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Smartkarma Daily Briefs

Feb 19
0

Daily Brief Consumer: Mixue Group, Tam Jai International, Alibaba Group Holding , Midea Group, Papa John’S Intl, Stamford Tyres Corp, Consorcio ARA, WK Kellogg , Lands’ End Inc and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Mixue Group IPO Preview
  • Tam Jai Intl (2217 HK): It Seems like Quite Some People Are Unhappy
  • Alibaba (9988 HK): How Options Traders Are Navigating the Rally and Volatility. Top Trades.
  • Mixue IPO: More than Just Tea. Key Facts, Financials and Analysis
  • Midea IPO Re-Evaluation
  • Papa John’s Takeover Bid? Why This Pizza Chain Could Be A Prime Target For Irth Capital!
  • Stamford Tyres Corporation Limited (SGX: S29): A Steady Drive
  • Actinver Research – ARA 4Q24: Positive Quarterly Results in Line with Our Estimates (Quick View)
  • WK Kellogg Surges on Ferrero Takeover Speculation – Is a Deal on the Horizon?
  • LE: Snapping the Catalog: Swim Rising; Reiterate Buy Rating, $20 PT

Mixue Group IPO Preview

By Douglas Kim

  • Mixue Group is getting ready to complete its IPO in Hong Kong in the coming weeks. Mixue Group plans to raise about US$500 million from its Hong Kong IPO.
  • The company has an excellent income statement with notable growth in sales and profits in the past four years.
  • Net margin improved from 15.7% in 2023 and 18.7% in 1Q-3Q 2024, driven by higher sales base and lower major operating costs as a percentage of sales

Tam Jai Intl (2217 HK): It Seems like Quite Some People Are Unhappy

By Osbert Tang, CFA

  • Tam Jai International (2217 HK)‘s privatisation price is lower than we expected, based on 1.37x 12-month forward P/B, against our expectation of 1.63x (the historical average).
  • The PER of 21.1x for CY25, a premiuim to sector average of 13.7x, however, looks attractive enough for investors that entered in the last 12 months. 
  • The 52.6% discount to IPO price (HK$3.33) and huge net cash have made some early investors unhappy. There is already letter from a minority shareholder calling to vote against it.

Alibaba (9988 HK): How Options Traders Are Navigating the Rally and Volatility. Top Trades.

By Gaudenz Schneider

  • This Insight analyses Alibaba Group Holding (9988 HK) tailor-made option strategies traded over the last five trading days on the Hong Kong Exchange. Strategy highlights and volatility context are provided.
  • These traders tailor structures to risk budgets and take calculated bets. Several large box trades appeared on the ticker.
  • Expect more movement on Alibaba Group Holding (9988 HK)‘s Q3 earnings announcement tomorrow, 20 February 2025. Option-implied move at the end of this Insight.

Mixue IPO: More than Just Tea. Key Facts, Financials and Analysis

By Devi Subhakesan

  • Mixue Group, the largest freshly-made drinks company in China, is reportedly set to begin book building for its Hong Kong IPO by end-February, targeting to raise approximately USD 500 million.
  • Mixue Group (MIX HK)‘s mass-market pricing strategy and compelling value for money positioning targets price-sensitive consumers, especially in lower-tier cities and among youth, driving high-volume sales.
  • Mixue Group (MIX HK) reported robust revenue and profit growth for first nine months of 2024 led by new store openings and margin expansion despite sector slowdown and intensifying competition.

Midea IPO Re-Evaluation

By Alex Ng

  • Midea is a sound equity investment which is a market leader in the electronics products with just 12.8 trailing PE. 
  • China newly launched consumer trade-in policy could become the new driver of Midea’s revenue stream. 
  • Overseas business expansion could become the new game changer to re-rate the company’s valuation in the longer term.

Papa John’s Takeover Bid? Why This Pizza Chain Could Be A Prime Target For Irth Capital!

By Baptista Research

  • Papa John’s International recently announced their third-quarter 2024 financial results, delineating a mixedperformance.
  • The company’s primary focus is set on improving execution, profitability, and sustainable shareholder value.
  • Todd Penegor, the recently appointed President and CEO, along with a restructuring inthe leadership team, emphasizes a strategic drive toward refining product propositions, marketing strategies, and technology infrastructure.

Stamford Tyres Corporation Limited (SGX: S29): A Steady Drive

By Kilde

  • Headquartered in Singapore, Stamford Tyres Corporation Ltd. is a leading player in the global tire industry, primarily involved in the wholesale distribution, retail, and service of tires, automotive parts, and accessories. It is well-known for its extensive network of customers and strong relationships with major tire manufacturers.
  • The company has formed strategic partnerships with top tire manufacturers including with Falken, Dunlop and Continental. These collaborations provide Stamford Tyres access to high-quality products and a competitive edge in the market.
  • Southeast Asia remains the core market for the company contributing nearly 88% of revenues. Of this, Singapore is the largest market (42% of revenues) followed by Indonesia (18%), Thailand (15%) and Malaysia (10%). Stamford Tyres also generates 10% of revenues from South Africa.

Actinver Research – ARA 4Q24: Positive Quarterly Results in Line with Our Estimates (Quick View)

By Actinver

  • Total revenues of P$1.8bn were in line with our estimates and increased 18% YoY.
  • Housing revenues (95% of total) were up 21% due to a 14% YoY increase in the housing volume and a 6% YoY gain in the average selling price to P$1.2 million.
  • Revenues from the affordable and middle-income segments maintain a positive trend, being the main catalyst for the positive results.

WK Kellogg Surges on Ferrero Takeover Speculation – Is a Deal on the Horizon?

By Baptista Research

  • The WK Kellogg Company recently reported its fourth-quarter and full-year 2024 financial results with notable highlights and areas for investor consideration.
  • On the positive side, the company successfully progressed its strategic priorities, notably modernizing its supply chain and developing its standalone operating infrastructure following its separation from Kellanova.
  • This has already led to improved supply chain performance, with increased operational efficiency and a boost to gross margins, which grew by 90 basis points to 29.8% for the year.

LE: Snapping the Catalog: Swim Rising; Reiterate Buy Rating, $20 PT

By Small Cap Consumer Research

  • We are reiterating our Buy rating, projections and $20 price target for Lands’ End after reviewing the February catalog.
  • After a small taste last month, swimwear and Spring are the key focuses, with almost 50% of the February catalog swimwear related.
  • February demonstrates a continued focus on features to tell a compelling retail story, expansion into more fashion driven silhouettes, creating an outfit driven culture to drive multiple item purchases and positioning Lands’ End as a solutions-driven retailer.

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Feb 19
0

Daily Brief Health Care: Mesoblast Ltd, Japan Eyewear Holdings , Cytokinetics Inc, Classys, Rani Therapeutics Holdings , Encompass Health , Arcutis Biotherapeutics , VISEN Pharmaceuticals, Ab&B Bio-Tech, Telomir Pharmaceuticals and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • S&P/​​​​​​​​​ASX Index Rebalance Preview: Changes Stable as Adds Outperform Deletes Bigly
  • Japan Eyewear Holdings: A Short-Term Setback, Long-Term Opportunity?
  • Cytokinetics Back In The Spotlight Amid Fresh Takeover Speculation: Why Big Pharma May Be Eyeing This Biotech Gem?
  • Classys (214150 KS): 2024 Sales Beat Guidance; New Record Sales Target for 2025
  • RANI: Impressive Bioavailability for RT-116
  • Encompass Health Corporation: An Insight Into Its Strategic Construction
  • Arcutis Biotherapeutics Attracting Takeover Speculation Amid Explosive Growth: What Is It Worth?
  • Pre-IPO VISEN Pharmaceuticals (PHIP Updates) – Some Points Worth the Attention
  • Ab&B Bio-Tech (中慧生物) Pre-IPO: A Shaky Story of Flu Vaccine Rising Star
  • TELO: Exciting Test Results Bode Well for Future

S&P/​​​​​​​​​ASX Index Rebalance Preview: Changes Stable as Adds Outperform Deletes Bigly

By Brian Freitas

  • Nearing a few days left in the review period, there could be 39 adds/deletes across the S&P/ASX family of indices in March.
  • Passive trackers will need to trade a lot of stock in the forecast changes, with the impact being especially large for the changes to the S&P/ASX 200 and S&P/ASX 300.
  • Except for the S&P/ASX 200 (AS51 INDEX) that is heavily tracked, the performance of the forecast changes to the other indices has been very stable with adds outperforming deletes bigly.

Japan Eyewear Holdings: A Short-Term Setback, Long-Term Opportunity?

By Oshadhi Kumarasiri

  • On February 14, 2025, JEH announced the cancellation of its planned share offering and withdrew its Prime Market listing application due to a potential insider trading violation involving an executive.
  • While the news may trigger a sharp correction in the stock, JEH’s core business remains strong, driven by pricing power, expansion opportunities, and growing inbound demand.
  • If governance concerns are effectively addressed, the stock could offer a compelling buy-and-hold opportunity once market sentiment stabilizes.

Cytokinetics Back In The Spotlight Amid Fresh Takeover Speculation: Why Big Pharma May Be Eyeing This Biotech Gem?

By Baptista Research

  • Cytokinetics Inc. reported its third quarter 2024 results, highlighting significant developments across its pipeline and commercial readiness efforts.
  • A notable achievement was the completion of the rolling submission and the new drug application to the FDA for aficamten, a cardiac myosin inhibitor targeting obstructive hypertrophic cardiomyopathy (HCM).
  • This represents a key milestone in Cytokinetics’ efforts to bring potentially transformative therapies to market.

Classys (214150 KS): 2024 Sales Beat Guidance; New Record Sales Target for 2025

By Tina Banerjee

  • Classys (214150 KS) reported record-high revenue of KRW243B for 2024, 8% ahead of guidance. Operating profit grew 37% YoY to KRW 123B, and the operating profit margin improved to 50.4%.
  • Volnewmer remained the key growth driver. Volnewmer has exceeded 1,200 units in annual global sales mainly due to successful launches in major countries including Brazil, Thailand, and the U.S.
  • The company has guided for 2025 sales of KRW350B, up 44% YoY. 2025 operating profit margin is expected to improve from the operating profit margin of 48.1% reported in 4Q24.

RANI: Impressive Bioavailability for RT-116

By Zacks Small Cap Research

  • Rani is a clinical-stage biotherapeutics company developing the ingestible robotic RaniPill (RP) that enables oral delivery of biologics & other large molecules.
  • Its pipeline features clinical assets RT-102 (teriparatide for osteoporosis) & RT-111 (ustekinumab for psoriasis).
  • Both programs have completed Ph1 trials characterizing safety tolerability & pharmaco-kinetics.

Encompass Health Corporation: An Insight Into Its Strategic Construction

By Baptista Research

  • Encompass Health Corporation concluded its fourth quarter of 2024 with a robust financial performance, emphasizing strategic growth and improved patient care metrics.
  • The company reported a 12.7% increase in revenue for the quarter, reaching $1.4 billion, alongside a 13.6% rise in adjusted EBITDA to $289.6 million.
  • Key metrics contributing to this growth were the 7.8% increase in discharges and a 4.2% rise in net revenue per discharge.

Arcutis Biotherapeutics Attracting Takeover Speculation Amid Explosive Growth: What Is It Worth?

By Baptista Research

  • Arcutis Biotherapeutics’ latest financial results show a mix of strategic execution and market opportunity, underpinned by the performance of its ZORYVE portfolio.
  • The company’s Q3 2024 results highlighted substantial sales growth, reflecting a year-over-year increase of 452% and a sequential quarterly rise of 45%, bringing net product revenue to $44.8 million.
  • This growth is underpinned by the expansion of ZORYVE’s indications, now covering psoriasis, seborrheic dermatitis, and atopic dermatitis.

Pre-IPO VISEN Pharmaceuticals (PHIP Updates) – Some Points Worth the Attention

By Xinyao (Criss) Wang

  • All the three candidates lonapegsomatropin, TransCon CNP, palopegteriparatide in the pipeline of VISEN are based on Exclusive License Agreements with Ascendis Pharma. So, there’re concerns about VISEN’s independent R&D capabilities.
  • VBP would destroy the price system of growth hormone market in China, and market size would shrink due to price reduction and decreasing demand as fewer babies will be born.
  • Post investment valuation reached US$1.03 billion. Since leading domestic companies have dominated the market, it’s not easy for VISEN to break through. Valuation of VISEN could be lower than peers.

Ab&B Bio-Tech (中慧生物) Pre-IPO: A Shaky Story of Flu Vaccine Rising Star

By Ke Yan, CFA, FRM

  • China-Based vaccine biopharmaceutical company Ab&B is looking to raise at least US$100 million via a Hong Kong listing.
  • In this note, we look at the story that the company is trying to market.
  • We are of the view that the potential of its core flu vaccine product is not that rosy. Its pre-IPO investors and founders are of mediocre quality.

TELO: Exciting Test Results Bode Well for Future

By Zacks Small Cap Research

  • Telomir Pharmaceuticals is a preclinical stage company focused on the science of lengthening telomere caps, which the company believes will extend human lifespans and improve quality of life as people age.
  • The company released preclinical test results that showed exciting developments that could lead to a better treatment for AMD.

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Feb 19
0

Daily Brief TMT/Internet: XtalPi Holdings, Taiwan Semiconductor (TSMC) – ADR, Hexaware Technologies, Taiwan Semiconductor (TSMC), Baidu, SUTL Enterprise, Anterix , Innolux Corp, Mixi Inc, Soluna Holdings and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Xtapli Placement – Questionable Timing. An AI Momentum Play, at Best
  • Taiwan Tech Weekly: TSMC & Broadcom Exploring Intel Acquisition — Implications
  • Hexaware Technologies IPO Trading – Very Strong Anchor, Very Poor Overall
  • Profit Targets for TSMC (2330.TT) After Intel Acquisition Announcement
  • [Baidu, Inc. (BIDU US, SELL, TP US$78) Preview]: Baidu’s Problem Is Deep Rooted and Getting Worse
  • SUTL Enterprise (SGX: SUTL SP): A Leading Luxury Marina Developer for Asia Pacific
  • Anterix’s Strategic Review Sparks Acquisition Speculation: Is a Buyout on the Horizon?
  • Tech Supply Chain Tracker (19-Feb-2025): ASE opens fifth factory in Penang, with AI-driven smart manufacturing.
  • MIXI Inc. (2121 JP) – Sustaining Higher Returns Looks Realistic
  • Soluna Holdings, Inc. – CEO Highlights Growth Plans for 2025

Xtapli Placement – Questionable Timing. An AI Momentum Play, at Best

By Sumeet Singh

  • Xtapli is looking to raise around US$242m via a primary placement, after having raised US$145m in Jan 2025.
  • QuantumPharm is a R&D platform, utilizing quantum physics-based first-principles calculation, advanced AI, high-performance cloud computing, and scalable and standardized robotic automation to provide drug and material science R&D solutions.
  • In this note, we will talk about the placement and run the deal through our ECM framework.

Taiwan Tech Weekly: TSMC & Broadcom Exploring Intel Acquisition — Implications

By Vincent Fernando, CFA

  • TSMC & Broadcom Exploring Intel Acquisitions; Potential Major Consolidation in the Foundry Space
  • Taiwan AI Server Leader Expanding to Texas with New Production Hub
  • Semi WFE Revenues Increase ~7% YoY In 2024. 2025 Looks Much The Same. So, Where’s The AI Effect? 

Hexaware Technologies IPO Trading – Very Strong Anchor, Very Poor Overall

By Sumeet Singh

  • Hexaware Technologies raised around US$1bn in its India IPO, while its anchor book was strong, overall coverage was not. 
  • Hexaware is a global digital and technology services company with AI at its core, delivering innovative solutions that help customers in their digital transformation journey and subsequent operations.
  • We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.

Profit Targets for TSMC (2330.TT) After Intel Acquisition Announcement

By Nico Rosti

  • Taiwan Semiconductor (TSMC) (2330 TT) started to rally after an article on the WSJ said that the Taiwanese company is considering buying Intel’s semiconductor manufacturing plants.
  • As always, buy the rumor, sell the news is a possibile strategy here: our models say the stock is getting quickly overbought (WEEKLY period).
  • In this insight we will provide some short-term, tactical guidance to identify profit targets, where can you expect to see the stock reaching in the next few days/weeks.

[Baidu, Inc. (BIDU US, SELL, TP US$78) Preview]: Baidu’s Problem Is Deep Rooted and Getting Worse

By Ying Pan

  • We expect BIDU to post C4Q24 top line,non-GAAP operating profit and GAAP net income (5.1%), (7.7%) and (8.7%) vs. consensus.We expect BIDU to issue C1Q25 top line guidance (1.2%) vs.consensus;
  • BIDU’s problem is not only manifested in the loss of the Apple contract,it is also the loss of first mover advantage in both Generative Artificial Intelligence and Autonomous Driving Services. 
  • Losing traffic advantage, BIDU has become a self-containing app ecosystem but all pillars of this ecosystem is facing intensifying competition. SELL @US$78.

SUTL Enterprise (SGX: SUTL SP): A Leading Luxury Marina Developer for Asia Pacific

By Kilde

  • Singapore’s Premier Marina Operator. SUTL Enterprise is a leading Singapore-based marina developer, operator, and consultant, specializing in integrated luxury marina projects under its proprietary ONE°15 brand.
  • The company operates its flagship ONE°15 Marina Sentosa Cove and extends its expertise to third-party marinas through long-term management contracts and consultancy services. With a strong brand position and established industry leadership, SUTL is expanding across Asia-Pacific, capitalizing on growing demand for luxury yachting and premium marina infrastructure.
  • Diverse and Resilient Revenue Streams. SUTL generates revenue through recurring membership fees, marina management contracts, and sales of goods and services.

Anterix’s Strategic Review Sparks Acquisition Speculation: Is a Buyout on the Horizon?

By Baptista Research

  • Anterix has showcased notable developments in its fiscal third quarter of 2025 that have implications for prospective and current investors.
  • The company has announced a $13.5 million expansion agreement with the Lower Colorado River Authority, which expanded Anterix’s 900-megahertz broadband spectrum coverage in Texas.
  • This expansion is a testament to Anterix’s growing scale and its penetration into utility communications solutions, covering a substantial geographic footprint across 15 states, surpassing U.S. Cellular in coverage.

Tech Supply Chain Tracker (19-Feb-2025): ASE opens fifth factory in Penang, with AI-driven smart manufacturing.

By Tech Supply Chain Tracker

  • ASE opens its 5th factory in Penang, emphasizing AI-driven smart manufacturing to enhance production efficiency and quality.
  • Win Semiconductors plans to expand in optical communications by leveraging SiPh CPO technology, aiming to capitalize on growing market demand.
  • DRAM manufacturers are considering discontinuing production of DDR3 and DDR4 by the end of 2025, signaling a shift towards newer technologies.

MIXI Inc. (2121 JP) – Sustaining Higher Returns Looks Realistic

By Astris Advisory Japan

  • Stronger than expected performance – Q1-3 FY3/25 results were a positive surprise, with larger than expected OPM expansion YoY driven by effective advertising cost control in both the Digital Entertainment and Lifestyle segments and strong sales growth in the Sports segment driven by the Spectator Sports business.
  • The company has upwardly revised FY3/25 guidance, denoting a strong finish for Q4 FY3/25 and indicating that profitability will remain higher than expected for the medium term.
  • We have revised our earnings estimates for FY3/26, which denotes flat reported earnings growth YoY; the underlying trend, excluding the sale of Timee (215A) shares in FY3/25, shows OP growth of approximately 10% YoY.

Soluna Holdings, Inc. – CEO Highlights Growth Plans for 2025

By Water Tower Research

  • Belizaire discussed the strength of the 3Q24 numbers (4Q24 earnings report is due soon).
  • Results included a 30% Y/Y revenue increase, an adjusted EBITDA flip from a loss of $4.5 million in 3Q23 to a profit of $3.5 million in 3Q24, and the development of the Soluna Cloud (for AI computing).
  • For 2025, Belizaire is looking at a growing set of projects moving to operation and revenue, including a growing pipeline, hitting 2.6GW of computing power (with demand for more), flagship Dorothy, and projects Kati and Rosa.

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Feb 19
0

Daily Brief Financials: Goodman Group, EFCI Ltd, Keppel DC REIT, Arvind SmartSpaces, Banco BPM SpA, Volta Finance , Clip Money and more

By | Daily Briefs, Financials

In today’s briefing:

  • Goodman Group (GMG AU): Much Bigger Index Impact of US$2.5bn Equity Offering
  • EFC India Limited Q3 Update: Driving Growth Through Design and Build Verticals
  • Asia Real Estate Tracker (18-Feb-2025): ADIA, Hines sell Shanghai Trophy Tower for $1.5B
  • Arvind SmartSpaces Limited Q3 Update: Leveraging Market Trends for Future Revenue Potential
  • UniCredit’s Banco BPM Takeover: A Deal on the Brink?
  • Volta Finance Limited (VTAS): 2024 experience bodes well for 2025
  • Clip Money, Inc. – Raising Estimates Due to Faster Growth and the New Green Dot Partnership

Goodman Group (GMG AU): Much Bigger Index Impact of US$2.5bn Equity Offering

By Brian Freitas

  • Goodman Group went into a trading halt and then announced results and an underwritten equity placement of A$4bn (US$2.54bn) to pursue growth opportunities across logistics and data center operations.
  • The stock has dropped since CIC’s stake sale in December but still continues to handily outperform peers.
  • There will be some passive buying in the stock at the time of share settlement and more a few days later to mop up around 37% of the offering.

EFC India Limited Q3 Update: Driving Growth Through Design and Build Verticals

By Sudarshan Bhandari

  • EFCI Ltd (EFCIL IN) witnessed a robust Q3 & 9M FY25 growth with sequential revenue, EBITDA, and PAT increases; new SM REIT registration and strategic seat expansion initiatives bolster operations.
  • Strong financial performance amid market challenges underscores resilience in flexible workspace and real estate sectors, positioning EFC India to capitalize on rising demand and government support.
  • Company is planning to add 25000 seats annually, where expecting furniture vertical worth INR 150Crs and Design & Build worth INR 225-250Crs next year.

Asia Real Estate Tracker (18-Feb-2025): ADIA, Hines sell Shanghai Trophy Tower for $1.5B

By Asia Real Estate Tracker

  • ADIA and Hines sell Shanghai Tower for $1.5B to insurer-backed fund, showcasing large-scale real estate transactions.
  • Keppel DC REIT sells German data centre at 39% loss from 2019 purchase price, indicating potential challenges in the real estate market.
  • TPG offers $65M for Econ Healthcare, Singapore nursing home operator, amidst growing interest in healthcare industry investments.

Arvind SmartSpaces Limited Q3 Update: Leveraging Market Trends for Future Revenue Potential

By Sudarshan Bhandari

  • Arvind SmartSpaces (ARVSMART IN) posted 149% YoY revenue growth in Q3 FY25 and secured new projects worth RS. 3,850 crore, despite a 20% YoY decline in bookings due to approval delays.
  • Improved profitability and strategic project wins underscore its resilience in a dynamic real estate market, driving long-term value despite operational hurdles.
  • Company is planning to deploy Rs.500 to Rs. 600 crore in both vertical and horizontal projects over the next six months.

UniCredit’s Banco BPM Takeover: A Deal on the Brink?

By Jesus Rodriguez Aguilar

  • Danish Compromise Uncertainty: If Banco BPM fails to secure Danish Compromise approval, its CET1 ratio could decline by 268bps, making it a riskier acquisition for UniCredit, potentially jeopardizing the deal.
  • UniCredit’s Strategic Dilemma: UniCredit may renegotiate the exchange ratio, withdraw the bid, or pursue Commerzbank instead, as Banco BPM’s Anima acquisition increases capital consumption risks and complicates UniCredit’s strategic plans.
  • Market Skepticism: As of February 18, 2025, Banco BPM’s shares trade at €9.04, while UniCredit’s offer values them at €8.47, leading to a +6.7% gross spread.

Volta Finance Limited (VTAS): 2024 experience bodes well for 2025

By Hardman & Co

  • Volta has delivered +21.2% 2024 total NAV return, outperforming i) B-rated CLO tranches (+19.2%), ii) US high yield (+8.2%), iii) Euro high yield (+8.6%), and iv) global loans (+7.3%).
  • Its performance reflects positive markets and the incremental value added by the manager through its asset selection and portfolio management.
  • Looking into 2025, we expect another strong year from CLOs: more market growth (partially driven by loans issued to fund greater PE activity), and stable, if not falling, defaults offsetting some spread tightening and fewer pull to par benefits from loans restructuring.

Clip Money, Inc. – Raising Estimates Due to Faster Growth and the New Green Dot Partnership

By Zacks Small Cap Research

  • Clip Money is a rapidly growing NCR-backed start-up based in Ottawa, Canada, and operating in Canada and the US.
  • It is helping physical stores and businesses quickly, safely, and less expensively deposit cash into their bank accounts, as well as replenishing notes and coins for store operations.
  • The company uses its proprietary software platform to facilitate cash management, and its network is made up of a network of DropBoxes, NCR ATMs located in retail outlets and a second half roll out at Green Dot locations.

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Feb 18
0

Daily Brief ESG: Going Private Is Not a Problem for a Special Company and more

By | Daily Briefs, ESG

In today’s briefing:

  • Going Private Is Not a Problem for a Special Company, but a Common Problem for All Listed Companies

Going Private Is Not a Problem for a Special Company, but a Common Problem for All Listed Companies

By Aki Matsumoto

  • While the homework imposed on companies has been increasing year by year, TSE’s market restructuring and “request to raise P/B” have made companies directly aware of the cost of listing.
  • MBO is a company’s choice to go private as a result of the cost of maintaining a public listing. Many companies have yet to reach this conclusion.
  • The conversion of listed subsidiaries into wholly owned subsidiaries is a conclusion that has finally been reached; 230 listed subsidiaries will have to come to some conclusion eventually.

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Feb 18
0

Daily Brief Thematic (Sector/Industry): Understanding the cattle cycle and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • Understanding the cattle cycle, why US beef prices are at record highs and the role of Australia …
  • Semi WFE Revenues Increase ~7% YoY In 2024. 2025 Looks Much The Same. So, Where’s The AI Effect?
  • Ohayo Japan | Japan GDP Surprises
  • [Blue Lotus China New Consumer Weekly, 7/52] Xi’s Meeting with Ma Closed the Anti-Monopoly Chapter

Understanding the cattle cycle, why US beef prices are at record highs and the role of Australia …

By Commodities Focus

  • The cattle cycle is a long-term cyclical fluctuation in cattle inventory driven by economic signals
  • Important metrics to consider include availability of female animals, profitability in feeding and cow-calf sectors
  • Brazil and Australia are the main suppliers of beef to the US, with a large portion of imports being lean trim beef

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Semi WFE Revenues Increase ~7% YoY In 2024. 2025 Looks Much The Same. So, Where’s The AI Effect?

By William Keating

  • Q424 revenues for the top 5 WFE players amounted to $28.7 billion, up 10% QoQ and up 21.7% YoY and an all time record high quarterly revenue for the segment
  • For the full year 2024, revenues amounted to $99.74 billion, up 7% sequentially, and slightly exceeding our forecasted 5% growth.
  • WFE growth in 2025 will be similar to 2024, with slowing China spending coupled with historic over capacity across the industry countering anticipated AI & technology transition related increases 

Ohayo Japan | Japan GDP Surprises

By Mark Chadwick

  • US market closed for Presidents’ Day; The Stoxx Europe 600 index rose 0.5%
  • European defense stocks soared Monday, with BAE Systems, Thales, and Rheinmetall jumping over 7%, driven by NATO allies’ plans to boost defense budgets
  • Japan’s economy grew 2.8% annually (0.7% QoQ) in the October-December period, exceeding forecasts, driven by external demand

[Blue Lotus China New Consumer Weekly, 7/52] Xi’s Meeting with Ma Closed the Anti-Monopoly Chapter

By Eric Wen

  • Many has cheered or felt relieved over Xi’s weekend meeting with the top Chinese business community. We see a closer relationship between the state apparatus and private enterprises going forward;
  • January 2025 saw improvement in social financing, with meaningful recovery in corporate financing. Recovery for BOSS might be forthcoming;
  • BYD dropped the bombshell in populating autonomous driving service (ADS) in sub-Rmb100K vehicles. We view it as another DeepSeek moment. The biggest loser is Tesla. Fast ADS rollout supports AGI.

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Feb 18
0

Daily Brief ECM: Sony To Sell Down SRE Holdings (2980 JP) Block – AI-Related Growth Stock Should See Support and more

By | Daily Briefs, ECM

In today’s briefing:

  • Sony To Sell Down SRE Holdings (2980 JP) Block – AI-Related Growth Stock Should See Support
  • JX Advance Metals Pre-IPO – The Positives – Transforming
  • Pre-IPO MIXUE Group Update – The Snow King Is Facing Headwinds
  • Hi-Think Technology Pre-IPO Tearsheet

Sony To Sell Down SRE Holdings (2980 JP) Block – AI-Related Growth Stock Should See Support

By Travis Lundy

  • SRE Holdings Corp (2980 JP) does a business in AI Cloud&Consulting for the real estate, finance, and Life & Healthcare business. Sony Corp (6758 JP) is selling a stake.
  • The offering is for about US$50mm assuming a 10% discount today’s close. It is not clear how much this was expected but there is a decent-sized short position. 
  • The stock has its ups and downs, and recently decided it liked Q3 earnings and guidance. That bodes well for the offering.

JX Advance Metals Pre-IPO – The Positives – Transforming

By Sumeet Singh

  • JX Advance Metal’s (JXAM) parent, ENEOS Holdings (5020 JP), is looking to raise around US$2.6bn via selling more than half of its stake in JXAM in its Japan IPO.
  • JXAM engages in business activities primarily focused on the development, manufacture and sale of materials made from copper and rare metals, which are used  in the semiconductor and ICT fields.
  • In this note, we talk about the positive aspects of the deal.

Pre-IPO MIXUE Group Update – The Snow King Is Facing Headwinds

By Xinyao (Criss) Wang

  • MIXUE invited experts to conduct calculations based on population data. The result is a maximum of 45,000 stores can be opened. So, MIXUE has reached the growth ceiling in China.
  • The pain point is since MIXUE’s growth depends significantly on its ability to expand store network, once the growth of franchised stores slows down, a performance decline would be inevitable.
  • Due to larger scale effect/stronger supply chains/higher net profit margin, MIXUE’s valuation should be higher than peers. Higher valuation depends on whether MIXUE is able to make breakthrough in internationalization.

Hi-Think Technology Pre-IPO Tearsheet

By Nicholas Tan

  • Hi-Think Technology International Ltd (2224226D HK)  is looking to raise at least US$150m in its upcoming Hong Kong IPO.
  • It is a leading Chinese provider of digital intelligence software technology services and solutions serving the international market.
  • It was the largest Chinese provider of software technology services and solutions to the Japanese market.

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Feb 18
0

Daily Brief Credit: Weekly News & Views (Suzano and more

By | Credit, Daily Briefs

In today’s briefing:

  • Weekly News & Views (Suzano, YPF, Vista, Cemex, Minerva).

Weekly News & Views (Suzano, YPF, Vista, Cemex, Minerva).

By Leandro Gubler

  • The LatAm Aggregate Index contracted modestly by 1 bps to 307 bps in the week ending Friday, February 14, 2025.
  • Argentina’s inflation rate slowed to 2.2% in January, the lowest monthly figure in 4.5 years, according to INDEC.
  • We upgraded Suzano’s 2031s and 2032s to Outperform, while maintaining the rest of the curve at Market Perform.

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Feb 18
0

Daily Brief Equity Bottom-Up: Himax Sees Chinese Automakers Far Ahead in Adopting Touch Displays; CoPackaged Optics Key for AI/HPC and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Himax Sees Chinese Automakers Far Ahead in Adopting Touch Displays; CoPackaged Optics Key for AI/HPC
  • Trip.com (TCOM) 4Q24 Preview: Rising with Travelers, But High in Stock Price
  • Windward’s Marc Chalfin and Jay Upadhyay describes the overhaul and new vision at Groupon $GRPN
  • Illumina Inc.: Is its Transition to NovaSeq X Series Noteworthy?
  • Genpact Limited: Will Its Advancement in Data, Tech, and AI Help Alter The Playing Field?
  • Tech Supply Chain Tracker (18-Feb-2025): Apple may assemble iPhones in Indonesia to comply with local rules.
  • Bank Rakyat Indonesia (BBRI IJ) – Visibility and Quality Improving
  • Kilburn Engineering Limited Q3 FY25 Update: Strategic Acquisitions and Strong Growth
  • Ralph Lauren: Key City Ecosystem & Global Reach As a Global Growth Strategy!
  • Haitian Flavouring: Looking for Soy Sauces on the Ground

Himax Sees Chinese Automakers Far Ahead in Adopting Touch Displays; CoPackaged Optics Key for AI/HPC

By Vincent Fernando, CFA

  • Himax 4Q24 Results Show Auto Display Surge — Structural Growth Story Visible with Touch Panel Usage in Vehicles Soaring
  • China vs. the Rest of the World: Who’s Moving Faster? China Automakers Far Ahead in Display Sophistication
  • Himax on Co-Packaged Optics (CPO) — A Critical New Technology for AI and HPC Processing

Trip.com (TCOM) 4Q24 Preview: Rising with Travelers, But High in Stock Price

By Ming Lu

  • In China, travelers grew by 13% YoY in 4Q24 and 15% in 2024, according to the National Bureau of Statistics.
  • We expect total revenue will grow by 19% YoY in 4Q24 and 2024.
  • We are confident in the company’s financial performance, but the stock price is overvalued.

Windward’s Marc Chalfin and Jay Upadhyay describes the overhaul and new vision at Groupon $GRPN

By Yet Another Value Podcast

  • Groupon is a lead generation tool for local service businesses that offers discounted deals.
  • The speaker, from the hedge fund Windward, believes Groupon presents a highly asymmetric and convex investment opportunity with potential for a 5 to 1 risk-reward ratio.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Illumina Inc.: Is its Transition to NovaSeq X Series Noteworthy?

By Baptista Research

  • Illumina, a leading genomic sequencing company, reported its financial results for the fourth quarter of 2024, marking a slight revenue increase of 1% year-over-year to $1.1 billion.
  • This growth was primarily driven by high throughput sequencing consumables as the company continues to shift its customer base towards its new NovaSeq X series of instruments.
  • The company placed 91 NovaSeq X instruments in the quarter, reaching an installed base of 630, and enjoyed a robust pull-through performance, averaging $1.3 million per system in 2024.

Genpact Limited: Will Its Advancement in Data, Tech, and AI Help Alter The Playing Field?

By Baptista Research

  • Genpact Limited reported a strong performance in the fourth quarter of 2024, with revenue reaching $1.25 billion, reflecting a 9% year-over-year increase.
  • The company showcased a particularly impressive growth in their Data-Tech-AI segment, which rose by 12% year-over-year, showcasing the potential and growth of this sector within the organization.
  • Additionally, Digital Operations saw a 6% year-over-year increase, indicating strong demand across their business segments.

Tech Supply Chain Tracker (18-Feb-2025): Apple may assemble iPhones in Indonesia to comply with local rules.

By Tech Supply Chain Tracker

  • Apple may move iPhone assembly to Indonesia to comply with local content rules and sales ban, shifting focus from Vietnam to India
  • India’s AI ambitions hindered by GPU shortages and high costs, while 5G market projected to grow significantly by 2025
  • BYD reveals ‘God’s Eye’ smart driving system with budget-friendly aims, as Micron set to challenge Samsung in HBM3E market

Bank Rakyat Indonesia (BBRI IJ) – Visibility and Quality Improving

By Angus Mackintosh

  • Bank Rakyat Indonesia management painted a relatively positive picture of improvements across its microloan portfolio in 2H2024, with strong growth in recoveries during the year.  
  • Loan growth was driven by corporate and consumer loans, as the bank slowed micro and small-sized loan growth with ongoing restructuring, which will continue in 2025 and front-loaded in 1Q2025. 
  • Bank Rakyat Indonesia remains unique in its exposure to micro and ultra-micro lending in Indonesia, where growth should resume in 2025. Foreign ownership and valuations stand at 15-year lows. 

Kilburn Engineering Limited Q3 FY25 Update: Strategic Acquisitions and Strong Growth

By Sudarshan Bhandari

  • Kilburn Engineering’s Q3 FY25 revenue rose 25.1% YoY to ₹911 million with EBITDA up 30.1%, driven by strategic acquisitions and a robust order backlog exceeding ₹3,600 million.
  • Robust financials, an expanding order book, and targeted acquisitions enhance growth prospects and operational efficiency, solidifying Kilburn Engineering’s market position.
  • Investors gain confidence as Kilburn Engineering’s disciplined execution and diversified strategy signal sustainable long-term revenue and margin expansion.

Ralph Lauren: Key City Ecosystem & Global Reach As a Global Growth Strategy!

By Baptista Research

  • Ralph Lauren’s third-quarter fiscal year 2025 results reflect a blend of positive momentum and strategic growth, tempered by an acknowledgment of ongoing market challenges.
  • The company reported a double digit revenue increase, significantly surpassing its own expectations across all geographies, indicating robust brand momentum and effective strategic investments, particularly noticeable during the peak holiday season.
  • This was facilitated by an agile global supply chain that successfully met heightened consumer demand.

Haitian Flavouring: Looking for Soy Sauces on the Ground

By Ming Lu

  • We have visited three supermarkets in Shanghai, looking for Haitian Sauces.
  • We believe Haitian is obviously the top brand among soy sauces.
  • However, there are many competitors and Lee Kum Kee is the most important.

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Feb 18
0

Daily Brief Event-Driven: JIC Launches Shinko (6967) Deal At ¥5 and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • JIC Launches Shinko (6967) Deal At ¥5,920/Share
  • Hang Seng Index (HSI) Rebalance Preview: Inclusion Candidates for March
  • CVC Extends Macromill (3978) Bid and Invites Two Funds To Reinvest – More Interesting Than You Think
  • Base Food (2936 JP): Partial Tender Offer at JPY688
  • Soundwill Holdings (878 HK): Privatisation Expected From The Controlling Family
  • Tam Jai (2217 HK): Toridoll (3397 JP)’s Scheme Privatisation at HK$1.58
  • Tam Jai (2217 HK): Toridoll (3397 JP)’s Excellent Offer
  • Daemyung Sono Group: Close to Acquiring the Controlling Stake in T’Way Air
  • Soundwill Holdings (878 HK): Privatisation from the Controlling Shareholder?
  • A Real-World Take on the Market Worries Around the Samsung Life Act Proposal

JIC Launches Shinko (6967) Deal At ¥5,920/Share

By Travis Lundy

  • Today quite late, the JIC Consortium announced the launch of the Shinko Electric Industries (6967 JP) Tender Offer expected “mid-February”. Price is still ¥5,920/share. 
  • This is basically going to be all arbs and passive now. And arbs gonna arb.
  • Congrats if you bought the lows in late November early December. Great trade. Congrats if you bought the last delay dip. Now we can all go home.

Hang Seng Index (HSI) Rebalance Preview: Inclusion Candidates for March

By Brian Freitas

  • Post market close on Friday, Hang Seng Indexes will announce the changes for the Hang Seng Index (HSI INDEX) that will be implemented at the close on 7 March.
  • With no constituent changes, one-way turnover will be 2.75% with 3 stocks being capped downward. This gives the index committee the opportunity to add more stocks without significantly increasing turnover.
  • The return of the high and medium probability inclusions has matched the performance of the Hang Seng Index over the last few months, Shorts have climbed in some names.

CVC Extends Macromill (3978) Bid and Invites Two Funds To Reinvest – More Interesting Than You Think

By Travis Lundy

  • Today, the closing date of the Tender Offer for Macromill, Inc (3978 JP) by CVC saw the tender offer extended by an extra 10 days with new news.
  • Price had been declared final. One very large shareholder had said they would not tender. Two more were negotiating. Those two will now tender and reinvest in the back end.
  • This does not mean the tender offer is a done deal, but it is worth examining.

Base Food (2936 JP): Partial Tender Offer at JPY688

By Arun George

  • Base Food (2936 JP) announced a partial tender offer from MBF Acceleration, the largest shareholder.
  • The offer is for a maximum of 3.7 million shares (6.97% ownership ratio) at JPY688 per share, a 23.3% premium to the last close price.
  • The offer has no minimum acceptance condition, and the price is reasonable. The estimated minimum proration is 21.43%.

Soundwill Holdings (878 HK): Privatisation Expected From The Controlling Family

By David Blennerhassett

  • Small-Cap property developer Soundwill Holdings (878 HK) is currently suspended pursuant to the Takeovers Code
  • Soundwill is controlled as to 74.97% by Grace Foo (ED), and her descendants, Wai Ling Chan (deputy chairman), and Hing Tat Chan (chairman). 
  • Soundwill is trading at a staggering 0.08x P/B, with the majority of its book value tied up in investment properties.

Tam Jai (2217 HK): Toridoll (3397 JP)’s Scheme Privatisation at HK$1.58

By Arun George

  • Tam Jai International (2217 HK) announced a scheme privatisation offer from TORIDOLL Holdings Corporation (3397 JP) at HK$1.58 per share, a 75.6% premium to the last close price. 
  • The key condition is the scheme approved by at least 75% disinterested shareholders (<10% disinterested shareholders rejection). No disinterested shareholder holds a blocking stake. 
  • The offer price is final. While 53% below the IPO price, the offer is attractive compared to peer multiples and historical trading ranges. This is a done deal. 

Tam Jai (2217 HK): Toridoll (3397 JP)’s Excellent Offer

By David Blennerhassett

Daemyung Sono Group: Close to Acquiring the Controlling Stake in T’Way Air

By Douglas Kim

  • After the market close on 17 February, it was announced that the Daemyung Sono Group is  close to acquiring the controlling stake in T’Way Air (091810 KS) from Yelimdang.
  • As the negotiations between the two sides have come to a near agreement, Daemyung Sono is expected to be able to appoint nine directors at the next upcoming AGM.
  • Typically in cases like this in Korea, the near term impact would be decline in share prices of T’Way Air and T’Way Holdings due to lack of an M&A play.

Soundwill Holdings (878 HK): Privatisation from the Controlling Shareholder?

By Arun George

  • Soundwill Holdings (878 HK) has entered a trading halt “pending the release of an announcement relating to inside information and pursuant to the Codes on Takeovers and Mergers.” 
  • It is likely that the controlling shareholder (Foo Family Trust), representing 74.94% of outstanding shares, is seeking to launch a privatisation through a Bermuda scheme. 
  • While no disinterested shareholder holds a blocking stake, the headcount test necessitates an attractive offer. We estimate a potential offer price range of HK$7.53-19.44.

A Real-World Take on the Market Worries Around the Samsung Life Act Proposal

By Sanghyun Park

  • The Rebuilding Korea Party’s hints about this bill since Thursday are seen as a key reason Samsung Electronics’ stock has stalled, despite hype around affiliate shareholder returns.
  • With polls dipping, Lee is shifting right. Given the political shifts, pushing through the controversial Samsung Life Act seems unlikely for now.
  • Instead of focusing on legislative chances, we should see Samsung Electronics’ stock stall as a short-term entry opportunity ahead of the shareholder return announcement

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