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Smartkarma Daily Briefs

Jan 05
0

Daily Brief Industrials: Dong Ah Tire Ind Co., Ltd., Eva Airways, Jumppoint and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Initial Thoughts on the DN Solutions IPO
  • Quick Update on Asian Air Cargo Trends: No Signs of Market Tightness in These Numbers
  • Jumppoint bags US$3.5M to streamline logistics for e-commerce in SEA | e27

Initial Thoughts on the DN Solutions IPO

By Douglas Kim

  • DN Solutions is planning to complete its IPO in Korea in 2025. The expected value of DN Solutions is estimated to be about 5 trillion won to 6 trillion won.
  • DN Solutions’ revenue and operating profit increased at CAGR of 19.9% and 62.2%, respectively from 2020 to 2023.
  • Currently, the largest shareholder of DN Solutions is GMT Holdings which has a 90.32% stake. DN Automotive (007340 KS) owns a 100% stake in GMT Holdings.

Quick Update on Asian Air Cargo Trends: No Signs of Market Tightness in These Numbers

By Daniel Hellberg

  • Tracking Asian air cargo trends can uncover investment opportunities & offer read-throughs
  • In November 2024, no clear signs of market tightness in data from Taiwanese, Chinese carriers
  • A quick look at numbers from CX, SIA, LAX also suggests ample available cargo space

Jumppoint bags US$3.5M to streamline logistics for e-commerce in SEA | e27

By e27

  • Hong Kong-based cross-border e-commerce logistics startup Jumppoint has secured an additional US$3.5 million in Series A+ funding, bringing its total funding to US$20 million.
  • The news round was led by returning investor MindWorks Capital, with participation from other investors, including IMM Global, Headline Asia, the Hong Kong Government, Beyond Ventures, Chinachem Group, and Boon Ventures.
  • The funding will be used to scale Jumppoint’s AI-driven logistics platform, expand its regional network, and enhance its service offerings.

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Jan 05
0

Daily Brief Consumer: Sun Art Retail, TSE Tokyo Price Index TOPIX, Tsuruha Holdings and more

By | Consumer, Daily Briefs

In today’s briefing:

  • (Mostly) Asia-Pac M&A: Sun Art Retail, AVJennings, Shandong Hi-Speed New Energy, Boqi, Get Nice
  • Japan Market Attractive for PE Investment Despite Low Profit Growth
  • Last Week in Event SPACE: Tsuruha/Welcia, GAPack, Canvest, HKBN

(Mostly) Asia-Pac M&A: Sun Art Retail, AVJennings, Shandong Hi-Speed New Energy, Boqi, Get Nice

By David Blennerhassett

Japan Market Attractive for PE Investment Despite Low Profit Growth

By Aki Matsumoto

  • The phenomenon of declining numbers of listed shares due to share buybacks and declining numbers of listed companies in US/Europe starting in 1990s began in Japan 30 years later.
  • On TSE, where there are many companies with parent-subsidiary listings and large shareholders like founder families and parent companies, more companies will choose to go private because of listing costs.
  • Private equity investments in Japanese companies will further increase in the future, as it is easier to find investment opportunities in Japan, where stock valuations are relatively low.

Last Week in Event SPACE: Tsuruha/Welcia, GAPack, Canvest, HKBN

By David Blennerhassett

  • Tsuruha (3391 JP) and Welcia (3141 JP) may merge quicker than expected. Meaning a one-year “guess the price” ratio. Expect Tsuruha to gain against Welcia from here.
  • PUSUs exist in Hong Kong. In its bid for GAPack (468 HK), XJF should sound out the SFC to put Bi/Hong on notice. 
  • Canvest Environmental (1381 HK) effectively ticks off another pre-con. This transaction continues to trade too wide to terms. 

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Jan 04
0

Daily Brief Thailand: FreshKet and more

By | Daily Briefs, Thailand

In today’s briefing:

  • Freshket raises US$8M in a funding round led by Thai President Foods, Kliff Capital | e27

Freshket raises US$8M in a funding round led by Thai President Foods, Kliff Capital | e27

By e27

  • Thailand-based Freshket announced that it has raised an additional US$8 million funding round led by led by Thai President Foods or TFMAMA and Kliff Capital with continued support from existing investors, including Openspace and ECG Venture Capital.
  • In a press statement, a TFMAMA spokesperson said that the company hopes to support Freshket through the provision of fresh and quality ingredients for the startup’s operations following this funding round.
  • “We are currently expanding into new markets and customer segments while maintaining our existing customer base.

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Jan 04
0

Daily Brief South Korea: Rainbow Robotics, LG CNS, Orum Therapeutics and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Samsung Group ETF Rebalancing Event to Watch for in June
  • LG CNS: Updated IPO Valuation Analysis
  • Orum Therapeutics Lowers IPO Price Range

Samsung Group ETF Rebalancing Event to Watch for in June

By Sanghyun Park

  • With Samsung finalizing the call option on Rainbow Robotics in February, the FTC will add it to Samsung Group in March, ensuring its inclusion in the ETF by June.
  • With the market cap boost from the call option, Rainbow Robotics is set to easily exceed 2% weight in the ETF by June.
  • The rebalancing from June 2-9 will direct 30% of daily volume into Rainbow Robotics, likely enough to move the needle on price action, especially on the first day.

LG CNS: Updated IPO Valuation Analysis

By Douglas Kim

  • According to our updated valuation analysis of LG CNS, it suggests a base case implied market cap of 7.4 trillion won, representing target price of 76,383 won per share. 
  • Our base case valuation target price of 76,383 won is 23% higher than the high end of the IPO price range. 
  • We lowered our target price by 6%, mainly due to greater political risks arising from the recent cancelled martial law and ongoing impeachment of President Yoon.

Orum Therapeutics Lowers IPO Price Range

By Douglas Kim

  • Orum Therapeutics (475830 KS) has lowered its IPO price range to 24,000 won to 30,000 won.
  • The IPO offering amount will be between 60 billion won to 75 billion won. The expected market cap of the IPO is between 531 billion won to 664 billion won. 
  • Our updated valuation of Orum Therapeutics suggests implied target price of 24,939 won per share, which is 8% lower than the mid-point of the revised down IPO price range. 

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Jan 04
0

Daily Brief Quantitative Analysis: Hong Kong Buybacks Weekly (Jan 3rd): Tencent and more

By | Daily Briefs, Quantitative Analysis

In today’s briefing:

  • Hong Kong Buybacks Weekly (Jan 3rd): Tencent, Anta Sports Products, AIA

Hong Kong Buybacks Weekly (Jan 3rd): Tencent, Anta Sports Products, AIA

By Ke Yan, CFA, FRM

  • We analyze statistics on top repurchases over one week, one month, one quarter and one year periods ended on Jan 3rd based on HKEx daily reports.
  • In the past 7 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), Anta Sports Products (2020 HK), AIA (1299 HK).
  • In the past 30 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), AIA (1299 HK), Anta Sports Products (2020 HK).

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Jan 04
0

Daily Brief United States: Newmarket Corp, Microstrategy Inc Cl A, Crude Oil, Triumph Group, Valvoline , Mojave Energy Systems, Tri Pointe Group, Masimo Corp, Seres Therapeutics, Sonoco Products Co and more

By | Daily Briefs, United States

In today’s briefing:

  • NewMarket Corporation’s Unstoppable Petroleum Additives Profit Surge Exposes Shocking Cost-Cutting Secrets! – Major Drivers
  • SSI’s 2024 Review: Portfolio Underperformance, Event-Driven Strategies, and Lessons from Losses
  • [ETP 2025/01] WTI Rises on Improved Chinese Outlook, Henry Hub Reverses Uptrend
  • Triumph Group’s Solid Cost-Cutting Efforts Skyrocket EBITDA Margins! – Major Drivers
  • Valvoline Inc.: Expansion of Market Share & Franchise Growth As A Key Growth Catalyst! – Major Drivers
  • Earth Venture Capital backs Mojave Energy Systems in US$9.5M Series A funding | e27
  • Tri Pointe Homes: A Strong Liquidity Position Can Fuel Expansion! – Major Drivers
  • Masimo Corporation: Here Are the 6 Most Critical Factors Shaping Its Performance in 2025 & Beyond! – Major Drivers
  • Seres Therapeutics: Will Its Strategic Partnerships & Collaborations Prove to Be a Game-Changing Move?
  • Sonoco Products: The Strategic Acquisition of Eviosys & Other Major Drivers

NewMarket Corporation’s Unstoppable Petroleum Additives Profit Surge Exposes Shocking Cost-Cutting Secrets! – Major Drivers

By Baptista Research

  • NewMarket Corporation reported its financial results for the third quarter of 2024, presenting a mixed performance with noteworthy insights into its operations and strategic initiatives.
  • In terms of financial performance, the company achieved a net income of $132 million, translating to $13.79 per share, compared to $111 million or $11.60 per share in the same period last year.
  • This indicates an improvement in profitability on a year-over-year basis.

SSI’s 2024 Review: Portfolio Underperformance, Event-Driven Strategies, and Lessons from Losses

By Dalius Tauraitis

  • SSI’s Tracking Portfolio ended 2024 with a -1% return, hindered by cash holdings and significant losses in MSTR, BHIL, and BOOM.
  • SSI shared 85 investment ideas in 2024, including 14 Portfolio Ideas, 69 Quick Pitches, and 2 “Why I’m Not Involved” overviews.
  • Portfolio Ideas suffered losses over 50% due to ignored red flags, while Quick Pitches had a 60% win rate.

[ETP 2025/01] WTI Rises on Improved Chinese Outlook, Henry Hub Reverses Uptrend

By Suhas Reddy

  • For the week ending 27/Dec, U.S. crude inventories fell by 1.2m barrels, missing expectations of a 2.4m barrel decrease. Gasoline and distillate stockpiles rose more than expected.
  • U.S. natural gas inventories fell by 116 Bcf for the week ending 27/Dec, missing analyst expectations of a 127 Bcf drawdown. Inventories are 4.7% above the 5-year seasonal average.
  • JP Morgan lowered its 12-month PT for Halliburton and Schlumberger but maintained its “Overweight” ratings. Saudi Aramco revised fuel and natural gas prices for cement production starting from 01/Jan.

Triumph Group’s Solid Cost-Cutting Efforts Skyrocket EBITDA Margins! – Major Drivers

By Baptista Research

  • Triumph Group presented a mix of performance outcomes in its second quarter fiscal 2025 results.
  • The company demonstrated a commendable increase in its aftermarket growth, which surged 13% year-over-year and contributed over 60% to its profit.
  • This was achieved through robust spares and repairs activities within both commercial and military sectors, setting a positive trend amid some broader market challenges.

Valvoline Inc.: Expansion of Market Share & Franchise Growth As A Key Growth Catalyst! – Major Drivers

By Baptista Research

  • Valvoline Inc. announced its fourth-quarter and full fiscal year 2024 earnings, underlining its solid market position in the retail services sector, yet facing specific growth challenges.
  • For fiscal 2024, Valvoline reported a significant 12% increase in system-wide store sales reaching $3.1 billion, along with adjusted EBITDA growth of 17% to $443 million.
  • However, there were concerns as net revenue and same-store sales growth landed just below expectations.

Earth Venture Capital backs Mojave Energy Systems in US$9.5M Series A funding | e27

By e27

  • Earth Venture Capital, a global climate tech firm backing deep-tech startups to decarbonise Emerging Asia, announced its participation in Mojave Energy Systems’ US$9.5 million Series A funding round.
  • The investment, alongside the participation of Fifth Wall, At One Ventures, Myriad Venture Partners, Starshot Capital, and Alumni Ventures Group, raises Mojave’s total funding to US$25.6 million.
  • In the next phase of innovation, Mojave plans to unveil ArctiDry HP, the first air conditioning system to integrate liquid desiccant technology with a reversible heat pump.

Tri Pointe Homes: A Strong Liquidity Position Can Fuel Expansion! – Major Drivers

By Baptista Research

  • Tri Pointe Homes’ (TPH) latest financial results for the third quarter of 2024 present a combination of robust performance metrics and strategic market positioning, alongside noted challenges in certain geographies and market segments.
  • As a residential home builder operating across diverse U.S. markets, Tri Pointe achieved notable gains in home deliveries, revenue growth, and profitability, yet remains vigilant of macroeconomic and regional headwinds impacting future outlook.
  • Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

Masimo Corporation: Here Are the 6 Most Critical Factors Shaping Its Performance in 2025 & Beyond! – Major Drivers

By Baptista Research

  • Masimo Corporation, a global technology company focused on experienced healthcare solutions, recently reported its financial results for the third quarter of 2024.
  • The company’s healthcare segment demonstrated robust performance, with revenues reaching $343 million, showcasing a 12% year-over-year growth.
  • This growth was attributed to increased consumable and service revenues, although partially offset by a decline in capital equipment sales.

Seres Therapeutics: Will Its Strategic Partnerships & Collaborations Prove to Be a Game-Changing Move?

By Baptista Research

  • Seres Therapeutics has outlined significant developments and strategic decisions during its third-quarter 2024 update.
  • The company achieved notable milestones, primarily around its lead clinical candidate, SER-155, and its corporate financial structure, significantly influenced by the sale of its VOWST program to Nestlé Health Science.
  • Seres reported positive data from its Phase Ib clinical trial for SER-155, indicating a potential for reducing bacterial bloodstream infections (BSIs) in patients undergoing allogeneic hematopoietic stem cell transplantation (allo-HSCT).

Sonoco Products: The Strategic Acquisition of Eviosys & Other Major Drivers

By Baptista Research

  • Sonoco Products reported a solid financial performance for the third quarter of 2024, showcasing a resilient operational model amidst challenging external conditions, such as the disruptions caused by Hurricanes Helene and Milton.
  • The company achieved adjusted EBITDA of $281 million, representing a 16.8% margin, and adjusted earnings per share (EPS) of $1.49.
  • Operating cash flow reached $162 million during this period.

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Jan 04
0

Daily Brief India: Reliance Industries and more

By | Daily Briefs, India

In today’s briefing:

  • Steep Discount on Land Acquisition by Reliance Sparks Corporate Governance Debate

Steep Discount on Land Acquisition by Reliance Sparks Corporate Governance Debate

By Nimish Maheshwari

  • Reliance bought 5,286 acres of prime industrial land in Navi Mumbai, which was sold for a surprisingly low INR 2,200 cr whose economic value is around INR 1 Lakh cr.
  • This complex transaction done at a steep discount raises corporate governance issues for other shareholders like Jai Corp owing to valuations, disclosure lapses and minority shareholder rights.
  • We delve into details of the deal structure and what it means for respective companies’s shareholders.

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Jan 04
0

Daily Brief Private Markets: Earth Venture Capital backs Mojave Energy Systems in US$9.5M Series A funding | e27 and more

By | Daily Briefs, Private Markets

In today’s briefing:

  • Earth Venture Capital backs Mojave Energy Systems in US$9.5M Series A funding | e27
  • Freshket raises US$8M in a funding round led by Thai President Foods, Kliff Capital | e27

Earth Venture Capital backs Mojave Energy Systems in US$9.5M Series A funding | e27

By e27

  • Earth Venture Capital, a global climate tech firm backing deep-tech startups to decarbonise Emerging Asia, announced its participation in Mojave Energy Systems’ US$9.5 million Series A funding round.
  • The investment, alongside the participation of Fifth Wall, At One Ventures, Myriad Venture Partners, Starshot Capital, and Alumni Ventures Group, raises Mojave’s total funding to US$25.6 million.
  • In the next phase of innovation, Mojave plans to unveil ArctiDry HP, the first air conditioning system to integrate liquid desiccant technology with a reversible heat pump.

Freshket raises US$8M in a funding round led by Thai President Foods, Kliff Capital | e27

By e27

  • Thailand-based Freshket announced that it has raised an additional US$8 million funding round led by led by Thai President Foods or TFMAMA and Kliff Capital with continued support from existing investors, including Openspace and ECG Venture Capital.
  • In a press statement, a TFMAMA spokesperson said that the company hopes to support Freshket through the provision of fresh and quality ingredients for the startup’s operations following this funding round.
  • “We are currently expanding into new markets and customer segments while maintaining our existing customer base.

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Jan 04
0

Daily Brief ESG: FSA Roadmap Is Realistic and more

By | Daily Briefs, ESG

In today’s briefing:

  • FSA Roadmap Is Realistic, but Progress on Scope 3 Disclosures Will Follow the Revision of Guidelines

FSA Roadmap Is Realistic, but Progress on Scope 3 Disclosures Will Follow the Revision of Guidelines

By Aki Matsumoto

  • An assurance system will be established to ensure the quality of assurance. The assurance provider is expected to be a profession-agnostic system that is not limited to auditing firms.
  • The assurance will be limited to Scope 1 and 2, and only Scope 1 and 2, which most large companies already disclose, will be initially required to be disclosed.
  • Scope 3 disclosures have not progressed at this time, but Scope 3 disclosures are expected to progress after the safe harbor is included and the disclosure guidelines are revised.

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Jan 04
0

Daily Brief Japan: Mazda Motor, TSE Tokyo Price Index TOPIX and more

By | Daily Briefs, Japan

In today’s briefing:

  • Unloved Japan Round Up Jan. 3: Set Up for A Banner Year?
  • FSA Roadmap Is Realistic, but Progress on Scope 3 Disclosures Will Follow the Revision of Guidelines

Unloved Japan Round Up Jan. 3: Set Up for A Banner Year?

By Michael Allen

  • 2025 will start with more attractive turnaround opportunities than we have seen in a long time. 
  • An uptick in TOBs, MBOs and merger discussions makes it suddenly no longer safe to short low-PBR companies indiscriminately.
  • Investors are noticing. More than two-dozen large- and medium-cap stocks with deep discounts to the benchmark began to bounce off well-defined support levels in late December.

FSA Roadmap Is Realistic, but Progress on Scope 3 Disclosures Will Follow the Revision of Guidelines

By Aki Matsumoto

  • An assurance system will be established to ensure the quality of assurance. The assurance provider is expected to be a profession-agnostic system that is not limited to auditing firms.
  • The assurance will be limited to Scope 1 and 2, and only Scope 1 and 2, which most large companies already disclose, will be initially required to be disclosed.
  • Scope 3 disclosures have not progressed at this time, but Scope 3 disclosures are expected to progress after the safe harbor is included and the disclosure guidelines are revised.

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