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Smartkarma Daily Briefs

Sep 21
0

Daily Brief China: Hang Seng Index, Sands China, SGX Rubber Future TSR20 and more

By | China, Daily Briefs

In today’s briefing:

  • EQD | HSI September Rally: What’s Next?
  • The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (September 20)
  • EV War Hots Up; China Firms Branch Out To Outside Countries

EQD | HSI September Rally: What’s Next?

By Nico Rosti

  • We continue our coverage of the Hang Seng Index : in our previous insight we theorized a continuation of the rally in September.
  • So far the index is following the path outlined (pullback, then rally). What is going to happen in the next few weeks, if September closes up?
  • Broadly speaking we see a potential continuation of the rally in October, but there may be some resistance in the short-term.

The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (September 20)

By David Mudd

EV War Hots Up; China Firms Branch Out To Outside Countries

By Vinod Nedumudy

  • US ADD measure expected to be in force from Sept 27
  • Bombarded by Chinese exports Canada too join ADD league
  • Tesla exports from China faces ADD in Canada, EU excuses

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Sep 21
0

Daily Brief Japan: Fuji Soft Inc, Tokyo Metro, Japan System Techniques Co, SanBio Co Ltd, Geo Holdings, TSE Tokyo Price Index TOPIX and more

By | Daily Briefs, Japan

In today’s briefing:

  • Fuji Soft (9749) – As Bain Prepares to Go Higher, KKR Goes Lower
  • Tokyo Metro (9023 JP): IPO Listing & Fast-Entry Approved
  • Japan System Techniques (4323 JP) – Full Report
  • SanBio Co Ltd (4592 JP): Conditional Approval for First Drug; Still a Long Way to Go
  • Geo Holdings (2681 Jp) – Q1 FY3/25 Results Update
  • Will the Challenges that Have Taken a Decade to Make Progress Finally Be Resolved?

Fuji Soft (9749) – As Bain Prepares to Go Higher, KKR Goes Lower

By Travis Lundy

  • Yesterday, KKR amended its plans to take over Fuji Soft Inc (9749 JP) by creating a Two-Tender Scheme, effectively lowering the threshold for eventual success through clearly coercive tactics.
  • 3D (23.46%) and Farallon (9.22%) had already tendered. Contractual terms make it difficult (not impossible) to withdraw. Assuming it goes through, KKR has 32.68%, quasi-negative control. 
  • This revised structure is clearly abusive of minorities and NOT the deal Fuji Soft signed. This should cause Fuji Soft to Change their Opinion. Shareholder (and Bain) Pressure would help.

Tokyo Metro (9023 JP): IPO Listing & Fast-Entry Approved

By Dimitris Ioannidis

  • Tokyo Metro (TKYMETRO JP) is scheduled to go public on 23 October 2024 with an IPO valuation of ~$4.4bn and a float market cap of ~$2.2bn.
  • Fast-Entry for the one Global Index is expected at the close of 29 October 2024 with forecasted demand of ~17.4m shares and ~$133m.
  • Quarterly inclusion at the May 2025 review has a higher probability with a slight price rally or an elevated IPO offering price. Forecasted demand is ~23.2m shares and ~$177m.

Japan System Techniques (4323 JP) – Full Report

By Sessa Investment Research

  • Japan System Techniques Co., Ltd. (hereafter, JAST or the Company) is an independent system integrator that celebrated its 50th anniversary in March 2023.
  • The Company develops systems for customers across a wide range of industries in a variety of fields, including finance, manufacturing, distribution, services, public services, telecommunications, transportation, and science and technology.
  • It also offers four in-house JAST branded services, including the GAKUEN series of strategic university management systems for the education industry as well as the BankNeo integrated information system for financial institutions. 

SanBio Co Ltd (4592 JP): Conditional Approval for First Drug; Still a Long Way to Go

By Tina Banerjee

  • SanBio Co Ltd (4592 JP) received conditional and time-limited marketing approval for Akuugo suspension for intracranial implantation in Japan, for improving chronic motor paralysis resulting from traumatic brain injury.
  • The company will run two or so rounds of commercial production to accumulate inventories in preparation for launch. The earliest possible timing for shipment is assumed to be Q1FY26.
  • SanBio has a cash runway through H1FY26. However, operating expenses will decrease and Akuugo will start generating revenue by H1FY26, thereby providing some more cushion to cash runway.

Geo Holdings (2681 Jp) – Q1 FY3/25 Results Update

By Astris Advisory Japan

  • Q1 FY3/25 earnings look negative at first glance, with both sales and operating profit falling. However, the details show strong demand for GEO HOLDINGS’ core second-hand fashion business and smartphone sales, helping gross profit increase.
  • The key earnings drivers were a fall in sales (-6.2% YoY to ¥100.15bn) due to difficult annual comps from new games sales.
  • However, GEO HOLDINGS’ core second-hand fashion business and smartphones enjoyed robust demand, thanks to new store openings at home and overseas.

Will the Challenges that Have Taken a Decade to Make Progress Finally Be Resolved?

By Aki Matsumoto

  • Without the driving force to generate cash flow in excess of the discount rate (cost of capital), there is not enough power to push stock valuations higher and higher.
  • The fact that 8% ROE is the threshold at which valuations change means that investors consider the cost of capital for Japanese equities to be roughly 8% on average.
  • Little progress has been made since 10 years ago, when the Ito Report advocated “shift to corporate value management with an awareness of capital efficiency” and “engagement of institutional investors.”

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Sep 21
0

Most Read: Yancoal Australia, Exedy Corp, Tokyo Metro, CELSYS, Elan Corp, Fuji Soft Inc, Korea Zinc, HLB Therapeutics and more

By | Daily Briefs, Most Read

In today’s briefing:

  • S&P/​​​​ASX Index Rebalance (Sep 2024): Two Big Surprises; Positioning Is Mixed
  • [JAPAN ACTIVISM] Murakami Group Now 19+% on Exedy (7278) – LOTS of Room Left To Run
  • Tokyo Metro IPO Early Look – Could Raise Around US$2bn While Still Recovering from COVID
  • Fuji Soft (9749 JP): Checkmate as KKR Switches to a Two-Stage Tender
  • TOPIX Inclusions: Who Is Ready (September 2024)
  • M3 (2413 JP) Launches Partial Offer To Take Control of Elan (6099 JP)
  • Fuji Soft (9749) – As Bain Prepares to Go Higher, KKR Goes Lower
  • Young Poong Precision (036560 KS) Also Now Trading Through Terms
  • Details of MBK’s Four Major Concerns on Management of Korea Zinc
  • Will New KOSDAQ 150 Member HLB Therapeutics Show Webzen-Like Price Moves?

S&P/​​​​ASX Index Rebalance (Sep 2024): Two Big Surprises; Positioning Is Mixed

By Brian Freitas

[JAPAN ACTIVISM] Murakami Group Now 19+% on Exedy (7278) – LOTS of Room Left To Run

By Travis Lundy

  • In late May, Toyota Group member Aisin (7259 JP) announced it would sell its 37% stake in Exedy Corp (7278 JP) . The market dropped. But that was the opportunity.
  • On 30 May, I said “Buy the deal, buy in the market. It’s cheap and vulnerable.” It’s up 21.5% since (the day after). Peers are down 15-20%. 
  • The company completed its buyback. Murakami Group bought more. The stock (pro-forma) is at 0.62x book, 0.54x book for the non-cash portion. There’s LOTS of cash left. 

Tokyo Metro IPO Early Look – Could Raise Around US$2bn While Still Recovering from COVID

By Sumeet Singh

  • Tokyo Metro (TKYMETRO JP)’s shareholders, the Japanese and Tokyo Metropolitan Governments, could look to raise up to US$2bn by selling half of their stake via an IPO.
  • Tokyo Metro is one of the two metro network operators in the Tokyo region. It operates nine subway lines.
  • In this note, we take an early look at the possible listing.

Fuji Soft (9749 JP): Checkmate as KKR Switches to a Two-Stage Tender

By Arun George

  • KKR has rejigged its Fuji Soft Inc (9749 JP) tender offer into a two-stage offer at an unchanged JPY8,800 price. The first stage has no minimum acceptance condition. 
  • The first stage is designed to facilitate KKR’s acquisition of 3D and Farallon shares, which have tendered and will not withdraw their tenders without KKR’s consent.
  • By securing 3D/Farallon’s shares, KKR has effectively blocked a Bain tender offer. Bain could launch a partial offer but it would be constrained by the tradeable share ratio criteria.   

TOPIX Inclusions: Who Is Ready (September 2024)

By Janaghan Jeyakumar, CFA

M3 (2413 JP) Launches Partial Offer To Take Control of Elan (6099 JP)

By Travis Lundy

  • M3 Inc (2413 JP) will buy 50.1-55.0% of Elan Corp (6099 JP). Three principals+family have agreed to tender 50.1%. The premium is not huge. This is not an ATH. 
  • There will be synergies. I am a little surprised by the deal+price (CEO is young, why sell so cheaply so early?) but it should be good for the TargetCo.
  • There are possible post-tender complications on a high participation rate. I expect those can be cured relatively easily. 

Fuji Soft (9749) – As Bain Prepares to Go Higher, KKR Goes Lower

By Travis Lundy

  • Yesterday, KKR amended its plans to take over Fuji Soft Inc (9749 JP) by creating a Two-Tender Scheme, effectively lowering the threshold for eventual success through clearly coercive tactics.
  • 3D (23.46%) and Farallon (9.22%) had already tendered. Contractual terms make it difficult (not impossible) to withdraw. Assuming it goes through, KKR has 32.68%, quasi-negative control. 
  • This revised structure is clearly abusive of minorities and NOT the deal Fuji Soft signed. This should cause Fuji Soft to Change their Opinion. Shareholder (and Bain) Pressure would help.

Young Poong Precision (036560 KS) Also Now Trading Through Terms

By David Blennerhassett

  • On the 13th September, MBK joined Young Poong (000670 KS) in seeking control of Korea Zinc (010130 KS) via Partial Tender Offers for KZ and Young Poong Precision (036560 KS).
  • This situation has been canvassed by analysts here at Smartkarma; with increasing expectation the Choi family makes a counterbid.
  • This insight analyses the fair value of YPP. No matter how you slice it, the Offer Price is punchy. Perhaps not punchier enough.

Details of MBK’s Four Major Concerns on Management of Korea Zinc

By Douglas Kim

  • In this insight, we discuss in detail MBK’s four major concerns on the management of Korea Zinc. 
  • We believe that MBK has legitimate concerns on especially the three factors including poor investments, deteriorating profitability, and increase in equity capital/disposal of treasury shares. 
  • If and when the 2 trillion won+ is raised, then it could lead to another tender offer and the four concerns highlighted in this insight become much more important.

Will New KOSDAQ 150 Member HLB Therapeutics Show Webzen-Like Price Moves?

By Sanghyun Park

  • Jeisys Medical’s getting booted from the KOSDAQ 150, and HLB Therapeutics is stepping in as the new addition. This change will officially hit the book on Wednesday, September 25.
  • HLB Therapeutics, with a ₩0.70T market cap and 87% float, is set for a 0.51% weight in KOSDAQ 150, triggering over 2 million shares in passive buying: 3.26x 30-day ADTV.
  • With today’s after-hours volume spike in HLB Therapeutics, we’re likely to see some price action from early movers spilling into Monday’s open, similar to what we saw with Webzen.

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Sep 21
0

Daily Brief Industrials: Tokyo Metro, Robert Half Intl, Middleby Corp, Tetra Tech Inc, Fti Consulting, Knight Transportation, Landstar System, Stantec , Wesco International, WillScot Mobile Mini Holdings and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Tokyo Metro (9023 JP): IPO Listing & Fast-Entry Approved
  • Robert Half International Inc.: Initiation Of Coverage – Geographic Realignment and Global Growth Efforts! – Major Drivers
  • The Middleby Corporation: Initiation Of Coverage – Strengthened Dealer Channel Relationships & Other Major Drivers
  • Tetra Tech Inc.- A Tale Of International Market Expansion and Diversification! – Major Drivers
  • FTI Consulting Inc. – Enhancement of Technology and Economic Consulting Services
  • Knight-Swift Transportation Holdings: Initiation Of Coverage – Does It Have A Sustainable Competitive Advantage? – Major Drivers
  • Landstar System Inc.: Initiation Of Coverage – What Is Its Core Business Strategy? – Major Drivers
  • Stantec Inc.: Initiation Of Coverage – Will Its Focused Margin Improvement Strategies Work? – Major Drivers
  • WESCO International: Initiation Of Coverage – An Insight Into Its Core Business Strategy! – Major Drivers
  • WillScot Mobile Mini Holdings Corp. – Fleet Expansion & Key Developments!

Tokyo Metro (9023 JP): IPO Listing & Fast-Entry Approved

By Dimitris Ioannidis

  • Tokyo Metro (TKYMETRO JP) is scheduled to go public on 23 October 2024 with an IPO valuation of ~$4.4bn and a float market cap of ~$2.2bn.
  • Fast-Entry for the one Global Index is expected at the close of 29 October 2024 with forecasted demand of ~17.4m shares and ~$133m.
  • Quarterly inclusion at the May 2025 review has a higher probability with a slight price rally or an elevated IPO offering price. Forecasted demand is ~23.2m shares and ~$177m.

Robert Half International Inc.: Initiation Of Coverage – Geographic Realignment and Global Growth Efforts! – Major Drivers

By Baptista Research

  • Robert Half, a global provider of specialized staffing and consulting services, reported its second quarter 2024 earnings, showcasing a blend of strengths and challenges within its business operations.
  • The company reported consolidated revenues of $1.473 billion, reflecting a 10% decrease from the previous year on both reported and adjusted bases.
  • This decline aligns with broader industry trends, where client and candidate caution is being observed amid macroeconomic uncertainties and interest rate concerns.

The Middleby Corporation: Initiation Of Coverage – Strengthened Dealer Channel Relationships & Other Major Drivers

By Baptista Research

  • The Middleby Corporation, during their Second Quarter 2024 earnings call, presented a mixed scenario reflecting both strengths in strategic growth areas and the overarching pressure from macroeconomic conditions.
  • The discussion, led by CEO Timothy FitzGerald and supported by executives including CFO Bryan Mittelman and Chief Technology and Operations Officer James Pool, provided insights into various segments of the company’s operations.
  • 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.

Tetra Tech Inc.- A Tale Of International Market Expansion and Diversification! – Major Drivers

By Baptista Research

  • Tetra Tech’s third quarter earnings for fiscal year 2024 presented a robust picture of the company’s financial health and operational achievements.
  • The company reported a significant increase in net revenue, up 12% reaching $1.11 billion, setting a record for any quarter in the company’s history.
  • Additionally, Tetra Tech marked a substantial EBITDA growth of 32% to $129 million, evidencing a stronger margin improvement relative to revenue growth.

FTI Consulting Inc. – Enhancement of Technology and Economic Consulting Services

By Baptista Research

  • FTI Consulting’s latest earnings for the second quarter of 2024 reflect a period of robust performance and expansion.
  • The company reported an impressive revenue growth of 12%, predominantly attributed to organic sources, and a notable increase in adjusted EBITDA by 27% year-over-year.
  • While the quarter saw certain one time factors influencing the results, such as a lower-than-expected tax rate, the company’s management highlighted a strong operational performance across most of its operating segments and geographies.

Knight-Swift Transportation Holdings: Initiation Of Coverage – Does It Have A Sustainable Competitive Advantage? – Major Drivers

By Baptista Research

  • Knight-Swift Transportation, a prominent player in the transportation and logistics industry, recently disclosed its financial outcomes for the second quarter of 2024.
  • The results reveal a mixed performance characterized by both operational challenges and strategic progress.
  • This analysis endeavors to unpack the nuances of the earnings, providing a balanced perspective on Knight-Swift’s current standing and future outlook.

Landstar System Inc.: Initiation Of Coverage – What Is Its Core Business Strategy? – Major Drivers

By Baptista Research

  • Landstar Systems, Inc.’s second-quarter performance in 2024 reflected resilience against a backdrop of continuing challenges in the freight market characterized by soft demand and surplus truck capacity.
  • Despite these market conditions, the company managed to surpass the midpoint of its projected earnings, indicative of its robust business model and strategic operational adjustments.
  • As it navigates the latter half of the year, Landstar remains committed to spurring growth through focused initiatives and capital investment in technology and fleet enhancements.

Stantec Inc.: Initiation Of Coverage – Will Its Focused Margin Improvement Strategies Work? – Major Drivers

By Baptista Research

  • Based on the second quarter 2024 results for Stantec, the company experienced notable growth and has shown resilience amidst various market conditions.
  • Led by Gord Johnston, President and CEO, and Theresa Jang, EVP and CFO, Stantec reported strong performance across several metrics.
  • Stantec’s net revenue reached $1.5 billion, marking an increase of about 17% from Q2 2023.

WESCO International: Initiation Of Coverage – An Insight Into Its Core Business Strategy! – Major Drivers

By Baptista Research

  • WESCO International Inc. recently reported its financial results for the second quarter of 2024, showcasing a complex financial picture amidst a challenging economic environment.
  • The global provider of supply chain solutions and electrical products experienced a slight decline in overall sales, which did not fully meet the company’s expectations.
  • The total organic sales decreased by less than 1%, influenced by a mixed and multi speed economic background.

WillScot Mobile Mini Holdings Corp. – Fleet Expansion & Key Developments!

By Baptista Research

  • WillScot, during their Second Quarter 2024 earnings call, presented mixed financial results with an array of strategic initiatives paving the way forward.
  • CEO Bradley Soultz pointed out solid quarterly performance aligned with the company’s long-term targets, driven mostly by robust demand for larger-scale projects across various sectors such as industrial, manufacturing, energy, data centers, and infrastructure.
  • These sectors demonstrate an anticipated continued demand for WillScot’s modular product solutions, notably the company’s innovative FLEX offerings, extending beyond 2025.

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  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
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Sep 21
0

Daily Brief Industrials: Tokyo Metro, Robert Half Intl, Middleby Corp, Tetra Tech Inc, Fti Consulting, Knight Transportation, Landstar System, Stantec , Wesco International, WillScot Mobile Mini Holdings and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Tokyo Metro (9023 JP): IPO Listing & Fast-Entry Approved
  • Robert Half International Inc.: Initiation Of Coverage – Geographic Realignment and Global Growth Efforts! – Major Drivers
  • The Middleby Corporation: Initiation Of Coverage – Strengthened Dealer Channel Relationships & Other Major Drivers
  • Tetra Tech Inc.- A Tale Of International Market Expansion and Diversification! – Major Drivers
  • FTI Consulting Inc. – Enhancement of Technology and Economic Consulting Services
  • Knight-Swift Transportation Holdings: Initiation Of Coverage – Does It Have A Sustainable Competitive Advantage? – Major Drivers
  • Landstar System Inc.: Initiation Of Coverage – What Is Its Core Business Strategy? – Major Drivers
  • Stantec Inc.: Initiation Of Coverage – Will Its Focused Margin Improvement Strategies Work? – Major Drivers
  • WESCO International: Initiation Of Coverage – An Insight Into Its Core Business Strategy! – Major Drivers
  • WillScot Mobile Mini Holdings Corp. – Fleet Expansion & Key Developments!

Tokyo Metro (9023 JP): IPO Listing & Fast-Entry Approved

By Dimitris Ioannidis

  • Tokyo Metro (TKYMETRO JP) is scheduled to go public on 23 October 2024 with an IPO valuation of ~$4.4bn and a float market cap of ~$2.2bn.
  • Fast-Entry for the one Global Index is expected at the close of 29 October 2024 with forecasted demand of ~17.4m shares and ~$133m.
  • Quarterly inclusion at the May 2025 review has a higher probability with a slight price rally or an elevated IPO offering price. Forecasted demand is ~23.2m shares and ~$177m.

Robert Half International Inc.: Initiation Of Coverage – Geographic Realignment and Global Growth Efforts! – Major Drivers

By Baptista Research

  • Robert Half, a global provider of specialized staffing and consulting services, reported its second quarter 2024 earnings, showcasing a blend of strengths and challenges within its business operations.
  • The company reported consolidated revenues of $1.473 billion, reflecting a 10% decrease from the previous year on both reported and adjusted bases.
  • This decline aligns with broader industry trends, where client and candidate caution is being observed amid macroeconomic uncertainties and interest rate concerns.

The Middleby Corporation: Initiation Of Coverage – Strengthened Dealer Channel Relationships & Other Major Drivers

By Baptista Research

  • The Middleby Corporation, during their Second Quarter 2024 earnings call, presented a mixed scenario reflecting both strengths in strategic growth areas and the overarching pressure from macroeconomic conditions.
  • The discussion, led by CEO Timothy FitzGerald and supported by executives including CFO Bryan Mittelman and Chief Technology and Operations Officer James Pool, provided insights into various segments of the company’s operations.
  • 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.

Tetra Tech Inc.- A Tale Of International Market Expansion and Diversification! – Major Drivers

By Baptista Research

  • Tetra Tech’s third quarter earnings for fiscal year 2024 presented a robust picture of the company’s financial health and operational achievements.
  • The company reported a significant increase in net revenue, up 12% reaching $1.11 billion, setting a record for any quarter in the company’s history.
  • Additionally, Tetra Tech marked a substantial EBITDA growth of 32% to $129 million, evidencing a stronger margin improvement relative to revenue growth.

FTI Consulting Inc. – Enhancement of Technology and Economic Consulting Services

By Baptista Research

  • FTI Consulting’s latest earnings for the second quarter of 2024 reflect a period of robust performance and expansion.
  • The company reported an impressive revenue growth of 12%, predominantly attributed to organic sources, and a notable increase in adjusted EBITDA by 27% year-over-year.
  • While the quarter saw certain one time factors influencing the results, such as a lower-than-expected tax rate, the company’s management highlighted a strong operational performance across most of its operating segments and geographies.

Knight-Swift Transportation Holdings: Initiation Of Coverage – Does It Have A Sustainable Competitive Advantage? – Major Drivers

By Baptista Research

  • Knight-Swift Transportation, a prominent player in the transportation and logistics industry, recently disclosed its financial outcomes for the second quarter of 2024.
  • The results reveal a mixed performance characterized by both operational challenges and strategic progress.
  • This analysis endeavors to unpack the nuances of the earnings, providing a balanced perspective on Knight-Swift’s current standing and future outlook.

Landstar System Inc.: Initiation Of Coverage – What Is Its Core Business Strategy? – Major Drivers

By Baptista Research

  • Landstar Systems, Inc.’s second-quarter performance in 2024 reflected resilience against a backdrop of continuing challenges in the freight market characterized by soft demand and surplus truck capacity.
  • Despite these market conditions, the company managed to surpass the midpoint of its projected earnings, indicative of its robust business model and strategic operational adjustments.
  • As it navigates the latter half of the year, Landstar remains committed to spurring growth through focused initiatives and capital investment in technology and fleet enhancements.

Stantec Inc.: Initiation Of Coverage – Will Its Focused Margin Improvement Strategies Work? – Major Drivers

By Baptista Research

  • Based on the second quarter 2024 results for Stantec, the company experienced notable growth and has shown resilience amidst various market conditions.
  • Led by Gord Johnston, President and CEO, and Theresa Jang, EVP and CFO, Stantec reported strong performance across several metrics.
  • Stantec’s net revenue reached $1.5 billion, marking an increase of about 17% from Q2 2023.

WESCO International: Initiation Of Coverage – An Insight Into Its Core Business Strategy! – Major Drivers

By Baptista Research

  • WESCO International Inc. recently reported its financial results for the second quarter of 2024, showcasing a complex financial picture amidst a challenging economic environment.
  • The global provider of supply chain solutions and electrical products experienced a slight decline in overall sales, which did not fully meet the company’s expectations.
  • The total organic sales decreased by less than 1%, influenced by a mixed and multi speed economic background.

WillScot Mobile Mini Holdings Corp. – Fleet Expansion & Key Developments!

By Baptista Research

  • WillScot, during their Second Quarter 2024 earnings call, presented mixed financial results with an array of strategic initiatives paving the way forward.
  • CEO Bradley Soultz pointed out solid quarterly performance aligned with the company’s long-term targets, driven mostly by robust demand for larger-scale projects across various sectors such as industrial, manufacturing, energy, data centers, and infrastructure.
  • These sectors demonstrate an anticipated continued demand for WillScot’s modular product solutions, notably the company’s innovative FLEX offerings, extending beyond 2025.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Sep 21
0

Daily Brief Energy/Materials: Korea Zinc, Dragon Energy, SGX Rubber Future TSR20, Crude Oil, Condor Energies and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • Young Poong Precision (036560 KS) Also Now Trading Through Terms
  • Details of MBK’s Four Major Concerns on Management of Korea Zinc
  • What’s Missing from Lotus’s Study?
  • EV War Hots Up; China Firms Branch Out To Outside Countries
  • [ETP 2024/38] Oil Rises on Fed Rate Cut and Geopolitics; Nat-Gas Gains on Warmer Forecasts
  • Condor Energies Inc. (TSX: CDR): Further feed gas allocation in Kazakhstan is key step to derisking the 2nd high value LNG plant

Young Poong Precision (036560 KS) Also Now Trading Through Terms

By David Blennerhassett

  • On the 13th September, MBK joined Young Poong (000670 KS) in seeking control of Korea Zinc (010130 KS) via Partial Tender Offers for KZ and Young Poong Precision (036560 KS).
  • This situation has been canvassed by analysts here at Smartkarma; with increasing expectation the Choi family makes a counterbid.
  • This insight analyses the fair value of YPP. No matter how you slice it, the Offer Price is punchy. Perhaps not punchier enough.

Details of MBK’s Four Major Concerns on Management of Korea Zinc

By Douglas Kim

  • In this insight, we discuss in detail MBK’s four major concerns on the management of Korea Zinc. 
  • We believe that MBK has legitimate concerns on especially the three factors including poor investments, deteriorating profitability, and increase in equity capital/disposal of treasury shares. 
  • If and when the 2 trillion won+ is raised, then it could lead to another tender offer and the four concerns highlighted in this insight become much more important.

What’s Missing from Lotus’s Study?

By Money of Mine

  • Lotus released a scope and study for the Little Cane project in Botswana
  • The project hosts a low grade resource with 71% inferred
  • The study includes three scenarios for production and focuses on reducing the need for drill and blast operations, potentially using drag lines for waste removal.

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

EV War Hots Up; China Firms Branch Out To Outside Countries

By Vinod Nedumudy

  • US ADD measure expected to be in force from Sept 27
  • Bombarded by Chinese exports Canada too join ADD league
  • Tesla exports from China faces ADD in Canada, EU excuses

[ETP 2024/38] Oil Rises on Fed Rate Cut and Geopolitics; Nat-Gas Gains on Warmer Forecasts

By Suhas Reddy

  • For the week ending 13/Sep, US crude inventories dropped by 1.6m barrels, surpassing the expected 0.2m barrel decline. Gasoline stockpiles grew less than forecasted, while distillate inventories rose more.
  • US natural gas inventories rise 58 Bcf for the week ending 13/Sep, more than analyst expectations of a 53 Bcf buildup. Inventories are 8.6% above the 5-year seasonal average.
  • Chevron, Occidental Petroleum, and Exxon Mobil see target price cuts. DBS Bank initiated a Buy rating on Schlumberger and Halliburton.

Condor Energies Inc. (TSX: CDR): Further feed gas allocation in Kazakhstan is key step to derisking the 2nd high value LNG plant

By Auctus Advisors

  • Condor has received a second natural gas allocation to feed the second modular LNG plant near the Kuryk Port on the Caspian Sea.
  • The natural gas allocation will allow the company to produce the energy equivalent of 565,000 litres of diesel per day (~400 t/d of LNG).
  • This is line with the company’s targets and is a key milestone in derisking the Kuryk plant.

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  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
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Sep 21
0

Daily Brief Consumer: Ather Energy, Ola Electric, Sands China, Geo Holdings, TSE Tokyo Price Index TOPIX and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Ather Energy Pre-IPO Tearsheet
  • Ola Electric’s Negative Noise. Maruti Suzuki’s Electric Plans: India EV Update
  • The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (September 20)
  • Geo Holdings (2681 Jp) – Q1 FY3/25 Results Update
  • Will the Challenges that Have Taken a Decade to Make Progress Finally Be Resolved?

Ather Energy Pre-IPO Tearsheet

By Akshat Shah

  • Ather Energy (1207922D IN) is looking to raise about US$536m in its upcoming India IPO. The deal will be run by HSBC, Nomura, JM Fin and Axis.
  • Ather is a pure play electric vehicle company in India designing and developing E2Ws, battery packs, charging infrastructure, associated software and accessories, also manufacturing battery packs and assembling E2Ws in-house.
  • According to CRISIL, Ather was the third largest player by volume of E2W sales in FY24.

Ola Electric’s Negative Noise. Maruti Suzuki’s Electric Plans: India EV Update

By Devi Subhakesan

  • Ola Electric (OLAELEC IN) reportedly faces challenges with poor product service, leading to dissatisfied customers. This underscores the urgency to improve its service infrastructure and restore brand trust.
  • The Indian electric two-wheeler sector saw weak sales in August, following a robust July, with Ola experiencing a sharp decline in monthly volumes and a loss of market share.
  • Meanwhile, Maruti Suzuki India (MSIL IN)  is gearing up for a January 2025 EV launch and is preparing to establish a 25,000-unit charging infrastructure in advance.

The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (September 20)

By David Mudd

Geo Holdings (2681 Jp) – Q1 FY3/25 Results Update

By Astris Advisory Japan

  • Q1 FY3/25 earnings look negative at first glance, with both sales and operating profit falling. However, the details show strong demand for GEO HOLDINGS’ core second-hand fashion business and smartphone sales, helping gross profit increase.
  • The key earnings drivers were a fall in sales (-6.2% YoY to ¥100.15bn) due to difficult annual comps from new games sales.
  • However, GEO HOLDINGS’ core second-hand fashion business and smartphones enjoyed robust demand, thanks to new store openings at home and overseas.

Will the Challenges that Have Taken a Decade to Make Progress Finally Be Resolved?

By Aki Matsumoto

  • Without the driving force to generate cash flow in excess of the discount rate (cost of capital), there is not enough power to push stock valuations higher and higher.
  • The fact that 8% ROE is the threshold at which valuations change means that investors consider the cost of capital for Japanese equities to be roughly 8% on average.
  • Little progress has been made since 10 years ago, when the Ito Report advocated “shift to corporate value management with an awareness of capital efficiency” and “engagement of institutional investors.”

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Sep 21
0

Daily Brief Health Care: HLB Therapeutics , Grifols SA, SanBio Co Ltd and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Will New KOSDAQ 150 Member HLB Therapeutics Show Webzen-Like Price Moves?
  • Brookfield/Grifols: Recap and Analysis of Latest Developments
  • SanBio Co Ltd (4592 JP): Conditional Approval for First Drug; Still a Long Way to Go

Will New KOSDAQ 150 Member HLB Therapeutics Show Webzen-Like Price Moves?

By Sanghyun Park

  • Jeisys Medical’s getting booted from the KOSDAQ 150, and HLB Therapeutics is stepping in as the new addition. This change will officially hit the book on Wednesday, September 25.
  • HLB Therapeutics, with a ₩0.70T market cap and 87% float, is set for a 0.51% weight in KOSDAQ 150, triggering over 2 million shares in passive buying: 3.26x 30-day ADTV.
  • With today’s after-hours volume spike in HLB Therapeutics, we’re likely to see some price action from early movers spilling into Monday’s open, similar to what we saw with Webzen.

Brookfield/Grifols: Recap and Analysis of Latest Developments

By Jesus Rodriguez Aguilar

  • Since Brookfield’s July 8 takeover interest for Grifols was announced, the situation has become complicated, with unclear pricing, funding challenges, and uncertainty about whether an offer will materialize or when.
  • Grifols operates in a consolidated plasma-derived therapies market with high entry barriers, and its current valuation of 8.6x NTM EBITDAe significantly undervalues it compared to CSL’s 19.2x.
  • B shares closed on September 20 in Madrid at a 17.3% discount to A shares. Paying this spread would be my favored approach to gain exposure to a potential offer.

SanBio Co Ltd (4592 JP): Conditional Approval for First Drug; Still a Long Way to Go

By Tina Banerjee

  • SanBio Co Ltd (4592 JP) received conditional and time-limited marketing approval for Akuugo suspension for intracranial implantation in Japan, for improving chronic motor paralysis resulting from traumatic brain injury.
  • The company will run two or so rounds of commercial production to accumulate inventories in preparation for launch. The earliest possible timing for shipment is assumed to be Q1FY26.
  • SanBio has a cash runway through H1FY26. However, operating expenses will decrease and Akuugo will start generating revenue by H1FY26, thereby providing some more cushion to cash runway.

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Sep 21
0

Daily Brief Financials: Hang Seng Index, Lippo Karawaci, Ethereum and more

By | Daily Briefs, Financials

In today’s briefing:

  • EQD | HSI September Rally: What’s Next?
  • Lippo Karawaci – Earnings Flash – H1 FY 2024 Results – Lucror Analytics
  • Crypto Moves #44 – Ethereum Will Shine Again

EQD | HSI September Rally: What’s Next?

By Nico Rosti

  • We continue our coverage of the Hang Seng Index : in our previous insight we theorized a continuation of the rally in September.
  • So far the index is following the path outlined (pullback, then rally). What is going to happen in the next few weeks, if September closes up?
  • Broadly speaking we see a potential continuation of the rally in October, but there may be some resistance in the short-term.

Lippo Karawaci – Earnings Flash – H1 FY 2024 Results – Lucror Analytics

By Trung Nguyen

Lippo Karawaci’s (LPKR) H1/24 results were robust in our view, with growth in all business segments pro forma for the deconsolidation of Siloam International Hospital (SILO). The new strategy and continued sell-down of SILO was a surprise. That said, the sales were carried out as SILO shares hit an all-time high, and at a very high valuation (PE ratio of almost 40x). The resulting cash proceeds and debt reduction are credit positive, and improved LPKR’s credit profile. If investment in listed associates are treated as cash, the company would have a large net cash position.

Crypto Moves #44 – Ethereum Will Shine Again

By Mads Eberhardt

  • Since the Ethereum merge on September 15, 2022, Ethereum has dropped 48% compared to Bitcoin.
  • This Sunday marked the two-year anniversary of the Ethereum merge, during which it switched from Proof-of-Work to Proof-of-Stake.
  • As part of this transition, Ethereum’s issuance of new Ether was sharply reduced from 4% to less than 1% annually.

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Sep 21
0

Daily Brief TMT/Internet: Fuji Soft Inc, Japan System Techniques Co, Tianshui Huatian Technology Co, Ltd., Wex Inc and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Fuji Soft (9749) – As Bain Prepares to Go Higher, KKR Goes Lower
  • Japan System Techniques (4323 JP) – Full Report
  • Tech Supply Chain Tracker (21-Sep-2024): Samsung unlikely to follow Intel’s spinoff.
  • WEX Inc.: Initiation Of Coverage – A Focused Approach on Electric Vehicle Market Integration & Other Major Drivers

Fuji Soft (9749) – As Bain Prepares to Go Higher, KKR Goes Lower

By Travis Lundy

  • Yesterday, KKR amended its plans to take over Fuji Soft Inc (9749 JP) by creating a Two-Tender Scheme, effectively lowering the threshold for eventual success through clearly coercive tactics.
  • 3D (23.46%) and Farallon (9.22%) had already tendered. Contractual terms make it difficult (not impossible) to withdraw. Assuming it goes through, KKR has 32.68%, quasi-negative control. 
  • This revised structure is clearly abusive of minorities and NOT the deal Fuji Soft signed. This should cause Fuji Soft to Change their Opinion. Shareholder (and Bain) Pressure would help.

Japan System Techniques (4323 JP) – Full Report

By Sessa Investment Research

  • Japan System Techniques Co., Ltd. (hereafter, JAST or the Company) is an independent system integrator that celebrated its 50th anniversary in March 2023.
  • The Company develops systems for customers across a wide range of industries in a variety of fields, including finance, manufacturing, distribution, services, public services, telecommunications, transportation, and science and technology.
  • It also offers four in-house JAST branded services, including the GAKUEN series of strategic university management systems for the education industry as well as the BankNeo integrated information system for financial institutions. 

Tech Supply Chain Tracker (21-Sep-2024): Samsung unlikely to follow Intel’s spinoff.

By Tech Supply Chain Tracker

  • Samsung unlikely to follow Intel in spinning off its foundry business, focusing on their own semiconductor production.
  • Marvell co-founder Sehat Sutardja passes away, leaving a void in the semiconductor industry mourning the loss of a visionary.
  • HTC launches VIVE Focus Vision with advanced XR features for gamers and enterprises, aiming to capture a niche market.

WEX Inc.: Initiation Of Coverage – A Focused Approach on Electric Vehicle Market Integration & Other Major Drivers

By Baptista Research

  • WEX’s Q2 2024 results present a mixed bag of performance and outlooks reflecting challenges alongside achievements.
  • The company registered a record quarterly revenue of $673 million, an 8% year-over-year increase, attributable to growth across all three segments.
  • Adjusted net income per diluted share was $3.91, marking an 8% climb from the previous year.

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