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Smartkarma Daily Briefs

Feb 10
0

Daily Brief Financials: SBI Sumishin Net Bank , Nikkei 225, Anicom Holdings, NIFTY Index and more

By | Daily Briefs, Financials

In today’s briefing:

  • SBI Sumishin NetBank (7163) – Oops! NTT Docomo May Not Be There As a Buyer
  • EQD | Nikkei Index Options Weekly (January 27 – 31): Implied Vol Very Reactive to Spot
  • Anicom Holdings (8715 JP): Q3 FY03/25 flash update
  • EQD | Nifty Index Options Weekly (January 20 – 24): Implied Vol Normalizes

SBI Sumishin NetBank (7163) – Oops! NTT Docomo May Not Be There As a Buyer

By Travis Lundy

  • On Friday, SBI Sumishin Net Bank (7163 JP) fell 12.5% in the last 90 minutes of trading. This was not due to their Q3 earnings release (out 30 January).
  • It seemed due to investor disappointment in the content of the NTT earnings call. As discussed in the forked insight, there had been speculation NTT would buy SBI Sumishin.
  • Investors had thought NTT would pay more than 28x earnings and a ¥600bn premium to book to buy the business. At 23.7x Mar25e EPS and 4.1x book, it’s still expensive.

EQD | Nikkei Index Options Weekly (January 27 – 31): Implied Vol Very Reactive to Spot

By John Ley

  • Nikkei down 2.66% on Monday with Implied vol very reactive to the move jumping almost 3 points.
  • USD/JPY dropped 2.35% for the week, Nikkei fared better only losing 1.96%.
  • Open interest in the Nikkei dominated by Puts with 2 outstanding for every 1 Call.

Anicom Holdings (8715 JP): Q3 FY03/25 flash update

By Shared Research

  • Recurring revenue increased by JPY4.8bn YoY to JPY49.7bn, driven by underwriting, investment, and other revenue growth.
  • Recurring profit rose JPY517mn YoY to JPY3.8bn, aided by decreased claims, agency fees, and SG&A expenses.
  • Combined ratio improved by 0.6pp YoY to 93.5% due to better operating expense and E/I loss ratios.

EQD | Nifty Index Options Weekly (January 20 – 24): Implied Vol Normalizes

By John Ley

  • Implied vols adjusted downward by 3 points and now at 33rd percentile over the past year as Nifty ekes out a 40 bp gain.
  • Seasonal trends not favorable for Nifty in the 2nd half of the month.
  • Expect that vol down / spot up will re-assert itself with implied vols having normalized.

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Feb 10
0

Daily Brief Consumer: Seven & I Holdings, Toyota Motor, Fosun Tourism, Guming Holdings, Tam Jai International, Yum China Holdings , JB Hi-Fi Ltd, Softcare, Geo Holdings and more

By | Consumer, Daily Briefs

In today’s briefing:

  • 7&I (3382) – In Limbo, Dipping, But Stories Coming Together
  • EQD | Toyota (7203 JP // TM US) – Option Opportunities Amid Tariff Tension
  • Fosun Tourism (1992 HK)’s Scheme Buyback Vote On The 4th March
  • Pre-IPO Guming Holdings – Thoughts on Valuation
  • ECM Weekly (10th Feb 2025) – Haitian, Guming, LG CNS, Dr Agarwal, Ola, Brainbees, Kaynes, Whirlpool
  • Tam Jai Intl (2217 HK): Is It Privatisation or Takeover?
  • Yum China (9987 HK): 2025 Outlook. Modest Growth and Margin Upside Amid Sector Headwinds
  • EQD | JB Hi-Fi (JBH AU) Faces Volatile Trading After Earnings Announcement
  • Softcare Pre-IPO Tearsheet
  • Geo Holdings (2681 JP): Q3 FY03/25 flash update

7&I (3382) – In Limbo, Dipping, But Stories Coming Together

By Travis Lundy

  • In the past month we have seen Seven & I Holdings (3382 JP) earnings, confirmation of the York Holdings timeline, stories about Apollo, KKR, and CP Group providing MBO financing.
  • We’ve also seen Itochu confirm the financing request from the Ito family, and two American banks tapped to provide LBO financing.
  • York Holdings itself gets created this month, and a buyer decided “in spring” with a Group Buyer/Outcome possibly decided by the May AGM. Looks skewed to me.

EQD | Toyota (7203 JP // TM US) – Option Opportunities Amid Tariff Tension

By Gaudenz Schneider

  • Japanese Prime Minister Shigeru Ishiba’s meeting with US President Trump shines the spotlight on potential US tariffs on Japanese cars. Toyota Motor’s (7203 JP) high implied volatility expresses elevated risk.
  • Risk analysis suggests a range of option strategies. Implementation is challenging due to low liquidity in the Japanese market.
  • Option liquidity is higher in the US traded Toyota Motor Corp Spon ADR (TM US) which is the preferred route of implementation.

Fosun Tourism (1992 HK)’s Scheme Buyback Vote On The 4th March

By David Blennerhassett

  • On the 10th December 2024, Fosun Tourism (1992 HK) announced a Scheme buyback, with a Cancellation Price of $7.80/share (not declared final), a chunky 95% premium to undisturbed.
  • Assuming the Scheme gets up, Fosun International (656 HK) and concert parties would hold 100% in Fosun Tourism.
  • The Scheme Doc is now out, with a Court Meeting on the 4th March, and expected settlement on the 26th March. The IFA (Altus Capital) says “fair and reasonable”.

Pre-IPO Guming Holdings – Thoughts on Valuation

By Xinyao (Criss) Wang

  • If based on the market value of HK$20.246 billion to HK$23.185 billion in this IPO, a single store market value is about HK$2-2.4 million, higher than that of Baicha Baidao.
  • Our forecast of 2024 net profit is RMB1.4 billion. Based on IPO price range of HK$8.68-9.94 per share, P/E is about 13.5-15.5x. There is still some upside room for valuation.
  • Investors may need more “safety margins” on valuation due to the pressure of performance growth after IPO.The higher the IPO price, the greater the risk of future valuation downward revisions.

ECM Weekly (10th Feb 2025) – Haitian, Guming, LG CNS, Dr Agarwal, Ola, Brainbees, Kaynes, Whirlpool

By Sumeet Singh

  • Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
  • On the IPO front, neither of the two listings performed last week, while more are lining up to list across the region.
  • On the placements front, given the ongoing earnings season there weren’t any deals. We did look at lockups and other possible upcoming deals.

Tam Jai Intl (2217 HK): Is It Privatisation or Takeover?

By Osbert Tang, CFA

  • Tam Jai Intl (2217 HK)‘s suspension has led to speculation about a privatisation or takeover. Its huge net cash, equal to 115% of market capitalisation, makes it appealing. 
  • Its controlling shareholder Toridoll Holding Limited owns a 74.61% stake and there is no shareholder with more than a 5% interest. This makes a deal seemingly simple.
  • Assuming priced at the average P/B of 1.63x, this means HK$1.90, or 110% premium to the latest close, which is costly to the major shareholder.

Yum China (9987 HK): 2025 Outlook. Modest Growth and Margin Upside Amid Sector Headwinds

By Devi Subhakesan

  • Yum China Holdings (9987 HK) posted robust year-over-year operating profit growth in 4Q2024 on the back of low single digit sales increase and operating efficiencies.
  • Despite significant sector headwinds, Yum China has managed to outperform peers and grow ahead of sector in 2024 by swiftly adapting  to shifting consumer preferences.
  • Yum China’s value-for-money QSR model with mid-tier pricing amidst tough sector outlook implies limited margin upside, a likely single-digit sales growth outlook, and a modest dividend yield for 2025.

EQD | JB Hi-Fi (JBH AU) Faces Volatile Trading After Earnings Announcement

By Gaudenz Schneider

  • JB Hi-Fi Ltd (JBH AU) announced HY 2025 results this morning. Price increases 5.5% in early trading but gains were lost by noon.
  • Sales Up 9.8% to A$ 5.67m; EPS up 8.0% to A$ 2.611; interim dividend up A$ 0.12 to A$ 1.70. Results are in-line/slight beat.
  • Volatile trading can make for opportunities. Investors can speculate on a positive Post Announcement Earnings Drift (PEAD) or consider option strategies, as implied volatility remains elevated.

Softcare Pre-IPO Tearsheet

By Nicholas Tan

  • Softcare (SOFT HK) is looking to raise at least US$300m in its upcoming Hong Kong IPO. The deal will be run by CICC, CITIC and GF Securities.
  • SC is principally engaged in the development, manufacturing and sales of baby and feminine hygiene products, focusing on the fast-growing emerging markets, including Africa, Latin America and Central Asia.
  • As of September 30, 2024, SC had 18 sales branches in 12 countries, and an extensive sales network across over 2,500 wholesalers, distributors, supermarkets, and other retailers in total.

Geo Holdings (2681 JP): Q3 FY03/25 flash update

By Shared Research

  • Revenue decreased by 3.4% YoY to JPY316.2bn, with a decline in new game console demand impacting sales.
  • Gross profit increased by 7.0% YoY to JPY127.3bn, while operating profit margin fell to 3.1% due to higher SG&A expenses.
  • Sales of secondhand goods rose 12.5% YoY to JPY140.4bn, driven by increased secondhand market demand and store expansions.

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Feb 10
0

Most Read: Seven & I Holdings, Shin Kong Financial Holding, Britannia Industries, Brother Industries, Englewood Lab, SBI Sumishin Net Bank , Orica Ltd, Bestechnic Shanghai , Hexaware Technologies, Toyota Motor and more

By | Daily Briefs, Most Read

In today’s briefing:

  • 7&I (3382) – In Limbo, Dipping, But Stories Coming Together
  • Shin Kong (2888 TT) / Taishin (2887 TT) – Waiting on the FSC
  • NIFTY50 Index Rebalance Preview: Adds Secure; Tight Among the Deletes
  • Japan: Last Look at Potential Passive Selling in February
  • A Partial Tender Offer of Englewood Lab by Cosmecca Korea
  • SBI Sumishin NetBank (7163) – Oops! NTT Docomo May Not Be There As a Buyer
  • Australia: Last Look at Potential Passive Selling in February
  • China/HK: Passive Activity Expected Later This Month
  • Hexaware Technologies IPO: The Bear Case
  • EQD | Toyota (7203 JP // TM US) – Option Opportunities Amid Tariff Tension

7&I (3382) – In Limbo, Dipping, But Stories Coming Together

By Travis Lundy

  • In the past month we have seen Seven & I Holdings (3382 JP) earnings, confirmation of the York Holdings timeline, stories about Apollo, KKR, and CP Group providing MBO financing.
  • We’ve also seen Itochu confirm the financing request from the Ito family, and two American banks tapped to provide LBO financing.
  • York Holdings itself gets created this month, and a buyer decided “in spring” with a Group Buyer/Outcome possibly decided by the May AGM. Looks skewed to me.

Shin Kong (2888 TT) / Taishin (2887 TT) – Waiting on the FSC

By Travis Lundy

  • The TFTC approved in early January, The TFTC said market power would be limited and competition unrestricted. Another CNA article suggested the two FHCs were completing employee placement plans.
  • Apparently, as of a month ago, only the Shin Kong Bank employee settlement plan had not been completed but the FSC has rules about that. Consideration likely proceeds.
  • There are specific rules about how these things are dealt with. In the meantime, the spread – still wide – is narrowing.

NIFTY50 Index Rebalance Preview: Adds Secure; Tight Among the Deletes

By Brian Freitas

Japan: Last Look at Potential Passive Selling in February

By Brian Freitas

  • There are 14 Japanese stocks at risk of being deleted from global passive portfolios in February. The number will be smaller depending on the day of the review period chosen.
  • Selling from passive trackers will range from US$176m-354m and the impact ranges from 3.1-18.4 days of ADV. Short interest has increased in nearly all stocks over the last 4 weeks.
  • The forecast deletes have underperformed the TSE Tokyo Price Index TOPIX on average over the last 1-3 months, while there has been marginal outperformance over the last week or two.

A Partial Tender Offer of Englewood Lab by Cosmecca Korea

By Douglas Kim

  • On 6 February, Cosmecca Korea (241710 KS) launched a partial tender offer on Englewood Lab (950140 KS).
  • Cosmecca Korea announced that it plans to purchase 11% (2.185 million) of Englewood Lab’s outstanding shares at the tender offer price of 10,000 won. 
  • It appears that this partial tender offer is an attempt by Cosmecca Korea to increase its stake in Englewood Lab even further, capitalizing on the lower share price.

SBI Sumishin NetBank (7163) – Oops! NTT Docomo May Not Be There As a Buyer

By Travis Lundy

  • On Friday, SBI Sumishin Net Bank (7163 JP) fell 12.5% in the last 90 minutes of trading. This was not due to their Q3 earnings release (out 30 January).
  • It seemed due to investor disappointment in the content of the NTT earnings call. As discussed in the forked insight, there had been speculation NTT would buy SBI Sumishin.
  • Investors had thought NTT would pay more than 28x earnings and a ¥600bn premium to book to buy the business. At 23.7x Mar25e EPS and 4.1x book, it’s still expensive.

Australia: Last Look at Potential Passive Selling in February

By Brian Freitas

  • There are 6 stocks in Australia that could be deleted from global passive portfolios later this month, though the probability of deletion varies across the stocks. 
  • If deleted, passive trackers will need to sell between US$234m-330m in the stocks. Impact is high at between 7-23 days of ADV.
  • The potential deletions have underperformed the S&P/ASX 200 (AS51 INDEX) over nearly every time period from 1 week to 3 months. Shorts have increased on all stocks recently.

China/HK: Passive Activity Expected Later This Month

By Brian Freitas

  • There could be up to 10 adds/ 29 deletes for the China global index in February. The actual number of changes will be smaller depending on the review date chosen.
  • The flow on the forecast adds varies from US$17.5m-US$175m (0.05x-15x ADV) while the flow on the forecast deletes varies from US$14.4m-US$100.4m (0.25x-22.75x ADV).
  • Bestechnic Shanghai (688608 CH) is a potential inclusion to multiple indices in June and there will be much larger passive flows to the stock then.

Hexaware Technologies IPO: The Bear Case

By Arun George

  • Hexaware Technologies (HEXW IN), an Indian mid-sized global IT services company, aims to raise up to US$1.0 billion.
  • In Hexaware Technologies IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
  • The bear case rests on mid-tier revenue growth, bottom-tier margins, low offshore mix, rising unbilled receivables/contract assets and a large post-IPO share overhang.

EQD | Toyota (7203 JP // TM US) – Option Opportunities Amid Tariff Tension

By Gaudenz Schneider

  • Japanese Prime Minister Shigeru Ishiba’s meeting with US President Trump shines the spotlight on potential US tariffs on Japanese cars. Toyota Motor’s (7203 JP) high implied volatility expresses elevated risk.
  • Risk analysis suggests a range of option strategies. Implementation is challenging due to low liquidity in the Japanese market.
  • Option liquidity is higher in the US traded Toyota Motor Corp Spon ADR (TM US) which is the preferred route of implementation.

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Feb 09
0

Daily Brief Quantitative Analysis: A-H Premium Weekly (Feb 7th): ZTE and more

By | Daily Briefs, Quantitative Analysis

In today’s briefing:

  • A-H Premium Weekly (Feb 7th): ZTE, Pharmaron Beijing, SMIC, Hua Hong Semiconductor
  • HK Short Interest Weekly: Kingsoft, Fe Horizon, Smic
  • Hong Kong Connect Flows (Feb 7th): ICBC, Tencent, Xiaomi

A-H Premium Weekly (Feb 7th): ZTE, Pharmaron Beijing, SMIC, Hua Hong Semiconductor

By Ke Yan, CFA, FRM

  • We analyse the changes of A-H premium on 150 stocks over the last week. The average A-H premium was 91.6% as of Feb 7th.
  • The average A-H premium changed by -0.5ppt week-on-week, led by information technology, consumer staples, communication services and offset by real estate, utilities, health care.
  • We highlight weekly changes in A-H premium for ZTE, Pharmaron Beijing, SMIC, Hua Hong Semiconductor, Shandong Gold Mining.

HK Short Interest Weekly: Kingsoft, Fe Horizon, Smic

By Ke Yan, CFA, FRM

  • We analyzed the latest HK SFC report for aggregate short position as of Jan 28th.
  • Top short increases and decreases were tabulated for one week and four week period.
  • We highlight short changes in Kingsoft/3888 HK, Fe Horizon/3360 HK, Smic/981 HK.

Hong Kong Connect Flows (Feb 7th): ICBC, Tencent, Xiaomi

By Ke Yan, CFA, FRM

  • We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of February 7th.
  • The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
  • We highlight flows for ICBC/1398 HK, Tencent/700 HK, Xiaomi/1810 HK.

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Feb 09
0

Daily Brief Thematic (Sector/Industry): APAC Healthcare Weekly (Feb 9)- Daiichi Sankyo and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • APAC Healthcare Weekly (Feb 9)- Daiichi Sankyo, Astellas, SanBio, IHH, Henlius Biotech, Dr. Reddy’s

APAC Healthcare Weekly (Feb 9)- Daiichi Sankyo, Astellas, SanBio, IHH, Henlius Biotech, Dr. Reddy’s

By Tina Banerjee

  • Daiichi Sankyo has announced that Dato-DXd has been recommended for approval in EU. Astellas Pharma has submitted new drug application for conditional approval of Izervay for Geographic Atrophy in Japan.
  • SanBio has successfully secured the planned production yield for the second commercial production run to meet the approval conditions for the shipment of Akuugo suspension for intracranial implantation.
  • IHH Healthcare is seeking compensation of INR109.3B from Daiichi Sankyo for its stake buy in Fortis Healthcare. Dr. Reddy’s Laboratories entered licensing agreement with Shanghai Henlius Biotech for Darzalex biosimilar.

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Feb 09
0

Daily Brief ESG: Investors Are Disappointed that ROE Is Not Improving and more

By | Daily Briefs, ESG

In today’s briefing:

  • Investors Are Disappointed that ROE Is Not Improving, yet Companies Can’t Disclose to Improve It

Investors Are Disappointed that ROE Is Not Improving, yet Companies Can’t Disclose to Improve It

By Aki Matsumoto

  • Companies with high stock price valuations are often characterized by high foreign shareholdings and high return on capital, and valuations cannot be raised simply by disclosure without improving profitability.
  • Companies that proactively disclosed to TSE requests were those with large market capitalization and high foreign ownership. They usually try to use their cash effectively for investment and shareholder returns.
  • Raising profit margin is the best way to improve capital profitability. It’s clear that challenge lies in restructuring the business portfolio and reorganizing the industry, which few companies could do.

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Feb 09
0

Daily Brief ECM: Guming Holding IPO Valuation Analysis and more

By | Daily Briefs, ECM

In today’s briefing:

  • Guming Holding IPO Valuation Analysis
  • Sionna Therapeutics Inc. (SION): RA Capital Backed Biotech IPO Booms in Debut
  • Titan America (TTAM): Spin-Off Successful as US Infrastructure Play Finds a Bid in IPO Aftermarket
  • Weekly Deals Digest (09 Feb) – Guming, Hexaware, Shibaura, Fuji Soft, Proto, Tohto, Pentamaster

Guming Holding IPO Valuation Analysis

By Douglas Kim

  • Our base case valuation of Guming Holding is implied target price of HKD 13.70, which is 38%  higher than the high end of the IPO valuation range. 
  • Given the solid upside, we have a Positive view of this IPO. Our valuation sensitivity analysis suggests a range of HKD 11.09 to HKD 16.57 per share.  
  • Our base case valuation is based on 2025E P/S multiple of 3x, which is a 30% premium to the two closest comps (Sichuan Baicha Baidao Industrial and Helens International Holdings). 

Sionna Therapeutics Inc. (SION): RA Capital Backed Biotech IPO Booms in Debut

By IPO Boutique

  • Biopharmaceutical company on a mission to revolutionize the current treatment paradigm for cystic fibrosis opened its IPO 39% above issue.
  • The transaction was upsized from 8.8mm shares to 10.6mm shares and priced at the high-end of the range.
  • The IPOs that are more apt to see “follow-through” in the aftermarket are those with product candidates in later stage. This IPO does not meet that criteria. 

Titan America (TTAM): Spin-Off Successful as US Infrastructure Play Finds a Bid in IPO Aftermarket

By IPO Boutique

  • After the deal’s order book finished multiple-times oversubscribed, the company priced at the lower-half of the range and opened for a minimal gain. 
  • Buyers stepped in and rebounded the stock past its opening price and as high as $17.27 for a gain of 8% at its top-tick. 
  • Value investors found favor in the secular tailwinds of US infrastructure and the positives this company will be able to extract as a newly-formed company. 

Weekly Deals Digest (09 Feb) – Guming, Hexaware, Shibaura, Fuji Soft, Proto, Tohto, Pentamaster

By Arun George

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Feb 09
0

Daily Brief Event-Driven: (Mostly) Asia-Pac M&A: Shibaura and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • (Mostly) Asia-Pac M&A: Shibaura, Tecnos, Insignia Fin., Fosun Tourism, Fuji Soft, Shin Kong/Taishin
  • Last Week in Event SPACE: Kyocera, WH Group/Smithfield, CNBM, Japan Eyewear, Core Concept Tech
  • EQD | Kospi Index Options Weekly (February 03 – 07): Implied Vol Does a Roundtrip

(Mostly) Asia-Pac M&A: Shibaura, Tecnos, Insignia Fin., Fosun Tourism, Fuji Soft, Shin Kong/Taishin

By David Blennerhassett

Last Week in Event SPACE: Kyocera, WH Group/Smithfield, CNBM, Japan Eyewear, Core Concept Tech

By David Blennerhassett

EQD | Kospi Index Options Weekly (February 03 – 07): Implied Vol Does a Roundtrip

By John Ley

  • Implied vols rose 2.22 points in Monday’s sell off but round-tripped on the week, giving all the gains back by Friday. 
  • Rough start to the week amid tariff talk, Kospi dropping 2.64%.
  • At this level we expect implied vol to remain more reactive to price shocks than we have seen over the past two months.

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Feb 09
0

Daily Brief Equity Bottom-Up: Tech Supply Chain Tracker (09-Feb-2025): TSMC tightens restrictions on Chinese IC firms. and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Tech Supply Chain Tracker (09-Feb-2025): TSMC tightens restrictions on Chinese IC firms.
  • Clean Science and Technologies Ltd- Entering New Habitats
  • Sify Technologies – Exploring INR3,000 Crore Data Center IPO
  • China Healthcare Weekly (Feb.9) – Vesync Is a High-Quality Company, VBP to Cover Retail Pharmacies
  • Spotify’s First Truly Profitable Year Was Great! But Will It Be EVEN MORE Profitable With The Expansion of Subscription Tiers & Monetization Of Video Content?
  • BRIS – Strong Numbers Just Out, Asset Growth High, Credit Costs Low, Fees Doing Well
  • Amgen: How Its $3.5 Billion Acquisition & Its High-Stakes Drug Pipeline Are Reshaping Its Growth Strategy
  • Chipotle Mexican Grill: Dealing With Digital Engagement Complexities & Other Key Challenges In Its Path!
  • ATI Inc.: Strategic Customer Partnerships & Capacity Utilization For Unmatched Impact!
  • Electronic Arts’ (EA) Plans to Capitalize on the Next Gaming Boom – The Live-Service Shift That Could Change the Industry Forever!

Tech Supply Chain Tracker (09-Feb-2025): TSMC tightens restrictions on Chinese IC firms.

By Tech Supply Chain Tracker

  • TSMC implements restrictions on Chinese IC firms to follow US semiconductor controls, limiting access to advanced chip technologies.
  • Estonian defense delegation seeks collaboration with Taiwan on drones, highlighting growing partnership between the two countries.
  • ASE faces leadership uncertainty after chairman’s heir tragically passes away, impacting the future direction of the semiconductor giant.

Clean Science and Technologies Ltd- Entering New Habitats

By Nitin Mangal

  • Clean Science and Technology (CLEAN IN) is one of the leading chemical manufacturers globally of functionally critical specialty chemicals, Pharmaceutical Intermediates, and FMCG Chemicals.
  • It has embarked on a massive expansion by commissioning a new plant to manufacture HALS and is also spending additional capex to manufacture new products.
  • With forensics, we pay attention to excessive remuneration being paid to promoters, concentration risk from top customers, and increase in attrition of permanent employees.

Sify Technologies – Exploring INR3,000 Crore Data Center IPO

By Garvit Bhandari

  • Sify Technologies Ltd is planning to tap into the burgeoning demand for data centers in the India via a INR3,000 crore IPO
  • Sify has aggressive expansion plans in place with the aim to triple its data center capacity to more than 350 MW in the coming years.
  • We expect the value of standalone data center business to be more than the current market cap of Sify. In our view, IPO will unlock value for existing Sify shareholders.

China Healthcare Weekly (Feb.9) – Vesync Is a High-Quality Company, VBP to Cover Retail Pharmacies

By Xinyao (Criss) Wang

  • Relevant departments are discussing the promotion of drugs included in VBP scope to enter retail pharmacies. However, the new business model will be detrimental to valuation performance for retail pharmacies.
  • The gap in the distribution of funds among biotech companies is rapidly widening. We suggest investors focus on leading biotech rather than take risks in areas with higher uncertainties.
  • Vesync is a good company. Due to the low liquidity, the Proposal presents a good opportunity for shareholders to exit. Considering its future growth potential, Share Alternative can be considered.

Spotify’s First Truly Profitable Year Was Great! But Will It Be EVEN MORE Profitable With The Expansion of Subscription Tiers & Monetization Of Video Content?

By Baptista Research

  • Spotify Technology S.A., a leading global audio streaming service, reported a strong conclusion to its fiscal year 2024, highlighted by record metrics across multiple fronts.
  • The company achieved its highest-ever fourth-quarter addition of Monthly Active Users (MAUs) and a substantial increase in premium subscribers, reflecting positively on its growth strategies and customer engagement efforts.
  • Positives from the performance include the notable growth in Spotify’s MAUs, adding 35 million users to reach 675 million, alongside 11 million new subscribers bringing the total to 263 million.

BRIS – Strong Numbers Just Out, Asset Growth High, Credit Costs Low, Fees Doing Well

By Daniel Tabbush

  • Bank Syariah Indonesia Tbk PT (BRIS IJ) reported 11% QoQ net profit in 4Q24
  • Credit costs are down nearly 75% QoQ and annually, there are improving figures
  • Fee income growth is relatively new, ROA expansion can continue, to even >3% from this

Amgen: How Its $3.5 Billion Acquisition & Its High-Stakes Drug Pipeline Are Reshaping Its Growth Strategy

By Baptista Research

  • Amgen Inc. highlighted substantial achievements and growth potential for 2024 while outlining some challenges and strategies moving forward.
  • The company’s financial results reflected its success across various therapeutic areas, despite facing pricing pressures and patent expirations.
  • Revenue for the full year of 2024 reached $33.4 billion, reflecting a significant 19% increase year-over-year, driven mainly by a 23% volume increase across products.

Chipotle Mexican Grill: Dealing With Digital Engagement Complexities & Other Key Challenges In Its Path!

By Baptista Research

  • Chipotle Mexican Grill’s fourth-quarter 2024 results present a mixed picture of robust growth and operational challenges.
  • The company saw a 13% increase in sales, reaching $2.8 billion for the quarter, driven by a 5.4% increase in comparable sales and a notable 4% increase in transaction growth.
  • For the full fiscal year 2024, sales grew by 15% to $11.3 billion, with a 7.4% increase in comparable sales including over 5% transaction growth.

ATI Inc.: Strategic Customer Partnerships & Capacity Utilization For Unmatched Impact!

By Baptista Research

  • Allegheny Technologies Inc. (ATI) reported robust financial results for the fourth quarter of 2024 and the full year.
  • Its performance highlights include a sequential revenue increase of 12% in the fourth quarter, reaching $1.2 billion, and adjusted EBITDA surpassing guidance at $210 million.
  • For the full year, ATI achieved nearly $4.4 billion in revenue, marking its highest since 2012, with a 5% year-over-year increase despite industry challenges.

Electronic Arts’ (EA) Plans to Capitalize on the Next Gaming Boom – The Live-Service Shift That Could Change the Industry Forever!

By Baptista Research

  • Electronic Arts Inc. (EA) had a mixed third-quarter fiscal 2025 performance, which presented both challenges and positive developments.
  • On the downside, the company faced a financial performance below expectations, notably with its key franchises.
  • The newly launched “Dragon Age: The Veilguard,” despite being well-received critically, did not perform as expected due to the competitive nature of the single-player RPG market.

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Feb 09
0

Daily Brief South Korea: Korea Stock Exchange KOSPI 200 and more

By | Daily Briefs, South Korea

In today’s briefing:

  • EQD | Kospi Index Options Weekly (February 03 – 07): Implied Vol Does a Roundtrip

EQD | Kospi Index Options Weekly (February 03 – 07): Implied Vol Does a Roundtrip

By John Ley

  • Implied vols rose 2.22 points in Monday’s sell off but round-tripped on the week, giving all the gains back by Friday. 
  • Rough start to the week amid tariff talk, Kospi dropping 2.64%.
  • At this level we expect implied vol to remain more reactive to price shocks than we have seen over the past two months.

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