Smartkarma Daily Briefs

Today after the close we got news that after a year-plus of Hamamatsu Photonics Kk (6965 JP)‘s sliding stock price, Toyota Motor (7203 JP) is selling their 5+% stake.
The offering is standard. Probably prices 9 Sep 2024. HP’s amended buyback program and probable index upweights offset most of the offering size over the next several months.
So investors have to decide whether they want to catch the falling knife.

Sanyo Industries (TYO 5958) – $60m Net-Net With 5 P/E, 3.8% Dividend, That’s Buying Back Shares

By Altay Capital

Sanyo Industries Product Categories Sanyo Industries (TYO 5958) is a manufacturer of construction materials that’s been in business since 1948.
Their main products are sheet metal works used for flooring, roofing, aluminium building materials, and rooftop ventilators.
They also manufactur earthquake and other disaster resilient components.

Hyun Song Shin on How Big the Yen Carry Trade Really Is

By Odd Lots

The carry trade involves borrowing in lower yielding currencies like the yen and investing in higher yielding assets
The recent unwind of the carry trade caused temporary market stress, but quickly settled down
The actors involved in the carry trade range from speculators to institutions, making it a diverse ecosystem with varying motivations and impacts

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

D. Western Therapeutics Institute (4576 JP) – News Flash

H-1337 dosing commenced in PIIb clinical trials in the US in Aug-2023.
The study is a multicenter, randomized, double-blind, active-controlled, dose-finding study investigating the efficacy and safety of H-1337 in patients with glaucoma and ocular hypertension by application of eye drops for 28 days.
The number of patients is 200 cases in 4 groups: H-1337 0.6% (twice daily), 1.0% (twice daily), 1.0% (once daily), and Timolol (beta blocker drug for efficacy comparison, twice daily).

Frontier Management Inc. (7038 JP) – 2Q Follow-Up

In terms of topline, both the Management Consulting Business and the Revitalization Support Business continued to perform favorably, achieving net sales of ¥2,908 mn (+14.3% YoY) and ¥791 mn (+5.6% YoY), respectively.
The M&A Advisory Business reported net sales of ¥746 mn (-52.3% YoY).
The Investment Business posted significant growth (+117% YoY), though its scale remained small with net sales of only ¥39 mn.

Japan Business Systems (5036 JP) – 3Q Follow-Up

When JBS announced recording an impairment loss associated with the acquisition of NEXTSCAPE on 2Q results, it only revised down the initial FY24/9 forecast for profit attributable to owners of parent from ¥3,450mn → ¥1,500mn, leaving the rest of the forecast unchanged.
While the impairment loss was clearly disappointing, it is important to keep in mind this is a non-cash item, and prompt action by JBS management in writing down the entire remaining portion of unamortized GW minimized future downside risk.
As described on the next page, 3Q cumulative (9M) consolidated net sales rose +29.0% YoY, and operating profit rose +28.5% YoY, relative to full-term initial guidance for FY24/9 consolidated net sales +12.4%, and operating profit +21.6%.

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Aug 31

Daily Brief China: Li Auto , Meituan and more

By Smartkarma Daily Briefs | China, Daily Briefs

In today’s briefing:

[Li Auto (LI US, BUY, TP US$22) TP Change]: Expanding Outside of SUV Is Still the US$mn Question
LiAuto (LI US, BUY, TP:USD25.0): Good 2Q-2024 Results, on Track to Match Consensus
[Meituan (3690 HK, BUY, TP HK$165) TP Change]: Better Margin Outlook from Rider Cost and Execution

[Li Auto (LI US, BUY, TP US$22) TP Change]: Expanding Outside of SUV Is Still the US$mn Question

By Eric Wen

LI Auto (LI) reported C2Q24 top line, non-GAAP operating profit and GAAP net income 5.0%, (5.2%) and (20%) vs. our estimates, and in-line, 53% and 6.8% vs. consensus.
We believe the market has oversold the company.But in our view,the key question is LI’s next product entry under the backdrop of Xiaomi consolidating its position in the EV sector.
We believe LI should continue to explore its “family car” brand niche in entering the sedan market. If so, volume and margin can co-exist.

LiAuto (LI US, BUY, TP:USD25.0): Good 2Q-2024 Results, on Track to Match Consensus

By Mohshin Aziz

2Q-2024 results is within ours and consensus expectations. Competition is tough, but LiAuto managed to remain profitable
Management is boosting R&D expenditure and boost spending on expanding number of charging stations, all for the benefit of its customers.
Our fair value of USD25 implies 16x FY25 PE – average for auto growth stock. A bargain with 3-year CAGR of 38%, net cash, and churns high free cash flow.

[Meituan (3690 HK, BUY, TP HK$165) TP Change]: Better Margin Outlook from Rider Cost and Execution

By Ying Pan

Meituan reported C2Q24 revenue 1.4%/2.3% higher than our estimate/consensus and adjusted net income 17%/28% higher than our estimate/consensus, thanks to lower rider cost and less subsidies to users;
Although poor economy has plunged Meituan’s merchant base to the loss-making zone, we expect Meituan’s take rate to persist as take-out order represents incremental revenue to offset merchants’ fixed cost.
We reiterate BUY rating and raise TP to HK$165/share. Catalysts are reduced competition, expansion of Pinhaofan, and overseas expansion.

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Aug 31

Most Read: Terumo Corp, Zomato, Jardine Matheson Holdings, NVIDIA Corp, LG Chem Ltd, Doosan Robotics , CPMC Holdings, Kum Yang , Hamamatsu Photonics Kk and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

Terumo (4543 JP) Secondary Offering – Smaller Than It Looks
Zomato: Index Inclusions & Passive Impact (Once Added to F&O)
Jardine Matheson (JM SP): Trading “Cheap”
NVIDIA’s >5x YoY “Singapore” Revenue Growth Is A Red Flag
CPMC Holdings (906.HK) Privatization Update- Due to Risk Behind ORG’s Offer, Baosteel Is a Wiser Bet
LG Corp Plans to Purchase 200 Billlion Won of LG Electronics and 300 Billion Won of LG Chem
Doosan Group Cancels Plans to Merge Doosan Robotics and Doosan Bobcat
CPMC (906 HK): SAMR Green Lights ORG’s Offer
Finding Unusual Arbitrage Angles in Kumyang’s Effectively Pre-Announced Capital Increase
Hamamatsu Photonics (6965) – Toyota Selling Yet Another Cross-Holding

Terumo (4543 JP) Secondary Offering – Smaller Than It Looks

On Thursday 29 August, Terumo Corp (4543 JP) announced a secondary offering where 7 major cross-holders would sell just under 5% of the shares outstanding to international investors.
In recent quarters, Terumo has seen better consensus EPS growth than Peers in recent quarters, and Peers have underperformed. Right now, Terumo isn’t ‘cheap’ but consensus growth is strong.
This back-end demand in this case has enough moving parts that it bears a closer look.

Zomato: Index Inclusions & Passive Impact (Once Added to F&O)

By Brian Freitas

Zomato (ZOMATO IN) has a market cap of over US$27bn but is not a member of the NIFTY Index and S&P BSE SENSEX Index since it is not an F&O member.
Once SEBI’s proposed and enhanced stock inclusion thresholds are implemented, Zomato (ZOMATO IN) should be added to the F&O segment of the market.
Passive NIFTY Index and S&P BSE SENSEX Index will have to buy a lot of Zomato stock at subsequent rebalances. The impact will be higher given the lower real float.

Jardine Matheson (JM SP): Trading “Cheap”

By David Blennerhassett

I see Jardine Matheson Holdings (JM SP)‘s discount to NAV and implied stub at 12-month lows.
Recent interim results were okay. Stripping out DFI Retail Group Holdings (DFI SP)‘s outperformance, the remainder of the Jardine stable delivered weaker numbers.
Further afield, the implied stub is marginally below the long-term average since the Jardine Strategic Holdings (JS SP) circularity was collapsed in April 2021.

NVIDIA’s >5x YoY “Singapore” Revenue Growth Is A Red Flag

By William Keating

NVIDIA delivered another blockbuster quarter with record revenues of $30 billion, blowing well past the guided $28 billion, up 15% QoQ and up 122% YoY.
$5.6 billion in revenues were attributed to Singapore, making up more than 18% of overall revenues and up >5 times YoY
What the heck is the city state doing with all of those GPUs?

CPMC Holdings (906.HK) Privatization Update- Due to Risk Behind ORG’s Offer, Baosteel Is a Wiser Bet

By Xinyao (Criss) Wang

Baosteel’s choice to maintain its original Offer may partly reflect its “confidence” in the deal. If investors bet that Huarui Offer will succeed, they need to bear some risks.
If investors choose to arbitrage at HK$7.21/share, annualized return is 9% assuming privatization would be completed in mid-Jan 2025.Such return may not be attractive considering the uncertainties behind the deal.
If investors are optimistic about Baosteel’s final acquisition of CPMC, they can consider buying Baosteel shares, as Baosteel will become the new industry leader, with greater upside potential for valuation.

LG Corp Plans to Purchase 200 Billlion Won of LG Electronics and 300 Billion Won of LG Chem

On 29 August, LG Corp announced that it plans to purchase about 200 billion won worth of LG Electronics and about 300 billion won worth of LG Chem.
After these share purchases, LG Corp’s stake in LG Electronics will increase from 30.47% to 31.59%, and its stake in LG Chem will increase from 30.06% to 31.29%.
LG Corp plans to purchases these shares starting 1 November 2024. The share purchases will be conducted in two stages and will be completed by 31 March 2025.

Doosan Group Cancels Plans to Merge Doosan Robotics and Doosan Bobcat

On 29 August, the Doosan Group announced that it is cancelling the merger between Doosan Robotics (454910 KS) and Doosan Bobcat Inc (241560 KS).
However, the plan to split Doosan Enerbility into a newco and then merge Doosan Bobcat with the newco will remain in place.
Doosan Group is still trying to complete the first two portions of reorganization (Split of Doosan Enerbility and Merger Swap Between Doosan Enerbility and Doosan Robotics), resulting in continued uncertainty.

CPMC (906 HK): SAMR Green Lights ORG’s Offer

By David Blennerhassett

ORG Technology (002701 CH), via the Offeror Huarui Fengquan Development Limited, has announced SAMR has given its approval. ORG still requires MOFCOM, NDRC, and SAFE to sign off.
Interestingly, SASAC/NCSSF-backed Champion Holdings, the competing/initial bidder for CPMC (906 HK), secured MOFCOM, NDRC, and SAFE before SAMR clearance. Champion’s regulatory pre-conditions took a little over seven months to secure.
What now? SAMR is China’s primary antitrust regulator (overlapping with NDRC). So this is positive for ORG. However, I’d still stick to ORG’s pre-condition long stop in terms of timing.

Finding Unusual Arbitrage Angles in Kumyang’s Effectively Pre-Announced Capital Increase

By Sanghyun Park

The arbitrage is clear: it’s the difference between stock rights/subscription costs and short hedge price. Kumyang’s high market interest and volatility amplify this, suggesting unusual trading angles.
Kumyang’s futures also show extreme volatility, likely causing excessive backwardation around the ex-rights date and stock rights window, affecting futures-based short hedge positions.
This opens up the possibility that, depending on entry points, our futures-based short hedge position might temporarily enter an unusual profitable zone relative to the stock rights and subscription costs.

Hamamatsu Photonics (6965) – Toyota Selling Yet Another Cross-Holding

Today after the close we got news that after a year-plus of Hamamatsu Photonics Kk (6965 JP)‘s sliding stock price, Toyota Motor (7203 JP) is selling their 5+% stake.
The offering is standard. Probably prices 9 Sep 2024. HP’s amended buyback program and probable index upweights offset most of the offering size over the next several months.
So investors have to decide whether they want to catch the falling knife.

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Aug 31

Daily Brief Energy/Materials: CPMC Holdings, Kum Yang , LS Materials , Sasol , Trigon Metals and more

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

In today’s briefing:

CPMC (906 HK): SAMR Green Lights ORG’s Offer
Finding Unusual Arbitrage Angles in Kumyang’s Effectively Pre-Announced Capital Increase
Kum Yang: A Major Capital Raise Possible in 4Q24 Which Is Likely to Dilute Existing Shareholders
End of Mandatory Lock-Up Periods for 49 Companies in Korea in September 2024
Sasol – ESG Report – Lucror Analytics
TM: Positive Drill Results at New Zone Near Shaft #3

CPMC (906 HK): SAMR Green Lights ORG’s Offer

By David Blennerhassett

ORG Technology (002701 CH), via the Offeror Huarui Fengquan Development Limited, has announced SAMR has given its approval. ORG still requires MOFCOM, NDRC, and SAFE to sign off.
Interestingly, SASAC/NCSSF-backed Champion Holdings, the competing/initial bidder for CPMC (906 HK), secured MOFCOM, NDRC, and SAFE before SAMR clearance. Champion’s regulatory pre-conditions took a little over seven months to secure.
What now? SAMR is China’s primary antitrust regulator (overlapping with NDRC). So this is positive for ORG. However, I’d still stick to ORG’s pre-condition long stop in terms of timing.

Finding Unusual Arbitrage Angles in Kumyang’s Effectively Pre-Announced Capital Increase

By Sanghyun Park

The arbitrage is clear: it’s the difference between stock rights/subscription costs and short hedge price. Kumyang’s high market interest and volatility amplify this, suggesting unusual trading angles.
Kumyang’s futures also show extreme volatility, likely causing excessive backwardation around the ex-rights date and stock rights window, affecting futures-based short hedge positions.
This opens up the possibility that, depending on entry points, our futures-based short hedge position might temporarily enter an unusual profitable zone relative to the stock rights and subscription costs.

Kum Yang: A Major Capital Raise Possible in 4Q24 Which Is Likely to Dilute Existing Shareholders

In the past week, there were numerous local news accounts about a rights offering of nearly 800 billion won by Kum Yang. This has not been confirmed by the company.
Although Kum Yang has not committed to a rights offering, there is a high probability of such capital raise in 4Q24 which is likely to dilute existing shareholders.
Kum Yang remains a highly speculative stock. The management has lost so much credibility in the past year. We would stay away from it as far as possible.

End of Mandatory Lock-Up Periods for 49 Companies in Korea in September 2024

We discuss the end of the mandatory lock-up periods for 49 stocks in Korea in September 2024, among which 3 are in KOSPI and 46 are in KOSDAQ.
These 49 stocks on average could be subject to further selling pressures in September and could underperform relative to the market.
The top three market cap stocks including those of which at least 1% of outstanding shares could be sold in September include LS Materials, CIS, and Kyobo Securities.

Sasol – ESG Report – Lucror Analytics

By Leonard Law, CFA

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Sasol’s ESG as “Adequate”, in line with its Environmental and Social scores. The company’s Governance is “Strong”. Controversies are “Material”, but Disclosure is “Strong”.

The group aspires to be included in the DJSI.

TM: Positive Drill Results at New Zone Near Shaft #3

By Atrium Research

Trigon announced high-grade drill results from the new zone near Shaft#3 of the Kombat Mine.
The results confirm strong copper results previously discovered in a 2023 surface drill program that lie outside the proven and probable reserves.
Today’s release is important as it shows strong resource growth potential in the area around Shaft #3 which would open up more mining faces, reducing operational risk and allowing for future production growth.

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Aug 31

Daily Brief Industrials: Premier Energies Limited, Sanyo Industries, Elgi Equipments, BQE Water , Frontier Management Inc, Mineral Resources and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Premier Energies Promoter Sold Shares Just Before IPO Raises Governance Concern
Sanyo Industries (TYO 5958) – $60m Net-Net With 5 P/E, 3.8% Dividend, That’s Buying Back Shares
ELGi Equipments- Forensic Analysis
BQE: New Water Treatment Plant Contract
Frontier Management Inc. (7038 JP) – 2Q Follow-Up
How Low Will MinRes Go?

Premier Energies Promoter Sold Shares Just Before IPO Raises Governance Concern

By Nimish Maheshwari

Premier Energies made SALE before Offer For Sale – A mini OFS just before IPO to close investors who helped company in its journey till IPO.
The stake sale amounting to INR 800+ crores raises the concern over governance and disclosure norms
Such a unique case where the promoter used the loophole might face actions from SEBI.

Sanyo Industries (TYO 5958) – $60m Net-Net With 5 P/E, 3.8% Dividend, That’s Buying Back Shares

By Altay Capital

Sanyo Industries Product Categories Sanyo Industries (TYO 5958) is a manufacturer of construction materials that’s been in business since 1948.
Their main products are sheet metal works used for flooring, roofing, aluminium building materials, and rooftop ventilators.
They also manufactur earthquake and other disaster resilient components.

ELGi Equipments- Forensic Analysis

By Nitin Mangal

Elgi Equipments (ELEQ IN) headquartered in Tamil Nadu, India manufactures a range of air compressors and automotive equipments and sells across domestic and international geographies.
Overall, balance sheet looks strong with consistent FCF generation, upward sloping ROCEs and low risk of solvency
But one needs to be cautious about the performance of subsidiaries, especially the Belgium and US arms, and goodwill assessment, whistle blower trends, etc.

BQE: New Water Treatment Plant Contract

By Atrium Research

BQE announced that it has been contracted for a new water treatment plant for the closure of the legacy Valley Tailings Facility in the Yukon.
This continues the rapid growth that BQE has posted in its recurring operations segment which grew 79% YoY and 43% QoQ in Q2.
The plant is expected to be completed in Q2/25 and operate for six years.

Frontier Management Inc. (7038 JP) – 2Q Follow-Up

In terms of topline, both the Management Consulting Business and the Revitalization Support Business continued to perform favorably, achieving net sales of ¥2,908 mn (+14.3% YoY) and ¥791 mn (+5.6% YoY), respectively.
The M&A Advisory Business reported net sales of ¥746 mn (-52.3% YoY).
The Investment Business posted significant growth (+117% YoY), though its scale remained small with net sales of only ¥39 mn.

How Low Will MinRes Go?

By Money of Mine

Minres reported full year results, leading to a 10% drop in share price and a 50% decline since May
Company’s balance sheet is a concern due to exposure to the cyclical nature of the mining industry and risky investments in lithium
Analysts are nervous about the company’s direction and future prospects, particularly with over $3 billion in capex invested in projects like Onslow

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

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Aug 31

Daily Brief TMT/Internet: NVIDIA Corp, Hamamatsu Photonics Kk, Samsung Electronics, NCSOFT Corp, Silergy Corp, Japan Business Systems , Taiwan Stock Exchange Weighted Index and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

NVIDIA’s >5x YoY “Singapore” Revenue Growth Is A Red Flag
Hamamatsu Photonics (6965) – Toyota Selling Yet Another Cross-Holding
Tech Supply Chain Tracker (31-Aug-2024): Samsung’s growth depends on AI, HPC, autos.
Potential Price Decline Amplification from NPS’s Appraisal Rights Exercise Against NCSoft
Silergy (6415.TT): 2024 Can Be Operating Trough, and Revenue in 2025 Is Expected to Grow by 20-30%.
Japan Business Systems (5036 JP) – 3Q Follow-Up
Expecting Downside Ahead; Stick With Defensives; Downgrading Taiwan to Market Weight; Risk-Off Signs

NVIDIA’s >5x YoY “Singapore” Revenue Growth Is A Red Flag

By William Keating

NVIDIA delivered another blockbuster quarter with record revenues of $30 billion, blowing well past the guided $28 billion, up 15% QoQ and up 122% YoY.
$5.6 billion in revenues were attributed to Singapore, making up more than 18% of overall revenues and up >5 times YoY
What the heck is the city state doing with all of those GPUs?

Hamamatsu Photonics (6965) – Toyota Selling Yet Another Cross-Holding

Today after the close we got news that after a year-plus of Hamamatsu Photonics Kk (6965 JP)‘s sliding stock price, Toyota Motor (7203 JP) is selling their 5+% stake.
The offering is standard. Probably prices 9 Sep 2024. HP’s amended buyback program and probable index upweights offset most of the offering size over the next several months.
So investors have to decide whether they want to catch the falling knife.

Tech Supply Chain Tracker (31-Aug-2024): Samsung’s growth depends on AI, HPC, autos.

By Tech Supply Chain Tracker

Samsung’s foundry service growth is driven by AI, HPC, and automotive sectors, showcasing a diverse and promising market strategy.
Meta is set to launch glasses-like MR device in 2027, aiming to revolutionize the way we interact with technology and the digital world.
Global OSAT industry is projected to experience significant growth by 2024, fueled by increasing demand for testing and packaging services in the semiconductor market.

Potential Price Decline Amplification from NPS’s Appraisal Rights Exercise Against NCSoft

By Sanghyun Park

During NCSoft’s exercise period starting August 14, the spread was tight, with NPS likely to exercise rights if it widens above 5% in the final days.
NPS is unlikely to exercise its full 6.3% stake, but may sell 2% if the stock price drops below ₩180,000, widening the spread over 5%.
This may increase NCSoft’s division costs and overhang risk, potentially amplifying stock price decline. Monitoring NCSoft’s stock early next week is crucial.

Silergy (6415.TT): 2024 Can Be Operating Trough, and Revenue in 2025 Is Expected to Grow by 20-30%.

By Patrick Liao

Company’s 2Q24 overall performance exceeded expectations, and 3Q and 4Q are expected to be flat and to grow by 10-20% per quarter, respectively.
With expectations of continued improvement in ASP and cost structure, overall gross profit margin is expected to continue to grow.
Gen4 (12″) is mainly applied in EV, AI server, and new energy sectors, as these applications have higher specification requirements.

Japan Business Systems (5036 JP) – 3Q Follow-Up

When JBS announced recording an impairment loss associated with the acquisition of NEXTSCAPE on 2Q results, it only revised down the initial FY24/9 forecast for profit attributable to owners of parent from ¥3,450mn → ¥1,500mn, leaving the rest of the forecast unchanged.
While the impairment loss was clearly disappointing, it is important to keep in mind this is a non-cash item, and prompt action by JBS management in writing down the entire remaining portion of unamortized GW minimized future downside risk.
As described on the next page, 3Q cumulative (9M) consolidated net sales rose +29.0% YoY, and operating profit rose +28.5% YoY, relative to full-term initial guidance for FY24/9 consolidated net sales +12.4%, and operating profit +21.6%.

Expecting Downside Ahead; Stick With Defensives; Downgrading Taiwan to Market Weight; Risk-Off Signs

By Joe Jasper

Rallies appear to be stalling-out near logical resistances in the largest global equity markets. That includes 5670-5783 on SPX, 2690-2700 on Japan’s TOPIX, and 4884 on Europe’s EURO STOXX 50.
We continue to believe these indexes will roll over near current or marginally higher levels, fitting with our ongoing belief that MSCI ACWI is going through a 1-to-4-month pullback/consolidation.
Long-Term uptrend violations on global indexes and continued outperformance from defensive Sectors are our top concerns for global equities, though recession indicators and a Fed cutting cycle are also concerns.

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Aug 31

Daily Brief Consumer: Li Auto , Lululemon Athletica, Meituan and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

[Li Auto (LI US, BUY, TP US$22) TP Change]: Expanding Outside of SUV Is Still the US$mn Question
LiAuto (LI US, BUY, TP:USD25.0): Good 2Q-2024 Results, on Track to Match Consensus
Lululemon 2Q’24 Update
[Meituan (3690 HK, BUY, TP HK$165) TP Change]: Better Margin Outlook from Rider Cost and Execution

[Li Auto (LI US, BUY, TP US$22) TP Change]: Expanding Outside of SUV Is Still the US$mn Question

By Eric Wen

LI Auto (LI) reported C2Q24 top line, non-GAAP operating profit and GAAP net income 5.0%, (5.2%) and (20%) vs. our estimates, and in-line, 53% and 6.8% vs. consensus.
We believe the market has oversold the company.But in our view,the key question is LI’s next product entry under the backdrop of Xiaomi consolidating its position in the EV sector.
We believe LI should continue to explore its “family car” brand niche in entering the sedan market. If so, volume and margin can co-exist.

LiAuto (LI US, BUY, TP:USD25.0): Good 2Q-2024 Results, on Track to Match Consensus

By Mohshin Aziz

2Q-2024 results is within ours and consensus expectations. Competition is tough, but LiAuto managed to remain profitable
Management is boosting R&D expenditure and boost spending on expanding number of charging stations, all for the benefit of its customers.
Our fair value of USD25 implies 16x FY25 PE – average for auto growth stock. A bargain with 3-year CAGR of 38%, net cash, and churns high free cash flow.

Lululemon 2Q’24 Update

By MBI Deep Dives

It is far from common for a stock to be up 4% after missing the revenue guide for the quarter and slashing the full-year revenue guide for the year.
That’s exactly what happened with Lululemon today which should tell you the kind of sentiment going into the earnings!
The crux of the bear thesis on Lulu usually circles around their US business.

[Meituan (3690 HK, BUY, TP HK$165) TP Change]: Better Margin Outlook from Rider Cost and Execution

By Ying Pan

Meituan reported C2Q24 revenue 1.4%/2.3% higher than our estimate/consensus and adjusted net income 17%/28% higher than our estimate/consensus, thanks to lower rider cost and less subsidies to users;
Although poor economy has plunged Meituan’s merchant base to the loss-making zone, we expect Meituan’s take rate to persist as take-out order represents incremental revenue to offset merchants’ fixed cost.
We reiterate BUY rating and raise TP to HK$165/share. Catalysts are reduced competition, expansion of Pinhaofan, and overseas expansion.

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Aug 31

Daily Brief Health Care: Grifols SA, Argenx SE, D.Western Therapeutics Institute Inc., Ensysce Biosciences , MediciNova and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Brookfield Explores Sovereign Funds for Grifols Takeover Bid
Argenx SE (ARGX US): Vyvgart Indication Expansion Triggers Rally; Can Competition Play Spoilsport?
D. Western Therapeutics Institute (4576 JP) – News Flash
ENSC: Substantial Federal Funds Granted
MNOV: Phase 3 ALS Readout in 2025

Brookfield Explores Sovereign Funds for Grifols Takeover Bid

By Jesus Rodriguez Aguilar

Press reports Brookfield is seeking support from sovereign wealth funds, including those from Abu Dhabi (ADQ) and Singapore (GIC), to back its bid, though discussions remain in the early stages.
The news about the potential involvement of ADQ and GIC are positive as any support or addition of new investors increases the likelihood of a takeover bid for Grifols.
The discount is closing accordingly, at mid-session August 30, the share-price spread has tightened to 15.4%, the lowest ever. I suggest maintaining the position long B (or ADR)/short A shares.

Argenx SE (ARGX US): Vyvgart Indication Expansion Triggers Rally; Can Competition Play Spoilsport?

By Tina Banerjee

Argenx SE (ARGX US) won FDA approval for second indication of Vyvgart for chronic inflammatory demyelinating polyneuropathy (CIDP) in June. The approval triggered ~30% rally in the share price.
Johnson & Johnson (JNJ US) is seeking FDA approval for nipocalimab for generalized myasthenia gravis (gMG). Approved in 2021, Vyvgart dominates the gMG market. In 1H24, Vyvgart fetched $876M revenue.
Nipocalimab will compete with Vyvgart. However, Argenx has already created a niche for itself and will continue to sit on a prime position due to its first mover advantage.

D. Western Therapeutics Institute (4576 JP) – News Flash

H-1337 dosing commenced in PIIb clinical trials in the US in Aug-2023.
The study is a multicenter, randomized, double-blind, active-controlled, dose-finding study investigating the efficacy and safety of H-1337 in patients with glaucoma and ocular hypertension by application of eye drops for 28 days.
The number of patients is 200 cases in 4 groups: H-1337 0.6% (twice daily), 1.0% (twice daily), 1.0% (once daily), and Timolol (beta blocker drug for efficacy comparison, twice daily).

ENSC: Substantial Federal Funds Granted

By Zacks Small Cap Research

Ensysce Biosciences is committed to finding a solution to the opioid crisis plaguing the US and other developed countries around the world.
Through its proprietary TAAP technology Ensysce is in the process of receiving approval for an abuse-resistant yet still pain-relieving opioid.
The company announced that it has received a $14 million grant from the NIH for the continued development of its abuse deterrent opioid-PF614-MPAR.

MNOV: Phase 3 ALS Readout in 2025

By Zacks Small Cap Research

On August 8, 2024, MediciNova, Inc. (MNOV) filed form 10-Q with financial results for the second quarter of 2024.
The company is conducting a Phase 3 clinical trial of MN-166 (ibudilast) in amyotrophic lateral sclerosis (ALS), which includes 12 months of double-blind treatment plus a six-month open label extension period.
The primary endpoint is change from baseline in ALSFRS-R at Month 12 and survival time.

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Aug 31

Daily Brief Financials: JPY, Bank Mandiri Persero, Equitable Holdings , F&G Annuities & Life , Coinshares International, Cincinnati Financial, First American Financial, American Financial Group, Manulife Financial , Allstate Corp and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

Hyun Song Shin on How Big the Yen Carry Trade Really Is
Bank Mandiri (BMRI IJ) – Escalating Returns and Lower Credit Costs
Equitable Holdings Inc.: Will Its Enhanced Strategic Focus on Wealth Management and Private Markets Pay Off? – Major Drivers
F&G Annuities & Life: Expanding Product Portfolio and Market Penetration! – Major Drivers
CoinShares International – Termination of coverage
Cincinnati Financial Corporation: Expanding Strategic Agency Relationships and Distribution Network To Drive Growth! – Major Drivers
First American Financial Corporation: Managing Technological Advancements In Title Underwriting & The Challenges Related To The Same! – Major Drivers
American Financial Group: A Bear’s Perspective! – Major Drivers
Manulife Financial Corporation: Adaptation to Macro-Economic Changes and Regulatory Evolution in Asian Markets! – Major Drivers
The Allstate Corporation: Can Its Enhanced Advertising and Customer Acquisition Strategies Catalyze Revenues? – Major Drivers

Hyun Song Shin on How Big the Yen Carry Trade Really Is

By Odd Lots

The carry trade involves borrowing in lower yielding currencies like the yen and investing in higher yielding assets
The recent unwind of the carry trade caused temporary market stress, but quickly settled down
The actors involved in the carry trade range from speculators to institutions, making it a diverse ecosystem with varying motivations and impacts

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

Bank Mandiri (BMRI IJ) – Escalating Returns and Lower Credit Costs

By Angus Mackintosh

Bank Mandiri’s recent results reflect the success of the bank’s strategy to grow higher-yielding loans and its strength in corporate, commercial, and consumer loans, with micro showing slower growth.
The bank funding base remains solid with strong CASA growth, helping it to maintain NIMs. Mandiri’s mobile banking under Livin’ continues to drive its transactional banking, loan and deposit growth.
Bank Mandiri‘s upgrade to its loan growth projects speaks volumes about its confidence. With credit costs at less than 1% and ample liquidity, the bank is well-positioned for growth.

Equitable Holdings Inc.: Will Its Enhanced Strategic Focus on Wealth Management and Private Markets Pay Off? – Major Drivers

Equitable Holdings’ second quarter earnings report for 2024 highlighted the company’s strategic financial performance and growth initiatives.
Non-GAAP operating earnings reached $494 million, translating to $1.43 per share, a 23% increase year-over-year.
Adjusted for non-recurring items, the earnings per share stood at $1.52, surpassing the annual growth target.

F&G Annuities & Life: Expanding Product Portfolio and Market Penetration! – Major Drivers

F&G’s latest quarterly results showcase a robust performance with significant growth across various metrics.
The company, under the leadership of CEO Christopher Blunt and CFO Wendy Young, has effectively implemented strategies that are yielding fruitful results, aligning with the targets set out during the Investor Day in October 2023.
Starting with asset growth, F&G reported a substantial increase in assets under management (AUM), which stood at $61.4 billion, marking a 21% increase year-over-year.

CoinShares International – Termination of coverage

By Edison Investment Research

Edison Investment Research is terminating coverage on CoinShares International (CS). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant. Previously published reports can still be accessed via our website.

Cincinnati Financial Corporation: Expanding Strategic Agency Relationships and Distribution Network To Drive Growth! – Major Drivers

Cincinnati Financial has reported a strong performance for the second quarter of 2024, reflecting a robust financial position and sustained growth across various segments.
The company registered a net income of $312 million, bolstered by an after-tax increase of $112 million due to the appreciation in the fair value of equity securities.
Non-GAAP operating income also saw an uptick, rising by $13 million from the previous year to $204 million, a change attributed primarily to a $17 million increase in investment income.

First American Financial Corporation: Managing Technological Advancements In Title Underwriting & The Challenges Related To The Same! – Major Drivers

First American Financial Corporation recently disclosed its financial results for the second quarter of 2024, navigating a market fraught with challenges yet buoyed temporarily by a seasonal uplift in demand.
The company reported a total revenue of $1.6 billion with an adjusted earnings per diluted share of $1.27.
The title segment, a primary revenue generator for the company, saw an adjusted pretax margin of 11.9%, a slight decrease from the previous year’s 12.6%.

American Financial Group: A Bear’s Perspective! – Major Drivers

American Financial Group delivered a mixed performance in their second quarter of 2024, reflecting strength in several areas alongside areas of strategic pullback.
The company reported an 18.5% annualized core operating return on equity, denoting a robust utilization of equity in achieving profits.
Their specialty property and casualty (P&C) businesses continued to show strength with underwriting margins outperforming expectations due to higher rates, driving a 15% year-over-year increase in P&C net investment income excluding alternatives.

Manulife Financial Corporation: Adaptation to Macro-Economic Changes and Regulatory Evolution in Asian Markets! – Major Drivers

Manulife Financial recently held its second-quarter 2024 earnings call to review its financial and operating results.
The material focused on the company’s strategic updates, recent accomplishments, and future directions.
Positively, Manulife Financial showcased a transition from a high-risk, low Return on Equity (ROE) entity in 2017 to a lower-risk, high ROE company today.

The Allstate Corporation: Can Its Enhanced Advertising and Customer Acquisition Strategies Catalyze Revenues? – Major Drivers