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Smartkarma Daily Briefs

Jan 14
0

Daily Brief Utilities: Naturgy Energy Group SA and more

By | Daily Briefs, Utilities Sector

In today’s briefing:

  • IFM Increases Its Stake in Naturgy

IFM Increases Its Stake in Naturgy

By Jesus Rodriguez Aguilar

  • Australian institutional investor IFM has informed the Spanish National Securities Market Commission (CNMV) that it has increased its stake in Naturgy Energy Group SA (NTGY SM) to just over 14%.
  • Corporate politics: IFM is still far from the 17% threshold that would grant two sits on the Board of Naturgy (and the initial minimum acceptance condition in the partial offer).
  • Speculative buy (TP €27.42, DCF-based). IFM’s intention of increasing its stake may continue to drive up the share price.

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Jan 14
0

Daily Brief TMT/Internet: OASIS Corp and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Oasis Corp IPO Valuation Analysis

Oasis Corp IPO Valuation Analysis

By Douglas Kim

  • Our base case valuation of Oasis Corp is EV of 605 billion won, implied market cap of 788 billion won, and target price of 24,847 won per share. 
  • This is 18.5% lower than the low end of the IPO price range. Given the lack of upside, we have a Negative View of the Oasis Corp IPO.
  • The end of COVID pandemic and relaxed regulations for hypermarkets in early morning delivery services are likely to have greater negative impact on Oasis Corp. 

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Jan 14
0

Daily Brief Health Care: Tokyo Stock Exchange Tokyo Price Index Topix and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Transitional Measures Will End in 2-3 Years, but Will Prime Market Listing Criteria Remain the Same?

Transitional Measures Will End in 2-3 Years, but Will Prime Market Listing Criteria Remain the Same?

By Aki Matsumoto

  • TSE will probably settle on a compromise: “transitional measures will be completed as soon as possible,” while “measures to minimize negative impacts will also be adopted.
  • Of 271 companies that failed to meet prime market listing criteria and are allowed to list under transitional measures, 227 (98%) don’t have tradable market capitalization of 10 billion yen.
  • The market capitalization of companies that disclosed plans to meet listing criteria within 3 years increased, while those that stated that they would meet criteria in over 3 years decreased.

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  • ✓ Events & Webinars
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Jan 14
0

Daily Brief Financials: Agile Property Holdings, CIFI Holdings, Blackrock Inc, Progressive Corp and more

By | Daily Briefs, Financials

In today’s briefing:

  • Chinese Property Weekly – 13 January 2023 – Lucror Analytics
  • Weekly Wrap – 13 Jan 2023
  • BlackRock’s Q4 Earnings Beat Conveys An Inflection Point
  • Progressive Corp: Initiation of Coverage – Technological Superiority & Other Drivers

Chinese Property Weekly – 13 January 2023 – Lucror Analytics

By Charles Macgregor

The Chinese Property Weekly focuses on providing updates in the Chinese real-estate sector, including recent regulatory and company developments, top and bottom performers, rating actions, as well as a list of bond maturities in the next 30 days.

Weekly Wrap – 13 Jan 2023

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. Lippo Karawaci
  2. China SCE
  3. China Jinmao Holdings
  4. Guangzhou R&F Properties
  5. Sunac China Holdings

and more…

BlackRock’s Q4 Earnings Beat Conveys An Inflection Point

By Pearl Gray Equity and Research

  • BlackRock’s Q4 earnings report suggests an inflection point might be near.
  • The company managed to mitigate systemic risks during its latest quarter, preserving its base rate rate-centric business model.
  • In addition, aggressive investment in technology prompted a rise in product launch costs, according to the report.

Progressive Corp: Initiation of Coverage – Technological Superiority & Other Drivers

By Baptista Research

  • This is our first report on auto insurance major, Progressive Corp.
  • The company had a disappointing quarter and failed to meet Wall Street expectations in terms of revenues as well as earnings.
  • This quarter, the company increased personal auto rates in 20 states at an average of around 5% each day for an overall countrywide premium impact of +2%.

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Jan 14
0

Daily Brief Consumer: Melco International Development, Seven & I Holdings, Allied Blenders & Distillers, DoorDash Inc and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Melco Trading “Cheap” As Macau Opens Up
  • Seven & I’s Valuation Nears Breaking Point
  • Allied Blenders and Distillers Pre-IPO – Yet to Recover from COVID-19
  • DoorDash Inc.: Initiation of Coverage – Recent Collaborations & Other Drivers

Melco Trading “Cheap” As Macau Opens Up

By David Blennerhassett

  • After Macau’s government renewed the concession periods for the city’s six incumbent gambling concessionaires for another 10 years, the key players are up 86% on average
  • Both Melco International Development (200 HK) and Melco Resorts & Entertainment (MLCO US) have gained a little over 100%. 
  • Melco’s NAV discount is back out to 36%. The simple ratio – Melco/MCLO – is around the lowest level since Melco began consolidating MCLO in early 2017.

Seven & I’s Valuation Nears Breaking Point

By Oshadhi Kumarasiri

  • Seven & I Holdings (3382 JP)‘s Q3 OP of ¥160.1bn was a significant surprise to the upside with consensus OP at ¥130.2bn and us expecting around ¥125-130bn.
  • This was mostly driven by an unexpected upside to the retail fuel margin while gasoline prices have come down by more than 34%.
  • Nevertheless, we would expect this temporary misalignment in retail fuel margin to correct over the next few quarters, resulting in around 35-40% downside to the company’s valuation multiples.

Allied Blenders and Distillers Pre-IPO – Yet to Recover from COVID-19

By Ethan Aw

  • Allied Blenders & Distillers (ABD IN) is looking to raise about US$250m in its upcoming India IPO. I-Sec, Axis Capital, JM Financial, Kotak and Equirus Capital will be the bookrunners.
  • ABD is the largest Indian-owned Indian-made foreign liquor (IMFL) company and the third largest IMFL company in India, in terms of annual sales volumes between FY14 and FY21.
  • ABD has grown its brand over time and managed to stay profitable, despite COVID-19. However, sales volume has yet to return to pre-COVID levels, along with its profitability. 

DoorDash Inc.: Initiation of Coverage – Recent Collaborations & Other Drivers

By Baptista Research

  • This is our first report on DoorDash, the largest online food aggregator in the U.S.
  • The company is a market leader in its domain and has demonstrated incredible resilience.
  • Even in the last quarter, its market revenues have increased significantly despite the oil crisis, relatively persistent inflation, and the European war.

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  • ✓ Events & Webinars
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Jan 14
0

Daily Brief Indonesia: CIFI Holdings and more

By | Daily Briefs, Indonesia

In today’s briefing:

  • Weekly Wrap – 13 Jan 2023

Weekly Wrap – 13 Jan 2023

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. Lippo Karawaci
  2. China SCE
  3. China Jinmao Holdings
  4. Guangzhou R&F Properties
  5. Sunac China Holdings

and more…

💡 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
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Jan 14
0

Daily Brief United States: Ecolab Inc, Ppg Industries, Progressive Corp, United Rentals, Blackrock Inc, DoorDash Inc and more

By | Daily Briefs, United States

In today’s briefing:

  • Ecolab Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report
  • PPG Industries Inc.: Initiation of Coverage – Business Model & Key Drivers
  • Ecolab Inc.: Initiation of Coverage – Business Model & Key Drivers
  • PPG Industries Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report
  • Progressive Corp: Initiation of Coverage – Technological Superiority & Other Drivers
  • United Rentals Inc.: Initiation of Coverage – Acquisition-Led Growth & Other Drivers
  • BlackRock’s Q4 Earnings Beat Conveys An Inflection Point
  • United Rentals Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report
  • DoorDash Inc.: Initiation of Coverage – Recent Collaborations & Other Drivers

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

By Baptista Research

  • Ecolab is a major provider of water, hygiene and infection prevention solutions and services.
  • The company has been benefitting from the recent price increases which has resulted in consistent double-digit organic sales growth in recent results.
  • They also invested in select breakthrough innovations to help customers save more water, energy, and cost, especially in Europe.

PPG Industries Inc.: Initiation of Coverage – Business Model & Key Drivers

By Baptista Research

  • This is our first report on PPG, a well-known manufacturer of paints, coatings and specialty materials.
  • The company performed well in several of its companies, notably PPG Comex.
  • They also began collaborating with the HD Supply team to find new paint clients, particularly in the commercial maintenance sector.

Ecolab Inc.: Initiation of Coverage – Business Model & Key Drivers

By Baptista Research

  • This is our first report on Ecolab, a major provider of water, hygiene and infection prevention solutions and services.
  • The company delivered a below-par result with revenues just about meeting Wall Street expectations on account of the price increases.
  • The company saw overall pricing increasing from 9% to 12% and consistent double-digit organic sales growth of 13%.

PPG Industries Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report

By Baptista Research

  • PPG is a renowned manufacturer and distributor of paints, coatings and specialty materials.
  • The company’s recent financial performance has been solid and has been supported by ongoing real-time price hikes.
  • The company has consistently performed well in several of its companies, notably PPG Comex.

Progressive Corp: Initiation of Coverage – Technological Superiority & Other Drivers

By Baptista Research

  • This is our first report on auto insurance major, Progressive Corp.
  • The company had a disappointing quarter and failed to meet Wall Street expectations in terms of revenues as well as earnings.
  • This quarter, the company increased personal auto rates in 20 states at an average of around 5% each day for an overall countrywide premium impact of +2%.

United Rentals Inc.: Initiation of Coverage – Acquisition-Led Growth & Other Drivers

By Baptista Research

  • This is our first report on United Rentals, one of the largest equipment rental companies in the world, known for renting out construction, aerial and industrial equipment, general tools and light equipment.
  • The company’s fleet productivity increased by roughly 9%, while rental revenue increased by 20% year over year in the last quarter.
  • The demand for its equipment rental services is relatively high, even though some parts of the economy are slowing down.

BlackRock’s Q4 Earnings Beat Conveys An Inflection Point

By Pearl Gray Equity and Research

  • BlackRock’s Q4 earnings report suggests an inflection point might be near.
  • The company managed to mitigate systemic risks during its latest quarter, preserving its base rate rate-centric business model.
  • In addition, aggressive investment in technology prompted a rise in product launch costs, according to the report.

United Rentals Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report

By Baptista Research

  • United Rentals is one of the largest equipment rental companies in the world, known for renting out construction, aerial and industrial equipment, general tools and light equipment.
  • The company is operating in a favorable operational climate and its fleet productivity has been increasing as per recent results, resulting in a higher rental revenue.
  • The demand for its equipment rental services is relatively high, even though some parts of the economy are slowing down.

DoorDash Inc.: Initiation of Coverage – Recent Collaborations & Other Drivers

By Baptista Research

  • This is our first report on DoorDash, the largest online food aggregator in the U.S.
  • The company is a market leader in its domain and has demonstrated incredible resilience.
  • Even in the last quarter, its market revenues have increased significantly despite the oil crisis, relatively persistent inflation, and the European war.

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

Sign Up for Free

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

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
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Jan 14
0

Daily Brief India: Allied Blenders & Distillers and more

By | Daily Briefs, India

In today’s briefing:

  • Allied Blenders and Distillers Pre-IPO – Yet to Recover from COVID-19

Allied Blenders and Distillers Pre-IPO – Yet to Recover from COVID-19

By Ethan Aw

  • Allied Blenders & Distillers (ABD IN) is looking to raise about US$250m in its upcoming India IPO. I-Sec, Axis Capital, JM Financial, Kotak and Equirus Capital will be the bookrunners.
  • ABD is the largest Indian-owned Indian-made foreign liquor (IMFL) company and the third largest IMFL company in India, in terms of annual sales volumes between FY14 and FY21.
  • ABD has grown its brand over time and managed to stay profitable, despite COVID-19. However, sales volume has yet to return to pre-COVID levels, along with its profitability. 

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

Sign Up for Free

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

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Jan 14
0

Daily Brief Japan: Seven & I Holdings, Tokyo Stock Exchange Tokyo Price Index Topix and more

By | Daily Briefs, Japan

In today’s briefing:

  • Seven & I’s Valuation Nears Breaking Point
  • Transitional Measures Will End in 2-3 Years, but Will Prime Market Listing Criteria Remain the Same?

Seven & I’s Valuation Nears Breaking Point

By Oshadhi Kumarasiri

  • Seven & I Holdings (3382 JP)‘s Q3 OP of ¥160.1bn was a significant surprise to the upside with consensus OP at ¥130.2bn and us expecting around ¥125-130bn.
  • This was mostly driven by an unexpected upside to the retail fuel margin while gasoline prices have come down by more than 34%.
  • Nevertheless, we would expect this temporary misalignment in retail fuel margin to correct over the next few quarters, resulting in around 35-40% downside to the company’s valuation multiples.

Transitional Measures Will End in 2-3 Years, but Will Prime Market Listing Criteria Remain the Same?

By Aki Matsumoto

  • TSE will probably settle on a compromise: “transitional measures will be completed as soon as possible,” while “measures to minimize negative impacts will also be adopted.
  • Of 271 companies that failed to meet prime market listing criteria and are allowed to list under transitional measures, 227 (98%) don’t have tradable market capitalization of 10 billion yen.
  • The market capitalization of companies that disclosed plans to meet listing criteria within 3 years increased, while those that stated that they would meet criteria in over 3 years decreased.

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

Sign Up for Free

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

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Jan 14
0

Daily Brief South Korea: OASIS Corp and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Oasis Corp IPO Valuation Analysis

Oasis Corp IPO Valuation Analysis

By Douglas Kim

  • Our base case valuation of Oasis Corp is EV of 605 billion won, implied market cap of 788 billion won, and target price of 24,847 won per share. 
  • This is 18.5% lower than the low end of the IPO price range. Given the lack of upside, we have a Negative View of the Oasis Corp IPO.
  • The end of COVID pandemic and relaxed regulations for hypermarkets in early morning delivery services are likely to have greater negative impact on Oasis Corp. 

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

Sign Up for Free

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

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