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Smartkarma Daily Briefs

Health Care: Burning Rock Biotech and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Burning Rock Biotech (BNR US) 1Q22: Double-Digit Revenue Growth; China Re-Opening to Boost Recovery

Burning Rock Biotech (BNR US) 1Q22: Double-Digit Revenue Growth; China Re-Opening to Boost Recovery

By Tina Banerjee

  • Burning Rock Biotech (BNR US) reported strong Q1 2022 results, with accelerated double-digit revenue growth of 27% y/y, higher than full year 2022 revenue growth guidance of 22%.
  • Operating loss widened due to 41% y/y surge in opex, primarily attributed to higher staff cost, which resulted from an increase in headcount.
  • Management reiterated 2022 revenue growth guidance of 22% y/y. With Shanghai re-opening, this seems to be achievable.

Before it’s here, it’s on Smartkarma

India: Edelweiss Financial Services, Dilip Buildcon Ltd, Aarti Industries, Infosys Ltd, Stove Kraft, Sundaram Finance, Fine Organic Industries Ltd and more

By | Daily Briefs, India

In today’s briefing:

  • Edelweiss: On Track for Strong FY23
  • Dilip Buildcon Ltd – Fixed Cost Projects Affect Margins
  • Aarti Industries – Growth Outlook Backed by Expansion Plans in Growing Chemistries
  • Infosys – Thrust Should Have Been on Core Services and ‘essential’ Digital
  • Stove Kraft Limited – Margin Pressure Offsets Topline Growth; Exports Situation
  • Sundaram Finance: Demand Pick-Up Encouraging, Asset Quality Improves
  • Fine Organic Industries (4QFY22): Blockbuster Quarter!

Edelweiss: On Track for Strong FY23

By Ankit Agrawal, CFA

  • After a tough 3Y since the IL&FS crisis, Edelweiss’ credit business is now getting back on track. Asset quality has normalized to <2% Net NPA.
  • Edelweiss’ other businesses continue to post robust growth. ARC, Asset Management and Insurance businesses are scaling up well. Wealth Management business is on track for listing by Feb 2023.
  • At a market cap of INR 5200cr, Edelweiss is trading cheap even if one ascribes zero valuation to its Credit business.

Dilip Buildcon Ltd – Fixed Cost Projects Affect Margins

By Nirmal Bang

  • Operational performance and guidance: For FY22, DBL reported revenue of Rs90bn, down 2.2% YoY.
  • Asset monetization: The management had signed a term sheet for the sale of 10 HAM assets to Shrem InVIT.
  • Order book: The current orderbook stands at Rs255bn, with 45% contribution from Roads, 17% from Irrigation, 22.5% from Mining, 9% from Tunnel, 5% from Special Bridges and the balance from Airport & Metros.

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.


Aarti Industries – Growth Outlook Backed by Expansion Plans in Growing Chemistries

By Axis Direct

  • Expansion Led Growth: The management has also guided for a Capex of Rs 3,000 Cr for the next 2 years.
  • The Capex will be majorly for adding more downstream products in the current benzene chain, new Chloro Toluene chain, and debottlenecking of the existing products.
  • All capacities set up during FY22 should ramp up and clock utilisation of ~70-90% by the end of FY24.

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.


Infosys – Thrust Should Have Been on Core Services and ‘essential’ Digital

By Nirmal Bang

  • Some metrics worth tracking: As indicated in our 4QFY22 results note (Downgrade cycle upon us), the net new TCV number (down 60% YoY in FY22 due to mega-deals in the base year) and the unbilled revenue growth were some of the things that stood out.
  • Things to watch out for in the coming days: (1) Whether the worsening profit picture of the US corporate sector – earlier than expected in the March quarter 2022 in certain consumer-facing sectors – spreads further (2) Whether those to whom offer letters are/were given are on-boarded as indicated (3) Whether hiring materially weakens from here on by the Indian service providers, especially if utilization is high (4) Will there be an upward revision in the guidance if we see a strong QoQ growth in 1HFY23 (5) Order inflow and commentary by Accenture as it releases its results in the latter half of June 2022; especially surrounding the discretionary spending on consulting.
  • We expect no deterioration as of this point. (6) Commentary on demand from the cloud hyper scalers and the Saas eco-system in the US (7) A stricter implementation of work from office rules – meaning companies are open to living with higher attrition as they see weakness in demand into the future.

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.


Stove Kraft Limited – Margin Pressure Offsets Topline Growth; Exports Situation

By Nirmal Bang

  • Segment-wise performance: Revenue breakdown stands at: Pressure Cooker – 22.8%; LED – 7.5%; Induction Cooktop – 14.2%; Gas Cooktop – 9.6%; Non-stick Cookware – 16.1% and Mixer/Small Appliances – 29.8%.
  • In 4QFY22, Pressure Cooker volume declined by 9.3% YoY, Gas Cooktop volume declined by 48% YoY, Induction Cooktop volume grew by 83.3% YoY
  • Non-stick Cookware volume declined by 19.5% YoY, LED volume declined by 5.6% YoY and Small Appliances/Mixer/Others volume declined by 1.5% YoY.

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.


Sundaram Finance: Demand Pick-Up Encouraging, Asset Quality Improves

By Axis Direct

  • Sundaram Finance’s (SUF) management indicated an overall improvement in the economic activity with demand regaining strength across segments and geographies in the first 2 months of FY23.
  • However, rising oil prices and high inflationary pressure coupled with rising interest rates, may lead to some downward pressure on demand in the near-term
  • We upgrade our rating from HOLD to BUY with a target price of Rs 2,195/share (based on SOTP valuation), implying an upside of 20% from the CMP.

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.


Fine Organic Industries (4QFY22): Blockbuster Quarter!

By HDFC Securities

  • Financial performance: Revenue grew 33/91% QoQ/YoY to INR 6.2bn in Q4 on the back of higher realisations, courtesy full pass-through of input cost price hikes, on boarding of new customers, repeat orders, better product mix, foreign exchange gains, and inability of competitors to supply their products, owing to non-availability of raw materials.
  • The contribution of exports to total revenue was 60% in FY22. EBITDA came in at INR 1.6bn, +100/+230% QoQ/YoY, with EBITDA margin improving significantly to 26% (+868/+1,090bps QoQ/YoY), owing to shift in the product mix towards high- margin value-added products, new customers, and new approvals in Q4.
  • APAT came in at INR 1.2bn (+135/+283% QoQ/YoY).

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.


Before it’s here, it’s on Smartkarma

TMT: GoTo, Powerchip Semiconductor Manufacturing Corp, Meituan, TSMC, Preferred Networks, Apple, SmartNews, Elastic NV, Spotify Technology SA and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • GoTo Index Inclusion: Fast Entry to IDX30, LQ45, IDX80 Confirmed; BIG Buying Next Week
  • FTSE TWSE Taiwan 50 Index Rebalance: PSMC (6770) Replaces Momo (8454)
  • Meituan (3690 HK): 1Q22 Looks Normal, But Layoff Will Slow Down Revenue
  • TSMC: Precariously Balanced; Robust Medium-Term Earnings Outlook and Discount Valuation Levels
  • Preferred Networks – The AI Revolutionary
  • RiverPark Large Growth Fund Q1 2022 Letter
  • SmartNews – Potentially A Global Champion?
  • Meituan – Omicron Impact Was Not as Big in 1Q but 2Q Will Have the Full Impact
  • Observability Is Not Just Datadog: Why Elastic and Dynatrace Are Great Longs
  • Arch Capital Q1 2022 Investor Letter

GoTo Index Inclusion: Fast Entry to IDX30, LQ45, IDX80 Confirmed; BIG Buying Next Week

By Brian Freitas


FTSE TWSE Taiwan 50 Index Rebalance: PSMC (6770) Replaces Momo (8454)

By Brian Freitas


Meituan (3690 HK): 1Q22 Looks Normal, But Layoff Will Slow Down Revenue

By Ming Lu

  • Revenue growth mainly came from initiatives, which is the focus of April layoff.
  • We believe revenue will slow down and the operating loss will shrink.
  • We set a downside of 11.5% and a price target of HK$160.

TSMC: Precariously Balanced; Robust Medium-Term Earnings Outlook and Discount Valuation Levels

By Wium Malan, CFA

  • Medium-Term revenue growth expectations could be exceeded given capacity expansion plans, announced pricing increases and a continued tight semiconductor supply market.
  • Based on TSMC’s robust medium-term outlook, for revenue growth and profitability, current sell-side estimates of only 10% EPS growth for FY2023f seem conservative.
  • TSMC is currently trading at a 16.2x forward PE ratio, one standard deviation below its 5-year average, a level which has historically proven to be a good entry point.

Preferred Networks – The AI Revolutionary

By Mio Kato

  • Preferred Networks is generally considered Japan’s leading AI and deep learning company with collaborations with numerous conglomerates across many industries. 
  • The company offers significant gearing into labour saving technologies and could potentially become a global leader in AI over time. 
  • In addition, it has demonstrated exceptional power efficiency with its deep learning technology which could prove a critical competitive advantage.

RiverPark Large Growth Fund Q1 2022 Letter

By Fund Newsletters

  • Founded in 2006 by Morty Schaja and Mitch Rubin, RiverPark manages research-driven, focused strategies in equities, fixed income and venture capital.
  • Over this year’s first three months, the RiverPark Large Growth Fund (the “Fund”) lost 19.6%.
  • Rather than follow the market’s so-called “de-risking” strategy, we “leaned in” to our higher growth positions (in some cases materially) at what we believe to be generationally attractive prices.
  • While we are deeply disappointed by our recent losses, we believe thatwe are currently invested in an exceptional risk-reward portfolio and look forward to strongabsolute and relative returns in the quarters to come.

SmartNews – Potentially A Global Champion?

By Mio Kato

  • SmartNews is a news aggregation app using an advertising-based business model originally established in Japan in 2012 with an expansion into the US market in 2014. 
  • The company is interesting in that it funds initiatives to improve the quality of investigative journalism and address problems arising from social media such as increasing polarisation. 
  • However, what truly piques our interest is its demonstrated success in the US which remains unusual for Japanese software companies.

Meituan – Omicron Impact Was Not as Big in 1Q but 2Q Will Have the Full Impact

By Shifara Samsudeen, ACMA, CGMA

  • Meituan reported 1Q2022 results yesterday. Revenue grew 25.0% YoY to RMB46.3bn (vs consensus RMB45.3bn) while operating losses for the quarter slightly dropped to 12.1% of revenues from 12.9% in 1Q2021.
  • As a result of Omicron spread in March, revenue declined sequentially as all three segments reported QoQ decline in revenue during 1Q2022.
  • Meituan hasn’t reported GTV for food delivery as well as no. of domestic hotel room nights for In-Store, Hotel & Travel which seems strange, suggesting 2Q numbers could be worse.

Observability Is Not Just Datadog: Why Elastic and Dynatrace Are Great Longs

By Aaron Gabin

  • Elastic just dramatically raised its revenue guidance for FY2025…implying a massive acceleration in revenue growth that the 18% move in the stock underplayed.
  • Dynatrace is a wildly profitable software company trading at a significant discount to its Rule of 40 metrics.
  • The overall observability space is red hot, unimpacted by macro factors and being overlooked by software investors.

Arch Capital Q1 2022 Investor Letter

By Fund Newsletters

  • Arch Capital is a concentrated, long-only equity fund aiming to compound capital at an above-market rate.
  • The fund holds a concentrated collection of high-quality businesses purchased at prices where we believe forward returns can exceed a rate of 15% a year.
  • With the fund down 15.3% since inception, the market does not agree with our assessments.

Before it’s here, it’s on Smartkarma

China: Xiamen International Port H, China Shenshan Orchard, Meituan, Country Garden Holdings Co, Burning Rock Biotech, Air China Ltd (H) and more

By | China, Daily Briefs

In today’s briefing:

  • Xiamen Port’s Juicy HK$2.25 Per H Share Privatisation Offer
  • Smartkarma Corporate Webinar | China Shenshan Orchard: Looking Into the Kiwi Kingdom
  • Meituan (3690 HK): 1Q22 Looks Normal, But Layoff Will Slow Down Revenue
  • Hang Seng Index Constituents 2nd June 2022
  • Burning Rock Biotech (BNR US) 1Q22: Double-Digit Revenue Growth; China Re-Opening to Boost Recovery
  • Morning Views Asia: Evergrande, Country Garden Holdings Co, Jingrui Holdings, Meituan
  • Air China to Take Over Embattled Regional Airline
  • Meituan – Omicron Impact Was Not as Big in 1Q but 2Q Will Have the Full Impact

Xiamen Port’s Juicy HK$2.25 Per H Share Privatisation Offer

By Arun George

  • Xiamen International Port H (3378 HK) announced a pre-conditional privatisation offer from Xiamen Port Holding at HK$2.25 per H share + final dividend of RMB0.021 per share (ex-div: 15 June). 
  • The key conditions are approval by at least 75% of independent H Shareholders (<10% of all independent H Shareholders’ rejection). There is no minimum acceptance condition.  
  • The offer is attractive in comparison to historical share prices and multiples. We think that the privatisation proposal will likely succeed. At the last close, the gross spread is 55.2%.

Smartkarma Corporate Webinar | China Shenshan Orchard: Looking Into the Kiwi Kingdom

By Smartkarma Research

For our next Corporate Webinar, we are glad to welcome China Shenshan Orchard (DKNG SP) Executive Director, David Zhao.

In the upcoming webinar, David will share a short company presentation, after which he will engage in a fireside chat with Smartkarma Analyst Angus Mackintosh. A live Q&A session will follow.

The Corporate Webinar will be hosted on Tuesday, 28 June 2022, 17:00 SGT.

China Shenshan Orchard Holdings Co. Ltd. is a horticultural company in the business of planting, cultivating, and selling kiwi fruit in the People’s Republic of China (“PRC”). The Group holds forest use rights for eight strategically located orchards, spanning a total land area of 9,805 mu (approximately 6.5 million sqm), which is believed to be one of the largest domestic kiwi fruit orchards concentrated in Chibi City, Hubei, the PRC.

Corporate Webinars by Smartkarma Corporate Solutions feature discussions with IROs and Executives, discussing their companies, the challenges they face, and the opportunities in their sectors and markets.


Meituan (3690 HK): 1Q22 Looks Normal, But Layoff Will Slow Down Revenue

By Ming Lu

  • Revenue growth mainly came from initiatives, which is the focus of April layoff.
  • We believe revenue will slow down and the operating loss will shrink.
  • We set a downside of 11.5% and a price target of HK$160.

Hang Seng Index Constituents 2nd June 2022

By Untying The Gordian Knot

  • The government has taken several steps to improve supply-side restrictions on first and second homes.
  • PBOC has added policy support by cutting longer-dated LPR rates for home loan pricing. Longfor Group and Country Garden are highly rated, large China Real Estate developers.
  • They do not seem to respond positively to many tailwinds

Burning Rock Biotech (BNR US) 1Q22: Double-Digit Revenue Growth; China Re-Opening to Boost Recovery

By Tina Banerjee

  • Burning Rock Biotech (BNR US) reported strong Q1 2022 results, with accelerated double-digit revenue growth of 27% y/y, higher than full year 2022 revenue growth guidance of 22%.
  • Operating loss widened due to 41% y/y surge in opex, primarily attributed to higher staff cost, which resulted from an increase in headcount.
  • Management reiterated 2022 revenue growth guidance of 22% y/y. With Shanghai re-opening, this seems to be achievable.

Morning Views Asia: Evergrande, Country Garden Holdings Co, Jingrui Holdings, Meituan

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.


Air China to Take Over Embattled Regional Airline

By Caixin Global

  • National flag carrier Air China Ltd. (601111.SH) is planning to take control of Shandong Airlines as part of a bailout of the debt-ridden regional airline, it said this week.
  • The state-owned giant is stepping in as its smaller peer suffers along with the rest of the country’s civil aviation industry, with companies racking up huge losses due to the Covid-19 pandemic.
  • Air China is already the second-largest shareholder of Shandong Airlines Group Co. Ltd. with a 49.4% stake

Meituan – Omicron Impact Was Not as Big in 1Q but 2Q Will Have the Full Impact

By Shifara Samsudeen, ACMA, CGMA

  • Meituan reported 1Q2022 results yesterday. Revenue grew 25.0% YoY to RMB46.3bn (vs consensus RMB45.3bn) while operating losses for the quarter slightly dropped to 12.1% of revenues from 12.9% in 1Q2021.
  • As a result of Omicron spread in March, revenue declined sequentially as all three segments reported QoQ decline in revenue during 1Q2022.
  • Meituan hasn’t reported GTV for food delivery as well as no. of domestic hotel room nights for In-Store, Hotel & Travel which seems strange, suggesting 2Q numbers could be worse.

Before it’s here, it’s on Smartkarma

Event-Driven: Toshiba Corp, SPH REIT, LOTTE Reit Co Ltd, Genting Singapore, Unite Group, Xiamen International Port H, GoTo, Powerchip Semiconductor Manufacturing Corp, BGEO Group PLC and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • Toshiba (6502) – Now We Have the First Rounds Bids In, And We Wait, But It’s Top of Range
  • Toshiba – Key Takeaway Is Toshiba Tec’s Attractiveness
  • SPH REIT Offer Goes Unconditional – The Option Now and Index Impacts To Come
  • FTSE EPRA Nareit Asia – June 2022 Rebalance – BIG Impact on BIG Names
  • StubWorld: Genting’s TauRx Boost. Also Hanhwa Solutions, Semirara Mining
  • FTSE100/​​FTSE250 Index Rebalance: +/-2 for FTSE100; +/-7 for FTSE250
  • Xiamen Port’s Juicy HK$2.25 Per H Share Privatisation Offer
  • GoTo Index Inclusion: Fast Entry to IDX30, LQ45, IDX80 Confirmed; BIG Buying Next Week
  • FTSE TWSE Taiwan 50 Index Rebalance: PSMC (6770) Replaces Momo (8454)
  • FTSE UK: June 2022 Rebalance: Bank of Georgia and Oxford Biomedica Are Interesting

Toshiba (6502) – Now We Have the First Rounds Bids In, And We Wait, But It’s Top of Range

By Travis Lundy

  • Since Toshiba reported lacklustre earnings and guidance, there has been a steady flow of articles in the press about the privatisation process going on behind the scenes.
  • On 25 March, Toshiba let it be known a privatisation process would start. On 31 March, Bain gave notice it would participate. Toshiba has been in talks since 21 April
  • First round bids were due 30 May, and 10 total submissions were made, with 8 privatisation proposals proffered. Now we wait…

Toshiba – Key Takeaway Is Toshiba Tec’s Attractiveness

By Mio Kato

  • Toshiba provided an update today on its management policy and the status of discussions with potential investors. 
  • The management targets unveiled looked plausible but rather optimistic while the only real new information on the potential privatisation was that 8 bids had been submitted. 
  • In the end the most interesting takeaway for us was that Toshiba Tec would play a key role in Toshiba’s data business.

SPH REIT Offer Goes Unconditional – The Option Now and Index Impacts To Come

By Travis Lundy

  • Yesterday, it appears that a large holder of SPH REIT (SPHREIT SP) accepted the Cuscaden Chain Offer for the REIT.
  • This morning just after midnight, the Cuscaden consortium announced that the Chain Offer had become Unconditional.
  • This makes the 4-week option unconditional, and it means index impacts to come.

FTSE EPRA Nareit Asia – June 2022 Rebalance – BIG Impact on BIG Names

By Travis Lundy


StubWorld: Genting’s TauRx Boost. Also Hanhwa Solutions, Semirara Mining

By David Blennerhassett


FTSE100/​​FTSE250 Index Rebalance: +/-2 for FTSE100; +/-7 for FTSE250

By Brian Freitas


Xiamen Port’s Juicy HK$2.25 Per H Share Privatisation Offer

By Arun George

  • Xiamen International Port H (3378 HK) announced a pre-conditional privatisation offer from Xiamen Port Holding at HK$2.25 per H share + final dividend of RMB0.021 per share (ex-div: 15 June). 
  • The key conditions are approval by at least 75% of independent H Shareholders (<10% of all independent H Shareholders’ rejection). There is no minimum acceptance condition.  
  • The offer is attractive in comparison to historical share prices and multiples. We think that the privatisation proposal will likely succeed. At the last close, the gross spread is 55.2%.

GoTo Index Inclusion: Fast Entry to IDX30, LQ45, IDX80 Confirmed; BIG Buying Next Week

By Brian Freitas


FTSE TWSE Taiwan 50 Index Rebalance: PSMC (6770) Replaces Momo (8454)

By Brian Freitas


FTSE UK: June 2022 Rebalance: Bank of Georgia and Oxford Biomedica Are Interesting

By Janaghan Jeyakumar, CFA

  • The index changes for the FTSE UK Indices for the June 2022 Rebalance were announced yesterday. There will be 2 changes for FTSE 100 and 7 changes for FTSE 250.
  • The changes are the same as specified in my discussion point (link) yesterday. 
  • Below is a closer look at the Inclusion Parameters and price performance of the names involved in this Rebalance Event.

Before it’s here, it’s on Smartkarma

Singapore: SPH REIT, Genting Singapore and more

By | Daily Briefs, Singapore

In today’s briefing:

  • SPH REIT Offer Goes Unconditional – The Option Now and Index Impacts To Come
  • StubWorld: Genting’s TauRx Boost. Also Hanhwa Solutions, Semirara Mining

SPH REIT Offer Goes Unconditional – The Option Now and Index Impacts To Come

By Travis Lundy

  • Yesterday, it appears that a large holder of SPH REIT (SPHREIT SP) accepted the Cuscaden Chain Offer for the REIT.
  • This morning just after midnight, the Cuscaden consortium announced that the Chain Offer had become Unconditional.
  • This makes the 4-week option unconditional, and it means index impacts to come.

StubWorld: Genting’s TauRx Boost. Also Hanhwa Solutions, Semirara Mining

By David Blennerhassett


Before it’s here, it’s on Smartkarma

Consumer: Genting Singapore, China Shenshan Orchard, Apple, Roland Corp, Ohsho Food Service, Skylark Co Ltd, Stove Kraft and more

By | Consumer, Daily Briefs

In today’s briefing:

  • StubWorld: Genting’s TauRx Boost. Also Hanhwa Solutions, Semirara Mining
  • Smartkarma Corporate Webinar | China Shenshan Orchard: Looking Into the Kiwi Kingdom
  • RiverPark Large Growth Fund Q1 2022 Letter
  • Roland Corp: Not Tuned For Inflation
  • Ohsho Food Service (9936): Price Hikes Not Affecting Popularity; Record Sales in a Single Month
  • Skylark Holdings (3197): Improving Gradually, but Still Below Target
  • Stove Kraft Limited – Margin Pressure Offsets Topline Growth; Exports Situation

StubWorld: Genting’s TauRx Boost. Also Hanhwa Solutions, Semirara Mining

By David Blennerhassett


Smartkarma Corporate Webinar | China Shenshan Orchard: Looking Into the Kiwi Kingdom

By Smartkarma Research

For our next Corporate Webinar, we are glad to welcome China Shenshan Orchard (DKNG SP) Executive Director, David Zhao.

In the upcoming webinar, David will share a short company presentation, after which he will engage in a fireside chat with Smartkarma Analyst Angus Mackintosh. A live Q&A session will follow.

The Corporate Webinar will be hosted on Tuesday, 28 June 2022, 17:00 SGT.

China Shenshan Orchard Holdings Co. Ltd. is a horticultural company in the business of planting, cultivating, and selling kiwi fruit in the People’s Republic of China (“PRC”). The Group holds forest use rights for eight strategically located orchards, spanning a total land area of 9,805 mu (approximately 6.5 million sqm), which is believed to be one of the largest domestic kiwi fruit orchards concentrated in Chibi City, Hubei, the PRC.

Corporate Webinars by Smartkarma Corporate Solutions feature discussions with IROs and Executives, discussing their companies, the challenges they face, and the opportunities in their sectors and markets.


RiverPark Large Growth Fund Q1 2022 Letter

By Fund Newsletters

  • Founded in 2006 by Morty Schaja and Mitch Rubin, RiverPark manages research-driven, focused strategies in equities, fixed income and venture capital.
  • Over this year’s first three months, the RiverPark Large Growth Fund (the “Fund”) lost 19.6%.
  • Rather than follow the market’s so-called “de-risking” strategy, we “leaned in” to our higher growth positions (in some cases materially) at what we believe to be generationally attractive prices.
  • While we are deeply disappointed by our recent losses, we believe thatwe are currently invested in an exceptional risk-reward portfolio and look forward to strongabsolute and relative returns in the quarters to come.

Roland Corp: Not Tuned For Inflation

By Oshadhi Kumarasiri

  • We expect high-end musical instruments to be one of the worse affected among consumer discretionary names during a high inflationary environment.
  • Although Roland Corp (7944 JP) says that demand remains strong, the numbers such as revenue and backlog suggest weakening conditions.
  • In addition, there’s a risk of a recession and it appears that Roland has not made sufficient progress in streamlining operations to maintain profitability in a low revenue environment.

Ohsho Food Service (9936): Price Hikes Not Affecting Popularity; Record Sales in a Single Month

By Mita Securities

  • Although the company implemented price hikes on May 14, the guest count continues to be solid, which gives us a positive impression.
  • All-store sales of 7.384bn yen (120.3% vs. April 2021) were the record high for a single month. The company said that in-store dining sales recovered in a significant manner.
  • In May, the company opened two new stores (one company-owned store and one franchised store) and closed one store (one franchised store)

Skylark Holdings (3197): Improving Gradually, but Still Below Target

By Mita Securities

  • Same-store sales have been improving gradually on the back of the recovery of foot traffic, but still below the company’s target
  • As the company has stores throughout Japan, there appears to be a mix of areas where the recovery has been progressing and areas where the recovery has been sluggish
  • Since May 26, the company has been running aggressive promotions. We will watch closely to see if sales will recover in June.


Stove Kraft Limited – Margin Pressure Offsets Topline Growth; Exports Situation

By Nirmal Bang

  • Segment-wise performance: Revenue breakdown stands at: Pressure Cooker – 22.8%; LED – 7.5%; Induction Cooktop – 14.2%; Gas Cooktop – 9.6%; Non-stick Cookware – 16.1% and Mixer/Small Appliances – 29.8%.
  • In 4QFY22, Pressure Cooker volume declined by 9.3% YoY, Gas Cooktop volume declined by 48% YoY, Induction Cooktop volume grew by 83.3% YoY
  • Non-stick Cookware volume declined by 19.5% YoY, LED volume declined by 5.6% YoY and Small Appliances/Mixer/Others volume declined by 1.5% YoY.

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.


Before it’s here, it’s on Smartkarma

Indonesia: GoTo and more

By | Daily Briefs, Indonesia

In today’s briefing:

  • GoTo Index Inclusion: Fast Entry to IDX30, LQ45, IDX80 Confirmed; BIG Buying Next Week

GoTo Index Inclusion: Fast Entry to IDX30, LQ45, IDX80 Confirmed; BIG Buying Next Week

By Brian Freitas


Before it’s here, it’s on Smartkarma

Thailand: Bangkok Aviation Fuel Services and more

By | Daily Briefs, Thailand

In today’s briefing:

  • BAFS : Recovery Phase Has Kicked Off

BAFS : Recovery Phase Has Kicked Off

By Pi Research

  • Maintain BUY recommendation for BAFS with a target price of Bt34.0. Business performance are expected to turn profit by 3Q22, driven by recovery in aviation fuel services volume along
  • BAFS report 1Q22 net loss at Bt77m, the smallest loss in the past eight quarters. The result came out slightly above our expectation.
  • The least loss in the past eight quarters supported by dividend income recognition worth Bt50m from power plant business in Japan (acquired in 4Q21)and an increase in aviation fuel volume

Before it’s here, it’s on Smartkarma

Industrials: Toshiba Corp, Xiamen International Port H, Air China Ltd (H), Bangkok Aviation Fuel Services, Dilip Buildcon Ltd and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Toshiba (6502) – Now We Have the First Rounds Bids In, And We Wait, But It’s Top of Range
  • Toshiba – Key Takeaway Is Toshiba Tec’s Attractiveness
  • Xiamen Port’s Juicy HK$2.25 Per H Share Privatisation Offer
  • Air China to Take Over Embattled Regional Airline
  • BAFS : Recovery Phase Has Kicked Off
  • Dilip Buildcon Ltd – Fixed Cost Projects Affect Margins

Toshiba (6502) – Now We Have the First Rounds Bids In, And We Wait, But It’s Top of Range

By Travis Lundy

  • Since Toshiba reported lacklustre earnings and guidance, there has been a steady flow of articles in the press about the privatisation process going on behind the scenes.
  • On 25 March, Toshiba let it be known a privatisation process would start. On 31 March, Bain gave notice it would participate. Toshiba has been in talks since 21 April
  • First round bids were due 30 May, and 10 total submissions were made, with 8 privatisation proposals proffered. Now we wait…

Toshiba – Key Takeaway Is Toshiba Tec’s Attractiveness

By Mio Kato

  • Toshiba provided an update today on its management policy and the status of discussions with potential investors. 
  • The management targets unveiled looked plausible but rather optimistic while the only real new information on the potential privatisation was that 8 bids had been submitted. 
  • In the end the most interesting takeaway for us was that Toshiba Tec would play a key role in Toshiba’s data business.

Xiamen Port’s Juicy HK$2.25 Per H Share Privatisation Offer

By Arun George

  • Xiamen International Port H (3378 HK) announced a pre-conditional privatisation offer from Xiamen Port Holding at HK$2.25 per H share + final dividend of RMB0.021 per share (ex-div: 15 June). 
  • The key conditions are approval by at least 75% of independent H Shareholders (<10% of all independent H Shareholders’ rejection). There is no minimum acceptance condition.  
  • The offer is attractive in comparison to historical share prices and multiples. We think that the privatisation proposal will likely succeed. At the last close, the gross spread is 55.2%.

Air China to Take Over Embattled Regional Airline

By Caixin Global

  • National flag carrier Air China Ltd. (601111.SH) is planning to take control of Shandong Airlines as part of a bailout of the debt-ridden regional airline, it said this week.
  • The state-owned giant is stepping in as its smaller peer suffers along with the rest of the country’s civil aviation industry, with companies racking up huge losses due to the Covid-19 pandemic.
  • Air China is already the second-largest shareholder of Shandong Airlines Group Co. Ltd. with a 49.4% stake

BAFS : Recovery Phase Has Kicked Off

By Pi Research

  • Maintain BUY recommendation for BAFS with a target price of Bt34.0. Business performance are expected to turn profit by 3Q22, driven by recovery in aviation fuel services volume along
  • BAFS report 1Q22 net loss at Bt77m, the smallest loss in the past eight quarters. The result came out slightly above our expectation.
  • The least loss in the past eight quarters supported by dividend income recognition worth Bt50m from power plant business in Japan (acquired in 4Q21)and an increase in aviation fuel volume

Dilip Buildcon Ltd – Fixed Cost Projects Affect Margins

By Nirmal Bang

  • Operational performance and guidance: For FY22, DBL reported revenue of Rs90bn, down 2.2% YoY.
  • Asset monetization: The management had signed a term sheet for the sale of 10 HAM assets to Shrem InVIT.
  • Order book: The current orderbook stands at Rs255bn, with 45% contribution from Roads, 17% from Irrigation, 22.5% from Mining, 9% from Tunnel, 5% from Special Bridges and the balance from Airport & Metros.

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