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Smartkarma Daily Briefs

Feb 07
0

Daily Brief Credit: Lucror Analytics – Morning Views Asia and more

By | Credit, Daily Briefs

In today’s briefing:

  • Lucror Analytics – Morning Views Asia

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: Sino-Ocean
  • In the US, the ISM services index declined to 52.8 (54.0 e / 54.0 revised p) in January. This was driven by decreases in the new orders and prices paid components, albeit the employment component edged up to 52.3 (51.3 revised p). Separately, the January (final) S&P services PMI fell to 52.9 (56.8 p), with the composite PMI dropping to 52.7 (55.4 p).
  • Meanwhile, the trade deficit expanded to USD 98.4 bn (USD 96.8 bn e / USD 78.9 bn revised p), the second largest deficit on record. Exports decreased 2.6% m-o-m to USD 267 bn, while imports jumped 3.5% to a record high of USD 365 bn due to import front-loading ahead of expected new tariffs.

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Feb 07
0

Daily Brief ECM: Whirlpool of India OFS Early Look – Another Large Selldown by Parent and more

By | Daily Briefs, ECM

In today’s briefing:

  • Whirlpool of India OFS Early Look – Another Large Selldown by Parent
  • HMH Holding Inc. (HMHW): Drilling and Service Provider on Deck for IPO in Near Future
  • Guming Holdings (Good Me) IPO Preview
  • Brainbees Solutions (FirstCry) – US$2bn IPO Lockup Expiry with Most Investors Still in the Money
  • Euro Pratik Sales Ltd Pre-IPO Tearsheet
  • Dorf-Ketal Chemicals India Ltd Pre-IPO Tearsheet
  • Aardvark Therapeutics (AARD): Obesity Related Biotech Seeking $85m After Setting Terms for IPO
  • Sionna Therapeutics Inc. (SION): Biotech Guiding to High-End Pricing; Expecting Strong Outcome

Whirlpool of India OFS Early Look – Another Large Selldown by Parent

By Akshat Shah

  • Whirlpool Corp (WHR US) is looking to raise about INR 46bn (US$530m) from selling a stake of about 31% in Whirlpool of India Limited (WHIRL).
  • In an announcement released on Jan 30, 2025, the firm mentioned its ultimate parent’s intention to sell down its interest in WHIRL from 51% to 20% by mid-to-late 2025.
  • In this note, we talk about the past deal performance and other deal dynamics.

HMH Holding Inc. (HMHW): Drilling and Service Provider on Deck for IPO in Near Future

By IPO Boutique

  • Drilling equipment and service provider updated the terms for its IPO in late January. 
  • They had total revenue of $577.2 million and $614.8 million and net income of $10.2 million and $44.9 million in the first three quarters of 2023 and 2024, respectively.
  • The Houston based company would be following three previous energy IPOs: Flowco Holdings (FLOC US) , Venture Global LNG (VG US) and Infinity Natural Resources (INR US)

Guming Holdings (Good Me) IPO Preview

By Douglas Kim

  • Guming Holdings (1364 HK) (Good Me) is getting ready to complete its IPO on the Hong Kong Exchange in February.
  • At the high end of the IPO price range, the listing will raise about HK$1.58 billion (US$220 million).  
  • Guming is a ready-to-drink beverage company specializing in freshly made tea beverages.

Brainbees Solutions (FirstCry) – US$2bn IPO Lockup Expiry with Most Investors Still in the Money

By Sumeet Singh

  • BrainBees Solutions (FIRSTCRY IN) (FirstCry) raised around US$500m in its August 2024 India IPO. The lockup on its pre-IPO investors is set to expire soon.
  • In India, FirstCry sells Mothers’, Babies’ and Kids’ products through its online platform, company-owned modern stores, franchisee-owned modern stores and general trade retail distribution.
  • In this note, we will talk about the lockup dynamics and possible placement.

Euro Pratik Sales Ltd Pre-IPO Tearsheet

By Rosita Fernandes

  • Euro Pratik Sales Ltd (7778885Z IN) (EPS) is looking to raise about US$100m in its upcoming India IPO. The bookrunners for the deal are Axis, Dam Capital.
  • The company operates in the decorative wall panel and decorative laminates industry as a prominent seller and marketer of Decorative Wall Panels and Decorative Laminates. 
  • According to the Technopak Report, has established itself as one of the largest organized Wall Panel brands, with a market share of 15.87% by revenue.

Dorf-Ketal Chemicals India Ltd Pre-IPO Tearsheet

By Rosita Fernandes

  • Dorf-Ketal Chemicals Ltd (998552Z IN) (DKCIL) is looking to raise about US$579m in its upcoming India IPO. The bookrunners for the deal are JM Fin, Citi, HSBC, JPM, MS, Motilal.
  • DKCIL is an R&D with innovation-focused global manufacturer and supplier of specialty chemicals, catering to the hydrocarbons and industrial supply chains.
  • According to the F&S Report, the company is one of the major producers in the development, commercialization, and application of specialty chemicals in India.

Aardvark Therapeutics (AARD): Obesity Related Biotech Seeking $85m After Setting Terms for IPO

By IPO Boutique

  • The company set terms for an IPO on Thursday seeking up to $85m if the offering prices at the middle of the ($16-$18) range. 
  • Aardvark Therapeutics develops novel, small-molecule therapeutics to activate innate homeostatic pathways for the treatment of metabolic diseases.
  • Their lead product candidate is an oral gut-restricted small-molecule agonist of certain TAS2Rs expressed in the gut lumen and have initiated a Phase 3 trial for hyperphagia associated with PWS.

Sionna Therapeutics Inc. (SION): Biotech Guiding to High-End Pricing; Expecting Strong Outcome

By IPO Boutique

  • The current price guidance is pointing to the high-end of the prevailing $16-$18 range with allocations expected to be “cut-back”.
  • This biotech is extremely well-backed with RA Capital entering the IPO as the company’s largest shareholder (29.2% pre-IPO stake).
  • Clinical-Stage biopharmaceutical company on a mission to revolutionize the current treatment paradigm for cystic fibrosis (“CF”) patients is set to go public on Friday. 

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Feb 07
0

Daily Brief Event-Driven: TOPIX Inclusions: Who Is Ready (Feb 2025) and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • TOPIX Inclusions: Who Is Ready (Feb 2025)
  • Quiddity Leaderboard NIFTY Mar 25: Final Expectations; Expected DELs Could Underperform Index
  • WellNeo Sugar (2117) To Buy Toyo Sugar (2107) – Too Cheap, No Synergies Paid, but Too Small
  • A Partial Tender Offer of Englewood Lab by Cosmecca Korea
  • Making a Call on when Samsung’s Financial Arms Will Drop Their Value-Up Announcements
  • NIFTY50 Index Rebalance Preview: Adds Secure; Tight Among the Deletes
  • Crooz Sells Online Mall Business to Korea’s Nugu
  • Ecopro Materials Block Deal Timing Closing In: Breaking Down the Situation
  • CPPTL Real Estate Trust Liquidation: Potential 28-45% Upside Amid Portfolio Sale
  • Paragon 28 Acquisition by Zimmer Biomet: Evaluating the Free CVR Opportunity and Growth Potential

TOPIX Inclusions: Who Is Ready (Feb 2025)

By Janaghan Jeyakumar, CFA

  • Quiddity’s “Who is Ready” series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
  • Japan Eyewear Holdings (5889 JP) and Core Concept Technologies Inc (4371 JP) continue to be in our watchlist of pre-event candidates for TOPIX Inclusions.
  • Separately, the TOPIX Liquidity factor removal event will take place in April 2025 and there could be some positive index flows for Tokyo Metro (9023 JP) during this event.

Quiddity Leaderboard NIFTY Mar 25: Final Expectations; Expected DELs Could Underperform Index

By Janaghan Jeyakumar, CFA

  • NIFTY 50 represents the 50 largest stocks listed in the National Stock Exchange (NSE) of India and the NIFTY Next 50 index tracks the next 50 largest names.
  • In this insight, we are presenting our final expectations for ADDs and DELs for the March 2025 index rebal event.
  • We see two changes for NIFTY 50 and four changes for NIFTY 100. We expect the results to be announced in the next few days.

WellNeo Sugar (2117) To Buy Toyo Sugar (2107) – Too Cheap, No Synergies Paid, but Too Small

By Travis Lundy

  • WellNeo Sugar (2117) today announced a deal to buy Toyo Sugar Refining (2107 JP) at a 27% premium. This is a small ¥11bn deal where insiders own 45%. 
  • Normally I wouldn’t even talk about a deal this small but this one has something going for it. Two things actually. 
  • And readers will have to read all the way down to the conclusions to find out the key one, but the setup is that it is too cheap.

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.

Making a Call on when Samsung’s Financial Arms Will Drop Their Value-Up Announcements

By Sanghyun Park

  • Samsung Life’s value-up disclosure: we should expect it with Q4 earnings on the 20th—every local desk and media outlet is eyeing that date.
  • Unlike Samsung Life, Samsung Securities is tight-lipped. Earnings are set for Feb 14, but expect the value-up announcement after Feb 20, likely before early March and AGM season.
  • Tomorrow’s unlikely for Samsung Card’s value-up disclosure. It’s holding off until the card fee recalculation is finalized—likely after February or before mid-March, ahead of AGM season.

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

By Brian Freitas

Crooz Sells Online Mall Business to Korea’s Nugu

By Michael Causton

  • Crooz’s Shop-list.com used to be one of the fastest growing online fashion malls in Japan but, just before Covid, it hit a wall and hasn’t recovered since. 
  • Now it will be merged with Korean fashion mall, Nugu, and its real value as a database of young female consumers will become clear. 
  • This should help Nugu grow to GTVs of ¥100 billion from Japan alone but will leave Crooz as a small bit player in digital services.

Ecopro Materials Block Deal Timing Closing In: Breaking Down the Situation

By Sanghyun Park

  • Yoon Kwan’s appeal won’t change much—it’s just stalling. His tax uncertainty is now priced in, so the reason to delay selling his EcoPro M stake is quickly fading.
  • The BRV block deal won’t follow the new pre-disclosure rule, as Yoon’s likely to classify BRV as a financial investor, so no one-month heads-up.
  • The deal’s likely in 2-3 weeks; volume will spike 2-3 days before. Once we catch the signals, it’s time to position for the EcoPro M block trade.

CPPTL Real Estate Trust Liquidation: Potential 28-45% Upside Amid Portfolio Sale

By Dalius Tauraitis

  • CPPTL, a real estate trust, is liquidating 121 JC Penney-leased properties, potentially offering 28%-45% upside by 2025.
  • Major shareholders, primarily former JC Penney creditors, own 70% of CPPTL shares, indicating potential eagerness to exit.
  • CPPTL properties are marketed with Newmark; initial offers expected by February 26, targeting 7%-8% cap rates.

Paragon 28 Acquisition by Zimmer Biomet: Evaluating the Free CVR Opportunity and Growth Potential

By Dalius Tauraitis

  • Paragon 28 is being acquired by Zimmer Biomet for $13/share in cash plus a non-transferable CVR tied to 2026 revenue.
  • The CVR pays up to $1/share if Paragon’s revenue reaches $361m, requiring a 19% CAGR over two years.
  • The merger is supported by management and faces minimal regulatory hurdles, with DaCosta incentivized to achieve CVR targets.

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Feb 07
0

Daily Brief Equity Bottom-Up: Yamaha Corp (7951) BIG Buyback May Be Followed By More Later and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Yamaha Corp (7951) BIG Buyback May Be Followed By More Later
  • Jack Henry: VMS King – [Business Breakdowns, EP.205]
  • ASML CEO: EUV Technology, Microchips and Long-term Mindset
  • Tokyo Electron (TEL):  Maintains Its FY25 Guidance and Provides a Cautious 2025 Outlook
  • The Beat Ideas: Aarti Drugs Revival
  • MediaTek (2454.TT): A Good Start in 1Q25; D9500 Launched After About 1H25; China Subsidy.
  • Tech Supply Chain Tracker (07-Feb-2025): Chinese cloud giants support DeepSeek as AI revolutionizes cloud.
  • Mercari (4385) | Profitability on the Rise with More Levers to Pull
  • QCOM: Moderate Growth, Average Valuations – Nothing to Get Excited About
  • Ramkrishna Forgings Q3 FY25 Earnings: A Mixed Bag with a Promising Outlook

Yamaha Corp (7951) BIG Buyback May Be Followed By More Later

By Travis Lundy

Jack Henry: VMS King – [Business Breakdowns, EP.205]

By Business Breakdowns

  • Jack Henry is a best in class operator within the vertical market software space
  • They sell operating system software for small and mid-sized banks
  • Jack Henry focuses on organic growth and their core product

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

ASML CEO: EUV Technology, Microchips and Long-term Mindset

By In Good Company with Nicolai Tangen

  • ASML produces lithography systems for printing electronic circuits on chips
  • ASML is the only company in the world producing EUV lithography printers
  • EUV lithography involves generating light with a very small wavelength and requires complex technology and optics, with challenges in light generation and guiding the light to print circuits on wafers

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

Tokyo Electron (TEL):  Maintains Its FY25 Guidance and Provides a Cautious 2025 Outlook

By Nicolas Baratte

  • Cautious 2025 outlook: SEAJ and other Japanese SPE firms have toned down 2025 expectations. TEL mentions a flat total end-demand.
  • In 2024, spending was concentrated in leading edge (AI) and China. In 2025, Intel and Samsung Logic Capex declines, China should decline. The bright spots are TSMC and HBM Capex.
  • Consensus expectations are low, but rightly so. The stock is at average PEx. Neutral territory.

The Beat Ideas: Aarti Drugs Revival

By Sudarshan Bhandari

  • Received US FDA Approval for both Tarapur & Baddi Facility & moving to regulated market.
  • Increase in revenues & margins with the US FDA approvals & Many products are backward integration or import substitution which is expected to boost demand
  • US entry to allow product & bottomline expansion and would also focus on increasing market presence from semi-regulated markets along with regulated markets

MediaTek (2454.TT): A Good Start in 1Q25; D9500 Launched After About 1H25; China Subsidy.

By Patrick Liao

  • The upcoming 1Q25 could be relatively flat or slightly higher than 4Q24, which represents a better start than usual due to seasonal effects.  
  • The Dimistry 8400/9400 models have been successful sellers, and a new Dimistry 9500 is expected to be launched after the first half of 2025. (link)
  • The China electronic household subsidy program, including smartphone, has resulted in over 8 million sales in shipments within 4 days on Jan 25.

Tech Supply Chain Tracker (07-Feb-2025): Chinese cloud giants support DeepSeek as AI revolutionizes cloud.

By Tech Supply Chain Tracker

  • Top Chinese cloud platforms are supporting DeepSeek as AI changes the landscape of cloud intelligence.
  • Meta and Google are pushing forward with smart glasses development, overcoming obstacles in the Asian supply chain.
  • SiPh progress is exceeding TSMC’s expectations, heating up the optical communication CPO market earlier than anticipated.

Mercari (4385) | Profitability on the Rise with More Levers to Pull

By Mark Chadwick

  • Record Margins: Q2 OP surged 82% YoY to ¥7.1b, with Japan profitability up and losses narrowing in Fintech and the US.
  • US Breakeven Play: Aggressive cost-cutting led to 12ppt margin improvement; if growth stalls, a sale or exit could boost margins by 200bps.
  • Fintech Upside: Losses peaked last year, with 16ppt OPM improvement; breaking even could add 400bps to group margins.

QCOM: Moderate Growth, Average Valuations – Nothing to Get Excited About

By Nicolas Baratte

  • Pretty good Dec-24 quarter (1Q25), ~10% above expectations. Decent Mar-25 (2Q25) guidance, ~5% above expectations. The stock is down after hours, because?
  • FY25, I estimate Mobile revenues up ~10% YoY, Auto ~30%, IoT ~20%. QCOM said that Licensing revenues will be flat. Total revenue growth ~12% YoY, I expect similar for FY26.
  • Conclusion: nothing exciting, management reiterates big non-mobile revenue targets by 2029 (US$22bn) but downside from Apple Modem ending in 2027. In the meantime the stock is properly valued.

Ramkrishna Forgings Q3 FY25 Earnings: A Mixed Bag with a Promising Outlook

By Sudarshan Bhandari

  • Ramkrishna Forgings (RMKF IN) reported Q3 FY25 revenue growth of 8% and volume up 13.9%, alongside new capacity expansions and Rs. 697 crore in new orders.
  • These robust results and strategic capacity boosts underscore RKFL’s resilience, positioning it for sustainable growth amid raw material and market headwinds.
  • Investors should see the mixed Q3 performance as a sign of proactive investments that could translate into significant long-term value.

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Feb 07
0

Daily Brief Macro: Why Big Oil is resisting Trump’s call to ‘drill and more

By | Daily Briefs, Macro

In today’s briefing:

  • Why Big Oil is resisting Trump’s call to ‘drill, baby, drill’
  • India Energy Week to seek answers on demand trajectory, oil diplomacy and upstream push
  • The Tariff Effect: Economic Uncertainty Unpacked | The New Barbarians #006
  • China Housing: Progress On The “Whitelist” Project Financing Approvals
  • Large U.S. Trade Deficit and Canada’s Balance Moving into Surplus
  • CX Daily: China’s Rock Bottom Drug Prices Spark Quality Concerns
  • MJO To Induce Rains, But Dry Conditions Likely To Dominate
  • Walker’s Weekly: Dr. Jim’s Summary of Key Global Macro Developments – 7 Feb 2025
  • Inflation Ghost – Part II
  • BoE Activist Joins 50bp Dissent

Why Big Oil is resisting Trump’s call to ‘drill, baby, drill’

By Behind the Money

  • Trump declares a national energy emergency and calls for increased oil production
  • The US shale revolution led to a surge in oil and gas production
  • Despite Trump’s push for more drilling, the oil industry is hesitant due to current market conditions and oversupply of oil

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

India Energy Week to seek answers on demand trajectory, oil diplomacy and upstream push

By Commodities Focus

  • India is becoming a key player in global oil demand growth, with forecasts predicting substantial expansion in the coming years
  • The global oil industry is shifting its focus from China to India as the main driver of demand growth
  • Challenges for India in meeting oil demand include weather effects, economic activity rhythms, currency strength, and inflation impacts on affordability

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

The Tariff Effect: Economic Uncertainty Unpacked | The New Barbarians #006

By William Mann

  • Equities opened down, with futures showing a decline across various markets
  • January saw significant gains in gold and Bitcoin, outperforming equities
  • European stocks surged 8.2% in a month, surprising many investors and challenging traditional market outlooks

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

China Housing: Progress On The “Whitelist” Project Financing Approvals

By Robert Ciemniak

  • We’ve been tracking the data on approved financing for the projects on the ‘whitelist’ for over a year now, considering it a major factor in addressing the ‘sold-not-completed’ problem
  • New data released in January shows the approved loans for the ‘whitelist’ projects exceeded the target in 2024
  • There was a big acceleration in approvals in Q4 2024

Large U.S. Trade Deficit and Canada’s Balance Moving into Surplus

By Alex Ng

  • December’s US trade deficit of $98.4bn from $78.9bn in November is even wider than expected and the widest since March 2022.
  • Exports fell by 2.6% after a 2.7% November increase while imports rose by 3.5% for a second straight month.
  • Goods exports fell by 4.2% versus 4.5% in the advance report while goods imports rose by 4.0% versus 33.9% in the advance report.

CX Daily: China’s Rock Bottom Drug Prices Spark Quality Concerns

By Caixin Global

  • Drug / Analysis: China’s rock bottom drug prices spark quality concerns
  • PMI /China services growth slows as supply, demand moderate, Caixin PMI shows
  • Export controls: China has restricted exports of five metals used in the semiconductor and defense industries to protect its national security.

MJO To Induce Rains, But Dry Conditions Likely To Dominate

By Vinod Nedumudy

  •  Heavy rain may occur in east Indonesia during one-month period
  • Disruption to rubber production may be mostly from heat
  • WEF, WMO seek private contribution for early weather warning

Walker’s Weekly: Dr. Jim’s Summary of Key Global Macro Developments – 7 Feb 2025

By Dr. Jim Walker

  • Global uncertainty grows due to U.S. trade policies, impacting investment and slowing economic activity across multiple regions, including Europe and Asia.
  • Hong Kong’s retail sector struggles, with falling sales and rents, while India and Indonesia show resilience despite expected slowdowns.
  • UK and India cut interest rates, but UK economic policies remain ineffective, whereas India’s growth, though slowing, remains strong.

Inflation Ghost – Part II

By Sharmila Whelan

  • There is no imminent inflation threat in our assessment of business cycle indicators.
  • We do not buy the mainstream view that Trump’s policies will lead to a structural upshift in inflation. Quite the contrary.
  • However inflation is not going back to pre-Covid rates. Around 2.5- 3% will be the norm hereon, which is good for corporate earnings growth and real assets

BoE Activist Joins 50bp Dissent

By Phil Rush

  • The BoE’s 25bp rate cut came with a shockingly dovish vote split as the former hawkish dissenter proved to be an activist in backing an immediate 50bp reduction.
  • Bank inflation forecasts are trending up and only touch the target with one or two more cuts as the MPC appears to be more cautiously concerned about persistence.
  • We maintain our call for the BoE to hold rates in March before delivering a final 25bp cut in May, assuming conditions that also end the Fed’s cycle in March and ECB in June.

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Feb 07
0

Daily Brief South Korea: Englewood Lab, Samsung Card Co, EcoPro Materials, SK Biopharmaceuticals and more

By | Daily Briefs, South Korea

In today’s briefing:

  • A Partial Tender Offer of Englewood Lab by Cosmecca Korea
  • Making a Call on when Samsung’s Financial Arms Will Drop Their Value-Up Announcements
  • Ecopro Materials Block Deal Timing Closing In: Breaking Down the Situation
  • SK Biopharmaceuticals (326030 KS): Records Maiden Profit in 2024; Momentum to Continue

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.

Making a Call on when Samsung’s Financial Arms Will Drop Their Value-Up Announcements

By Sanghyun Park

  • Samsung Life’s value-up disclosure: we should expect it with Q4 earnings on the 20th—every local desk and media outlet is eyeing that date.
  • Unlike Samsung Life, Samsung Securities is tight-lipped. Earnings are set for Feb 14, but expect the value-up announcement after Feb 20, likely before early March and AGM season.
  • Tomorrow’s unlikely for Samsung Card’s value-up disclosure. It’s holding off until the card fee recalculation is finalized—likely after February or before mid-March, ahead of AGM season.

Ecopro Materials Block Deal Timing Closing In: Breaking Down the Situation

By Sanghyun Park

  • Yoon Kwan’s appeal won’t change much—it’s just stalling. His tax uncertainty is now priced in, so the reason to delay selling his EcoPro M stake is quickly fading.
  • The BRV block deal won’t follow the new pre-disclosure rule, as Yoon’s likely to classify BRV as a financial investor, so no one-month heads-up.
  • The deal’s likely in 2-3 weeks; volume will spike 2-3 days before. Once we catch the signals, it’s time to position for the EcoPro M block trade.

SK Biopharmaceuticals (326030 KS): Records Maiden Profit in 2024; Momentum to Continue

By Tina Banerjee

  • SK Biopharmaceuticals (326030 KS) reported first-ever annual operating and net profit of KRW96B and KRW227B, respectively in 2024. In 2023, operating and net loss stood at KRW38B and KRW35B, respectively.
  • The company has turned profitable in 2024 driven by continued momentum of Xcopri in U.S. For 2024, Xcopri recorded revenue of $321.6M in the U.S., exceeding guidance of $300–320M.
  • For 2025, SKBP has guided for Xcopri U.S. revenue of $420–450M (~KRW570–610B), up 31–40% YoY. The company expects 2025 SG&A expenses will be KRW490B, up 20% YoY.

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Feb 07
0

Daily Brief Singapore: SGX Rubber Future TSR20 and more

By | Daily Briefs, Singapore

In today’s briefing:

  • MJO To Induce Rains, But Dry Conditions Likely To Dominate

MJO To Induce Rains, But Dry Conditions Likely To Dominate

By Vinod Nedumudy

  •  Heavy rain may occur in east Indonesia during one-month period
  • Disruption to rubber production may be mostly from heat
  • WEF, WMO seek private contribution for early weather warning

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Feb 07
0

Daily Brief United States: Crude Oil, Jack Henry & Associates, HMH Holding, Copper Property CTL Pass Through Trust, Qualcomm Inc, Shell , Olin Corp, Allakos Inc, TuHURA Biosciences and more

By | Daily Briefs, United States

In today’s briefing:

  • Why Big Oil is resisting Trump’s call to ‘drill, baby, drill’
  • India Energy Week to seek answers on demand trajectory, oil diplomacy and upstream push
  • Jack Henry: VMS King – [Business Breakdowns, EP.205]
  • HMH Holding Inc. (HMHW): Drilling and Service Provider on Deck for IPO in Near Future
  • CPPTL Real Estate Trust Liquidation: Potential 28-45% Upside Amid Portfolio Sale
  • QCOM: Moderate Growth, Average Valuations – Nothing to Get Excited About
  • [Earnings Review] Shell Rises on Dividend Hike, Strong Shareholder Returns Despite Earnings Miss
  • Olin Corporation: Will Epoxy Market Dynamics Help The Company Benefit From Potential EU Antidumping Duties?
  • Evaluating Allakos: Strategic Review, NOL Potential, and Kevin Tang’s Activist Stake Amidst Biopharma Challenges
  • TuHURA Biosciences, Inc. – Initiating an Immune Response

Why Big Oil is resisting Trump’s call to ‘drill, baby, drill’

By Behind the Money

  • Trump declares a national energy emergency and calls for increased oil production
  • The US shale revolution led to a surge in oil and gas production
  • Despite Trump’s push for more drilling, the oil industry is hesitant due to current market conditions and oversupply of oil

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

India Energy Week to seek answers on demand trajectory, oil diplomacy and upstream push

By Commodities Focus

  • India is becoming a key player in global oil demand growth, with forecasts predicting substantial expansion in the coming years
  • The global oil industry is shifting its focus from China to India as the main driver of demand growth
  • Challenges for India in meeting oil demand include weather effects, economic activity rhythms, currency strength, and inflation impacts on affordability

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

Jack Henry: VMS King – [Business Breakdowns, EP.205]

By Business Breakdowns

  • Jack Henry is a best in class operator within the vertical market software space
  • They sell operating system software for small and mid-sized banks
  • Jack Henry focuses on organic growth and their core product

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

HMH Holding Inc. (HMHW): Drilling and Service Provider on Deck for IPO in Near Future

By IPO Boutique

  • Drilling equipment and service provider updated the terms for its IPO in late January. 
  • They had total revenue of $577.2 million and $614.8 million and net income of $10.2 million and $44.9 million in the first three quarters of 2023 and 2024, respectively.
  • The Houston based company would be following three previous energy IPOs: Flowco Holdings (FLOC US) , Venture Global LNG (VG US) and Infinity Natural Resources (INR US)

CPPTL Real Estate Trust Liquidation: Potential 28-45% Upside Amid Portfolio Sale

By Dalius Tauraitis

  • CPPTL, a real estate trust, is liquidating 121 JC Penney-leased properties, potentially offering 28%-45% upside by 2025.
  • Major shareholders, primarily former JC Penney creditors, own 70% of CPPTL shares, indicating potential eagerness to exit.
  • CPPTL properties are marketed with Newmark; initial offers expected by February 26, targeting 7%-8% cap rates.

QCOM: Moderate Growth, Average Valuations – Nothing to Get Excited About

By Nicolas Baratte

  • Pretty good Dec-24 quarter (1Q25), ~10% above expectations. Decent Mar-25 (2Q25) guidance, ~5% above expectations. The stock is down after hours, because?
  • FY25, I estimate Mobile revenues up ~10% YoY, Auto ~30%, IoT ~20%. QCOM said that Licensing revenues will be flat. Total revenue growth ~12% YoY, I expect similar for FY26.
  • Conclusion: nothing exciting, management reiterates big non-mobile revenue targets by 2029 (US$22bn) but downside from Apple Modem ending in 2027. In the meantime the stock is properly valued.

[Earnings Review] Shell Rises on Dividend Hike, Strong Shareholder Returns Despite Earnings Miss

By Suhas Reddy

  • Shell’s Q4 revenue fell by 15.8% YoY and its adjusted earnings dropped by 49.9%. However, its revenue beat analyst estimates by 8% but missed EPS projections by 10.8%.  
  • Shell raised its dividend by 4% and announced a USD 3.5 billion share buyback for the current quarter, marking 13 consecutive quarters of at least USD 3 billion in repurchases.
  • Shell achieved USD 3.1 billion in cost reductions by end-2024, surpassing its USD 2–3 billion target a year ahead of schedule. Net debt fell by 10.9% YoY in Q4.

Olin Corporation: Will Epoxy Market Dynamics Help The Company Benefit From Potential EU Antidumping Duties?

By Baptista Research

  • Olin Corporation’s latest financial results present a mixed picture, reflecting both strategic advancements and ongoing challenges.
  • The fourth quarter saw positive developments, such as a sequential 9% sales increase in Chlor Alkali Products and Vinyls (CAPV), facilitated by volume recovery post-Hurricane Beryl and improved pricing.
  • Additionally, cost reductions are underway, with plans to achieve $250 million in savings by 2028, including $20 to $30 million aimed for in 2025.

Evaluating Allakos: Strategic Review, NOL Potential, and Kevin Tang’s Activist Stake Amidst Biopharma Challenges

By Dalius Tauraitis

  • Kevin Tang holds a 10% stake in Allakos, valuing its cash balance and nearly $1 billion in federal NOLs.
  • Allakos estimates $35-$40 million cash by June 2025, with restructuring costs of $34-$38 million.
  • Potential reverse merger could value Allakos at $0.45-$0.5/share, considering NOLs and cash after expenses.

TuHURA Biosciences, Inc. – Initiating an Immune Response

By Zacks Small Cap Research

  • TuHURA is a clinical-stage, oncology-focused biotechnology company ad-vancing innate immune agonists, checkpoint inhibitors & antibody-drug conjugates (ADCs).
  • It offers the IFx platform technology featuring the IFx-2.0 tumoral injection delivery approach for Merkel cell carcinoma (MCC) & the IFx-3.0 intravenous delivery approach for lymphoma.
  • IFx encodes a bacterial protein to be expressed in cancer cells, activating the innate immune system and subsequent cascade that may eliminate the tumor.

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Feb 07
0

Daily Brief India: Bharat Petroleum Corp, Whirlpool of India, Britannia Industries, Aarti Drugs Ltd, BrainBees Solutions, Ramkrishna Forgings , Dorf-Ketal Chemicals Ltd, Euro Pratik Sales Ltd, Housing and Urban Development Corporation Limited, Aarti Industries and more

By | Daily Briefs, India

In today’s briefing:

  • Quiddity Leaderboard NIFTY Mar 25: Final Expectations; Expected DELs Could Underperform Index
  • Whirlpool of India OFS Early Look – Another Large Selldown by Parent
  • NIFTY50 Index Rebalance Preview: Adds Secure; Tight Among the Deletes
  • The Beat Ideas: Aarti Drugs Revival
  • Brainbees Solutions (FirstCry) – US$2bn IPO Lockup Expiry with Most Investors Still in the Money
  • Ramkrishna Forgings Q3 FY25 Earnings: A Mixed Bag with a Promising Outlook
  • Dorf-Ketal Chemicals India Ltd Pre-IPO Tearsheet
  • Euro Pratik Sales Ltd Pre-IPO Tearsheet
  • Hudco’s Tough Time: Lower Capex, PMAY
  • Aarti Industries Limited: Q3 FY25 Update

Quiddity Leaderboard NIFTY Mar 25: Final Expectations; Expected DELs Could Underperform Index

By Janaghan Jeyakumar, CFA

  • NIFTY 50 represents the 50 largest stocks listed in the National Stock Exchange (NSE) of India and the NIFTY Next 50 index tracks the next 50 largest names.
  • In this insight, we are presenting our final expectations for ADDs and DELs for the March 2025 index rebal event.
  • We see two changes for NIFTY 50 and four changes for NIFTY 100. We expect the results to be announced in the next few days.

Whirlpool of India OFS Early Look – Another Large Selldown by Parent

By Akshat Shah

  • Whirlpool Corp (WHR US) is looking to raise about INR 46bn (US$530m) from selling a stake of about 31% in Whirlpool of India Limited (WHIRL).
  • In an announcement released on Jan 30, 2025, the firm mentioned its ultimate parent’s intention to sell down its interest in WHIRL from 51% to 20% by mid-to-late 2025.
  • In this note, we talk about the past deal performance and other deal dynamics.

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

By Brian Freitas

The Beat Ideas: Aarti Drugs Revival

By Sudarshan Bhandari

  • Received US FDA Approval for both Tarapur & Baddi Facility & moving to regulated market.
  • Increase in revenues & margins with the US FDA approvals & Many products are backward integration or import substitution which is expected to boost demand
  • US entry to allow product & bottomline expansion and would also focus on increasing market presence from semi-regulated markets along with regulated markets

Brainbees Solutions (FirstCry) – US$2bn IPO Lockup Expiry with Most Investors Still in the Money

By Sumeet Singh

  • BrainBees Solutions (FIRSTCRY IN) (FirstCry) raised around US$500m in its August 2024 India IPO. The lockup on its pre-IPO investors is set to expire soon.
  • In India, FirstCry sells Mothers’, Babies’ and Kids’ products through its online platform, company-owned modern stores, franchisee-owned modern stores and general trade retail distribution.
  • In this note, we will talk about the lockup dynamics and possible placement.

Ramkrishna Forgings Q3 FY25 Earnings: A Mixed Bag with a Promising Outlook

By Sudarshan Bhandari

  • Ramkrishna Forgings (RMKF IN) reported Q3 FY25 revenue growth of 8% and volume up 13.9%, alongside new capacity expansions and Rs. 697 crore in new orders.
  • These robust results and strategic capacity boosts underscore RKFL’s resilience, positioning it for sustainable growth amid raw material and market headwinds.
  • Investors should see the mixed Q3 performance as a sign of proactive investments that could translate into significant long-term value.

Dorf-Ketal Chemicals India Ltd Pre-IPO Tearsheet

By Rosita Fernandes

  • Dorf-Ketal Chemicals Ltd (998552Z IN) (DKCIL) is looking to raise about US$579m in its upcoming India IPO. The bookrunners for the deal are JM Fin, Citi, HSBC, JPM, MS, Motilal.
  • DKCIL is an R&D with innovation-focused global manufacturer and supplier of specialty chemicals, catering to the hydrocarbons and industrial supply chains.
  • According to the F&S Report, the company is one of the major producers in the development, commercialization, and application of specialty chemicals in India.

Euro Pratik Sales Ltd Pre-IPO Tearsheet

By Rosita Fernandes

  • Euro Pratik Sales Ltd (7778885Z IN) (EPS) is looking to raise about US$100m in its upcoming India IPO. The bookrunners for the deal are Axis, Dam Capital.
  • The company operates in the decorative wall panel and decorative laminates industry as a prominent seller and marketer of Decorative Wall Panels and Decorative Laminates. 
  • According to the Technopak Report, has established itself as one of the largest organized Wall Panel brands, with a market share of 15.87% by revenue.

Hudco’s Tough Time: Lower Capex, PMAY

By Nimish Maheshwari

  • Government capex is revised to Rs. 10.2 lakh crore—8.3% below target—with significant PMAY allocation cuts amid revised funding for affordable housing projects.
  • Lower capex and reduced PMAY funds signal execution challenges in housing, potentially straining Housing and Urban Development Corporation Limited (HUDCO IN)’s growth targets despite its strong loan expansion plans.
  • Short-Term funding cuts create uncertainty, but HUDCO’s strategic focus on low-risk lending and ambitious loan targets suggests a promising long-term outlook.

Aarti Industries Limited: Q3 FY25 Update

By Sudarshan Bhandari

  • Aarti Industries (ARTO IN) reported Q3 FY25 revenue of Rs. 2,305 crores with 14% QoQ growth, robust volume gains, capacity expansions in MMA and nitro-toluene, and ongoing cost optimizations.
  • Strong Q3 performance and capacity boosts bolster AIL’s long-term growth prospects, mitigating pricing pressures and forex challenges while fueling diversification into renewables and chemical recycling.
  • AIL’s strategic investments and diverse product mix signal resilient growth and margin improvements, suggesting a promising long-term outlook despite current short-term forex volatility.

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Feb 07
0

Daily Brief China: Guming Holdings, Sino-Ocean Group and more

By | China, Daily Briefs

In today’s briefing:

  • Guming Holdings (Good Me) IPO Preview
  • Lucror Analytics – Morning Views Asia

Guming Holdings (Good Me) IPO Preview

By Douglas Kim

  • Guming Holdings (1364 HK) (Good Me) is getting ready to complete its IPO on the Hong Kong Exchange in February.
  • At the high end of the IPO price range, the listing will raise about HK$1.58 billion (US$220 million).  
  • Guming is a ready-to-drink beverage company specializing in freshly made tea beverages.

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: Sino-Ocean
  • In the US, the ISM services index declined to 52.8 (54.0 e / 54.0 revised p) in January. This was driven by decreases in the new orders and prices paid components, albeit the employment component edged up to 52.3 (51.3 revised p). Separately, the January (final) S&P services PMI fell to 52.9 (56.8 p), with the composite PMI dropping to 52.7 (55.4 p).
  • Meanwhile, the trade deficit expanded to USD 98.4 bn (USD 96.8 bn e / USD 78.9 bn revised p), the second largest deficit on record. Exports decreased 2.6% m-o-m to USD 267 bn, while imports jumped 3.5% to a record high of USD 365 bn due to import front-loading ahead of expected new tariffs.

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