Smartkarma Daily Briefs

AppLovin’s financial performance for the fourth quarter of 2024 indicates a pivotal shift in its operational focus and growth strategy.
Over the quarter, total revenue increased by 44% year-over-year to $1.37 billion, fueled significantly by an expanded advertising business that brought in $999 million in revenue.
The company’s adjusted EBITDA surged by 78% to $848 million, maintaining a healthy margin of 62%.

Pegasystems Inc.: Can its Focus On Cloud Migration Position It As A Leader In Driving Digital Evolution?

Pegasystems, a leader in software solutions for customer engagement and operational efficiency, demonstrated a robust performance in its fiscal year 2024.
The company reached its strategic milestone of becoming a “Rule of 40” company, reflecting balanced growth and profitability.
This achievement highlights the successful execution of its transition strategy from a traditional sales model to a subscription-based cloud business.

Wyndham Hotels & Resorts: A Tale Of Acceleration of Global Room Growth & RevPAR Expansion!

Wyndham Hotels & Resorts had a solid fourth quarter and full-year 2024 performance, marked by robust room growth, increased earnings, and strategic initiatives aimed at enhancing long-term positioning.
However, some areas presented challenges that could affect future performance.
Positively, the company reported a 4% net room growth for the year, which included opening a record 69,000 rooms.

Albemarle Corporation: These Recent Lithium Market Shifts & Diversification Moves Could Reshape Its Future!

Albemarle Corporation presented its financial performance for the fourth quarter and full year of 2024, highlighting several critical aspects of the company’s operations, financial health, and market dynamics.
The fourth quarter saw Albemarle reporting net sales of $1.2 billion, although this marked a decline primarily attributed to lower lithium market pricing.
Nevertheless, the company achieved a positive milestone with an adjusted EBITDA of $251 million, showing enhancements in productivity, cost efficiency, and sales volumes across its business segments.

CVS Health: $97.7 Billion Revenue and a New CEO – Can It Overcome Industry Challenges?

CVS Health investors saw a significant turnaround as the company delivered better-than-expected quarterly earnings, fueling a sharp 14.8% rise in stock price—the largest one-day gain since 2008.
This surge follows a tumultuous 2024 when the stock fell over 40% due to challenges across its core businesses, including rising medical costs in its insurance segment, regulatory scrutiny on its pharmacy-benefit manager, and financial pressures on its retail pharmacy chain.
However, with a new CEO at the helm, the company is focused on restoring investor confidence and executing a strategic recovery plan.

Curtiss-Wright: The Resilience & Adaptation to Economic & Policy Shifts!

Curtiss-Wright Corporation’s latest earnings report reflects a balanced outlook with both growth opportunities and challenges.
The company reported a 5% year-over-year increase in sales for the fourth quarter of 2024, driven primarily by strong performances in its Defense Electronics and Naval & Power segments.
However, operating income remained flat, with an operating margin holding steady at 19.8%.

Kraft Heinz: Market Share Expansion in Key Product Categories & Key Growth Levers!

The Kraft Heinz Company recently released its fourth-quarter 2024 earnings, providing insights into its financial performance and strategic focus.
The company navigated a challenging year, emphasizing efforts to bolster profit margins and enhance free cash flow, even amidst a tumultuous economic environment.
One notable achievement was Kraft Heinz’s return of $2.7 billion to shareholders through share buybacks and dividends, highlighting its commitment to shareholder value.

Cisco Systems Inc.: Is The Global Public Sector Strength A Sturdy Growth Foundation?

Cisco Systems, Inc. recently reported strong financial performance for the second quarter of fiscal year 2025.
The company delivered revenue, margins, and earnings per share at or above their guidance range, underscoring robust demand for its technology portfolio.
Total revenue reached $14 billion, up 9% year-over-year.

HubSpot: These Big Bets Could Define Its Future in CRM and AI!

HubSpot reported a solid financial performance in 2024, achieving 21% year-over-year revenue growth both in constant currency and as reported.
This growth signifies strong brand trust and platform efficiency, as evidenced by the customer base extending to approximately 248,000, marking an annual increase of 21%.
The company has balanced scaling with profitability, yielding a 17.5% operating margin for the year, a rise of 200 basis points from the previous year.

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Feb 23

Daily Brief China: Alibaba Group Holding , Horizon Robotics, Hang Seng Index, Bilibili , Ping An Healthcare and Technology and more

By Smartkarma Daily Briefs | China, Daily Briefs

In today’s briefing:

Alibaba – How to Position Post Earnings Amid Sticky Volatility
Hang Seng Internet & IT Index Rebalance: Five Changes with First De-SPAC Listing In
Hang Seng Index (HSI) Rebalance: Does Anyone Know What the Index Committee Is Thinking?
[Bilibili Inc. (BILI US, BUY, TP US$24) Target Price Change]: C3Q24 Review: Game Slowdown from C2Q25
HSCI Index Rebalance: 29 Adds, 41 Deletes & Changes to Southbound Stock Connect
China Healthcare Weekly (Feb.23)-Ping An Good Doctor Shares Surge, China Healthcare Has Bottomed Out

Alibaba – How to Position Post Earnings Amid Sticky Volatility

By John Ley

Alibaba had a super charged move this week, risking 14.56% on its earnings release.
We look at how price movement and volatility evolve in the month after earnings releases.
Recommendations are made on how to position through options in this environment of enhanced volatility.

Hang Seng Internet & IT Index Rebalance: Five Changes with First De-SPAC Listing In

There will be 5 changes for the Hang Seng Internet & Information Technology Index (HSIII Index) at the March rebalance. There is one surprise for us with Synagistics being added.
Estimated one-way turnover at the rebalance is 6.5% resulting in a round-trip trade of HK$3.74bn (US$482m). 4 stocks will have over 1x ADV to trade.
Horizon Robotics (9660 HK) is an add to the HSIII, Hang Seng TECH Index and HSCI. Inclusion in Southbound Stock Connect will take place in May.

Hang Seng Index (HSI) Rebalance: Does Anyone Know What the Index Committee Is Thinking?

We continue to be led down the garden path – no constituent changes for the Hang Seng Index (HSI INDEX) in March means we remain at 83 members.
Despite having an opportunity to add stocks to the index without increasing turnover, the index committee have done nothing. Which begs the question – what exactly are they waiting for?
Float and capping changes result in an estimated one-way turnover of 3.8% and the resulting round-trip trade is HK$16.7bn (US$2.15bn).

[Bilibili Inc. (BILI US, BUY, TP US$24) Target Price Change]: C3Q24 Review: Game Slowdown from C2Q25

By Ying Pan

Bilibili (BILI) reported C4Q24 revenue and GAAP operating profit in line, 87% vs. our estimates and in line, 130% vs. consensus.
We see BILI’s content strategy to be working to drive higher and better traffic, benefiting the ads business.
We BUY and raised our TP to US$24 awaiting further details on game pipeline. The stock trading at 2025 PE of 31x.

HSCI Index Rebalance: 29 Adds, 41 Deletes & Changes to Southbound Stock Connect

There are 29 adds and 41 deletes for the Hang Seng Composite Index (HSCI) at the March rebalance to take the number of index constituents down to 505.
We expect 27 of the 29 HSCI inclusions to be added to Stock Connect from the open on 10 March while Horizon Robotics (9660 HK) should be added in May.
We expect 28 of the 41 HSCI deletions will be removed from Stock Connect and there has been increased Southbound holding in a lot of the stock this calendar year.

China Healthcare Weekly (Feb.23)-Ping An Good Doctor Shares Surge, China Healthcare Has Bottomed Out

By Xinyao (Criss) Wang

In 2025, the NHSA will continue to deepen the VBP of drugs and centralized procurement of medical consumables, covering 700 drug varieties in total.
Valuation of the entire industry has been sluggish for three years. With the positive changes, we think it is the time to be optimistic on China healthcare in 2025.
Due to the craze for DeepSeek/AI, PAGD’s stock price surged.Although this is a great story, the extent to which DeepSeek can bring substantial benefits to PAGD remains to be verified.

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Feb 23

Daily Brief Japan: Shinko Electric Industries, SCREEN Holdings, Fuji Soft Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Japan

In today’s briefing:

Last Week in Event SPACE: Shinko Electric, REA Group, Macromill, CNBM, Prosus/Tencent
Screen Holdings (7735 JP): 25%+ Upside Potential
(Mostly) Asia-Pac M&A: Domain Holdings, Mayne Pharma, Tam Jai, PEC Ltd, Canvest, Fuji Soft, Proto

Last Week in Event SPACE: Shinko Electric, REA Group, Macromill, CNBM, Prosus/Tencent

Shinko Electric Industries (6967 JP). Done. Finally. Look at whether you could borrow shares just before the close of the tender and short tender and buy back post ex-date
REA Group Ltd (REA AU) rolls over as Costar Group (CSGP US) bets big on key rival Domain Domain Holdings Australia (DHG AU).
Macromill (3978 JP)‘s tender extended. Still not a done deal. Look to buy shares at terms with the goal of NOT tendering and owning the back end.

Screen Holdings (7735 JP): 25%+ Upside Potential

By Scott Foster

FY Mar-25 guidance has been raised again after strong 3Q results. Growth should continue next fiscal year with rising demand from TSMC.
Sales to Chinese customers bounced back strongly last quarter, defying predictions. Capacity adds and process upgrades should continue to drive demand from China.
FPD, PCB and printing equipment are now profitable and should remain so. More efficient production and slower growth in depreciation should also support the operating margin.

(Mostly) Asia-Pac M&A: Domain Holdings, Mayne Pharma, Tam Jai, PEC Ltd, Canvest, Fuji Soft, Proto

I tally 58 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma.
Four new deals discussed this week: Domain Holdings Australia (DHG AU), Mayne Pharma (MYX AU), Tam Jai International (2217 HK), and PEC Ltd. (PEC SP).
Key updates/news took place on: Canvest Environmental Protection Group (1381 HK),Fuji Soft Inc (9749 JP), and Proto Corp (4298 JP).

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Feb 23

Most Read: Shift Inc, Xiaomi Corp, Britannia Industries, Mesoblast Ltd, Alibaba Group Holding , L&T Technology Services Limited, Horizon Robotics, Mayne Pharma and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

Nikkei 225 Index Rebalance: Performance of Potential Adds/Deletes & Positioning
Alibaba (9988 HK): Results This Week; Over US$1bn Passive Selling in 3 Weeks
Hang Seng Indexes: Announcement Today; Updated Flows (Some Big Ones)
India: March Rebalance Announcement Tomorrow; Round-Trip Trade Over US$2.5bn
S&P/ASX Index Rebalance Preview: Changes Stable as Adds Outperform Deletes Bigly
Alibaba – How to Position Post Earnings Amid Sticky Volatility
Nifty IT Index Rebalance: Oracle Financial Services Takes a Beating but Replaces L&T Tech
Hang Seng Internet & IT Index Rebalance: Five Changes with First De-SPAC Listing In
Mayne Pharma (MYX AU): Cosette Pharma’s Binding Offer at A$7.40
#107 India Insight: PhonePe Plans IPO, Adani Sees Growth, Gujarat Budget Boosts Economy

Nikkei 225 Index Rebalance: Performance of Potential Adds/Deletes & Positioning

The changes to the Nikkei 225 (NKY INDEX) as part of the March rebalance should be announced in just over 2 weeks. We expect 2-3 changes at the review.
The forecast adds have massively outperformed the forecast deletes and the Nikkei225 Index over every time period going back 3 months with the largest outperformance in the last month.
Positioning appears to be stretched in one forecast add while there appears to be under positioning in a couple of the forecast deletes.

Alibaba (9988 HK): Results This Week; Over US$1bn Passive Selling in 3 Weeks

Alibaba Group Holding (9988 HK) stock has rallied bigly over the last month and has gained 55% over that period.
That has led to Alibaba‘s weight in the HSI INDEX, HSCEI INDEX, HSTECH INDEX and HSIII Index rising above the cap of 8%/12% and passives will sell on 7 March.
We estimate passive trackers will need to sell US$1.2bn of stock due to capping. Shorts have been increasing, and quarterly results will be announced on 20 February.

Hang Seng Indexes: Announcement Today; Updated Flows (Some Big Ones)

Hang Seng Indexes announces changes to the Hang Seng Index, Hang Seng China Enterprises Index, Hang Seng TECH Index, HSIII Index and HSCI Index (among others) post market close today.
The net round-trip trade across the stocks is estimated to be HK$35bn (US$4.5bn) with big impact in a lot of stocks.
Capping will lead to most inflows to Meituan (3690 HK) while the largest outflows will be from Alibaba Group Holding (9988 HK) and Xiaomi Corp (1810 HK).

India: March Rebalance Announcement Tomorrow; Round-Trip Trade Over US$2.5bn

The Index Maintenance Sub-Committee of NSE Indices will meet on 21 February to conduct a semi-annual and quarterly review of stocks in various Nifty equity indices.
The changes will be announced after market close tomorrow and will be implemented at the close of trading on 28 March.
Based on the forecast index changes and capping changes for a few indices, the round-trip trade will be over US$2.5bn and many stocks will have over 0.5x ADV to trade.

S&P/ASX Index Rebalance Preview: Changes Stable as Adds Outperform Deletes Bigly

Nearing a few days left in the review period, there could be 39 adds/deletes across the S&P/ASX family of indices in March.
Passive trackers will need to trade a lot of stock in the forecast changes, with the impact being especially large for the changes to the S&P/ASX 200 and S&P/ASX 300.
Except for the S&P/ASX 200 (AS51 INDEX) that is heavily tracked, the performance of the forecast changes to the other indices has been very stable with adds outperforming deletes bigly.

Alibaba – How to Position Post Earnings Amid Sticky Volatility

By John Ley

Alibaba had a super charged move this week, risking 14.56% on its earnings release.
We look at how price movement and volatility evolve in the month after earnings releases.
Recommendations are made on how to position through options in this environment of enhanced volatility.

Nifty IT Index Rebalance: Oracle Financial Services Takes a Beating but Replaces L&T Tech

In line with our forecast, Oracle Financial Services (OFSS IN) replaces L&T Technology Services Limited (LTTS IN) in the Nifty IT Index (NSEIT INDEX) at the March rebalance.
L&T Technology Services (LTTS IN) is also being excluded from the F&O segment at the close on 27 March. Open interest is ~900k shares and there will be unwinding.
Passive trackers will need to trade between 0.5-0.6x ADV in the stocks. Impact increases to 1-2 days of delivery volume.

Hang Seng Internet & IT Index Rebalance: Five Changes with First De-SPAC Listing In

There will be 5 changes for the Hang Seng Internet & Information Technology Index (HSIII Index) at the March rebalance. There is one surprise for us with Synagistics being added.
Estimated one-way turnover at the rebalance is 6.5% resulting in a round-trip trade of HK$3.74bn (US$482m). 4 stocks will have over 1x ADV to trade.
Horizon Robotics (9660 HK) is an add to the HSIII, Hang Seng TECH Index and HSCI. Inclusion in Southbound Stock Connect will take place in May.

Mayne Pharma (MYX AU): Cosette Pharma’s Binding Offer at A$7.40

Mayne Pharma (MYX AU) entered a scheme implementation deed with Cosette Pharma at A$7.40 per share, a 36.8% premium to the undisturbed price.
The offer is conditional on shareholder and FIRB approval. The vote is low-risk as the two largest shareholders are supportive.
The offer is reasonable but not a knockout bid. At the last close and for an end-of-May payment, the gross/annualised spread was 2.8%/11.0%.

#107 India Insight: PhonePe Plans IPO, Adani Sees Growth, Gujarat Budget Boosts Economy

By Sudarshan Bhandari

PhonePe, India’s largest digital payments player, begins IPO preparations after redomiciling to India in December 2022. With impressive growth and profitability.
Adani Group reassures investors and creditors with strong cash reserves and double-digit EBITDA growth.
Gujarat’s Rs 3.70 trillion budget for 2025-26 includes no new taxes. Focus is on infrastructure, green growth, human development, and economic activities, with new projects.

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Feb 23

Daily Brief Industrials: SCREEN Holdings, Sg Fleet, Curtiss Wright, Msa Safety Inc, Waste Connections and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Screen Holdings (7735 JP): 25%+ Upside Potential
SG Fleet (SGF AU): Scheme Vote on 8 April
Curtiss-Wright: The Resilience & Adaptation to Economic & Policy Shifts!
MSA Safety: Leveraging Market Demand & Standards to Fuel Sales Growth & Market Expansion!
Waste Connections: Tackling Rail Network Expansion Obstacles & 4 Critical Challenges!

Screen Holdings (7735 JP): 25%+ Upside Potential

By Scott Foster

FY Mar-25 guidance has been raised again after strong 3Q results. Growth should continue next fiscal year with rising demand from TSMC.
Sales to Chinese customers bounced back strongly last quarter, defying predictions. Capacity adds and process upgrades should continue to drive demand from China.
FPD, PCB and printing equipment are now profitable and should remain so. More efficient production and slower growth in depreciation should also support the operating margin.

SG Fleet (SGF AU): Scheme Vote on 8 April

The Sg Fleet (SGF AU) IE considers Pacific Equity Partners’ A$3.50 offer fair and reasonable.
The key conditions are shareholder (Super Group (SPG SJ) and SG Fleet) and regulatory (FIRB, OIO and FCA) approval.
The offer is attractive compared to peer multiples and represents an all-time high. At the last close and for a 30 April payment, the gross/annualised spread is 1.5%/8.5%.

Curtiss-Wright: The Resilience & Adaptation to Economic & Policy Shifts!

Curtiss-Wright Corporation’s latest earnings report reflects a balanced outlook with both growth opportunities and challenges.
The company reported a 5% year-over-year increase in sales for the fourth quarter of 2024, driven primarily by strong performances in its Defense Electronics and Naval & Power segments.
However, operating income remained flat, with an operating margin holding steady at 19.8%.

MSA Safety: Leveraging Market Demand & Standards to Fuel Sales Growth & Market Expansion!

MSA Safety Inc. reported its financial results for the fourth quarter and full-year 2024, providing insights into its operating performance and strategic direction.
Throughout 2024, the company executed well amidst a complex operating environment, demonstrating resilience across most product categories despite facing some challenges.
In 2024, MSA Safety achieved 1% growth in net sales on a reported basis and 2% on an organic basis.

Waste Connections: Tackling Rail Network Expansion Obstacles & 4 Critical Challenges!

Waste Connections Inc. delivered solid financial and operational results in Q4 2024, marking a strong conclusion to the fiscal year.
The company’s key highlights include double-digit growth in revenue and adjusted EBITDA, indicating robust financial health.
However, it’s crucial to remain cognizant of both the underlying positives and potential challenges the company faces.

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Feb 23

Daily Brief TMT/Internet: L&T Technology Services Limited, Horizon Robotics, Shinko Electric Industries, Taiwan Semiconductor (TSMC) – ADR, Domain Holdings Australia , Fuji Soft Inc, Bilibili , AppLovin , Pegasystems Inc and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

Nifty IT Index Rebalance: Oracle Financial Services Takes a Beating but Replaces L&T Tech
Hang Seng Internet & IT Index Rebalance: Five Changes with First De-SPAC Listing In
Last Week in Event SPACE: Shinko Electric, REA Group, Macromill, CNBM, Prosus/Tencent
TSMC (2330.TT; TSM.US): Will TSMC Work on Intel Foundry Services? There Are Three Paradoxes…
Domain Holdings (DHG AU): CoStar Raids the Register and Launches a NBIO at A$4.20
(Mostly) Asia-Pac M&A: Domain Holdings, Mayne Pharma, Tam Jai, PEC Ltd, Canvest, Fuji Soft, Proto
HSCI Index Rebalance: 29 Adds, 41 Deletes & Changes to Southbound Stock Connect
[Bilibili Inc. (BILI US, BUY, TP US$24) Target Price Change]: C3Q24 Review: Game Slowdown from C2Q25
AppLovin Corporation: Will Its Mid-Market Direct-to-Consumer Focus Pay Off?
Pegasystems Inc.: Can its Focus On Cloud Migration Position It As A Leader In Driving Digital Evolution?

Nifty IT Index Rebalance: Oracle Financial Services Takes a Beating but Replaces L&T Tech

In line with our forecast, Oracle Financial Services (OFSS IN) replaces L&T Technology Services Limited (LTTS IN) in the Nifty IT Index (NSEIT INDEX) at the March rebalance.
L&T Technology Services (LTTS IN) is also being excluded from the F&O segment at the close on 27 March. Open interest is ~900k shares and there will be unwinding.
Passive trackers will need to trade between 0.5-0.6x ADV in the stocks. Impact increases to 1-2 days of delivery volume.

Hang Seng Internet & IT Index Rebalance: Five Changes with First De-SPAC Listing In

There will be 5 changes for the Hang Seng Internet & Information Technology Index (HSIII Index) at the March rebalance. There is one surprise for us with Synagistics being added.
Estimated one-way turnover at the rebalance is 6.5% resulting in a round-trip trade of HK$3.74bn (US$482m). 4 stocks will have over 1x ADV to trade.
Horizon Robotics (9660 HK) is an add to the HSIII, Hang Seng TECH Index and HSCI. Inclusion in Southbound Stock Connect will take place in May.

Last Week in Event SPACE: Shinko Electric, REA Group, Macromill, CNBM, Prosus/Tencent

Shinko Electric Industries (6967 JP). Done. Finally. Look at whether you could borrow shares just before the close of the tender and short tender and buy back post ex-date
REA Group Ltd (REA AU) rolls over as Costar Group (CSGP US) bets big on key rival Domain Domain Holdings Australia (DHG AU).
Macromill (3978 JP)‘s tender extended. Still not a done deal. Look to buy shares at terms with the goal of NOT tendering and owning the back end.

TSMC (2330.TT; TSM.US): Will TSMC Work on Intel Foundry Services? There Are Three Paradoxes…

By Patrick Liao

It is a paradox US President wanted to make the US the number one semiconductor manufacturing country but is very likely unable to change the existing environment in the US.
Another paradox is that a foreign company must obtain approval from the relevant US authorities before transferring control of the specific US company, which may not be feasible.
It raises the third paradox that a Taiwanese company would need to operate an existing US entity with their company’s expertise under different cost conditions.

Domain Holdings (DHG AU): CoStar Raids the Register and Launches a NBIO at A$4.20

Domain Holdings Australia (DHG AU) announced a non-binding proposal from Costar Group (CSGP US) at A$4.20, a 34.6% premium to the undisturbed price of A$3.12 (20 February).
The bid follows CoStar’s acquisition of a 16.9% stake in Domain on 20 February. Nine Entertainment Co Holdings (NEC AU)‘s support is crucial for its success.
While attractive to precedent transaction multiples, the offer is light compared to peer multiples. Nine is evaluating the offer and will likely push for improved terms.

(Mostly) Asia-Pac M&A: Domain Holdings, Mayne Pharma, Tam Jai, PEC Ltd, Canvest, Fuji Soft, Proto

I tally 58 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma.
Four new deals discussed this week: Domain Holdings Australia (DHG AU), Mayne Pharma (MYX AU), Tam Jai International (2217 HK), and PEC Ltd. (PEC SP).
Key updates/news took place on: Canvest Environmental Protection Group (1381 HK),Fuji Soft Inc (9749 JP), and Proto Corp (4298 JP).

HSCI Index Rebalance: 29 Adds, 41 Deletes & Changes to Southbound Stock Connect

There are 29 adds and 41 deletes for the Hang Seng Composite Index (HSCI) at the March rebalance to take the number of index constituents down to 505.
We expect 27 of the 29 HSCI inclusions to be added to Stock Connect from the open on 10 March while Horizon Robotics (9660 HK) should be added in May.
We expect 28 of the 41 HSCI deletions will be removed from Stock Connect and there has been increased Southbound holding in a lot of the stock this calendar year.

[Bilibili Inc. (BILI US, BUY, TP US$24) Target Price Change]: C3Q24 Review: Game Slowdown from C2Q25

By Ying Pan

Bilibili (BILI) reported C4Q24 revenue and GAAP operating profit in line, 87% vs. our estimates and in line, 130% vs. consensus.
We see BILI’s content strategy to be working to drive higher and better traffic, benefiting the ads business.
We BUY and raised our TP to US$24 awaiting further details on game pipeline. The stock trading at 2025 PE of 31x.

AppLovin Corporation: Will Its Mid-Market Direct-to-Consumer Focus Pay Off?

AppLovin’s financial performance for the fourth quarter of 2024 indicates a pivotal shift in its operational focus and growth strategy.
Over the quarter, total revenue increased by 44% year-over-year to $1.37 billion, fueled significantly by an expanded advertising business that brought in $999 million in revenue.
The company’s adjusted EBITDA surged by 78% to $848 million, maintaining a healthy margin of 62%.

Pegasystems Inc.: Can its Focus On Cloud Migration Position It As A Leader In Driving Digital Evolution?

Pegasystems, a leader in software solutions for customer engagement and operational efficiency, demonstrated a robust performance in its fiscal year 2024.
The company reached its strategic milestone of becoming a “Rule of 40” company, reflecting balanced growth and profitability.
This achievement highlights the successful execution of its transition strategy from a traditional sales model to a subscription-based cloud business.

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Feb 23

Daily Brief Energy/Materials: Albemarle Corp, Antero Midstream Corp, Kinross Gold Corp, Martin Marietta Materials, Williams Cos and more

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

In today’s briefing:

Albemarle Corporation: These Recent Lithium Market Shifts & Diversification Moves Could Reshape Its Future!
Antero Midstream’s M&A Playbook: The Next Big Acquisition on the Horizon?
Kinross Gold’s Permitting Wins – The Key to Unlocking Billions in Future Mining!
Martin Marietta Materials: Will It Benefit From Increased Infrastructure Spending & Public-Sector Demand Growth?
The Williams Companies: How Does The Uncertainty In Data Center Energy Growth Due to DeepSeek’s Efficiency Gains Impact Them?

Albemarle Corporation: These Recent Lithium Market Shifts & Diversification Moves Could Reshape Its Future!

Albemarle Corporation presented its financial performance for the fourth quarter and full year of 2024, highlighting several critical aspects of the company’s operations, financial health, and market dynamics.
The fourth quarter saw Albemarle reporting net sales of $1.2 billion, although this marked a decline primarily attributed to lower lithium market pricing.
Nevertheless, the company achieved a positive milestone with an adjusted EBITDA of $251 million, showing enhancements in productivity, cost efficiency, and sales volumes across its business segments.

Antero Midstream’s M&A Playbook: The Next Big Acquisition on the Horizon?

Antero Midstream Corporation reported its financial and operational results for the fourth quarter of 2024, showcasing a sustained growth trajectory.
The company achieved $1.05 billion in EBITDA for the year, marking its tenth consecutive year of EBITDA growth.
The return on invested capital (ROIC) hit a company record of 19%, attributed to strategic capital investments and accretive acquisitions.

Kinross Gold’s Permitting Wins – The Key to Unlocking Billions in Future Mining!

Kinross Gold’s fourth-quarter 2024 earnings call highlights a year of strong operational performance, financial outcomes, and strategic progress across its mining operations and projects.
The company achieved noteworthy results, delivering 2.1 million ounces of gold in 2024 and over 500,000 ounces in the fourth quarter alone, reinforcing its adherence to production and cost guidance.
The cost of sales and all-in sustaining costs were tightly managed, indicating effective cost discipline.

Martin Marietta Materials: Will It Benefit From Increased Infrastructure Spending & Public-Sector Demand Growth?

Martin Marietta Materials Inc. (MLM) has been actively navigating the challenges and opportunities presented in both its industry and macroeconomic environments.
The company reported a strong performance in 2024 despite facing adverse weather conditions and a challenging economy.
The year was marked by record financial performance in their aggregates division and significant strategic transactions totaling approximately $6 billion, aimed at enhancing their portfolio.

The Williams Companies: How Does The Uncertainty In Data Center Energy Growth Due to DeepSeek’s Efficiency Gains Impact Them?

The Williams Companies, a prominent player in the energy infrastructure sector, has recently reported its fourth quarter performance for 2024, showcasing a complex blend of achievements and challenges.
Positioned strategically within the natural gas infrastructure domain, the company is experiencing significant growth momentum, which is expected to carry over into 2025 and beyond.
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.

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Feb 23

Daily Brief Consumer: Alibaba Group Holding , DoorDash , Ping An Healthcare and Technology, Wyndham Hotels & Resorts , Lithia Motors Inc Cl A, MGM Resorts International, Ola Electric, Kraft Heinz Co, Restaurant Brands Internationa, Cvs Health Corp and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Alibaba – How to Position Post Earnings Amid Sticky Volatility
S&P500: DoorDash Knocks
China Healthcare Weekly (Feb.23)-Ping An Good Doctor Shares Surge, China Healthcare Has Bottomed Out
Wyndham Hotels & Resorts: A Tale Of Acceleration of Global Room Growth & RevPAR Expansion!
Lithia Motors Inc.: Strategic Acquisitions & Divestitures As A Critical Lever For Driving Sustainable Growth!
MGM Resorts International: Leveraging Partnerships & Loyalty Programs To Redefine the Industry!
NIFTY MIDCAP150 Index Rebalance: 17 Changes a Side; Lots of Overlap with Other Index Flow
Kraft Heinz: Market Share Expansion in Key Product Categories & Key Growth Levers!
Restaurant Brands International (QSR): Brand Differentiation & Marketing Strategies to Up Their Game!
CVS Health: $97.7 Billion Revenue and a New CEO – Can It Overcome Industry Challenges?

Alibaba – How to Position Post Earnings Amid Sticky Volatility

By John Ley

Alibaba had a super charged move this week, risking 14.56% on its earnings release.
We look at how price movement and volatility evolve in the month after earnings releases.
Recommendations are made on how to position through options in this environment of enhanced volatility.

S&P500: DoorDash Knocks

By Dimitris Ioannidis

DoorDash (DASH US) recently became eligible for addition to S&P500 following the company’s positive earnings announcement on 11 February 2025.
AppLovin (APP US), DoorDash (DASH US), and Coinbase Global (COIN US) are the main addition by transition candidates. APP is number one due to significant long-term mcap score.
Williams Sonoma (WSM US) is the main addition by migration candidate and the expected addition by replacement if Capital One’s acquisition is completed prior to the March review.

China Healthcare Weekly (Feb.23)-Ping An Good Doctor Shares Surge, China Healthcare Has Bottomed Out

By Xinyao (Criss) Wang

In 2025, the NHSA will continue to deepen the VBP of drugs and centralized procurement of medical consumables, covering 700 drug varieties in total.
Valuation of the entire industry has been sluggish for three years. With the positive changes, we think it is the time to be optimistic on China healthcare in 2025.
Due to the craze for DeepSeek/AI, PAGD’s stock price surged.Although this is a great story, the extent to which DeepSeek can bring substantial benefits to PAGD remains to be verified.

Wyndham Hotels & Resorts: A Tale Of Acceleration of Global Room Growth & RevPAR Expansion!

Wyndham Hotels & Resorts had a solid fourth quarter and full-year 2024 performance, marked by robust room growth, increased earnings, and strategic initiatives aimed at enhancing long-term positioning.
However, some areas presented challenges that could affect future performance.
Positively, the company reported a 4% net room growth for the year, which included opening a record 69,000 rooms.

Lithia Motors Inc.: Strategic Acquisitions & Divestitures As A Critical Lever For Driving Sustainable Growth!

Lithia Motors’ recent earnings results highlighted a mixture of strategic advancements and operational challenges.
The company demonstrated a robust revenue increase driven by its integrated mobility ecosystem and growth initiatives.
Key financial metrics bring forward a mixed perspective for investors evaluating the company’s performance and strategic outlook.

MGM Resorts International: Leveraging Partnerships & Loyalty Programs To Redefine the Industry!

MGM Resorts International reported strong earnings results for the fourth quarter and full year of 2024, marked by record consolidated net revenues, domestic slot wins, and heightened guest experiences.
The company credits its robust performance to strategic decisions, strong financial foundation, and growth in both traditional and digital operations.
Additionally, MGM’s customer service enhancements have been positively reflected in its Net Promoter Scores, particularly with its Gold Plus customers, reaching record highs during the reported period.

NIFTY MIDCAP150 Index Rebalance: 17 Changes a Side; Lots of Overlap with Other Index Flow

There are 17 changes a side for the NIFTY Midcap 150 Index at the March rebalance. There are many stocks with flows from passive trackers of other indices.
Estimated one-way turnover is 9.2% resulting in a round-trip trade of INR 15.9bn (US$184m). With over US$40bn tracking the index actively, the impact on the stocks will be much larger.
There are many stocks with opposing flows from NSE Nifty Next 50 Index trackers. Ola Electric (OLAELEC IN) will have inflows from multiple index trackers over the next month.

Kraft Heinz: Market Share Expansion in Key Product Categories & Key Growth Levers!

The Kraft Heinz Company recently released its fourth-quarter 2024 earnings, providing insights into its financial performance and strategic focus.
The company navigated a challenging year, emphasizing efforts to bolster profit margins and enhance free cash flow, even amidst a tumultuous economic environment.
One notable achievement was Kraft Heinz’s return of $2.7 billion to shareholders through share buybacks and dividends, highlighting its commitment to shareholder value.

Restaurant Brands International (QSR): Brand Differentiation & Marketing Strategies to Up Their Game!

Restaurant Brands International recently held a financial review for the fiscal year and fourth quarter ending December 31, 2024.
The company displayed notable achievements and areas for improvement across its diversified portfolio, which includes household names such as Tim Hortons, Burger King, Popeyes, and Firehouse Subs, under its wing.
The company reported a moderate growth trajectory with a 2.3% increase in comparable sales, a 3.4% growth in the number of net restaurants, and a 5.4% rise in system-wide sales.

CVS Health: $97.7 Billion Revenue and a New CEO – Can It Overcome Industry Challenges?

CVS Health investors saw a significant turnaround as the company delivered better-than-expected quarterly earnings, fueling a sharp 14.8% rise in stock price—the largest one-day gain since 2008.
This surge follows a tumultuous 2024 when the stock fell over 40% due to challenges across its core businesses, including rising medical costs in its insurance segment, regulatory scrutiny on its pharmacy-benefit manager, and financial pressures on its retail pharmacy chain.
However, with a new CEO at the helm, the company is focused on restoring investor confidence and executing a strategic recovery plan.

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Feb 23

Daily Brief Industrials: SCREEN Holdings, Sg Fleet, Curtiss Wright, Msa Safety Inc, Waste Connections and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Screen Holdings (7735 JP): 25%+ Upside Potential
SG Fleet (SGF AU): Scheme Vote on 8 April
Curtiss-Wright: The Resilience & Adaptation to Economic & Policy Shifts!
MSA Safety: Leveraging Market Demand & Standards to Fuel Sales Growth & Market Expansion!
Waste Connections: Tackling Rail Network Expansion Obstacles & 4 Critical Challenges!

Screen Holdings (7735 JP): 25%+ Upside Potential

By Scott Foster

FY Mar-25 guidance has been raised again after strong 3Q results. Growth should continue next fiscal year with rising demand from TSMC.
Sales to Chinese customers bounced back strongly last quarter, defying predictions. Capacity adds and process upgrades should continue to drive demand from China.
FPD, PCB and printing equipment are now profitable and should remain so. More efficient production and slower growth in depreciation should also support the operating margin.

SG Fleet (SGF AU): Scheme Vote on 8 April

The Sg Fleet (SGF AU) IE considers Pacific Equity Partners’ A$3.50 offer fair and reasonable.
The key conditions are shareholder (Super Group (SPG SJ) and SG Fleet) and regulatory (FIRB, OIO and FCA) approval.
The offer is attractive compared to peer multiples and represents an all-time high. At the last close and for a 30 April payment, the gross/annualised spread is 1.5%/8.5%.

Curtiss-Wright: The Resilience & Adaptation to Economic & Policy Shifts!

Curtiss-Wright Corporation’s latest earnings report reflects a balanced outlook with both growth opportunities and challenges.
The company reported a 5% year-over-year increase in sales for the fourth quarter of 2024, driven primarily by strong performances in its Defense Electronics and Naval & Power segments.
However, operating income remained flat, with an operating margin holding steady at 19.8%.

MSA Safety: Leveraging Market Demand & Standards to Fuel Sales Growth & Market Expansion!

MSA Safety Inc. reported its financial results for the fourth quarter and full-year 2024, providing insights into its operating performance and strategic direction.
Throughout 2024, the company executed well amidst a complex operating environment, demonstrating resilience across most product categories despite facing some challenges.
In 2024, MSA Safety achieved 1% growth in net sales on a reported basis and 2% on an organic basis.

Waste Connections: Tackling Rail Network Expansion Obstacles & 4 Critical Challenges!

Waste Connections Inc. delivered solid financial and operational results in Q4 2024, marking a strong conclusion to the fiscal year.
The company’s key highlights include double-digit growth in revenue and adjusted EBITDA, indicating robust financial health.
However, it’s crucial to remain cognizant of both the underlying positives and potential challenges the company faces.

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

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

Feb 23

Daily Brief Financials: Hang Seng Index, Keppel DC REIT and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

Hang Seng Index (HSI) Rebalance: Does Anyone Know What the Index Committee Is Thinking?
Keppel DC REIT: An Interesting Play on AI Boom

Hang Seng Index (HSI) Rebalance: Does Anyone Know What the Index Committee Is Thinking?