In today’s briefing:
- TSMC. How To Turn Chicken Salad Into Chicken Sh*t
- Marksans Pharma- Forensic Analysis
- Medikaloka Hermina (HEAL IJ) – Increasing Patient Velocity and Occupancy
- Monthly Container Shipping Tracker | March Volumes Strong | Q1 Margins Likely Up Y/Y (April 2024)
- Short Note: USDJPY Breaking 154: Positive for RE, Buy Japan Hotel REIT, Buy Japan RE
- Intuitive Surgical (ISRG US): Beat-And-Raise 1Q24; Rising Demand for Robotic Surgery Propels Growth
TSMC. How To Turn Chicken Salad Into Chicken Sh*t
- Q124 revenues of $18.87 billion, marginally above the high end of the guided range, up 12.9% YoY and down 3.8% QoQ. Guided Q224 +6% QoQ. Maintained full year 2024 outlook
- Unnecessary, minor downward revisions for semi & foundry growth, combined with confusion about the reason triggered an allergic reaction on the markets. TSMC down ~8% since.
- SMCI plunged 23% by Friday close, ARM down 16.9%, NVIDIA down 10%, AMD & Micron down ~5% etc. Nice one, TSMC!
Marksans Pharma- Forensic Analysis
- Marksans Pharma (MRKS IN) has done well in recent years, growing at 15.2% on a 5Y CAGR.
- The company has a good balance sheet, strong cash generation and also witnessed a recent uptick on the margins side. UK business especially has been the cash cow.
- However, there are few impairment indicators; few subsidiaries are not audited while bad debts have appeared in the books lately. Company also has few disclosure issues.
Medikaloka Hermina (HEAL IJ) – Increasing Patient Velocity and Occupancy
- Medikaloka Hermina (HEAL IJ) booked a strong recovery in revenues and profits in FY2023 driven by rapidly rising inpatient and outpatient volume growth with JKN patient share rising.
- The company also saw significant improvements in working capital in 2023 and will step up its capex and hospital expansion in FY2024E helping to drive growth.
- Medikaloka Hermina is differentiated by its women & children specialisation, higher JKN exposure, and its doctor partnership model. It trades at a discount to peers with higher growth expectations.
Monthly Container Shipping Tracker | March Volumes Strong | Q1 Margins Likely Up Y/Y (April 2024)
- Our analysis suggests container rate momentum remained +ive in March
- Despite higher fuel expense, core container margins likely rose Y/Y in Q124
- Our L/S pair trade? It’s worked, a little, but Evergreen shares have stayed firm
Short Note: USDJPY Breaking 154: Positive for RE, Buy Japan Hotel REIT, Buy Japan RE
- USDJPY is breaking 154, almost 20-year high. In general, weaker Yen is positive for investment in real estate as properties look cheaper from a foreign investor perspective
- Yen weakness is also positive to tourism in Japan, as weak currency will drive tourist arrival and boost tourism
- We like Japan Hotel REIT on the back of attractive valuation and weaker Yen. We also like other Japan RE names like 8801 and 8802
Intuitive Surgical (ISRG US): Beat-And-Raise 1Q24; Rising Demand for Robotic Surgery Propels Growth
- In 1Q24, Intuitive Surgical (ISRG US) reported 11% YoY revenue growth to $1.89B, driven by growth in da Vinci procedure volume and an increase in the installed base of systems.
- Worldwide da Vinci procedures grew 16%, matching the higher end of prior guidance range. The company placed 313 da Vinci surgical systems, including eight newly approved da Vinci 5.
- Even after considering blip in bariatric surgery, delayed tender in China, and no benefit of patient backlog, the company has raised 2024 worldwide da Vinci procedure growth guidance to 14–17%.
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