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Smartkarma Daily Briefs

Dec 25
0

Daily Brief South Korea: Hyundai Motor , Samsung C&T and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Korea FSC Official: New Rule to Block “Treasury Stock Magic” Takes Effect on 31st
  • Change in Regulation of Treasury Shares Allocation Post Spinoffs Starting January 2025

Korea FSC Official: New Rule to Block “Treasury Stock Magic” Takes Effect on 31st

By Sanghyun Park

  • Korea FSC announced on the 24th that the updated Capital Markets Act rules, approved by the Cabinet, will take effect on the 31st.
  • Banning new shares to treasury stocks during spin-offs could shift board focus in Korea, reducing big shareholder influence and prioritizing the broader shareholder base.
  • The capital markets law change could shift shareholder returns from buybacks to dividends, marking a key inflection point for traders, especially in Korea’s preferred stock market.

Change in Regulation of Treasury Shares Allocation Post Spinoffs Starting January 2025

By Douglas Kim

  • Starting January 2025, there will be a major change in the regulation regarding the use of treasury shares during a company spinoff process.
  • The main change involves the practice of allocating newly issued shares to existing treasury shares held by companies during corporate spinoffs. 
  • This practice will now be banned which should help to reduce the wrongful use of treasury shares and improve minority shareholders’ rights. 

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Dec 25
0

Daily Brief United States: NVIDIA Corp, FedEx Corp, Crude Oil, Natural Gas, Jabil Circuit, Darden Restaurants, Factset Research Systems Inc, General Mills, Lamb Weston Holdings, Micron Technology and more

By | Daily Briefs, United States

In today’s briefing:

  • Nvidia (NVDA.US): To Establish Offshore Headquarter in Taiwan.
  • FedEx’s $30 Billion Spin-Off: A Game-Changer for Freight and Shareholders? – Major Drivers
  • [US Crude Oil Options Weekly 2024/51] WTI Futures Fall on Weak China Data and Fed Hawkishness
  • [US Nat Gas Options Weekly 2024/51] Henry Hub Surged for the Second Week on Robust Demand Outlook
  • Jabil Inc.: Can Its AI and Data Cloud Expansion Give Them A Competitive Edge? – Major Drivers
  • Darden’s Uber Partnership and Steakhouse Boom: Why Its Stock Is Holding Strong Despite Dropping Sales! – Major Drivers
  • FactSet Research System: Its Monetization of Gen AI Products Could Be A Multi-Faceted Growth Opportunity? – Major Drivers
  • Why General Mills’ Snacks and Cereal Are Unstoppable Despite Market Shifts! – Major Drivers
  • Lamb Weston Holdings Inc.: Expanded Customer Base & Volume Growth Driving Our Bullishness! – Major Drivers
  • Micron Bets Big on AI Chips Amid Sluggish Smartphone and PC Sales But Will It Work? – Major Drivers

Nvidia (NVDA.US): To Establish Offshore Headquarter in Taiwan.

By Patrick Liao

  • NVIDIA Corp (NVDA US) CEO Mr. Jensen Huang announced plans to establish an offshore headquarters in Taipei during his visit this June.
  • From a geopolitical perspective, Taiwan is one of the focal points where the U.S. and China could potentially be in conflict. 
  • Focusing on AI, NVIDIA Corp (NVDA US) is currently attracting significant attention, but the decision to establish an offshore headquarters in Taipei is raising curiosity.

FedEx’s $30 Billion Spin-Off: A Game-Changer for Freight and Shareholders? – Major Drivers

By Baptista Research

  • FedEx Corporation is embarking on a transformative journey with its announcement to spin off FedEx Freight into a standalone publicly traded company within the next 18 months.
  • The move, estimated to unlock over $30 billion in value, aims to streamline FedEx’s core operations and capitalize on the rising valuations of standalone trucking companies.
  • The spinoff is seen as a strategic step to enhance focus, competitiveness, and shareholder value.

[US Crude Oil Options Weekly 2024/51] WTI Futures Fall on Weak China Data and Fed Hawkishness

By Suhas Reddy

  • WTI futures fell 2.6% for the week ending 20/Dec, pressured by weak economic data, a robust dollar, and the Fed’s hawkish outlook on rate cuts in 2025.  
  • WTI options Put/Call volume ratio fell to 0.95 from 1.15 (13/Dec) last week, as call volume dropped by 52.5% WoW while put volume decreased by 60.8%.   
  • WTI OI PCR rose to 0.87 from 0.85 last week. Call OI fell by 18.5% WoW, while put OI declined by 16.3%. 

[US Nat Gas Options Weekly 2024/51] Henry Hub Surged for the Second Week on Robust Demand Outlook

By Suhas Reddy

  • US natural gas prices surged by 14.3% for the week ending 20/Dec, driven by rising LNG exports, favourable long-term weather forecasts, and stronger-than-expected declines in natural gas stockpiles.
  • Henry Hub Put/Call volume ratio fell sharply to 0.60 from 1.10 (13/Dec) the previous week as call volumes surged by 228.8% WoW, while put volumes increased by 77.6%. 
  • Henry Hub OI PCR inched up to 0.84 from 0.83 compared to last week. Call OI rose by 5.3% WoW, while put OI increased by 6.0%.

Jabil Inc.: Can Its AI and Data Cloud Expansion Give Them A Competitive Edge? – Major Drivers

By Baptista Research

  • Jabil Inc. entered the first quarter of its fiscal year 2025 with a relatively solid performance, as evidenced by its reported revenues and continued efforts in restructuring its business model.
  • The company reported $7 billion in revenue for the quarter, representing a 1% increase when excluding the impact of a prior-year divestiture in the Mobility segment.
  • Core operating income was $347 million, with a margin holding steady at 5%, despite a modest impact from recent hurricanes.

Darden’s Uber Partnership and Steakhouse Boom: Why Its Stock Is Holding Strong Despite Dropping Sales! – Major Drivers

By Baptista Research

  • Darden Restaurants recently delivered mixed financial results for its first fiscal quarter, marked by an earnings miss and a drop in same-store sales but bolstered by news of a promising partnership with Uber Technologies.
  • The company reported adjusted earnings of $1.75 per share, slightly below analysts’ estimates of $1.83, and revenue of $2.76 billion, missing the consensus forecast of $2.8 billion.
  • While total revenue improved year-over year due to acquisitions such as Tex-Mex chain Chuy’s for $605 million, same-store sales fell 1.1%, signaling challenges in attracting diners.

FactSet Research System: Its Monetization of Gen AI Products Could Be A Multi-Faceted Growth Opportunity? – Major Drivers

By Baptista Research

  • FactSet delivered a mixed set of results for its first fiscal quarter of 2025, showcasing positives in operating performance amid a backdrop of economic uncertainties and industry-specific challenges.
  • The company reported 4.5% growth in organic Annual Subscription Value (ASV) year-over-year, supported by favorable developments in its wealth management segment and a 7% growth in the Asia-Pacific region.
  • FactSet’s adjusted operating margin stood at 37.6%, and adjusted diluted earnings per share (EPS) reached $4.37.

Why General Mills’ Snacks and Cereal Are Unstoppable Despite Market Shifts! – Major Drivers

By Baptista Research

  • General Mills has shown a keen focus on accelerating its organic sales growth, particularly through targeting volume growth.
  • Leadership has prioritized enhancing market competitiveness by employing a “remarkable experience framework” to broaden its market share.
  • There are positive trends in consumer engagement with core brands, bolstered by increased investment in product innovation, brand building, and promotional activities.

Lamb Weston Holdings Inc.: Expanded Customer Base & Volume Growth Driving Our Bullishness! – Major Drivers

By Baptista Research

  • Lamb Weston reported financial results for the second quarter of fiscal year 2025, which fell short of expectations amidst challenging operating conditions.
  • The company experienced an 8% decline in net sales compared to the same period last year, driven primarily by a 6% reduction in volume due to declining restaurant traffic both domestically and internationally.
  • In the backdrop of a competitive environment, Lamb Weston faced incremental customer share losses and exit from lower-margin business in EMEA, further impacting sales and volume negatively.

Micron Bets Big on AI Chips Amid Sluggish Smartphone and PC Sales But Will It Work? – Major Drivers

By Baptista Research

  • Micron Technology Inc., a key player in the computer-memory chip industry, has faced significant headwinds, as evidenced by its recent revenue forecast, which missed analyst expectations.
  • The company projected fiscal second-quarter revenue of $7.9 billion, far below the average estimate of $8.99 billion, while profit forecasts also lagged significantly.
  • These results reflect sluggish demand in its largest markets—smartphones and personal computers—despite a notable surge in data center-related revenue and strong orders for artificial intelligence (AI) components.

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Dec 25
0

Daily Brief India: Insolation Energy, Kolte Patil Developers, Rajshree Polypack and more

By | Daily Briefs, India

In today’s briefing:

  • Insolation Energy Ltd- Forensic Analysis
  • Kolte Patil: On Track as Per FY25 Guidance
  • RPPL: Strong Q2 Led by Volume Growth and Margin Normalization

Insolation Energy Ltd- Forensic Analysis

By Nitin Mangal

  • Insolation Energy (INA IN), originated from Jaipur, Rajasthan has been a beneficiary of the heavy solar tailwinds in the last two years and has been involved in major capex phase.  
  • The company has received big contracts such as the MoU with government to the tune of INR 100 bn in spite of having net worth of only INR 1.1 bn.
  • As far as forensics is concerned, we notice several irregularities such as low capitalisations, misclassification of OCF, EPS, naïve accounting of investments, forex movements, strange movements in margins, etc.

Kolte Patil: On Track as Per FY25 Guidance

By Ankit Agrawal, CFA

  • Kolte Patil reported a decent Q2FY25 with highest ever quarterly pre-sales of INR 770cr, a growth of 22% YoY. Pre-sales volume corresponding to this was 1.03 MSF (Million Square Feet).
  • Notably, demand for premium projects has been strong. For H1FY25, 30% of pre-sales has come from 24K luxury segment. This compares to 12% in FY22.
  • Year-To-Date, new launch activity has been decent with the launch of 2.2 MSF of saleable area. This includes Kolte Patil’s entry in Navi Mumbai with a project launch in Vashi. 

RPPL: Strong Q2 Led by Volume Growth and Margin Normalization

By Ankit Agrawal, CFA

  • Q2FY25 performance was strong led by volume growth and margin improvement. Q2FY25 revenue grew 31% YoY and 12%+ QoQ. Volumes grew 24.6% YoY (9.5% QoQ) led by strong demand environment.
  • Margins have now normalized as raw material prices have stabilized. EBITDA margin improved to 14.9% vs 14.7% QoQ and 13.5% YoY. PAT margin grew to 5.8% vs 3.2% YoY.
  • RPPL’s value-added segments like barrier packaging and injection molding are growing rapidly. Exports are also steady at INR 10cr+ per quarter and have a strong order pipeline.

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Dec 25
0

Daily Brief China: Minieye Technology and more

By | China, Daily Briefs

In today’s briefing:

  • Minieye Technology IPO: Valuation Multiples Appear Justified Given Top-Line Growth of 30%+

Minieye Technology IPO: Valuation Multiples Appear Justified Given Top-Line Growth of 30%+

By Andrei Zakharov

  • Minieye Technology, a fast-growing provider of intelligent driving and cabin solutions in China, will price its IPO this week.
  • The company was backed by CICC Capital, Beijing Siwei, Shenzhen Zeyi, and Mr. Wu Yongming, the current CEO of Alibaba, among others.
  • IPO valuation multiples appear justified given the company’s top-line growth of 30%+ and full-stack in-house R&D capabilities.

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Dec 25
0

Daily Brief Japan: Matsuya Co Ltd and more

By | Daily Briefs, Japan

In today’s briefing:

  • Matsuya Targets ¥20 Billion Online

Matsuya Targets ¥20 Billion Online

By Michael Causton

  • Department store sales to locals plummeted in October, resulting in the first decline in 32 months.
  • While sluggish clothing sales was one factor, another was crowded luxury concessions putting off locals from visiting.
  • Matsuya thinks it has the answer: keeping locals and tourists separate using a new online store.

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Dec 25
0

Most Read: China National Building Material, Hang Seng TECH Index, Seven & I Holdings, Honda Motor, Kokusai Electric , AppLovin , Malaysia Airports Holdings, LG CNS, Greatview Aseptic Packaging, Hyundai Motor and more

By | Daily Briefs, Most Read

In today’s briefing:

  • CNBM (3323 HK)’s Buyback Ups Parent’s Stake >50%
  • How Has the Index Rebalance Strategy Performed in 2024?
  • 7&I (3382 JP) – Share Price Dipping Deeper Means Dipping Toes Deeper
  • Honda (7267 JP) – MAMMOTH New ¥1.1Trln Stock Buyback
  • Japan: Potential Passive Selling in February
  • S&P500 December 2024 Forecast (Final): Flipping the COIN
  • Malaysia Airports (MAHB MK): IFA Says NOT Fair, But Reasonable; And To Accept Terms
  • LG CNS IPO: Limited Float Pushes Back Passive Buying
  • GAPack (468 HK): XJF’s Offer Now Open
  • Korea FSC Official: New Rule to Block “Treasury Stock Magic” Takes Effect on 31st

CNBM (3323 HK)’s Buyback Ups Parent’s Stake >50%

By David Blennerhassett

How Has the Index Rebalance Strategy Performed in 2024?

By Brian Freitas

  • It has been a decent year for the index rebalance strategy, though there have been some big hiccups along the way.
  • Forecasting the index changes and impacts has been important, but timing (especially momentum/value regime changes) and hedge selection have also been major factors affecting the returns of the strategy.
  • As passive AUM continues to increase, we expect focus on the strategy to continue in 2025 with market players taking different approaches to trading the potential and announced index changes.

7&I (3382 JP) – Share Price Dipping Deeper Means Dipping Toes Deeper

By Travis Lundy

  • Seven & I Holdings (3382 JP) shares are in a lull here. Winter doldrums without news as the Ito consortium gets its ducks in a row and 7&i sells York.
  • Alimentation Couche-Tard (ATD CN) is waiting patiently. They have the ability to wait, and to fund, and pay up. 
  • An article/show is causing a dip today on top of last week’s weakness. This is a dip to buy.

Honda (7267 JP) – MAMMOTH New ¥1.1Trln Stock Buyback

By Travis Lundy

  • Today, along with the announcement of Memorandum of Understanding between Honda Motor (7267 JP), and Nissan Motor (7201 JP) to work towards negotiating a Joint Holding Company by June 2025… 
  • Honda cancelled their existing ¥100bn buyback, and initiated a truly mammoth NEW Buyback – up to 1.1 billion shares (23.7% of TSO), spending up to ¥1.1trln on market through Dec-2025.
  • Assuming the stock pops, it is probably “only” worth 15-18%, but that’s still a LOT. At that rate it boosts BVPS by 8+% on its own, and EPS by 17%.

Japan: Potential Passive Selling in February

By Brian Freitas

  • Currently, 9 stocks could be deleted from global passive portfolios in February. The deletion will lead to liquidity events where trackers will need to sell multiple days of ADV.
  • There has been a buildup on shorts on few stocks with minimal positioning in the other stocks. That could change once the calendar ticks over to 2025.
  • Kokusai Electric (6525 JP) is a potential inclusion to the Nikkei 225 (NKY INDEX) in March and this deletion could provide liquidity to enter a position ahead of that announcement.

S&P500 December 2024 Forecast (Final): Flipping the COIN

By Dimitris Ioannidis

  • Coinbase Global (COIN US) can be the unexpected addition by transition because of a high liquidity score and a close distance below the estimated transition threshold.
  • Lennox International (LII US) is the main candidate for addition by migration due to having the highest average mcap score and passing eligibility metrics.
  • Illumina Inc (ILMN US) has a muted conviction for addition because of ineligible earnings and a recent deletion from the index.

Malaysia Airports (MAHB MK): IFA Says NOT Fair, But Reasonable; And To Accept Terms

By David Blennerhassett

  • Back on the 15th May, a consortium (Khazanah Nasional, EPF, the Abu Dhabi Investment Authority, and Global Infrastructure Partners) collectively holding 41.22%, launched an Offer for Malaysia Airports (MAHB MK).
  • After some political gymnastics, MAHB squared away the necessary regulatory approvals, and a firm Offer was made on the 15th November. The Offer Doc dispatched on the 6th December. 
  • In the Circular on Friday, the IFA said NOT fair – with reference to a SOTP; but reasonable referencing historical market pricing and that no competing Offer will emerge. 

LG CNS IPO: Limited Float Pushes Back Passive Buying

By Brian Freitas

  • LG CNS (LGCNSZ KS) is looking to raise up to KRW 1,199bn (US$830m), valuing the company at KRW 6 trillion (US$4.15bn) at the top end of the IPO price range.
  • As a member of the IT sector, inclusion in the KOSPI200 Index will only take place via Fast Entry (near impossible) or as a large-scale company.
  • Inclusion in global indices could commence in September 2025 and will be easier if the identity of the pre-IPO minority shareholders is disclosed or if the strategic investors sell.

GAPack (468 HK): XJF’s Offer Now Open

By David Blennerhassett

  • On Friday, the 20th December, GAPack (468 HK) announced that Shandong Xinjufeng Technology (301296 CH) (XJF) had satisfied all pre-conditions.
  • The Offer Document has now been dispatched, and the Offer is now open for tendering. The First Close is the 21st January.
  • This Doc is largely a nothing burger. The Response Document, which will include the IFA, is required to be dispatched on or before the 7 January 2025. 

Korea FSC Official: New Rule to Block “Treasury Stock Magic” Takes Effect on 31st

By Sanghyun Park

  • Korea FSC announced on the 24th that the updated Capital Markets Act rules, approved by the Cabinet, will take effect on the 31st.
  • Banning new shares to treasury stocks during spin-offs could shift board focus in Korea, reducing big shareholder influence and prioritizing the broader shareholder base.
  • The capital markets law change could shift shareholder returns from buybacks to dividends, marking a key inflection point for traders, especially in Korea’s preferred stock market.

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  • ✓ Events & Webinars
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Dec 25
0

Daily Brief Industrials: Minieye Technology, Samsung C&T, FedEx Corp, Cintas Corp and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Minieye Technology IPO: Valuation Multiples Appear Justified Given Top-Line Growth of 30%+
  • Change in Regulation of Treasury Shares Allocation Post Spinoffs Starting January 2025
  • FedEx’s $30 Billion Spin-Off: A Game-Changer for Freight and Shareholders? – Major Drivers
  • Cintas Corporation: Customer Base Expansion through No Program Accounts As A Critical Factor Driving Growth! – Major Drivers

Minieye Technology IPO: Valuation Multiples Appear Justified Given Top-Line Growth of 30%+

By Andrei Zakharov

  • Minieye Technology, a fast-growing provider of intelligent driving and cabin solutions in China, will price its IPO this week.
  • The company was backed by CICC Capital, Beijing Siwei, Shenzhen Zeyi, and Mr. Wu Yongming, the current CEO of Alibaba, among others.
  • IPO valuation multiples appear justified given the company’s top-line growth of 30%+ and full-stack in-house R&D capabilities.

Change in Regulation of Treasury Shares Allocation Post Spinoffs Starting January 2025

By Douglas Kim

  • Starting January 2025, there will be a major change in the regulation regarding the use of treasury shares during a company spinoff process.
  • The main change involves the practice of allocating newly issued shares to existing treasury shares held by companies during corporate spinoffs. 
  • This practice will now be banned which should help to reduce the wrongful use of treasury shares and improve minority shareholders’ rights. 

FedEx’s $30 Billion Spin-Off: A Game-Changer for Freight and Shareholders? – Major Drivers

By Baptista Research

  • FedEx Corporation is embarking on a transformative journey with its announcement to spin off FedEx Freight into a standalone publicly traded company within the next 18 months.
  • The move, estimated to unlock over $30 billion in value, aims to streamline FedEx’s core operations and capitalize on the rising valuations of standalone trucking companies.
  • The spinoff is seen as a strategic step to enhance focus, competitiveness, and shareholder value.

Cintas Corporation: Customer Base Expansion through No Program Accounts As A Critical Factor Driving Growth! – Major Drivers

By Baptista Research

  • Cintas Corporation recently released its fiscal 2025 second-quarter results, highlighting strong financial performance but facing some challenges.
  • The company experienced robust demand for its diverse service offerings, contributing to a 7.8% increase in total revenue, reaching $2.56 billion.
  • The organic growth rate, adjusted for acquisitions and currency impacts, stood at 7.1%.

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  • ✓ Custom Watchlists
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  • ✓ Events & Webinars
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Dec 25
0

Daily Brief Energy/Materials: Insolation Energy, Crude Oil, SGX Rubber Future TSR20, Natural Gas, Rajshree Polypack and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • Insolation Energy Ltd- Forensic Analysis
  • [US Crude Oil Options Weekly 2024/51] WTI Futures Fall on Weak China Data and Fed Hawkishness
  • Vietnam Rubber Group (VRG) Showcases Its EUDR Preparedness At Annual Rubber Conference
  • [US Nat Gas Options Weekly 2024/51] Henry Hub Surged for the Second Week on Robust Demand Outlook
  • RPPL: Strong Q2 Led by Volume Growth and Margin Normalization

Insolation Energy Ltd- Forensic Analysis

By Nitin Mangal

  • Insolation Energy (INA IN), originated from Jaipur, Rajasthan has been a beneficiary of the heavy solar tailwinds in the last two years and has been involved in major capex phase.  
  • The company has received big contracts such as the MoU with government to the tune of INR 100 bn in spite of having net worth of only INR 1.1 bn.
  • As far as forensics is concerned, we notice several irregularities such as low capitalisations, misclassification of OCF, EPS, naïve accounting of investments, forex movements, strange movements in margins, etc.

[US Crude Oil Options Weekly 2024/51] WTI Futures Fall on Weak China Data and Fed Hawkishness

By Suhas Reddy

  • WTI futures fell 2.6% for the week ending 20/Dec, pressured by weak economic data, a robust dollar, and the Fed’s hawkish outlook on rate cuts in 2025.  
  • WTI options Put/Call volume ratio fell to 0.95 from 1.15 (13/Dec) last week, as call volume dropped by 52.5% WoW while put volume decreased by 60.8%.   
  • WTI OI PCR rose to 0.87 from 0.85 last week. Call OI fell by 18.5% WoW, while put OI declined by 16.3%. 

Vietnam Rubber Group (VRG) Showcases Its EUDR Preparedness At Annual Rubber Conference

By Vinod Nedumudy

  • 40-45% of production forest areas in Vietnam certified for sustainable  management 
  • VRG sold over 800 tons EUDR rubber netting an additional US$250/ton
  • Member firms abroad readying to sign contracts on EUDR rubber

[US Nat Gas Options Weekly 2024/51] Henry Hub Surged for the Second Week on Robust Demand Outlook

By Suhas Reddy

  • US natural gas prices surged by 14.3% for the week ending 20/Dec, driven by rising LNG exports, favourable long-term weather forecasts, and stronger-than-expected declines in natural gas stockpiles.
  • Henry Hub Put/Call volume ratio fell sharply to 0.60 from 1.10 (13/Dec) the previous week as call volumes surged by 228.8% WoW, while put volumes increased by 77.6%. 
  • Henry Hub OI PCR inched up to 0.84 from 0.83 compared to last week. Call OI rose by 5.3% WoW, while put OI increased by 6.0%.

RPPL: Strong Q2 Led by Volume Growth and Margin Normalization

By Ankit Agrawal, CFA

  • Q2FY25 performance was strong led by volume growth and margin improvement. Q2FY25 revenue grew 31% YoY and 12%+ QoQ. Volumes grew 24.6% YoY (9.5% QoQ) led by strong demand environment.
  • Margins have now normalized as raw material prices have stabilized. EBITDA margin improved to 14.9% vs 14.7% QoQ and 13.5% YoY. PAT margin grew to 5.8% vs 3.2% YoY.
  • RPPL’s value-added segments like barrier packaging and injection molding are growing rapidly. Exports are also steady at INR 10cr+ per quarter and have a strong order pipeline.

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

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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
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Dec 25
0

Daily Brief Industrials: Minieye Technology, Samsung C&T, FedEx Corp, Cintas Corp and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Minieye Technology IPO: Valuation Multiples Appear Justified Given Top-Line Growth of 30%+
  • Change in Regulation of Treasury Shares Allocation Post Spinoffs Starting January 2025
  • FedEx’s $30 Billion Spin-Off: A Game-Changer for Freight and Shareholders? – Major Drivers
  • Cintas Corporation: Customer Base Expansion through No Program Accounts As A Critical Factor Driving Growth! – Major Drivers

Minieye Technology IPO: Valuation Multiples Appear Justified Given Top-Line Growth of 30%+

By Andrei Zakharov

  • Minieye Technology, a fast-growing provider of intelligent driving and cabin solutions in China, will price its IPO this week.
  • The company was backed by CICC Capital, Beijing Siwei, Shenzhen Zeyi, and Mr. Wu Yongming, the current CEO of Alibaba, among others.
  • IPO valuation multiples appear justified given the company’s top-line growth of 30%+ and full-stack in-house R&D capabilities.

Change in Regulation of Treasury Shares Allocation Post Spinoffs Starting January 2025

By Douglas Kim

  • Starting January 2025, there will be a major change in the regulation regarding the use of treasury shares during a company spinoff process.
  • The main change involves the practice of allocating newly issued shares to existing treasury shares held by companies during corporate spinoffs. 
  • This practice will now be banned which should help to reduce the wrongful use of treasury shares and improve minority shareholders’ rights. 

FedEx’s $30 Billion Spin-Off: A Game-Changer for Freight and Shareholders? – Major Drivers

By Baptista Research

  • FedEx Corporation is embarking on a transformative journey with its announcement to spin off FedEx Freight into a standalone publicly traded company within the next 18 months.
  • The move, estimated to unlock over $30 billion in value, aims to streamline FedEx’s core operations and capitalize on the rising valuations of standalone trucking companies.
  • The spinoff is seen as a strategic step to enhance focus, competitiveness, and shareholder value.

Cintas Corporation: Customer Base Expansion through No Program Accounts As A Critical Factor Driving Growth! – Major Drivers

By Baptista Research

  • Cintas Corporation recently released its fiscal 2025 second-quarter results, highlighting strong financial performance but facing some challenges.
  • The company experienced robust demand for its diverse service offerings, contributing to a 7.8% increase in total revenue, reaching $2.56 billion.
  • The organic growth rate, adjusted for acquisitions and currency impacts, stood at 7.1%.

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

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  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
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  • ✓ Events & Webinars
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Dec 25
0

Daily Brief TMT/Internet: NVIDIA Corp, BP PLC, Jabil Circuit, BlackBerry Ltd, Micron Technology, Factset Research Systems Inc, Paychex Inc and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Nvidia (NVDA.US): To Establish Offshore Headquarter in Taiwan.
  • Tech Supply Chain Tracker (25-Dec-2024): Japanese IDMs’ global investment plans.
  • Jabil Inc.: Can Its AI and Data Cloud Expansion Give Them A Competitive Edge? – Major Drivers
  • BlackBerry’s IoT Boom: Can It Outpace Challenges in Cybersecurity? – Major Drivers
  • Micron Bets Big on AI Chips Amid Sluggish Smartphone and PC Sales But Will It Work? – Major Drivers
  • FactSet Research System: Its Monetization of Gen AI Products Could Be A Multi-Faceted Growth Opportunity? – Major Drivers
  • Paychex Inc.: These Are The 7 Biggest Factors Impacting Its Performance In 2025 & Beyond! – Major Drivers

Nvidia (NVDA.US): To Establish Offshore Headquarter in Taiwan.

By Patrick Liao

  • NVIDIA Corp (NVDA US) CEO Mr. Jensen Huang announced plans to establish an offshore headquarters in Taipei during his visit this June.
  • From a geopolitical perspective, Taiwan is one of the focal points where the U.S. and China could potentially be in conflict. 
  • Focusing on AI, NVIDIA Corp (NVDA US) is currently attracting significant attention, but the decision to establish an offshore headquarters in Taipei is raising curiosity.

Tech Supply Chain Tracker (25-Dec-2024): Japanese IDMs’ global investment plans.

By Tech Supply Chain Tracker

  • Japanese IDMs are increasing global investments, while the US keeps a close eye on China’s chip industry to adjust supply chains.
  • Compal Electronics introduces a new liquid cooling solution for effective cooling of electronic devices.
  • Google enhances AI visual generation with Veo 2, Imagen 3, and Whisk, while Innolux focuses on FOPLP and Lam boosts fab efficiency with collaborative robots.

Jabil Inc.: Can Its AI and Data Cloud Expansion Give Them A Competitive Edge? – Major Drivers

By Baptista Research

  • Jabil Inc. entered the first quarter of its fiscal year 2025 with a relatively solid performance, as evidenced by its reported revenues and continued efforts in restructuring its business model.
  • The company reported $7 billion in revenue for the quarter, representing a 1% increase when excluding the impact of a prior-year divestiture in the Mobility segment.
  • Core operating income was $347 million, with a margin holding steady at 5%, despite a modest impact from recent hurricanes.

BlackBerry’s IoT Boom: Can It Outpace Challenges in Cybersecurity? – Major Drivers

By Baptista Research

  • BlackBerry’s third-quarter fiscal results delivered a mix of optimism and caution as the company reported stronger-than-expected profitability, positive cash flow, and notable progress in its strategic transformation.
  • The stock surged 20% to $3.59, marking its highest close since May, as investors reacted to the earnings beat despite a downward revision in the fiscal-year guidance.
  • The quarter saw BlackBerry posting an adjusted profit of 2 cents per share, surpassing analysts’ expectations of a 1-cent loss.

Micron Bets Big on AI Chips Amid Sluggish Smartphone and PC Sales But Will It Work? – Major Drivers

By Baptista Research

  • Micron Technology Inc., a key player in the computer-memory chip industry, has faced significant headwinds, as evidenced by its recent revenue forecast, which missed analyst expectations.
  • The company projected fiscal second-quarter revenue of $7.9 billion, far below the average estimate of $8.99 billion, while profit forecasts also lagged significantly.
  • These results reflect sluggish demand in its largest markets—smartphones and personal computers—despite a notable surge in data center-related revenue and strong orders for artificial intelligence (AI) components.

FactSet Research System: Its Monetization of Gen AI Products Could Be A Multi-Faceted Growth Opportunity? – Major Drivers

By Baptista Research

  • FactSet delivered a mixed set of results for its first fiscal quarter of 2025, showcasing positives in operating performance amid a backdrop of economic uncertainties and industry-specific challenges.
  • The company reported 4.5% growth in organic Annual Subscription Value (ASV) year-over-year, supported by favorable developments in its wealth management segment and a 7% growth in the Asia-Pacific region.
  • FactSet’s adjusted operating margin stood at 37.6%, and adjusted diluted earnings per share (EPS) reached $4.37.

Paychex Inc.: These Are The 7 Biggest Factors Impacting Its Performance In 2025 & Beyond! – Major Drivers

By Baptista Research

  • Paychex’s recent earnings presentation shows a nuanced business performance with both strengths and challenges to consider.
  • The company reported a 5% increase in total revenue, excluding the expiration of the Employee Retention Tax Credit (ERTC) program, which stands against a 7% revenue growth when adjusted for the ERTC’s effects.
  • The company’s management solutions and PEO (Professional Employer Organization) and insurance solutions have been central to its growth narrative, with corresponding 3% and 7% revenue increases, respectively.

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