Smartkarma Daily Briefs

Vishal Mega Mart (1620871D IN) is looking to list on the exchanges by selling INR 80bn (US$943m) of stock at a valuation of INR 352bn (US$4.15bn).
Anchor allocations were completed on 10 December, the IPO opens today, and the stock is expected to start trading on 18 December. Grey market premium is around 25%.
The stock will not get Fast Entry to global indices. Inclusion at regular rebalances should take place in May and June 2025.

EAAA India Alternatives Limited Pre-IPO Tearsheet

By Rosita Fernandes

EAAA India Alternatives Ltd (1619210D IN) (EAAA) is planning to raise about US$177m through its upcoming India IPO. The lead bookrunners for the deal are Axis Capital, Jefferies, Motilal Oswal, Nuvama.
EAAA is a fund management house with a diversified, multi-strategy platform in large, under-tapped, and fast-growing alternative asset classes, focusing on providing income and yield solutions to its clients.
As per CARE report, EAAA is one of the leading alternatives platforms in India, in terms of assets under management (AUM) of INR572.62bn (US$6.7bn) as of Sept 24.

The Beat Ideas: Popular Vehicles & Services, Cheapest Among Dealership Business

Popular Vehicles and Services (PVSL IN) are available at a 50% discount since IPO and available at 25%
PVSL plans to enter two new states by June 2025 and open multiple new facilities, including a NEXA Studio and service centers in Maharashtra and Kerala.
PVSL’s focus on geographic expansion, high-margin segments, and inventory normalization enhances its growth potential, making it a compelling value play with room for significant re-rating in the near future.

The Beat Ideas: Innova Captab Ltd, Jammu Capex Kicker, Margin Expansion

Innova Captab (1605221D IN)’s New Jammu facility to be commercialized by Q3 FY25, expanding capacity and product range.
Strong order pipeline, diversified segments (CDMO, branded generics), and high-margin segments to drive profitability.
Aiming for 25-30% revenue CAGR and 4-5% margin expansion in upcoming years.

SAI Life Sciences IPO- Growing and Profitable Business; Aggressive Pricing Limits Upside Potential

By Tina Banerjee

The IPO of SAI Life Sciences, a contract research, development, and manufacturing organization, is scheduled to open on December 11. The IPO consists of fresh issue as well as OFS.
Out of the fresh issue of proceeds, the company intends to use INR7.2B for repayment/prepayment of outstanding borrowings. As of September 30, 2024, total outstanding borrowing stands at INR7.6B.
We have high conviction on the growth prospect of SAI Life Sciences. Considering FY25 annualized post-IPO EPS of INR2.69, the company seeks a P/E valuation of 186.9–203.8x.

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Dec 11

Daily Brief Japan: Topcon Corp, Japan Eyewear Holdings , Nikkei 225, Poletowin Pitcrew Holdings, i-mobile Co Ltd, Torex Semiconductor and more

By Smartkarma Daily Briefs | Daily Briefs, Japan

In today’s briefing:

Thinking About Topcon (7732) And the New METI-Enabled Bad Cop-Good Cop Routine
TOPIX Inclusions: Who Is Ready (Dec 2024)
EQD | The Nikkei’s Wavering Trend: LONG Investors Should Brace For A Pullback.
Poletowin Pitcrew Holdings (3657 JP): Q3 FY01/25 flash update
i-mobile Co Ltd (6535 JP): Q1 FY07/25 flash update
Torex Semiconductor (6616 JP) – Q2 Follow-Up

Thinking About Topcon (7732) And the New METI-Enabled Bad Cop-Good Cop Routine

By Travis Lundy

A Bloomberg article today said Topcon Corp (7732 JP) is weighing takeover bids received from KKR and EQT. ValueAct has been pressuring the company for 18mos (5+% in May23)
ValueAct has apparently been pushing the company to divest assets and concentrate on core ops, or go private (and have someone else do it).
This is further evidence of the METI-enabled “Bad Cop-Good Cop Routine” which could expand M&A and governance activity dramatically.

TOPIX Inclusions: Who Is Ready (Dec 2024)

By Janaghan Jeyakumar, CFA

Quiddity’s “Who is Ready” series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
Reently-Listed Tokyo Metro (9023 JP), Rigaku Holdings (268A JP), and Intermestic (262A JP) were added to the TOPIX index at the end of November 2024.
Our long-term pre-event candidate Japan Eyewear Holdings (5889 JP) has applied for a Section Transfer to the Prime Market which means there could be TOPIX Inclusion in the near future.

EQD | The Nikkei’s Wavering Trend: LONG Investors Should Brace For A Pullback.

By Nico Rosti

The Nikkei 225 Index continues its going nowhere trend: there is a pattern however in what it does and it’s quite repetitive as of lately.
While we don’t attribute predictive value to chart patterns, we do know that a flat trend sooner or later breaks out.
Our models see limited upside for the current range-bound mini rally (2 weeks in the making). Next we will have a pullback, and it could happen already after this week.

Poletowin Pitcrew Holdings (3657 JP): Q3 FY01/25 flash update

By Shared Research

Revenue grew 10.8% YoY to JPY37.3bn, driven by Overseas Solutions order growth and yen depreciation impact.
Operating profit decreased 9.7% YoY to JPY634mn due to business liquidation expenses and additional game co-development costs.
Revenue from animation production increased YoY, but Media Contents faced a loss due to joint game development costs.

i-mobile Co Ltd (6535 JP): Q1 FY07/25 flash update

By Shared Research

In Q1 FY07/25, the company reported revenue of JPY4.4bn, operating profit of JPY1.1bn, and net income of JPY720mn.
Consumer Service business revenue was JPY3.8bn, with a segment profit of JPY1.1bn, and promotion costs of JPY2.2bn.
Online Advertising business revenue was JPY644mn, segment profit was JPY34mn, and promotion costs were JPY114mn.

Torex Semiconductor (6616 JP) – Q2 Follow-Up

By Sessa Investment Research

TOREX SEMICONDUCTOR announced 1H FY25/3 consolidated financial results at 16:00 on Thursday 11/14, and it held a results briefing on Tuesday 11/19 at 16:00.
Headline numbers were consolidated net sales -5.5% YoY, operating profit +277.2% YoY, and profit attributable to owners of parent turning into the black.
However, in a pattern similar to the three months for Q2-only last term, profits dropped into losses, from an operating loss of JPY 133 million for FY24/3 Q2 (OPM -1.9%) → an operating loss of JPY 28 million for FY25/3 Q2 (OPM -0.4%), partly reflecting the high electricity rates for Phenitec, citing the prolonged adjustment of distribution inventories due to a slowdown in demand for industrial equipment as well as general consumer electronics, and a pause in the recovery of the China market.

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Dec 11

Daily Brief China: CPMC Holdings, Fosun Tourism, Prosus NV, Tencent, Geely Auto, Beijing Capital International Airport (BCIA), Tasly Pharmaceutical Group, TAL Education, Viomi Technology Co Ltd and more

By Smartkarma Daily Briefs | China, Daily Briefs

In today’s briefing:

CPMC (906 HK): Why This Is Still A Buy
Fosun Tourism (1992 HK): Scheme Buyback at HK$7.80 (95% Premium)
Fosun Tourism (1992 HK): Fosun Int’l’s Indirect Takeover
StubWorld: Business As Usual As Prosus Sells, & Tencent Buys Back
Asian Equities: Twenty Inexpensive Consistent Compounders
Geely (175 HK): Turning from PHEV to BEV
China Pair Trade: Long BCIA (694 HK), Short Air China (753 HK)
CR Sanjiu (000999CH) To Acquire Tasly (600535CH) Update- The Deal Is Proceeding in an Orderly Manner
TAL Education: Here Are The 6 Most Crucial Factors Impacting Its Performance In 2025 & Beyond! – Major Drivers
VIOT: Initiating coverage of a leading water purification company in China

CPMC (906 HK): Why This Is Still A Buy

Back on the 29th August 2024, CPMC Holdings (906 HK) announced ORG Technology Co., Ltd. A (002701 CH) had secured SAMR approval. Mofcom and NDRC approvals subsequently followed.
The pre-condition long stop date is the 6th January. SAFE is the outstanding pre-condition. Separately, Zhang Wei’s 22.01% irrevocable expired on the 5th December – with no HKEx announcement.
Quite a lot to pack in with 16 business days to the pre-con long stop. Sounding out people involved with the transaction would be ideal. So that’s what I did.

Fosun Tourism (1992 HK): Scheme Buyback at HK$7.80 (95% Premium)

By Arun George

Fosun Tourism (1992 HK) disclosed a share buyback of the company through a scheme of arrangement at HK$7.80, a 95.0% premium to the last close price of HK$4.00.
The key condition is the scheme be approved by at least 75% of disinterested shareholders (rejection by <10% of disinterested shareholders).
The timing is arguably opportunistic, as the shares are down 31% YTD. Nevertheless, the high takeover premium and a potential scrip option lower the vote risk.

Fosun Tourism (1992 HK): Fosun Int’l’s Indirect Takeover

When Fosun Tourism (1992 HK), a leisure-focused integrated tourism group, was suspended pursuant to the Takeovers Code, the obvious Offeror, by way of a Scheme, was Fosun International (656 HK)
Not quite. We do have a Scheme, but it’s being enacted by way of a buyback. Fosun Int’l still abstains from voting, but will control 100% if the Scheme completes.
The Cancellation Price is $7.80/share (not declared final), a punchy 95% premium to undisturbed. I previously speculated a 100% premium was not out of the question. Clean deal.

StubWorld: Business As Usual As Prosus Sells, & Tencent Buys Back

For the first time in 2024, Prosus NV (PRX NA) lodges a substantial shareholder notice, as its stake in Tencent (700 HK) dips below 24%.
Preceding my comments on Prosus, Tencent and Naspers (NPN SJ), are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

Asian Equities: Twenty Inexpensive Consistent Compounders

By Manishi Raychaudhuri

Consistent compounders, stocks with steady earnings growth and excess returns over a long period of time, are difficult to find. It’s even more difficult to find reasonably valued compounders.
From the universe of large Asian companies, we screen those with steady profit growth (>10%) and excess returns in each of last 10 years and over next three forecast years.
Our list of 20 inexpensive compounders comprises 10 from onshore China, 5 from HK, 3 from India and 1 each from Japan and the Philippines.

Geely (175 HK): Turning from PHEV to BEV

By Ming Lu

Geely’s sales volume grew by 27% YoY in November 2024.
BEV delivery growth rate accelerated to 173% YoY in November from 26% YoY in July.
Geely’s forward financial ratios are lower than its major competitors.

China Pair Trade: Long BCIA (694 HK), Short Air China (753 HK)

By Osbert Tang, CFA

Long Beijing Capital International Airport (BCIA) (694 HK), and short Air China Ltd (H) (753 HK) strategy should bring in good sector-neutral returns over the next 12 months.
BCIA will return to profit next year, fuelling the rebound of its share price. Air China, however, may face uncertainties related to stronger USD and higher-than-expected US interest rates.
Higher duty-free sales for BCIA should propel earnings outlook. BCIA’s P/B is well below the 5-year average, while Air China has already returned to the historical average level.

CR Sanjiu (000999CH) To Acquire Tasly (600535CH) Update- The Deal Is Proceeding in an Orderly Manner

By Xinyao (Criss) Wang

Based on the new announcement released by CR Sanjiu, due diligence, auditing, evaluation, valuation and verification of material assets reorganization are in progress. Approvals by the SASAC/SAMR haven’t been obtained.
Sanjiu is now facing performance headwinds due to VBP. So, Sanjiu needs new/stable performance increments to alleviate future performance pressure, and completing the acquisition of Tasly becomes even more urgent.
China Resources excels in M&As and has strong internal business integration capabilities.We’re optimistic about the future synergies after the merger. Valuation for Tasly is expected to reach P/E of 30.

TAL Education: Here Are The 6 Most Crucial Factors Impacting Its Performance In 2025 & Beyond! – Major Drivers

TAL Education Group’s second quarter fiscal year 2025 results provide an insightful look into the company’s current trajectory, presenting both promising developments and areas to watch cautiously.
On the positive side, TAL Education’s robust year-over-year growth in net revenues stands out, with reported figures of USD 619.4 million, marking an impressive increase of over 50%.
This growth is largely backed by the company’s strategic expansion in its learning services, particularly the enrichment learning programs like Peiyou small classes.

VIOT: Initiating coverage of a leading water purification company in China

By Zacks Small Cap Research

Viomi has undergone a radical transformation to shed unprofitable business lines and focus on the home water systems market which is poised to experience steady growth in China in coming years.
The company is hoping to expand into fairly mature international markets including the US with new home water systems that offer advantages over current offerings.
The company’s investment in a largely automated manufacturing facility should help the company achieve above average margins in the Chinese market as utilization rates improve.

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Dec 11

Most Read: Topcon Corp, Korea Zinc, Sanrio, CPMC Holdings, Crompton Greaves, Fosun Tourism, Japan Eyewear Holdings , Shanghai Fosun Pharmaceutical (Group), Talabat Holding and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

Thinking About Topcon (7732) And the New METI-Enabled Bad Cop-Good Cop Routine
A Proxy Fight for Korea Zinc in January 2025
Sanrio (8136 JP) Placement: Price Likely Determined Today; What Next?
CPMC (906 HK): Why This Is Still A Buy
AMFI Stock Reclassification Preview (Dec 2024): Recent Large IPOs Lead to Big Downward Shift
Fosun Tourism (1992 HK): Scheme Buyback at HK$7.80 (95% Premium)
TOPIX Inclusions: Who Is Ready (Dec 2024)
Shanghai Fosun Pharmaceutical (2196.HK) – Performance Pain Points and Henlius’ Privatization Outlook
Fosun Tourism (1992 HK): Fosun Int’l’s Indirect Takeover
Talabat Holding (TALABAT UH): IPO Fast-Entry to Be Delivered with Caution

Thinking About Topcon (7732) And the New METI-Enabled Bad Cop-Good Cop Routine

By Travis Lundy

A Bloomberg article today said Topcon Corp (7732 JP) is weighing takeover bids received from KKR and EQT. ValueAct has been pressuring the company for 18mos (5+% in May23)
ValueAct has apparently been pushing the company to divest assets and concentrate on core ops, or go private (and have someone else do it).
This is further evidence of the METI-enabled “Bad Cop-Good Cop Routine” which could expand M&A and governance activity dramatically.

A Proxy Fight for Korea Zinc in January 2025

By Douglas Kim

There is likely to be a proxy fight for the control of Korea Zinc (010130 KS) between MBK/Young Poong alliance and Chairman Choi/Bain Capital alliance in January 2025.
Young Poong Precision announced that it will acquire 39,254 shares of Korea Zinc. Post this purchase, Young Poong Precision will own a 2.11% stake in Korea Zinc (up from 1.92%).
FSS Governor Lee Bok-Hyun mentioned that the FSS is seriously reviewing a potential accounting issue related to environmental pollution at Young Poong.

Sanrio (8136 JP) Placement: Price Likely Determined Today; What Next?

The Sanrio (8136 JP) placement is likely to be priced today. With the stock 8.8% lower from undisturbed, expect a small discount to today’s close.
The stock has traded as expected over the last 9 trading days – a sharp drop followed by a strong upward move and then profit taking.
We expect there will be strong interest in the placement and oversubscription could lead to upside from here. Shorts have increased and will look to cover into the placement.

CPMC (906 HK): Why This Is Still A Buy

Back on the 29th August 2024, CPMC Holdings (906 HK) announced ORG Technology Co., Ltd. A (002701 CH) had secured SAMR approval. Mofcom and NDRC approvals subsequently followed.
The pre-condition long stop date is the 6th January. SAFE is the outstanding pre-condition. Separately, Zhang Wei’s 22.01% irrevocable expired on the 5th December – with no HKEx announcement.
Quite a lot to pack in with 16 business days to the pre-con long stop. Sounding out people involved with the transaction would be ideal. So that’s what I did.

AMFI Stock Reclassification Preview (Dec 2024): Recent Large IPOs Lead to Big Downward Shift

We see 7 stocks moving from MidCap to LargeCap, 11 stocks moving from LargeCap to MidCap, 4 stocks from SmallCap to MidCap, and 11 stocks from MidCap to SmallCap.
From the new listings, 4 stocks are expected to be added to Large Cap, 3 stocks to Mid Cap, and multiple stocks to Small Cap.
There are multiple stocks among the AMFI changes that will be changes for the NSE Nifty Next 50 Index (NIFTYJR INDEX) and/or Nifty Midcap 150 Index in March.

Fosun Tourism (1992 HK): Scheme Buyback at HK$7.80 (95% Premium)

By Arun George

Fosun Tourism (1992 HK) disclosed a share buyback of the company through a scheme of arrangement at HK$7.80, a 95.0% premium to the last close price of HK$4.00.
The key condition is the scheme be approved by at least 75% of disinterested shareholders (rejection by <10% of disinterested shareholders).
The timing is arguably opportunistic, as the shares are down 31% YTD. Nevertheless, the high takeover premium and a potential scrip option lower the vote risk.

TOPIX Inclusions: Who Is Ready (Dec 2024)

By Janaghan Jeyakumar, CFA

Quiddity’s “Who is Ready” series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
Reently-Listed Tokyo Metro (9023 JP), Rigaku Holdings (268A JP), and Intermestic (262A JP) were added to the TOPIX index at the end of November 2024.
Our long-term pre-event candidate Japan Eyewear Holdings (5889 JP) has applied for a Section Transfer to the Prime Market which means there could be TOPIX Inclusion in the near future.

Shanghai Fosun Pharmaceutical (2196.HK) – Performance Pain Points and Henlius’ Privatization Outlook

By Xinyao (Criss) Wang

Fosun Pharma is just “a platform” and its performance mainly relies on the contributions of subsidiaries. However, such investment-driven business model has led to the current performance difficulties.
Although the motivation/underlying logic for Fosun Pharma to privatize Henlius are solid, we don’t know how this privatization ranks in terms of strategic significance of capital operations within Fosun’s system.
If, for example, Fosun Pharma finds more important acquisitions/capital expenditures, the priority of Henlius’ privatization could fall. So, we think if it takes too long, there may be more uncertainties.

Fosun Tourism (1992 HK): Fosun Int’l’s Indirect Takeover

When Fosun Tourism (1992 HK), a leisure-focused integrated tourism group, was suspended pursuant to the Takeovers Code, the obvious Offeror, by way of a Scheme, was Fosun International (656 HK)
Not quite. We do have a Scheme, but it’s being enacted by way of a buyback. Fosun Int’l still abstains from voting, but will control 100% if the Scheme completes.
The Cancellation Price is $7.80/share (not declared final), a punchy 95% premium to undisturbed. I previously speculated a 100% premium was not out of the question. Clean deal.

Talabat Holding (TALABAT UH): IPO Fast-Entry to Be Delivered with Caution

By Dimitris Ioannidis

Talabat Holding (TALABAT UH) is expected to be listed on 10 December 2024, on the Dubai Financial Market at a valuation of ~$10.3bn.
Fast-Entry is forecasted to be announced for the one Global Index at the close of 10 December and traded on 20 December in conjunction with the review.
Uncertainty regarding the Fast-Entry arises due to lack of shareholder information in the Institutional Offering which can result in the float market cap being determined as invalid.

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Dec 11

Daily Brief Industrials: Beijing Capital International Airport (BCIA), Cummins Inc, Inpost, Waste Management, TAL Education, ATS and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

China Pair Trade: Long BCIA (694 HK), Short Air China (753 HK)
Cummins Inc.: An Analysis Of Its Natural Gas Engine Market Penetration & Other Major Drivers
Asheville Capital Management’s Jake Barfield on InPost’s scaling moat
Waste Management: Operational Efficiency & Cost Optimization As A Strategic Growth Enabler! – Major Drivers
TAL Education: Here Are The 6 Most Crucial Factors Impacting Its Performance In 2025 & Beyond! – Major Drivers
Ats Corp (ATS.) – Monday, Sep 9, 2024

China Pair Trade: Long BCIA (694 HK), Short Air China (753 HK)

By Osbert Tang, CFA

Long Beijing Capital International Airport (BCIA) (694 HK), and short Air China Ltd (H) (753 HK) strategy should bring in good sector-neutral returns over the next 12 months.
BCIA will return to profit next year, fuelling the rebound of its share price. Air China, however, may face uncertainties related to stronger USD and higher-than-expected US interest rates.
Higher duty-free sales for BCIA should propel earnings outlook. BCIA’s P/B is well below the 5-year average, while Air China has already returned to the historical average level.

Cummins Inc.: An Analysis Of Its Natural Gas Engine Market Penetration & Other Major Drivers

Cummins Inc. presented its third-quarter 2024 results, highlighting several achievements and ongoing challenges.
The company reported a stable sales figure of $8.5 billion, reflecting a flat performance compared to the same period in 2023 due to various offsetting factors.
The North American market experienced a slight 1% decline, with softer heavy-duty truck sales balanced by strong demand in medium-duty trucks and power generation sectors.

Asheville Capital Management’s Jake Barfield on InPost’s scaling moat

By Yet Another Value Podcast

Inpost is a dominant force in the Polish market, with a high market share and strong financial performance.
The company’s expansion into other European markets, while ambitious, may face challenges in achieving similar success.
The risk of regulatory changes and competition could impact Impost’s future growth and profitability.

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

Waste Management: Operational Efficiency & Cost Optimization As A Strategic Growth Enabler! – Major Drivers

Waste Management, Inc. (WM) reported robust operational and financial performance in its third quarter of 2024, driven by strategic initiatives in cost optimization, disciplined pricing, and ongoing sustainability investments.
The company’s operating EBITDA demonstrated double-digit growth, with a record margin of 30.5%, marking a year over-year increase of 90 basis points, positioning it well to meet its projected full-year target of approximately $6.5 billion in operating EBITDA.
Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

TAL Education: Here Are The 6 Most Crucial Factors Impacting Its Performance In 2025 & Beyond! – Major Drivers

TAL Education Group’s second quarter fiscal year 2025 results provide an insightful look into the company’s current trajectory, presenting both promising developments and areas to watch cautiously.
On the positive side, TAL Education’s robust year-over-year growth in net revenues stands out, with reported figures of USD 619.4 million, marking an impressive increase of over 50%.
This growth is largely backed by the company’s strategic expansion in its learning services, particularly the enrichment learning programs like Peiyou small classes.

Ats Corp (ATS.) – Monday, Sep 9, 2024

ATS is a global automation solutions provider that has adopted principles from DBS, including a customer-first approach and continuous improvement.
Under CEO Andrew Hider’s leadership, ATS saw its stock price soar from $10 to $48 before settling around $26, positioning the company for long-term growth in the automation industry.
ATS’s implementation of a DBS-like system has led to improvements in key performance indicators, with the company serving as a leading System Integrator with a global footprint in various industries.

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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Dec 11

Daily Brief Industrials: Beijing Capital International Airport (BCIA), Cummins Inc, Inpost, Waste Management, TAL Education, ATS and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

China Pair Trade: Long BCIA (694 HK), Short Air China (753 HK)
Cummins Inc.: An Analysis Of Its Natural Gas Engine Market Penetration & Other Major Drivers
Asheville Capital Management’s Jake Barfield on InPost’s scaling moat
Waste Management: Operational Efficiency & Cost Optimization As A Strategic Growth Enabler! – Major Drivers
TAL Education: Here Are The 6 Most Crucial Factors Impacting Its Performance In 2025 & Beyond! – Major Drivers
Ats Corp (ATS.) – Monday, Sep 9, 2024

China Pair Trade: Long BCIA (694 HK), Short Air China (753 HK)

By Osbert Tang, CFA

Long Beijing Capital International Airport (BCIA) (694 HK), and short Air China Ltd (H) (753 HK) strategy should bring in good sector-neutral returns over the next 12 months.
BCIA will return to profit next year, fuelling the rebound of its share price. Air China, however, may face uncertainties related to stronger USD and higher-than-expected US interest rates.
Higher duty-free sales for BCIA should propel earnings outlook. BCIA’s P/B is well below the 5-year average, while Air China has already returned to the historical average level.

Cummins Inc.: An Analysis Of Its Natural Gas Engine Market Penetration & Other Major Drivers

Cummins Inc. presented its third-quarter 2024 results, highlighting several achievements and ongoing challenges.
The company reported a stable sales figure of $8.5 billion, reflecting a flat performance compared to the same period in 2023 due to various offsetting factors.
The North American market experienced a slight 1% decline, with softer heavy-duty truck sales balanced by strong demand in medium-duty trucks and power generation sectors.

Asheville Capital Management’s Jake Barfield on InPost’s scaling moat

By Yet Another Value Podcast

Inpost is a dominant force in the Polish market, with a high market share and strong financial performance.
The company’s expansion into other European markets, while ambitious, may face challenges in achieving similar success.
The risk of regulatory changes and competition could impact Impost’s future growth and profitability.

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

Waste Management: Operational Efficiency & Cost Optimization As A Strategic Growth Enabler! – Major Drivers

Waste Management, Inc. (WM) reported robust operational and financial performance in its third quarter of 2024, driven by strategic initiatives in cost optimization, disciplined pricing, and ongoing sustainability investments.
The company’s operating EBITDA demonstrated double-digit growth, with a record margin of 30.5%, marking a year over-year increase of 90 basis points, positioning it well to meet its projected full-year target of approximately $6.5 billion in operating EBITDA.
Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

TAL Education: Here Are The 6 Most Crucial Factors Impacting Its Performance In 2025 & Beyond! – Major Drivers

TAL Education Group’s second quarter fiscal year 2025 results provide an insightful look into the company’s current trajectory, presenting both promising developments and areas to watch cautiously.
On the positive side, TAL Education’s robust year-over-year growth in net revenues stands out, with reported figures of USD 619.4 million, marking an impressive increase of over 50%.
This growth is largely backed by the company’s strategic expansion in its learning services, particularly the enrichment learning programs like Peiyou small classes.

Ats Corp (ATS.) – Monday, Sep 9, 2024

ATS is a global automation solutions provider that has adopted principles from DBS, including a customer-first approach and continuous improvement.
Under CEO Andrew Hider’s leadership, ATS saw its stock price soar from $10 to $48 before settling around $26, positioning the company for long-term growth in the automation industry.
ATS’s implementation of a DBS-like system has led to improvements in key performance indicators, with the company serving as a leading System Integrator with a global footprint in various industries.

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

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✓ Company Data and News
✓ Events & Webinars

Dec 11

Daily Brief Financials: Nikkei 225, EAAA India Alternatives Ltd, Bitcoin, S&P 500 INDEX, Intercontinental Exchange, Marsh & Mclennan, Moon River Capital , Goosehead Insurance Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

EQD | The Nikkei’s Wavering Trend: LONG Investors Should Brace For A Pullback.
EAAA India Alternatives Limited Pre-IPO Tearsheet
Bitcoin, Price / Vol Spirals and MSTR
Crypto Crisp: Trump Is Assembling a Crypto Team
Not so Outrageous Commodity Predictions
Intercontinental Exchange Inc.: Globalization of Energy Markets Driving & Key Factors Driving Our ‘Outperform’ Rating! – Financial Forecasts
Marsh & McLennan Companies: Expanding Middle Market Reach For A Competitive Edge! – Major Drivers
MOO: 2024 Review & 2025 Outlook
Goosehead Insurance (GSHD) – Monday, Sep 9, 2024

EQD | The Nikkei’s Wavering Trend: LONG Investors Should Brace For A Pullback.

By Nico Rosti

The Nikkei 225 Index continues its going nowhere trend: there is a pattern however in what it does and it’s quite repetitive as of lately.
While we don’t attribute predictive value to chart patterns, we do know that a flat trend sooner or later breaks out.
Our models see limited upside for the current range-bound mini rally (2 weeks in the making). Next we will have a pullback, and it could happen already after this week.

EAAA India Alternatives Limited Pre-IPO Tearsheet

By Rosita Fernandes

EAAA India Alternatives Ltd (1619210D IN) (EAAA) is planning to raise about US$177m through its upcoming India IPO. The lead bookrunners for the deal are Axis Capital, Jefferies, Motilal Oswal, Nuvama.
EAAA is a fund management house with a diversified, multi-strategy platform in large, under-tapped, and fast-growing alternative asset classes, focusing on providing income and yield solutions to its clients.
As per CARE report, EAAA is one of the leading alternatives platforms in India, in terms of assets under management (AUM) of INR572.62bn (US$6.7bn) as of Sept 24.

Bitcoin, Price / Vol Spirals and MSTR

By Alpha Exchange

Discussion of ins and outs of option pricing and market risk
Examples of price volume spirals in meltdown and melt up scenarios
Exploration of value and instability in market dynamics

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

Crypto Crisp: Trump Is Assembling a Crypto Team

By Mads Eberhardt

Trump is gradually building a team to “make America great again” in the crypto space—a move that certainly cannot come soon enough.
The most significant news from the past week includes the following highlights.
Trump Names David Sacks as White House AI and Crypto Czar’ at Bloomberg

Not so Outrageous Commodity Predictions

By The Commodity Report

Not so Outrageous Commodity Predictions Saxo Bank published their annual “outrageous predictions” for 2025.
I actually found a few theses that I don’t even find that outrageous in its directionaly.
For example: “The crypto market quadruples to more than USD 10 trillion, the US dollar falls 20% against major currencies and 30% versus gold.

Intercontinental Exchange Inc.: Globalization of Energy Markets Driving & Key Factors Driving Our ‘Outperform’ Rating! – Financial Forecasts

Intercontinental Exchange, Inc. (ICE) reported record results for the third quarter of 2024, underscoring strong performance across its diverse business segments.
The company achieved record net revenues of $2.3 billion, marking an increase boosted by both transaction and recurring revenues.
Notable growth came from its recent acquisition of Black Knight, contributing to a 7% increase in total pro forma revenue compared to the previous year.

Marsh & McLennan Companies: Expanding Middle Market Reach For A Competitive Edge! – Major Drivers

Marsh & McLennan Companies (MMC) delivered a solid financial performance in the third quarter of 2024, continuing its positive growth trajectory.
The company achieved underlying revenue growth of 5%, supported by strong execution in Risk and Insurance Services (RIS) and Consulting.
Adjusted operating income increased by 12%, and the adjusted operating margin expanded by 110 basis points, reflecting effective cost management and operational efficiency.

MOO: 2024 Review & 2025 Outlook

By Atrium Research

What you need to know: • Moon River provided a review of its 2024 milestones as well as an outlook for an exciting 2025.
• 2024 was a busy year for the Company, publishing a PEA on the Davidson Project and acquiring its interest in the Endako Mine.
• MOO is setup for an active 2025 with several major catalysts planned, including an updated mineral resource estimate and an updated PEA.

Goosehead Insurance (GSHD) – Monday, Sep 9, 2024

GSHD is a home and auto insurance broker with a mixed corporate and franchised model
GSHD earns commissions on policy sales through distribution agreements with insurance companies
Recent quarters have shown significant growth slowdown, leading to concerns about sustainability of franchise model due to high franchisee churn rates

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Dec 11

Daily Brief Health Care: Japan Eyewear Holdings , Innova Captab, Blueprint Medicines, Bio-Rad Laboratories A, SAI Life Sciences, Genomma Lab Internacional Sab, Tasly Pharmaceutical Group, CompuGroup Medical SE & Co KgaA, Scilex Holding , Talkspace and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

TOPIX Inclusions: Who Is Ready (Dec 2024)
The Beat Ideas: Innova Captab Ltd, Jammu Capex Kicker, Margin Expansion
Blueprint Medicines: Expanding International Market Footprint For A Potentially Unmatched Revenue Impact? – Major Drivers
Bio-Rad Laboratories: Digital PCR Platform Expansion &3 Critical Factors Driving Our Optimism! – Financial Forecasts
SAI Life Sciences IPO- Growing and Profitable Business; Aggressive Pricing Limits Upside Potential
Actinver Research – Genomma Lab: Reaching Healthier Valuation Levels (Company Update)
CR Sanjiu (000999CH) To Acquire Tasly (600535CH) Update- The Deal Is Proceeding in an Orderly Manner
C V C/CompuGroup Medical: Takeover Decision
SCLX: Deal Brings Huge Potential
Talkspace Inc (TALK) – Monday, Sep 9, 2024

TOPIX Inclusions: Who Is Ready (Dec 2024)

By Janaghan Jeyakumar, CFA

Quiddity’s “Who is Ready” series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
Reently-Listed Tokyo Metro (9023 JP), Rigaku Holdings (268A JP), and Intermestic (262A JP) were added to the TOPIX index at the end of November 2024.
Our long-term pre-event candidate Japan Eyewear Holdings (5889 JP) has applied for a Section Transfer to the Prime Market which means there could be TOPIX Inclusion in the near future.

The Beat Ideas: Innova Captab Ltd, Jammu Capex Kicker, Margin Expansion

Innova Captab (1605221D IN)’s New Jammu facility to be commercialized by Q3 FY25, expanding capacity and product range.
Strong order pipeline, diversified segments (CDMO, branded generics), and high-margin segments to drive profitability.
Aiming for 25-30% revenue CAGR and 4-5% margin expansion in upcoming years.

Blueprint Medicines: Expanding International Market Footprint For A Potentially Unmatched Revenue Impact? – Major Drivers

Blueprint Medicines Corporation, during its third quarter of 2024 financial results presentation, highlighted both promising developments and ongoing challenges.
The company reported robust revenue growth, primarily driven by the performance of AYVAKIT, which achieved $128.2 million in net product revenue, marking a 137% year-over-year increase.
This strong performance led the company to raise its annual revenue guidance to between $475 million and $480 million, positioning AYVAKIT on track for substantial long-term revenue, potentially exceeding $2 billion.

Bio-Rad Laboratories: Digital PCR Platform Expansion &3 Critical Factors Driving Our Optimism! – Financial Forecasts

Bio-Rad Laboratories, Inc. presented a mixed set of results for the third quarter of 2024, reflecting ongoing challenges and some positive developments across its business segments.
The company reported net sales of $650 million, a 2.8% increase from the previous year on a reported basis, attributed largely to its Clinical Diagnostics segment.
On a currency-neutral basis, sales increased by 3.4% year-over-year, driven primarily by a 6.4% increase in the Clinical Diagnostics group led by strong demand for quality control products, especially in the Asia Pacific region.

SAI Life Sciences IPO- Growing and Profitable Business; Aggressive Pricing Limits Upside Potential

By Tina Banerjee

The IPO of SAI Life Sciences, a contract research, development, and manufacturing organization, is scheduled to open on December 11. The IPO consists of fresh issue as well as OFS.
Out of the fresh issue of proceeds, the company intends to use INR7.2B for repayment/prepayment of outstanding borrowings. As of September 30, 2024, total outstanding borrowing stands at INR7.6B.
We have high conviction on the growth prospect of SAI Life Sciences. Considering FY25 annualized post-IPO EPS of INR2.69, the company seeks a P/E valuation of 186.9–203.8x.

Actinver Research – Genomma Lab: Reaching Healthier Valuation Levels (Company Update)

By Actinver

After a stunning YTD performance (up 90.68% as of 12/9/24 vs MEXBOL 9.05% down), we continue to see solid upside ahead.
Market conditions for most of the company’s segments are expected to remain mostly favorable, with FX remaining a neutral-to-positive factor amid its MXN-denominated costs.
From a valuation perspective, the company used to trade at higher levels —even in the double-digit EV/EBITDA range— some years ago.

CR Sanjiu (000999CH) To Acquire Tasly (600535CH) Update- The Deal Is Proceeding in an Orderly Manner

By Xinyao (Criss) Wang

Based on the new announcement released by CR Sanjiu, due diligence, auditing, evaluation, valuation and verification of material assets reorganization are in progress. Approvals by the SASAC/SAMR haven’t been obtained.
Sanjiu is now facing performance headwinds due to VBP. So, Sanjiu needs new/stable performance increments to alleviate future performance pressure, and completing the acquisition of Tasly becomes even more urgent.
China Resources excels in M&As and has strong internal business integration capabilities.We’re optimistic about the future synergies after the merger. Valuation for Tasly is expected to reach P/E of 30.

C V C/CompuGroup Medical: Takeover Decision

By Jesus Rodriguez Aguilar

CVC announced a voluntary public tender offer for CompuGroup Medical at €22 per share, a 33.5% premium, valuing the company at €1.13 billion equity value and 7.8x EV/EBITDA.
The offer highlights CompuGroup’s strong position in healthcare IT, with 75% recurring revenues and growth potential in Ambulatory and Hospital Information Systems supported by digitization trends and AI innovations.
The Gotthardts retain their 50.1%. CompuGroup’s board welcomes the strategic partnership and intends to recommend the offer, with plans to delist after completion in H1 2025. Spread is 1.36%/4.60% (gross/annualised).

SCLX: Deal Brings Huge Potential

By Zacks Small Cap Research

SCLX is filling a much-needed area of the health care sector, that of developing non-opioid pain relief products.
The company already has commercialized products that are proven to improve patients’ lives.
The company announced a deal with a developer of a Phase 2 drug with a large market potential to be the exclusive developer and have the right to commercialize the treatment targeting obesity and Alzheimer’s disease.

Talkspace Inc (TALK) – Monday, Sep 9, 2024

Talkspace offers an asymmetric risk/reward opportunity in the defensive healthcare sector due to increasing demand for mental health care
The company has a strong balance sheet with significant net cash balance, recent profitability, and is expected to grow revenue by 20% annually
With limited downside risk and potential for substantial upside, particularly in their B2B business, Talkspace presents an enticing investment opportunity with minimal direct-to-consumer exposure

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Dec 11

Daily Brief TMT/Internet: Topcon Corp, Talabat Holding, LG CNS, Tencent, Taiwan Semiconductor (TSMC), Intel Corp, Samsung Electronics, Gartner Inc, Qorvo Inc, Poletowin Pitcrew Holdings and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

Thinking About Topcon (7732) And the New METI-Enabled Bad Cop-Good Cop Routine
Talabat Holding (TALABAT UH): IPO Fast-Entry to Be Delivered with Caution
LG CNS IPO Valuation Analysis
Asian Equities: Twenty Inexpensive Consistent Compounders
Semiconductor Sales Reaccelerating, AI Accelerators Accelerating: AMD, AVGO, NVDA, SK Hynix, TSMC
Episode 96: The State of Intel Post Pat G, Product Roadmap focus, Foundries Strategic Value
Tech Supply Chain Tracker (11-Dec-2024): TSMC Nov revenue decline less than expected, annual rev up by 30%.
Gartner Inc.: These Are The 6 Biggest Factors Impacting Its Performance In 2025 & Beyond! – Major Drivers
Qorvo Inc.: Can Its Operational Optimization & Cost Efficiency Give Them A Competitive Edge? – Major Drivers
Poletowin Pitcrew Holdings (3657 JP): Q3 FY01/25 flash update

Thinking About Topcon (7732) And the New METI-Enabled Bad Cop-Good Cop Routine

By Travis Lundy

A Bloomberg article today said Topcon Corp (7732 JP) is weighing takeover bids received from KKR and EQT. ValueAct has been pressuring the company for 18mos (5+% in May23)
ValueAct has apparently been pushing the company to divest assets and concentrate on core ops, or go private (and have someone else do it).
This is further evidence of the METI-enabled “Bad Cop-Good Cop Routine” which could expand M&A and governance activity dramatically.

Talabat Holding (TALABAT UH): IPO Fast-Entry to Be Delivered with Caution

By Dimitris Ioannidis

Talabat Holding (TALABAT UH) is expected to be listed on 10 December 2024, on the Dubai Financial Market at a valuation of ~$10.3bn.
Fast-Entry is forecasted to be announced for the one Global Index at the close of 10 December and traded on 20 December in conjunction with the review.
Uncertainty regarding the Fast-Entry arises due to lack of shareholder information in the Institutional Offering which can result in the float market cap being determined as invalid.

LG CNS IPO Valuation Analysis

By Douglas Kim

According to our valuation analysis, it suggests a base case implied market cap of 7.9 trillion won for LG CNS, representing target price of 81,095 won per share.
Therefore, our base case valuation target price of 81,095 won is 31% higher than the high end of the IPO price range.
We estimate LG CNS to generate sales of 5.99 trillion won (up 6.8% YoY) and net profit of 356.1 billion won (up 7.1% YoY) in 2024.

Asian Equities: Twenty Inexpensive Consistent Compounders

By Manishi Raychaudhuri

Consistent compounders, stocks with steady earnings growth and excess returns over a long period of time, are difficult to find. It’s even more difficult to find reasonably valued compounders.
From the universe of large Asian companies, we screen those with steady profit growth (>10%) and excess returns in each of last 10 years and over next three forecast years.
Our list of 20 inexpensive compounders comprises 10 from onshore China, 5 from HK, 3 from India and 1 each from Japan and the Philippines.

Semiconductor Sales Reaccelerating, AI Accelerators Accelerating: AMD, AVGO, NVDA, SK Hynix, TSMC

By Nicolas Baratte

The Semiconductor industry associations report re-accelerating Semi sales, and increase 2024-25 forecasts. This is due to higher AI / Accelerators, HBM Memory but the rest of the market remains sluggish
TSMC remains on its high growth plateau at 34% YoY, driven by AI and 3nm. UMC remains on a sluggish recovery at 7% YoY.
AMD, Nvidia, SK Hynix, TSMC: stocks are not expensive on PE relative to earnings growth. Non-Consensus: we think AMD and SK Hynix are worth a serious look.

Episode 96: The State of Intel Post Pat G, Product Roadmap focus, Foundries Strategic Value

By The Circuit

The Circuit podcast discusses the uncertainty surrounding Intel’s future leadership and strategic direction
Ben and Jay analyze the board’s role in Intel’s challenges and debate the company’s path forward
The podcast ends on a hopeful note, with Jay expressing optimism about Intel’s 14A technology and the potential for success in the future

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

Tech Supply Chain Tracker (11-Dec-2024): TSMC Nov revenue decline less than expected, annual rev up by 30%.

By Tech Supply Chain Tracker

TSMC’s November revenue decline was better than expected, poised for nearly 30% annual revenue growth.
SK Hynix restructures CIS organization to replicate HBM success model, aiming for improved performance.
TSMC founder sheds light on reasons behind Samsung and Intel’s setbacks, pointing out core issues. YMTC refutes backdoor listing rumors, facing industry scrutiny; while Samsung explores using discrete LPDDR for AI-driven iPhones and China investigates Nvidia amid US-China chip tensions.

Gartner Inc.: These Are The 6 Biggest Factors Impacting Its Performance In 2025 & Beyond! – Major Drivers

Gartner, Inc.’s financial performance in the third quarter of 2024 showed resilience amidst a complex economic landscape.
The company’s contract value grew by 7% year-over-year and revenue figures exceeded expectations, with a total Q3 revenue of $1.5 billion representing a 6% increase on an FX-neutral basis.
Gartner exhibited robust performance across its business segments, leading to raised guidance for revenue, EBITDA, EPS, and free cash flow for the year 2024.

Qorvo Inc.: Can Its Operational Optimization & Cost Efficiency Give Them A Competitive Edge? – Major Drivers

Qorvo, Inc. has reported its financial results for the second quarter of fiscal 2025, revealing a mixed performance across its various business segments.
During the quarter, Qorvo achieved a revenue of $1.047 billion, marking an 18% sequential increase and exceeding their guided midpoint.
This growth was driven by double-digit increases across all three operating segments: Advanced Connectivity and Sensors Group (ACG), High Performance Analog (HPA), and Connectivity Systems (CSG).

Poletowin Pitcrew Holdings (3657 JP): Q3 FY01/25 flash update

By Shared Research

Revenue grew 10.8% YoY to JPY37.3bn, driven by Overseas Solutions order growth and yen depreciation impact.
Operating profit decreased 9.7% YoY to JPY634mn due to business liquidation expenses and additional game co-development costs.
Revenue from animation production increased YoY, but Media Contents faced a loss due to joint game development costs.

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Dec 11

Daily Brief Consumer: Fosun Tourism, Vishal Mega Mart, Prosus NV, Geely Auto, Popular Vehicles and Services, Vivid Seats, Build A Bear Workshop, Savencia SA, Viomi Technology Co Ltd and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Fosun Tourism (1992 HK): Scheme Buyback at HK$7.80 (95% Premium)
Fosun Tourism (1992 HK): Fosun Int’l’s Indirect Takeover
Vishal Mega Mart IPO: IPO Details & Index Entry Timing
StubWorld: Business As Usual As Prosus Sells, & Tencent Buys Back
Geely (175 HK): Turning from PHEV to BEV
The Beat Ideas: Popular Vehicles & Services, Cheapest Among Dealership Business
Vivid Seats Inc (SEAT) – Monday, Sep 9, 2024
BBW: Snapping the Store: Hello Kitty Hits LA; Reiterate Buy, $58 PT
Savencia (SAVE-FR) – Monday, Sep 9, 2024
VIOT: Initiating coverage of a leading water purification company in China

Fosun Tourism (1992 HK): Scheme Buyback at HK$7.80 (95% Premium)

By Arun George

Fosun Tourism (1992 HK) disclosed a share buyback of the company through a scheme of arrangement at HK$7.80, a 95.0% premium to the last close price of HK$4.00.
The key condition is the scheme be approved by at least 75% of disinterested shareholders (rejection by <10% of disinterested shareholders).
The timing is arguably opportunistic, as the shares are down 31% YTD. Nevertheless, the high takeover premium and a potential scrip option lower the vote risk.

Fosun Tourism (1992 HK): Fosun Int’l’s Indirect Takeover

When Fosun Tourism (1992 HK), a leisure-focused integrated tourism group, was suspended pursuant to the Takeovers Code, the obvious Offeror, by way of a Scheme, was Fosun International (656 HK)
Not quite. We do have a Scheme, but it’s being enacted by way of a buyback. Fosun Int’l still abstains from voting, but will control 100% if the Scheme completes.
The Cancellation Price is $7.80/share (not declared final), a punchy 95% premium to undisturbed. I previously speculated a 100% premium was not out of the question. Clean deal.

Vishal Mega Mart IPO: IPO Details & Index Entry Timing

Vishal Mega Mart (1620871D IN) is looking to list on the exchanges by selling INR 80bn (US$943m) of stock at a valuation of INR 352bn (US$4.15bn).
Anchor allocations were completed on 10 December, the IPO opens today, and the stock is expected to start trading on 18 December. Grey market premium is around 25%.
The stock will not get Fast Entry to global indices. Inclusion at regular rebalances should take place in May and June 2025.

StubWorld: Business As Usual As Prosus Sells, & Tencent Buys Back

For the first time in 2024, Prosus NV (PRX NA) lodges a substantial shareholder notice, as its stake in Tencent (700 HK) dips below 24%.
Preceding my comments on Prosus, Tencent and Naspers (NPN SJ), are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

Geely (175 HK): Turning from PHEV to BEV

By Ming Lu

Geely’s sales volume grew by 27% YoY in November 2024.
BEV delivery growth rate accelerated to 173% YoY in November from 26% YoY in July.
Geely’s forward financial ratios are lower than its major competitors.

The Beat Ideas: Popular Vehicles & Services, Cheapest Among Dealership Business

Popular Vehicles and Services (PVSL IN) are available at a 50% discount since IPO and available at 25%
PVSL plans to enter two new states by June 2025 and open multiple new facilities, including a NEXA Studio and service centers in Maharashtra and Kerala.
PVSL’s focus on geographic expansion, high-margin segments, and inventory normalization enhances its growth potential, making it a compelling value play with room for significant re-rating in the near future.

Vivid Seats Inc (SEAT) – Monday, Sep 9, 2024

By Small Cap Consumer Research

SEAT is a leading online secondary ticket marketplace for live events with a strong market share and over 290K unique events sold in 2023
The company’s asset light model allows for high cash flow generation with forecasted growth in Marketplace, Revenue, and Adjusted EBITDA
Industry fundamentals are promising with strong consumer demand for live events, last-minute ticket purchases, and increasing average order sizes, along with a growing interest in experiential events post-Covid.

BBW: Snapping the Store: Hello Kitty Hits LA; Reiterate Buy, $58 PT

We are reiterating our Buy rating, estimates and $58 price target after visiting the Build-A-Bear X Hello Kitty and Friends Workshop pop up store in the Westfield Century City shopping center in Los Angeles.
We believe the collaboration, which opened November 15th, highlights the ability of both brands to offer a compelling and unique retail experience that, with exclusive offerings and a beautiful and exciting store for every Sanrio fan, can help drive material returns and register strong operating margins at the store level for Build-A-Bear.
We believe this collaboration also amply demonstrates the ability of Build-A-Bear to leverage their unique experiential store offerings and strong family of licensed products to create compelling, high margin retail stores.

Savencia (SAVE-FR) – Monday, Sep 9, 2024