Smartkarma Daily Briefs

US natural gas market experiencing significant weather-related demand in January, with colder than 10-year normal temperatures
Europe facing tight gas market balances and lower storage levels, requiring increased LNG imports to reach storage targets
Uncertainty around Russian pipeline gas increases to Europe and potential impact of US sanctions on Russian energy sectors present bearish risk factors for gas prices

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

Sonos’ $500 Million Crisis: Why The CEO Had To Go!

Sonos, a renowned name in the premium audio industry, has recently faced one of its most challenging years.
The company, known for its seamless blend of hardware and software, suffered a significant setback due to a disastrous app update that disrupted the user experience for millions.
Released in May 2024, the redesigned app, meant to accelerate innovation, instead turned functional speakers into non-operational devices.

Wells Fargo’s Epic Tech-Driven Revolution: The Surprising Power Move to Slash Costs & Dominate Markets! – Major Drivers

Wells Fargo & Company demonstrated notable progress in its fourth quarter of 2024, underscoring a year marked by strengthening earnings profiles and risk control achievements.
The firm showed both strategic resilience and adaptation in meeting its diverse operational objectives amid evolving market conditions.
Looking at the positives, Wells Fargo expanded its net income and fee-based revenue, achieving an 11% rise in diluted earnings per share compared to the previous year.

The Investmentcase for Gold

By The Commodity Report

The Investmentcase for Gold Some time has passed since I wrote the last time about gold.
Currently, a situation is developing that could become interesting for investors in the shiny metal.
While till this day many market experts have the opinion that the gold price is highly correlated to the US-Dollar as well as the relative trajectory of where yields are headed, I think that gold is primarily driven by liquidity conditions.

U.S. Rig Count Drops to Lowest Since December 2021

By Suhas Reddy

The U.S. oil and gas rig count dropped for the second consecutive week, as it fell by 4 to 580 for the week ending 17/Jan.
For the week ending 10/Jan, U.S. oil production moderately fell to 13.48 m bpd from 13.56m bpd the week prior.
The number of active U.S. oil rigs fell by 2 to 480 and gas rigs dropped by 2 to 98, U.S. producers cut four rigs in North Dakota.

Logan Ridge Finance Corp (LRFC) – Sunday, Oct 20, 2024

By Value Investors Club

LRFC recently sold a large equity investment, leading to higher cash dividends, increased stock price, reduced equity exposure, and a possible takeover announcement
Positive financial implications of asset sale not yet reflected in SEC filings and data sources
Investors anticipate dividend increase and increased awareness of LRFC’s situation with upcoming earnings release in early November, making it a standout in the BDC space for its unique assets and growth potential

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.

Royal Bank of Canada (RBC): Capital Markets Pipeline & Growth Trends Fueling Our Bullishness! – Major Drivers

Royal Bank of Canada (RBC) demonstrated robust performance in its 2024 fourth-quarter results, revealing both strengths and potential challenges in its operational and financial outcomes.
The bank’s reported earnings stood at $4.2 billion, which includes $265 million from its acquisition of HSBC Canada.
Adjusted earnings showed an 18% year-over-year increase to $4.4 billion, driven largely by market appreciation and strong client activities.

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Jan 21

Daily Brief India: Zomato, Yatharth Hospital & Trauma Care Services and more

By Smartkarma Daily Briefs | Daily Briefs, India

In today’s briefing:

Quiddity Leaderboard NIFTY Mar 25: US$1.2bn Collective One-Way Flows but Momentum Is Negative
Yatharth Hospital: Decoding Disclosure Lapses & Red Flags

Quiddity Leaderboard NIFTY Mar 25: US$1.2bn Collective One-Way Flows but Momentum Is Negative

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 take a look at the names leading the race to become ADDs/DELs for these indices in the March 2025 index rebal event.
We see two changes for the NIFTY 50 index and five changes for the NIFTY 100 index.

Yatharth Hospital: Decoding Disclosure Lapses & Red Flags

By Nimish Maheshwari

Yatharth Hospital & Trauma Care Services (YATHARTH IN) successfully completed a QIP, raising Rs. 625 crore which was followed by the stock falling by nearly 26% in the following month.
The company and its subsidiaries has recently been facing a significant challenge with an investigation by the Income Tax Department and the attachment of company assets.
The document released on December 17, 2024 has confirmed the search and seizure operations conducted on October 19, 2023, targeting Yatharth and two of its subsidiaries.

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Jan 21

Daily Brief Japan: Timee Inc, JPY, Sysmex Corp, Nintendo, Japan System Techniques Co, LIFULL, Nikkei 225, Daiichi Sankyo, Mitsubishi UFJ Financial (MUFG), Paycloud Holdings and more

By Smartkarma Daily Briefs | Daily Briefs, Japan

In today’s briefing:

Timee US$280m Lockup Expiry – Scattered List of Financial Investors Coming Unlocked
Global FX: What to expect when you are expecting inauguration
Sysmex Corp (6869 JP): Expansion Plans In Brazil Looks Prospective, Yet Gets Tricky With Margins
Gaming Consoles Part 3: Nintendo – [Business Breakdowns, EP.203]
Japan System Techniques (4323 JP ) – Valuations Continue to Expand…
Lifull (2120 Jp ) – Strategically Transforming the Overseas Segment to Focus on HOME’S Services
EQD | Nikkei Index Options Weekly (January 14 – 17): Volatility Needs a Break from the Range
Daiichi Sankyo (4568 JP): US Approval for Second ADC Drug to Drive Accelerated Growth
Mitsubishi UFJ Financial Group: Capital Strength & Liquidity Make It a Market Powerhouse!
Paycloud Holdings (4015 JP) – A High-Growth Retail Marketing Platform Operator

Timee US$280m Lockup Expiry – Scattered List of Financial Investors Coming Unlocked

Timee Inc (215A JP) listed in Japan on 26th July 2024 after raising US$300m. Its six-month lockup will expire on 21st Jan 2025.
Timee operates an on-demand staffing platform that connects part-time jobseekers with businesses in Japan.
In this note, we will talk about the lock-up dynamics and updates since our last note.

Global FX: What to expect when you are expecting inauguration

Discussion on potential tariffs and their impact on global markets, with a focus on Canada, China, and Mexico
Analysis of the upcoming BOJ meeting and its potential impact on the Japanese yen
Update on UK’s economic challenges, including concerns about fiscal math and potential trade war implications

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

Sysmex Corp (6869 JP): Expansion Plans In Brazil Looks Prospective, Yet Gets Tricky With Margins

Sysmex America, Inc., a subsidiary of Sysmex Corp, recently announced plans to build a new reagent manufacturing, distribution, and service center in Brazil.
In FY24, sales in the Americas region for Sysmex increased 12% YoY to ¥118.7B. Reagents drove the revenue growing 16%.
Operating margins in the Americas have largely trodden on a volatile trajectory over the last few years hovering in the range of 4-6%, lowest among all the geographies.

Gaming Consoles Part 3: Nintendo – [Business Breakdowns, EP.203]

By Business Breakdowns

Finley translates unstructured credit agreements into code to streamline credit management processes
Borrowers like RAMP and ANOVA rely on Finley for tracking and automation of reporting requirements
Lenders like Trinity Capital Valley bank use Finley as a command center for debt capital data and analysis across transactions.

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

Japan System Techniques (4323 JP ) – Valuations Continue to Expand…

Japan System Techniques (hereafter, the Company) announced its H1 Key consolidated figures net sales of JPY 13,260 mn (+9.3% YoY), operating profit of JPY 1,045 mn (+4.2% YoY), ordinary profit of JPY 1,077 mn (+6.8% YoY), and profit attributable to owners o parent (hereafter, net profit) of JPY 671 mn (+3.2% YoY).
Higher sales and profits in the DX&SI business and Package business contributed in H1 earnings growth.
For FY2025/3, the Company forecasts: net sales of JPY 28,570 mn (+9.1% YoY), operating profit of JPY 3,150 mn (+12.9% YoY), ordinary profit of JPY 3,200 mn (+11.8% YoY), and net profit of JPY 2,300 mn (+10.2%).

Lifull (2120 Jp ) – Strategically Transforming the Overseas Segment to Focus on HOME’S Services

LIFULL Co., Ltd. (hereafter, the Company) operates one of Japan’s largest real estate and housing information sites, LIFULL HOME’S, which works with real estate companies across Japan to provide listings for rental and for-sale properties.
Emphasizing a user-first approach, it not only offers property information but also supports users’ decision making through features such as information on living conditions by area, user reviews, and AI-driven recommendations.
Beyond real estate, the Company has expanded into new businesses, including LIFULL Kaigo, a matching platform for senior living facilities, and LIFULL Regional Revitalization, to meet a broad range of user needs.

EQD | Nikkei Index Options Weekly (January 14 – 17): Volatility Needs a Break from the Range

Nikkei has spent 55 trading days with 1M historic vol less than 1M implied vol, averaging about 4 points less.
The trading range since October looks similar to the trading range the market went through from May to July with similar volatility characteristics.
Big move on Monday didn’t spark volatility with market settling into a very narrow range to finish the week down 1.89%.

Daiichi Sankyo (4568 JP): US Approval for Second ADC Drug to Drive Accelerated Growth

Daiichi Sankyo (4568 JP) has received FDA approval for Datroway for the second-line treatment of unresectable or metastatic hormone receptor (HR) positive, HER2 negative breast cancer.
Last month, Datroway got approval in Japan. Regulatory submissions for the drug are under review in the EU, China, and other regions. The drug is undergoing trial for other indications.
AstraZeneca’s proven commercialization capability for Enhertu enhances conviction on the commercialization prospect of Datroway too. AstraZeneca pegged peak year revenue of Datroway at more than $5B (similar level to Enhertu).

Mitsubishi UFJ Financial Group: Capital Strength & Liquidity Make It a Market Powerhouse!

Mitsubishi UFJ Financial Group, MUFG, reported a record-high net profit of JPY 1,258.1 billion for the first half of FY 2024, marking a 46% increase compared to the previous year.
This achievement represents an 83% progression towards its FY 2024 profit target of JPY 1.5 trillion.
The positive financial results were largely attributable to increased profitability in customer segments and substantial net gains from the sale of equity holdings.

Paycloud Holdings (4015 JP) – A High-Growth Retail Marketing Platform Operator

Paycloud Holdings Inc. (hereafter, “the Company”) primarily serves major retail and restaurant chains, as well as consumer-related businesses, through its three main businesses: 1) cashless service, 2) digital signage-related, and 3) IT solutions.
By integrating DX solutions across these three businesses, the Company pursues a retail marketing platform strategy focused on supporting to strengthen consumer touchpoints both inside and outside of retail stores.
It is establishing itself as a leading domestic player with its Dokuji Pay (branded currency payment + marketing) service, where clients act as issuers, and delivering end-to-end digital signage-related solutions.

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Jan 21

Daily Brief China: Contemporary Amperex Technology (CATL), China Traditional Chinese Medicine, Hang Seng Index, China Vanke and more

By Smartkarma Daily Briefs | China, Daily Briefs

In today’s briefing:

CATL (300750 CH): Index Inclusion Post H-Share Listing
China TCM (570.HK) – About the Profit Warning and the Valuation Outlook
EQD | Hong Kong Single Stock Options Weekly (January 13 – 17): Stocks at Inflection Point.
CATL A/H Listing – Early Look – US$5bn Could Be Hong Kong’s Largest This Year
EQD | Hong Kong Index Options Weekly (HSI and HSCEI January 13-17): Long Vol Gets a Caution Flag
Lucror Analytics – Morning Views Asia

CATL (300750 CH): Index Inclusion Post H-Share Listing

Contemporary Amperex Technology (CATL) (300750 CH) has announced plans for an H-share listing with media reports indicating a raise of at least US$5bn. Shareholders have approved the issuance.
CATL (300750 CH) was designated as a Chinese Military Company earlier this year by the U.S. Department of Defense but is still not on the NS-CMIC list.
The CATL (300750 CH) H-shares should get Fast Entry to the global indices and iShares China Large-Cap (FXI US) ETF. Inclusion in the HSCEI and HSI will take longer.

China TCM (570.HK) – About the Profit Warning and the Valuation Outlook

By Xinyao (Criss) Wang

The sharp performance decline of China TCM in 2024 is actually in line with our expectation. The current valuation has not yet reached its lowest point.
China TCM can still achieve an average annual profit of RMB1 billion in the future. Together with the new management, we expect the Company to come out of the trough.
Instead of betting on privatization again, it’s better to focus more on whether China TCM’s fundamentals would improve, which is the key factor that can support a sustainable valuation rebound.

EQD | Hong Kong Single Stock Options Weekly (January 13 – 17): Stocks at Inflection Point.

Familiar theme across a lot of names with prices either back to the lows of range over the last 2 months or having given back all of the stimulus gains.
Call volumes back to normal levels making up 57% of all single-stock trading. High volumes for Tencent did not repeat this weak as Tencent trading settled back to normal levels.
Materials were the strongest sector with the median stock rising just under 6%.

CATL A/H Listing – Early Look – US$5bn Could Be Hong Kong’s Largest This Year

By Sumeet Singh

Contemporary Amperex Technology (CATL) (300750 CH), one of the world’s largest battery solutions providers, aims to raise around US$5bn in its H-share listing.
CATL is the global leader in new energy vehicle battery solutions, in China and globally, as per SNE Research. Its A-shares have been listed since 2018.
In this note, we look at its past performance and other deal dynamics that might impact the listing.

EQD | Hong Kong Index Options Weekly (HSI and HSCEI January 13-17): Long Vol Gets a Caution Flag

Abrupt change in course for HSI which bottomed on Monday and moved higher in a straight line the rest of the week. Price action was aided by stabilization in Tencent.
Implied vols were softer on the week and have a fairly large spread to historic vols. Caution warranted for long vol positions as this can persist with holidays dead ahead.
Call volumes have rebounded to normal levels with the strong price action.

Lucror Analytics – Morning Views Asia

By Leonard Law, CFA

In today’s Morning Views publication we comment on developments of the following high yield issuers: China Vanke, Reliance Industries, Greenko Energy
In the US, industrial production came in above estimates at 0.9% m-o-m in December (0.3% e / 0.2% revised p), supported by higher civilian aircraft production after the Boeing strike was resolved. Separately, housing starts surged 15.8% m-o-m (3.0% e / -3.7% revised p) to 1.5 mn units in December.
Meanwhile, building permits declined 0.7% m-o-m (-2.2% e / 5.2% p) to 1.48 mn in the same month.

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Jan 21

Most Read: Shift Inc, ZTO Express Cayman , Greatview Aseptic Packaging, J&T Global Express , Indian Hotels, Millennium & Copthorne Hotels Nz, SK Inc, Contemporary Amperex Technology (CATL), Timee Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

SHIFT (3697) The Next – Potential Big Index Add
ZTO Express (2057 HK): On Track for Double (Maybe Triple) Index Inclusion
GAPack (468 HK): IFA Says “Reject”. But Mengniu Selling Down
J&T Global Express (1519 HK): Global Index Inclusion Coming Up
GA Pack (468 HK): Shandong Xinjufeng’s Offer on the Cusp of Being Declared Unconditional
NIFTY NEXT50 Index Rebalance Preview: 7 Potential Changes in March
Millennium & Copthorne Hotels (MCK NZ): City Dev’s Privatisation Offer
SK Stocks’ Main Narrative: SK Telecom Exit & SK Inc Eyeing SK Square
CATL (300750 CH): Index Inclusion Post H-Share Listing
Timee US$280m Lockup Expiry – Scattered List of Financial Investors Coming Unlocked

SHIFT (3697) The Next – Potential Big Index Add

By Travis Lundy

Shift Inc (3697 JP) is a high-growth stock in the software services, testing, consulting, development business. They have a big specialist TAM ahead of them.
Revenue is up 50-fold in 10 years. OP is up 85-fold in that period. Revenue is guided +17.5% in the year to Aug 2025. OP is guided +28%.
There is an event coming up shortly which could trigger an imminent index inclusion. It’s worth a look.

ZTO Express (2057 HK): On Track for Double (Maybe Triple) Index Inclusion

With improved liquidity, ZTO Express Cayman (2057 HK) could be added to the HSCEI INDEX early March and then to a global index a couple of weeks later.
ZTO Express Cayman (2057 HK) is a lower probability inclusion to the Hang Seng Index (HSI INDEX) given the index committee discretion. Inclusion would further increase the impact.
The stock has had a big drawdown recently and the potential index inclusion and passive demand provide a low-risk entry point into the stock, especially hedged with its peers.

GAPack (468 HK): IFA Says “Reject”. But Mengniu Selling Down

By David Blennerhassett

Quite a lot of new news to digest – GAPack (468 HK)‘s IFA, not altogether surprisingly, concluded that shareholders should not accept the Offer – in bold, red caps.
But more surprisingly, is the disclosure announcement that China Mengniu Dairy Co (2319 HK) has reduced its stake below 5%.
Evidently Mengniu is keeping its options open to tender – or not – and not have to make public disclosures. Keep an eye out on CCASS movements.

J&T Global Express (1519 HK): Global Index Inclusion Coming Up

J&T Global Express (1519 HK) listed in October 2023 and was added to one global index in June 2024 and to the HSCEI INDEX in September 2024.
J&T Global Express (1519 HK) could be added to a global index in February and there will be a big passive buying impact. The company is also buying back stock.
J&T Global Express (1519 HK) has underperformed its peers over the past year and the index inclusion could help in closing some of that gap.

GA Pack (468 HK): Shandong Xinjufeng’s Offer on the Cusp of Being Declared Unconditional

By Arun George

Greatview Aseptic Packaging (468 HK)’s offer from Shandong Xinjufeng Technology Packaging (301296 CH) is HK$2.65 with a 50% minimum acceptance condition. The first closing date is 21 January.
The Board has recommended that shareholders not accept. However, based on CCASS data, including acceptances, Shandong Xinjufeng’s shareholding was 46.41% of outstanding shares as of 17 January.
Absent an unlikely competing offer, the offer is on the cusp of being declared unconditional. At the last close and 4 February payment, the gross/annualized spread is 3.1%/128%.

NIFTY NEXT50 Index Rebalance Preview: 7 Potential Changes in March

With 10 trading days left in the review period, there could be 7 changes (including 2 migrations) for the NSE Nifty Next 50 Index (NIFTYJR INDEX) in March.
Estimated one-way turnover is 15.9% resulting in a one-way trade of INR 52bn (US$600m). All forecast changes, bar one, have over 1.5x ADV to trade from passive trackers.
All the forecast deletes are F&O members while two adds are not. NSE Indices could revisit the index membership criteria especially given the launch of futures on the index.

Millennium & Copthorne Hotels (MCK NZ): City Dev’s Privatisation Offer

By David Blennerhassett

Millennium & Copthorne Hotels (MCK NZ) (MCK), a Kiwi hotel chain, has announced that City Developments (CIT SP), its major shareholder, has made an Offer for shares not held.
City Dev is offering NZ$2.25/share, a 25% premium to last close. City holds 75.86% and the offer is conditional on a 90% holding, including shares currently held.
Reg approvals include OIA, which should be rubber-stamped. Very illiquid company.

SK Stocks’ Main Narrative: SK Telecom Exit & SK Inc Eyeing SK Square

By Sanghyun Park

SK Inc plans to use SK Hynix as a dividend machine, boosting payouts to ₩3 trillion, and if it absorbs SK Square, it could pocket ₩600 billion—doubling SK Telecom’s dividends.
SK Inc will likely use ₩5 trillion from the SK Telecom deal for a tender offer, boosting its stake in SK Square to 60-70% before merging to minimize dilution.
The SK Telecom deal and potential SK Square tender offer could be the main narrative driving SK Group stocks this year, making SK Square a key momentum play.

CATL (300750 CH): Index Inclusion Post H-Share Listing

Contemporary Amperex Technology (CATL) (300750 CH) has announced plans for an H-share listing with media reports indicating a raise of at least US$5bn. Shareholders have approved the issuance.
CATL (300750 CH) was designated as a Chinese Military Company earlier this year by the U.S. Department of Defense but is still not on the NS-CMIC list.
The CATL (300750 CH) H-shares should get Fast Entry to the global indices and iShares China Large-Cap (FXI US) ETF. Inclusion in the HSCEI and HSI will take longer.

Timee US$280m Lockup Expiry – Scattered List of Financial Investors Coming Unlocked

Timee Inc (215A JP) listed in Japan on 26th July 2024 after raising US$300m. Its six-month lockup will expire on 21st Jan 2025.
Timee operates an on-demand staffing platform that connects part-time jobseekers with businesses in Japan.
In this note, we will talk about the lock-up dynamics and updates since our last note.

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Jan 21

Daily Brief Industrials: Contemporary Amperex Technology (CATL), Timee Inc, T’Way Air, Keppel Corp, Ebusco Holding NV, Paycloud Holdings and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

CATL (300750 CH): Index Inclusion Post H-Share Listing
Timee US$280m Lockup Expiry – Scattered List of Financial Investors Coming Unlocked
A Hostile M&A Fight for T’Way Air
Keppel Ltd: Part V – Transforming into a Global Asset Manager
CATL A/H Listing – Early Look – US$5bn Could Be Hong Kong’s Largest This Year
What’s News in Amsterdam – 20 January (KPN | InPost | Ebusco | PostNL)
Paycloud Holdings (4015 JP) – A High-Growth Retail Marketing Platform Operator

CATL (300750 CH): Index Inclusion Post H-Share Listing

Contemporary Amperex Technology (CATL) (300750 CH) has announced plans for an H-share listing with media reports indicating a raise of at least US$5bn. Shareholders have approved the issuance.
CATL (300750 CH) was designated as a Chinese Military Company earlier this year by the U.S. Department of Defense but is still not on the NS-CMIC list.
The CATL (300750 CH) H-shares should get Fast Entry to the global indices and iShares China Large-Cap (FXI US) ETF. Inclusion in the HSCEI and HSI will take longer.

Timee US$280m Lockup Expiry – Scattered List of Financial Investors Coming Unlocked

Timee Inc (215A JP) listed in Japan on 26th July 2024 after raising US$300m. Its six-month lockup will expire on 21st Jan 2025.
Timee operates an on-demand staffing platform that connects part-time jobseekers with businesses in Japan.
In this note, we will talk about the lock-up dynamics and updates since our last note.

A Hostile M&A Fight for T’Way Air

By Douglas Kim

An M&A fight for T’Way Air has officially erupted as Daemyung Sono Group sent a letter to the current management requesting several management improvement measures including resignation of existing management.
Currently, T’Way Air’s largest shareholders are T’Way Holdings and Yelimdang which combined have 30.07% stake in T’Way Air. Daemyung Sono is the second largest shareholder with a 26.77% stake.
From Daemyung Sono Chairman Seo Jun-Hyeok perspective, entering the aviation industry is attractive because it can create synergy with existing hotels and resort businesses.

Keppel Ltd: Part V – Transforming into a Global Asset Manager

By Tan Yee Peng

Keppel’s Vision 2030, announced in May 2020, envisages that it would become a global asset manager and operator, with Funds Under Management (“FUM”) of S$200bn.
In this report we are focusing on Keppel’s private funds, which account for 70% of its current FUM.
Based on Keppel’s publicly released materials, Keppel’s strategy to reach their goal is separated into 3 key components.

CATL A/H Listing – Early Look – US$5bn Could Be Hong Kong’s Largest This Year

By Sumeet Singh

Contemporary Amperex Technology (CATL) (300750 CH), one of the world’s largest battery solutions providers, aims to raise around US$5bn in its H-share listing.
CATL is the global leader in new energy vehicle battery solutions, in China and globally, as per SNE Research. Its A-shares have been listed since 2018.
In this note, we look at its past performance and other deal dynamics that might impact the listing.

What’s News in Amsterdam – 20 January (KPN | InPost | Ebusco | PostNL)

By The IDEA!

In this edition: • KPN | ACM: stricter supervision on information obligations for telecom companies • InPost | plans to invest GBP 600m in the UK between 2025 and 2029 • Ebusco | auctioning part of its inventory • PostNL | FY24 result falls short of guidance; mainly because of Mail

Paycloud Holdings (4015 JP) – A High-Growth Retail Marketing Platform Operator

Paycloud Holdings Inc. (hereafter, “the Company”) primarily serves major retail and restaurant chains, as well as consumer-related businesses, through its three main businesses: 1) cashless service, 2) digital signage-related, and 3) IT solutions.
By integrating DX solutions across these three businesses, the Company pursues a retail marketing platform strategy focused on supporting to strengthen consumer touchpoints both inside and outside of retail stores.
It is establishing itself as a leading domestic player with its Dokuji Pay (branded currency payment + marketing) service, where clients act as issuers, and delivering end-to-end digital signage-related solutions.

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Jan 21

Daily Brief Energy/Materials: Hang Seng Index, Natural Gas, Crude Oil, Gold, SGX Rubber Future TSR20, Criterium Energy, Montero Mining and Exploration and more

By Smartkarma Daily Briefs | Daily Briefs, Energy & Materials Sector

In today’s briefing:

EQD | Hong Kong Single Stock Options Weekly (January 13 – 17): Stocks at Inflection Point.
Global Commodities: A Bitter Cold US Natural Gas Market Ramps up LNG Supply
U.S. Rig Count Drops to Lowest Since December 2021
The Investmentcase for Gold
Gloves Power Sri Lankan Rubber Products Export Growth
Criterium Energy Ltd: Onshore Gas Development Takes Centre Stage with Potentially Much Lower Capex
Montero Mining

EQD | Hong Kong Single Stock Options Weekly (January 13 – 17): Stocks at Inflection Point.

Familiar theme across a lot of names with prices either back to the lows of range over the last 2 months or having given back all of the stimulus gains.
Call volumes back to normal levels making up 57% of all single-stock trading. High volumes for Tencent did not repeat this weak as Tencent trading settled back to normal levels.
Materials were the strongest sector with the median stock rising just under 6%.

Global Commodities: A Bitter Cold US Natural Gas Market Ramps up LNG Supply

By Triple S Special Situations Investing

US natural gas market experiencing significant weather-related demand in January, with colder than 10-year normal temperatures
Europe facing tight gas market balances and lower storage levels, requiring increased LNG imports to reach storage targets
Uncertainty around Russian pipeline gas increases to Europe and potential impact of US sanctions on Russian energy sectors present bearish risk factors for gas prices

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

U.S. Rig Count Drops to Lowest Since December 2021

By Suhas Reddy

The U.S. oil and gas rig count dropped for the second consecutive week, as it fell by 4 to 580 for the week ending 17/Jan.
For the week ending 10/Jan, U.S. oil production moderately fell to 13.48 m bpd from 13.56m bpd the week prior.
The number of active U.S. oil rigs fell by 2 to 480 and gas rigs dropped by 2 to 98, U.S. producers cut four rigs in North Dakota.

The Investmentcase for Gold

By The Commodity Report

The Investmentcase for Gold Some time has passed since I wrote the last time about gold.
Currently, a situation is developing that could become interesting for investors in the shiny metal.
While till this day many market experts have the opinion that the gold price is highly correlated to the US-Dollar as well as the relative trajectory of where yields are headed, I think that gold is primarily driven by liquidity conditions.

Gloves Power Sri Lankan Rubber Products Export Growth

By Vinod Nedumudy

Exports go up in Oct but slips in Nov over dismal tire show
EDB focuses on auto component exports strengthening
Exporters, manufacturers visit Thailand for updates and avenues

Criterium Energy Ltd: Onshore Gas Development Takes Centre Stage with Potentially Much Lower Capex

By Auctus Advisors

4Q24 production was 957 bbld (880 bbl/d in 3Q24).
January’s production so far is 1,020 bbl/d.
This excludes the impact of the last four workovers of the 2024 programme.

Montero Mining

Montero Mining (TSX-V: MON) recently signed a $27 million settlement agreement with Tanzania over the expropriation of its Wigu Hill rare earth project.
As someone who’s been an early investor in Montero along with similar cases like Indiana Resources and Winshear Gold (the “Tanzania Triple Play”), I’ve seen firsthand how these situations can play out, and Montero’s setup looks particularly interesting right now.
Idea Hive and Jeremy Raper have done a great breakdown of this on their various channels, and I agree with their take—this stock has a lot going for it with minimal downside risk at the moment given the 31 cent trading price and could present an attractive IRR (but not a huge absolute return).

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Jan 21

Daily Brief Industrials: Contemporary Amperex Technology (CATL), Timee Inc, T’Way Air, Keppel Corp, Ebusco Holding NV, Paycloud Holdings and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

CATL (300750 CH): Index Inclusion Post H-Share Listing
Timee US$280m Lockup Expiry – Scattered List of Financial Investors Coming Unlocked
A Hostile M&A Fight for T’Way Air
Keppel Ltd: Part V – Transforming into a Global Asset Manager
CATL A/H Listing – Early Look – US$5bn Could Be Hong Kong’s Largest This Year
What’s News in Amsterdam – 20 January (KPN | InPost | Ebusco | PostNL)
Paycloud Holdings (4015 JP) – A High-Growth Retail Marketing Platform Operator

CATL (300750 CH): Index Inclusion Post H-Share Listing

Contemporary Amperex Technology (CATL) (300750 CH) has announced plans for an H-share listing with media reports indicating a raise of at least US$5bn. Shareholders have approved the issuance.
CATL (300750 CH) was designated as a Chinese Military Company earlier this year by the U.S. Department of Defense but is still not on the NS-CMIC list.
The CATL (300750 CH) H-shares should get Fast Entry to the global indices and iShares China Large-Cap (FXI US) ETF. Inclusion in the HSCEI and HSI will take longer.

Timee US$280m Lockup Expiry – Scattered List of Financial Investors Coming Unlocked

Timee Inc (215A JP) listed in Japan on 26th July 2024 after raising US$300m. Its six-month lockup will expire on 21st Jan 2025.
Timee operates an on-demand staffing platform that connects part-time jobseekers with businesses in Japan.
In this note, we will talk about the lock-up dynamics and updates since our last note.

A Hostile M&A Fight for T’Way Air

By Douglas Kim

An M&A fight for T’Way Air has officially erupted as Daemyung Sono Group sent a letter to the current management requesting several management improvement measures including resignation of existing management.
Currently, T’Way Air’s largest shareholders are T’Way Holdings and Yelimdang which combined have 30.07% stake in T’Way Air. Daemyung Sono is the second largest shareholder with a 26.77% stake.
From Daemyung Sono Chairman Seo Jun-Hyeok perspective, entering the aviation industry is attractive because it can create synergy with existing hotels and resort businesses.

Keppel Ltd: Part V – Transforming into a Global Asset Manager

By Tan Yee Peng

Keppel’s Vision 2030, announced in May 2020, envisages that it would become a global asset manager and operator, with Funds Under Management (“FUM”) of S$200bn.
In this report we are focusing on Keppel’s private funds, which account for 70% of its current FUM.
Based on Keppel’s publicly released materials, Keppel’s strategy to reach their goal is separated into 3 key components.

CATL A/H Listing – Early Look – US$5bn Could Be Hong Kong’s Largest This Year

By Sumeet Singh

Contemporary Amperex Technology (CATL) (300750 CH), one of the world’s largest battery solutions providers, aims to raise around US$5bn in its H-share listing.
CATL is the global leader in new energy vehicle battery solutions, in China and globally, as per SNE Research. Its A-shares have been listed since 2018.
In this note, we look at its past performance and other deal dynamics that might impact the listing.

What’s News in Amsterdam – 20 January (KPN | InPost | Ebusco | PostNL)

By The IDEA!

In this edition: • KPN | ACM: stricter supervision on information obligations for telecom companies • InPost | plans to invest GBP 600m in the UK between 2025 and 2029 • Ebusco | auctioning part of its inventory • PostNL | FY24 result falls short of guidance; mainly because of Mail

Paycloud Holdings (4015 JP) – A High-Growth Retail Marketing Platform Operator

Paycloud Holdings Inc. (hereafter, “the Company”) primarily serves major retail and restaurant chains, as well as consumer-related businesses, through its three main businesses: 1) cashless service, 2) digital signage-related, and 3) IT solutions.
By integrating DX solutions across these three businesses, the Company pursues a retail marketing platform strategy focused on supporting to strengthen consumer touchpoints both inside and outside of retail stores.
It is establishing itself as a leading domestic player with its Dokuji Pay (branded currency payment + marketing) service, where clients act as issuers, and delivering end-to-end digital signage-related solutions.

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Jan 21

Daily Brief Financials: JPY, Krungthai Card, HSBC Holdings, Wells Fargo & Co, Nikkei 225, Korea Stock Exchange Kospi Index, Mitsubishi UFJ Financial (MUFG), China Vanke , Royal Bank Of Canada, Toronto Dominion Bank and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

Global FX: What to expect when you are expecting inauguration
KTC – Stresses in Thailand Mass Market Credit Cards, Clear in BOT Debt Relief Measures
HSBC Holdings
Wells Fargo’s Epic Tech-Driven Revolution: The Surprising Power Move to Slash Costs & Dominate Markets! – Major Drivers
EQD | Nikkei Index Options Weekly (January 14 – 17): Volatility Needs a Break from the Range
EQD | Kospi Index Options Weekly (January 13 – 17): Heavy Call Volume on Thursday’s Gain.
Mitsubishi UFJ Financial Group: Capital Strength & Liquidity Make It a Market Powerhouse!
Lucror Analytics – Morning Views Asia
Royal Bank of Canada (RBC): Capital Markets Pipeline & Growth Trends Fueling Our Bullishness! – Major Drivers
Toronto-Dominion’s Financial Fortress: U.S. Expansion & Canadian Dominance Can Shape Its Stock Future

Global FX: What to expect when you are expecting inauguration

Discussion on potential tariffs and their impact on global markets, with a focus on Canada, China, and Mexico
Analysis of the upcoming BOJ meeting and its potential impact on the Japanese yen
Update on UK’s economic challenges, including concerns about fiscal math and potential trade war implications

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

KTC – Stresses in Thailand Mass Market Credit Cards, Clear in BOT Debt Relief Measures

By Daniel Tabbush

KTC has just released its 4Q24 results and presentation, with a stand out diagram on BOT debt relief measures
With the several measures in place by the BOT, including lowering minimum card payment, lengthening loan term and lowering rate, there are clear stresses.
ROA is under pressure, and part of this will be due to rising credit costs, which are up from 470bps to 610bps from FY22 to FY24

HSBC Holdings

HSBC Holdings plc reported a solid financial performance for the third quarter of 2024, reflecting the effectiveness of its ongoing strategic initiatives.
Key points from the earnings call highlight the firm’s continued growth, strategic restructuring, and some external influences, creating a nuanced outlook for potential investors.
On the financial front, HSBC posted a profit before tax of $8.5 billion, marking an 11% increase compared to the same period last year, on a constant currency basis.

Wells Fargo’s Epic Tech-Driven Revolution: The Surprising Power Move to Slash Costs & Dominate Markets! – Major Drivers

Wells Fargo & Company demonstrated notable progress in its fourth quarter of 2024, underscoring a year marked by strengthening earnings profiles and risk control achievements.
The firm showed both strategic resilience and adaptation in meeting its diverse operational objectives amid evolving market conditions.
Looking at the positives, Wells Fargo expanded its net income and fee-based revenue, achieving an 11% rise in diluted earnings per share compared to the previous year.

EQD | Nikkei Index Options Weekly (January 14 – 17): Volatility Needs a Break from the Range

Nikkei has spent 55 trading days with 1M historic vol less than 1M implied vol, averaging about 4 points less.
The trading range since October looks similar to the trading range the market went through from May to July with similar volatility characteristics.
Big move on Monday didn’t spark volatility with market settling into a very narrow range to finish the week down 1.89%.

EQD | Kospi Index Options Weekly (January 13 – 17): Heavy Call Volume on Thursday’s Gain.

Kospi rebounds from weak performance at the start the week to finish essentially unchanged.
1M implied vol came off 2.3 points and is now at the 22nd percentile over the past year.
Thursday’s 1.44% gain saw overwhelming Call activity with 3.6 Calls trading for every Put.

Mitsubishi UFJ Financial Group: Capital Strength & Liquidity Make It a Market Powerhouse!

Mitsubishi UFJ Financial Group, MUFG, reported a record-high net profit of JPY 1,258.1 billion for the first half of FY 2024, marking a 46% increase compared to the previous year.
This achievement represents an 83% progression towards its FY 2024 profit target of JPY 1.5 trillion.
The positive financial results were largely attributable to increased profitability in customer segments and substantial net gains from the sale of equity holdings.

Lucror Analytics – Morning Views Asia

By Leonard Law, CFA

In today’s Morning Views publication we comment on developments of the following high yield issuers: China Vanke, Reliance Industries, Greenko Energy
In the US, industrial production came in above estimates at 0.9% m-o-m in December (0.3% e / 0.2% revised p), supported by higher civilian aircraft production after the Boeing strike was resolved. Separately, housing starts surged 15.8% m-o-m (3.0% e / -3.7% revised p) to 1.5 mn units in December.
Meanwhile, building permits declined 0.7% m-o-m (-2.2% e / 5.2% p) to 1.48 mn in the same month.

Royal Bank of Canada (RBC): Capital Markets Pipeline & Growth Trends Fueling Our Bullishness! – Major Drivers

Royal Bank of Canada (RBC) demonstrated robust performance in its 2024 fourth-quarter results, revealing both strengths and potential challenges in its operational and financial outcomes.
The bank’s reported earnings stood at $4.2 billion, which includes $265 million from its acquisition of HSBC Canada.
Adjusted earnings showed an 18% year-over-year increase to $4.4 billion, driven largely by market appreciation and strong client activities.

Toronto-Dominion’s Financial Fortress: U.S. Expansion & Canadian Dominance Can Shape Its Stock Future

Toronto-Dominion Bank Group’s Q4 2024 financial performance presents a mix of positive developments and notable challenges.
The bank reported a quarter with total earnings of $3.2 billion and earnings per share (EPS) of $1.72, both metrics reflecting a year-over-year decline of 8% and 5% respectively.
Notably, the bank’s revenue grew by 12% year-over-year, underscored by a strong performance in market-related businesses and Canadian volume growth.

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Jan 21

Daily Brief Health Care: China Traditional Chinese Medicine, Yatharth Hospital & Trauma Care Services, Sysmex Corp, Daiichi Sankyo and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

China TCM (570.HK) – About the Profit Warning and the Valuation Outlook
Yatharth Hospital: Decoding Disclosure Lapses & Red Flags
Sysmex Corp (6869 JP): Expansion Plans In Brazil Looks Prospective, Yet Gets Tricky With Margins
Daiichi Sankyo (4568 JP): US Approval for Second ADC Drug to Drive Accelerated Growth

China TCM (570.HK) – About the Profit Warning and the Valuation Outlook

By Xinyao (Criss) Wang

The sharp performance decline of China TCM in 2024 is actually in line with our expectation. The current valuation has not yet reached its lowest point.
China TCM can still achieve an average annual profit of RMB1 billion in the future. Together with the new management, we expect the Company to come out of the trough.
Instead of betting on privatization again, it’s better to focus more on whether China TCM’s fundamentals would improve, which is the key factor that can support a sustainable valuation rebound.

Yatharth Hospital: Decoding Disclosure Lapses & Red Flags

By Nimish Maheshwari

Yatharth Hospital & Trauma Care Services (YATHARTH IN) successfully completed a QIP, raising Rs. 625 crore which was followed by the stock falling by nearly 26% in the following month.
The company and its subsidiaries has recently been facing a significant challenge with an investigation by the Income Tax Department and the attachment of company assets.
The document released on December 17, 2024 has confirmed the search and seizure operations conducted on October 19, 2023, targeting Yatharth and two of its subsidiaries.

Sysmex Corp (6869 JP): Expansion Plans In Brazil Looks Prospective, Yet Gets Tricky With Margins

Sysmex America, Inc., a subsidiary of Sysmex Corp, recently announced plans to build a new reagent manufacturing, distribution, and service center in Brazil.
In FY24, sales in the Americas region for Sysmex increased 12% YoY to ¥118.7B. Reagents drove the revenue growing 16%.
Operating margins in the Americas have largely trodden on a volatile trajectory over the last few years hovering in the range of 4-6%, lowest among all the geographies.

Daiichi Sankyo (4568 JP): US Approval for Second ADC Drug to Drive Accelerated Growth