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Smartkarma Daily Briefs

Mar 07
0

Daily Brief Industrials: BayCurrent Consulting , Makino Milling Machine Co, IGI (India) Limited, Korea Stock Exchange KOSPI 200, LS Corp, Cosco Shipping Ports, Sigenergy, Deutsche Post, Fluence Corp, Clean Harbors and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Nikkei 225 Sep25 Rebal: One ADD, One DELETE Probable – Less Interesting Than Before
  • Makino Milling Machine (6135 JP): State of Play
  • IGI Faces Headwinds: Growth Concerns, Market Risks & Uncertainties
  • DN Solutions IPO Might Skip OC—A Unique Trading Opportunity
  • LS Corp: Chairman’s Words Have Big Impact on Share Price
  • COSCO Shipping Ports (1199 HK): What’s Interesting After the CKH Port Sale?
  • Sigenergy Technology Pre-IPO Tearsheet
  • What’s News in Amsterdam – 6 March (Intl. Distribution Services / PostNL | Havas | DHL)
  • Fluence Corp Ltd – Smoother water ahead
  • Clean Harbors Inc.: Can Its Increase In Incineration Capacity Help Alter The Playing Field?

Nikkei 225 Sep25 Rebal: One ADD, One DELETE Probable – Less Interesting Than Before

By Travis Lundy

  • The March 2025 Nikkei 225 review came out with a sparse set of changes. That gives us hints for the September 2025 review.
  • I see one ADD and one DELETE. Fast Retailing capping is right on the border. BayCurrent will see an upweight.
  • The lack of effort to address sector imbalances within the rules suggests the rules are not as hard as people thought. Intra-review changes could be more interesting in years ahead.

Makino Milling Machine (6135 JP): State of Play

By Arun George

  • On 27 December, Nidec Corp (6594 JP) announced a hostile preconditional tender offer for Makino Milling Machine Co (6135 JP) at JPY11,000 per share.
  • The Board has raised several issues with the Nidec proposal through two questionnaires. Some assertions are valid, while others do not stand up to scrutiny.
  • The Board has launched an ambitious MTM plan to thwart the offer and hinted at potential competing offers. Nidec’s offer increasingly needs a bump. 

IGI Faces Headwinds: Growth Concerns, Market Risks & Uncertainties

By Nimish Maheshwari

  • Steep fall in diamond prices leading to slowdown in demand for certification services since its not viable as much for a consumer as it used to be.
  • A leading jeweller in India reiterated that certification demand for diamonds is slowing down due to changing consumer preferences.
  • The International Gemmological Institute, the leading certification agency, is now facing headwinds evident from earnings growth slowdown.

DN Solutions IPO Might Skip OC—A Unique Trading Opportunity

By Sanghyun Park

  • With cautious foreign interest, DN Solutions’ big IPO deal might skip the OC and go full local for bookbuilding, setting a new trend in Korean IPOs.
  • If foreign anchor orders drop, local players gain more negotiating power, leading to aggressive bidding and potentially a way more conservative IPO price.
  • Offshore funds passing investment review without an OC could grab more volume, benefiting from local-led down-pricing without lock-up restrictions.

LS Corp: Chairman’s Words Have Big Impact on Share Price

By Douglas Kim

  • On 6 March, LS Group Chairman Koo Ja-Eun publicly stated “If you think duplicate listings are a problem, then just don’t buy the stocks after the listing.”
  • Chairman Koo’s comment was not in the best interest of the major LS Group companies including LS Electric and LS Corp that are publicly traded.
  • LS Group is preparing to list at least five unlisted affiliates including LS E-Link, Essex Solutions, LS Cable, LS MnM, and KOC Electric  in the next 1-3 years. 

COSCO Shipping Ports (1199 HK): What’s Interesting After the CKH Port Sale?

By Osbert Tang, CFA

  • Following CK Hutchison Holdings (1 HK)‘s port disposal, Cosco Shipping Ports (1199 HK) looks interesting, given its portfolio of port projects, which spans globally.
  • Overseas ports accounted for 38.9% of its noncurrent assets. A disposal of half of such portfolio will generate HK$15.2bn of cash flow, equalling almost 89% of its market capitalisation. 
  • Even without corporate activities, its 6.4x PER, 6.7% dividend yield, and 11.8x EV/EBITDA are inexpensive. The 0.36x P/B for FY25 also deeply undervalued its assets.

Sigenergy Technology Pre-IPO Tearsheet

By Troy Wong

  • Sigenergy (SIG CH) is looking to raise at least US$100m in its upcoming Hong Kong IPO. The deal will be run by CITIC and BNP Paribas.
  • It provides renewable energy solutions, catering to 1) residential, 2) commercial, and 3) industrial applications.
  • The group markets and sells to distributors and primarily serves the European market.

What’s News in Amsterdam – 6 March (Intl. Distribution Services / PostNL | Havas | DHL)

By The IDEA!

  • In this edition: • IDS / PostNL | CAT greenlights GBP 878.5m class action case against Royal Mail • Havas | reiterates guidance; 1 for 10 reverse stock-split; ask for approval share buyback • DHL | better than expected fourth quarter thanks to focus on yield

Fluence Corp Ltd – Smoother water ahead

By Research as a Service (RaaS)

  • Fluence Corporation (ASX:FLC) specialises in the delivery of water and wastewater solutions in industrial, municipal and commercial industries across the globe.
  • The company has released its FY24 full year result which is in line with previously amended guidance.
  • The Q4 cashflow statement and a Q4 financial and operating update was released in January 2025 and included significant detail and guidance for FY25.

Clean Harbors Inc.: Can Its Increase In Incineration Capacity Help Alter The Playing Field?

By Baptista Research

  • Clean Harbors presented both positive and negative elements in its fourth-quarter and full-year 2024 financial results, demonstrating the company’s position in the environmental and industrial services sector.
  • The company achieved a strong year with consolidated EBITDA growth of 10%, buoyed by its Environmental Services (ES) segment’s solid performance.
  • This segment marked an increase in momentum, leading to a 9% revenue growth with improved adjusted EBITDA margins of over 25%.

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Mar 07
0

Daily Brief Consumer: Seven & I Holdings, Sun Art Retail, VGI PCL, Astra International, Nongshim Co Ltd, Trial Holdings, Booking Holdings, Kitex Garments and more

By | Consumer, Daily Briefs

In today’s briefing:

  • 7&I (3382) Possibility of YUUUUUGE Buyback?
  • 7&I (3382) – A Starting Point for the Standalone Plan – The Good, The Bad, The Ugly
  • Seven & I Holdings (3382 JP): Board’s Plan to Unlock Value Is a Stop-Gap Measure
  • Sun Art (6808 HK): IFA Says MGO Is Not Fair. Rightfully So
  • Quiddity Leaderboard SET50 Jun25: One Intra-Review Replacement Soon! Three Regular Changes Later
  • Astra International (ASII IJ) – Resilience in Motion
  • Nongshim Raises Instant Noodles Prices
  • Trial a Top 10 Retailer After Seiyu Purchase from KKR (With Big Synergies)
  • Booking Holdings: An Insight Into Its Merchant Model Expansion & Payment Innovations!
  • The Beat Ideas: Kitex Garments- A Global Inflant Wear Play

7&I (3382) Possibility of YUUUUUGE Buyback?

By Travis Lundy

  • Last Thurs the MBO died. Tuesday an article said the ACT deal had died. Then 7&i denied that. Yesterday an article said Bain’s York Holdings deal would be approved today.
  • That meant a Board meeting which would approve receipt of ~¥700bn of cash. What to do with it?
  • Just now, Bloomberg says Seven & I Holdings (3382 JP)‘s board will consider a massive buyback. THAT is the capital allocation news my last piece suggested necessary. It’s HUGE.

7&I (3382) – A Starting Point for the Standalone Plan – The Good, The Bad, The Ugly

By Travis Lundy

Seven & I Holdings (3382 JP): Board’s Plan to Unlock Value Is a Stop-Gap Measure

By Arun George

  • The Seven & I Holdings (3382 JP) Board announced a plan to unlock and distribute significant value to shareholders.
  • The initial excitement focused on the positives of leadership changes, US Assets IPO, a higher-than-expected valuation for the Superstore Business and a considerable buyback. 
  • The negatives of a long-dated buyback, inevitable rejection of the Couche-Tard offer, an uncertain US Assets IPO and ongoing HoldCo discount suggest the initial excitement will fizzle out. 

Sun Art (6808 HK): IFA Says MGO Is Not Fair. Rightfully So

By David Blennerhassett

  • Late December 2024, Alibaba (9988 HK) entered an SPA with DCP Capital to offload its 78.7% stake in Sun Art (6808 HK) at HK$1.38/share, a 44.4% discount to last close.
  • The SPA completed on the 27th Feb, triggering an unconditional MGO, also at HK$1.38. FWIW, a deferred payment option raises the Offer Price to a maximum of HK$1.58/share. 
  • The Composite Document is now out, with a Closing Date for tendering on the 27th March. This won’t be extended. The IFA (Somerley) says NOT fair & reasonable.

Quiddity Leaderboard SET50 Jun25: One Intra-Review Replacement Soon! Three Regular Changes Later

By Janaghan Jeyakumar, CFA

  • The SET50 index tracks the performance of the top 50 largest and most liquid names listed on the Stock Exchange of Thailand (SET).
  • In this insight, we take a look at the potential ADDs/DELs for SET 50 in the run up to the index rebal event in June 2025.
  • The GULF-INTUCH M&A event could trigger an intra-review change within the next few weeks. Then there could be more regular index changes in June 2025.

Astra International (ASII IJ) – Resilience in Motion

By Angus Mackintosh

  • Astra International recently released finely balanced set of FY2024 results, with weaker auto sales offset by stronger 2W and financial segment performance, with other segments also performing above expectations.
  • Financial services growth was driven by stronger multifinance growth, whilst the heavy equipment division saw stronger growth from mining contracting and gold offsetting slower growth from coal mining.
  • Astra continues investing in sustainable energy, nickel, and healthcare and looks for new opportunities. Valuations remain attractive on less than 6x forward PER and yield > 8%. 

Nongshim Raises Instant Noodles Prices

By Douglas Kim

  • Nongshim announced that it plans to increase the prices of its instant noodles and snack products starting next week. 
  • Nongshim plans to raise the retail prices of 14 instant noodle products by 7.2% on average and three snack products by 7.4% starting Monday (10 March).
  • We estimate the consensus to raise their earnings estimates by 5-10%+ in 2025 and 2026, driven by the higher product prices of major instant noodles and snacks. 

Trial a Top 10 Retailer After Seiyu Purchase from KKR (With Big Synergies)

By Michael Causton

  • Trial was already one of Japan’s leading discount retailers with a strong network of stores down south in Japan although rather low margins.
  • Buying Seiyu transforms this local retailer into a national champion and one of the top 10, with a highly complementary set of stores, product expertise, warehouses and tech.
  • Together, the two will now be able to take on Aeon, Seven & I, PPI and other major retailers in building the first true national grocery chains in Japan.

Booking Holdings: An Insight Into Its Merchant Model Expansion & Payment Innovations!

By Baptista Research

  • Booking Holdings, a major player in the global online travel industry, reported its fourth-quarter and full-year 2024 financial results, showcasing a strong performance across several key metrics.
  • The company achieved a 13% year-over-year growth in room nights during the fourth quarter, surpassing its expectations and reflecting robust demand across all major regions.
  • The growth in room nights contributed to a 17% increase in gross bookings and 14% revenue growth, both exceeding the company’s prior guidance.

The Beat Ideas: Kitex Garments- A Global Inflant Wear Play

By Sudarshan Bhandari

  • Kitex Garments (KTG IN) is the world’s second-largest manufacturer of ready-to-wear clothing for infants and children.
  • KGL is expanding its manufacturing capabilities by establishing two new integrated units in Warangal and Sitarampur, Telangana which will increase capacity to 10.68L pieces per day.
  • Kitex Garments is also planning to merge with Kitex Childrenswear Limited, which sell processed fabrics, rental agreements for factory premises, and special job work contracts for KGL.

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Mar 07
0

Daily Brief Health Care: Bumrungrad Hospital Pub Co, Exact Sciences, Biomarin Pharmaceutical, Ionis Pharmaceuticals, Kestra Medical Technologies, UMP Healthcare and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Bumrungrad Hospital (BH TB): Dwindling International Revenue on Competition; No Near-Term Respite
  • Exact Sciences Corporation: Is The Oncology Product Pipeline Development to Capture A Lion’s Share of the Market?
  • BioMarin Pharmaceutical: Expansion of VOXZOGO & Enzyme Replacement Therapy Growth Propelling Our ‘Buy’ Rating!
  • Ionis Pharmaceuticals: An Insight Into Commercial Expansion of Next-Generation ASO Therapies and Wainua’s Market Potential!
  • Kestra Medical Technologies (KMTS): IPO Pops 35% at Open, Holds Gains Amidst Volatile Backdrop
  • UMP Healthcare (722 HK): Solid H1 2025, Cost-Cutting Initiatives Bearing Fruit

Bumrungrad Hospital (BH TB): Dwindling International Revenue on Competition; No Near-Term Respite

By Tina Banerjee

  • Bumrungrad Hospital Pub Co (BH TB) reported marginal revenue growth in 2024, with margins expanding on lower expenses. Revenue from international patients witnesses contraction, while domestic patient volumes provide traction.
  • Competition from peers like BDMS remains a concern in near term. With the entire Ramadan period falling in 1Q25, Bumrungrad’s international patient revenue is expected to remain muted in 1Q25.
  • The share prices of Bumrungrad are expected to remain under pressure with the commencement of operation at BIH Phuket being the only near-term trigger for the company.

Exact Sciences Corporation: Is The Oncology Product Pipeline Development to Capture A Lion’s Share of the Market?

By Baptista Research

  • Exact Sciences recently reported its fourth-quarter 2024 financial results, showcasing a mix of both positive momentum and certain challenges.
  • For the full year, Exact Sciences achieved a core revenue growth of 11%, reaching $2.75 billion, and notably expanded its adjusted EBITDA by nearly 48%.
  • The company also doubled its free cash flow and ended the year with a robust $1.04 billion in cash and securities.

BioMarin Pharmaceutical: Expansion of VOXZOGO & Enzyme Replacement Therapy Growth Propelling Our ‘Buy’ Rating!

By Baptista Research

  • BioMarin Pharmaceutical reported strong financial results for the fourth quarter and the full year of 2024.
  • The company recorded an impressive 18% year-over-year revenue growth, reaching a total of $2.85 billion for the year.
  • This growth was primarily driven by the strong performance of its commercial portfolio, particularly VOXZOGO for achondroplasia, which saw a 56% increase in revenue year-over-year.

Ionis Pharmaceuticals: An Insight Into Commercial Expansion of Next-Generation ASO Therapies and Wainua’s Market Potential!

By Baptista Research

  • Ionis Pharmaceuticals, a biotech company with a focus on RNA-targeted drug discovery, has transitioned into a fully integrated commercial stage entity, marked by its first independent product launch of TRYNGOLZA.
  • This drug, approved by the FDA for familial chylomicronemia syndrome (FCS), aims to reduce triglyceride levels and the risk of acute pancreatitis.
  • The launch moved quickly, getting the medication to patients within weeks of approval.

Kestra Medical Technologies (KMTS): IPO Pops 35% at Open, Holds Gains Amidst Volatile Backdrop

By IPO Boutique

  • Kestra Medical Technologies priced 11.9mm shares (upsized from 10.0mm) at $17.00 ($1 Above the $14-$16 range) and opened at $22.95 for a gain of 35%.
  • Kestra Medical Technologies (KMTS US) is the second medical device company to go public with success in 2025.
  • The equity capital markets area is still under scrutiny as a whole following the lackluster debuts of the two large IPOs in 2025.

UMP Healthcare (722 HK): Solid H1 2025, Cost-Cutting Initiatives Bearing Fruit

By Sameer Taneja

  • UMP Healthcare (722 HK) reported a Revenue/PAT growth of -1.2%/45.7% YoY as cost-cutting initiatives bore fruit for the company in H1 FY25. 
  • Net cash and investments reached 294 mn HKD (representing 88% of the market capitalization) due to robust operating profits and excellent working capital control. 
  • Trading at 7.7x PE and 0.4x EV-EBITDA, with an 8% dividend yield, there is massive value in the name. The key lies in improving ROCE, which remains low- single digit. 

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Mar 07
0

Daily Brief Financials: Japan Post Bank, Hang Seng Index, Jardine Matheson Holdings, Insignia Financial, CapitaLand Ascendas REIT, China Vanke and more

By | Daily Briefs, Financials

In today’s briefing:

  • Japan Post Bank US$4bn Deal Updates – Needs to Correct More. Discount Vs Deal Performance Analysis
  • Hang Seng Index (HSI): Trends in PUT Strikes and Open Interest Visualized in Animation and Charts
  • Asia Real Estate Tracker (06-Mar-2025): 7/10 Senior Directors Confident in Data Centres, But Talent Shortage Will Widen
  • Hang Seng Index (HSI): Trends in CALL Strikes and Open Interest Visualized in Animation and Charts
  • Insignia Financial (IFL AU): The Field Narrows As Bain And CC Capital Bump Terms
  • CLAR SP: Bullish in Singapore Industrial and Strong Asset Portfolio to Drive Shareholders Returns
  • Lucror Analytics – Morning Views Asia

Japan Post Bank US$4bn Deal Updates – Needs to Correct More. Discount Vs Deal Performance Analysis

By Sumeet Singh

  • Japan Post Holdings (6178 JP) (JPH) aims to sell around US$4bn worth of Japan Post Bank (7182 JP) (JPB), trimming its stake to below 50%.
  • JPH had last sold around US$9bn worth of JPB shares in Mar 2023. That deal had a similar structure and it didn’t end up performing well.
  • We have looked at the deal dynamics in our previous notes. In this note, we talk about updates and look at discounts vs performance for past secondary deals.

Hang Seng Index (HSI): Trends in PUT Strikes and Open Interest Visualized in Animation and Charts

By Gaudenz Schneider

  • Hang Seng Index (HSI INDEX) put options show concentrated positioning at the 19,000 and 20,000 strike levels.
  • Traders continue to establish new positions approximately 15%-20% below current market levels, suggesting protection against major market corrections rather than minor pullbacks. The focus is on near-term risk.
  • Implied volatility has remained stable at 25-30% over the past two weeks, consistent with a broadly sideways movement in the index itself.

Asia Real Estate Tracker (06-Mar-2025): 7/10 Senior Directors Confident in Data Centres, But Talent Shortage Will Widen

By Asia Real Estate Tracker

  • 70% of Senior Directors are confident in data centres, showing faith in their reliability and efficiency despite challenges.
  • HPL’s acquisition of InterContinental Auckland for $102M marks its entry into the New Zealand market, expanding its portfolio.
  • Stuart Grant’s appointment as head of Hongkong Land’s $8B Shanghai project highlights the company’s commitment to growth and development in the region.

Hang Seng Index (HSI): Trends in CALL Strikes and Open Interest Visualized in Animation and Charts

By Gaudenz Schneider

  • Market traders of Hang Seng Index (HSI INDEX) call options maintain significant holdings in lower strikes, with notable concentration at the 20,000 strike level.
  • Open interest data reveals significant increase in open interest for 25,000 and 26,000 strike calls since late February, reflecting active trading as traders built new positions.
  • Despite increased trading activity and changes in market positioning, implied volatility has remained stable at 25-30% over the past two weeks, reflecting a consistent market sentiment.

Insignia Financial (IFL AU): The Field Narrows As Bain And CC Capital Bump Terms

By David Blennerhassett

  • Bain Capital and CC Capital have both bumped indicative terms to $5/share,  a 63% premium to Insignia Financial (IFL AU)’s undisturbed closing share price of $3.06 on December 11 2024.
  • Both suitors have been granted four weeks of exclusivity. Confirmatory due diligence is expected to be completed within six weeks. IFL’s board is supportive at A$5/share or more. 
  • Where’s Brookfield on all this? A local media source previously reported that at least one suitor was losing interest. 

CLAR SP: Bullish in Singapore Industrial and Strong Asset Portfolio to Drive Shareholders Returns

By Jacob Cheng

  • CLAR is Singapore’s largest industrial REIT with S$16bn of assets across key markets with exposure in business parks, logistics and data centers
  • We think CLAR has a well diversified and resilient asset portfolio which can withstand any external shocks and drive organic growth
  • We think there is some interest rate risk but in general the impact is limited.  S-REITs were over-corrected YTD and valuation is not demanding

Lucror Analytics – Morning Views Asia

By Leonard Law, CFA

  • In today’s Morning Views publication we comment on developments of the following high yield issuers: China Vanke, Longfor Group, Cikarang Listrindo
  • The Chinese government has announced a GDP growth target of “around 5%” for 2025 (matching the growth target and actual level achieved in 2024), according to Premier Li Qiang’s annual government work report unveiled during the Two Sessions meeting.
  • Meanwhile, the government has raised the fiscal budget deficit target to 4% of GDP (vs. 3% previously), and lowered its annual CPI inflation target to “around 2%” (reflecting downward pressure on prices).

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Mar 06
0

Daily Brief ESG: Big Gap Between Companies that “don’t Have a Gap in Investors’ Viewpoints” and Those that Don’t and more

By | Daily Briefs, ESG

In today’s briefing:

  • Big Gap Between Companies that “don’t Have a Gap in Investors’ Viewpoints” and Those that Don’t

Big Gap Between Companies that “don’t Have a Gap in Investors’ Viewpoints” and Those that Don’t

By Aki Matsumoto

  • A common feature of the three companies that clearly indicated the conditions for implementing share repurchases and their position in the cash allocations is high foreign ownership.
  • Japanese companies’ share buybacks are less than 10% of net income, but on a cash flow basis, taking depreciation into account, share buybacks would be much less.
  • If the cost of capital was calculated, it shouldn’t be tremendous requirement to indicate cash allocation and share repurchase terms necessary for targeted return on capital and corporate value.

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Mar 06
0

Daily Brief Quantitative Analysis: KRX Short Interest Weekly (Feb 28th): SK Hynix and more

By | Daily Briefs, Quantitative Analysis

In today’s briefing:

  • KRX Short Interest Weekly (Feb 28th): SK Hynix, L&F, Skbs, Posco Dx

KRX Short Interest Weekly (Feb 28th): SK Hynix, L&F, Skbs, Posco Dx

By Ke Yan, CFA, FRM

  • We analyzed the changes in short interest of KRX stocks as of Feb 28th which has an aggregated short interest worth USD3.6bn.
  • We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases & decreases in short value, short as multiple of ADT.
  • We highlight short interest changes in SK Hynix, L&F, Skbs, Posco Dx.

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Mar 06
0

Daily Brief Thematic (Sector/Industry): Ohayo Japan | Tariffs Dodged…for Now and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • Ohayo Japan | Tariffs Dodged…for Now
  • Japan Morning Connection: Names with EU Exposure in Focus After Germany Pulls the Stops on Spending
  • IT Companies Q3 Update: Deal Flow, AI, Guidance Etc.
  • Has the market gone cold on miners?
  • Monday Delight: 03/03/25
  • Takeaway from Two Sessions and Latest Update Re China Property – Monitor Leading Indicators
  • US EV Charging Infrastructure Tracker – February 2025
  • Hardman & Co Insight: UK energy policy – up for grabs?

Ohayo Japan | Tariffs Dodged…for Now

By Mark Chadwick

  • US stocks surged after President Trump granted a one-month auto tariff exemption for Mexico and Canada
  • Automakers Ford, GM, and Stellantis soared at least 5% on the news.
  • Trial Holdings will acquire Seiyu, a general supermarket, from KKR and Walmart for ¥383 billion

Japan Morning Connection: Names with EU Exposure in Focus After Germany Pulls the Stops on Spending

By Andrew Jackson

  • Semi cap names higher with Trump not mentioning export restrictions on his speech to Congress.
  • Disco -7% yesterday despite no news could see dip buying as oversold SPE gets bought.
  • Names such as Daikin and Shimano may also catch a bid on the German spending news.

IT Companies Q3 Update: Deal Flow, AI, Guidance Etc.

By Nimish Maheshwari

  • Tata Consultancy Svcs (TCS IN) achieved a strong TCV of $10.2 billion, driven by significant large deal wins across diverse markets and industries, instills confidence for future financial years.
  • HCL Technologies (HCLT IN) is Witnessing strong growth in Technology and Financial Services due to increased spending patterns, along with a sizable number of deals influenced by AI and GenAI.
  • Wipro Ltd (WPRO IN) expects significant growth in AI spending and is committed to driving innovation for clients by leveraging the transformative power of AI, with discretionary spending slowly returning.

Has the market gone cold on miners?

By Money of Mine

  • Encore Energy experienced a significant drop in share price, down 46%, following a production miss and management change
  • The company had to use purchased uranium to fulfill contract obligations, leading to inventory challenges and production struggles
  • The appointment of a lawyer as acting CEO raised concerns among investors and highlighted the importance of strong leadership in the uranium industry.

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

Monday Delight: 03/03/25

By Contrarian Cashflows

  • Each week, I’ll share five intriguing investment ideas that recently caught my attention. These ideas are meant to spark your research and help you kickstart the week ahead with fresh insights.
  • Because these ideas are the result of my first-level idea generation process, they require more in depth research. Therefore, the ideas will often be concise, with occasional references to valuable work from other practitioners that I encourage you to explore.
  • If you have something fascinating to share that could benefit me and the wider community, don’t hesitate to send it my way—I’d love to hear from you!

Takeaway from Two Sessions and Latest Update Re China Property – Monitor Leading Indicators

By Jacob Cheng

  • Premier Li delivered the Government Work Report and announced key economic targets. We think there is no surprise to the market
  • Regarding property front, government re-iterated its intention and willingness to contain property developer debt default risks, as seen by China Vanke case
  • Valuation is undemanding.  But we continue to be bearish, and we monitor the leading indicators such as land sales and new starts

US EV Charging Infrastructure Tracker – February 2025

By Garvit Bhandari

  • Total public EV charging stations (incl. temporary unavailable locations) were 77,142 as of February 28, 2025. Compared to the end of FY24, it is an increase of 2.9%.
  • Total EV charging ports (including the temporary unavailable ports) were 213,068, up nearly 3.1% compared to the end of 2024 and up 1.0% over January 2025.
  • US considerably lags behind China which had 3.76 million public charging stations at the end of January 2025.

Hardman & Co Insight: UK energy policy – up for grabs?

By Hardman & Co

  • UK energy policy has changed of late, following the election of a Labour government last summer.
  • The quest for Net Zero by 2030 – a hardly realistic target – is now a priority.
  • Rightly or wrongly, the issues of security of supply, electricity prices and generation investment have all been superseded by this overarching aim.

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Mar 06
0

Daily Brief Event-Driven: Li Ka-Ching! Cheung Kong (1 HK) Offloads Panama Ports To Blackrock and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • Li Ka-Ching! Cheung Kong (1 HK) Offloads Panama Ports To Blackrock
  • Event Driven: India Glycol, A Demerger Catalyst, Capacity Expansion

Li Ka-Ching! Cheung Kong (1 HK) Offloads Panama Ports To Blackrock

By David Blennerhassett

  • As part of a US$22.8bn transaction, BlackRock, Global Infrastructure Partners and Terminal Investment, have agreed to buy two contentious Panama ports from Li Ka-shing’s CK Hutchison (1 HK) (CKH).
  • The transaction also includes an 80% stake in CKH’s ports subsidiaries, which operate 43 ports comprising 199 berths in 23 countries.
  • CKH expects cash proceeds in excess of US$19bn. CKH’s current market cap was – at the time of deal – also  ~US$19bn. 

Event Driven: India Glycol, A Demerger Catalyst, Capacity Expansion

By Nimish Maheshwari

  • The demerger of three verticals will separate biopharma and profitable spirits from bio-based specialties and performance chemicals will be the catalyst for the company.
  • The expansion in potable spirits, set for completion by March 2025, is expected to drive growth in this segment, alongside anticipated recovery in the core chemical business.
  • The Potable spirits segment accounted for 45% of revenue but contributed 58% of EBITDA margins, benefiting from backward integration that drives higher margins.

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Mar 06
0

Daily Brief ECM: Dozn IPO Valuation Analysis and more

By | Daily Briefs, ECM

In today’s briefing:

  • Dozn IPO Valuation Analysis
  • Pre-IPO Foshan Haitian Flavouring & Food Company – The Challenges Ahead and the Outlook

Dozn IPO Valuation Analysis

By Douglas Kim

  • Our base case valuation of Dozn is implied market cap of 429 billion won or target price of 17,910 won per share (43% higher than high-end of IPO price range). 
  • Our base case target price is based on P/E of 25.3x (20% premium to comps’ average valuation multiple) using our estimated net profit of 17 billion won in 2025. 
  • This valuation premium is appropriate due to Dozn’s higher sales growth rate, higher net margins, and higher ROE versus the comps. 

Pre-IPO Foshan Haitian Flavouring & Food Company – The Challenges Ahead and the Outlook

By Xinyao (Criss) Wang

  • The entire condiments market in China is deeply mired in fierce competition with limited market increment space. The future performance growth of companies in the industry will further slow down.
  • Haitian tries to find new growth points through diversification/internationalization. A big concern is whether China’s local brand will face “adaptation issue” overseas. The supply chain system is not yet perfect
  • Due to the concerns on slowing performance growth in the future as well as the uncertainties on internationalization, we think reasonable valuation for Haitian is about 20-30x P/E.

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Mar 06
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Daily Brief Credit: SJM Holdings – Earnings Flash – FY 2024 Results – Lucror Analytics and more

By | Credit, Daily Briefs

In today’s briefing:

  • SJM Holdings – Earnings Flash – FY 2024 Results – Lucror Analytics
  • Cikarang Listrindo – ESG Report – Lucror Analytics
  • Lucror Analytics – Morning Views Asia
  • PEMEX 4Q24: High Carry, But Risks Outweigh Rewards

SJM Holdings – Earnings Flash – FY 2024 Results – Lucror Analytics

By Leonard Law, CFA

  • SJM Holdings’ FY 2024 results were acceptable in our view, as its earnings and market share improved y-o-y.
  • In particular, GLP has managed to improve market share gradually over the course of the year.
  • Still, SJM’s overall market share remained below the pre-pandemic FY 2019 level.

Cikarang Listrindo – ESG Report – Lucror Analytics

By Trung Nguyen

Cikarang Listrindo (CL) is Indonesia’s oldest independent power producer, with 1,144 MW of capacity. The company has two natural gas-fired plants with a combined installed capacity of 864 MW, and a 280 MW coal-fired plant. It is the sole electricity provider to c. 2,700 tenants across five industrial estates in Cikarang. It was listed on the Indonesia Stock Exchange in June 2016. The Joso, Brasali and Sofyan families own over 80% of the company.

Lucror Analytics – Morning Views Asia

By Trung Nguyen

  • In today’s Morning Views publication we comment on developments of the following high yield issuers: Cikarang Listrindo
  • Commerce Secretary Howard Lutnick said the Trump administration could announce some tariff relief for Mexican and Canadian goods as soon as today, after US President Donald Trump’s sweeping tariffs on Mexican and Canadian imports took effect yesterday.
  • “Both the Mexicans and the Canadians were on the phone with me all day today trying to show that they’ll do better, and the president’s listening, because you know he’s very, very fair and very reasonable”, Mr Lutnicksaid in an interview with Fox Business yesterday.

PEMEX 4Q24: High Carry, But Risks Outweigh Rewards

By Leandro Gubler

  • Weak 4Q24 results, rising leverage, and lack of a clear plan heighten credit concerns.
  • We downgrade Pemex to Underperform. In our view, the absence of a clear financial plan under the current circumstances significantly undermines Pemex’s management credibility in addressing its serious debt challenges.
  • From a credit perspective, results were marked by a 27.1% sequential decline in LTM adjusted EBITDA, while total debt decreased by $2.1 billion.

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