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Smartkarma Daily Briefs

Nov 29
0

Daily Brief TMT/Internet: Kioxia Holdings , Tencent, Nippo Ltd, Intel Corp, Delta Electronics Thailand , Hon Hai Precision Industry and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Kioxoa Pre-IPO – Peer Comparison
  • Kioxoa Pre-IPO – Thoughts on Valuations
  • Kioxia (285A JP) IPO: The Bull Case
  • Tencent/Netease: Second Month of Game Approval Disappointment
  • Kioxia IPO: Initial Thoughts on Financials and Valuation
  • Nippo Ltd. (9913 JP) : Research Update
  • Intel Finalises US CHIPS Funding But With Some Rather Unusual T&C’s
  • 日邦産業株式会社 (9913 JP) : リサーチアップデート日本語サマリー
  • Delta Electronics Thailand (Delta.BK): Buying Opportunity
  • Tech Supply Chain Tracker (29-Nov-2024): China smartphone market, Q3 2024

Kioxoa Pre-IPO – Peer Comparison

By Sumeet Singh

  • Kioxia Holdings (6600 JP) is aiming to raise around US$700m (including over-allocation) from its Japan IPO.
  • It was the world’s largest pure-play NAND flash memory supplier, in terms of both revenue and unit shipments in 2023, according to TechInsights.
  • We have looked at the company’s past performance in our earlier notes. In this note we undertake a peer comparison.

Kioxoa Pre-IPO – Thoughts on Valuations

By Sumeet Singh

  • Kioxia Holdings (285A JP) is aiming to raise around US$700m (including over-allocation) from its Japan IPO.
  • It was the world’s largest pure-play NAND flash memory supplier, in terms of both revenue and unit shipments in 2023, according to TechInsights.
  • We have looked at the company’s past performance in our earlier notes. In this note we talk about valuations.

Kioxia (285A JP) IPO: The Bull Case

By Arun George

  • Kioxia Holdings (6600 JP) is a leading player in the NAND flash memory market. It will list on 18 December and seek to raise up to US$740 million.   
  • Bain Capital, Toshiba Corp (6502 JP) and Hoya Corp (7741 JP) currently own 56.23%, 40.64% and 3.13% of the voting rights, respectively. 
  • The bull case rests on an attractive market opportunity, a return to revenue growth, margins close to all-time highs, a favourable cash conversion cycle, and modest leverage. 

Tencent/Netease: Second Month of Game Approval Disappointment

By Ke Yan, CFA, FRM

  • China announced game approval for the November batch. The number of games approved remained at a higher level than 2023.
  • The pace of China game approval appears to have accelerated to the same level as pre-tightening.
  • None of the companies that we are tracking got any approval for November batch.

Kioxia IPO: Initial Thoughts on Financials and Valuation

By Shifara Samsudeen, ACMA, CGMA

  • Kioxia Holdings (285A JP) ’s long waited IPO is now live and plans to raise US$700m at a much lower valuation of US$4.8bn vs price paid by Bain 6-years ago.
  • The company’s IPO is very timely as earnings have almost approached the cycle peak, but margins have continued to trail peers who have a more balanced product portfolio.
  • Kioxia’s valuation has declined while market sentiment for memory names has also been that great. We will discuss our valuation in a follow-up insight. 

Nippo Ltd. (9913 JP) : Research Update

By Nippon Investment Bespoke Research UK

  • FY24 1H results and update on the ongoing long-term plan

Intel Finalises US CHIPS Funding But With Some Rather Unusual T&C’s

By William Keating

  • Intel is now set to receive $7.86 billion in CHIPs Act funding, down from the $8.5 billion originally touted back in March 2024
  • The funding comes with a raft of restrictions and caveats regarding what happens in the event of any changes in Intel’s organizational structure and/or ownership
  • The US Department of Commerce also reserves the right to withhold funding and/or weigh in on decisions around outsourcing if Intel fails to meet key, critical milestones. Ouch!

日邦産業株式会社 (9913 JP) : リサーチアップデート日本語サマリー

By Nippon Investment Bespoke Research UK

  • FY24上期決算と長期計画のアップデート

Delta Electronics Thailand (Delta.BK): Buying Opportunity

By Henry Soediarko

  • Delta Electronics Thailand (DELTA TB) is a prominent data center and EV charging solution provider in Thailand.
  • Rich valuation, especially against the parent company, but its PEG ratio says otherwise.
  • It is proven that the share price weakness due to SET suspension is a buying opportunity.

Tech Supply Chain Tracker (29-Nov-2024): China smartphone market, Q3 2024

By Tech Supply Chain Tracker

  • China smartphone market grows significantly in 3Q 2024, demonstrating strong demand for mobile devices.
  • Lam Research establishes new office at Tata-PSMC wafer fab, enhancing their presence in the semiconductor industry.
  • LG shifts focus to solutions over products in major restructuring, while BYD plans cost cuts in anticipation of potential tariffs.

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Nov 29
0

Daily Brief Industrials: Belrise Industries, Pateo Connect Technology, Delta Manufacturing, Diana Shipping, Hunt (Jb) Transprt Svcs and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Belrise Industries Ltd Pre-IPO Tearsheet
  • Pateo Connect Pre-IPO: Undifferentiated and Unprofitable
  • Delta Manufacturing Ltd- Forensic Analysis
  • Diana Shipping Inc (DSX.WS) – Thursday, Aug 29, 2024
  • J.B. Hunt Transport Services: Will The Management’s Strategic Emphasis on Pricing and Cost Efficiency Pay Off? – Major Drivers

Belrise Industries Ltd Pre-IPO Tearsheet

By Rosita Fernandes

  • Belrise Industries (9156339Z IN)  is planning to raise about US$255m through its upcoming IPO in India. The lead bookrunners for the deal are Axis Capital, HSBC, Jefferies, SBI Capital
  • Established in 1988, it specializes in safety-critical systems and engineering solutions for two-wheelers, three-wheelers, four-wheelers, commercial vehicles, and agricultural vehicles.
  • As per Crisil report, Belrise held a market share of 24% in the two-wheeler metal components segment in India as of FY24.

Pateo Connect Pre-IPO: Undifferentiated and Unprofitable

By Nicholas Tan

  • Pateo Connect Technology (PTC HK)  is looking to raise up to US$300m in its upcoming Hong Kong IPO.
  • It is one of the largest domestic providers of smart cockpit and intelligent connectivity solutions in China, providing full-stack smart cockpit solution and cloud-based vehicle connectivity, for Chinese OEMs.
  • In this note, we look at the firm’s past performance.

Delta Manufacturing Ltd- Forensic Analysis

By Nitin Mangal

  • Delta Manufacturing (DELTAMAG IN)  manufactures hard-ferrite magnets, which it sells to OEMs and also manufactures garment trims in India i.e. woven labels, heat transfers, fabric printed labels, etc.
  • DMG’s market cap is just about INR 1.2 bn but faces grim, loss making operations
  • Other forensic setbacks include lack of FCF generation on the back of muted capex, cash flow misstatements, goodwill impairment, dependency on low cost promoter debt, etc.

Diana Shipping Inc (DSX.WS) – Thursday, Aug 29, 2024

By Value Investors Club

  • Dry bulk shipping sector experienced a summer slump in Q3 2024, with companies like GNK, GOGL, and SBLK seeing stock prices fall 10-20%
  • Despite the slump, GOGL has seen flat to 25% YTD increase while DSX has a YTD drop of 15%+
  • DSX has lagged behind peers but offers a high dividend yield of 12.3% and trades at a significant discount to its net asset value, making it an attractive investment opportunity

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.

J.B. Hunt Transport Services: Will The Management’s Strategic Emphasis on Pricing and Cost Efficiency Pay Off? – Major Drivers

By Baptista Research

  • J.B. Hunt Transport Services, Inc. recently released its third-quarter results for the fiscal year 2024, providing insights into the performance and strategic positioning amidst a dynamic freight environment.
  • The company reported a decline in revenue by 3% year over year, with operating income down by 7% and diluted earnings per share decreasing by 17%.
  • These figures reflect the ongoing challenges in the freight industry, exacerbated by the deflationary rate environment which continues to exert pressure on the company’s margin performance across the board.

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Nov 29
0

Daily Brief Utilities: Brookfield Renewable , American Electric Power, Atmos Energy, Constellation Energy , Aes Corp, Centerpoint Energy, Cms Energy Corp, Dominion Energy Inc, DTE Energy Company, Duke Energy and more

By | Daily Briefs, Utilities Sector

In today’s briefing:

  • Brookfield Renewable Energy Partners L.P.: Offshore Wind & Nuclear Services Expansion As A Critical Growth Lever! – Major Drivers
  • American Electric Power (AEP): An Analysis Of Its Capital Strategy
  • Atmos Energy Corporation: Will Its Capital Investments Towards System Modernization Be A Critical Growth Accelerator? – Major Drivers
  • Constellation Energy Corporation: Adaptation to Electrification & Data Economy & Other Major Drivers
  • The AES Corporation: Its Renewable Energy Expansion and Project Pipeline Driving Our ‘Buy’ Rating! – Major Drivers
  • CenterPoint Energy: Accelerates Customer Growth with Strategic Rate Adjustments & Revenue Boosts! – Major Drivers
  • CMS Energy Corporation: Can Its Renewable Energy Expansion Give Them A Competitive Edge? – Major Drivers
  • Dominion Energy: These Are The 6 Biggest Factors Impacting Its Performance In 2025 &Beyond! – Major Drivers
  • DTE Energy: Its Efforts Towards Non-Regulated Business Expansion & Renewable Projects & Other Major Drivers
  • Duke Energy: The Massive Load Growth

Brookfield Renewable Energy Partners L.P.: Offshore Wind & Nuclear Services Expansion As A Critical Growth Lever! – Major Drivers

By Baptista Research

  • Brookfield Renewable Partners LP (Brookfield Renewables) delivered a robust performance in the third quarter of 2024, achieving record results in terms of funds from operations (FFO) and asset recycling, while also positioning itself strategically for future growth.
  • The company’s execution of its business strategies and asset monetization initiatives have been central to its recent performance.
  • 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.

American Electric Power (AEP): An Analysis Of Its Capital Strategy

By Baptista Research

  • American Electric Power (AEP) reported its financial performance for the third quarter of 2024, revealing a solid standing in key areas while also addressing certain strategic and operational challenges.
  • The company reported third-quarter operating earnings of $1.85 per share, totaling $985 million, up from $1.77 per share or $924 million in the same quarter of the previous year.
  • This result demonstrates AEP’s ability to generate stable earnings, supported primarily by its regulated utilities business.

Atmos Energy Corporation: Will Its Capital Investments Towards System Modernization Be A Critical Growth Accelerator? – Major Drivers

By Baptista Research

  • Atmos Energy Corporation’s fiscal 2024 fourth-quarter results highlight a consistent growth trajectory marked by robust capital investments, enhanced operational strategies, and expanding customer base.
  • The company reported earnings per share (EPS) of $6.83, marking its 22nd consecutive year of EPS growth, alongside its 40th consecutive year of dividend growth.
  • The fiscal year achievements reflect Atmos Energy’s successful execution of its strategy to operate safely and reliably while modernizing its natural gas distribution, transmission, and storage systems.

Constellation Energy Corporation: Adaptation to Electrification & Data Economy & Other Major Drivers

By Baptista Research

  • Constellation Energy Corporation’s recent earnings for the third quarter of 2024 highlighted both the strengths and challenges faced by the company in the current market landscape.
  • The presentation provided a detailed overview of the company’s operational performance, regulatory updates, and strategic initiatives, offering a comprehensive picture of its current trajectory.
  • 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.

The AES Corporation: Its Renewable Energy Expansion and Project Pipeline Driving Our ‘Buy’ Rating! – Major Drivers

By Baptista Research

  • AES Corporation has demonstrated a mixture of positive advancements and notable challenges in its third quarter earnings results for 2024.
  • The company’s performance aligns well with its strategic goals, especially in renewable energy expansion and U.S. utility growth, although some headwinds from severe weather conditions in South America have depressed certain results.
  • 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.

CenterPoint Energy: Accelerates Customer Growth with Strategic Rate Adjustments & Revenue Boosts! – Major Drivers

By Baptista Research

  • CenterPoint Energy’s third quarter 2024 earnings call highlights both achievements and challenges in the utility company’s recent performance.
  • Situated in the heart of an active hurricane season, the call commenced with the company extending concerns and support for those affected by Hurricanes Helene and Milton.
  • This also underscored CenterPoint’s resilience and industry solidarity, demonstrated by their significant participation in mutual aid efforts despite disruptions caused by these natural disasters.

CMS Energy Corporation: Can Its Renewable Energy Expansion Give Them A Competitive Edge? – Major Drivers

By Baptista Research

  • CMS Energy Corporation recently reported its third-quarter results for 2024, highlighting a blend of opportunities and challenges.
  • The company reaffirmed its financial guidance, projecting an adjusted earnings per share (EPS) range of $3.29 to $3.35 for the year, with expectations leaning towards the high end.
  • Key drivers of this performance include favorable weather conditions, constructive rate outcomes, and operational efficiencies in storm response, which have collectively offset increased insurance and IT costs.

Dominion Energy: These Are The 6 Biggest Factors Impacting Its Performance In 2025 &Beyond! – Major Drivers

By Baptista Research

  • Dominion Energy’s latest quarterly earnings outline a blend of strategic positioning and operational challenges for the company.
  • The company reports operating earnings of $0.98 per share for the third quarter, alongside GAAP earnings of $1.12 per share.
  • With nine months of results in, full-year earnings guidance has been slightly narrowed to a range of $2.68 to $2.83 per share, maintaining a midpoint of $2.75.

DTE Energy: Its Efforts Towards Non-Regulated Business Expansion & Renewable Projects & Other Major Drivers

By Baptista Research

  • DTE Energy’s third-quarter 2024 earnings presentation revealed a mixed outlook characterized by robust financial performance amidst ongoing operational and regulatory challenges.
  • The company reported operating earnings of $460 million, translating to $2.22 per share, highlighting a substantial improvement from the previous year due to increased electric margins, reduced storm costs, and favorable weather impacts.
  • However, these positive results were partially offset by higher operational costs in the gas segment and a slowdown in DTE Vantage earnings due to timing and one-time impacts from 2023.

Duke Energy: The Massive Load Growth

By Baptista Research

  • Duke Energy’s third-quarter 2024 earnings highlighted the operational and financial impacts of an unprecedented hurricane season, significantly influencing the period’s results.
  • The company reported an adjusted earnings per share of $1.62, down from $1.94 in the same quarter of the previous year.
  • Several factors contributed to this decrease, primarily related to the restoration costs and revenue losses due to the series of hurricanes—Debby, Helene, and Milton—that caused extensive damage across Duke Energy’s service territories.

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Nov 29
0

Daily Brief Financials: SBI Sumishin Net Bank , Avjennings Ltd, CNY, KB Financial, Resona Holdings, Bank Central Asia, Berkshire Hathaway Inc Cl A, Travelers Cos, Wr Berkley Corp and more

By | Daily Briefs, Financials

In today’s briefing:

  • NTT (9432 JP) And SBI Sumishin NetBank (7163 JP)? Maybe. Maybe Not. Seven Bank A Better Idea
  • AVJennings (AVJ AU): AVID’s Indicative Offer at A$0.67 (103% Premium)
  • China Watch: Forget About the BRICS Currency – China Wants to Impact the USD from Within
  • KB Financial – NPLs from KRW2.1tr to KRW3.1tr YoY Vs +6% Loans. Substandard Loans: Big Issue
  • AVJennings (AVJ AU): AVID’s Done Deal
  • Japanese Big Cap Banks – Shizuoka (5831 JP) Upgraded to Buy, Chiba (8331 JP) To Neutral from Buy
  • Bank Central Asia (BBCA IJ) – Tempering 2025 Expectations
  • Best of: Berkshire after Warren Buffett
  • Travelers Companies: Will Its Strategic Investments & Mergers Help Tilt The Competitive Dynamics In Its Favor? – Major Drivers
  • W.R. Berkley Corporation: It’s Efforts Towards Investment Strategy & Yield Optimization & Other Major Drivers

NTT (9432 JP) And SBI Sumishin NetBank (7163 JP)? Maybe. Maybe Not. Seven Bank A Better Idea

By Travis Lundy

  • An article in Japanese weekly magazine Bunshun this morning sent shares inSBI Sumishin Net Bank (7163 JP) limit up +17% with a headline that NTT Docomo was interested to buy.
  • Without access to the article, I can’t go deep, but the base concept is that NTT Docomo is “worried” about KDDI (which has a bank, as does Softbank Corp)
  • It is not clear how serious it is, SBI Sumishin is super-expensive, and buying a bank isn’t the same as buying a company. Hmmm…

AVJennings (AVJ AU): AVID’s Indicative Offer at A$0.67 (103% Premium)

By Arun George

  • Avjennings Ltd (AVJ AU) disclosed a non-binding indicative proposal from AVID at A$0.67 per share, a 103.0% premium to the undisturbed price. 
  • The proposal is subject to due diligence (till 31 January 2025), entry into a scheme implementation deed, and shareholder and regulatory approvals (FIRB and OIO).
  • The largest shareholder supports the offer, which represents a 20-year high. AVID has completed initial due diligence, lending confidence that a binding proposal will materialise.

China Watch: Forget About the BRICS Currency – China Wants to Impact the USD from Within

By Andreas Steno

  • Last week, we missed an intriguing story that several clients have asked us to explore.
  • China issued $2 billion worth of USD-denominated bonds, which might not seem groundbreaking at first glance—it’s not uncommon for China to issue bonds in dollars.
  • However, two aspects of this issuance stand out:The Venue: These bonds weren’t issued in the typical financial hubs like New York or Shanghai but in Riyadh, Saudi Arabia—a first of its kind.

KB Financial – NPLs from KRW2.1tr to KRW3.1tr YoY Vs +6% Loans. Substandard Loans: Big Issue

By Daniel Tabbush

  • Headline NPL figures at KB Financial (105560 KS) are already of major concern rising by 49% in the past year to 3Q24
  • Granular loan classification data is of even greater concern, where substandard loans are up from KRW1,153bn to KRW1,715bn over the same period
  • This more benign bucket of NPLs well overshadows loss loans, can migration can mean a substantial rise in credit costs

AVJennings (AVJ AU): AVID’s Done Deal

By David Blennerhassett

  • On the 28th November, AVJennings Ltd (AVJ AU), a widely recognised home builder in Australia/New Zealand, entered into a deed granting the AVID consortium exclusive confirmatory due diligence.
  • AVID, comprising Proprium Capital Partners and AVID Property Group, have pitched an NBIO (by way of a Scheme) of A$0.67/share, in cash, a punchy 103% premium to last close. 
  • Apart from entering a SIA after DD (expected end-Jan completion), the Offer requires FIRB and OIO to sign off. AVJ’s board, controlled by Singapore’s SC Global (54.5% shareholder) is supportive.

Japanese Big Cap Banks – Shizuoka (5831 JP) Upgraded to Buy, Chiba (8331 JP) To Neutral from Buy

By Victor Galliano

  • Market expectations that the BoJ’s monetary policy meeting will raise benchmark interest rates in December are reflected in the rising JGB yields, and in the domestic lending rate trends
  • We reiterate our core recommendations of Resona and Mizuho for their leverage to higher interest rates, their low LDRs and their high share of strategic holdings relative to market capitalisation
  • We reduce Chiba to neutral from buy, keep our buy on Concordia; we add Shizuoka for its gearing to higher interest rates and very high share of strategic shareholdings

Bank Central Asia (BBCA IJ) – Tempering 2025 Expectations

By Angus Mackintosh

  • A company visit with Bank Central Asia (BBCA IJ) in Jakarta revealed a more cautious view on loan growth looking into 2025, with expectations for high-single-digit YoY growth.
  • There is increasing caution amongst customers around the soft economy and the risk of more aggressive tax collection in 2025, reflected in strong growth in holdings of government bonds.
  • A company visit with Bank Central Asia (BBCA IJ) in Jakarta revealed a more cautious view on loan growth looking into 2025, with expectations for high-single-digit YoY growth.

Best of: Berkshire after Warren Buffett

By Behind the Money

  • Warren Buffett’s house in Omaha attracts fans from around the world, reflecting his legendary status as an investor
  • Succession planning at Berkshire Hathaway raises questions about the future leadership and challenges facing the company after Buffett’s tenure.

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

Travelers Companies: Will Its Strategic Investments & Mergers Help Tilt The Competitive Dynamics In Its Favor? – Major Drivers

By Baptista Research

  • Travelers Companies, Inc. reported strong financial performance for the third quarter of 2024, demonstrating a balanced strategy of growth, profitability, and prudent risk management, though not without its challenges.
  • Key positives from the earnings call include a significant rise in core income, reaching over $1.2 billion or $5.24 per diluted share, which represents stellar results amidst complex market conditions.
  • This increase was driven by a combination of factors such as a 73% surge in underlying underwriting income compared to the prior year, derived notably from net earned premiums at a record $10.7 billion, marking a 10% increase, and a marked improvement in the underlying combined ratio to 85.6%, down by 5 points year-over-year.

W.R. Berkley Corporation: It’s Efforts Towards Investment Strategy & Yield Optimization & Other Major Drivers

By Baptista Research

  • W.
  • R.
  • Berkley Corporation demonstrated solid financial performance in its third quarter of 2024, despite sector-wide challenges, notably from natural catastrophes.

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Nov 29
0

Daily Brief Energy/Materials: Korea Zinc, Banpu Public, PCBL Limited, Williams Cos, Halliburton Co, Packaging Corporation of America, Crude Oil, Ppg Industries, Schlumberger Ltd and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • A Proxy Fight for Korea Zinc in January 2025
  • Korea Zinc Saga Turning into a Comedy Show: MBK’s Speculative Move & How It’s Shaping Our Trades
  • Quiddity Leaderboard SET50 Dec 24: Final Expectations; LONGs up +6% Vs SHORTs in a Month
  • 2025 High Conviction Idea: PCBL Limited: Transitioning to Specialty Chemical
  • Most executives upbeat after Trump election
  • [Earnings Review] Halliburton Misses Q3 Estimates on Persistent Weakness in North America
  • Packaging Corporation of America: What Is The Expected Margin Impact Of Its Strategic Investments To Enhance Operational Efficiency?- Major Drivers
  • [ETP 2024/48] WTI Falls on Easing Middle East Tensions, Henry Hub Moderates on Ample Supply
  • PPG Industries Inc.: These Are The 4 Biggest Risks Faced By The Paints & Coatings Behemoth! – Major Drivers
  • Schlumberger Limited: Will Its Expansion of Deepwater Operations Help Catalyze The Top-Line Growth? – Major Drivers

A Proxy Fight for Korea Zinc in January 2025

By Douglas Kim

  • There is likely to be a proxy fight for the control of Korea Zinc (010130 KS) between MBK/Young Poong alliance and Chairman Choi/Bain Capital alliance in January 2025.
  • Young Poong Precision announced that it will acquire 39,254 shares of Korea Zinc. Post this purchase, Young Poong Precision will own a 2.11% stake in Korea Zinc (up from 1.92%).
  • FSS Governor Lee Bok-Hyun mentioned that the FSS is seriously reviewing a potential accounting issue related to environmental pollution at Young Poong.

Korea Zinc Saga Turning into a Comedy Show: MBK’s Speculative Move & How It’s Shaping Our Trades

By Sanghyun Park

  • Lee Bok-hyun, head of the Financial Supervisory Service, unexpectedly voiced concerns about MBK winning Korea Zinc’s management battle, catching everyone off guard.
  • The key question is how Michael ByungJu Kim will handle government pressure, with MBK possibly aligning with the opposition if the Democratic Party pushes for commercial law reform.
  • Korea Zinc now becomes a proxy war over governance reform. Watch MBK’s political stance, as it could drive the stock higher, especially if Michael teams up with the opposition.

Quiddity Leaderboard SET50 Dec 24: Final Expectations; LONGs up +6% Vs SHORTs in a Month

By Janaghan Jeyakumar, CFA

  • The SET50 index tracks the performance of the top 50 largest and most liquid names listed on the Stock Exchange of Thailand (SET).
  • In this insight, we take a look at our final expected ADDs/DELs for SET 50 during the index rebal event in December 2024.
  • We see four ADDs/DELs in December 2024. While the expected DELs list remains unchanged since last month, there is a change in our expected ADDs list.

2025 High Conviction Idea: PCBL Limited: Transitioning to Specialty Chemical

By Nimish Maheshwari

  • Phillips Carbon Black (PHCB IN) PCBL is the largest producer of Carbon Black in the country and seventh largest player in the world. 
  • Transitioning to specialty carbon black, acquiring companies non-carbon linked companies and entering into JV for sunrise sectors EV battery chemical companies. 
  • Guiding for 2400Cr Capex for 1Mn capacity of Carbon black capacity, 600Cr capex for Aquafarm chemicals and 500Cr for battery chemicals in the upcoming years for growth. 

Most executives upbeat after Trump election

By Bedrock AI

  • William Companies $WMB believes more Republican control can resolve permitting issues, which would benefit the power industry and the energy infrastructure business.

  • A favorable tax outcome will also be “a very huge positive to [its] guidance in the immediate term”. 

  • Energy Transfer $ET said the Trump administration will bring “a breath of fresh air.” Nov 06: Q3’24

[Earnings Review] Halliburton Misses Q3 Estimates on Persistent Weakness in North America

By Suhas Reddy

  • Halliburton’s Q3 revenue fell by 1.8% YoY and missed estimates by 2.2% dragged down by an 8.5% YoY fall in revenue from North America.
  • The Completion and Production division’s revenue dropped 5.4% YoY and 3% QoQ, while the Drilling and Evaluation division posted a 3.5% YoY increase but declined 1.4% QoQ.
  • Operating cash flow declined 23.5% QoQ, while free cash flow dropped 31.5%. Earnings were impacted by lost revenue from the cybersecurity incident and Gulf storms.

Packaging Corporation of America: What Is The Expected Margin Impact Of Its Strategic Investments To Enhance Operational Efficiency?- Major Drivers

By Baptista Research

  • Packaging Corporation of America reported robust third-quarter 2024 results, showcasing notable growth in both revenue and profitability driven by increased volume and effective cost management.
  • The company achieved a net income of $238 million, translating to $2.64 per share, and excluding special items, net income stood slightly higher at $239 million or $2.65 per share.
  • This performance marked a significant improvement compared to the third quarter of 2023, where net income was $185 million or $2.05 per share.

[ETP 2024/48] WTI Falls on Easing Middle East Tensions, Henry Hub Moderates on Ample Supply

By Suhas Reddy

  • For the week ending 22/Nov, US crude inventories fell by 1.8m barrels, beating expectations of a 1.3m barrel decrease. However, gasoline and distillate stocks rose more than expected.
  • US natural gas inventories fell by 2 Bcf for the week ending 22/Nov, missing analyst expectations of a 4 Bcf decline. Inventories are 7.2% above the 5-year seasonal average.
  • Analysts raised their 12-month price targets on Chevron while trimming their targets for Exxon and Occidental. Both JP Morgan and Morgan Stanley reiterated their Overweight ratings on Reliance Industries.

PPG Industries Inc.: These Are The 4 Biggest Risks Faced By The Paints & Coatings Behemoth! – Major Drivers

By Baptista Research

  • PPG, a global leader in the coatings industry, presented its third-quarter 2024 financial results, reflecting both achievements and challenges faced by the company.
  • The earnings disclosed sales of $4.6 billion and highlighted a year-over-year segment margin improvement for the eighth consecutive quarter.
  • Notably, adjusted earnings per diluted share reached a record high for a third quarter at $2.13, up 3%, despite complications such as an unfavorable tax rate.

Schlumberger Limited: Will Its Expansion of Deepwater Operations Help Catalyze The Top-Line Growth? – Major Drivers

By Baptista Research

  • During the third quarter earnings of Schlumberger Limited (SLB), the Chief Executive Officer, Olivier Le Peuch, discussed a performance marked by strong margin expansion and robust free cash flow generation.
  • While the company reported flat sequential revenue growth, it achieved a significant increase in adjusted EBITDA margin, demonstrating improved operational efficiency.
  • Particularly noteworthy was the free cash flow figure, which stood at $1.81 billion for the quarter, highlighting the company’s strong cash-generating capability.

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Nov 29
0

Daily Brief Health Care: Olympus Corp, Leatt Corporation, SofWave Medical and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Olympus Corp (7733 JP): One-Off Events Boost H1FY25 Result; Not Optimistic About FY25 Guidance
  • Leatt Corp (LEAT) – Tuesday, Aug 27, 2024
  • Sofwave Medical Ltd (SOFW) – Wednesday, Aug 28, 2024

Olympus Corp (7733 JP): One-Off Events Boost H1FY25 Result; Not Optimistic About FY25 Guidance

By Tina Banerjee

  • Olympus Corp (7733 JP) shares retreated 17% over the last one month, dragged by resignation of the CEO and weak H1FY25 result. No definite time for CEO succession is announced.
  • Favorable Fx inflated H1FY25 result. On a Fx neutral basis, revenue growth is only 3% YoY, while adjusted operating profit growth is just 4% YoY.
  • Olympus has guided for 9% YoY revenue growth to ¥1,009B in FY25, indicating H2FY25 revenue of ¥535B (-9% YoY). ESD revenue guidance seems to be aggressive amid current macro backdrop.

Leatt Corp (LEAT) – Tuesday, Aug 27, 2024

By Value Investors Club

  • Leatt Corporation is currently trading at a significant discount to its intrinsic value, making it an appealing opportunity for investors
  • The company has a solid balance sheet, historical growth trends, and potential for margin improvement, further enhancing its investment appeal
  • With a focus on organic growth and target operating margins, Leatt Corporation is well-positioned for success in the personal protection equipment industry for mountain bikes and motorbikes

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.

Sofwave Medical Ltd (SOFW) – Wednesday, Aug 28, 2024

By Value Investors Club

  • Led by experienced entrepreneur in energy-based aesthetic device industry
  • Focus on high gross profit margin through razor-and-blade business model
  • Plans for potential take-private transaction and NASDAQ listing for increased visibility and profitability

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.

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Nov 29
0

Daily Brief Industrials: Belrise Industries, Pateo Connect Technology, Delta Manufacturing, Diana Shipping, Hunt (Jb) Transprt Svcs and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Belrise Industries Ltd Pre-IPO Tearsheet
  • Pateo Connect Pre-IPO: Undifferentiated and Unprofitable
  • Delta Manufacturing Ltd- Forensic Analysis
  • Diana Shipping Inc (DSX.WS) – Thursday, Aug 29, 2024
  • J.B. Hunt Transport Services: Will The Management’s Strategic Emphasis on Pricing and Cost Efficiency Pay Off? – Major Drivers

Belrise Industries Ltd Pre-IPO Tearsheet

By Rosita Fernandes

  • Belrise Industries (9156339Z IN)  is planning to raise about US$255m through its upcoming IPO in India. The lead bookrunners for the deal are Axis Capital, HSBC, Jefferies, SBI Capital
  • Established in 1988, it specializes in safety-critical systems and engineering solutions for two-wheelers, three-wheelers, four-wheelers, commercial vehicles, and agricultural vehicles.
  • As per Crisil report, Belrise held a market share of 24% in the two-wheeler metal components segment in India as of FY24.

Pateo Connect Pre-IPO: Undifferentiated and Unprofitable

By Nicholas Tan

  • Pateo Connect Technology (PTC HK)  is looking to raise up to US$300m in its upcoming Hong Kong IPO.
  • It is one of the largest domestic providers of smart cockpit and intelligent connectivity solutions in China, providing full-stack smart cockpit solution and cloud-based vehicle connectivity, for Chinese OEMs.
  • In this note, we look at the firm’s past performance.

Delta Manufacturing Ltd- Forensic Analysis

By Nitin Mangal

  • Delta Manufacturing (DELTAMAG IN)  manufactures hard-ferrite magnets, which it sells to OEMs and also manufactures garment trims in India i.e. woven labels, heat transfers, fabric printed labels, etc.
  • DMG’s market cap is just about INR 1.2 bn but faces grim, loss making operations
  • Other forensic setbacks include lack of FCF generation on the back of muted capex, cash flow misstatements, goodwill impairment, dependency on low cost promoter debt, etc.

Diana Shipping Inc (DSX.WS) – Thursday, Aug 29, 2024

By Value Investors Club

  • Dry bulk shipping sector experienced a summer slump in Q3 2024, with companies like GNK, GOGL, and SBLK seeing stock prices fall 10-20%
  • Despite the slump, GOGL has seen flat to 25% YTD increase while DSX has a YTD drop of 15%+
  • DSX has lagged behind peers but offers a high dividend yield of 12.3% and trades at a significant discount to its net asset value, making it an attractive investment opportunity

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.

J.B. Hunt Transport Services: Will The Management’s Strategic Emphasis on Pricing and Cost Efficiency Pay Off? – Major Drivers

By Baptista Research

  • J.B. Hunt Transport Services, Inc. recently released its third-quarter results for the fiscal year 2024, providing insights into the performance and strategic positioning amidst a dynamic freight environment.
  • The company reported a decline in revenue by 3% year over year, with operating income down by 7% and diluted earnings per share decreasing by 17%.
  • These figures reflect the ongoing challenges in the freight industry, exacerbated by the deflationary rate environment which continues to exert pressure on the company’s margin performance across the board.

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Nov 29
0

Daily Brief Consumer: Seven & I Holdings, Geely Auto, The Walt Disney Co, TI Fluid Systems , Walmart, Target Corp, Wynn Macau Ltd, Adastria Co Ltd, Kura Sushi USA , Gap Inc/The and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Seven&I (3382): Who Will Be the Greater Fool?
  • HK CEO & Director Dealings (28th Nov 2024): Geely Auto, Kingsoft Corp, Coastal Greenland
  • Disney CEO: Legacy, Creativity and the Magic of Storytelling
  • ABC Technologies/TI Fluid Systems: Highly Likely Firm Offer by Tomorrow
  • Walmart’s Secret Weapons: How Grocery Dominance and Digital Innovation Are Reshaping Retail! – Major Drivers
  • How Target Corporation’s Digital Power Play is Transforming Shopping & Boosting Stock Potential! – Major Drivers
  • Lucror Analytics – Morning Views Asia
  • Adastria Targets Zozo with New Online Mall, ‘And ST’
  • KRUS: The Issuance Playbook
  • The Gap Inc.: Brand Reinvigoration & Market Share Gains Driving Our Optimism! – Major Drivers

Seven&I (3382): Who Will Be the Greater Fool?

By Michael Allen

  • 7&I traded at less than 5x reported EV/EBITDA consistently for roughly 4 years straight, and no one seemed to care or notice.
  • Now that it trades close to 9x, there is an overflow of eager financiers and a mile-long line of analysts who will tell you that it is still undervalued.
  • This is the stock market equivalent of duct tape and a banana.

HK CEO & Director Dealings (28th Nov 2024): Geely Auto, Kingsoft Corp, Coastal Greenland

By David Blennerhassett

  • The data in this insight is collated from the “shareholding disclosure” link on the HKEx website.
  • Often there is a corresponding HKEx announcement on the increase – or decrease – in the shareholding by directors. Or pledging. However, such disclosures are by no means an absolute.
  • The key stocks mentioned in this regular insight include: Geely Auto (175 HK), Kingsoft Corp (3888 HK), and Coastal Greenland (1124 HK).

Disney CEO: Legacy, Creativity and the Magic of Storytelling

By In Good Company with Nicolai Tangen

  • Bob Iger, CEO of Disney, discusses the legacy and importance of storytelling at Disney, emphasizing the need to balance heritage and innovation.
  • He shares insights on leadership qualities, such as empathy, optimism, and the ability to act decisively, as well as the importance of staying curious and patient.
  • Bob also touches on the impact of technology, AI, and the role of creativity in the future of storytelling, highlighting the need to maintain human creativity and caution with AI implementation.

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

ABC Technologies/TI Fluid Systems: Highly Likely Firm Offer by Tomorrow

By Jesus Rodriguez Aguilar

  • ABC Technologies has largely completed its due diligence and reiterated a potential offer price of 200p per share, which the TIFS Board is minded to recommend if confirmed. 
  • After several extensions, tomorrow November 29 marks the final extension of the PUSU deadline. Spread has tightened over the last trading sessions in anticipation of a firm offer.
  • The 200p proposal values TIFS at 4.64x NTM EBITDA, above the 4.55x sector median, reflecting a fair valuation despite industry challenges like Chinese market weakness and fluctuating OEM shares.

Walmart’s Secret Weapons: How Grocery Dominance and Digital Innovation Are Reshaping Retail! – Major Drivers

By Baptista Research

  • Walmart’s recent performance in the third quarter of the fiscal year 2025 exhibited both strong growth and notable challenges.
  • The company achieved a 6.1% increase in sales in constant currency, and profit grew by 9.8%, reflecting Walmart’s ability to manage costs and drive efficiency amid complex global operations.
  • Key contributors to the positive results include a 27% increase in e-commerce sales, a 28% growth in advertising, and a 22% rise in membership income, which collectively helped Walmart grow profits faster than sales.

How Target Corporation’s Digital Power Play is Transforming Shopping & Boosting Stock Potential! – Major Drivers

By Baptista Research

  • In Target Corporation’s third-quarter earnings, Target witnessed a healthy 2.4% traffic growth, translating to over 10 million additional transactions compared to last year.
  • This is indicative of customer engagement and loyalty, supported by the company’s attractive offerings combining essential services and promotional activities.
  • The digital sector also emerged as a strong contender, showcasing an impressive growth of nearly 11%.

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: Wynn Macau, ReNew Energy, Softbank Group, Vedanta Resources
  • In the US, October personal income came in above estimates at 0.6% m-o-m (0.3% e / 0.3% p).
  • Meanwhile, personal spending slowed to 0.4% m-o-m (0.4% e / 0.6% revised p).

Adastria Targets Zozo with New Online Mall, ‘And ST’

By Michael Causton

  • Adastria Co Ltd (2685 JP) has rebuilt and renamed its online store as it aims to create a major fashion mall to rival the likes of Zozo and Rakuten Fashion.
  • Unlike those rivals, it has a chain of stores linked to the mall, an advantage in a market where omnichannel is well supported by customers.
  • To boost sales from younger Japanese with fewer savings, it has also tied with Acom Co Ltd (8572 JP) to offer small loans.

KRUS: The Issuance Playbook

By Investment Talk

  • It’s a playbook Kura Sushi has performed numerous times before to shore up the balance sheet. In 2021, the company issued 1.1 million shares of stock at $45 netting proceeds of ~$47 million of which $17 million was used to erase the line of credit extended to them during the pandemic from the parent company.

  • The rest was used for CapEx and operating costs. In 2023, the company issued a further 1.3 million shares at $54 per share, netting ~$65 million in proceeds for CapEx and operating costs.

  • Following the Q4 earnings in November 2024, an announcement to raise (at $85 per share) a further $64.6 million in proceeds surfaced; once again for CapEx and operating costs.

The Gap Inc.: Brand Reinvigoration & Market Share Gains Driving Our Optimism! – Major Drivers

By Baptista Research

  • Gap Inc. reported its third quarter fiscal 2024 earnings, delivering results that met and, in several instances, surpassed expectations.
  • Net sales increased by 2%, marking the fourth consecutive quarter of sales growth and contributing to a 1% rise in comparable sales.
  • The growth in sales was distributed across its brand portfolio, with Old Navy and Gap showing strong performances, and Athleta experiencing a notable turnaround with a 5% increase in comparable sales.

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Nov 28
0

Daily Brief ESG: Critical Role of Outside Directors Is an Issue Leading to a Majority of Independent Directors and more

By | Daily Briefs, ESG

In today’s briefing:

  • Critical Role of Outside Directors Is an Issue Leading to a Majority of Independent Directors
  • Buenaventura – ESG Report – Lucror Analytics

Critical Role of Outside Directors Is an Issue Leading to a Majority of Independent Directors

By Aki Matsumoto

  • Outside directors, initially just a number- matching and “just for show,” gradually improved amid demands for improved capital profitability and board practices as the foreign ownership increased.
  • It’s important to pay outside directors sufficient compensation to enable them to fulfill managerial responsibilities. The company needs to recruit talent with skills and background to achieve its business goals.
  • People who can make insightful and rational judgments in an independent position to fulfill their role for the long-term expansion of the company’s value should be appointed as outside directors.

Buenaventura – ESG Report – Lucror Analytics

By Leonard Law, CFA

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Buenaventura’s ESG as “Adequate”, in line with its Social and Governance scores, while the Environmental pillar is “Weak”. Controversies are “Immaterial” and Disclosure is “Adequate”.

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Nov 28
0

Daily Brief Thematic (Sector/Industry): Do diamond miners have a future? (Paul Zimnisky) and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • Do diamond miners have a future? (Paul Zimnisky)
  • Smart Trump, or Dumb Trump?
  • Ohayo Japan | U.S. Markets Slip Amid Inflation Concerns; Dell, HP Drag Tech Sector
  • Algorithm Regulation on China Internet Is A Slap on the Wrist
  • Japan Morning Connection: Japan Facing an Uphill Battle on Yen Strength and Weak Tape Overnight

Do diamond miners have a future? (Paul Zimnisky)

By Money of Mine

  • De Beers once had a monopoly in the diamond market, but now the industry is more of an oligopoly with major producers controlling a majority of global supply
  • Diamonds are non-fungible assets with a complex pricing dynamic due to various categories and qualities
  • Most diamonds are sold via contract, leading to less price volatility but allowing miners to adjust supply based on demand fluctuations

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

Smart Trump, or Dumb Trump?

By Eric Wen

  • The election of Donald Trump with overwhelming majority changes the investment logic of our sectors and perhaps others. But besides acknowledging, what is actionable is the broad impact expected globally; 
  • Thus the questions of whether Trump’s policies will be successful, become important: how flexible they are, what are the signposts and who stand to benefit and be hurt;
  • Our standing assumption is that both MAGA and non-MAGA will claim victory.  We are assuming quality executions from the Trump team but the odds of achieving is still daunting.

Ohayo Japan | U.S. Markets Slip Amid Inflation Concerns; Dell, HP Drag Tech Sector

By Mark Chadwick

  • Inflation concerns weighing on sentiment after October’s Personal Consumption Expenditure (PCE) data showed a 2.3% annual increase, up from 2.1% in September
  • Dell Technologies and HP led declines among tech stocks. Dell slid 12.3% after mixed earnings and caution about gradual AI adoption
  • Sumitomo Corp is exploring a bid for Seven & i Holdings’ York Holdings, a business encompassing supermarket and retail chains

Algorithm Regulation on China Internet Is A Slap on the Wrist

By Andy Fu

  • Chinese government launched a special regulation to address algorithm of major Internet platforms, outlining 21 rectification requirements, which impacted Meituan, TRIP.com, and social media companies;
  • However, The rectification measures focused mostly on user operation, algorithm registration, and compliance, with an aim to strengthen government control over public opinion, but not on monetization;
  • We maintain that Chinese government needs the Internet platforms to boost consumption and employment, as manifested by Premier Li Qiang’s recent labeling  of Internet as New Quality Productivity Force.

Japan Morning Connection: Japan Facing an Uphill Battle on Yen Strength and Weak Tape Overnight

By Andrew Jackson

  • HP and Dell misses after-mkt yesterday setting off a wave of tech selling.
  • MSFT under antitrust scrutiny from the FTC raising concerns AI demand is too focused?
  • Panasonic briefing on AI continues to point to strong growth for its DC related server and power management solutions.

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