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Smartkarma Daily Briefs

Sep 25
0

Daily Brief TMT/Internet: Samsung Electronics, Kioxia Holdings , Taiwan Semiconductor (TSMC), Silverlake Axis , Via Technologies, yutori , Enfusion, Compal Electronics, Boku Inc, Genpact Ltd and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Korea Exchange Announces The Korea Value Up Index
  • Tech: Japan’s Biggest IPO in 6 Years, Kioxia, Is Off. Here Is the Likely Reason
  • TSMC:  Caution as GEM Funds Switch to Underweight
  • Silverlake Axis (SILV SP): Circular Now Out. IFA Says Fair
  • Via Technologies GDR Offering – US$212m GDR Offering Will Be Easily Digested
  • Yutori Expands Through M&A Too
  • Is Enfusion About to Be Snapped Up? Here’s Why Acquirers Could Be Lining Up!
  • Tech Supply Chain Tracker (25-Sep-2024): Lenovo invests US$1 billion in AI over 3 years.
  • Boku – H124 revenue growth supports FY24 outlook
  • Genpact Limited: Initiation Of Coverage – These Are The 4 Biggest Factors Driving Its Performance In 2025 & Beyond! – Financial Forecasts

Korea Exchange Announces The Korea Value Up Index

By Douglas Kim

  • Korea Exchange announced the long awaited Korea Value Up Index (“K Value Up Index”) (composed of 100 stocks) today. 
  • Korea Exchange used a 5-step screening process to select the 100 companies in this index including market cap, profitability, shareholder returns, market evaluation, and capital efficiency. 
  • This Value Up index is part of the bigger “Corporate Value Up ” program in Korea. These efforts to improve Korea’s corporate governance policies is a marathon, not a sprint. 

Tech: Japan’s Biggest IPO in 6 Years, Kioxia, Is Off. Here Is the Likely Reason

By Neil Campling

  • Significant peer price performance declines leaves IPO valuation stretched, the desired discount multiple to attract interest has suddenly become a premium
  • Investor interest in memory semiconductors, AI derivative stocks has cooled
  • Peer price sell-offs are extreme but could quickly change, reflecting the highly cyclical nature of the sector

TSMC:  Caution as GEM Funds Switch to Underweight

By Steven Holden

  • Average EM fund weights and active fund ownership hits record highs in TSMC
  • However, investor caution is starting to surface, with 13.4% of funds shifting to underweight  in the last six months, driving the net underweight to a 15-year low of -1.21%.
  • Net outflows of $3 billion over the past six months, led by Invesco, JP Morgan, and MFS, and with four times more sellers than buyers.

Silverlake Axis (SILV SP): Circular Now Out. IFA Says Fair

By David Blennerhassett

  • On the 26 August, Goh Peng Ooi, founder and executive chair, made a voluntary unconditional general Offer for the 25.9% in Silverlake Axis (SILV SP) not held.
  • The Offer Doc for this S$0.36/share cash Offer was dispatched on the 26th August.  The Circular is also now out, which incorporates the IFA opinion.
  • Trading through terms. The first close is the 7th October. I don’t expect a bump, and the share price gradually retraces back to cash terms.

Via Technologies GDR Offering – US$212m GDR Offering Will Be Easily Digested

By Clarence Chu

  • Via Technologies (2388 TT) is looking to raise US$212m in its global depository receipts (GDRs) offering. Proceeds will be used to purchase overseas raw materials, and to replenish working capital.
  • Similar to previous GDR listings, the deal has had a long drawn out approval process. Thus, the deal is a very well flagged one.
  • The deal is a relatively small one to digest at 5.8 days of the stock’s three month ADV.

Yutori Expands Through M&A Too

By Michael Causton

  • Zozo-Owned Yutori has just acquired a womenswear brand and plans a series of acquisitions, with ambitions to become the Zozo of the younger generation.
  • So far, it has grown very fast on the back of strong support from Japan’s youth looking for street fashion but this latest move will reach into new segments.
  • Unlike Zozo, Yutori is investing in a chain of stores which have helped push awareness and sales and is the right strategy for Japan’s store-addicted consumers.

Is Enfusion About to Be Snapped Up? Here’s Why Acquirers Could Be Lining Up!

By Baptista Research

  • Enfusion reported its second quarter 2024 earnings with results aligning closely with the company’s prior guidance and consistent performance expectations in the medium term.
  • The company posted $49.5 million in revenue, marking a 16% year-over-year growth.
  • The adjusted EBITDA came in at $10.1 million, translating to a 20.5% margin.

Tech Supply Chain Tracker (25-Sep-2024): Lenovo invests US$1 billion in AI over 3 years.

By Tech Supply Chain Tracker

  • Lenovo commits $1B to AI advancements, strengthens F1 collaboration, showcasing innovation in technology sector.
  • Garmin experiences growth in SEA sales for smart wearables, indicating a maturing market and strong consumer demand.
  • Taiwan’s Transcom gains from global surge in military spending, develops world’s first open-source 6G core network, while Stellantis partners Maserati with China’s Chery amidst struggles in German automotive industry.

Boku – H124 revenue growth supports FY24 outlook

By Edison Investment Research

Boku reported 24% y-o-y revenue growth in H124, with both digital wallet/account-to-account (A2A) payments and direct carrier billing (DCB) payments growing at double-digit rates. Adjusted EBITDA grew 18% y-o-y with a margin of 30.1%. With ambitions to become the best localised payment partner for global commerce, Boku continues to invest in enhancing its product portfolio and strengthening its compliance and treasury functions. A pipeline of new digital wallet/A2A launches for major merchants and seasonal factors support continued strong growth in H224 and 2025. With FY24 outlook maintained, our revenue and adjusted EBITDA forecasts are unchanged.

Genpact Limited: Initiation Of Coverage – These Are The 4 Biggest Factors Driving Its Performance In 2025 & Beyond! – Financial Forecasts

By Baptista Research

  • Genpact Limited’s Q2 2024 earnings report and conference call, led by CEO BK Kalra and CFO Michael Weiner, offered insights into the company’s performance and strategy, presenting a mixed outlook with both notable strengths and areas for improvement.
  • Genpact reported Q2 revenue of $1.18 billion, reflecting a 6% year-over-year increase, surpassing their guidance.
  • This growth was driven by strong performance across Data-Tech-AI and digital operations.

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Sep 25
0

Daily Brief Consumer: Xingda International, MINISO Group Holding , Crocs Inc, Samvardhana Motherson Automotive Systems Group BV, Guess? Inc, Meituan and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Xingda (1899 HK): No Premium Voluntary Conditional Offer to Ward off a Hostile Holder
  • Xingda (1899 HK)’s HK$1.30/Share Offer – Say What?
  • MINISO Bets Big on Yonghui. Should Investors Be Concerned About the Acquisition?
  • Choice Equities’ Mitchell Scott provides update on $CROX thesis and thoughts on Magnite $MGNI
  • Morning Views Asia: Samvardhana Motherson International Ltd, Wynn Macau Ltd, Yankuang Energy Group
  • GES: Snapping the Store – London – Fall Elevation Rising; Reiterate Buy, $29 PT
  • Morning Views Asia: Meituan

Xingda (1899 HK): No Premium Voluntary Conditional Offer to Ward off a Hostile Holder

By Arun George

  • Xingda International (1899 HK) has disclosed a voluntary conditional offer from Mr Liu Jinlan (Chairman) at HK$1.30 per share, which aligns with the last close price. 
  • The offer is conditional on the offeror and concert parties representing more than 50% of voting rights. The offeror and concert parties represent 37.03% of voting rights.  
  • The offer is a reaction to Mr Zhao Yue’s “hostile” emergence as a substantial shareholder. It is unattractive and will require a bump to satisfy the minimum acceptance condition.   

Xingda (1899 HK)’s HK$1.30/Share Offer – Say What?

By David Blennerhassett

  • After tyre component manufacturer Xingda International (1899 HK) was suspended recently pursuant to the Takeovers Code, an Offer seemed more likely, not another Partial Offer. 
  • On cue, Liu Jinlan, chairman and executive director, plus concert parties (collectively holding 37.03%), have tabled a voluntary conditional Offer (50% acceptance hurdle). But the price? A surprising zero-premium HK$1.30/share
  • However, this Offer is a pre-emptive strike against former employee Yue Zhao, who holds 9.24%; and was recently appointed ED and vice-chairman of Shougang Concord (103 HK), Xingda’s major competitor.

MINISO Bets Big on Yonghui. Should Investors Be Concerned About the Acquisition?

By Devi Subhakesan

  • MINISO‘s  acquisition of a 29.4% stake in the loss-making supermarket chain Yonghui  for USD 890 million has been viewed negatively by investors, leading to a sharp decline in Miniso’s stock.
  • The deal’s size, combined with Yonghui Superstores (601933 CH) unprofitable track record and   MINISO(9896 HK) ‘s unexpected move into the low-margin, highly competitive supermarket space, has likely fueled investor concerns.
  • However, we believe the acquisition provides Miniso with a strategic opportunity for growth and diversification to a sector that remains vital in the offline retail landscape at undemanding valuations.  

Choice Equities’ Mitchell Scott provides update on $CROX thesis and thoughts on Magnite $MGNI

By Yet Another Value Podcast

  • Mitchell discusses the success and potential of Crocs, noting its growth and potential for continued success
  • Andrew asks if Crocs is a fad or a sustainable business, with Mitchell emphasizing the brand’s importance and continued innovation
  • Mitchell highlights Crocs’ success during the pandemic and discusses potential growth strategies for the future, including the importance of jibbets.

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

Morning Views Asia: Samvardhana Motherson International Ltd, Wynn Macau Ltd, Yankuang Energy Group

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.

GES: Snapping the Store – London – Fall Elevation Rising; Reiterate Buy, $29 PT

By Small Cap Consumer Research

  • We are reiterating our Buy rating, $29 price target and projections after reviewing Guess?
  • stores in London.
  • As we near the peak Fall season, Guess?

Morning Views Asia: Meituan

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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Sep 25
0

Daily Brief Financials: Woori Financial Group , K Bank, Korea Stock Exchange KOSPI 200, Ethereum and more

By | Daily Briefs, Financials

In today’s briefing:

  • All the Scoop on the Korea Value-Up Index
  • New Fast Entry Rule for KOSPI 200 & KOSDAQ 150: Post-IPO Price Swings Ramping Up
  • K Bank IPO: Valuation Insights
  • EQD | A Very Weak KOSPI 200 Is Ready to Pull Back Again
  • Crypto Crisp: The Final Liquidity Crunch, Then Up Only

All the Scoop on the Korea Value-Up Index

By Sanghyun Park

  • The index focuses on qualitative factors like capital efficiency and shareholder returns, but efforts to impose sector balance may have overextended its market benchmark role.
  • Some companies not fitting the ‘value-up’ narrative got included, while market favorites were sidelined by sector rankings, which is puzzling given the index’s original goal.
  • Still, with rebalancing cut down to once a year, we should expect the flow impact on the index names to hit harder than initially thought compared to their sector peers.

New Fast Entry Rule for KOSPI 200 & KOSDAQ 150: Post-IPO Price Swings Ramping Up

By Sanghyun Park

  • Besides ranking in the top 50 by market cap, it must also meet a minimum float-adjusted cap for K200 fast entry: at least 50% of the 50th-ranked stock’s market cap.
  • Even if new stocks meet KRX’s float cap, their actual float share volume may still be low, risking inflation from local pension funds’ preemptive passive inflows post-listing.
  • This could reduce predictability for KOSPI 200 fast entry, increasing price swings post-listing and forcing traders to develop new volatility strategies after IPOs.

K Bank IPO: Valuation Insights

By Arun George

  • K Bank (279570 KS) is a Korean internet bank. It has launched an IPO to raise up to US$734 million.
  • We previously discussed the IPO in K Bank IPO: The Bear Case and K Bank IPO: The Bull Case.
  • We examine the syndicate’s valuation methodology. Our analysis suggests that K Bank is unattractively valued in the IPO price range. We would pass on the IPO.

EQD | A Very Weak KOSPI 200 Is Ready to Pull Back Again

By Nico Rosti

  • The last 2 weeks have been painful for investors that were LONG the KOSPI 200 INDEX, and this week is not very promising either.
  • The index has advanced less than 3% since its last WEEKLY negative Close on September 6th.
  • The index is in its 3rd consecutive week up (to be confirmed this Friday at the Close) but the current pattern usually ends on the third week up and reverses.

Crypto Crisp: The Final Liquidity Crunch, Then Up Only

By Mads Eberhardt

  • Following the U.S. Federal Reserve’s decision last Wednesday to lower the dollar interest rate by 50 basis points, the crypto market has responded positively.
  • Bitcoin has climbed 5.56%, while Ethereum has surged 15.25%.
  • The market conditions are increasingly aligning for a major upward move.

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Sep 25
0

Daily Brief Industrials: Shanghai Shenzhen CSI 300 Inde, Tokyo Metro, Watts Water Technologies A, Aaon Inc, Avis Budget Group, API Group , Applied Industrial Tech and more

By | Daily Briefs, Industrials

In today’s briefing:

  • China’s [Maybe] Biggish [Quasi?] Bazooka
  • Tokyo Metro IPO – The Positives – Quasi-Monopoly Status
  • Watts Water Technologies: Initiation Of Coverage – These Are The 4 Biggest Challenges In Its Path! – Major Drivers
  • AAON Inc.: Initiation Of Coverage – A Tale Of Refrigerant Transition and Product Evolution! – Major Drivers
  • Avis Budget Group: Initiation Of Coverage – Why Its Pricing Strategies and Market Adaptation Strategies Make Us Bullish? – Major Drivers
  • APi Group Corporation: Initiation Of Coverage – Increasing Project Margins through Enhanced Customer and Project Selection & Other Major Drivers
  • Applied Industrial Technologies: Initiation Of Coverage – Expansion of Engineered Solutions & Major Drivers

China’s [Maybe] Biggish [Quasi?] Bazooka

By Travis Lundy

  • Today, in a press conference held jointly by the Governor of the PBOC, the Director of the Financial Regulatory Bureau, and Chairman of the CSRC, China announced market stimulus measures.
  • The PBOC will cut RRR 50bp, the 7-day repo rate 20bp, guide effective mortgage rate cuts, and lower minimum down payments on second homes. There are other commercial RE measures.
  • Three major stock market measures were announced. A RMB500bn collateral swap programme, PBOC backing RMB300bn bank loans for corps to buy stocks, and a Plan to increase Central Huijin investments.

Tokyo Metro IPO – The Positives – Quasi-Monopoly Status

By Sumeet Singh

  • Tokyo Metro (9023 JP)‘s  shareholders aim to raise up to US$2.3bn in its upcoming Japan IPO. 
  • Tokyo Metro (TKM) is one of the two metro network operators in the Tokyo region. It operates nine subway lines with a total of 180 stations.
  • In this note, we talk about the positive aspects of the deal.

Watts Water Technologies: Initiation Of Coverage – These Are The 4 Biggest Challenges In Its Path! – Major Drivers

By Baptista Research

  • Watts Water Technologies, Inc. delivered a strong-second quarter performance for 2024, with record sales, adjusted operating income, and earnings per share.
  • The results were boosted by better-than-expected organic sales in the Americas and APMEA regions, although partly offset by weaker sales in Europe.
  • The company’s ability to manage inventory and productivity effectively contributed to the positive financial results.

AAON Inc.: Initiation Of Coverage – A Tale Of Refrigerant Transition and Product Evolution! – Major Drivers

By Baptista Research

  • AAON, Inc. achieved significant financial and operational milestones in the second quarter of 2024, demonstrating a robust performance despite a challenging macroeconomic environment.
  • The company’s production issues from the previous quarter were largely addressed, allowing for increased volume output and productivity throughout its segments, leading to record sales, earnings, and backlog.
  • 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.

Avis Budget Group: Initiation Of Coverage – Why Its Pricing Strategies and Market Adaptation Strategies Make Us Bullish? – Major Drivers

By Baptista Research

  • Avis Budget Group reported its earnings for the second quarter of 2024, revealing mixed results that draw attention to the company’s ongoing strategy and challenges in the evolving rental car market.
  • The firm reported quarterly revenue surpassing $3 billion and adjusted EBITDA of $214 million.
  • These figures come amidst various strategic maneuvers intended to optimize fleet efficiency and profitability.

APi Group Corporation: Initiation Of Coverage – Increasing Project Margins through Enhanced Customer and Project Selection & Other Major Drivers

By Baptista Research

  • APi Group Corporation recently reported its second quarter 2024 earnings, encompassing various operational and financial aspects.
  • Distinctly evident from the discourse were the efforts and strategic path embarked upon by the company, marked by their pursuit of a recurring revenue model, margin improvement initiatives, and disciplined M&A activities.
  • Throughout the discourse, company leadership provided detailed insights into operational dynamics, financial results, strategic initiatives, and future prospects.

Applied Industrial Technologies: Initiation Of Coverage – Expansion of Engineered Solutions & Major Drivers

By Baptista Research

  • Applied Industrial Technologies ended its fiscal year 2024 with strong financial and operational results, despite facing a challenging and uncertain market.
  • The company’s focus on executing strategic initiatives and maintaining strong customer relationships played a key role in these achievements.
  • This assessment provides an objective overview of the company’s latest quarterly performance, touching on both positive developments and areas that require attention.

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Sep 25
0

Daily Brief Health Care: Capitol Health, Green Cross, Upstream Bio, Ainos , Medicus Pharma , Sichuan Kelun Pharmaceutical, Essa Pharma , Basilea Pharmaceutica Ag, Aethlon Medical and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Capitol Health (CAJ AU): ACCC Overhang as Scheme Meeting Set for 31 October
  • Green Cross (006280 KS): Alyglo Is Accelerating U.S. Market Entry; Base Business Shows Strength
  • Upstream Bio IPO Preview: Severe Asthma/CRSwNP Program Advancing
  • Ainos, Inc. – Veldona Sjogren’s Study Start to Quickly Follow Oral Warts
  • Medicus Pharma Ltd. – Medicus Pharma Randomizes First Patient in SKNJCT-003 Phase 2 Clinical Trial
  • Sichuan Kelun Pharmaceutical (002422.CH) – The Real Breakthrough Point in Valuation Is ADC Pipeline
  • EPIX: Masofaniten Combination Therapy with Enzalutamide Increases rPFS Increasing Valuation to 33 per Share
  • AEMD has three sites in Australia that are moving towards near-term patient enrollment.
  • Basilea Pharmaceutica – BARDA backs Basilea’s anti-infectives programme
  • AEMD has three sites in Australia that are moving towards near-term patient enrollment.

Capitol Health (CAJ AU): ACCC Overhang as Scheme Meeting Set for 31 October

By Arun George

  • The Capitol Health (CAJ AU) IE considers Integral Diagnostics (IDX AU)’s merger proposal (0.12849 Integral shares per Capitol share) fair and reasonable. 
  • While ACCC informal clearance is an overhang, the evidence suggests that clearance should be secured. The shareholder vote risk is low.
  • The offer terms are attractive. At the last close and for the 14 November payment, the gross/annualised spread is 4.7%/37.3%.  

Green Cross (006280 KS): Alyglo Is Accelerating U.S. Market Entry; Base Business Shows Strength

By Tina Banerjee

  • Green Cross (006280 KS) has gained access to 80% of privately insured members in the U.S. for blood product Alyglo, which has been included in formularies of three major insurers.
  • Green Cross targets to generate $50M revenue from Alyglo this year. The target seems to be conservative. The company further aims to sustain annual growth of 50%+, which is achievable.
  • The company reported sequential improvement in 2Q24, with 17% QoQ revenue growth and significant improvement in gross margin. Revenue growth of 7–8% is expected during 2024–2026.

Upstream Bio IPO Preview: Severe Asthma/CRSwNP Program Advancing

By Andrei Zakharov

  • Upstream Bio, a clinical-stage biotech company developing novel therapies for inflammatory and allergic diseases, filed for an IPO in the United States.
  • The biotech firm was backed by premier investors, including OrbiMed, Access Industries, Maruho Co., Samsara BioCapital, Omega Funds, and Enavate Sciences, among others.
  • I believe that company’s lead compound, verekitug (UPB-101), has a broader commercial opportunity than many investors appreciate.

Ainos, Inc. – Veldona Sjogren’s Study Start to Quickly Follow Oral Warts

By Water Tower Research

  • Taiwan Veldona human study to start in Sjogren’s.
  • Ainos will initiate a Veldona clinical study in Taiwan for primary Sjogren’s syndrome in December 2024.
  • This follows the announcement of an oral warts in HIV+ clinical study planned for November 2024. 

Medicus Pharma Ltd. – Medicus Pharma Randomizes First Patient in SKNJCT-003 Phase 2 Clinical Trial

By Zacks Small Cap Research

  • Medicus Pharma Ltd. (TSXV:MDCX) is focused on acquiring or partnering with life-science companies that are developing novel therapeutics for unmet healthcare needs that are already in the clinical trial stage.
  • Management plans fast-track these specific therapies through FDA clinical trials toward commercialization.
  • The company’s first acquisition was SkinJect, which has a novel, patented transdermal patch for the treatment of BCC.

Sichuan Kelun Pharmaceutical (002422.CH) – The Real Breakthrough Point in Valuation Is ADC Pipeline

By Xinyao (Criss) Wang

  • The imagination brought to the market by Kelun’s traditional businesses (infusion business, antibiotics and bulk pharmaceutical chemicals, generic drugs) is not high. So, the only highlight is Kelun-bio’s ADC pipeline.
  • Considering that Kelun has lost pricing power due to VBP, and both Chuanning and Kelun bio have been spun off and listed independently, Kelun’s valuation will not be too high.
  • Our forecast is net profit attributable to shareholders in 2024-2026 is in the range of RMB3-5 billion. Reasonable market value is RMB30-50 billion. Subsidiary Kelun Bio is a better bet.

EPIX: Masofaniten Combination Therapy with Enzalutamide Increases rPFS Increasing Valuation to 33 per Share

By Zacks Small Cap Research

  • On September 13, 2024, ESSA Pharma Inc. (EPIX) announced that updated dose escalation data for the ongoing Phase 1/2 clinical trial of masofaniten (EPI-7386) in combination with enzalutamide (Enz) was presented at the 2024 European Society for Medicinal Oncology (ESMO) Congress.
  • With 15.2 months of follow up, neither the median radiographic progression free survival (rPFS) or time to PSA progression (TTPP) have been reached.
  • Additionally, since the last trial update at ASCO-GU, one more patient has achieved PSA90, bringing the total to 14/16 (88%).

AEMD has three sites in Australia that are moving towards near-term patient enrollment.

By Zacks Small Cap Research

  • AEMD has three sites in Australia that are moving towards near-term patient enrollment.
  • In Australia, Royal Adelaide is ready for enrollment and Kinara is expected to be open for enrollment shortly.
  • A third site in Sydney has submitted a request to be added to the study.

Basilea Pharmaceutica – BARDA backs Basilea’s anti-infectives programme

By Edison Investment Research

Basilea has bagged a multi-year agreement with the Biomedical Advanced Research and Development Authority (BARDA), potentially worth US$268m, to advance its anti-infectives franchise. The Other Transaction Agreement (OTA) will include an initial payment of US$29m to support clinical development work for fosmanogepix and BAL2062 as they prepare to enter the next phase of clinical development. The agreement will last up to 12 years and management expects it to cover 60% of its development costs related to the covered programmes over the period. These expected inflows have triggered another guidance upgrade for FY24 (revenue of CHF203m, from CHF196m previously) with a significant uptick in the bottom line on increased deferred taxes (net profit guided to be CHF60m vs CHF42m previously). We have adjusted our estimates to reflect the potential non-dilutive funding from BARDA, with our valuation increasing to CHF95.3/share, from CHF89.7/share previously.

AEMD has three sites in Australia that are moving towards near-term patient enrollment.

By Zacks Small Cap Research

  • AEMD has three sites in Australia that are moving towards near-term patient enrollment.
  • In Australia, Royal Adelaide is ready for enrollment and Kinara is expected to be open for enrollment shortly.
  • A third site in Sydney has submitted a request to be added to the study.

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Sep 24
0

Daily Brief ESG: How to Make a Non-Functioning Statutory Auditor Function and more

By | Daily Briefs, ESG

In today’s briefing:

  • How to Make a Non-Functioning Statutory Auditor Function

How to Make a Non-Functioning Statutory Auditor Function

By Aki Matsumoto

  • Information asymmetries between shareholders/investors and board directors, between inside and outside board directors, between inside and outside statutory auditors, and between insiders and the rest are constant challenges.
  • Statutory auditors cannot be dismissed and have significant powers, including the right to investigate, and since statutory auditors are board members, they can attend and speak at board meetings.
  • To make statutory auditors function, establish a process for nominating statutory auditors, raise the compensation of outside auditors, and run an open board meeting where board members’ comments are respected.

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Sep 24
0

Daily Brief Thematic (Sector/Industry): Jerry Derevyanny: Frameworks for Cannabis Investing – [Making Markets and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • Jerry Derevyanny: Frameworks for Cannabis Investing – [Making Markets, EP.44]
  • Investing Alongside Beji Sasaki: Japan’s Unconventional Corporate Raider and Value Investor
  • Ohayo Japan | U.S. Stocks Hit Fresh Highs
  • Japan Morning Connection: Watch Defence Names After Russian Violation
  • How To Invest In AI vs Tech In A Portfolio
  • # 61 India Insight: HDFC Loan Sale over $1bn, Reliance FMCG Expansion, SJVN Generated 8.4 GW
  • Big Tech Faces Record Fines, Antitrust Scrutiny, and Major Revenue Threats [Regulations Part 4]

Jerry Derevyanny: Frameworks for Cannabis Investing – [Making Markets, EP.44]

By Web3 Breakdowns

  • Jerry Derviani, partner at Bengal Capital, discusses investing in the regulated cannabis industry since 2014
  • Focus on unit economics and value creation in cannabis companies like Grown Rogue
  • Opportunities for growth and success in expanding cannabis markets, such as New Jersey

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

Investing Alongside Beji Sasaki: Japan’s Unconventional Corporate Raider and Value Investor

By Altay Capital

  • Beji Sasaki is an unusual investor. He made a name for himself during the bubble economy of the 80s/90s as the ‘takeover man’ and despite not getting too much attention lately, he’s still active in the markets.
  • He takes stakes in public companies and aims to improve profitability and wrest control.
  • He’s an aggressive corporate raider looking to take control of public companies and maximize profits, a concept that’s anathema in Japan.

Ohayo Japan | U.S. Stocks Hit Fresh Highs

By Mark Chadwick

  • U.S. stocks closed higher on Monday, with the S&P 500 rising 0.3% to a new record high of 5,719
  • Tesla (+5%) shares rose after Wall Street issued a bullish delivery forecast ahead of its October robotaxi even
  • Six of Japan’s seven major automakers are set to break records in capital expenditures and R&D spending this fiscal year

Japan Morning Connection: Watch Defence Names After Russian Violation

By Andrew Jackson

  • Japan set to tick higher with more cuts on the horizon and markets mostly unchanged after yesterdays holiday.
  • 6758 Sony announced a ‘State of Play’ where it will showcase 20 upcoming PS5 and PS VR2 games from 3rd party studios a day ahead of the Tokyo Games Show.
  • Defence names may be in focus after Japan fighters fired flares at a Russian military plane which violated Japanese airspace three times off Hokkaido on Monday afternoon.

How To Invest In AI vs Tech In A Portfolio

By The Bid

  • AI is being recognized as a megaforce with trillions of dollars of impact on the global economy and broad implications across various sectors
  • Investors are increasingly interested in the AI theme and its potential impact on portfolios, with a focus on what’s next in AI development
  • The AI theme is still in its early stages, with advancements in technology, data growth, and computing power expected to drive exponential growth and value in AI over the next decade.

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

# 61 India Insight: HDFC Loan Sale over $1bn, Reliance FMCG Expansion, SJVN Generated 8.4 GW

By Sudarshan Bhandari

  • HDFC Bank is set to close a loan sale worth over $1 billion by September 2024
  • Reliance Consumer Products Ltd. (RCPL) plans a nationwide FMCG expansion, extending its in-house brands
  • SJVN generated 8,489 million units of green energy in FY24, despite hydrological challenges

Big Tech Faces Record Fines, Antitrust Scrutiny, and Major Revenue Threats [Regulations Part 4]

By Uttkarsh Kohli

  • Meta faces $1.4 billion Texas biometric lawsuit settlement and a €1.2 billion GDPR fine for data transfers, alongside an FTC antitrust challenge targeting Instagram and WhatsApp acquisitions.
  • Apple’s $26 billion annual deal with Google is under DOJ investigation for antitrust violations, while its App Store commission model faces increasing scrutiny, threatening a key revenue source.
  • Google, holding 90% of the search market, is battling DOJ lawsuits targeting its advertising dominance, risking forced divestitures that could severely impact its $224 billion annual ad revenue.

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Sep 24
0

Daily Brief ECM: Tokyo Metro (9023 JP) IPO: The Bull Case and more

By | Daily Briefs, ECM

In today’s briefing:

  • Tokyo Metro (9023 JP) IPO: The Bull Case
  • Sino-American Silicon GDR Offering – Relatively Large One to Digest, Although Discount Is Attractive
  • K Bank IPO – Peer Comparison – Lags Its Main Peer on Most Fronts

Tokyo Metro (9023 JP) IPO: The Bull Case

By Arun George

  • Tokyo Metro (TKYMETRO JP), a mass transit operator, is seeking to raise up to US$2.3 billion. Pricing is on 15 October, and the listing is on 23 October.   
  • Tokyo Metro is held 53.42% by the Minister of Finance and 46.58% by the Tokyo Metropolitan Government. 
  • The bull case rests on a core high-quality asset, future growth drivers, top-quartile profitability, high FCF generation, and peer-leading dividend payout. 

Sino-American Silicon GDR Offering – Relatively Large One to Digest, Although Discount Is Attractive

By Clarence Chu

  • Sino American Silicon Products (5483 TT) is looking to raise US$287m in its GDRs offering. Proceeds will be used to purchase overseas raw materials, repay bank loans and purchase machinery.
  • Similar to previous GDR listings, the deal has had a long drawn out approval process. Thus, the deal is a very well flagged one.
  • The deal is a relatively large one to digest at 15.7 days of the stock’s three month ADV.

K Bank IPO – Peer Comparison – Lags Its Main Peer on Most Fronts

By Sumeet Singh

  • K Bank (279570 KS) plans to raise up to US$740m in its upcoming South Korean IPO.
  • K Bank is one of three Internet-only banks in Korea. It provides a full range of commercial banking products and services.
  • In our previous note, we have looked at the company’s past performance. In this note, we will undertake a peer comparison.

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Sep 24
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Daily Brief Event-Driven: The Biggish Sep 2024 “Thursday-Friday Trade” and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • The Biggish Sep 2024 “Thursday-Friday Trade”
  • REA’s Improved Terms For Rightmove
  • Why MBK’s Move into Local Hostile Takeover Scene Matters: Focus on SK Inc and Lotte Corp
  • What Are Locals Saying About Potential Allies to Choi Family in Fight for Korea Zinc?
  • NSL Ltd (NSL SP): YTL’s Unconditional Offer
  • REA/Rightmove: Third Proposal Seems Close to Fair Value

The Biggish Sep 2024 “Thursday-Friday Trade”

By Travis Lundy

  • Every year it’s the same trade. This year it is Thursday and Friday. There is some funkiness to Monday too.
  • There is meaningful directional buying on one day, which then kind of gets stretched a bit. This year, circumstances suggest high confidence buying should be at the top end.
  • This year, because circumstances, I expect the trade is a lot larger than last year. I’d say ¥1.6trln. 

REA’s Improved Terms For Rightmove

By David Blennerhassett

  • Rightmove PLC (RMV LN), UK’s largest real estate portal, has twice rejected REA Group Ltd (REA AU) cash/scrip non-binding Offers this month.
  • REA has upped terms to 341 pence + 0.0422 new REA shares per Rightmove share, or 770p/share, a 39% premium. If completed, Rightmove’s shareholders would own ~20.1% of the MergeCo.
  • Thrice rejected? I think Rightmove should engage. REA also has until the 30th September to make a formal Offer. Or walk away.

Why MBK’s Move into Local Hostile Takeover Scene Matters: Focus on SK Inc and Lotte Corp

By Sanghyun Park

  • The new 100% mandatory tender offer rule could push buyers to lower premiums for major shareholders, potentially increasing hostile takeover attempts as costs get shared with minority shareholders.
  • It looks like MBK is eyeing this situation as a chance to redefine their strategy. This really shows how serious MBK is about the Korea Zinc deal.
  • Watch for top-tier assets available via hostile takeovers, particularly companies like SK Inc and Lotte Corp, where low shareholder stakes may lead to management conflicts.

What Are Locals Saying About Potential Allies to Choi Family in Fight for Korea Zinc?

By Douglas Kim

  • In this insight, we discuss three particular allies that could help the Choi family that have been highlighted by the local media including Hanwha, KIS, and Softbank.
  • The Hanwha Group is one of the largest shareholders of Korea Zinc. In addition, Hanwha Group Vice Chairman Kim Dong-Kwan has a close relationship with Korea Zinc Chairman Choi Yoon-Beom.
  • Korea Zinc is planning to hold an important press conference on the 24 September to reveal its position on the tender offer of Korea Zinc shares by MBK.

NSL Ltd (NSL SP): YTL’s Unconditional Offer

By David Blennerhassett

  • Back on the 23rd July, YTL Cement entered into a S&P agreement with 98 Holdings to acquire a 81.24% stake in building material manufacturing/supplier NSL Ltd (NSL SP) at S$0.75/share. 
  • Pre-Conditions are now satisfied, and YTL Cement has launched a mandatory unconditional cash Offer. The Offer price is also S$0.75/share. 
  • Super straightforward deal. And will trade tight to – or through terms. YTL’s intention is to maintain NSL’s listing. 

REA/Rightmove: Third Proposal Seems Close to Fair Value

By Jesus Rodriguez Aguilar

  • The Board of Rightmove PLC (RMV LN) will consider REA Group Ltd (REA AU)‘s third proposal (implied value of 770p/share, 39% premium, 20.4x EV/NTM EBITDA, 28x Fwd P/E).
  • Using 21.3x NTM EBITDA (comps) would indicate fair value of 805p, 4.5% increase to  current offer, implying 29.3x P/E, although proforma leverage would increase to 3.6x.
  • REA has not stated that the offer is final. Rightmove investors and Board may require further persuasion, as the implied probability of deal success is just 58%.

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Sep 24
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Daily Brief Equity Bottom-Up: The Beat Ideas: Globus Spirits- Maize and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • The Beat Ideas: Globus Spirits- Maize, Capex, B2C Play
  • BUY/SELL/HOLD: Hong Kong Stock Updates (September 21)
  • Uniqlo’s European Romance
  • Arras Minerals: Looking for Elephant Sized Gold/Copper Deposits in Kazakhstan
  • Nike CEO Shakeup: Challenges Ahead for Elliott Hill as He Takes the Helm of the Sneaker Giant!
  • Fu Shou Yuan (1448.HK) – The Business Model Has “Flaws”
  • Monthly Chinese Express Tracker | Price Pressures Ease | X-Border Re-Accelerates | (September 2024)
  • Chart Industries Inc.: Initiation Of Coverage – A Solid Competitive Advantage Driving Our ‘Buy’ Rating! – Major Drivers
  • KE (BEKE US): Why Earning Money in Weak Market
  • S&U – Timing is everything

The Beat Ideas: Globus Spirits- Maize, Capex, B2C Play

By Sudarshan Bhandari

  • In Q4FY24, Globus Spirits (GBSL IN) changed its raw material from rice to maize to improve the margin and stability in margins.
  • Globus Spirits (GBSL IN) increased its capacity in Q4 recently 120KLPD, 60 each in Jharkhand and West Bengal.
  • Recently, the government also removed the ban on using FCI grain and sugarcane for Ethanol production.

BUY/SELL/HOLD: Hong Kong Stock Updates (September 21)

By David Mudd

Uniqlo’s European Romance

By Michael Causton

  • Uniqlo’s European arm is on a roll, with more stores, higher sales and a loyal fan base. 35% of customers were under 29 last year up from 16% in 2019.
  • Uniqlo is also doing better at home but it needs the boost from newer markets given concerns over growth in China.
  • And it is far too early to know whether GU’s formal launch in the US will pay off but so far so good.

Arras Minerals: Looking for Elephant Sized Gold/Copper Deposits in Kazakhstan

By Nicolas Van Broekhoven

Nike CEO Shakeup: Challenges Ahead for Elliott Hill as He Takes the Helm of the Sneaker Giant!

By Baptista Research

  • Nike recently announced a significant leadership change, with CEO John Donahoe stepping down and longtime company veteran Elliott Hill set to take over.
  • This transition comes amid a broader restructuring effort at Nike, aimed at addressing the company’s evolving business challenges.
  • Donahoe, who led the company through several years of strategic shifts, including the prioritization of direct-to-consumer sales, had faced increasing pressure due to flat revenue growth and lower-than-expected guidance for fiscal 2025.

Fu Shou Yuan (1448.HK) – The Business Model Has “Flaws”

By Xinyao (Criss) Wang

  • The sharp decline in revenue/profits indicates that Fu Shou Yuan’s business model is not as excellent as previously imagined. The Company’s performance would still be heavily influenced by macro factors.
  • Once Fu Shou Yuan slows down external expansion and explores endogenous growth, it usually doesn’t require too much capital, which means the Company would have greater motivation to distribute dividends.
  • The economic downturn leading to performance headwinds is just short-term logic. In the long run, the logic behind the increasing demand in funeral industry has not changed. Valuation would rebound.

Monthly Chinese Express Tracker | Price Pressures Ease | X-Border Re-Accelerates | (September 2024)

By Daniel Hellberg

  • August parcel volume growth moderated, but easing price pressure matters more
  • In July & August, Chinese X-border parcel volume growth re-accelerated
  • We believe easing price pressure should lead to express margin expansion

Chart Industries Inc.: Initiation Of Coverage – A Solid Competitive Advantage Driving Our ‘Buy’ Rating! – Major Drivers

By Baptista Research

  • Chart Industries, Inc. reported its 2024 second quarter results, showcasing robust financial performance, marked by several all-time highs across various metrics.
  • The company, renowned for its industrial and energy equipment, posted record earnings in sales, operating income, and EBITDA margins, among others, signifying superior operational execution and strategic growth initiatives.
  • 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.

KE (BEKE US): Why Earning Money in Weak Market

By Ming Lu

  • In 2Q24, KE’s revenue grew by 20% YoY despite the weak property market.
  • We believe property developers and personal landlords need KE more than the prosperous time.
  • We believe the stock has an upside of 148% for the end of 2025. Buy.

S&U – Timing is everything

By Edison Investment Research

Interim results, for the six months to 31 July (H125), will be published on 8 October. Ahead of that, S&U has alerted the market that based on the H1 performance, full year PBT is unlikely to meet the previous market consensus expectations. We believe this to be primarily a timing issue, reflecting the continuing impact of the temporary FCA restrictions on collections activity in the motor finance business. Once regulatory clarity has been established, we expect a significant recovery. Meanwhile, as previously reported, the property lending division continues to perform strongly. We have reduced our FY25 PBT estimate by 7% to £27m and will review our FY26 forecasts with the interim results.

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