Smartkarma Daily Briefs

Salesforce has generated excellent revenue growth, profitability, and cash flows in its last result, surpassing Wall Street expectations on all counts despite operating in a challenging financial climate.
With new clients like the U.S.
Department of Veterans Affairs, Workday, and Uber, Service Cloud grew 14% year over year or 18% in constant currency.

Workday Inc: Growing Customer Base

Workday delivered another all-around beat, outperforming market expectations with respect to its operating indicators, highlighting the ongoing significance of digital transformation for finance and HR.
Along with the significant expansion of their core HCM and financial apps, Q2 saw remarkable momentum throughout their broader spectrum of solutions.
Customers create apps with Extend customized for their specific use cases, potentially eliminating the need for additional specialized development tools.

Capri Holdings: Digital Momentum & Other Drivers

Capri has seen a decent performance across all three of its luxury residences and 2022 has been delivering better results than the management had anticipated.
The company delivered an all-around beat with a revenue of $1.36 billion, which exceeded management and market expectations.
Fendace combined unique features with classic silhouettes from two renowned Italian luxury brands, Fendi and Versace.

Ulta Beauty: The Beauty& Campaign

Ulta Beauty performed well in this quarter and delivered an all-around beat.
Based on point-of-sale statistics from the NPD Group, all key categories for the quarter exceeded its expectations, and they grew their market share in prestige beauty compared to the previous year.
Haircare, their second-largest category, experienced double-digit growth for another quarter due to newness and excellent participation in their semi-annual Gorgeous Hair Event.

Breaking Estimate Short Candidates: Upstart, Cerence, Zillow, Trex

By Eric Fernandez, CFA

This model finds companies facing recent sharp cuts in estimates. These shorts can have very disparate characteristics.
The key judgement involves whether the negative revisions are temporary or if they are indications of ongoing weakness in the business.
Breaking Estimates stocks often continue to decline after the cuts. This week we flag: Upstart, Cerence, Zillow, Trex

Campbell Soup Inc: Online Sales As A Key Driver & Other Factors Driving Growth

The demand for Campbell’s portfolio of brands continued to be strong in the last quarter and it was able to match the market’s revenue expectations through its result.
The company was able to deliver an earnings beat as it enhanced supply chain performance and put into place efficient revenue management to combat inflation.
Their Win in Soup approach will remain strong in fiscal 2023 largely due to innovation.

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Sep 08

Daily Brief India: Global Health (Medanta), InterGlobe Aviation Ltd, Workday Inc Class A, Ulta Beauty, Inc. and more

By Smartkarma Daily Briefs | Daily Briefs, India

In today’s briefing:

Global Health Pre-IPO – Stiff Competition Makes Growth Look Mediocre
Interglobe Aviation (Indigo) Placement – The Beginning of the End of the Overhang
Workday Inc: Growing Customer Base
Ulta Beauty: The Beauty& Campaign

Global Health Pre-IPO – Stiff Competition Makes Growth Look Mediocre

By Ethan Aw

Global Health (Medanta) (GH IN) is looking to raise approximately US$270m in its upcoming India IPO.
Global Health (GH) is a hospital network that operates under the Medanta brand. The firm currently has five hospitals in operation and one more planned for development.
The company has managed to remain profitable throughout COVID-19 and even experienced margin expansion in FY22. However, its post-COVID growth might be short-lived given stiff competition amongst peers.

Interglobe Aviation (Indigo) Placement – The Beginning of the End of the Overhang

By Sumeet Singh

InterGlobe Aviation Ltd (INDIGO IN)’s co-founder Rakesh Gangwal aims to raise around US$250m via selling 2.8% of the company.
He had earlier stated his intention to pare down his stake after a long drawn, and very public battle, with the other co-founder Rahul Bhatia.
In this note, we will talk about the placement and run the deal through our ECM framework.

Workday Inc: Growing Customer Base

Workday delivered another all-around beat, outperforming market expectations with respect to its operating indicators, highlighting the ongoing significance of digital transformation for finance and HR.
Along with the significant expansion of their core HCM and financial apps, Q2 saw remarkable momentum throughout their broader spectrum of solutions.
Customers create apps with Extend customized for their specific use cases, potentially eliminating the need for additional specialized development tools.

Ulta Beauty: The Beauty& Campaign

Ulta Beauty performed well in this quarter and delivered an all-around beat.
Based on point-of-sale statistics from the NPD Group, all key categories for the quarter exceeded its expectations, and they grew their market share in prestige beauty compared to the previous year.
Haircare, their second-largest category, experienced double-digit growth for another quarter due to newness and excellent participation in their semi-annual Gorgeous Hair Event.

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Sep 08

Daily Brief Thailand: True Corp Pcl and more

By Smartkarma Daily Briefs | Daily Briefs, Thailand

In today’s briefing:

DTAC/True Merger: NBTC Likely to Set Measures to Approve Merger

DTAC/True Merger: NBTC Likely to Set Measures to Approve Merger

The Bangkok Post reports that the Thai regulator (NBTC) will propose ten remedial measures to approve the Total Access Communication (DTAC TB)/True Corp Pcl (TRUE TB) merger.
The NBTC board is not expected to issue a final decision as it waits for an interpretation by the Council of State if it can approve or reject the merger.
The current share price ratio is 9.511x vs the swap ratio of 10.221x. At last close, DTAC and True’s gross spread to the VTO price is 9.2% and 10.7%, respectively.

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Sep 08

Daily Brief South Korea: KMW Co Ltd, KT Corp, Top Material, United Nations Global Compact and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

KRX New Deal Index Rebalance: All Forecasts Right as KMW Soars and AfreecaTV Drops
KRX K-New Deal Rebalancing: Official Results & Passive Flows
Major Stock Swap Between Hyundai Motor Group and KT Corp
Top Material IPO Preview
2022 UNGC Ten Principle Compliance Report on Korean Listed Companies

KRX New Deal Index Rebalance: All Forecasts Right as KMW Soars and AfreecaTV Drops

The KRX announced the changes to the KRX New Deal indices post market close on Friday. But the changes were not made public and are only available to subscribers.
Intellian Technologies (189300) and Seojin System (178320) replace Danal (064260) and Kcp (060250) in the Internet Index, while KMW Co Ltd (032500 KS) replaces AfreecaTV (067160 KS) in BBIG.
Since we published our last forecast on 21 July, KMW Co Ltd (032500 KS) is up 12% while AfreecaTV (067160 KS) has dropped 17%.

KRX K-New Deal Rebalancing: Official Results & Passive Flows

By Sanghyun Park

KMW replaces AfreecaTV in BBIG. There is no constituent change for Battery and Bio. Seojin and Intellion replace NHN KCP and Danal in Internet. Nexon Games replaces Devsisters in Game.
The effective date has been postponed to the 13th, and the ETF operators will conduct the rebalancing trading at the close tomorrow, the 8th.
Regarding relative passive impact, KMW and AfreecaTV should receive the most attention, and this pattern is already appearing today.

Major Stock Swap Between Hyundai Motor Group and KT Corp

On 7 September, Hyundai Motor (005380 KS) announced a major stock swap with KT Corp (030200 KS).
KT will exchange about 750 billion won (7.7%) of KT’s treasury stock for 445.6 billion won (1.04%) of Hyundai Motor shares and 300.3 billion won (1.46%) of Hyundai Mobis shares.
This stock swap is likely to have a bigger positive impact on KT versus Hyundai Motor and Hyundai Mobis.

Top Material IPO Preview

Top Material is getting ready for an IPO in October in Korea. The IPO price range is from 27,000 won to 30,000 won.
Established in 2012, Top Material’s main business is in system engineering. It also provides high performance electrode and cathode materials for the lithium ion based rechargeable batteries.
Top Material had sales of 31.9 billion won (up 375% YoY) and operating profit of 4.8 billion won (up 930% YoY) in 2021.

2022 UNGC Ten Principle Compliance Report on Korean Listed Companies

By Yujin Oh

Major index providers and investment management companies reflect on United Nations Global Compact (UNGC) principles for the assessment of portfolios. This particular UNGC compliance analysis focuses on Korean listed companies.
The evaluation of Korea’s 828 listed companies and their sustainable management level utilised Who’s Good’s ESG evaluating framework, ‘Performance Analysis’ and ‘Incident Analysis’ and applied it to the Ten Principles.
Only 10% of the 828 listed companies were members of the UNGC, and 50% of the top 100 companies who scored the highest in UNGC scores, were members of UNGC.

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Sep 08

Most Read: China Shenhua Energy Co H, Soho China, Oriental Land, Australian Strategic Materials, Sea Ltd, Hitachi Transport System, KMW Co Ltd, True Corp Pcl, JMDC Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

HSCEI Index Rebalance Preview: Could Be A BIG One
SOHO China (410 HK): Blackstone Deal Potentially Back On As Pan Shiyi Goes “Altruistic”
Nikkei 225 March 2023 Review Quiddity Leaderboard
MVIS Global Rare Earth/Strategic Metals Index Rebalance Preview: Couple of Potential Deletes
Sea Ltd – Just About Doomed
Hitachi Transport (9086 JP) – Tender Launch Likely Soon But Watch for Flow
KRX New Deal Index Rebalance: All Forecasts Right as KMW Soars and AfreecaTV Drops
KRX K-New Deal Rebalancing: Official Results & Passive Flows
DTAC/True Merger: NBTC Likely to Set Measures to Approve Merger
JMDC Offering – Smaller Than It Looks

HSCEI Index Rebalance Preview: Could Be A BIG One

There could be up to 6 changes to the Hang Seng China Enterprises Index (HSCEI INDEX) at the December rebalance, mainly driven by the deletions.
If there are six changes to the index, estimated one-way turnover is 6.47% and will result in a one-way trade of HK$4,124m.
There is large short interest on quite a lot of stocks and will play an important role in the rebalance.

SOHO China (410 HK): Blackstone Deal Potentially Back On As Pan Shiyi Goes “Altruistic”

Pan Shiyi and Pan Zhangxin – Chairman and CEO respectively of SOHO China (410 HK) – have tendered their resignations, with immediate effect.
Both are resigning “to focus on supporting the arts and philanthropic pursuits“.
That sounds like a “donation” is on the cards. And the Pans selling their stake in SOHO China would nicely fund that donation.

Nikkei 225 March 2023 Review Quiddity Leaderboard

The Sep 2022 Nikkei 225 Annual Review has been announced. This was discussed in Nikkei 225 Review Results: Nidec, SMC, Hoya IN.
That means we can make early predictions for the March 2023 rebalance to be announced in six months. One way turnover would be about 1.4%.
The top three adds are Oriental Land, Renesas, and JAL. The top 3 sells would be Toyobo, Toho Zinc, and Nippon Sheet Glass. There are some dark horses here too.

MVIS Global Rare Earth/Strategic Metals Index Rebalance Preview: Couple of Potential Deletes

Sierra Rutile Holdings (SRX AU) is a high probability delete from the index, while Australian Strategic Materials (ASM AU) is close to the deletion threshold.
Sayona Mining (SYA AU) is the highest ranked non-constituent while Tianqi Lithium (9696 HK) only makes inclusion at the entire IPO raise.
Deletion from the index will require passive trackers to sell over 5 days of ADV on Australian Strategic Materials (ASM AU).

Sea Ltd – Just About Doomed

By Oshadhi Kumarasiri

It was reported yesterday that Sea Ltd (SE US)‘s e-commerce arm “Shopee” has begun rescinding job offers.
Having burnt around $2.0bn during the first six months of 2022 pursuing e-commerce and fintech growth aspirations, this seems like an extreme measure to ensure the company’s survival.
With the gaming profitability fading, we are starting to think that even the extreme cost-cutting could be insufficient to overturn Sea’s e-commerce and fintech cash burn.

Hitachi Transport (9086 JP) – Tender Launch Likely Soon But Watch for Flow

Hitachi Transport System (9086 JP) has had a “long” wait to get its approvals, but EC and China are in, any remaining should be in shortly.
Yesterday, as a footnote on the SG Holdings offering document, there was a comment about SG Holdings selling shares. This was likely more good corporate governance hygiene than warning.
Shares are down this morning. I’d expect final approvals and launch quite soon. I would therefore look to buy the dip on flow – block or not.

KRX New Deal Index Rebalance: All Forecasts Right as KMW Soars and AfreecaTV Drops

The KRX announced the changes to the KRX New Deal indices post market close on Friday. But the changes were not made public and are only available to subscribers.
Intellian Technologies (189300) and Seojin System (178320) replace Danal (064260) and Kcp (060250) in the Internet Index, while KMW Co Ltd (032500 KS) replaces AfreecaTV (067160 KS) in BBIG.
Since we published our last forecast on 21 July, KMW Co Ltd (032500 KS) is up 12% while AfreecaTV (067160 KS) has dropped 17%.

KRX K-New Deal Rebalancing: Official Results & Passive Flows

By Sanghyun Park

KMW replaces AfreecaTV in BBIG. There is no constituent change for Battery and Bio. Seojin and Intellion replace NHN KCP and Danal in Internet. Nexon Games replaces Devsisters in Game.
The effective date has been postponed to the 13th, and the ETF operators will conduct the rebalancing trading at the close tomorrow, the 8th.
Regarding relative passive impact, KMW and AfreecaTV should receive the most attention, and this pattern is already appearing today.

DTAC/True Merger: NBTC Likely to Set Measures to Approve Merger

The Bangkok Post reports that the Thai regulator (NBTC) will propose ten remedial measures to approve the Total Access Communication (DTAC TB)/True Corp Pcl (TRUE TB) merger.
The NBTC board is not expected to issue a final decision as it waits for an interpretation by the Council of State if it can approve or reject the merger.
The current share price ratio is 9.511x vs the swap ratio of 10.221x. At last close, DTAC and True’s gross spread to the VTO price is 9.2% and 10.7%, respectively.

JMDC Offering – Smaller Than It Looks

In February 2022, Noritsu Koki (7744 JP) – longtime holder of JMDC Inc (4483 JP) – sold 2/3 of its holdings to Omron (6645). Omron made a US$1bn new bet.
Shares fell after Q1 results, and then fell another 7% in 2 days after the company announced a primary offering for ¥22bn to international investors, ¥11bn to Omron.
High PER but Fundamental Forecasts are up-and-to-the-right, and there is a surprising amount of flow mitigation from passive investor activity the next 3 months.

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Sep 08

Daily Brief China: China Shenhua Energy Co H, Soho China, CALB, A8 New Media, CIFI Holdings and more

By Smartkarma Daily Briefs | China, Daily Briefs

In today’s briefing:

HSCEI Index Rebalance Preview: Could Be A BIG One
SOHO China (410 HK): Blackstone Deal Potentially Back On As Pan Shiyi Goes “Altruistic”
CALB IPO: The Bear Case
Hong Kong CEO & Director Dealings – 1st Sept 2022: A8 New Media, China Fordoo
Morning Views Asia: China SCE, CIFI Holdings

HSCEI Index Rebalance Preview: Could Be A BIG One

There could be up to 6 changes to the Hang Seng China Enterprises Index (HSCEI INDEX) at the December rebalance, mainly driven by the deletions.
If there are six changes to the index, estimated one-way turnover is 6.47% and will result in a one-way trade of HK$4,124m.
There is large short interest on quite a lot of stocks and will play an important role in the rebalance.

SOHO China (410 HK): Blackstone Deal Potentially Back On As Pan Shiyi Goes “Altruistic”

Pan Shiyi and Pan Zhangxin – Chairman and CEO respectively of SOHO China (410 HK) – have tendered their resignations, with immediate effect.
Both are resigning “to focus on supporting the arts and philanthropic pursuits“.
That sounds like a “donation” is on the cards. And the Pans selling their stake in SOHO China would nicely fund that donation.

CALB IPO: The Bear Case

CALB (CALBLZ CH), a leading EV battery manufacturer, is seeking to raise US$2.0 billion through an HKEx IPO, according to press reports.
In CALB IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
The key elements of the bear case rest on its small scale, low profitability and high FCF burn compared to listed peers.

Hong Kong CEO & Director Dealings – 1st Sept 2022: A8 New Media, China Fordoo

The data in this insight is collated from the “shareholding disclosure” link on the HKEx website
Often there is a corresponding HKEx announcement on the increase – or decrease – in the shareholding by directors. However, such disclosures are by no means an absolute.
These insights may also flag those companies where shares have been pledged, both recently and ongoing. Stocks mentioned include A8 New Media (800 HK) and China Fordoo Holdings (2399 HK).

Morning Views Asia: China SCE, CIFI Holdings

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.

China SCE
CIFI Holdings

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Sep 08

Daily Brief Japan: Hitachi Transport System, SG Holdings, JMDC Inc, Tokyo Stock Exchange Tokyo Price Index Topix and more

By Smartkarma Daily Briefs | Daily Briefs, Japan

In today’s briefing:

Hitachi Transport (9086 JP) – Tender Launch Likely Soon But Watch for Flow
SG Holdings Placement – Had Suffered from Weak Price Momentum, Buyback Should Support Share Price
JMDC Offering – Smaller Than It Looks
Investment Managers Should Seek Ways to Reflect ESG Investing in Their Investment Performance

Hitachi Transport (9086 JP) – Tender Launch Likely Soon But Watch for Flow

Hitachi Transport System (9086 JP) has had a “long” wait to get its approvals, but EC and China are in, any remaining should be in shortly.
Yesterday, as a footnote on the SG Holdings offering document, there was a comment about SG Holdings selling shares. This was likely more good corporate governance hygiene than warning.
Shares are down this morning. I’d expect final approvals and launch quite soon. I would therefore look to buy the dip on flow – block or not.

SG Holdings Placement – Had Suffered from Weak Price Momentum, Buyback Should Support Share Price

By Clarence Chu

MUFG Bank and Sumitomo Mitsui Banking Corp are looking to raise a combined US$210m from trimming their respective stakes in SG Holdings (9143 JP).
While representing 16 days of three month ADV, comprising only 10.1m shares, 1.57% of the firm’s current market cap, the deal is a small one on an absolute basis.
In this note, we will talk about the placement and run the deal through our ECM framework.

JMDC Offering – Smaller Than It Looks

In February 2022, Noritsu Koki (7744 JP) – longtime holder of JMDC Inc (4483 JP) – sold 2/3 of its holdings to Omron (6645). Omron made a US$1bn new bet.
Shares fell after Q1 results, and then fell another 7% in 2 days after the company announced a primary offering for ¥22bn to international investors, ¥11bn to Omron.
High PER but Fundamental Forecasts are up-and-to-the-right, and there is a surprising amount of flow mitigation from passive investor activity the next 3 months.

Investment Managers Should Seek Ways to Reflect ESG Investing in Their Investment Performance

By Aki Matsumoto

The lackluster ESG investing trust performance is the main reason for the sharp decline in new setups, as retail investors tend to trade short term.
The fact that Japanese companies aren’t leading the world in green practices and are reluctant to disclose their activities are the factors that prevent wash from occurring and being detected.
While it’s difficult to evaluate ESG investing in short-term-performance, it’s important to pay attention to how management is taking measures to increase corporate value in ESG perspective in particular G.

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Sep 08

Daily Brief TMT/Internet: Sea Ltd, KMW Co Ltd, JMDC Inc, True Corp Pcl, KT Corp, A8 New Media, Top Material, Salesforce.Com Inc, Workday Inc Class A and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

Sea Ltd – Just About Doomed
KRX New Deal Index Rebalance: All Forecasts Right as KMW Soars and AfreecaTV Drops
KRX K-New Deal Rebalancing: Official Results & Passive Flows
JMDC Offering – Smaller Than It Looks
DTAC/True Merger: NBTC Likely to Set Measures to Approve Merger
Major Stock Swap Between Hyundai Motor Group and KT Corp
Hong Kong CEO & Director Dealings – 1st Sept 2022: A8 New Media, China Fordoo
Top Material IPO Preview
Salesforce.com Inc: Code Builder Update & Other Drivers
Workday Inc: Growing Customer Base

Sea Ltd – Just About Doomed

By Oshadhi Kumarasiri

It was reported yesterday that Sea Ltd (SE US)‘s e-commerce arm “Shopee” has begun rescinding job offers.
Having burnt around $2.0bn during the first six months of 2022 pursuing e-commerce and fintech growth aspirations, this seems like an extreme measure to ensure the company’s survival.
With the gaming profitability fading, we are starting to think that even the extreme cost-cutting could be insufficient to overturn Sea’s e-commerce and fintech cash burn.

KRX New Deal Index Rebalance: All Forecasts Right as KMW Soars and AfreecaTV Drops

The KRX announced the changes to the KRX New Deal indices post market close on Friday. But the changes were not made public and are only available to subscribers.
Intellian Technologies (189300) and Seojin System (178320) replace Danal (064260) and Kcp (060250) in the Internet Index, while KMW Co Ltd (032500 KS) replaces AfreecaTV (067160 KS) in BBIG.
Since we published our last forecast on 21 July, KMW Co Ltd (032500 KS) is up 12% while AfreecaTV (067160 KS) has dropped 17%.

KRX K-New Deal Rebalancing: Official Results & Passive Flows

By Sanghyun Park

KMW replaces AfreecaTV in BBIG. There is no constituent change for Battery and Bio. Seojin and Intellion replace NHN KCP and Danal in Internet. Nexon Games replaces Devsisters in Game.
The effective date has been postponed to the 13th, and the ETF operators will conduct the rebalancing trading at the close tomorrow, the 8th.
Regarding relative passive impact, KMW and AfreecaTV should receive the most attention, and this pattern is already appearing today.

JMDC Offering – Smaller Than It Looks

In February 2022, Noritsu Koki (7744 JP) – longtime holder of JMDC Inc (4483 JP) – sold 2/3 of its holdings to Omron (6645). Omron made a US$1bn new bet.
Shares fell after Q1 results, and then fell another 7% in 2 days after the company announced a primary offering for ¥22bn to international investors, ¥11bn to Omron.
High PER but Fundamental Forecasts are up-and-to-the-right, and there is a surprising amount of flow mitigation from passive investor activity the next 3 months.

DTAC/True Merger: NBTC Likely to Set Measures to Approve Merger

The Bangkok Post reports that the Thai regulator (NBTC) will propose ten remedial measures to approve the Total Access Communication (DTAC TB)/True Corp Pcl (TRUE TB) merger.
The NBTC board is not expected to issue a final decision as it waits for an interpretation by the Council of State if it can approve or reject the merger.
The current share price ratio is 9.511x vs the swap ratio of 10.221x. At last close, DTAC and True’s gross spread to the VTO price is 9.2% and 10.7%, respectively.

Major Stock Swap Between Hyundai Motor Group and KT Corp

On 7 September, Hyundai Motor (005380 KS) announced a major stock swap with KT Corp (030200 KS).
KT will exchange about 750 billion won (7.7%) of KT’s treasury stock for 445.6 billion won (1.04%) of Hyundai Motor shares and 300.3 billion won (1.46%) of Hyundai Mobis shares.
This stock swap is likely to have a bigger positive impact on KT versus Hyundai Motor and Hyundai Mobis.

Hong Kong CEO & Director Dealings – 1st Sept 2022: A8 New Media, China Fordoo

The data in this insight is collated from the “shareholding disclosure” link on the HKEx website
Often there is a corresponding HKEx announcement on the increase – or decrease – in the shareholding by directors. However, such disclosures are by no means an absolute.
These insights may also flag those companies where shares have been pledged, both recently and ongoing. Stocks mentioned include A8 New Media (800 HK) and China Fordoo Holdings (2399 HK).

Top Material IPO Preview

Top Material is getting ready for an IPO in October in Korea. The IPO price range is from 27,000 won to 30,000 won.
Established in 2012, Top Material’s main business is in system engineering. It also provides high performance electrode and cathode materials for the lithium ion based rechargeable batteries.
Top Material had sales of 31.9 billion won (up 375% YoY) and operating profit of 4.8 billion won (up 930% YoY) in 2021.

Salesforce.com Inc: Code Builder Update & Other Drivers

Salesforce has generated excellent revenue growth, profitability, and cash flows in its last result, surpassing Wall Street expectations on all counts despite operating in a challenging financial climate.
With new clients like the U.S.
Department of Veterans Affairs, Workday, and Uber, Service Cloud grew 14% year over year or 18% in constant currency.

Workday Inc: Growing Customer Base

Workday delivered another all-around beat, outperforming market expectations with respect to its operating indicators, highlighting the ongoing significance of digital transformation for finance and HR.
Along with the significant expansion of their core HCM and financial apps, Q2 saw remarkable momentum throughout their broader spectrum of solutions.
Customers create apps with Extend customized for their specific use cases, potentially eliminating the need for additional specialized development tools.

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Sep 08

Daily Brief Health Care: Global Health (Medanta), PureTech Health and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Global Health Pre-IPO – Stiff Competition Makes Growth Look Mediocre
PureTech Health (PRTC LN): Continued Value Unlocking; Multiple Catalysts Are Pushing Up Stock Price

Global Health Pre-IPO – Stiff Competition Makes Growth Look Mediocre

By Ethan Aw

Global Health (Medanta) (GH IN) is looking to raise approximately US$270m in its upcoming India IPO.
Global Health (GH) is a hospital network that operates under the Medanta brand. The firm currently has five hospitals in operation and one more planned for development.
The company has managed to remain profitable throughout COVID-19 and even experienced margin expansion in FY22. However, its post-COVID growth might be short-lived given stiff competition amongst peers.

PureTech Health (PRTC LN): Continued Value Unlocking; Multiple Catalysts Are Pushing Up Stock Price

By Tina Banerjee

PureTech Health (PRTC LN) has raised approximately $115.4 million through partial offloading of stake in Karuna Therapeutics Inc (KRTX US). PureTech will continue to hold 3.5% of Karuna’s outstanding shares.
Following the transactions, PureTech has updated guidance to extend its operational runway to Q1 2026 from prior cash runway guidance into Q1 2025.
Karuna plans to submit a new drug application for KarXT in schizophrenia with the FDA in mid-2023. As a co-inventor of KarXT, PureTech has the right to receive royalty.

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Sep 08

Daily Brief Industrials: Hitachi Transport System, SG Holdings, CALB, InterGlobe Aviation Ltd and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Hitachi Transport (9086 JP) – Tender Launch Likely Soon But Watch for Flow
SG Holdings Placement – Had Suffered from Weak Price Momentum, Buyback Should Support Share Price
CALB IPO: The Bear Case
Interglobe Aviation (Indigo) Placement – The Beginning of the End of the Overhang

Hitachi Transport (9086 JP) – Tender Launch Likely Soon But Watch for Flow

Hitachi Transport System (9086 JP) has had a “long” wait to get its approvals, but EC and China are in, any remaining should be in shortly.
Yesterday, as a footnote on the SG Holdings offering document, there was a comment about SG Holdings selling shares. This was likely more good corporate governance hygiene than warning.
Shares are down this morning. I’d expect final approvals and launch quite soon. I would therefore look to buy the dip on flow – block or not.

SG Holdings Placement – Had Suffered from Weak Price Momentum, Buyback Should Support Share Price

By Clarence Chu

MUFG Bank and Sumitomo Mitsui Banking Corp are looking to raise a combined US$210m from trimming their respective stakes in SG Holdings (9143 JP).
While representing 16 days of three month ADV, comprising only 10.1m shares, 1.57% of the firm’s current market cap, the deal is a small one on an absolute basis.
In this note, we will talk about the placement and run the deal through our ECM framework.

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