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Daily Brief Crypto: Crypto Moves #32 – Exploring the U.S.-based Bitcoin ETFs Basis Trade and more

By | Crypto, Daily Briefs

In today’s briefing:

  • Crypto Moves #32 – Exploring the U.S.-based Bitcoin ETFs Basis Trade


Crypto Moves #32 – Exploring the U.S.-based Bitcoin ETFs Basis Trade

By Mads Eberhardt

  • On Monday’s Crypto Crisp, we briefly discussed the Bitcoin basis trade, a strategy in futures markets that exploits the difference between an asset’s spot price and its futures price, known as the ‘basis.’
  • Since this strategy involves taking both long and short positions of similar size, it is considered market-neutral, meaning it does not by default impact the asset’s price.
  • Given its market-neutral nature, one might wonder why the Bitcoin basis trade is worth discussing.

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Daily Brief Macro: Ban on Short Selling Stocks in Korea Extended Until March 2025 and more

By | Daily Briefs, Macro

In today’s briefing:

  • Ban on Short Selling Stocks in Korea Extended Until March 2025
  • China’s Economy Under a Hypothetical Case of Political Liberalization
  • CX Daily: Chinese Customers Sold on ‘Elixir of Youth’ Despite Expert Warnings
  • Fed Snap (Jun 12 Meeting): Current & Future Takeaways
  • China’s Long Property Bubble and Indebted Developers
  • Quant Signals: USDMXN
  • Macro Regime Indicator: Up, Up, Up still!
  • China: Five Headwinds To Long Term Growth
  • Nat Gas Prices to Fire Up on Rising Demand, Weak Production, and Shaky Geopolitics
  • Australia Unemployment Rate 4.0% (consensus 4.0%) in May-24


Ban on Short Selling Stocks in Korea Extended Until March 2025

By Douglas Kim

  • On 13 June, the Korean government announced that it will extend a ban on short selling stocks in Korea until end of March 2025. 
  • For now, the government has not given a 100% go-ahead on the end of the ban on short selling stocks starting 1 April 2025. 
  • However, in our view, the government is likely to allow short selling stocks in Korea once again, sometime in 2Q 2025. 

China’s Economy Under a Hypothetical Case of Political Liberalization

By Alex Ng

  • Rumor has it that President Xi is swaying towards political liberalization
  • Facts are that there are too many local representatives with regional differences rejecting Xi’s plan
  • Economies will thrive and the current chips shortage maybe overcome under liberalization

CX Daily: Chinese Customers Sold on ‘Elixir of Youth’ Despite Expert Warnings

By Caixin Global

  • In Depth: Chinese customers sold on ‘elixir of youth’ despite expert warnings 
  • Suspect arrested in stabbing of four American college teachers in China
  • Executive at ICBC’s Beijing branch investigated for suspected graft

Fed Snap (Jun 12 Meeting): Current & Future Takeaways

By Thomas Lam

  • Since the FOMC decision to remain on-hold in June was unsurprising, the emphasis was on the accompanying statement, dotplot and presser 
  • The post-meeting statement tilted somewhat dovishly, but the 2024 median dot skewed more hawkishly
  • While a July rate cut remains remote, the odds of a September or November pivot have increased following the June FOMC 

China’s Long Property Bubble and Indebted Developers

By Alex Ng

  • China policymakers’ deleveraging pressures on property developers have been supplemented by recent common prosperity measures to ensure that “housing is for living and not for speculation”.
  • This has raised concerns of a major property developer bankruptcy and questions of whether China’s highly valued property market could finally see a housing bust.
  • Chinese authorities have huge economic and political incentives to ensure that deleveraging pressure is followed by support as property developers deleverage.

Quant Signals: USDMXN

By Andreas Steno

  • The case for a stronger MXNMXN sold off massively following the Mexican election last week but we still view the MXN as a clear-cut ‘trade balance’ play.
  • As long as the trade ties between China and the US increasingly necessitate a ‘value-add middleman,’ Mexico remains in an advantageous position, regardless of whether the president is Sheinbaum or Obrador.
  • Our PCA model reveals that USDMXN is trading very rich compared to macro factors.

Macro Regime Indicator: Up, Up, Up still!

By Andreas Steno

  • In May we concluded that: “In May, our models hint of an “Up,Up,Up” environment in inflation, growth and liquidity, which is a decently positive indicator for risk assets, but also for broader reflationary trades returning through the month and into June.” The above conclusion has held true to a large extent and we went against the prevailing consensus driven by the “slowdonistas” when needed during the latter parts of April.
  • For June/July, we see an increasing liquidity trend from right about now, while the growth- and inflation cycle cyclically heats up still, while some lagged effects pull in the opposite direction.
  • From a market perspective, the overwhelming conclusion is that we will continue in an up, up, up macro regime referring to the liquidity cycle, growth cycle and cyclical price/inflation cycle.

China: Five Headwinds To Long Term Growth

By Alex Ng

  • The catch-up productivity argument would point towards 4-5% growth in China in the 2025- 2030 period.
  • We are concerned that the residential property downturn and rewiring of global supply chains will be persistent headwinds for China GDP growth in the coming years.
  • The switch to state socialism under President Xi means China is unlikely to have as much productivity pick- up as in Japan and South Korea in their earlier development stage.

Nat Gas Prices to Fire Up on Rising Demand, Weak Production, and Shaky Geopolitics

By Suhas Reddy

  • The EIA expects US natural gas production to fall by 1% in 2024 and lifted LNG price forecast for Henry Hub benchmark by 13% for the year.
  • OPEC’s 2024 global oil demand growth forecast unchanged at 2.25m bpd. But IEA lowered its projection to 960k bpd from 1.1m bpd.
  • Russia, Iraq, & Kazakhstan continued to oversupply despite lowering production MoM in May.

Australia Unemployment Rate 4.0% (consensus 4.0%) in May-24

By Heteronomics AI

  • Australia’s unemployment rate decreased to 4.0% in May 2024, with an addition of 39,700 jobs, demonstrating the resilience of the labour market.
  • Economic indicators show a split in recovery, with a strong service sector performance (PMI Services 52.5).
  • The robust service sector is offset by vulnerabilities in the manufacturing sector (PMI Manufacturing 49.7) and slow growth in consumer spending (retail sales 0.1% m-o-m in April 2024).
This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

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Daily Brief Australia: Sigma Healthcare and more

By | Australia, Daily Briefs

In today’s briefing:

  • Sigma/Chemist Warehouse Merger: ACCC Has (Many) Issues


Sigma/Chemist Warehouse Merger: ACCC Has (Many) Issues

By David Blennerhassett


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Daily Brief South Korea: Korea Stock Exchange Kospi Index, Webtoon Entertainment and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Specifics of Korea’s Official Short-Selling Regulations, Announced This Morning
  • Webtoon Entertainment IPO: The Bull Case


Specifics of Korea’s Official Short-Selling Regulations, Announced This Morning

By Sanghyun Park

  • Limiting extensions to four times after a 90-day repayment and mandating repayment after 12 months increases short-selling costs. The revision omits limits on position-holding cycles, disappointing retail investors.
  • Today’s release did not set a timeline for short-selling resumption. The ruling party has requested it after March 2025, with key officials present suggesting next year March resumption.
  • Regarding the electronic system implementation, core content aligns with the draft, but newly revealed institution numbers add a new perspective. Uncertainties remain on integrating overseas stock borrowing into the system.

Webtoon Entertainment IPO: The Bull Case

By Arun George

  • Webtoon Entertainment (WBTN US), a global storytelling platform, seeks to raise up to US$500 million through a Nasdaq IPO.
  • Webtoon is the leading web-comic player in all its major geographies, including Korea, the US and Japan. Naver Corp (035420 KS) and LY (4689 JP) are the primary shareholders.
  • The bull case rests on a large TAM, rising monthly active users, strong constant currency growth supported by monetisation initiatives, a shift to profitability, and cash generation.

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Daily Brief Singapore: AEM and more

By | Daily Briefs, Singapore

In today’s briefing:

  • AEM Holdings: New CEO = One Final Kitchen Sink in 2Q24?


AEM Holdings: New CEO = One Final Kitchen Sink in 2Q24?

By Nicolas Van Broekhoven

  • AEM (AEM SP) announced a new CEO as of 30th of May 2024. The new CEO officially starts 1st of July 2024.
  • Amy Leong will take over from Chandran Nair as she leaves her Chief Commercial Officer role at Formfactor Inc (FORM US)
  • Given the weak business results and inventory management issues it should be expected that Mrs Leong would want to clean the proverbial house before she starts in her new role.

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Daily Brief United States: Apple , Tesla , OpenAI, National Cinemedia, Natural Gas, NET Lease Office Properties, elf Beauty Inc, Cna Financial, Cincinnati Financial, Kinsale Capital Group and more

By | Daily Briefs, United States

In today’s briefing:

  • Technology Select Sector Index (XLK US): NVIDIA Could Flip Places with Apple; HUGE Flows
  • Elon Set to Lose $56B Incentive? If So, Will Tesla’s AI Shift to XAI?
  • Chat GPT Makes as Foolhardy a Bet as Apple does a Genius One
  • National Cinemedia Inc (NCMI) – Thursday, Mar 14, 2024
  • Nat Gas Prices to Fire Up on Rising Demand, Weak Production, and Shaky Geopolitics
  • NLOP: Debt Declining Affirms Valuation
  • elf Beauty Inc – STCB: Management Meetings Show STCB Powering Through; Reiterate Buy, $0.25 PT
  • CNA Financial Corporation: Initiation of Coverage – What Are Their Major International Market Growth Strategies? – Major Drivers
  • Cincinnati Financial Corporation: Initiation of Coverage – A Story Of Expansion and Diversification in Reinsurance and Global Operations! – Major Drivers
  • Kinsale Capital Group: Initiation of Coverage – A Tale of Harnessing Market Opportunities in Casualty and Property Segments! – Major Drivers


Technology Select Sector Index (XLK US): NVIDIA Could Flip Places with Apple; HUGE Flows

By Brian Freitas


Elon Set to Lose $56B Incentive? If So, Will Tesla’s AI Shift to XAI?

By Uttkarsh Kohli

  • Crucial Vote: Shareholders are voting on Musk’s $56 billion compensation deal and Tesla’s reincorporation in Texas, pivotal decisions for the company’s direction.
  • High Stakes: The outcome will determine Musk’s commitment to Tesla, potentially shifting his focus to other ventures and impacting Tesla’s operations.
  • Institutional Opposition: Significant resistance from institutional investors and logistical issues for global shareholders create uncertainty. Abstaining from voting counts as a vote against, hindering Elon-supporting retail investors.

Chat GPT Makes as Foolhardy a Bet as Apple does a Genius One

By White Brook Capital

  • Last night Bloomberg’s Mark Gurman reported that in exchange for OpenAI’s position in MacOS, IOS, and iPadOS, Apple would pay OpenAI nothing. 
  • To level set, earlier this week, Apple unveiled their implementation of artificial intelligence, branded “Apple Intelligence”.
  • Apple Intelligence separates itself from Google’s Gemini and OpenAI’s ChatGPT by identifying and addressing user queries that contain personal information, but for capabilities it isn’t capable of performing, asking for user permission, and outsourcing the request to OpenAI’s ChatGPT, anonymously. 

National Cinemedia Inc (NCMI) – Thursday, Mar 14, 2024

By Value Investors Club

  • NCMI is a post-reorg equity with a leading market share in cinema advertising niche
  • Benefiting from a rebound in US cinema attendance, NCMI has a strong return profile and attractive forward unlevered FCF yield
  • Despite facing financial challenges in 2020, NCMI is in a solid financial position with a net cash balance and updated Board of Directors, poised for growth and success with its largest digital cinema advertising network in the US

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.


Nat Gas Prices to Fire Up on Rising Demand, Weak Production, and Shaky Geopolitics

By Suhas Reddy

  • The EIA expects US natural gas production to fall by 1% in 2024 and lifted LNG price forecast for Henry Hub benchmark by 13% for the year.
  • OPEC’s 2024 global oil demand growth forecast unchanged at 2.25m bpd. But IEA lowered its projection to 960k bpd from 1.1m bpd.
  • Russia, Iraq, & Kazakhstan continued to oversupply despite lowering production MoM in May.

NLOP: Debt Declining Affirms Valuation

By Hamed Khorsand

  • NLOP announced the sale of two more properties bringing the aggregate count of properties sold since fourth quarter 2023 to twelve.   
  • NLOP has been highly active in selling properties. We believe the motivation has more to do with the interest expense of its mortgage and mezzanine loans.   
  • The latest two properties sold were materially higher than the company-wide price per square foot NLOP is carrying on its balance sheet.

elf Beauty Inc – STCB: Management Meetings Show STCB Powering Through; Reiterate Buy, $0.25 PT

By Small Cap Consumer Research

  • We are reiterating our Buy rating, $0.25 price target and projections for Starco Brands after meeting with management in their Los Angeles headquarters.
  • With 2024 shaping up as a period of setting the stage for material growth in all the company’s brands, we believe management is confident they are making the correct investments to drive multiple periods of top and bottom line upside, with the correct retail partners and product upgrades and expansions.
  • As such, we look for the company to continue to put the pieces in place in 2024 to achieve highly significant door expansion and new category growth going forward, positioning Starco for material gains.

CNA Financial Corporation: Initiation of Coverage – What Are Their Major International Market Growth Strategies? – Major Drivers

By Baptista Research

  • CNA Financial Corporation reported its first quarter 2024 results, showing positive dynamics in profitability, investment income, and top-line growth.
  • The company achieved its highest first-quarter core income on record at $355 million, driven by a significant $84 million year-over-year increase in net investment income to $609 million.
  • These results were bolstered by contributions from both the alternatives and the fixed income portfolios.

Cincinnati Financial Corporation: Initiation of Coverage – A Story Of Expansion and Diversification in Reinsurance and Global Operations! – Major Drivers

By Baptista Research

  • Cincinnati Financial Corporation reported strong financial results for the first quarter of 2024, highlighting significant progress in underwriting profitability and growth in investment income.
  • The net income reported was $755 million, which included a substantial gain of $484 million attributed to the increase in the fair value of equity securities.
  • The non-GAAP operating income also showed a positive trend, nearly doubling from the previous year to $272 million, thanks to a reduction in catastrophe losses and robust operating performance.

Kinsale Capital Group: Initiation of Coverage – A Tale of Harnessing Market Opportunities in Casualty and Property Segments! – Major Drivers

By Baptista Research

  • Kinsale Capital Group Inc. recently reported strong quarterly results, demonstrating robust growth and operational efficiency.
  • The company’s operating earnings per share increased by 43.4%, and gross written premiums grew by 25.5% compared to the same quarter in the previous year.
  • Kinsale’s combined ratio, an indicator of the profitability of its insurance operations, stood at an impressive 79.5%, highlighting an effective underwriting performance.

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Daily Brief Indonesia: China Hongqiao and more

By | Daily Briefs, Indonesia

In today’s briefing:

  • Morning Views Asia: Alam Sutera Realty, China Hongqiao, Lippo Karawaci, Tata Motors ADR


Morning Views Asia: Alam Sutera Realty, China Hongqiao, Lippo Karawaci, Tata Motors ADR

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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Daily Brief India: Aegis Logistics, China Hongqiao and more

By | Daily Briefs, India

In today’s briefing:

  • The Beat Ideas: Aegis Logistics: Fueling India’s LPG Market
  • Morning Views Asia: Alam Sutera Realty, China Hongqiao, Lippo Karawaci, Tata Motors ADR


The Beat Ideas: Aegis Logistics: Fueling India’s LPG Market

By Sudarshan Bhandari

  • Aegis Logistics (AGIS IN) is significantly expanding its LPG and liquid logistics infrastructure across India with rising demand.
  • Currently, Aegis has a 15.5% market share in LPG imports in India which they plan to take to 25% in the next few years.
  • Surpassed INR 1,000 crores in normalized EBITDA for FY ’24, planned capex of 4500 Crores by FY27.

Morning Views Asia: Alam Sutera Realty, China Hongqiao, Lippo Karawaci, Tata Motors ADR

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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Daily Brief China: Chow Tai Fook Jewellery, JD.com Inc (ADR), Luckin Coffee, Hong Kong Television Network, AP Moeller – Maersk A/S, UMP Healthcare, China Hongqiao and more

By | China, Daily Briefs

In today’s briefing:

  • Chow Tai Fook (1929 HK): Disappointed
  • [Blue Lotus Multi-Sector Sector Update]: Consumer Spending Weakened During Dragon Boat
  • Luckin’s Small Step into Non-Coffee Drinks Is a Big Step of Its Future Directions
  • HKTV (1137 HK): 9th July Vote On Share Buy-Back
  • Why an Israel-Hamas Ceasefire Probably Wouldn’t Lead to Lower Container Rates in Short-Term
  • UMP Healthcare (722 HK): Deep Value Turnaround in FY25
  • Morning Views Asia: Alam Sutera Realty, China Hongqiao, Lippo Karawaci, Tata Motors ADR


Chow Tai Fook (1929 HK): Disappointed

By Osbert Tang, CFA

  • Chow Tai Fook Jewellery (1929 HK) reported a weaker-than-expected FY24 net profit. Despite having HK$2.2bn net cash, the lack of a special dividend is even more disappointing. 
  • Surge in unrealised loss on gold loans and a YoY contraction in margin have contributed to the poor 2H24 result. Apr-May operating figures showed a deteriorated operating environment.
  • Lacking a special dividend, CTF no longer looks attractive at the current level. Overoptimistic FY25 and FY26 consensus forecasts mean earnings downgrade pressure. 

[Blue Lotus Multi-Sector Sector Update]: Consumer Spending Weakened During Dragon Boat

By Eric Wen

  • Travel and box office data in the past three-day Dragonboat Holiday showed worrying weakness despite sharp price cuts by hotel and airlines. 
  • Removing travellers from Hong Kong, inbound travel was also quite bad; 
  • E-Commerce sales backed by trade-in stimulus outperformed regular merchandises, indicating consumer confidence is still low. We believe the weak travel data boded ill for consumption throughout the year.

Luckin’s Small Step into Non-Coffee Drinks Is a Big Step of Its Future Directions

By Andy Fu

  • Luckin launched lemonade drinks with raging success of 5.08 mn cups sold for the first week, ~10% of store sales. Market cheered to send the stock higher;  
  • We view it with mixed feelings. While it is margin accretive and sales enhancing,  is not conducive to improving coffee penetration and cultivating consumers’ habit for drinking coffee;
  • We see Luckin as increasingly one of, instead of the, street drink company, because lemonade is actually the top selling SKU of all milk tea vendors in China. 

HKTV (1137 HK): 9th July Vote On Share Buy-Back

By David Blennerhassett

  • Back on the 22nd May, online shopping platform play Hong Kong Television Network (1137 HK) announced a buy-back of 11.25% of shares out, at $2.15/share, a 20.8% premium to undisturbed.
  • Should the Offer complete, co-founder Ricky Wong’s stake, together with concert parties, increases to 51.55% (before exercising options), up from 45.75% currently. Optically, it’s a opportunistic share grab. 
  • The Offer Doc is now out, with an EGM to vote on the whitewash waiver on the 9th July. 

Why an Israel-Hamas Ceasefire Probably Wouldn’t Lead to Lower Container Rates in Short-Term

By Daniel Hellberg

  • Its unclear whether Yemen-based Houthis would end attacks after ceasefire
  • We’ve entered peak Summer shipping season from Asia to US, Europe
  • Higher spot rates have already lifted contract rates in Q2 2024

UMP Healthcare (722 HK): Deep Value Turnaround in FY25

By Sameer Taneja

  • We preview UMP Healthcare (722 HK)  earnings for FY24 (June-end), which will be declared in September, and our outlook for FY25. 
  • The company has more than 300 mn HKD of net cash (almost 75% of its market cap), and even assuming a 20% dividend cut, it has an ~8% dividend yield.
  • On core earnings for FY24, we estimate that the stock trades at 12x PE( ex-cash 2.8x PE), with low-hanging fruit from streamlining the business in FY25. 

Morning Views Asia: Alam Sutera Realty, China Hongqiao, Lippo Karawaci, Tata Motors ADR

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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Daily Brief Japan: Takeda Pharmaceutical, TSE Tokyo Price Index TOPIX, Cyber Security Cloud Inc, Kfc Holdings Japan, Broadleaf, Alconix Corp and more

By | Daily Briefs, Japan

In today’s briefing:

  • Takeda (4502 JP)– Avoid
  • Companies with Low ROEs Have Corporate Governance Practices that Only Make It So
  • Cyber Security Cloud Inc (4493 JP): Q1 FY12/24 flash update
  • Kfc Holdings Japan (9873 JP): Full-year FY03/24 flash update
  • Kfc Holdings Japan (9873 JP): Full-year FY03/24 flash update
  • Kfc Holdings Japan (9873 JP): Full-year FY03/24 flash update
  • Kfc Holdings Japan (9873 JP): Full-year FY03/24 flash update
  • Broadleaf (3673 JP): Q1 FY12/24 flash update
  • Kfc Holdings Japan (9873 JP): Full-year FY03/24 flash update
  • Alconix Corp (3036 JP): Full-year FY03/24 flash update


Takeda (4502 JP)– Avoid

By Avien Pillay

  • Given the high number of pipeline dropouts, and the potentially disappointing $6 bn psoriasis drug acquisition, we question Takeda’s recent investment track record.
  • A big restructuring, high expectations from new/recently launched drug portfolio, and punchy company guidance reduces the probability of upside surprises.
  • Unless you are limited from investing outside Japan and you want exposure to an innovative pharma company, we believe that there are better and cheaper options elsewhere.

Companies with Low ROEs Have Corporate Governance Practices that Only Make It So

By Aki Matsumoto

  • Companies with the ROE over 15% have higher market capitalization, foreign ownership, and Tobin’s Q, and naturally higher ROA, while the opposite tends to be true companies with low ROE.
  • Groups with ROE above 15% have generally improved their corporate governance practices, but they still need to address their use of cash in order to further improve return on capital.
  • It’s clear that companies with low ROE have the form of board practices but not the substance, and that they don’t have a clear policy for increasing return on capital.

Cyber Security Cloud Inc (4493 JP): Q1 FY12/24 flash update

By Shared Research

  • Revenue was JPY954mn (+32.5% YoY), with subscription-based recurring revenue at JPY837mn (+23.6% YoY), accounting for 87.8% of total revenue.
  • Operating profit was JPY315mn (+94.2% YoY), with operating expenses at JPY638mn (+14.5% YoY), and OPM at 33.1% (+10.5pp YoY).
  • Companywide ARR totaled JPY3.4bn (+22.7% YoY), with user count at 1,292 companies (+6.2% YoY) and churn rate at 1.05% (+0.01pp YoY).

Kfc Holdings Japan (9873 JP): Full-year FY03/24 flash update

By Shared Research

  • Revenue increased 10.8% YoY to JPY110.7bn, driven by an 8.0% YoY rise in comparable store sales and 35 new stores.
  • Operating profit rose 61.8% YoY to JPY5.9bn, with OPM at 5.3%, GPM at 40.9%, and SG&A ratio down to 35.6%.
  • KFC Holdings opened 51 new stores, remodeled 183 stores, and increased delivery service stores to 942, boosting system sales by 10.5% YoY.

Kfc Holdings Japan (9873 JP): Full-year FY03/24 flash update

By Shared Research

  • Revenue increased 10.8% YoY to JPY110.7bn, driven by an 8.0% YoY rise in comparable store sales and 35 new stores.
  • Operating profit rose 61.8% YoY to JPY5.9bn, with OPM at 5.3%, GPM up to 40.9%, and SG&A ratio down to 35.6%.
  • KFC Holdings opened 51 new stores, remodeled 183 stores, and increased delivery service stores to 942 in FY03/24.

Kfc Holdings Japan (9873 JP): Full-year FY03/24 flash update

By Shared Research

  • Revenue increased 10.8% YoY to JPY110.7bn, driven by an 8.0% YoY rise in comparable store sales and a 2.9% YoY increase in store numbers.
  • Operating profit rose 61.8% YoY to JPY5.9bn, with OPM at 5.3%, GPM up 0.4pp to 40.9%, and SG&A ratio down 1.3pp to 35.6%.
  • The company opened 51 new stores, remodeled 183 stores, and increased delivery service stores to 942, with system sales up 10.5% YoY.

Kfc Holdings Japan (9873 JP): Full-year FY03/24 flash update

By Shared Research

  • Revenue increased 10.8% YoY to JPY110.7bn, driven by an 8.0% YoY rise in comparable store sales and 35 new stores.
  • Operating profit rose 61.8% YoY to JPY5.9bn, with OPM at 5.3%, GPM up 0.4pp to 40.9%, and SG&A ratio down 1.3pp.
  • System sales grew 10.5% YoY, with customer count down 2.5% YoY and average spend per customer up 10.8% YoY.

Broadleaf (3673 JP): Q1 FY12/24 flash update

By Shared Research

  • Revenue increased by 10.6% YoY to JPY4.0bn, with cloud services revenue up 79.3% YoY due to subscription growth.
  • Operating loss was JPY109mn, pre-tax loss JPY42mn, and loss attributable to owners JPY35mn, all improved from Q1 FY12/23.
  • Revised 1H FY12/24 forecast: revenue JPY8.2bn, operating loss JPY500mn, pre-tax loss JPY500mn, and loss attributable to owners JPY400mn.

Kfc Holdings Japan (9873 JP): Full-year FY03/24 flash update

By Shared Research

  • Revenue increased 10.8% YoY to JPY110.7bn, driven by an 8.0% YoY rise in comparable store sales and 35 new stores.
  • Operating profit rose 61.8% YoY to JPY5.9bn, with OPM at 5.3% and GPM up to 40.9%, despite rising costs.
  • KFC Holdings opened 51 new stores in FY03/24, bringing the total to 1,232, and remodeled 183 stores.

Alconix Corp (3036 JP): Full-year FY03/24 flash update

By Shared Research

  • FY03/24 revenue was JPY174.9bn (-1.9% YoY), operating profit JPY5.5bn (-34.9% YoY), and net income JPY1.6bn (-70.9% YoY).
  • FY03/25 forecast: revenue JPY185.0bn (+5.8% YoY), operating profit JPY7.2bn (+31.8% YoY), net income JPY4.5bn (+181.6% YoY).
  • FY03/27 targets: revenue JPY220.0bn, operating profit JPY12.0bn, recurring profit JPY12.0bn, EBITDA JPY16.4bn, ROE at least 12.0%.

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