Category

Daily Briefs

Sep 07
0

Daily Brief Utilities: Talen Energy and more

By | Daily Briefs, Utilities Sector

In today’s briefing:

  • TLN: Powered for Free Cash Flow, PT to $185

TLN: Powered for Free Cash Flow, PT to $185

By Hamed Khorsand

  • TLN held an investor day where its management laid out the free cash flow the Company should generate over the next two years and how it was going to happen.   
  • TLN is projecting adjusted EBITDA that makes our estimate look very conservative.    TLN is forecasting 2025 adjusted EBITDA of $926 million to $1.175 billion. 
  • The expected free cash flow over the next two years is powering TLN to raise their stock buyback program by $1.1 billion.

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

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Sep 07
0

Daily Brief Industrials: Jardine Matheson Holdings, Hero Motors Limited, HEICO Corp and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Jardine Matheson (JM SP): Squeezing More Life Out Of The NAV
  • Hero Motors Pre-IPO Tearsheet
  • HEICO Corporation: Will The Acquisition of Capewell’s Aerial Delivery & Emergency Egress Divisions Be A Game Changer? – Major Drivers

Jardine Matheson (JM SP): Squeezing More Life Out Of The NAV

By David Blennerhassett

  • After publishing my insight (Jardine Matheson (JM SP): Trading “Cheap”) last week, my NAV calcs were called into question by some readers, when compared to street estimates.
  • Which is cool. I’m big enough to admit mistakes, where needed. So I’ve done some digging, including a back and forth with Jardine Matheson Holdings (JM SP).
  • The upshot? I have not lead you astray. You’ve been coming to the right place.

Hero Motors Pre-IPO Tearsheet

By Akshat Shah

  • Hero Motors Limited (2313904Z IN) is looking to raise about US$110m in its upcoming India IPO. The deal will be run by ICICI, DAM Cap and JM Fin.
  • Hero Motors (HML) is an integrated powertrain systems provider offering comprehensive solutions for designing, prototyping, validating, developing, and delivering system-level transmission solutions for electric as well as nonelectric powertrains.
  • According to CRISIL, it was among the first companies in India to capitalize on the global e-bike powertrain opportunity and have a distinct first mover advantage in this industry.

HEICO Corporation: Will The Acquisition of Capewell’s Aerial Delivery & Emergency Egress Divisions Be A Game Changer? – Major Drivers

By Baptista Research

  • HEICO Corporation’s third quarter fiscal 2024 results reveal a robust financial performance, with significant increases in consolidated operating income and net sales that set new records for the company.
  • The earnings call provided a comprehensive analysis of HEICO’s various segments and strategic initiatives, showing a strong trajectory in its core markets, underscored by recent acquisitions and expanded product lines.
  • 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.

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

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Sep 07
0

Daily Brief Industrials: Jardine Matheson Holdings, Hero Motors Limited, HEICO Corp and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Jardine Matheson (JM SP): Squeezing More Life Out Of The NAV
  • Hero Motors Pre-IPO Tearsheet
  • HEICO Corporation: Will The Acquisition of Capewell’s Aerial Delivery & Emergency Egress Divisions Be A Game Changer? – Major Drivers

Jardine Matheson (JM SP): Squeezing More Life Out Of The NAV

By David Blennerhassett

  • After publishing my insight (Jardine Matheson (JM SP): Trading “Cheap”) last week, my NAV calcs were called into question by some readers, when compared to street estimates.
  • Which is cool. I’m big enough to admit mistakes, where needed. So I’ve done some digging, including a back and forth with Jardine Matheson Holdings (JM SP).
  • The upshot? I have not lead you astray. You’ve been coming to the right place.

Hero Motors Pre-IPO Tearsheet

By Akshat Shah

  • Hero Motors Limited (2313904Z IN) is looking to raise about US$110m in its upcoming India IPO. The deal will be run by ICICI, DAM Cap and JM Fin.
  • Hero Motors (HML) is an integrated powertrain systems provider offering comprehensive solutions for designing, prototyping, validating, developing, and delivering system-level transmission solutions for electric as well as nonelectric powertrains.
  • According to CRISIL, it was among the first companies in India to capitalize on the global e-bike powertrain opportunity and have a distinct first mover advantage in this industry.

HEICO Corporation: Will The Acquisition of Capewell’s Aerial Delivery & Emergency Egress Divisions Be A Game Changer? – Major Drivers

By Baptista Research

  • HEICO Corporation’s third quarter fiscal 2024 results reveal a robust financial performance, with significant increases in consolidated operating income and net sales that set new records for the company.
  • The earnings call provided a comprehensive analysis of HEICO’s various segments and strategic initiatives, showing a strong trajectory in its core markets, underscored by recent acquisitions and expanded product lines.
  • 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.

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

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Sep 07
0

Daily Brief Financials: HDFC Bank, Bank Negara Indonesia Persero, EML Payments Limited, Korea Stock Exchange KOSPI 200 and more

By | Daily Briefs, Financials

In today’s briefing:

  • HDFC Bank: Looking Beyond Reported Numbers
  • Indonesian Banks Screener; Bank Negara (BBNI IJ), the Value and Growth Pick
  • EML Payments – Back to basics
  • EQD | KOSPI 200 OVERSOLD, It Could Bounce This Week

HDFC Bank: Looking Beyond Reported Numbers

By Ankit Agrawal, CFA

  • Post merger, HDFC Bank (“HDFCB”) has been under pressure in regards to sustaining its loan growth, which very much hinges on rapid deposit growth.
  • While the deposit growth has been weak, it has been an industry-wide issue. Furthermore, at times, the period-end numbers can be misleading.
  • Focusing on average numbers paints a better picture of growth. Looking at the averages, deposit growth has been strong at 4.6% QoQ, despite liquidity issues in the banking system.

Indonesian Banks Screener; Bank Negara (BBNI IJ), the Value and Growth Pick

By Victor Galliano

  • Negara value attributes, its growth potential captured by its low PEG ratio and its improving efficiency ratio all stand out; pre- and post-provision returns edged higher, with high NPL coverage
  • We are also positive on Mandiri for its quality attributes, its premium returns, and its strong credit quality metrics; Mandiri has the second-best efficiency ratio after mega-cap Bank Central Asia
  • Bank Mega has seen credit quality stabilise in 2Q24, but its returns are under pressure, with the efficiency ratio worsening steadily; cost of risk is likely to increase going forward

EML Payments – Back to basics

By Edison Investment Research

EML Payments’ FY24 results were the first to show the full impact of the liquidation of PFS Card Services Ireland Limited (PCSIL). Continuing operations, which exclude PCSIL, saw gross debit volume (GDV) growth of 18%, revenue growth of 18% and underlying EBITDA growth of 34%. The sale of Sentenial has since completed with proceeds of A$53.4m, moving EML to a net cash position. Management is now focused on moving back to a growth mindset in the remaining business and optimising the cost base post the disposals. Shifting away from the medium-term targets given in February, management expects to disclose more at its AGM in November. We have reduced our FY25 forecasts to reflect the more modest EBITDA guidance and to remove the Sentenial business.

EQD | KOSPI 200 OVERSOLD, It Could Bounce This Week

By Nico Rosti

  • The KOSPI 200 has corrected for 3 weeks in a row, reaching a low at 340.08 last week. It is WEEKLY OVERSOLD, according to our models.
  • In a previous insight we theorized the index could go higher (but only for 1 week), however the rally never materialized. From there it went downhill, now it can bounce.
  • The support area between the last Close and 320 offers strong support, according to our WEEKLY pattern models. 

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

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Sep 07
0

Daily Brief Energy/Materials: Indo Tambangraya Megah, Omai Gold Mines, Zephyr Energy and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • ITMG IJ: Steady Coal Prices, Mine Life Upgrade, 43% of the Mkt Cap in Cash and 11% Dividend Yield
  • OMG: High-Grade Assays Begin to Roll-In
  • Zephyr Energy Plc (AIM: ZPHR): Acidization Results in High Flow Rate at Paradox Well.

ITMG IJ: Steady Coal Prices, Mine Life Upgrade, 43% of the Mkt Cap in Cash and 11% Dividend Yield

By Sameer Taneja

  • Indo Tambangraya Megah (ITMG IJ) recently announced an underwhelming 1228 Rph/share dividend for H1 FY24 (implying a 9% annualized yield).
  • Core profits for H1 2024 were 157 mn USD ( excluding 21 mn USD forex and a six mn USD write-off). We are confident of sequential improvement in earnings. 
  • The company has deep value: 43% of its market cap is in cash, its PE is 5.7x, and its yield, based on a 65% payout ratio, is 11%.

OMG: High-Grade Assays Begin to Roll-In

By Atrium Research

  •  Omai announced the first batch of assay result from the ongoing 10,000m drill program.
  • 10 diamond drill holes have been completed totalling 3,732m and a second drill came online in late August.
  • Assays from 7 holes were reported today, mostly in previously untested gap zones, yielding strong gold mineralization in the majority of holes.

Zephyr Energy Plc (AIM: ZPHR): Acidization Results in High Flow Rate at Paradox Well.

By Auctus Advisors

  • Following a successful acidization job, Well State 36-2R has been tested at peak rates of >2,100 boe/d, including up to 510 bbl/d of condensate/light oil and almost no water.
  • This excludes potential natural gas liquids production that would result in an even higher rate.
  • This flow rate compares very positively with the peak rate of 1,350 boe/d achieved during the first test (announced in July).

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

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Sep 07
0

Daily Brief Consumer: Ganesha Ecosphere, Midea Group Co Ltd A, PDD Holdings, Kangwon Land, DiDi Global, TSE Tokyo Price Index TOPIX, Abercrombie & Fitch Co Cl A, Foot Locker Inc, Kohl’s Corp, Chewy and more

By | Consumer, Daily Briefs

In today’s briefing:

  • The Beat Ideas: How Ganesha Ecosphere Is Shaping the Future of Recycling?
  • Midea Group: Initial Thoughts on the Hong Kong IPO Listing
  • PDD Holdings Inc.: How Are They Managing Competition and Consumer Demand? – Major Drivers
  • Kangwon Land: Regulatory Improvements to Result in Higher Earnings and Valuation Multiples Expansion
  • Didi Invests $94 Million in Smart Cockpit Developer
  • While Raising Profit Margin Isn’t Easy, the Focus Is on Reducing Policy-Shares and Cash on Hand
  • Abercrombie & Fitch Co.: Expanded Product Categories & Brand Partnerships Driving Our Optimism! – Major Drivers
  • Foot Locker Inc.: Strategic International Market Optimization & Other Major Drivers
  • Kohl’s Corporation: These Are The 7 Biggest Factors Impacting Its Performance In 2025 & Beyond! – Financial Forecasts
  • Chewy Inc.: Will Its Consistent Investment in AutoShip & Subscription Models Yield Results? – Major Drivers

The Beat Ideas: How Ganesha Ecosphere Is Shaping the Future of Recycling?

By Sudarshan Bhandari

  • Ganesha Ecosphere (GNPL IN) is expanding from textiles to FMCG packaging with rPET granules, aiming for a 10-12% market share in the recycled PET market by 2029.
  • The shift to high-margin rPET products and expansion into FMCG packaging aligns with regulatory trends and growing demand for sustainable materials.
  • GEL’s strategic focus on high-value, sustainable products and robust market position suggests significant growth potential and improved profitability.

Midea Group: Initial Thoughts on the Hong Kong IPO Listing

By Douglas Kim

  • Midea Group Co Ltd A (000333 CH) is getting ready for a Hong Kong IPO listing, trying to raise at least US$3 billion.
  • Midea Group is trading a relatively attractive valuations. It is trading at P/E of 11.8x, EV/EBITDA of 8.1x, and P/B of 2.5x based on 2024 consensus earnings estimates.
  • In the past five days, Midea’s price is down 2.3%. Some investors have been selling shares in Midea due to concerns about higher discount price offered at HK IPO listing.  

PDD Holdings Inc.: How Are They Managing Competition and Consumer Demand? – Major Drivers

By Baptista Research

  • PDD Holdings, Inc. has shared their financial results for the second quarter of 2024 along with an overview of strategic actions and challenges.
  • The company saw substantial revenue growth, with total revenue reaching RMB 97 billion, marking an 86% year-on-year increase.
  • This significant growth stems mainly from robust online marketing and transaction services.

Kangwon Land: Regulatory Improvements to Result in Higher Earnings and Valuation Multiples Expansion

By Douglas Kim

  • Kangwon Land has received approval to expand its total casino area from 14,512 square metres previously to 20,260 square metres (up 40%). 
  • The betting limits in the foreign players only zone will increase significantly from 300,000 won (about US$225) to 300 million won (about US$225,000). This represents a 1000x increase.
  • We would argue that there is a high probability of Kangwon Land benefiting not just from higher sales and profits but also from higher valuation multiples. 

Didi Invests $94 Million in Smart Cockpit Developer

By Caixin Global

  • Didi Global Inc. is investing 670 million yuan ($94 million) in an affiliated firm of digital mapping company NavInfo Co. Ltd. (002405.SZ -3.09%) and has moved its team responsible for smart cockpit development to the venture, as the Chinese ride-hailing giant takes another step away from carmaking to streamline its business.
  • Beijing-based Didi’s smart transportation arm will take a 16.46% stake in AutoAI (Nanjing) Technologies Co. Ltd., becoming its second-largest shareholder, NavInfo said in a Shenzhen Stock Exchange filing dated Wednesday.
  • NavInfo, AutoAI’s largest shareholder, will also invest an additional 100 million yuan in AutoAI, diluting its stake from 30.29% to 27.01%, the filing said.

While Raising Profit Margin Isn’t Easy, the Focus Is on Reducing Policy-Shares and Cash on Hand

By Aki Matsumoto

  • While cash on hand is high, many companies have not been able to improve their return on capital, so more companies are expected to announce shareholder returns, including share repurchases.
  • The change in awareness of companies can be attributed largely to the changing environment of high foreign ownership and TSE requests.
  • Since it takes time to raise the profit margin, and it’s not easy to identify CapEx opportunities, the measures to improve ROE will reduce policy shareholdings and cash on hand.

Abercrombie & Fitch Co.: Expanded Product Categories & Brand Partnerships Driving Our Optimism! – Major Drivers

By Baptista Research

  • Abercrombie & Fitch Co. recently unveiled its results for the second quarter of 2024, divulging key financial metrics and strategic initiatives that might influence investor sentiment.
  • The company exceeded prior projections, setting second-quarter records with a robust 21% growth in net sales, reaching $1.1 billion, alongside an impressive operating margin of 15.5%.
  • 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.

Foot Locker Inc.: Strategic International Market Optimization & Other Major Drivers

By Baptista Research

  • Foot Locker Inc.’s second quarter 2024 earnings revealed a mixed yet cautiously optimistic outlook as the company undergoes a significant strategic shift under its Lace Up plan.
  • The report highlighted a return to positive sales growth and gross margin improvement, signaling initial success in its efforts to refine market focus and improve operational efficiency.
  • 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.

Kohl’s Corporation: These Are The 7 Biggest Factors Impacting Its Performance In 2025 & Beyond! – Financial Forecasts

By Baptista Research

  • Kohl’s Corporation’s second quarter 2024 earnings report revealed a mixed financial landscape characterized by both positive developments and persistent challenges.
  • While certain strategic initiatives show promising momentum, the overall sales performance during the quarter was below expectations.
  • On a positive note, Kohl’s highlighted considerable traction within key growth areas, including their partnered beauty shops with Sephora, home decor, gifting, and impulse purchasing locations.

Chewy Inc.: Will Its Consistent Investment in AutoShip & Subscription Models Yield Results? – Major Drivers

By Baptista Research

  • Chewy Inc. reported its fiscal Q2 2024 earnings with positive outturns highlighting its ongoing strategic endeavors and financial robustness, which presented a mixed picture of its current operational stance and future potential.
  • The company revealed a marginal revenue increase, achieving $2.86 billion, up approximately 3% YoY, driven largely by its Autoship program which accounts for 78% of net sales, illustrating the value and convenience perceived by returning customers.
  • 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.

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

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Sep 07
0

Daily Brief Health Care: SK Biopharmaceuticals , Cooper Cos and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Key Flow Trading Opportunities After KRX Suddenly Added POSCO Holdings to the BBIG Battery Mix
  • The Cooper Companies Inc.: Focus on Myopia Management & Market Education & Other Major Drivers

Key Flow Trading Opportunities After KRX Suddenly Added POSCO Holdings to the BBIG Battery Mix

By Sanghyun Park

  • Got surprised by KRX adding POSCO Holdings to the Battery Index. Normally predictable rebalancing went off-script with this unexpected move.
  • POSCO Holdings, not Posco Future M, replaced Ecopro BM. Plus, Alteogen Inc is replacing SK Biopharmaceuticals in the BBIG, driving notable flow.
  • Consider a day trading long POSCO Holdings and short Ecopro BM. Also, a long-short futures basket could be worth exploring for names with big passive flows.

The Cooper Companies Inc.: Focus on Myopia Management & Market Education & Other Major Drivers

By Baptista Research

  • Cooper Companies’ latest earnings for the third quarter of 2024 showcased the company reaching significant financial milestones while elaborating on strategic achievements and future outlooks.
  • The major highlight was CooperCompanies achieving its first-ever billion-dollar revenue quarter, with both divisions reporting record revenues.
  • Additionally, the company boasted about margin improvements which supported double-digit earnings growth and record non-GAAP quarterly earnings.

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

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Sep 06
0

Daily Brief Thematic (Sector/Industry): Ohayo Japan | Bracing for Jobs Data and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • Ohayo Japan | Bracing for Jobs Data
  • Japan Morning Connection: 7&I, PPIH, Baycurrent
  • Market take: Patience needed in the AI buildout
  • Developed Market Exchanges – Integrated Flow Monsters and Big Data Monetisers
  • Australia Banks – Loan Growth Flat Line, Negative Building Approvals, WBC Credit Metrics Concerning
  • # 56 India Insight: HDB Targets IPO $9 Billion, Reliance PLI for 10GWh Battery Storage, Nazara AI
  • [Blue Lotus Daily-TMT Update]:BABA US/700 HK/WB US/PDD US/JD US/VIPS US/3690HK/1810 HK
  • [Blue Lotus Daily]:1211 HK/LI US/XPEV US/NIO US/LKNCY US

Ohayo Japan | Bracing for Jobs Data

By Mark Chadwick

  • Wall Street is bracing for Friday’s crucial jobs report, expected to influence Federal Reserve policy. Nonfarm payrolls are forecast to grow by 161,000 in August
  • Seven & i Holdings will reject Alimentation Couche-Tard’s $40 billion takeover offer, deeming the price too low
  • Effissimo Capital Management, an activist investment fund, has increased its stake in Teijin from 6.03% to 7.67%

Japan Morning Connection: 7&I, PPIH, Baycurrent

By Andrew Jackson

  • Not much lead from the US, although Broadcom numbers missing after hours set a slightly negative tone for tech, despite NVDA and TSLA posting gains.
  • The market should like the news that 3382 7&I is engaging with ACT and asking for a higher bid, which may also indicate their failure to attain ‘core’ status from the JP Govt.
  • PPIH looks oversold after missing out on NKY225 inclusion yesterday, especially in comparison to Baycurrent who also missed, yet finished the day +4.5%.

Market take: Patience needed in the AI buildout

By The Bid

  • Tech and cloud firms are heavily investing in artificial intelligence, but there are questions about whether the revenues from AI will catch up with the capital spending
  • It will take time for big tech companies to see a return on their AI investments, with the AI build-out expected to take years
  • There are opportunities for investment in firms supplying key inputs for the AI sector, such as energy, utilities, materials, and real estate

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

Developed Market Exchanges – Integrated Flow Monsters and Big Data Monetisers

By Victor Galliano

  • Our core pick is flow monster CME Group for its dominant franchise through its trading and post-trading (including clearing) operations in interest rates, equity indices, foreign exchange and commodity derivatives
  • We also like Deutsche Borse as the European flow monster and for its attractive valuations and gearing into greater European securities activity
  • We downgrade Japan Exchange to a neutral from buy for its fair valuations, as we see more compelling opportunities with CME group and Deutsche Borse; CBOE is one to watch

Australia Banks – Loan Growth Flat Line, Negative Building Approvals, WBC Credit Metrics Concerning

By Daniel Tabbush

  • Credit growth is persistently weak in Australia, and this is as good of a sign as any, of weak demand or / and worsening credit metrics.
  • Many other figures at the macro level point to weakness ahead (and now) for Australia’s banks even if credit costs appear low.
  • WBC data on stressed corporate exposures shows all too well how migration can impact bad loans. BEN shows this too, with mortgage loans.

# 56 India Insight: HDB Targets IPO $9 Billion, Reliance PLI for 10GWh Battery Storage, Nazara AI

By Sudarshan Bhandari

  • Adani plans to raise Rs 40,000 crore via NCDs from retail investors, diversifying funding sources.
  • Reliance secures 10 GWh battery storage under India’s PLI scheme, advancing clean energy goals.
  • Nazara partners with Telangana to launch an AI Centre, driving innovation in gaming and emerging tech.

[Blue Lotus Daily-TMT Update]:BABA US/700 HK/WB US/PDD US/JD US/VIPS US/3690HK/1810 HK

By Ying Pan

  • BABA US/700 HK/WB US/PDD US/JD US/VIPS US:Taobao to launch WeChat Pay support this month (+/+/-/-/-/-)
  • 3690HK: Meituan Plans to Increase Marketing Investment to Support Small and Medium-sized Restaurant Businesses(+)
  • 3690HK: Meituan food delivery and Meituan hotel services launch on Alipay Mini Program(+)

[Blue Lotus Daily]:1211 HK/LI US/XPEV US/NIO US/LKNCY US

By Eric Wen

  • 1211 HK/LI US/XPEV US/NIO US: In the 35th week of 2024, BYD’s EV delivery hits a new high, while Xpeng’s sales increase by 700 units(///////)
  • LI US/NIO US/XPEV US: Xiaomi SUV spy photos exposed, similar to Model Y, good news for Li Auto, NIO and Xpeng.(+/+/+)
  • XPEV US: XPEV MONA M03 pre-order exceeded only 30K in 48 hours.(/)

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

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Sep 06
0

Daily Brief ECM: Midea: Thoughts on HK Listing and Valuation and more

By | Daily Briefs, ECM

In today’s briefing:

  • Midea: Thoughts on HK Listing and Valuation
  • Sona Blw Precision QIP – Well Flagged Raising, past Deal Record Has Been Decent
  • The Born Korea IPO Preview

Midea: Thoughts on HK Listing and Valuation

By Shifara Samsudeen, ACMA, CGMA

  • Chinese appliance maker Midea’s application to list its shares on the HKEx has been approved and the company plans to list up to 10% of its shares to raise $4bn.
  • Midea Group Co Ltd A (000333 CH)  has a diversified product portfolio,  well-balanced exposure to domestic as well as overseas markets and M&A’s that have helped significantly grow its business.
  • Our analysis on previous secondary listings of Chinese-listed companies on HKEx shows that the HK listings were priced at a significant discount to their A-Shares.

Sona Blw Precision QIP – Well Flagged Raising, past Deal Record Has Been Decent

By Clarence Chu

  • Sona Blw Precision Forgings Lt (SONACOMS IN) is looking to raise INR24bn (US$286m) from its qualified institutional placement (QIP).
  • The capital raising is well flagged having gone through rounds of board approvals, and having been well covered by various media outlets as well.
  • In this note, we run the deal through our ECM framework and comment on deal dynamics.

The Born Korea IPO Preview

By Douglas Kim

  • The Born Korea is getting ready to complete its IPO in Korea in November. The total IPO offering is expected to range from 69 billion won to 84 billion won. 
  • Based on the bankers’ valuation, the expected market cap of the company ranges from 357 billion won to 419 billion won. 
  • The Born Korea was founded by Baek Jong-Won, the most famous celebrity chef in Korea. 

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

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Sep 06
0

Daily Brief Credit: Vedanta Resources – Event Flash – 5NC2/7NC3 Notes Offering – Lucror Analytics and more

By | Credit, Daily Briefs

In today’s briefing:

  • Vedanta Resources – Event Flash – 5NC2/7NC3 Notes Offering – Lucror Analytics
  • Morning Views Asia: Samvardhana Motherson International Ltd, West China Cement, Yuexiu Property
  • Morning Views Asia: Greentown China, Medco Energi
  • Shui On Land – Earnings Flash – H1 FY 2024 Results – Lucror Analytics

Vedanta Resources – Event Flash – 5NC2/7NC3 Notes Offering – Lucror Analytics

By Trung Nguyen

Vedanta Resources (VRL) has launched a roadshow to market its USD 144A/RegS benchmark-sized notes (likely to be 5NC2 or mainly 5NC2, and/or 7NC3), with a potential total size of USD 1.5 bn. The proceeds will be used to refinance the USD 13.875% 2027 notes (USD 470 mn outstanding) and USD 13.875% 2028 notes (USD 1,008 mn outstanding). VRL has sent a conditional redemption notice to trustees of the 2027 notes and 2028 notes, assuming the proposed notes issuance is successful.​ VRL has concurrently launched a tender offer for the 2027 and 2028 notes. 

We expect the proposed 5NC2 notes to price at c. 10%, and the 7NC3 notes at c. 11%.

Morning Views Asia: Samvardhana Motherson International Ltd, West China Cement, Yuexiu Property

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.

Morning Views Asia: Greentown China, Medco Energi

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.

Shui On Land – Earnings Flash – H1 FY 2024 Results – Lucror Analytics

By Leonard Law, CFA

Shui On Land’s (SOL) H1/24 results were weak, as the company reported reduced earnings, higher net debt and weaker leverage. Positively, rental income continued to grow. As a result, recurring operating income from rentals and property management covered 0.9x of interest expense for LTM June (FY 2023: 0.8x). In addition, asset values were stable, with consolidated investment properties covering 1.7x of net debt. We expect cash flows to improve in H2/24, supported by the planned delivery of two projects.  

That said, liquidity is poor. We view negatively management’s cautious tone during the earnings call. Going forward, we believe that SOL could seek to monetise its 100% stake in its property investment and management arm, Shui On Xin Tian Di. In addition, the company may raise fresh funding by further increasing the LTV on its investment property portfolio to the maximum of 45%, albeit this is uncertain (depending on its arrangements with banks). SOL may also carry out more asset sales.

Meanwhile, we believe that the company may be considering potential liability management exercises for the USD bonds in the event it fails to obtain sufficient financing for repayment.

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

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free