT IN) | Masking Growth Concerns

By Pranav Bhavsar

  • Asian Paints (APNT IN) reported flat year-over-year volumes and flat sales in domestic decorative paints in 3Q FY23. The company’s gross margin recovery is aligned with easing raw material prices.  
  • The company attributed the rough quarter to a heavy base from last year’s price increases and a prolonged monsoon, which impacted October volumes.
  • We believe that the volumes are lower than what has been reported.  Increasing competition could challenge APNT’s premium valuation.

Morning Views Asia: JSW Steel Ltd, Reliance Industries

By Charles Macgregor

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

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