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Smartkarma Daily Briefs

Nov 11
0

Daily Brief Consumer: Tata Motors ADR, Golden Agri Resources, LG Energy Solution, Zomato, Coupang, BYD, Haier Smart Home Co Ltd, Booking Holdings, PriyoShop and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Tata Motors ADS Delisting – Here We Go Again – Lots of Fun To Be Had!
  • Tata Motors (TTM) To Delist ADSs: Details & Potential Trades
  • Golden Agri-Resources (GGR SP) – FTSE Selling in December
  • Assessing LG Energy Solution’s Flow Imbalance Situation
  • Zomato (ZOMATO IN) | Food Delivery Expected to Continue Improving
  • Coupang: Time Ditch EV/Sales and Focus on Profitability-Based Multiples
  • BYD Launches Luxury EV Line in Challenge to High-End Foreign Brands
  • Haier Smart Home (6690 HK): Opportunity Knocks as Depressed Valuation Cannot Reflect Outlook
  • Booking Holdings: Major Drivers
  • Bangladesh-Based B2B Ecommerce Firm Eyes $5m Raise

Tata Motors ADS Delisting – Here We Go Again – Lots of Fun To Be Had!

By Travis Lundy

  • Yesterday, with earnings, Tata Motors Ltd (TTMT IN) announced that it would delist its ADS, making an application on or around 13 January.
  • This sounds relatively benign because since 2004 when the ADS was listed, local funding capacity has increased substantially. It may no longer be needed. 
  • But it is MUCH more interesting than that. There is lots of fun to be had here. 

Tata Motors (TTM) To Delist ADSs: Details & Potential Trades

By Brian Freitas

Golden Agri-Resources (GGR SP) – FTSE Selling in December

By Brian Freitas

  • FTSE has announced that it will be changing Golden Agri Resources (GGR SP)‘s nationality from Singapore to Ineligible at the close on 16 December. 
  • This means the stock will be deleted from the FTSE All-World Index at the close on 16 December. We estimate passive trackers will need to sell multiple days ADV.
  • Golden Agri Resources (GGR SP) trades cheaper than a lot of its peers but has outperformed them over the last year. There could be a short-term reversal.

Assessing LG Energy Solution’s Flow Imbalance Situation

By Sanghyun Park

  • LG Energy’s virtually locked-up shares rise to nearly 95%. This should at least partially explain why its price has substantially outperformed the KOSPI in recent months, showing strong downward rigidity.
  • Additional long-term money equivalent to 2-3% of SO can come in for 5% float shares. There is no precedent for a float crunch of this magnitude among top-cap local stocks.
  • It seems necessary to reconsider taking a shorting position for LG Energy even after the 9th of next month when the short-term passives inflow situation is completed.

Zomato (ZOMATO IN) | Food Delivery Expected to Continue Improving

By Pranav Bhavsar

  • Over the last five quarters, monthly transacting customers have increased by 36%, QoQ, the pace could be slower, but the trend remains upwards. 
  • AOVs and Order frequency have the potential to inch up, but only over the long term.
  • Take rates are inching up, delivery fees are going higher, and with a higher market share Zomato (ZOMATO IN) ‘s food delivery business is expected to continue improving. 

Coupang: Time Ditch EV/Sales and Focus on Profitability-Based Multiples

By Oshadhi Kumarasiri

  • South Korea’s largest e-commerce company, Coupang (CPNG US) is no longer a growth stock with revenue expected to start falling on a YoY basis from 4Q22 onwards.
  • Therefore, we think Coupang’s current valuation, which is based on inflated revenue estimates should become redundant.
  • We think a no-growth, low-margin business like Coupang does not deserve to trade north of 10.0x OP, whereas it is currently trading at 15.6x the best-case OP estimate.

BYD Launches Luxury EV Line in Challenge to High-End Foreign Brands

By Caixin Global

  • Chinese carmaker BYD Co. Ltd. has unveiled its first luxury brand of electric vehicles (EV), joining its peers in efforts to impress wealthy domestic buyers
  • The launch marks BYD’s latest step into the high-end auto market as it tries to outgrow its image as a manufacturer of mid- to low-end vehicles
  • BYD is China’s largest EV and hybrid vehicle manufacturer by sales. In October, its wholesale shipments surpassed 200,000 for the second consecutive month

Haier Smart Home (6690 HK): Opportunity Knocks as Depressed Valuation Cannot Reflect Outlook

By Osbert Tang, CFA

  • Acceleration in earnings growth at Haier Smart Home Co Ltd (6690 HK) is an encouraging trend. We are happy to see expansion in both gross and operating margin in 3Q22.
  • Further channel additions for Casarte and digitalisation efforts will bring positive profitability impact. Meanwhile, we welcome HSH’s increase in engagement of suppliers in product design process.
  • Overseas growth has also accelerated in 3Q22 and there are numerous opportunities for HSH to expand its high-end presence and introduce new products in developed country markets. 

Booking Holdings: Major Drivers

By Baptista Research

  • Booking Holdings delivered a positive set of results in the quarter and managed an all-around beat.
  • Their consumers reserved 240 million room nights in Q3, just under 0.25 million more than in Q3 2019.
  • In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Bangladesh-Based B2B Ecommerce Firm Eyes $5m Raise

By Tech in Asia

  • Bangladesh-based ecommerce startup PriyoShop is looking to add US$5 million in a bridge funding round to its cart.
  • Founded in 2020, PriyoShop handles commerce through its app and manages logistics in locations like Dhaka and Chattogram through its own fleet.
  • The company said that third-party logistics companies then take on shipping across the rest of Bangladesh.

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Nov 11
0

Daily Brief Quantitative Analysis: Sector & Factor Performance During Wartime and more

By | Daily Briefs, Quantitative Analysis

In today’s briefing:

  • Sector & Factor Performance During Wartime
  • ASX Short Interest Weekly (Nov 4th): Telstra, Macquarie, Wesfarmers

Sector & Factor Performance During Wartime

By Nicolas Rabener

  • The S&P 500 increased during two of the three largest wars of the United States
  • Value, size, and momentum factors had positive returns during WW II
  • The top and worst-performing industries during WW II were diverse

ASX Short Interest Weekly (Nov 4th): Telstra, Macquarie, Wesfarmers

By Ke Yan, CFA, FRM

  • We analyzed the changes in short interest of ASX Stocks as of Nov 4th (reported today) which has an aggregated short interest worth USD18.4bn.
  • We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases & decreases in short value, short as multiple of ADT.
  • We highlight short interest changes in Telstra, Macquarie, Wesfarmers, BHP, Newcrest Mining, Nextdc, Coles.

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Nov 11
0

Daily Brief Private Markets: Speedoc Snags US$28M to Bring Advanced Medical Care to Homes in SG and more

By | Daily Briefs, Private Markets

In today’s briefing:

  • Speedoc Snags US$28M to Bring Advanced Medical Care to Homes in SG, MY
  • Bangladesh-Based B2B Ecommerce Firm Eyes $5m Raise
  • Better Bite Ventures, Shiok Meats CEO Invest in Animal-Free Dairy Startup Phyx44

Speedoc Snags US$28M to Bring Advanced Medical Care to Homes in SG, MY

By e27

  • Speedoc, a virtual clinic and healthcare solutions platform that brings advanced medical care to homes in Singapore and Malaysia, has announced closing its US$28 million pre-series B funding round.
  • Founded in 2017, Speedoc is a virtual clinic and healthcare solutions platform enabling users access to home-based medical care and services. 
  • It aims to drive medical care needs out of hospitals and clinics by delivering a full suite of healthcare services to homes.

Bangladesh-Based B2B Ecommerce Firm Eyes $5m Raise

By Tech in Asia

  • Bangladesh-based ecommerce startup PriyoShop is looking to add US$5 million in a bridge funding round to its cart.
  • Founded in 2020, PriyoShop handles commerce through its app and manages logistics in locations like Dhaka and Chattogram through its own fleet.
  • The company said that third-party logistics companies then take on shipping across the rest of Bangladesh.

Better Bite Ventures, Shiok Meats CEO Invest in Animal-Free Dairy Startup Phyx44

By e27

  • Phyx44, a biotech-enabled food science startup based in Bengaluru, India, has secured US$1.2 million in seed capital.

  • The startup will use the money to accelerate R&D, expand the team and work on the co-development of product formulation with key partners.

  • Founded in early 2021, Phyx44 develops animal-free milk proteins and fats for use in dairy products. It bets on microbial fermentation as the best way to replicate dairy.

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Nov 11
0

Daily Brief Credit: Morning Views Asia: Wynn Macau Ltd and more

By | Credit, Daily Briefs

In today’s briefing:

  • Morning Views Asia: Wynn Macau Ltd
  • Tata Motors – Earnings Flash – Q2 FY 2022-23 Results – Lucror Analytics

Morning Views Asia: Wynn Macau Ltd

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.

Tata Motors – Earnings Flash – Q2 FY 2022-23 Results – Lucror Analytics

By Trung Nguyen

Tata Motors’ Q2/22-23 results were better than expected, with reasonable improvement in revenue and earnings. That said, this was partly due to the low base effect last year, owing to COVID-19. The financial risk profile has improved slightly, on the back of the higher earnings and stable debt. Liquidity appears to be adequate, especially at Jaguar Land Rover (JLR).

The operating environment will likely remain difficult in FY 2022-23, and possibly for even longer. While we derive comfort from the growing order book, this accounts for only c. 50% of full-year deliveries for now, and is hence insufficient to provide firm revenue visibility. Still, the order book development indicates that demand for JLR’s vehicles is exceeding its ability to deliver.

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Nov 11
0

Daily Brief Technical Analysis: Taiwan Semiconductor Manufacturing Co Ltd (TSM US): TSS Target Achieved in 3 Days (+13.4%) and more

By | Daily Briefs, Technical Analysis

In today’s briefing:

  • Taiwan Semiconductor Manufacturing Co Ltd (TSM US): TSS Target Achieved in 3 Days (+13.4%)

Taiwan Semiconductor Manufacturing Co Ltd (TSM US): TSS Target Achieved in 3 Days (+13.4%)

By David Coloretti, CMT

  • The development of TSS has been a life’s work. We are pleased to acknowledge that our second TSS publication on Smartkarma produced an impressive and rapid result.
  • On 7 November we determined that the new interim downtrend low below 59.51 had failed and would likely produce a minimum 6-8% correction in 1-2 weeks. 
  • TSM US subsequently produced a 13.4% gain in the following 3 days. Job done! Chart and further details attached.

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Nov 11
0

Daily Brief Thematic (Sector/Industry): Good Morning Japan | Inflation Slain? = Buy Everything Rally and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • Good Morning Japan | Inflation Slain? = Buy Everything Rally
  • Cosmetics-Makers Slash Double 11 Marketing Budgets as Consumer Spending Slumps

Good Morning Japan | Inflation Slain? = Buy Everything Rally

By Mark Chadwick

  • Good Morning Japan: We strive to provide the best macro, stock and thematic overnight news that will impact the trading day in Japan. Like this ?  Feedback appreciated !
  • BUY EVERY RALLY:  Equities, USD, Yen – market now priced in peak CPI and Fed Pivot. Still, we have a ways to go.
  • NKY to up 1.8% vs cash; Yen now 141 handle – not positive for all companies; Buybacks continue at a torried pace; Machine Tools -YoY. Negative Fanuc

Cosmetics-Makers Slash Double 11 Marketing Budgets as Consumer Spending Slumps

By Caixin Global

  • China’s cosmetics companies are just one sector to have cut marketing budgets for this year’s “Double 11” shopping season as retail spending continues to dwindle and logistics services suffer amid Covid-19 outbreaks.
  • Merchants are focusing on sales growth during the annual e-commerce bonanza instead of spending vast sums on marketing and promotional campaigns.
  • The Double 11 event, also known as “Singles’ Day,” is one of the biggest money-earners in the retail calendar.

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Nov 11
0

Daily Brief Event-Driven: Tata Motors ADS Delisting – Here We Go Again – Lots of Fun To Be Had! and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • Tata Motors ADS Delisting – Here We Go Again – Lots of Fun To Be Had!
  • MSCI Nov 2022 SAIR: In-Line; Plus a Few Surprises
  • Tata Motors (TTM) To Delist ADSs: Details & Potential Trades
  • OZ Minerals (OZL) – Copper and Comps Have Caught Up
  • Golden Energy (GER SP): Widjaja Family’s Low-Balled Offer
  • Origin Energy’s (ORG AU) Indicative Offer of A$9.00 from Brookfield/EIG
  • Golden Agri-Resources (GGR SP) – FTSE Selling in December
  • Assessing LG Energy Solution’s Flow Imbalance Situation
  • EQD | Tencent (700 HK): Buy Calendar Spreads into Earnings
  • Perpetual (PPT AU) Rejects a Revised A$33 Offer; Pendal (PDL AU) Deal Looks Toast

Tata Motors ADS Delisting – Here We Go Again – Lots of Fun To Be Had!

By Travis Lundy

  • Yesterday, with earnings, Tata Motors Ltd (TTMT IN) announced that it would delist its ADS, making an application on or around 13 January.
  • This sounds relatively benign because since 2004 when the ADS was listed, local funding capacity has increased substantially. It may no longer be needed. 
  • But it is MUCH more interesting than that. There is lots of fun to be had here. 

MSCI Nov 2022 SAIR: In-Line; Plus a Few Surprises

By Brian Freitas

Tata Motors (TTM) To Delist ADSs: Details & Potential Trades

By Brian Freitas

OZ Minerals (OZL) – Copper and Comps Have Caught Up

By Travis Lundy

  • In August, BHP Group Ltd (BHP AU) launched a $25/share bid – a price it saw as attractive and what target OZ Minerals Ltd (OZL AU) saw as opportunistic. 
  • Copper had fallen, and peer stock prices had fallen too. Since then, copper has rebounded and peers have too so what was a 25-30% premium no longer exists.
  • This means the price of OZL should “enjoy” different dynamics going forward.

Golden Energy (GER SP): Widjaja Family’s Low-Balled Offer

By David Blennerhassett

  • Golden Energy & Resources (GER SP) has proposed in-specie-ing its holding in Golden Energy Mines (GEMS IJ), subsequent to which the Widjaja family will undertake an Exit Offer.
  • Ex-GEMS, the family is Offering S$0.16/share. That’s insulting. And the Offer was announced after GEAR’s share price had fallen 26%.  The Exit Offer has been declared final.
  • GEAR’s jewel is the stake in GEMS, and shareholders are afforded future exposure. However, the stub ops are worth considerably more than S$0.16/share. 

Origin Energy’s (ORG AU) Indicative Offer of A$9.00 from Brookfield/EIG

By Arun George

  • Origin Energy (ORG AU) received a conditional, non-binding indicative proposal from Brookfield and EIG at A$9.00 per share, a 54.9%  premium to the undisturbed price (9 November).
  • The Board will grant eight weeks of due diligence access and intends to unanimously recommend a binding offer at A$9.00 per share. The offer is attractive.
  • Regulatory approvals are an overhang and would likely require price concessions. At the last close, the gross spread to the offer is 14.9%.

Golden Agri-Resources (GGR SP) – FTSE Selling in December

By Brian Freitas

  • FTSE has announced that it will be changing Golden Agri Resources (GGR SP)‘s nationality from Singapore to Ineligible at the close on 16 December. 
  • This means the stock will be deleted from the FTSE All-World Index at the close on 16 December. We estimate passive trackers will need to sell multiple days ADV.
  • Golden Agri Resources (GGR SP) trades cheaper than a lot of its peers but has outperformed them over the last year. There could be a short-term reversal.

Assessing LG Energy Solution’s Flow Imbalance Situation

By Sanghyun Park

  • LG Energy’s virtually locked-up shares rise to nearly 95%. This should at least partially explain why its price has substantially outperformed the KOSPI in recent months, showing strong downward rigidity.
  • Additional long-term money equivalent to 2-3% of SO can come in for 5% float shares. There is no precedent for a float crunch of this magnitude among top-cap local stocks.
  • It seems necessary to reconsider taking a shorting position for LG Energy even after the 9th of next month when the short-term passives inflow situation is completed.

EQD | Tencent (700 HK): Buy Calendar Spreads into Earnings

By Simon Harris

  • Tencent are due to report earnings next week on Nov 16th
  • Implied vols are bid up into the event causing an inverted term structure
  • We see an opportunity to buy long calendar spreads to play a reversion in vol surface

Perpetual (PPT AU) Rejects a Revised A$33 Offer; Pendal (PDL AU) Deal Looks Toast

By Arun George

  • Perpetual Ltd (PPT AU) has rejected a revised non-binding indicative proposal from Regal/BPEA EQT at A$33.00 per share, a 10% premium to the previously rejected offer of A$30.00 per share. 
  • While the Regal Partners (RPL AU)/BPEA EQT revised offer is not quite a knockout bid, it is good enough to warrant the requested short due diligence period.
  • The PPT/Pendal Group (PDL AU) deal is seemingly dead. The A$23 million break fee is more than compensated by the A$172 million value uplift between Regal/BPEA EQT’s two proposals.

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Nov 11
0

Daily Brief ECM: Axis Bank Placement – Second Deal for the Month but This Is Very Well Flagged and more

By | Daily Briefs, ECM

In today’s briefing:

  • Axis Bank Placement – Second Deal for the Month but This Is Very Well Flagged
  • Archean Chemical Industries IPO – Strong Growth Makes It Worth a Shot
  • Shanghai Tofflon Science Placement (300171.CH)-Industry Periodicity May Put Valuation Under Pressure
  • Uber Technologies: Advertising Division & Other Drivers
  • Fiserv Inc: The Vert Launch & Other Drivers
  • CVS Health Corp: Acquisition of Signify Health & Other Drivers
  • L3Harris Corp: Acquisition of Viasat’s Tactical Data Links Business & Other Drivers

Axis Bank Placement – Second Deal for the Month but This Is Very Well Flagged

By Sumeet Singh

  • The Government of India (GoI) aims to raise around US$500m via selling a 1.4% stake in Axis Bank Ltd (AXSB IN). 
  • This won’t be the first selldown by GoI as it has been reducing its stake since 2019. We have covered a number of the past deals in the name.
  • In this note, we will run the deal through our ECM framework and comment on other deal dynamics.

Archean Chemical Industries IPO – Strong Growth Makes It Worth a Shot

By Ethan Aw

  • Archean Chemical Industries (0810406D IN) is looking to raise about US$178m in its India IPO. 
  • Archean Chemical Industries (ACI) is a specialty marine chemical manufacturer in India focused on producing and exporting bromine, industrial salt, and sulphate of potash to customers around the world. 
  • We have looked at the background of the deal in our earlier notes. In this note, we will talk about the peer comparison and valuations.

Shanghai Tofflon Science Placement (300171.CH)-Industry Periodicity May Put Valuation Under Pressure

By Xinyao (Criss) Wang

  • We analyzed three main factors to drive high performance growth of Tofflon in recent years, but these factors have become untenable. The remaining opportunity mainly lies in import substitution.
  • Every explosive growth of Tofflon benefits from positive industry trend, whose periodicity is obvious. It’s not a good investment opportunity for long run,but a staged investment opportunity in short term.
  • Tofflon is in the transition from explosive growth to steady growth. The change in industry demand would suppress valuation system. Buy low and sell high,rather than hold for long time.

Uber Technologies: Advertising Division & Other Drivers

By Baptista Research

  • Uber delivered a mixed set of results as its revenues surpassed Wall Street expectations with gross bookings up 32% year over year.
  • The company may have delivered a positive EBITDA over its guidance range as well as decent free cash flows but its overall bottom-line losses were wider than Wall Street expectations.
  • In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Fiserv Inc: The Vert Launch & Other Drivers

By Baptista Research

  • Fiserv had a decent quarter on the revenue front and delivered a double-digit growth as it continues to demonstrate the strength of its client base.
  • Merchants took advantage of the more value-added business, continued to deliver better experiences, and opened up new businesses.
  • Also, Fiserv was awarded another quarter with California State Comptroller for the cards that support different disbursement needs.

CVS Health Corp: Acquisition of Signify Health & Other Drivers

By Baptista Research

  • CVS Health delivered another strong quarter.
  • The company increased sales by 10% compared to the last year, reaching over $81 billion and surpassed Wall Street expectations in terms of revenues as well as earnings.
  • The Health Care Benefits segment also had a good quarter.

L3Harris Corp: Acquisition of Viasat’s Tactical Data Links Business & Other Drivers

By Baptista Research

  • L3Harris delivered a highly disappointing set of results for the previous quarter as it failed to meet Wall Street expectations in terms of revenues as well as earnings.
  • The reduced margins and revenue have been responsible for the guidance decline in free cash flow and EPS.
  • L3Harris performed well in the non-traditional prime business with a record quarter of more than $5 billion in funded orders.

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Nov 11
0

Daily Brief Equity Bottom-Up: Zomato (ZOMATO IN) | Food Delivery Expected to Continue Improving and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Zomato (ZOMATO IN) | Food Delivery Expected to Continue Improving
  • Coupang: Time Ditch EV/Sales and Focus on Profitability-Based Multiples
  • BYD Launches Luxury EV Line in Challenge to High-End Foreign Brands
  • 2023 High Conviction: Naver Corp – “The Genius Turtle”
  • Sino-American Silicon Products: Increasing Concerns About a Global Semiconductor Downturn
  • Haier Smart Home (6690 HK): Opportunity Knocks as Depressed Valuation Cannot Reflect Outlook
  • Booking Holdings: Major Drivers
  • Dr Lal PathLabs (DLPL IN): Q2FY23 Review- Volume Driven Sales Growth; Sequential Margin Improvement
  • Clorox Inc: New Eco-Friendly Product Launches & Other Drivers
  • Caterpillar Inc: EV Prototype Launches & Other Drivers

Zomato (ZOMATO IN) | Food Delivery Expected to Continue Improving

By Pranav Bhavsar

  • Over the last five quarters, monthly transacting customers have increased by 36%, QoQ, the pace could be slower, but the trend remains upwards. 
  • AOVs and Order frequency have the potential to inch up, but only over the long term.
  • Take rates are inching up, delivery fees are going higher, and with a higher market share Zomato (ZOMATO IN) ‘s food delivery business is expected to continue improving. 

Coupang: Time Ditch EV/Sales and Focus on Profitability-Based Multiples

By Oshadhi Kumarasiri

  • South Korea’s largest e-commerce company, Coupang (CPNG US) is no longer a growth stock with revenue expected to start falling on a YoY basis from 4Q22 onwards.
  • Therefore, we think Coupang’s current valuation, which is based on inflated revenue estimates should become redundant.
  • We think a no-growth, low-margin business like Coupang does not deserve to trade north of 10.0x OP, whereas it is currently trading at 15.6x the best-case OP estimate.

BYD Launches Luxury EV Line in Challenge to High-End Foreign Brands

By Caixin Global

  • Chinese carmaker BYD Co. Ltd. has unveiled its first luxury brand of electric vehicles (EV), joining its peers in efforts to impress wealthy domestic buyers
  • The launch marks BYD’s latest step into the high-end auto market as it tries to outgrow its image as a manufacturer of mid- to low-end vehicles
  • BYD is China’s largest EV and hybrid vehicle manufacturer by sales. In October, its wholesale shipments surpassed 200,000 for the second consecutive month

2023 High Conviction: Naver Corp – “The Genius Turtle”

By Douglas Kim

  • Naver Corp (035420 KS) (market cap of 28.9 trillion won or $20.9 billion) is our 2023 high conviction play.
  • In this report, we provide a deep-dive analysis of Naver Corp and why we believe this stock has an attractive upside of 30%+ by the end of 2023. 
  • Having followed the company for many years, I often like to think of Naver as“The Genius Turtle.”

Sino-American Silicon Products: Increasing Concerns About a Global Semiconductor Downturn

By Douglas Kim

  • Our NAV analysis suggests a target price of 146.5 TWD for Sino-American Silicon Products (SAS), representing a lack of upside from current price.
  • Sino-American Silicon Products’ stake in Global wafers represents 109% of SAS’s current market cap. 
  • Two major risk factors on SAS include concerns about a global semiconductor sector downturn combined with increasing hostile political conflict between China and Taiwan. 

Haier Smart Home (6690 HK): Opportunity Knocks as Depressed Valuation Cannot Reflect Outlook

By Osbert Tang, CFA

  • Acceleration in earnings growth at Haier Smart Home Co Ltd (6690 HK) is an encouraging trend. We are happy to see expansion in both gross and operating margin in 3Q22.
  • Further channel additions for Casarte and digitalisation efforts will bring positive profitability impact. Meanwhile, we welcome HSH’s increase in engagement of suppliers in product design process.
  • Overseas growth has also accelerated in 3Q22 and there are numerous opportunities for HSH to expand its high-end presence and introduce new products in developed country markets. 

Booking Holdings: Major Drivers

By Baptista Research

  • Booking Holdings delivered a positive set of results in the quarter and managed an all-around beat.
  • Their consumers reserved 240 million room nights in Q3, just under 0.25 million more than in Q3 2019.
  • In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Dr Lal PathLabs (DLPL IN): Q2FY23 Review- Volume Driven Sales Growth; Sequential Margin Improvement

By Tina Banerjee

  • Dr Lal PathLabs Ltd (DLPL IN) reported revenue growth of 7% y/y in Q2FY23, driven by 15% y/y growth in non-COVID business, which clocked highest ever quarterly revenue.  
  • Although business growth was mainly driven by a double-digit patient volume growth, average realization per patient also increased 3% y/y to INR746.
  • Amid rising competition, the company reported sequential improvement in bottom-line. Normalized EBITDA increased 20% compared to Q1FY23. Normalized EBITDA margin improved 310 basis points sequentially.

Clorox Inc: New Eco-Friendly Product Launches & Other Drivers

By Baptista Research

  • Despite the continuing difficult and unstable global operating environment, Clorox managed an all-around beat in the last quarterly results.
  • The fact remains that Clorox is already facing a number of macro challenges and future quarters may not be showing such a positive performance.
  • In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Caterpillar Inc: EV Prototype Launches & Other Drivers

By Baptista Research

  • Caterpillar delivered another solid quarter with an all around beat and generated strong ME&T free cash flow and a higher operating profit margin.
  • To expand its offerings in the construction industry, Caterpillar is launching four prototypes of electric vehicles that are powered by lithium-ion batteries.
  • We provide the stock of Caterpillar with a ‘Hold’ rating and a revision in the target price.

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Nov 11
0

Daily Brief Crypto: Why the FTX Collapse Is a Big Deal and more

By | Crypto, Daily Briefs

In today’s briefing:

  • Why the FTX Collapse Is a Big Deal

Why the FTX Collapse Is a Big Deal

By Tech in Asia

  • FTX is one of the largest crypto exchanges in the world in terms of market capitalization – at one point it was second only to Binance. It is one of the biggest collapses the crypto ecosystem has seen
  • FTX has a suite of big-name investors – including Temasek, SoftBank, Sequoia Capital, and BlackRock – that have poured US$1.8 billion into the exchange.
  • FTX was the white knight that prevented its fellow crypto firms from dying. It was a savior who helped to stabilize the market.

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