Smartkarma Daily Briefs

• Samsung Life Insurance (032830 KS) is considering on a special measure of classifying its stake in Samsung Electronics (005930 KS) as a long-term holding stock of up to 10 years.
• If Samsung Life Insurance’s stake in Samsung Electronics is classified as a long-term holding, Samsung Life Insurance cannot sell Samsung Electronics stocks for at least 5 years.
• There is an increasing probability that if Samsung Life Insurance classifies its stake in Samsung Electronics as a long-term holding, the current ownership stake structure involving Samsung Group remains intact.

• President Donald Trump announced the Stargate Project, a new company which intends to invest $500 billion over four years building new AI infrastructure for OpenAI in the United States.
• Elon Musk is miffed, Microsoft says they “approved” the project and have a new Right of First Refusal agreement in place with OpenAI. 
• Stargate is exclusively for OpenAI and the press release states that its mission is to provide a strategic capability to protect the national security of America and its allies.

• We expect JD.com C4Q24 revenue/non-GAAP NI to be RMB337bn/9.7bn, 1.6%/6.5% above consensus, benefiting from trade-in subsidies and logistics;
• With 2025 having four quarters of trade-in subsidy vs. 2024’s one quarter and smartphone’s participation, JD.com is on solid growth footing in our universe. 
• We raised JD.com’s TP from US$50 to US$ 52 TP and maintain BUY rating.

• Greatland Gold is transitioning from a developer to a producer with the acquisition of Telfer and Haveron assets from Newmont.
• In just 27 days of operation, they produced 29.9 thousand ounces of gold and 1.2 thousand tonnes of copper, exceeding expectations.
• The company has a healthy balance sheet with 145 million in cash, no debt, and plans for mine life extensions at Telfer, including stage seven and eight cutbacks.

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

• BoJ raised rates to 0.5% at its January policy meeting and BoJ Governor Kazuo Ueda hinted at more rate hikes; BoJ’s new Outlook Report forecasts higher core inflation in 2025
• We reiterate our core recommendations Resona and Mizuho for their leverage to higher interest rates, their low LDRs, their high levels of cash at the BoJ and their modest valuation
• We also keep our buys on Concordia and Shizuoka, for their leverage to higher interest rates and LDRs below 90%, along with their attractive valuations highlighted by low PEGs

• ExxonMobil’s Q4 revenue is expected to rise 2.5% YoY while its EPS is anticipated to fall 36.3%. Annual revenue and EPS are expected to fall by 1.9% YoY and 18.1%.
• Exxon expects Q4 2024 upstream earnings to drop USD 500–900 million QoQ due to lower crude prices, with refining margins further reducing earnings by USD 300–700 million.
• ExxonMobil plans to invest up to USD 30 billion in low-emission projects by 2030, with its Low Carbon Solutions business expected to contribute an additional USD 2 billion in earnings.

• HTC and VIA are focusing on niche markets and expanding technological capabilities to stay relevant, while Japanese toolmakers turn to AI amid China market uncertainty.
• Nvidia CEO highlights strategic partnership with China’s robotics unicorns, as Acer expands into lifestyle products with Acerpure line.
• Singapore and Malaysia remain optimistic despite US AI chip restrictions, while India’s local EMS and semiconductor industries show growth in the technology sector.

• Dr. Reddy’s Laboratories (DRRD IN) reported Q3FY25 US business revenue of INR33.8B, up 1% YoY, mainly dragged by lower contribution from Lenalidomide. Q3FY25 EBITDA margin deteriorated to 27.5% (Q3FY24: 29.3%).
• Limited growth catalysts remain major overhang. No near-term key launches lined-up to fill the void created by Lenalidomide. Moreover, paltry new launches in the U.S. entail limited revenue visibility.
• Lack of near-term catalyst and bleak growth outlook justify cheaper valuation of Dr. Reddy’s. We do not consider Dr. Reddy’s as value buying opportunity and remain bearish on the name.

• Goldman Sachs’ GCI enters partnership with Asia Pacific Land in Japan for data center venture, expanding its reach in Asia.
• CPPIB and MGRV collaborate on $350M venture in Korean rental housing, aiming to capture opportunities in the real estate market.
• S&P forecasts rebound in China’s property market, driven by increase in secondary sales, indicating positive growth.

• BLND’s stock price has decreased, resembling CVNA’s past struggles
• BLND has been restructuring its cost base and balance sheet to prepare for future growth
• The company, led by a young CEO, is poised for potential recovery and positive earnings revisions, drawing parallels to CVNA’s path to success

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.