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Smartkarma Daily Briefs

Sep 14
0

Daily Brief Health Care: Genscript Biotech and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Genscript Biotech (1548.HK) 22H1 – The Outlook and the Risks Behind

Genscript Biotech (1548.HK) 22H1 – The Outlook and the Risks Behind

By Xinyao (Criss) Wang

  • Genscript’s four business segments are the horizontal and vertical extension based on gene synthesis technology. There is also synergy between Genscript and its subsidiaries, which can promote each other’s development.
  • If only from the business level, GenScript is a worthy target for investment. It has the exponential growth potential in valuation and could reach a new high in the future.
  • However, our biggest worry lies in the “black swans events” . We don’t know what “new surprises” GenScript will bring us in the future. 

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Sep 14
0

Daily Brief Consumer: Giordano International, Shiseido Company, Cary Group AB, Tokyo Stock Exchange Tokyo Price Index Topix and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Giordano’s VGO Lapses
  • Shiseido: Drunk Elephant Seems an $845m Write-Off
  • Arb Carnage As Giordano’s Offer Also Fails
  • Teniralc/Cary Group: Final Offer
  • It Is Hoped that the Content of Shareholder Meetings Will Be Enhanced in the Future

Giordano’s VGO Lapses

By Arun George

  • The offeror and acceptances reached 46.04%, just short of the 50% minimum acceptance condition. The offeror has decided to let the Giordano International (709 HK) offer lapse.
  • The offer fell short of the 50% threshold as the Cheng family mistakenly assumed that shareholders behind Halycon’s stake were friendly shares, which would support the offer.
  • The downside will be muted as the shares are trading in line with the 1-year average forward P/E, minorities thought the offer was low, and David Webb is a buyer.

Shiseido: Drunk Elephant Seems an $845m Write-Off

By Oshadhi Kumarasiri

  • Shiseido’s acquisition of Drunk Elephant for a valuation of $845m was perceived positively, hoping that Shiseido could use Drunk Elephant’s digital marketing expertise to restructure its North America business.
  • Rather than emulating Drunk Elephant like digital marketing to the company’s other brands, Shiseido has been trying to accommodate all its brands including Drunk Elephant into a hybrid marketing strategy.
  • This seems to have killed Drunk Elephant’s appeal to its customers. Thus, Shiseido Company (4911 JP) could be facing a massive $845m write-off over the next few years.

Arb Carnage As Giordano’s Offer Also Fails

By David Blennerhassett

Teniralc/Cary Group: Final Offer

By Jesus Rodriguez Aguilar

  • In light of low acceptances and a cold statement from the independent bid committee, Teniralc increased the offer by 7.7% to SEK 70/share (same as IPO, 17.2x EV/EBITDA).
  • The increased offer is final, represents a 72% premium and has been unanimously recommended. The acceptance period now runs until 22 September.
  • As of 12 September closing share price, gross spread is 4.2%, an interesting level, in my view, considering settlement will take place “on or about 30 September”. Reiterate Long CARY SS.

It Is Hoped that the Content of Shareholder Meetings Will Be Enhanced in the Future

By Aki Matsumoto

  • The inclusion of the requirement to use e-voting platforms in the Corporate Governance Code has led to increasing number of companies using e-voting platforms.
  • The number of participating companies has increased from 1,540 in March to 1,737 in August. Of the companies participating in e-voting platform, 92% are listed companies in the prime market.
  • It is only to be hoped that in the future, companies will focus on improving communication between shareholders and management at general shareholders’ meetings.

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Sep 14
0

Daily Brief Financials: Frasers Hospitality Trust, Maple Finance, Citigroup Inc, Kwg Property Holding, Manolete Partners and more

By | Daily Briefs, Financials

In today’s briefing:

  • Frasers Hospitality Trust Scheme Vote Fail – Minority Apathy Meets Vocal Minority. Units Drop Hard.
  • Access Private Credit Market Through Defi with a Better and Stable Yield
  • Citigroup: Cautious Buy Rating Assigned
  • Morning Views Asia: Fosun International, KWG Living Group, Sino-Ocean Service
  • Manolete Partners: When A Profit Warning Is A Good Thing

Frasers Hospitality Trust Scheme Vote Fail – Minority Apathy Meets Vocal Minority. Units Drop Hard.

By Travis Lundy

  • In a somewhat extraordinary turn of events, the Scheme Meeting for the Frasers Hospitality Trust (FHT SP) takeover did not garner enough votes to get to YES. 
  • About 3% of units (about 8% of minorities) came out against. But only 18.8% of minorities actually voted. The deal has failed. The bidders can’t come back for a while.
  • The units are trading down nearly 25% today as a result. This is cheap against both hospitality and major S-REIT peers. Inside, I discuss Overhang and Divs.

Access Private Credit Market Through Defi with a Better and Stable Yield

By Edward Wu

  • Stablecoins borrowing demand, and thus the lending yield is strongly correlated with crypto market performance. Stablecoins yields are now less than U.S. 1-year Treasury rate.
  • Newer Defi lending protocols channel stablecoins liquidity to institutions, businesses, and consumers outside the crypto industry. They provide a more stable yield that is not dependent on crypto market performance.
  • While these protocols present yield opportunities for stablecoins, their protocol tokens are not ideal targets for investment.

Citigroup: Cautious Buy Rating Assigned

By Pearl Gray Equity and Research

  • Citi’s Basel III framework is safe as houses, we urge investors to remain coy as systemic risk remains high due to volatile economic and geopolitical features.
  • The firm’s operating cash flow is robust and covers an attractive 4.03% dividend yield soundly, we urged investors to stay coy.

Morning Views Asia: Fosun International, KWG Living Group, Sino-Ocean Service

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.

Manolete Partners: When A Profit Warning Is A Good Thing

By James Emanuel

  • Manolete Partners issued a profit warning on Friday 9th September 2022.
  • Share price dipped over 15% after a market over-reaction that resulted in the share price dipping over 15%.
  • This is a wonderful buying opportunity, according to the article.

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Sep 14
0

Daily Brief Industrials: San Miguel, CALB, WCP and more

By | Daily Briefs, Industrials

In today’s briefing:

  • PCOMP Index Rebalance Preview Feb 23: Updated Methodology to Drive Changes
  • CALB Pre-IPO – PHIP Updates – Growth Picking up Further, Margins Turnaround
  • WCP IPO – 2Q22 Updates and Valuation Refresh

PCOMP Index Rebalance Preview Feb 23: Updated Methodology to Drive Changes

By Brian Freitas

  • From December 2022, the minimum free float requirement to be a part of the Philippines Stock Exchange PSEi Index (PCOMP INDEX) increases from 15% to 20%.
  • This could result in three deletions from the index which will result in three stocks being added to the index. Passive trackers selling the deletes will push the stocks lower.
  • The three current constituents could remain in the index if they sell stock to increase the free float. That would in turn put downward pressure on the stocks.

CALB Pre-IPO – PHIP Updates – Growth Picking up Further, Margins Turnaround

By Sumeet Singh

  • CALB aims to raise around US$1.5bn in its Hong Kong IPO.
  • CALB undertakes design, R&D, production and sales of EV batteries and Energy Storage Systems (ESS) products. 
  • In this note, we talk about the updates from the company’s recent PHIP filings.

WCP IPO – 2Q22 Updates and Valuation Refresh

By Sumeet Singh

  • WCP aims to raise around US$690m via selling a mix of primary and secondary shares in its Korean IPO. Its demand forecasting is slated to take place today and tomorrow.
  • WCP designs, manufactures, and sells separators, which are one of the four core materials for secondary Lithium-ion batteries
  • In this note, we will talk about the updates from the revised filing, and re-look at valuations.

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Sep 14
0

Daily Brief ESG: It Is Hoped that the Content of Shareholder Meetings Will Be Enhanced in the Future and more

By | Daily Briefs, ESG

In today’s briefing:

  • It Is Hoped that the Content of Shareholder Meetings Will Be Enhanced in the Future

It Is Hoped that the Content of Shareholder Meetings Will Be Enhanced in the Future

By Aki Matsumoto

  • The inclusion of the requirement to use e-voting platforms in the Corporate Governance Code has led to increasing number of companies using e-voting platforms.
  • The number of participating companies has increased from 1,540 in March to 1,737 in August. Of the companies participating in e-voting platform, 92% are listed companies in the prime market.
  • It is only to be hoped that in the future, companies will focus on improving communication between shareholders and management at general shareholders’ meetings.

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

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Sep 14
0

Daily Brief Credit: Morning Views Asia: Fosun International and more

By | Credit, Daily Briefs

In today’s briefing:

  • Morning Views Asia: Fosun International, KWG Living Group, Sino-Ocean Service

Morning Views Asia: Fosun International, KWG Living Group, Sino-Ocean Service

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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Sep 14
0

Daily Brief ECM: CALB Pre-IPO – PHIP Updates – Growth Picking up Further and more

By | Daily Briefs, ECM

In today’s briefing:

  • CALB Pre-IPO – PHIP Updates – Growth Picking up Further, Margins Turnaround
  • Socionext Pre-IPO – Could Expect a Further Bump in Profitability, Although Some Hidden Risks Remain
  • WCP IPO – 2Q22 Updates and Valuation Refresh

CALB Pre-IPO – PHIP Updates – Growth Picking up Further, Margins Turnaround

By Sumeet Singh

  • CALB aims to raise around US$1.5bn in its Hong Kong IPO.
  • CALB undertakes design, R&D, production and sales of EV batteries and Energy Storage Systems (ESS) products. 
  • In this note, we talk about the updates from the company’s recent PHIP filings.

Socionext Pre-IPO – Could Expect a Further Bump in Profitability, Although Some Hidden Risks Remain

By Clarence Chu

  • Socionext (6526 JP) is looking to raise up to US$285m in its Japan IPO.
  • Socionext is a fabless semiconductor provider in Japan. Sales and profitability has been on an overall uptrend, and design wins in earlier fiscal years should materialize in the coming periods. 
  • However, the firm has generated a substantial portion of revenue from a related party and is reliant on a particular foundry for its front-end manufacturing.

WCP IPO – 2Q22 Updates and Valuation Refresh

By Sumeet Singh

  • WCP aims to raise around US$690m via selling a mix of primary and secondary shares in its Korean IPO. Its demand forecasting is slated to take place today and tomorrow.
  • WCP designs, manufactures, and sells separators, which are one of the four core materials for secondary Lithium-ion batteries
  • In this note, we will talk about the updates from the revised filing, and re-look at valuations.

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Sep 14
0

Daily Brief Technical Analysis: Supports to Be Tested Again Following CPI? Stick With Solar Stocks and more

By | Daily Briefs, Technical Analysis

In today’s briefing:

  • Supports to Be Tested Again Following CPI? Stick With Solar Stocks, Buying Manufacturing Names

Supports to Be Tested Again Following CPI? Stick With Solar Stocks, Buying Manufacturing Names

By Joe Jasper

  • Key supports that we highlighted in last week’s Compass (Sept. 7) held strong, including 3900-3910 on the SPX, $293 on the Nasdaq 100 (QQQ), $177-178 on the Russell 2000 (IWM).
  • We got the bounce where bulls needed to hold, but these levels could be tested again following this morning’s hotter-than-expected CPI report.
  • As long as the aforementioned supports continue to hold, we continue to believe the lows are likely in for this bear market — something we noted throughout late-July and August.

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Sep 14
0

Daily Brief Equity Bottom-Up: Shiseido: Drunk Elephant Seems an $845m Write-Off and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Shiseido: Drunk Elephant Seems an $845m Write-Off
  • NEC (6701) | Even Higher Conviction
  • Netdragon Websoft – Ms Tang Yu Becomes World’s First Virtual Humanoid Robot CEO
  • Taiwan Dual-Listings – TSMC Premium Almost Wiped Out, UMC & ChipMOS ADRs Trading at Discounts
  • Intel Vs. TSMC/​UMC Long/​Short Monitor: Upcoming Intel Conference Catalyst
  • Tencent: Excluded Again from New Game Approvals as NetEase Makes into the Approved List
  • Genscript Biotech (1548.HK) 22H1 – The Outlook and the Risks Behind
  • Citigroup: Cautious Buy Rating Assigned
  • Manolete Partners: When A Profit Warning Is A Good Thing

Shiseido: Drunk Elephant Seems an $845m Write-Off

By Oshadhi Kumarasiri

  • Shiseido’s acquisition of Drunk Elephant for a valuation of $845m was perceived positively, hoping that Shiseido could use Drunk Elephant’s digital marketing expertise to restructure its North America business.
  • Rather than emulating Drunk Elephant like digital marketing to the company’s other brands, Shiseido has been trying to accommodate all its brands including Drunk Elephant into a hybrid marketing strategy.
  • This seems to have killed Drunk Elephant’s appeal to its customers. Thus, Shiseido Company (4911 JP) could be facing a massive $845m write-off over the next few years.

NEC (6701) | Even Higher Conviction

By Mark Chadwick

  • NEC’s buyback announcement sends a clear message that the MTP is on track and management feel the stock is undervalued
  • The recent IR DAY increased our conviction in the financial model. We were impressed with the improving pipeline of Open RAN customers
  • The stock is significantly undervalued, trading below book value, with improving ROE

Netdragon Websoft – Ms Tang Yu Becomes World’s First Virtual Humanoid Robot CEO

By Douglas Kim

  • NetDragon Websoft announced that it has appointed Ms. Tang Wu (a virtual humanoid robot powered by AI) as its new CEO which would be the first ever in the world. 
  • The company’s education revenue increased by 71.2% YoY to reach 2.4 billion RMB in 1H 2022. Profitability of the edtech business is also improving.
  • Despite the company’s lower valuation multiples than its peers combined with catalysts including improving edtech business, we are cautious on its shares mainly due to the overall market related risks. 

Taiwan Dual-Listings – TSMC Premium Almost Wiped Out, UMC & ChipMOS ADRs Trading at Discounts

By Vincent Fernando, CFA

  • Taiwan ADR premiums vs. their local shares have generally decreased across the board.
  • Is TSMC’s high ADR premium a thing of the past?
  • UMC and ChipMOS ADRs are both trading at historically rare discounts to their Taiwan shares.

Intel Vs. TSMC/​UMC Long/​Short Monitor: Upcoming Intel Conference Catalyst

By Vincent Fernando, CFA

  • Intel Corp (INTC US)’s upcoming Innovation conference is a potential catalyst for the stock, given we believe there is likelihood of positive product announcements.
  • Taiwan Semiconductor (TSMC) (2330 TT) and United Microelectronics Corp (2303 TT) have already released their August sales figures at the start of September, with next release not until early October.
  • Newsflow thus could be in Intel’s favor through the end of the month. The stock is trading at an all-time low PBV.

Tencent: Excluded Again from New Game Approvals as NetEase Makes into the Approved List

By Shifara Samsudeen, ACMA, CGMA

  • China’s gaming regulator granted publishing licenses to 73 online games on Tuesday, including one for NetEase Inc (NTES US) . However, Tencent (700 HK) was excluded for the fifth time.
  • Though the 9-month long new game approval freeze was lifted in April, it has been more than a year since Tencent received approval for a new title.
  • Tencent’s online game revenue declined YoY for two consecutive quarters and we expect online game revenue to decline further in 3Q2022E.

Genscript Biotech (1548.HK) 22H1 – The Outlook and the Risks Behind

By Xinyao (Criss) Wang

  • Genscript’s four business segments are the horizontal and vertical extension based on gene synthesis technology. There is also synergy between Genscript and its subsidiaries, which can promote each other’s development.
  • If only from the business level, GenScript is a worthy target for investment. It has the exponential growth potential in valuation and could reach a new high in the future.
  • However, our biggest worry lies in the “black swans events” . We don’t know what “new surprises” GenScript will bring us in the future. 

Citigroup: Cautious Buy Rating Assigned

By Pearl Gray Equity and Research

  • Citi’s Basel III framework is safe as houses, we urge investors to remain coy as systemic risk remains high due to volatile economic and geopolitical features.
  • The firm’s operating cash flow is robust and covers an attractive 4.03% dividend yield soundly, we urged investors to stay coy.

Manolete Partners: When A Profit Warning Is A Good Thing

By James Emanuel

  • Manolete Partners issued a profit warning on Friday 9th September 2022.
  • Share price dipped over 15% after a market over-reaction that resulted in the share price dipping over 15%.
  • This is a wonderful buying opportunity, according to the article.

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  • ✓ Custom Watchlists
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  • ✓ Events & Webinars
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Sep 14
0

Daily Brief Thematic (Sector/Industry): The Stocks to Own in Asia – Vol. 38 and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • The Stocks to Own in Asia – Vol. 38
  • Indian Generic Pharmaceutical Companies: The US Business Is Recovering Slowly
  • The Stocks to Own in ASEAN – Vol. 40

The Stocks to Own in Asia – Vol. 38

By Dr. Andrew Stotz, CFA

  • We highlight 14 stocks in Asia that look interesting to us based on our FVMR methodology
  • Six stock remains, and eight stocks added to our portfolio
  • Since its inception, it has generated a before-fee total return of 93% versus the MSCI Asia ex Japan of 55%

Indian Generic Pharmaceutical Companies: The US Business Is Recovering Slowly

By Tina Banerjee

  • Most of the large Indian pharmaceutical companies have reported double-digit revenue growth in their respective U.S. business in Q1FY23. New launches are mostly offsetting the impact of price erosion.
  • Although the companies are still facing price erosion in the U.S. market, the pace has slowed down. Price erosion seems to be near its bottom.
  • Dr. Reddy’s Laboratories (DRRD IN) and Zydus Lifesciences Ltd (ZYDUSLIF IN) remain our top picks. Aided by new launches both the companies are seeing sustainable recovery in U.S. business.

The Stocks to Own in ASEAN – Vol. 40

By Dr. Andrew Stotz, CFA

  • We highlight 14 stocks in ASEAN that look interesting to us based on our FVMR Methodology
  • Portfolio changes: Six stocks remain, and eight stocks added to the portfolio
  • Since its inception, the portfolio has generated a before-fee total return of 184% versus MSCI ASEAN’s 24%

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