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Smartkarma Daily Briefs

May 29
0

Daily Brief Event-Driven: S&P/​​​​​​​​​ASX Index Rebalance Preview: Regular & Ad Hoc Changes in June and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • S&P/​​​​​​​​​ASX Index Rebalance Preview: Regular & Ad Hoc Changes in June
  • PNB Housing: Block Deal Trade Special Situations and Tactical Trade Strategy
  • QV Equities (QVE AU): 28th June Shareholder Vote
  • DS Dansuk: Block Deal Sale by Stonebridge Capital
  • JSE June ‘24 Rebalance Rankings: No Changes Expected + NPN X PRX Discount Update
  • Quiddity Leaderboard SE600 Jun 24: Potential ADDs Could Continue to Outperform Potential DELs
  • BBVA Files Hostile Offer: Conditions, Defences and Probabilities

S&P/​​​​​​​​​ASX Index Rebalance Preview: Regular & Ad Hoc Changes in June

By Brian Freitas

  • With the review period complete, we take a look at the potential index changes at the June rebalance as well as potential index inclusions due to M&A.
  • Timing is key for the ad hoc inclusions to the S&P/ASX 200 (AS51 INDEX) with an ad hoc inclusion being announced prior to the regular announcement.
  • Passive trackers will need to buy 1.3-27x ADV on the expected adds and have 0.8-4.7x ADV to sell on the expected deletes. Shorts have built up on the potential deletes.

PNB Housing: Block Deal Trade Special Situations and Tactical Trade Strategy

By Nimish Maheshwari

  • Impending block deals which generally create supply over-hang on the stock leads to a negative impact on the stock. 
  • These block deals generally include selling promoters and big funds at a price discount to its current market price. 
  • Historically, such events suggest once the block deal is done; stock reacts positively creating a Special Situation Opportunity

QV Equities (QVE AU): 28th June Shareholder Vote

By David Blennerhassett

  • On the 12th March, Aussie-based investment plays QV Equities Ltd (QVE AU) and WAM Leaders Ltd (WLE AU)  entered into a Scheme. 
  • The current scrip terms are 0.739 new WAM shares per QVE share; OR A$0.989/share cash. Terms will be adjusted for updated pre-tax NTA/shares of both companies after the Scheme Meeting. 
  • The Scheme Booklet is now out, with a Scheme Meeting to be held on the 28th June. Expected implementation on the 15 July. The IE says fair & reasonable.

DS Dansuk: Block Deal Sale by Stonebridge Capital

By Douglas Kim

  • After the market close on 28 May, it was announced that Stonebridge Capital plans to conduct a block deal sale of a portion of its stake in DS Dansuk.
  • This deal involves 210,000 to 290,000 shares of DS Dansuk. The block deal price range is from 99,800 won to 101,400 won, which represents 7.06% to 8.52% discount.
  • After this second block deal, there will be further overhang concerns about additional sales of DS Dansuk by Stonebridge Capital in the coming months. 

JSE June ‘24 Rebalance Rankings: No Changes Expected + NPN X PRX Discount Update

By Charlotte van Tiddens, CFA

  • Last night, the price snapshot was taken for the JSE June rebalance.

  • We do not anticipate any index changes for the Top 40, FINDI, FINI, INDI or RESI.

  • There are several noteworthy free float changes across ALSI constituents, particularly amongst foreign counters (detail below).

Quiddity Leaderboard SE600 Jun 24: Potential ADDs Could Continue to Outperform Potential DELs

By Janaghan Jeyakumar, CFA

  • The SE600 index is one of the most widely followed benchmark indices in Europe. This index is rebalanced on a quarterly basis.
  • The base date for rankings for the June 2024 index rebal event is 31st May 2024. In this insight, we take a look at the latest list of potential ADDs/DELs.
  • Currently, I see 7 ADDs and 7 DELs for the SE600 index. There are more names just outside the border requiring small price changes to get involved in index changes.

BBVA Files Hostile Offer: Conditions, Defences and Probabilities

By Jesus Rodriguez Aguilar

  • On 24 May, Banco Bilbao Vizcaya Argentari (BBVA SM) submitted the authorisation request for its all-stock offer for Banco De Sabadell SA (SAB SM). Closing expected to take 6-8 months.
  • Gross spread (CSP 27 May) is 7.6%, which This translates in a 52% implied probability of deal success. The fixed income market appears to share this view.
  • Nevertheless, from a long-only perspective, the risk/reward of Sabadell is interesting. The deal values Sabadell’s shares at €2.07 each, an implied equity value of €11,187 million, for a 0.92 P/TBV.

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May 29
0

Daily Brief Equity Bottom-Up: Akatsuki Inc (TYO 3932): A $188M Net Net Japanese Game Developer and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Akatsuki Inc (TYO 3932): A $188M Net Net Japanese Game Developer
  • Tech Supply Chain Tracker (29-May-2024): Samsung targets 1,000-layer 3D NAND by 2030.
  • Indian Energy Exchange: Do You Want to Earn a Royalty on India’s Economic Growth?
  • Is Akeso’s Sell-Off a Long Waited Opportunity or a Long Overdue Correction?
  • Yahoo Still Falling Further Behind Amazon and Rakuten
  • UMC (2303.TT; UMC.US): The Outlook for 2024 Could Show Flat to Low Single-Digit Growth.
  • Chariot Limited (AIM: CHAR): Drilling success onshore Morocco
  • JTEC Corp (3446) – Facing Some Challenges over Lead Times
  • Virtuoso Optoelectronics Ltd- Forensic Analysis
  • DRX: Here We Go Again; Increasing TP on Contract Announcement

Akatsuki Inc (TYO 3932): A $188M Net Net Japanese Game Developer

By Altay Capital

  • Akatsuki Inc (TYO 3932) is a net-net Japanese video game developer with 10 years of profitability.
  • They’re undergoing a big transformation in an effort to better compete globally by investing enormous amounts into their core development capabilities and increasing their average budget per game 3-6x.
  • They recently formed a capital alliance with Sony (6758) and Koei Tecmo (TYO 3635) with each taking a 10% and 8% stake respectively.

Tech Supply Chain Tracker (29-May-2024): Samsung targets 1,000-layer 3D NAND by 2030.

By Tech Supply Chain Tracker

  • Samsung aims to revolutionize memory technology by launching 1,000-layer 3D NAND by 2030, utilizing innovative materials for enhanced performance.
  • Lenovo expands its market reach with AI PCs targeting a global audience, but faces stiff competition amidst concerns over Indian restrictions on imported PCs and notebooks.
  • TSMC’s collaboration in Taiwan on 7nm tech brings together academia and industry, while China, Japan, and South Korea look to strengthen supply chains at a summit for mutual benefit. Samsung aims to increase its presence in China through collaboration.

Indian Energy Exchange: Do You Want to Earn a Royalty on India’s Economic Growth?

By Contrarian Cashflows

  • As one of the fastest-growing economies globally, India is projected to become the third-largest economy, trailing only China and the US, by 2027.
  • Amid macroeconomic challenges worldwide, investors are eager to tap into India’s robust economic growth.
  • However, economic growth does not always correlate with equity market growth, as seen in Spain and Italy during the 1980s and 1990s, and more recently in China.

Is Akeso’s Sell-Off a Long Waited Opportunity or a Long Overdue Correction?

By Eric Wen

  • Disputable Phase III result of Akeso’s (9926 HK) flagship pipeline Ivonescimab (AK112) caused Akeso’s share price to drop 28% in three days, reaching the bottom of a year-long trading range;
  • The fundamental difference of opinions is around Ivonescimab’s global prospects against (1) Merck’s Keytruda, (2) J&J’s Rybrevant, (3) Kelun’s SKB264 and domestic prospect against (4) Innovent’s IBI305;
  • Some answers are clear while others are now. What can provide answers are (1) SKB264‘s Phase III data, and to a lesser degree (2) AK112’s head-to-head trial against Keytruda.

Yahoo Still Falling Further Behind Amazon and Rakuten

By Michael Causton

  • LY (4689 JP)‘s Yahoo Shopping looks to be in trouble after five straight quarters of negative growth while Amazon and Rakuten move ahead.
  • Despite a revenue increase in 4Q2023, Yahoo Shopping continues to struggle with merchant fraud and a lack of a clear USP.
  • If effective integration between the many parts of LY is not forthcoming soon, the company may eventually attract demands for better synergies, as well as a stick-wielding Softbank.

UMC (2303.TT; UMC.US): The Outlook for 2024 Could Show Flat to Low Single-Digit Growth.

By Patrick Liao

  • UMC is currently forecasting a flat to low single digit growth QoQ for 3Q24, which is slight lower than consensus.
  • UMC has received orders from domestic and international clients. However, we believe it couldn’t be able to compensate for the loss of Samsung’s 28nm orders so far this year.
  • With accelerated construction in Singapore in 2024, the full-year capital expenditure has slightly risen to $3.3 billion.

Chariot Limited (AIM: CHAR): Drilling success onshore Morocco

By Auctus Advisors

  • The OBA-1 well onshore Morocco has encountered an approximate 70 m gross interval containing elevated resistivities coincident with elevated mud gas readings, indicating potential gas pays, with no water-bearing reservoirs identified.
  • While the approximate 200 m gross thickness for the reservoirs is in line with pre-drill expectations, the absence of water in the 70 m gross interval is particularly encouraging and could suggest larger than expected resources (12 bcf pre drill).
  • The well is now expected to be tested in 3Q24.

JTEC Corp (3446) – Facing Some Challenges over Lead Times

By Astris Advisory Japan

  • Lengthening order lead times impacting revenue recognition – Q1-3 FY6/24 results were behind expectations in our view, with sales declining 27.6% YoY.
  • Whilst a negative optic, the reason stems from lengthening lead times for shipment, given customer demands for more high-end and exacting technical requirements for custom-made products requiring more time for delivery.
  • We believe this highlights the value-added technical expertise of the company and delays in revenue recognition. 

Virtuoso Optoelectronics Ltd- Forensic Analysis

By Nitin Mangal

  • Virtuoso Optoelectronics (VOEPL IN)  is a contract manufacturer company engaged into production of ACs, Lightings and other equipments. The company is renowned for supplying ACs to Voltas.
  • The company has grown sharply over the last five years and has been engaging in constant capex. However, it does struggle in converting its earnings to cash.
  • Among the forensic checks, it nets off receivables and payables/advances, the exact nature of these line items cannot be commented upon. VOEPL also faces high cost of borrowings

DRX: Here We Go Again; Increasing TP on Contract Announcement

By Atrium Research

  • ADF announced a series of new contracts totalling $90M spanning the pharmaceutical, industrial, and public infrastructure sectors.
  • This includes additional work awarded for the pharmaceutical project in the Midwest U.S. which ADF was recently awarded phase 2 for.
  • ADF will be reporting Q1/25 on June 11th, we are expecting $90.1M revenue (12% YoY), 23.5% gross margin, and $17.2M EBITDA (19% margin).

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May 29
0

Daily Brief Macro: Smartkarma Webinar | Significant Shift in Fed Policy Expectations: Implications for ASEAN Markets and more

By | Daily Briefs, Macro

In today’s briefing:

  • Smartkarma Webinar | Significant Shift in Fed Policy Expectations: Implications for ASEAN Markets
  • Positioning Watch – AI (NVIDIA) is overshadowing everything else
  • India Politics: A Smaller Win for the BJP Not Necessarily a Bad Thing
  • The Week At A Glance: Another hawkish EUR-flation surprise?
  • Great Game – Israel and China testing boundaries
  • CX Daily: China’s Pension Plan Faces Prospect for Change or Going Bust
  • Car Crash | May 28, 2024
  • UK Politics: Pre-Election ‘Snapshots’
  • Active Asia Ex-Japan Funds: Top-Down Country Insights

Smartkarma Webinar | Significant Shift in Fed Policy Expectations: Implications for ASEAN Markets

By Smartkarma Research

  • In the next installment of our Webinar series, in collaboration with ASEAN Exchanges, we go live with Smartkarma Insight Provider Said Desaque. 
  • Courtesy of strong economic data, financial markets have significantly revised their expectations for Fed policy in 2024.
  • The June FOMC meeting is pivotal, with upcoming information potentially shaping forward guidance for the next year.
  • Ending quantitative tightening (QT) could have several implications for ASEAN credit markets, such as benefiting economies with substantial USD-denominated corporate borrowing.

Join us as Said Desaque shares his expert analysis on these developments and what they mean for the future of ASEAN financial markets.

The webinar will be hosted on Wednesday, 5 June 2024, 17:30 SGT/HKT.

Said Desaque is a professional economist with over 35 years of experience covering the global economy, with significant expertise in the US, China, Japan and emerging markets. He worked with US investment banks for over 25 years covering institutional investors in Europe, Middle East, Far East and Australia. Covers financial markets on a multi asset basis. Said has been an independent economist covering the global economy and financial markets for over 10 years since founding DeSaque Macro Research in London.

Positioning Watch – AI (NVIDIA) is overshadowing everything else

By Andreas Steno

  • Hello everyone, and welcome back to our weekly positioning watch.
  • Equities have been dragged higher over the past week after NVIDIA published yet another earnings surprise, and markets were funnily enough buying into other Tech equities on the back of NVIDIAs earnings – strengthening the argument as to why AI / NVIDIA has proven to be a major driver in the equity space.
  • Every single time NVIDIA or other GPU companies’ earnings surprise positively, we are witnessing a subsequent boom in the amount of AI related news, which are rapidly increasing at the moment.

India Politics: A Smaller Win for the BJP Not Necessarily a Bad Thing

By Manu Bhaskaran

  • Despite pre-election polls suggesting a landslide win for Modi’s party, lower turnout and a reliance on hard-handed campaign tactics suggest that the election is no walk in the park. 
  • With the BJP’s core vote maxed out in 2019, expanding its parliamentary majority will require harder-to-pick fruits beyond its traditional base. 
  • While more-ambitious parts of the economic reform agenda may be set back, improved checks and balances in India’s political system is by no means a negative. 

The Week At A Glance: Another hawkish EUR-flation surprise?

By Andreas Steno

  • Welcome to our weekly overview of the most important key figure releases and how to trade them.
  • We generally see a week of bad inflation news ahead of us and it will likely continue to emphasize recent trends in EUR (and GBP rates), also relative to USD rates.
  • EUR/USD (and GBP/USD) could continue to see support from relative rates as a consequence.

Great Game – Israel and China testing boundaries

By Mikkel Rosenvold

  • Welcome to this week’s Great Game after an eventful week in Geopolitics.
  • This week we cover four topics:Israel-Egypt border stand-off. Mexican election. Chinese drills around Taiwan.
  • Israel-Egypt border stand-off situation: An Egyptian soldier was killed after at minor exchange of fire with Israeli troops near the Gaza-Egypt border on Monday.

CX Daily: China’s Pension Plan Faces Prospect for Change or Going Bust

By Caixin Global

  • Pension / Cover Story: China’s pension plan faces prospect for change or going bust
  • Exports /China facing container shortage as exporters rush to beat looming U.S. tariffs
  • Personnel /Chinese foreign ministry promotes long-time spokesperson to vice minister

Car Crash | May 28, 2024

By Mark Tinker

  • Globalisation is unravelling rapidly The timing of the US tariff announcement was clearly political and aimed at voters and producers rather than consumers.
  • However, it marks an important shift in unravelling the world of Globalisation, as well as threatening EU unity and exposing the inherent contradictions in believing net zero is a job creating policy.
  • The timing of the announcement last week that the US would impose tariffs of 100% on Chinese exports of EVs, as well as varying % tariffs on steel, batteries, solar cells, and critical minerals was obviously political, as many of the key swing states in the upcoming US Election are facing intense competition from China and politicians need to promise jobs in order to get elected.

UK Politics: Pre-Election ‘Snapshots’

By Alastair Newton

  • Prime Minister Rishi Sunak’s decision to call a general election earlier than expected has some economic and political rationale.
  • Despite this, it is likely that Sunak’s Conservative Party will face a significant loss.
  • The Labour Party, still affected by the events of 1992, is expected to be the main beneficiary of this defeat.

Active Asia Ex-Japan Funds: Top-Down Country Insights

By Steven Holden

  • South Korean Pivot:  Asia Ex-Japan investors move to overweight South Korea for the first time in our history, SK Hynix and Kia Corp among the beneficiaries. 
  • India Fatigue: Despite India’s outperformance and rising fund weights, managers show caution, with nearly 2/3rds of funds underweight the benchmark.
  • China All-Time Lows: China & HK fund weights have dropped significantly from 53.5% in 2020 to 34.8% today, just above a 13-year low, signaling a critical juncture for re-evaluation.

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May 29
0

Daily Brief Thailand: Valeura Energy Inc and more

By | Daily Briefs, Thailand

In today’s briefing:

  • Valeura Energy (TSX: VLE): Drilling success likely to add further resources

Valeura Energy (TSX: VLE): Drilling success likely to add further resources

By Auctus Advisors

  • Two wells recently drilled at Nong Yao are likely to add some reserves.
  • The 37H development well has been put on production from the primary reservoir at an initial flow rate of ~500 bbl/d net to Valeura’s WI.
  • The well has also encountered 68 feet of net oil pay across eight separate appraisal target intervals.

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May 29
0

Daily Brief Australia: Deep Yellow Ltd, QV Equities Ltd, Brainfish Pty and more

By | Australia, Daily Briefs

In today’s briefing:

  • S&P/​​​​​​​​​ASX Index Rebalance Preview: Regular & Ad Hoc Changes in June
  • QV Equities (QVE AU): 28th June Shareholder Vote
  • Surge leads self-service customer support platform Brainfish’s US$2.5M seed round | e27

S&P/​​​​​​​​​ASX Index Rebalance Preview: Regular & Ad Hoc Changes in June

By Brian Freitas

  • With the review period complete, we take a look at the potential index changes at the June rebalance as well as potential index inclusions due to M&A.
  • Timing is key for the ad hoc inclusions to the S&P/ASX 200 (AS51 INDEX) with an ad hoc inclusion being announced prior to the regular announcement.
  • Passive trackers will need to buy 1.3-27x ADV on the expected adds and have 0.8-4.7x ADV to sell on the expected deletes. Shorts have built up on the potential deletes.

QV Equities (QVE AU): 28th June Shareholder Vote

By David Blennerhassett

  • On the 12th March, Aussie-based investment plays QV Equities Ltd (QVE AU) and WAM Leaders Ltd (WLE AU)  entered into a Scheme. 
  • The current scrip terms are 0.739 new WAM shares per QVE share; OR A$0.989/share cash. Terms will be adjusted for updated pre-tax NTA/shares of both companies after the Scheme Meeting. 
  • The Scheme Booklet is now out, with a Scheme Meeting to be held on the 28th June. Expected implementation on the 15 July. The IE says fair & reasonable.

Surge leads self-service customer support platform Brainfish’s US$2.5M seed round | e27

By e27

  • Brainfish, an AI-powered self-service customer support platform for businesses, has raised US$2.5 million in seed funding.
  • The latest round was led by Peak XV’s Surge, with participation from Macdoch Ventures, Black Sheep Capital, existing angel Justus Hammer (CEO MadPaws), and new angels.
  • This brings its total capital to US$3.3 million.

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May 29
0

Daily Brief Singapore: Rize , UOL Group and more

By | Daily Briefs, Singapore

In today’s briefing:

  • Temasek co-leads $14m round of SG agritech firm Rize
  • STI Gains 7% over Six Weeks on Net Institutional Inflow

Temasek co-leads $14m round of SG agritech firm Rize

By Tech in Asia

  • Rize, a Singapore-based agritech startup, has secured US$14 million in a series A funding round co-led by Breakthrough Energy Ventures, GenZero, Temasek, and Wavemaker Impact.
  • The company plans to use the funds to boost its presence in other markets like Indonesia and Vietnam.
  • It also aims to increase its team of agronomy experts to over 100. Rize’s platform gathers key agricultural information needed for sustainable farming.

STI Gains 7% over Six Weeks on Net Institutional Inflow

By Geoff Howie

  • On 27 May, the STI closed at 3,318.45, its highest close since August 2023.
  • STI stocks within the Real Estate Management and Development sector – Hongkong Land, City Developments and UOL Group – all booked net institutional inflow while averaging 7.1% total returns.
  • 10 Real Estate (Ex-REITs) stocks that booked most net institutional inflow since 16 April Code Mkt Cap S$M YTD ADT S$M YTD NIF S$M YTD TR % 17 April – 27 May NIF / Mkt Cap 16 April – 27 May TR % Sector.

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May 29
0

Daily Brief South Korea: DS Dansuk, Shift Up and more

By | Daily Briefs, South Korea

In today’s briefing:

  • DS Dansuk: Block Deal Sale by Stonebridge Capital
  • Shift Up IPO: The Investment Case
  • Shift Up IPO – Thoughts on Valuations – Bear/Base/Bull

DS Dansuk: Block Deal Sale by Stonebridge Capital

By Douglas Kim

  • After the market close on 28 May, it was announced that Stonebridge Capital plans to conduct a block deal sale of a portion of its stake in DS Dansuk.
  • This deal involves 210,000 to 290,000 shares of DS Dansuk. The block deal price range is from 99,800 won to 101,400 won, which represents 7.06% to 8.52% discount.
  • After this second block deal, there will be further overhang concerns about additional sales of DS Dansuk by Stonebridge Capital in the coming months. 

Shift Up IPO: The Investment Case

By Arun George

  • Shift Up (462870 KS) is Korea’s leading game development studio. It is seeking to raise up to US$320 million.    
  • Shift Up now focuses only on game development and has a policy of publishing games in cooperation with global partners such as Tencent (700 HK) and Sony Corp (6758 JP). 
  • The investment case rests on a stellar game development track record, several growth drivers, high profitability and cash generation.

Shift Up IPO – Thoughts on Valuations – Bear/Base/Bull

By Sumeet Singh

  • Shift Up (462870 KS) plans to raise up to US$320m in its South Korean IPO.
  • Shift Up is a South Korean games developer, which as released three games so far for the global markets.
  • We have looked at the company’s performance in our past notes. In this note, we talk about valuations.

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May 29
0

Daily Brief United States: Abeona Therapeutics , Edesa Biotech , Essa Pharma , Guess? Inc, NeuroBo Pharmaceuticals , NOW Inc, Royce Micro-Cap Trust and more

By | Daily Briefs, United States

In today’s briefing:

  • ABEO: BLA Resubmission in 2H24
  • EDSA: Preparing IND for Phase 2 Trial of EB06 in Vitiligo
  • EPIX: Updated Data from Phase 1 Trial of Masofaniten and Enzalutamide Expected in 2H24
  • GES: 1Q Preview: Building for the Future: Reiterate Buy, $37 PT
  • NRBO: Preclinical Data on DA-1241 with Semaglutide to be Presented at EASL Congress 2024
  • DNOW, Inc. – FY24 Free Cash Flow Outlook Lifted
  • Royce Microcap Trust (RMT) – Tuesday, Feb 27, 2024

ABEO: BLA Resubmission in 2H24

By Zacks Small Cap Research

  • On May 15, 2024, Abeona Therapeutics, Inc. (ABEO) announced financial results for the first quarter of 2024 and provided a business update.
  • The company is planning to resubmit the Biologics License Application (BLA) for pz-cel for the treatment of patients with recessive dystrophic epidermolysis bullosa (RDEB) in the second half of 2024 following the receipt of a Complete Response Letter (CRL) in April 2024.
  • The CRL did not identify any deficiencies related to the clinical efficacy or clinical safety data but did request additional CMC information.

EDSA: Preparing IND for Phase 2 Trial of EB06 in Vitiligo

By Zacks Small Cap Research

  • On May 10, 2024, Edesa Biotech, Inc. (EDSA) announced financial results for the second quarter of fiscal year 2024 that ended March 31, 2024 and provided a business update.
  • Edesa is planning to seek regulatory approval for a Phase 2 trial of its anti-CXCL10 mAb in patients with moderate-to-severe nonsegmental vitiligo.
  • For EB05, the company has expanded site selection activities for the Phase 3 study in acute respiratory distress syndrome (ARDS) caused by COVID-19 and has begun transitioning the day-to-day management of the trial to a new clinical research organization (CRO).

EPIX: Updated Data from Phase 1 Trial of Masofaniten and Enzalutamide Expected in 2H24

By Zacks Small Cap Research

  • On May 14, 2024, ESSA Pharma Inc. (EPIX) announced financial results for the second quarter of fiscal year 2024 that ended March 31, 2024 and provided a business update.
  • ESSA is currently studying its lead compound, masofaniten (EPI-7386), in two clinical trials: EPI-7386-CS-001 and EPI-7386-CS-010.
  • The -001 trial consists of Part A monotherapy treatment and Part B combination therapy of masofaniten plus abiraterone acetate/prednisone (Cohort 1 mHSPC or mCRPC) or with apalutamide following 12 weeks of monotherapy therapy (Cohort 2 nmCRPC).

GES: 1Q Preview: Building for the Future: Reiterate Buy, $37 PT

By Small Cap Consumer Research

  • We are reiterating our Buy rating, $37 price target and projections for Guess?
  • with the company announcing 1QFY25 (April) results after the close on Thursday.
  • We believe 1Q, which included material upgrades in the domestic retail store base, the acquisition of contemporary leader rag & bone, continued European expansion and what we believe were cautious buys from the domestic wholesale segment, will set the stage for a strong back-half and FY26, but will result, beyond further share repurchases, in limited top and bottom line upside for 1Q.

NRBO: Preclinical Data on DA-1241 with Semaglutide to be Presented at EASL Congress 2024

By Zacks Small Cap Research

  • On May 22, 2024, NeuroBo Pharmaceuticals, Inc. (NRBO) announced that preclinical data of DA-1241 in combination with semaglutide in mouse models of metabolic dysfunction-associated steatohepatitis (MASH) will be presented at the EASL Congress 2024 on Thursday, June 6, 2024.
  • Two abstracts will be presented: one using the GAN diet-induced obese and biopsy-confirmed mouse model of MASH and one using the CCl4 induced liver fibrosis model.
  • The company shared some of the results that showed an additive effect on different parameters of liver health in both models, with the posters being available following the presentations.

DNOW, Inc. – FY24 Free Cash Flow Outlook Lifted

By Water Tower Research

  • The 1Q24 Whitco Supply acquisition diversified DNOW’s customer base and added new revenue opportunities in the midstream markets.
  • Management now expects FY24 revenue to increase in the mid- to high single digits range from FY23 and for adjusted EBITDA margin to be in line with FY23.
  • Management lifted its FY24 free cash flow outlook to ~$200 million from ~$150 million.

Royce Microcap Trust (RMT) – Tuesday, Feb 27, 2024

By Value Investors Club

  • RMT is a closed-end fund focused on micro-cap stocks, offering exposure to a segment not easily accessible through other investments
  • RMT has a notable performance track record and is currently trading at a discount of about 12%
  • RMT is the only closed-end fund solely dedicated to micro-cap stocks, providing a unique investment opportunity for those seeking exposure to this niche market segment

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

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May 29
0

Daily Brief China: Akeso Biopharma Inc, Jiangxi Rimag Group, Sichuan Kelun-Biotech Biopharm, China Vanke and more

By | China, Daily Briefs

In today’s briefing:

  • Is Akeso’s Sell-Off a Long Waited Opportunity or a Long Overdue Correction?
  • Pre-IPO Jiangxi Rimag Group (PHIP Updates) – Some Points Worth the Attention
  • Sichuan Kelun-Biotech Biopharm (6990.HK) – Current High Valuation Is Not Secure
  • Morning Views Asia: China Vanke

Is Akeso’s Sell-Off a Long Waited Opportunity or a Long Overdue Correction?

By Eric Wen

  • Disputable Phase III result of Akeso’s (9926 HK) flagship pipeline Ivonescimab (AK112) caused Akeso’s share price to drop 28% in three days, reaching the bottom of a year-long trading range;
  • The fundamental difference of opinions is around Ivonescimab’s global prospects against (1) Merck’s Keytruda, (2) J&J’s Rybrevant, (3) Kelun’s SKB264 and domestic prospect against (4) Innovent’s IBI305;
  • Some answers are clear while others are now. What can provide answers are (1) SKB264‘s Phase III data, and to a lesser degree (2) AK112’s head-to-head trial against Keytruda.

Pre-IPO Jiangxi Rimag Group (PHIP Updates) – Some Points Worth the Attention

By Xinyao (Criss) Wang

  • Considering the dominant position of medical imaging centers in public hospitals and challenges from other players, future development space of Rimag would be squeezed,and even will soon encounter growth bottlenecks.
  • Although Rimag turned losses into profits, we still have doubts about its future profitability due to increasing costs and potential price decline.This business may fail to bring investors decent profits.
  • Rimag’s post-investment valuation after last round financing isn’t cheap.Given the uncertainty of future revenue growth prospects and the real market space, P/S of below 3 is a more comfortable range.

Sichuan Kelun-Biotech Biopharm (6990.HK) – Current High Valuation Is Not Secure

By Xinyao (Criss) Wang

  • The imagination space and good stories for Sichuan Kelun-Biotech Biopharm (6990 HK) at this stage mainly come from SKB264. The market has higher expectations for SKB264’s clinical data on NSCLC/TNBC. 
  • The better the clinical results of SKB264 +PD1/L1, the greater the negative impact on AK112’s future expectations/market space in NSCLC. ADC +PD-1 seems more “convincing” than the logic of BsAb.
  • This July, restricted shares of major shareholders will be lifted, which may lead to big share price fluctuation if they reduce their shareholdings. Investors need not rush to be long.

Morning Views Asia: China Vanke

By Leonard Law, CFA

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

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May 29
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Daily Brief India: PNB Housing Finance Ltd, Indian Energy Exchange Ltd, Virtuoso Optoelectronics and more

By | Daily Briefs, India

In today’s briefing:

  • PNB Housing: Block Deal Trade Special Situations and Tactical Trade Strategy
  • Indian Energy Exchange: Do You Want to Earn a Royalty on India’s Economic Growth?
  • Virtuoso Optoelectronics Ltd- Forensic Analysis

PNB Housing: Block Deal Trade Special Situations and Tactical Trade Strategy

By Nimish Maheshwari

  • Impending block deals which generally create supply over-hang on the stock leads to a negative impact on the stock. 
  • These block deals generally include selling promoters and big funds at a price discount to its current market price. 
  • Historically, such events suggest once the block deal is done; stock reacts positively creating a Special Situation Opportunity

Indian Energy Exchange: Do You Want to Earn a Royalty on India’s Economic Growth?

By Contrarian Cashflows

  • As one of the fastest-growing economies globally, India is projected to become the third-largest economy, trailing only China and the US, by 2027.
  • Amid macroeconomic challenges worldwide, investors are eager to tap into India’s robust economic growth.
  • However, economic growth does not always correlate with equity market growth, as seen in Spain and Italy during the 1980s and 1990s, and more recently in China.

Virtuoso Optoelectronics Ltd- Forensic Analysis

By Nitin Mangal

  • Virtuoso Optoelectronics (VOEPL IN)  is a contract manufacturer company engaged into production of ACs, Lightings and other equipments. The company is renowned for supplying ACs to Voltas.
  • The company has grown sharply over the last five years and has been engaging in constant capex. However, it does struggle in converting its earnings to cash.
  • Among the forensic checks, it nets off receivables and payables/advances, the exact nature of these line items cannot be commented upon. VOEPL also faces high cost of borrowings

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