Smartkarma Daily Briefs

The Sep24 Nikkei 225 Rebal was odd. They could have done 3. They did 2. For now, I see 2 IN and 2 OUT for the Mar25 Nikkei 225 Rebal.
There is also a capping event for Fast Retailing which on mild outperformance could become a double-capping event.
There is a bit of a tech bent to potential ADDs. Some Consumer Goods stocks need stock splits to get in. The Committee will regret not adding PPIH last time.

Shinko Electric (6967 JP) Takeover – Still Buy Dips, and Ibiden (4062 JP)

In August, Shinko Electric Industries (6967 JP) announced that the JIC consortium Tender Offer due to be launched by end-August would be delayed. Next update? January 2025.
Everyone had expected a delay, but the stock fell. Then tech/AI fell out of bed, Ibiden crashed, China export restrictions noise/pushback caused further upset. But Ibiden and tech are rebounding.
At 9% it was a raging buy;post-dip at 7% it was good. Now it’s 6+%. Still wide, still interesting, still stable but year-end path dependency… So I still like Ibiden.

(Mostly) Asia-Pac M&A: Descente, Shin Kong Financial, T Gaia, Shinsegae E&C, MPHB, Pacific Smiles

I tally 44 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
Three new deals discussed this week: T Gaia (3738 JP)‘s and Shinsegae E&C (034300 KS) Tender Offers, and MPHB (MPHB MK)‘s SCR. Plus ASMPT (522 HK) in the crosshairs. Again.
Key updates took place on: Sigma Healthcare (SIG AU), Descente Ltd (8114 JP), Shin Kong Financial Holding (2888 TT), Pacific Smiles (PSQ AU), and Greatview Aseptic Packaging (468 HK).

Weekly Deals Digest (06 Oct) – Tokyo Metro, Rigaku, CR Beverage, K Bank, ASMPT, Samson, T-Gaia

A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments: Tokyo Metro (9023 JP), Rigaku Holdings (268A JP), K Bank (279570 KS) and China Resources Beverage (CRB HK) IPOs.
Event-Driven developments: ASM Pacific Technology (522 HK), Greatview Aseptic Packaging (468 HK), Samson Holding (531 HK), Descente Ltd (8114 JP), T Gaia Corp (3738 JP).

Will TSE’s Mock Engagement Measures Work?

By Aki Matsumoto

TSE’s classification translates into three groups: companies which can independently increase capital profitability, companies which haven’t yet fully implemented plans, and companies which haven’t yet responded to “TSE’s request.”
Mock engagements by TSE, which doesn’t have voting rights, will be focused on whether they actually make the company think about management strategies and implement them, thereby increasing corporate value.
To help companies effectively implement “TSE’s request,” an idea would be to offer time-limited discount on listing fee paid to TSE by companies that have significantly increased their market capitalization.

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Oct 06

Most Read: Ventia, Auckland Intl Airport, Longfor Properties, Kokusai Electric , Korea Zinc, Ibiden Co Ltd, Descente Ltd, Tokyo Metro and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

ASX100/ASX200 Index: Replacement Candidates for Virgin Money (VUK AU)
Auckland Airport (AIA NZ) Placement: Index Impact
HSCEI Index Rebalance Preview: High & Low Probability Changes
HK RE Series (4) With Macro Backdrop in US & China, HK Is Positioned for a Strong Rerating, Buy Now!
Quiddity Mar25 Nikkei 225 Rebal: Likely 2 IN, 2 OUT, Again; Minimal Surprise Factor
Impact on Korea Zinc’s Balance Sheet and Debt Ratios Post Massive Debt Raise Proposed by Choi Family
Shinko Electric (6967 JP) Takeover – Still Buy Dips, and Ibiden (4062 JP)
(Mostly) Asia-Pac M&A: Descente, Shin Kong Financial, T Gaia, Shinsegae E&C, MPHB, Pacific Smiles
ASX Short Interest Weekly (Sep 27th): Rio Tinto, BHP, Fortescue, Goodman, Santos
Weekly Deals Digest (06 Oct) – Tokyo Metro, Rigaku, CR Beverage, K Bank, ASMPT, Samson, T-Gaia

ASX100/ASX200 Index: Replacement Candidates for Virgin Money (VUK AU)

By Brian Freitas

Following its acquisition by Nationwide, Virgin Money UK Plc (VUK AU) is scheduled to stop trading on the ASX Ltd (ASX AU) after market close on 25 September.
Virgin Money UK Plc (VUK AU) is a member of the S&P/ASX100 Index and S&P/ASX 200 (AS51 INDEX) and there will be adhoc inclusions at the close on 25 September.
There are a couple of stocks vying for inclusion in each index and the next couple of days will determine which ones make it.

Auckland Airport (AIA NZ) Placement: Index Impact

By Brian Freitas

Auckland Intl Airport (AIA NZ) has announced an underwritten placement of NZ$1.2bn and a non-underwritten retail offer to raise NZ$200m.
The stock is trading near the low end of its range over the last few years and the 7% discount from the last close should attract investor interest.
We estimate passive trackers will need to buy around 13.5% of the placement shares coinciding with the settlement date on 20 September.

HSCEI Index Rebalance Preview: High & Low Probability Changes

By Brian Freitas

PICC Property & Casualty H (2328 HK) inclusion and Longfor Properties (960 HK) deletion are high probability changes for the Hang Seng China Enterprises Index (HSCEI INDEX) in December.
There is a lower probability of China Resources Power (836 HK) being added and of Sino Biopharmaceutical (1177 HK) being deleted at the rebalance.
There has been big short covering in PICC Property & Casualty (2328 HK) over the last couple of months while shorts would have covered Longfor Properties (960 HK) recently.

HK RE Series (4) With Macro Backdrop in US & China, HK Is Positioned for a Strong Rerating, Buy Now!

By Jacob Cheng

The wait is finally over. The Fed delivered a 50bps rate cut in September meeting, kick- starting a new rate cut cycle
The rate cut is an absolute game changer for Hong Kong real estate. Physical market will recover with lower mortgage rate and companies will enjoy lower borrow rate
With the macro backdrop in US and China, Hong Kong is well positioned for as strong re-rating with mega catalysts ahead – Buy HK real estate, especially SHKP and NWD

Quiddity Mar25 Nikkei 225 Rebal: Likely 2 IN, 2 OUT, Again; Minimal Surprise Factor

The Sep24 Nikkei 225 Rebal was odd. They could have done 3. They did 2. For now, I see 2 IN and 2 OUT for the Mar25 Nikkei 225 Rebal.
There is also a capping event for Fast Retailing which on mild outperformance could become a double-capping event.
There is a bit of a tech bent to potential ADDs. Some Consumer Goods stocks need stock splits to get in. The Committee will regret not adding PPIH last time.

Impact on Korea Zinc’s Balance Sheet and Debt Ratios Post Massive Debt Raise Proposed by Choi Family

By Douglas Kim

We discuss the impact on the balance sheet and debt ratios of Korea Zinc’s efforts to conduct a massive debt increase to buyback and cancel shares.
Although the Choi family may consider raising further debt to increase the tender offer price even further, we believe this could pose further balance sheet risk on Korea Zinc.
We provide sensitivity analysis of higher debt on the interest coverage ratios of Korea Zinc.

Shinko Electric (6967 JP) Takeover – Still Buy Dips, and Ibiden (4062 JP)

In August, Shinko Electric Industries (6967 JP) announced that the JIC consortium Tender Offer due to be launched by end-August would be delayed. Next update? January 2025.
Everyone had expected a delay, but the stock fell. Then tech/AI fell out of bed, Ibiden crashed, China export restrictions noise/pushback caused further upset. But Ibiden and tech are rebounding.
At 9% it was a raging buy;post-dip at 7% it was good. Now it’s 6+%. Still wide, still interesting, still stable but year-end path dependency… So I still like Ibiden.

(Mostly) Asia-Pac M&A: Descente, Shin Kong Financial, T Gaia, Shinsegae E&C, MPHB, Pacific Smiles

I tally 44 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
Three new deals discussed this week: T Gaia (3738 JP)‘s and Shinsegae E&C (034300 KS) Tender Offers, and MPHB (MPHB MK)‘s SCR. Plus ASMPT (522 HK) in the crosshairs. Again.
Key updates took place on: Sigma Healthcare (SIG AU), Descente Ltd (8114 JP), Shin Kong Financial Holding (2888 TT), Pacific Smiles (PSQ AU), and Greatview Aseptic Packaging (468 HK).

ASX Short Interest Weekly (Sep 27th): Rio Tinto, BHP, Fortescue, Goodman, Santos

By Ke Yan, CFA, FRM

We analyzed the changes in short interest of ASX Stocks as of Sep 27th (reported today) which has an aggregated short interest worth USD27.6bn.
We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases & decreases in short value, short as multiple of ADT.
We highlight short interest changes in Rio Tinto, BHP, Fortescue, Goodman, Santos.

Weekly Deals Digest (06 Oct) – Tokyo Metro, Rigaku, CR Beverage, K Bank, ASMPT, Samson, T-Gaia

A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments: Tokyo Metro (9023 JP), Rigaku Holdings (268A JP), K Bank (279570 KS) and China Resources Beverage (CRB HK) IPOs.
Event-Driven developments: ASM Pacific Technology (522 HK), Greatview Aseptic Packaging (468 HK), Samson Holding (531 HK), Descente Ltd (8114 JP), T Gaia Corp (3738 JP).

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Oct 06

Daily Brief Industrials: Tokyo Metro, Contemporary Amperex Technology (CATL), Lyft and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Weekly Deals Digest (06 Oct) – Tokyo Metro, Rigaku, CR Beverage, K Bank, ASMPT, Samson, T-Gaia
CATL Chairman Sees Recycled Lithium as the Future of EV-Battery Making
Lyft Inc.: Expansion of Serviceable Addressable Market Driving Our Optimism! – Major Drivers

Weekly Deals Digest (06 Oct) – Tokyo Metro, Rigaku, CR Beverage, K Bank, ASMPT, Samson, T-Gaia

A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments: Tokyo Metro (9023 JP), Rigaku Holdings (268A JP), K Bank (279570 KS) and China Resources Beverage (CRB HK) IPOs.
Event-Driven developments: ASM Pacific Technology (522 HK), Greatview Aseptic Packaging (468 HK), Samson Holding (531 HK), Descente Ltd (8114 JP), T Gaia Corp (3738 JP).

CATL Chairman Sees Recycled Lithium as the Future of EV-Battery Making

By Caixin Global

Half of all lithium-ion batteries could be made with recycled lithium by 2042, according to the founder of power cell giant Contemporary Amperex Technology Co. Ltd. (CATL) (300750.SZ +11.06%), who presented a vision of an eco-friendlier industry at a recent event.
Speaking at the World New Energy Vehicles Congress on Friday, Zeng Yuqun, also CATL’s chairman, highlighted the critical role power cells can play in driving the EV industry toward a zero-carbon future, saying that the sustainable development of the industry hinges on the use of recycled battery raw materials.
CATL’s battery recycling business has already taken shape, with a current annual capacity to process 270,000 tons of used batteries, Zeng said.

Lyft Inc.: Expansion of Serviceable Addressable Market Driving Our Optimism! – Major Drivers

Lyft, Inc. recently released its financial results for the second quarter of 2024, highlighting some significant milestones and challenges.
The quarter was notable as it marked the first instance of GAAP profitability for Lyft, signaling a robust measure of cost management and efficiency within the company.
However, this financial highlight comes amid various strategic shifts and external factors that could influence the company’s trajectory moving forward.

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Oct 06

Daily Brief Industrials: Tokyo Metro, Contemporary Amperex Technology (CATL), Lyft and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Weekly Deals Digest (06 Oct) – Tokyo Metro, Rigaku, CR Beverage, K Bank, ASMPT, Samson, T-Gaia
CATL Chairman Sees Recycled Lithium as the Future of EV-Battery Making
Lyft Inc.: Expansion of Serviceable Addressable Market Driving Our Optimism! – Major Drivers

Weekly Deals Digest (06 Oct) – Tokyo Metro, Rigaku, CR Beverage, K Bank, ASMPT, Samson, T-Gaia

A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments: Tokyo Metro (9023 JP), Rigaku Holdings (268A JP), K Bank (279570 KS) and China Resources Beverage (CRB HK) IPOs.
Event-Driven developments: ASM Pacific Technology (522 HK), Greatview Aseptic Packaging (468 HK), Samson Holding (531 HK), Descente Ltd (8114 JP), T Gaia Corp (3738 JP).

CATL Chairman Sees Recycled Lithium as the Future of EV-Battery Making

By Caixin Global

Half of all lithium-ion batteries could be made with recycled lithium by 2042, according to the founder of power cell giant Contemporary Amperex Technology Co. Ltd. (CATL) (300750.SZ +11.06%), who presented a vision of an eco-friendlier industry at a recent event.
Speaking at the World New Energy Vehicles Congress on Friday, Zeng Yuqun, also CATL’s chairman, highlighted the critical role power cells can play in driving the EV industry toward a zero-carbon future, saying that the sustainable development of the industry hinges on the use of recycled battery raw materials.
CATL’s battery recycling business has already taken shape, with a current annual capacity to process 270,000 tons of used batteries, Zeng said.

Lyft Inc.: Expansion of Serviceable Addressable Market Driving Our Optimism! – Major Drivers

Lyft, Inc. recently released its financial results for the second quarter of 2024, highlighting some significant milestones and challenges.
The quarter was notable as it marked the first instance of GAAP profitability for Lyft, signaling a robust measure of cost management and efficiency within the company.
However, this financial highlight comes amid various strategic shifts and external factors that could influence the company’s trajectory moving forward.

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Oct 06

Daily Brief Energy/Materials: Korea Zinc, Ovintiv , Teck Resources and more

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

In today’s briefing:

Impact on Korea Zinc’s Balance Sheet and Debt Ratios Post Massive Debt Raise Proposed by Choi Family
Ovintiv: A Prime Acquisition Target for Coterra Energy?
Teck Resources Limited: Expanding Copper Production Capacity & An Insight Into Its Business Strategy! – Major Drivers

Impact on Korea Zinc’s Balance Sheet and Debt Ratios Post Massive Debt Raise Proposed by Choi Family

By Douglas Kim

We discuss the impact on the balance sheet and debt ratios of Korea Zinc’s efforts to conduct a massive debt increase to buyback and cancel shares.
Although the Choi family may consider raising further debt to increase the tender offer price even further, we believe this could pose further balance sheet risk on Korea Zinc.
We provide sensitivity analysis of higher debt on the interest coverage ratios of Korea Zinc.

Ovintiv: A Prime Acquisition Target for Coterra Energy?

Ovintiv has been making headlines recently as it is rumored to have been approached by Coterra Energy for a potential takeover.
While this creates buzz, Ovintiv’s position in the market makes it a compelling acquisition target for strategic buyers like Coterra and others.
The company’s operational execution has been solid, as evidenced by its recent earnings beat, with Ovintiv reporting strong production figures and significant free cash flow generation.

Teck Resources Limited: Expanding Copper Production Capacity & An Insight Into Its Business Strategy! – Major Drivers

Teck Resources Limited, a diversified resource company, has undergone significant transformation, particularly emphasized in its Q2 2024 earnings report.
The sale of its steelmaking coal business has strategically repositioned Teck as a company with a pure focus on metals vital for global development and the transition to renewable energy.
This report encapsulates both the financial and operational milestones reached during the quarter, alongside future prospects and challenges.

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Oct 06

Daily Brief Financials: Shin Kong Financial Holding and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

Last Week in Event SPACE: Shin Kong/Taishin, ASMPT, Korea Zinc/Young Poong Precision, Sigma Health

Last Week in Event SPACE: Shin Kong/Taishin, ASMPT, Korea Zinc/Young Poong Precision, Sigma Health

Taishin‘s bid clearly has governance/related party issues and a significant portion of the “non-Taishin” reps on the Shin Kong Board had issues. October 9th passage is not a done deal.
KKR’s “bid” for ASMPT (522 HK) has all the hallmarks of the “approach” by PAG last year. Which came to nought. From a regulatory standpoint, it’s unlikely to get up.
Never a dull moment for Korea Zinc (010130 KS). The Choi family makes Offers for KZ and Young Poong Precision (036560 KS) (YPP). Then MBK counters for both.

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Oct 06

Daily Brief TMT/Internet: Kokusai Electric , Ibiden Co Ltd, Alphabet, NVIDIA Corp, Reservoir Media , Endava PLC, Factset Research Systems Inc, Corpay, Clear Secure, Lalatech Holdings Co Ltd and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

Quiddity Mar25 Nikkei 225 Rebal: Likely 2 IN, 2 OUT, Again; Minimal Surprise Factor
Shinko Electric (6967 JP) Takeover – Still Buy Dips, and Ibiden (4062 JP)
Google Q3 2024 Earnings Preview: AI Investments, Antitrust Battles, and Advertising in Focus
NVIDIA’s “Insane” Blackwell Demand & The New NVLM Model – Can It Redefine AI Computing in 2025?
Why Reservoir Media May Be Significantly Undervalued – Irenic Capital’s Bold Take!
Endava plc: Partnership With OpenAI
FactSet Research Systems: How Is It Dealing With The Risk of Aligning With Evolving Data Demands & Other Challenges? – Major Drivers
Corpay Inc.: Product Innovation & Market Fit As A Key Growth Catalyst! – Major Drivers
Clear Secure Inc.: How Will It Deal With The Challenge of Scaling Infrastructure Reliably? – Major Drivers
Lalatech IPO | Review of H124 Financials & Operating Stats | Strike While the Iron Is Hot-Ish?

Quiddity Mar25 Nikkei 225 Rebal: Likely 2 IN, 2 OUT, Again; Minimal Surprise Factor

The Sep24 Nikkei 225 Rebal was odd. They could have done 3. They did 2. For now, I see 2 IN and 2 OUT for the Mar25 Nikkei 225 Rebal.
There is also a capping event for Fast Retailing which on mild outperformance could become a double-capping event.
There is a bit of a tech bent to potential ADDs. Some Consumer Goods stocks need stock splits to get in. The Committee will regret not adding PPIH last time.

Shinko Electric (6967 JP) Takeover – Still Buy Dips, and Ibiden (4062 JP)

In August, Shinko Electric Industries (6967 JP) announced that the JIC consortium Tender Offer due to be launched by end-August would be delayed. Next update? January 2025.
Everyone had expected a delay, but the stock fell. Then tech/AI fell out of bed, Ibiden crashed, China export restrictions noise/pushback caused further upset. But Ibiden and tech are rebounding.
At 9% it was a raging buy;post-dip at 7% it was good. Now it’s 6+%. Still wide, still interesting, still stable but year-end path dependency… So I still like Ibiden.

Google Q3 2024 Earnings Preview: AI Investments, Antitrust Battles, and Advertising in Focus

By Uttkarsh Kohli

Google’s AI infrastructure spending remains a priority, with capex exceeding $12 billion per quarter, highlighting aggressive expansion in cloud and AI-driven services.
Competition from Meta and TikTok has pressured Google’s advertising, especially YouTube. Q3 performance will gauge its ability to maintain dominance in digital ads.
Ongoing antitrust trials pose a long-term risk to Google’s business operations, particularly in search and advertising. Potential regulatory action could impact future growth strategies.

NVIDIA’s “Insane” Blackwell Demand & The New NVLM Model – Can It Redefine AI Computing in 2025?

NVIDIA (NASDAQ: NVDA) is on the brink of yet another significant leap in AI computing with its latest Blackwell GPU, as CEO Jensen Huang recently emphasized in an interview with CNBC.
Describing the demand as “insane,” Huang noted that Blackwell is already in full production and on track to be released to data centers for AI applications, with consumer availability slated for 2025.
The company’s growth, particularly in its Data Center division, has been fueled by AI workloads, driven by GPU computing, networking platforms, and accelerated AI demand.

Why Reservoir Media May Be Significantly Undervalued – Irenic Capital’s Bold Take!

Reservoir Media, a company known for its engagement with talent and diverse music assets, delivered mixed results in its first quarter of fiscal year 2025.
Like many companies in the music industry, it is navigating a complex landscape influenced by digital transformations and global market trends.
On the positive side, Reservoir Media experienced notable growth in its Music Publishing segment, showing a 15% increase in revenue.

Endava plc: Partnership With OpenAI

Endava, a global IT services provider, recently reported its earnings for the fourth quarter and the full fiscal year 2024.
Amid a challenging economic climate, the company underscored its strategic maneuvers and repositioning efforts, all while navigating noticeable headwinds in revenue growth, client demand fluctuations, and transformative industry shifts influenced by advancements in artificial intelligence (AI).
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.

FactSet Research Systems: How Is It Dealing With The Risk of Aligning With Evolving Data Demands & Other Challenges? – Major Drivers

FactSet, a global financial data and software company, recently disclosed its fourth quarter and full-year fiscal 2024 results.
The company reported an annual organic ASV plus professional services growth of $104 million or 4.8%, a figure aligning with its forecasts.
Its total annual revenue climbed to $2.2 billion while adjusted operating margin improved to 37.8%, and adjusted earnings per share (EPS) increased to $16.45, evidencing a 12.3% growth.

Corpay Inc.: Product Innovation & Market Fit As A Key Growth Catalyst! – Major Drivers

The latest earnings for Corpay outlined a comprehensive narrative of the company’s financial performance for the second quarter of 2024, its progress in addressing challenges, and strategic actions aimed at shaping its business landscape.
Starting with financials, Corpay reported that its Q2 2024 revenue stood at $976 million, marking a 7% increase, excluding the impact from the Russian market.
The adjusted cash EPS was announced to be at $4.55, up by 14%, also excluding Russia.

Clear Secure Inc.: How Will It Deal With The Challenge of Scaling Infrastructure Reliably? – Major Drivers

Clear Secure remains steadfast in its commitment to grow its member base, enhance the customer experience, and improve its financial stability, with several significant developments detailed in the fiscal second quarter 2024 earnings call.
The company reported robust growth, adding 2.3 million new members, and highlighted its innovative projects, like the implementation of new technologies to make travel and identity verification smoother and more integrated.
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.

Lalatech IPO | Review of H124 Financials & Operating Stats | Strike While the Iron Is Hot-Ish?

By Daniel Hellberg

In a new filing with HKEX, we can see Lalatech’s revenue growth slow
The company’s grip on CoR loosened, but OpEx growth in H1 was minimal
Given improving market conditions, we believe Lalatech may finally sell shares

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Oct 06

Daily Brief Health Care: Sihuan Pharmaceutical Hldgs, IHH Healthcare, Avantor , Penumbra and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

China Healthcare Weekly (Oct.6) – WuXi to Sell Assets, Be Rational on China CXO, Sihuan Underperform
IHH Healthcare (IHH MK): Sturdy Performance; Core Markets Remain Strong: Expansion Plans on Track
Avantor Inc.: How Is The Pricing Strategy Resulting In Gross Margin Improvement? – Major Drivers
Penumbra Inc.: How Is It Expanding into International Markets

China Healthcare Weekly (Oct.6) – WuXi to Sell Assets, Be Rational on China CXO, Sihuan Underperform

By Xinyao (Criss) Wang

Investors always have expectations for Chinese CXOs, believing that BIOSECURE Act will not pass and Chinese CXOs will bottom out. We can understand this, but we have to be rational.
Selling the operations that have been negatively affected is a reasonable choice, which helps stabilize WuXi’s business/market expectations. But this does not necessarily mean the geopolitical conflict will end here.
Without persuasive long-term logic, share price of Sihuan would still underperform. Despite strong performance of Chinese stocks, we advise investors to do short-term trading on Sihuan Pharmaceutical Hldgs (460 HK).

IHH Healthcare (IHH MK): Sturdy Performance; Core Markets Remain Strong: Expansion Plans on Track

By Tina Banerjee

IHH Healthcare (IHH MK) remains consistent in delivering double-digit growth across key metrics. 2Q24 revenue increased 17%, while EBITDA grew at a faster pace of 22%.
Singapore, Turkiye & Europe, India, Malaysia show strength with favorable patient mix, higher occupancy, and higher revenue per in-patient.
IHH is on track to add ~4,000 beds (+33% capacity) by 2028. The company is acquiring Island Hospital, a 600-bed hospital in Penang.

Avantor Inc.: How Is The Pricing Strategy Resulting In Gross Margin Improvement? – Major Drivers

Avantor recently reported its second-quarter results for the fiscal year 2024.
This call provided detailed insights into the company’s earnings and strategic developments.
Financial performance showed a reported revenue of $1.7 billion with an organic decline of 2%, indicating a sequential improvement in key metrics, reflecting stable conditions in the lab segment and increased demand in the production sphere.

Penumbra Inc.: How Is It Expanding into International Markets

The second quarter 2024 financial results for Penumbra, Inc. reveal a combination of strengths and challenges that frame the investment outlook for the company.
In Q2 2024, Penumbra reported revenues of $299.4 million, reflecting a 14.5% increase year-over-year, driven particularly by robust performance in the U.S. thrombectomy market, which saw a growth of 25% compared to the same period in the previous year.
This growth was predominantly fueled by strong demand for the company’s CAVT products in both venous thromboembolism (VTE) and arterial sectors.

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Oct 06

Daily Brief Consumer: Descente Ltd, TCL Corp (A), TSE Tokyo Price Index TOPIX, Tesla , General Mills, Darden Restaurants, Cable One Inc and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

(Mostly) Asia-Pac M&A: Descente, Shin Kong Financial, T Gaia, Shinsegae E&C, MPHB, Pacific Smiles
TCL Acquires LG Display’s LCD Plants in Guangzhou as Industry Consolidates
Will TSE’s Mock Engagement Measures Work?
Tesla’s Q3 Delivery Report, Leadership Shakeup & Cybertruck Recalls: Should Investors Be Worried?
General Mills Inc.: A Tale Of Strategic Divestitures & Bolt-On Acquisitions! – Major Drivers
Darden Restaurants Inc.: Expanded Delivery Partnerships & Menu Enhancements Can Catalyze Growth? – Major Drivers
Cable One Inc.: Network Investments & Multi-Gig Speeds Are Driving Our Optimism! – Major Drivers

(Mostly) Asia-Pac M&A: Descente, Shin Kong Financial, T Gaia, Shinsegae E&C, MPHB, Pacific Smiles

I tally 44 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
Three new deals discussed this week: T Gaia (3738 JP)‘s and Shinsegae E&C (034300 KS) Tender Offers, and MPHB (MPHB MK)‘s SCR. Plus ASMPT (522 HK) in the crosshairs. Again.
Key updates took place on: Sigma Healthcare (SIG AU), Descente Ltd (8114 JP), Shin Kong Financial Holding (2888 TT), Pacific Smiles (PSQ AU), and Greatview Aseptic Packaging (468 HK).

TCL Acquires LG Display’s LCD Plants in Guangzhou as Industry Consolidates

By Caixin Global

TCL Technology Group Corp.
(000100.SZ +7.51%), a leading Chinese electronics maker, has agreed to pay 10.8 billion yuan ($1.54 billion) to acquire LG’s two display factories in Guangzhou, as Chinese manufacturers strengthen their dominance in the liquid crystal displays (LCD).
TCL China Star Optoelectronics Technology (TCL CSOT), a subsidiary of TCL Technology, will acquire 80% of LG Display China and the entire stake of LG Display Guangzhou.

Will TSE’s Mock Engagement Measures Work?

By Aki Matsumoto

TSE’s classification translates into three groups: companies which can independently increase capital profitability, companies which haven’t yet fully implemented plans, and companies which haven’t yet responded to “TSE’s request.”
Mock engagements by TSE, which doesn’t have voting rights, will be focused on whether they actually make the company think about management strategies and implement them, thereby increasing corporate value.
To help companies effectively implement “TSE’s request,” an idea would be to offer time-limited discount on listing fee paid to TSE by companies that have significantly increased their market capitalization.

Tesla’s Q3 Delivery Report, Leadership Shakeup & Cybertruck Recalls: Should Investors Be Worried?

Tesla’s third-quarter 2024 report has left investors with more questions than answers.
The company delivered 462,890 vehicles, narrowly missing analysts’ estimates and triggering a 2% decline in premarket trading.
While Tesla remains a dominant force in the electric vehicle (EV) industry, it faces mounting challenges, including increased competition, leadership shakeups, and frequent product recalls.

General Mills Inc.: A Tale Of Strategic Divestitures & Bolt-On Acquisitions! – Major Drivers

General Mills noted a slight improvement in the macro environment, with North America Retail categories experiencing some growth.
However, this wasn’t attributed significantly to a permanent shift in consumer behavior towards more at-home food consumption, but rather a reaction to current economic stresses where at home meals remain a more economical option for consumers than eating out.
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.

Darden Restaurants Inc.: Expanded Delivery Partnerships & Menu Enhancements Can Catalyze Growth? – Major Drivers

Darden Restaurants, Inc. has reported its financial performance for the first quarter of fiscal year 2025, exhibiting mixed results that underscore the prevailing challenges and operational strides within the competitive dining industry.
Despite burgeoning industry headwinds and a dip below expectations for the quarter, Darden’s strategic maneuvers and robust brand portfolio continue to fortify its market position.
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.

Cable One Inc.: Network Investments & Multi-Gig Speeds Are Driving Our Optimism! – Major Drivers