Smartkarma Daily Briefs

Shopify Inc. has reported a strong performance for the third quarter of 2024, showcasing significant growth and expansion across several facets of its business.
The company’s gross merchandise volume (GMV) grew 24% for the quarter, marking the fifth consecutive quarter of GMV growth over 20%.
This growth was attributed to increased same-store sales among existing merchants, growth in new merchants, and international expansion, particularly in Europe.

[Kanzhun Ltd. (BZ US, BUY, TP US$17) Target Price Change]: Mark Down C4Q24 and 2025 on Weak Demand

By Eric Wen

Kanzhun, along with Kuaishou, Beike and PDD, are we call the “Macro Mauled Champions” (MMC). We suggest long term investors to accumulate;
Weak industrial sector earnings in October bodes ill for manufacturing hiring into C4Q24 and we think may further extend to early 2025 recruiting season;
We expect BZ to grow profit faster than revenues on cost savings, particularly on marketing and gain shares. We cut the TP from US$19 to US$17.

Taiwan Semiconductor Industry Aggregate Analysis: Margins Challenged; Inventory Data Positive

By Vincent Fernando, CFA

Gross Margins Aggregate Data – Shows Taiwan Semiconductor Companies Under Pressure
How TSMC and GlobalWafers show two very different margin environments; However everyone needs to manage rising energy costs into 2025E
Aggregate Inventory Levels — Inventory Days Declining Trend is a Positive Sign

Taiwan Dual-Listings Monitor: TSMC Spread Approaching Short Level; UMC Short Interest Soars Higher

By Vincent Fernando, CFA

TSMC: +20.4% Premium; ADR Premium is Approaching a Short Level
UMC: +0.7% Premium; Short Interest Soars to New Two-Year Highs
ASE: +4.2% Premium; ADR Headroom Falls to 100% Maxed Out

Memory Monitor: Decoupling Trade Long SK Hynix Vs. Short Nanya Tech

By Vincent Fernando, CFA

Memory Market Diverges: AI Demand Continues to Surges While Legacy Segments Struggle in November
Diverging Demand Trends Highlight Market Decoupling — AI Driving HBM, Server DRAM, QLC NAND Demand
Outlook for the Memory Market — Decoupling Trade: Long SK Hynix vs. Short Nanya Tech Trade

Microsoft Under Fire: 4 Critical Factors Investors Can’t Ignore Amid U.S. Antitrust Probe!

Microsoft, one of the world’s leading technology giants, is currently facing a comprehensive antitrust investigation by the U.S. Federal Trade Commission (FTC).
The probe, initiated by FTC Chair Lina Khan, is examining allegations that Microsoft is potentially abusing its market power in productivity software and cloud computing.
Specifically, the FTC is scrutinizing the company’s software licensing practices, which may be preventing customers from moving their data from Microsoft’s Azure cloud service to competing platforms.

Shift4 Payments: International Expansion in Strategic Markets & Other Major Drivers

Shift4 Payments reported strong financial results for the third quarter of 2024, emphasizing both its achievements and areas that need improvement.
The company set quarterly records for several key performance indicators (KPIs), including volume, gross revenue less network fees, adjusted EBITDA, and adjusted free cash flow.
The adjusted EBITDA margin reached a new quarterly high of 51.3%, or nearly 54% excluding impacts from recent acquisitions.

Skyworks Solutions: An Insight Into Its Diversification in Broad Markets & Other Major Drivers

Skyworks Solutions posted robust performance during the fourth fiscal quarter of 2024, marked by revenues of $1.025 billion and earnings per share (EPS) at $1.55, aligning with or surpassing prior guidance midpoints.
The company generated $393 million in free cash flow, continuing its trend of strong cash generation, which for a second consecutive year surpassed $1.6 billion annually.
This financial stability underpins investments in technology advancements and product development crucial for future growth.

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Dec 01

Daily Brief Industrials: Hainan Jinpan Smart Technology, Sieyuan Electric Co Ltd A, Cosco Shipping Energy Transportation Co. Ltd. (H), Keisei Electric Railway Co, Korean Air Lines, Flowserve Corp and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

STAR50/STAR100 Index Rebalance: No Changes for STAR50; 4 Changes for STAR100
CSI300/CSI500/CSI1000 Index Rebalance: US$9bn Round-Trip Trade
A/H Premium Tracker (To 29 Nov 2024): AH Premia Flat, Volumes Low; Premia Should Fall More
Last Week in Event SPACE: Keisei Electric Railway, Vitasoy, NEC Network, ESR Group
Korean Air Spearheading the Korean Airline Industry Consolidation
Flowserve Corporation: These Are The 7 Biggest Factors Impacting Its Performance In 2025 & Beyond! – Major Drivers

STAR50/STAR100 Index Rebalance: No Changes for STAR50; 4 Changes for STAR100

As forecast, there are no changes for the SSE STAR50 (STAR50 INDEX) in December while there are 4 changes for the STAR100 Index.
There will be big outflows for Semiconductor Manufacturing International Corporation (SMIC) (688981 CH) due to SSE STAR50 (STAR50 INDEX) capping. There will be selling from other index trackers too.
Hainan Jinpan Smart Technology (688676 CH) had been ignored by the index committee at the September rebalance, so this inclusion in the STAR100 Index could come as a surprise.

CSI300/CSI500/CSI1000 Index Rebalance: US$9bn Round-Trip Trade

There are 16 changes for the CSI 300 Index, 50 changes for the CSI 500 Index and 100 changes for the CSI1000 Index that will be implemented on 13 December.
There are 257 unique names that are adds or deletes and the round-trip trade across all 3 indices is close to US$9bn.
Stocks with the largest inflows and impact have outperformed stocks with the largest outflows and impact over the last few weeks. That could continue for the next couple of weeks.

A/H Premium Tracker (To 29 Nov 2024): AH Premia Flat, Volumes Low; Premia Should Fall More

Mainland share market volumes continue to be better than HK and SOUTHBOUND volumes, but SB continues to buy tech.
Stocks in HK and mainland markets bounced a bit this week as Scott Bessent named incoming Treasury Secretary and tariff talk diverges from China. Non-economic China policy matters more near-term.
H/A Pairs were surprisingly un-volatile on the week. There are a fair number of wider spreads. Non-bank financials AH Premia remain at the low end of their 52-week range.

Last Week in Event SPACE: Keisei Electric Railway, Vitasoy, NEC Network, ESR Group

By David Blennerhassett

Remain BULLISH Keisei Electric Railway Co (9009 JP) with low conviction. This is buying on narrative rather than fundamentals but there is no need to not get involved.
Vitasoy Intl Holdings (345 HK)‘s share price run up is excessive as Philip Ng andYeo Hiap Seng (YHS SP) over-extend their hand.
Nec Networks (1973 JP) has yet to trade below terms. The premium is small, perhaps reflecting the risk NEC will lower the minimum threshold. But there is still a fight here.

Korean Air Spearheading the Korean Airline Industry Consolidation

By Douglas Kim

Nearly four years have passed since Korean Air first proposed a merger with Asiana Airlines in November 2020. Despite repeated delays, it appears that this merger could finally occur.
There is now a higher probability of Korean Air and Asiana Airlines receiving the final merger approval from the United States Department of Justice.
Combined with attractive valuations, better balance sheet, and improved profitability from the merged entity, we believe that Korean Air shares could continue to outperform KOSPI in the next 12 months.

Flowserve Corporation: These Are The 7 Biggest Factors Impacting Its Performance In 2025 & Beyond! – Major Drivers

Flowserve Corporation’s third-quarter 2024 financial results reveal a mix of strengths and ongoing challenges as the company continues to execute its strategic growth plans.
The company demonstrated notable progress in several key areas, while also acknowledging factors that moderated its performance in the quarter.
On the positive side, Flowserve achieved a book-to-bill ratio exceeding 1.06, with bookings hitting $1.2 billion—a clear indicator of demand across its business segments.

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Dec 01

Daily Brief Consumer: Alibaba Group Holding , Cloud Village, Astra Otoparts, Trip.com Group , Seres Group , Inter Parfums, Seven & I Holdings, Tencent Music, TI Fluid Systems and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Six Hang Seng Index Family Indices: Flows for Dec 6 Rebal
KWEB Index Rebalance: 1 Add & 4 Deletes in December
Astra Otoparts (AUTO IJ) – EVs, Modern Retail, and Medical Equipment
HK Connect SOUTHBOUND Flows (To 29 Nov 2024); SB Trading Volumes Lower, Still Strong Net Buying Tech
BUY/SELL/HOLD: Hong Kong Stock Updates (NOVEMBER 29)
SSE50/SSE180 Index Rebalance: Couple of Surprises; Seres Group’s Multiple Inclusions; US$3.2bn Trade
Inter Parfums Inc.: Expanding Brand Portfolio with New Launches To Change The Game! – Major Drivers
Mostly) Asia-Pac M&A: SG Fleet, Shandong Hi-Speed New Energy, HPI, Capitol Health, Henlius, 7 & I
Tencent Music Entertainment Group: Technological Innovations & Product Upgrades Driving Our Bullishness! – Major Drivers
ABC/TI Fluid Systems: Offer Announcement, Interesting Annual Return

Six Hang Seng Index Family Indices: Flows for Dec 6 Rebal

In this insight, we present the flows to buy and sell for each of the top 6 Hang Seng Index Family indices based on estimated tracking AUM.
The indices: Hang Seng Index (HSI), HS Tech Index (HSTECH), HS China Enterprise Index (HSCEI), HS HK Biotech (HSHKBIO), HS Internet & Infotech (HSIII), and HS Healthcare Index (HSHCI).
By Quiddity calculations based on prices of 29 November’s close, there is one-way flow across these six indices of HK$15,894,690,433.49 to trade on 6 December. Roughly speaking.

KWEB Index Rebalance: 1 Add & 4 Deletes in December

The December rebalance of the KraneShares CSI China Internet ETF (KWEB US) will take place at the close of trading on 13 December.
Cloud Village (9899 HK) is an add while Lufax Holding (LU US), Ping An Healthcare and Technology (1833 HK), ZX (9890 HK) and YSB (9885 HK) are deletes.
The deletions of Ping An Healthcare (1833 HK), ZX (9890 HK) and YSB (9885 HK) were forecast and there will be positioning in the stocks. Lufax was a close delete.

Astra Otoparts (AUTO IJ) – EVs, Modern Retail, and Medical Equipment

By Angus Mackintosh

Astra Otoparts (AUTO IJ) looks set to see increasing contributions from its modern retail push, which will boost its trading business and should see margins improving over time.
AUTO is pushing into both the EV component space and manufacturing public and residential EV charging equipment. It is also venturing into medical devices as local content becomes a requirement.
AUTO has outperformed the auto market since the pandemic and looks set to continue to do so through new growth segments. Valuations attractive on 5.5x forward PER and 8% yield.

HK Connect SOUTHBOUND Flows (To 29 Nov 2024); SB Trading Volumes Lower, Still Strong Net Buying Tech

SOUTHBOUND gross trading activity dropped sharply again to the lowest in a few months but net SOUTHBOUND buying remains very strong, with big flows on tech.
Most of the top names were tech names – both in gross and net buys. Only 1 tech name in top five net sells.
Last week I said I expect HK-listed tech to continue getting bought. Alibaba, Tencent, Xiaomi, etc are safe havens against Trump tariffs as they don’t compete in the US. Continue.

BUY/SELL/HOLD: Hong Kong Stock Updates (NOVEMBER 29)

By David Mudd

As Hong Kong market continues to consolidate, the consumer discretionary sector is leading in momentum and strength while the energy and materials sectors lag.
Trip.com Group (9961 HK) , Trip.com (TCOM US) received BUY ratings after a strong 3Q24 announcement on revenue and earnings. China’s tourist numbers are projected to reach Pre-COVID levels soon.
Yum China Holdings (9987 HK) , Yum China Holdings (YUMC US) received BUY ratings after initial success from its small store/franchising strategy. The company is actively returning capital to shareholders.

SSE50/SSE180 Index Rebalance: Couple of Surprises; Seres Group’s Multiple Inclusions; US$3.2bn Trade

There are 5 changes for the SSE50 Index (SSE50 INDEX) and 18 changes for the SSE180 Index that will be implemented at the close on 13 December.
Seres Group (601127 CH) is an add to both indices, plus the CSI 300 Index, and passive trackers will need to buy over US$900m of the stock.
The adds have outperformed the deletes with a lot of the outperformance coming in the last couple of months. Trim positions in the expected adds/deletes and build positions in surprises.

Inter Parfums Inc.: Expanding Brand Portfolio with New Launches To Change The Game! – Major Drivers

Interparfums Inc.’s third quarter financial results for 2024 highlight several key aspects of their performance, including strengths and challenges in a fluctuating global market.
On the positive side, the company reported its best third quarter in history, driven by robust sales across all major markets.
North America, Western Europe, and Asia Pacific all saw double-digit sales growth, with North America up 12%, Western Europe 25%, and Asia Pacific 15%.

Mostly) Asia-Pac M&A: SG Fleet, Shandong Hi-Speed New Energy, HPI, Capitol Health, Henlius, 7 & I

By David Blennerhassett

I tally 48 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
Three new deals this week: NBIOs for SG Fleet (SGF AU) and AVJennings Ltd (AVJ AU); and Shandong Hi-Speed New Energy (1250 HK)‘s MGO. Fosun Tourism (1992 HK) also suspended.
Key updates/news took place on: Hotel Property Investments (HPI AU), Capitol Health (CAJ AU), Shanghai Henlius Biotech (2696 HK), Seven & I Holdings (3382 JP) and SAMTY HOLDINGS (187A JP).

Tencent Music Entertainment Group: Technological Innovations & Product Upgrades Driving Our Bullishness! – Major Drivers

Tencent Music Entertainment Group (Tencent Music) delivered a solid performance for the third quarter of 2024.
The company demonstrated a balanced strategy that resulted in revenue growth and increased subscriber numbers, emphasizing its broad content ecosystem’s growing influence and user value proposition.
Tencent Music reported significant growth in its online music services, with a 20% year-over-year increase in revenue, contributing to a 29% enhancement in adjusted net profit.

ABC/TI Fluid Systems: Offer Announcement, Interesting Annual Return

By Jesus Rodriguez Aguilar

On November 29 (PUSU deadline), TI Fluid Systems agreed to a £1.04 billion ($1.32 billion) takeover by ABC Technologies, 4.4x EV/NTM EBITDA vs. comparables at 4.6x, 6.7x Fwd P/E.
Investors have flocked to this deal, as regulatory clearances do not seem particularly demanding.
Spread is 3.7%/11.98% (gross/annualised, assuming settlement by 30 March 2025). Taking 135.8p break, the implied probability of deal completion is 88.5%. Long.

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Nov 30

Daily Brief Australia: Clarity Pharmaceuticals Ltd, Aft Pharmaceuticals and more

By Smartkarma Daily Briefs | Australia, Daily Briefs

In today’s briefing:

Clarity Pharmaceuticals (CU6 AU): Well-Funded, Pipeline Progressing Well, Growth Prospects Galore
AFT Pharmaceuticals – Softer H1 on one-offs; recovery expected in H2

Clarity Pharmaceuticals (CU6 AU): Well-Funded, Pipeline Progressing Well, Growth Prospects Galore

By Tina Banerjee

Clarity Pharmaceuticals Ltd (CU6 AU) announced that two participants have been dosed with 64Cu-SAR-bisPSMA and imaged days after the commencement of the Co-PSMA Investigator-Initiated Trial (IIT).
SARTATE completes final assessment in Phase II diagnostic trial for neuroendocrine tumours. SAR-Bombesin began trial for castrate resistant prostate cancer.
Clarity’s copper platform, strong prostate pipeline, and therapeutic and diagnostic efficacy data represent an attractive opportunity to grow a significant radiopharmaceutical franchise in oncology and other indications.

AFT Pharmaceuticals – Softer H1 on one-offs; recovery expected in H2

By Edison Investment Research

AFT Pharmaceuticals reported H125 revenues of NZ$86.7m, a 3.7% y-o-y increase, albeit lower than expected due to one-off factors such as inventory rationalisation by certain international customers and a prolonged doctors’ strike in South Korea (combined sales of NZ$10m vs NZ$18.2m in H124). These factors, along with continued R&D and marketing efforts, weighed on profits, with AFT reporting an operating loss of NZ$1.8m in H125 (profit of NZ$3.3m in H124). The strong domestic Australia and New Zealand (ANZ) market performance provided a positive offset, with 17.4% y-o-y revenue growth to NZ$76.7m and improved operating profitability. Management expects a recovery in H2 but has lowered full-year operating profit guidance to NZ$15–20m (from NZ$22–25m previously) to reflect the H1 impact. The longer-term target is to achieve NZ$300m in sales by end-FY27, driven by expansion efforts. Factoring in the new FY25 guidance, we have lowered our valuation to NZ$697.4m or NZ$6.65/share (from NZ$725.5m or NZ$6.92/share).

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Nov 30

Daily Brief South Korea: LS Marine Solution, LS Materials and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

Ecopro BM’s KOSPI Move: Trade LS Marine Solution & Green Cross for the Real Play
End of Mandatory Lock-Up Periods for 52 Companies in Korea in December 2024

Ecopro BM’s KOSPI Move: Trade LS Marine Solution & Green Cross for the Real Play

By Sanghyun Park

Ecopro BM’s still hot trading volume might minimize passive impact. The real action is who replaces it in KOSDAQ 150 and which KOSPI 200 stock gets the boot.
LS Marine Solution joins KOSDAQ 150, while Green Cross Holdings gets the boot due to the lowest average daily market cap from May 1 to October 31.
KRX fast-tracks approvals for financially strong companies in 20 trading days. Ecopro BM likely qualifies, meaning approval could come before Christmas—ideal timing for entry.

End of Mandatory Lock-Up Periods for 52 Companies in Korea in December 2024

By Douglas Kim

We discuss the end of the mandatory lock-up periods for 52 stocks in Korea in December 2024, among which two are in KOSPI and 50 are in KOSDAQ.
Hese 52 stocks on average could be subject to further selling pressures in December and could underperform relative to the market.
The top three market cap stocks including those of which at least 1% of outstanding shares could be sold in December are Jeju Air, LS Materials, and Toolgen.

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Nov 30

Daily Brief Singapore: Sasseur REIT, SGX Rubber Future TSR20 and more

By Smartkarma Daily Briefs | Daily Briefs, Singapore

In today’s briefing:

Company Spotlight: Sasseur REIT
Helixtap China Report: Declining Inventory Could Help Revive Demand

Company Spotlight: Sasseur REIT

By Geoff Howie

Company Spotlight: Sasseur REIT

Helixtap China Report: Declining Inventory Could Help Revive Demand

By Arusha Das

Inventory lowest in 13th months
Arbitrage widens for African and Indonesian rubber
Frontloading resulted in spike in exports

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Nov 30

Daily Brief United States: Dollar Index, NVIDIA Corp, Shake Shack Inc Class A, Peabody Energy , USD Coin, Portland General Electric Company, Entergy Corp, Public Service Enterprise Group Inc, One Gas Inc, Oge Energy Corp and more

By Smartkarma Daily Briefs | Daily Briefs, United States

In today’s briefing:

Global FX Volatility Outlook 2025
Inside NVIDIA’s $35 Billion Quarter: Can AI and Hopper Tech Keep the Momentum? – Major Drivers
Shake Shack Inc (SHAK) – Friday, Aug 30, 2024
Matt Warder & Koala Unpack Peabody’s $3B+ Coal Deal
Crypto Moves #54 – While Everyone Looks at Donald Trump, No One Considers the EU’s MiCA
Portland General Electric’s The $250M Transmission Projects: The Bold Step Toward a Renewable Future! – Major Drivers
Entergy Corporation: Its Focus on Clean Energy & Electrification & Other Major Drivers
Public Service Enterprise Group: An Analysis Of Its Data Center Integration
ONE Gas’s Regulatory Triumphs: How Timely Approvals Are Boosting Growth in 2025 and Beyond! – Major Drivers
OGE Energy Corp.: Is Its Strong Load Growth Across Sectors Here To Stay? – Major Drivers

Global FX Volatility Outlook 2025

By At Any Rate

DXY strength through 1Q25 predicted with positive volatility
Dollar correlations expected to remain firm, with potential pockets of soft cross correlations
Systematic FX adoptions models highlight opportunities in FX carry via options, short volume strategy, volume reversal model, and volcurve model for 2025

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

Inside NVIDIA’s $35 Billion Quarter: Can AI and Hopper Tech Keep the Momentum? – Major Drivers

The latest earnings result and call for NVIDIA Corporation (NVIDIA) indicate a period of remarkable growth and robust financial performance driven primarily by the adoption of its AI technologies and data center products.
NVIDIA reported record revenue of $35.1 billion, which represents a 17% sequential increase and a striking 94% year-over-year growth, surpassing its revenue outlook of $32.5 billion.
This growth spanned all market platforms, particularly fueled by the increasing demand for NVIDIA’s accelerated computing and AI solutions.

Shake Shack Inc (SHAK) – Friday, Aug 30, 2024

By Value Investors Club

Investment thesis recommends shorting Shake Shack due to declining traffic, comp growth, and new unit productivity
Stock price has surged despite challenges, trading at over 100x earnings
Uncertain outlook with activist investor no longer involved and unique smashburger being commoditized, raising doubts about sustainability of growth.

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.

Matt Warder & Koala Unpack Peabody’s $3B+ Coal Deal

By Money of Mine

WA government announces $150 million package for lithium miners, including waiving government fees for two years
Package also includes a $50 million loan facility for interest-free loans to sustain operations
While the news did not significantly impact stock prices, it provides some relief and support for struggling lithium companies

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

Crypto Moves #54 – While Everyone Looks at Donald Trump, No One Considers the EU’s MiCA

By Mads Eberhardt

President-elect Donald Trump has become a prominent figure with the cryptocurrency market, primarily because of his ambitious vision to transform the United States into the “crypto capital of the planet.” This outlook is undoubtedly positive, as the United States holds the title of the largest capital market globally and wields significant influence on the international stage.
However, many in the crypto market appear to overlook another highly encouraging regulatory development.
This involves the European Union’s comprehensive Markets in Crypto-Assets (MiCA) regulatory framework, which will be fully implemented across EU member states on December 30th.

Portland General Electric’s The $250M Transmission Projects: The Bold Step Toward a Renewable Future! – Major Drivers

Portland General Electric Company (PGE) delivered strong third-quarter 2024 financial performance, reflecting its operational efficiency and strategic initiatives.
The company reported a GAAP net income of $94 million, or $0.90 per diluted share, doubling from $47 million, or $0.46 per share, in the same period last year.
This significant improvement was primarily driven by lower power costs, increased demand from industrial customers, and the strategic acquisition of renewable resources.

Entergy Corporation: Its Focus on Clean Energy & Electrification & Other Major Drivers

Entergy Corporation’s recent earnings report highlighted both positive strides and certain challenges faced by the company in the third quarter of 2024.
The company announced an earnings per share (EPS) of $2.99, and raised their guidance range by $0.10, reflecting a strengthened financial performance despite being slightly lower than last year’s results due to last year’s exceptionally high weather-related earnings.
They also increased their long term outlook due to a greater capital investment plan driven by growing industrial sales and a surge in clean energy product interest.

Public Service Enterprise Group: An Analysis Of Its Data Center Integration

Public Service Enterprise Group (PSEG) reported its third quarter 2024 financial results, highlighting key developments and regulatory activities.
The company posted net income of $1.04 per share for Q3 2024, compared to $0.27 per share in Q3 2023.
For the first nine months of 2024, net income reached $2.97 per share versus $4.03 per share for the same period in 2023.

ONE Gas’s Regulatory Triumphs: How Timely Approvals Are Boosting Growth in 2025 and Beyond! – Major Drivers

ONE Gas has reported its financial performance for the third quarter of 2024, achieving results that align with the company’s expectations.
This performance is largely due to consistent operational execution and favorable regulatory outcomes.
ONE Gas has cautiously updated its earnings guidance, now anticipating earnings per share (EPS) to range between $3.85 to $3.95, slightly higher than previous forecasts.

OGE Energy Corp.: Is Its Strong Load Growth Across Sectors Here To Stay? – Major Drivers

OGE Energy Corp reported its third-quarter 2024 financial results, revealing consolidated earnings of $1.09 per share, fueled by robust energy demand across all sectors and a significant rise in customer growth, which surpassed historical averages.
The electric company recorded earnings of $1.12 per share, while the holding company posted a loss of $0.03.
The company’s operational excellence and enhanced digital services to customers played a crucial role in these outcomes.

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Nov 30

Daily Brief China: China Boqi Environmental Hol, Baidu, Agora Inc., Shui On Land, SGX Rubber Future TSR20 and more

By Smartkarma Daily Briefs | China, Daily Briefs

In today’s briefing:

Boqi Env (2377 HK)’s Partial Offer Now Open. But First The EGM
[Baidu, Inc. (BIDU US, SELL, TP US$78) TP Change]: C3Q24 Review: No Respite in Going Ex-Growth
Agora (API US): Rationalizing All Biz and Zero in on OpenAI
Lucror Analytics – Morning Views Asia
Helixtap China Report: Declining Inventory Could Help Revive Demand

Boqi Env (2377 HK)’s Partial Offer Now Open. But First The EGM

By David Blennerhassett

On the 23rd October, flue gas treatment play China Boqi Environmental Hol (2377 HK) announced a buyback of 15% of shares out, at HK$1.20/share, a 16.5% premium to undisturbed.
The buyback lifts the stake of co-founder Zeng Zhijun and concert parties to 32.59% – up from 27.71% – before options. To avoid an MGO, this requires a whitewash waiver
The Offer Doc is now out. The EGM – and the first close – is the 20th December.

[Baidu, Inc. (BIDU US, SELL, TP US$78) TP Change]: C3Q24 Review: No Respite in Going Ex-Growth

By Ying Pan

BIDU reported C3Q24 top line, non-GAAP operating profit and GAAP net income in-line, 4.6% and 66% vs. our estimate and in-line, 8.7% and 46% vs. consensus.
Ads revenue declined and C4Q24 guidance was below expectations. Margin improvement was mainly achieved through personnel cuts, which we think is not sustainable. AI didn’t contribute materially to revenues;
We see no return to growth from any of the business lines. We keep our SELL rating and cut the TP from US$84 to US$78.

Agora (API US): Rationalizing All Biz and Zero in on OpenAI

By Andy Fu, CFA

Agora share price rallied 34% on C3Q24 earning call. During the call Agora outlined plans for large scale layoffs and committed to turn profitable for full year 2025;
With the business rationalization, cooperation with OpenAI now becomes the only growth driver for the future. We believe with Agora’s operation-oriented business model, there is a fair chance for success;
Considering the price cut speed of 10x in one year from Chat GPT, the audio GAI price lower from US$9/hour to US$1/hour could happen within one year.

Lucror Analytics – Morning Views Asia

By Leonard Law, CFA

In today’s Morning Views publication we comment on developments of the following high yield issuers: Shui On Land
The US market was closed for Thanksgiving yesterday.
The Biden administration is weighing additional curbs on the sale of semiconductor and AI memory chips to China, reported Bloomberg on Wednesday.

Helixtap China Report: Declining Inventory Could Help Revive Demand

By Arusha Das

Inventory lowest in 13th months
Arbitrage widens for African and Indonesian rubber
Frontloading resulted in spike in exports

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Nov 30

Daily Brief Japan: WealthNavi, Dai Nippon Printing, Ana Holdings, Raccoon Holdings, Inc., Restar Holdings Corporation, Toyobo Co Ltd, D.Western Therapeutics Institute Inc. and more

By Smartkarma Daily Briefs | Daily Briefs, Japan

In today’s briefing:

Nikkei: MUFG To Launch TOB on WealthNavi (7342)
Dai-Nippon Printing (7912) – The First Equity Offering by Cross-Holders – Small And Lots More To Go
Dai Nippon Placement – Share Buyback Should Aid Deal Performance
Quiddity JPX-Nikkei 400 Rebal 2025: End-Nov 2024 Ranks
Raccoon Holdings, Inc. (3031 JP): 1H FY04/25 flash update
Restar (3156) – Market Challenges but Maintaining Growth Direction
Toyobo (3101) – Signs of Recovery in Profitability on the Back of Improving Operating Environment
D. Western Therapeutics Institute (DWTI) (4576 JP) – Q3 Follow-Up

Nikkei: MUFG To Launch TOB on WealthNavi (7342)

Early this morning, a Nikkei article said Mitsubishi UFJ Financial (MUFG) (8306 JP) would buy out the remaining 85% of WealthNavi (7342 JP). Expected to be completed by March.
MUFJ Bank and WealthNavi signed a Business Alliance in February. WealthNavi issued 9.11mm new shares to MUFJ at ¥1,718/share. That was a discount to market and shares are down ~40%.
WealthNavi’s AUM is growing (¥1.3trln at end-Oct) and the goal is to launch a money advisory platform by FY2026. Now they need to decide on the premium.

Dai-Nippon Printing (7912) – The First Equity Offering by Cross-Holders – Small And Lots More To Go