Category

Daily Briefs

Sep 07
0

Daily Brief Australia: NextEd Group and more

By | Australia, Daily Briefs

In today’s briefing:

  • NextEd Group (NXD):  Whiplash! Market Reaction to Australia’s Visa Changes Highlights the Risk.

NextEd Group (NXD):  Whiplash! Market Reaction to Australia’s Visa Changes Highlights the Risk.

By Anik Siwach

  • Agile Response to Visa Changes: NextEd’s nimble approach to the end of the COVID-19 408 visa showcases adaptability in uncertain times.
  • Tech Sector Growth Potential: Expanding in the thriving tech field, NextEd taps into strong post-study work rights and sector support.
  • Regulatory Challenges: Navigating regulatory shifts, NextEd’s resilience shines amid uncertainty in the non-university education landscape.

💡 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 South Korea: Mirae Asset Tiger Top 10 ETF, Doosan Robotics, RevuCorporation and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Single-Day ETF Flow Event Not to Be Missed in Korea in December
  • Doosan Robotics: Bankers Provide Additional P/S Valuation and Surge in Price of Rainbow Robotics
  • Revu Corporation IPO Valuation Analysis

Single-Day ETF Flow Event Not to Be Missed in Korea in December

By Sanghyun Park

  • Ecopro Co will replace Celltrion Inc. Their float market cap difference is nearly 5 trillion won, so it doesn’t seem likely that this will reverse by the end of November.
  • Ecopro may not have a very significant passive impact x ADTV, given its still high trading volume. On the other hand, Celltrion seems likely to be the target of traders.
  • From a trading perspective, it’s important to focus on the potential price impact of this flow event on Celltrion, which could be amplified depending on the possibility of merger cancellation.

Doosan Robotics: Bankers Provide Additional P/S Valuation and Surge in Price of Rainbow Robotics

By Douglas Kim

  • The bankers provided additional valuation framework using P/S basis for Doosan Robotics and based on this methodology, the IPO price range is from 19,000 won to 24,000 won. 
  • This does not mean that the bankers have actually lowered the IPO price range but rather they have provided another framework to value the company. 
  • We continue to have a Positive view of the Doosan Robotics IPO. 

Revu Corporation IPO Valuation Analysis

By Douglas Kim

  • Our base case valuation of Revu Corp is target price of 19,403 won, which is 47% higher than the high end of the IPO price range (13,200 won). 
  • Revu’s main business is marketing using influencers who are major content providers in the SNS advertising market.
  • The influencer based marketing/advertising is one of the highest growing segments and we believe Revu Corp has an attractive platform to further expand its business on a profitable basis.

💡 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 Singapore: Japfa Ltd and more

By | Daily Briefs, Singapore

In today’s briefing:

  • kopi-C with Japfa’s CEO: “To succeed, we cannot be complacent”

kopi-C with Japfa’s CEO: “To succeed, we cannot be complacent”

By Geoff Howie

  • kopi-C with Japfa’s CEO: “To succeed, we cannot be complacent” Japfa’s CEO Tan Yong Nang says that investing in efficiency, staff development and long-term partnerships is key to endurance and growth For Japfa chief executive officer and executive director Tan Yong Nang, helming a firm is a lot like steering a ship.

💡 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 Indonesia: AKR Corporindo and more

By | Daily Briefs, Indonesia

In today’s briefing:

  • AKR Corporindo (AKRA IJ) – Chemicals, Copper, Gold, and Silver

AKR Corporindo (AKRA IJ) – Chemicals, Copper, Gold, and Silver

By Angus Mackintosh

  • AKR Corporindo (AKRA IJ) has secured another major land plot sale at its JIIPE industrial estate in Gresik, with an area of 67 hectares to a Chinese chemical manufacturer.
  • The sale puts the company on track to exceed its full-year target sales for the estate. It has also been divulged that the Freeport Smelter is now 75% complete.
  • AKR Corporindo (AKRA IJ) remains a crucial proxy for the Indonesian economy through its fuel and chemical distribution business, with JIIPE targeting the EV Battery value chain as future tenants. 

💡 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 India: Shiva Pharmachem Limited and more

By | Daily Briefs, India

In today’s briefing:

  • Shiva Pharmachem Pre-IPO Tearsheet

Shiva Pharmachem Pre-IPO Tearsheet

By Clarence Chu

  • Shiva Pharmachem Limited (9155347Z IN) is looking to raise around US$110m in its upcoming India IPO. The bookrunners on the deal are JM Financial and Kotak.
  • Shiva PharmaChem (SP) is a manufacturer in the Indian specialty chemicals business. 
  • As per Frost & Sullivan (F&S), the firm is the largest manufacturer of acid and alkyl chlorides by volume in CY22 in India and a key player globally.

💡 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 United States: NVIDIA Corp, VNG (VinaGame), S&P 500 INDEX and more

By | Daily Briefs, United States

In today’s briefing:

  • When Giants Run Out of Gas; Some Among Super Seven Are Losing Steam
  • VNG Pre-IPO –  Local Peers Comparison
  • Bounce Continues; Small-Caps Test 3.5-Year RS Lows; Nasdaq/NYSE Breadth Improving; Buys in Energy
  • Taiwan AI Conference Slides, Nvidia Fraud Hoax, Huawei, ARM IPO, and Intel

When Giants Run Out of Gas; Some Among Super Seven Are Losing Steam

By Srinidhi Raghavendra

  • Super Seven are chiefly responsible for the rally in the S&P 500. >80% of the index gains this year were due in large part to the Super Seven.
  • Amazon, Apple, Google, Meta, Microsoft, Nvidia, & Tesla are referred to as Super Seven. S&P is market-cap weighted. Little wonder that Super Seven have an outsized impact on it.
  • Having strongly priced in expectations, investors wait for the Super Seven to deliver. Falling short can result in sharp price pullback. What next for the Super Seven?

VNG Pre-IPO –  Local Peers Comparison

By Sumeet Singh

  • VNG (VinaGame) (VNG US), Vietnam’s leading internet platform, aims to raise up to US$300m in its US IPO.
  • VNG is Vietnam’s leading homegrown digital ecosystem, as per the company, with diverse product offerings across games, communications and media, fintech and other opportunities
  • We looked at the company’s past performance in our earlier notes. In this note, we undertake a comparison versus its local competitors.

Bounce Continues; Small-Caps Test 3.5-Year RS Lows; Nasdaq/NYSE Breadth Improving; Buys in Energy

By Joe Jasper

  • Over the last two weeks we discussed expectations for an oversold bounce; the bounce has continued. We believe it is possible we’ve seen the lows for this pause/pullback on SPX.
  • We see low probability of a meaningful correction if SPX is above 4300-4325 (1.5-year support), but would not be surprised to see another month+ of consolidation between 4325 and 4600.
  • Shorter-Term, as long as 4460 short-term support holds, we expect a test of 4600. Today we highlight several buys within Energy.

Taiwan AI Conference Slides, Nvidia Fraud Hoax, Huawei, ARM IPO, and Intel

By Douglas O’Laughlin

  • A few quick takes before SEMICON. I’ll have an ARM IPO piece coming.

  • The funniest meme on the internet is the incredulous “Nvidia is a fraud” meme. Given the recent rise in Nvidia’s stock, some brains are breaking on the internet.
  • The thread/train of thought seems to be spreading, and I’m here to try to stop it.

💡 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 Japan: Intage Holdings, Japan System Techniques Co and more

By | Daily Briefs, Japan

In today’s briefing:

  • NTT’s Partial Offer for Marketing Consultant Intage (4326) –
  • Intage Holdings (4326 JP): NTT’s Partial Tender Offer
  • 1Q Follow-Up – Japan System Techniques (4323 JP)

NTT’s Partial Offer for Marketing Consultant Intage (4326) –

By Travis Lundy

  • Today, NTT (Nippon Telegraph & Telephone) (9432 JP) announced a partial offer to buy a minimum of 40.0% and a maximum of 51.0% of Intage Holdings (4326 JP). 
  • Six crossholders holding 20.98% between them have separately agreed to tender a total of 19.9%. That means a minimum 25.4% minority participation. With success, minimum pro-ration is 51.5%. 
  • The dynamics of this deal and where synergies lie suggests people need to think really hard about where they underwrite future illiquid ownership. 

Intage Holdings (4326 JP): NTT’s Partial Tender Offer

By Arun George

  • NTT (Nippon Telegraph & Telephone) (9432 JP) has announced a partial tender offer for Intage Holdings (4326 JP) to make it a consolidated subsidiary. 
  • The offer is for a minimum of 15.4m shares (40.00% ownership ratio) and a maximum of 19.6m shares (51.00%) at JPY2,400 per share, a 26.4% premium to the undisturbed price.
  • Irrevocables represent a 19.90% ownership ratio. The minimum acceptance condition requires a 20% minority acceptance rate. The offer is attractive and represents an all-time high.

1Q Follow-Up – Japan System Techniques (4323 JP)

By Sessa Investment Research

  • Japan System Techniques announced its 1Q results for FY24/3 after the close of the market on August 10 (Thursday).
  • Key figures on a consolidated basis ; operating profit fell 53.3%, to ¥122 mn on a 10.2% rise in sales, to ¥5,640 mn.
  • Ordinary profit fell 53.6%, to ¥134 mn, and net income attributable to the parent company fell 72.4%, to ¥61. 

💡 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 China: Empyrean Technology , JF Wealth Holdings, Modern Dental Group, Budweiser Brewing APAC , Luckin Coffee, Prudential , Xiamen Yan Palace Bioengineering and more

By | China, Daily Briefs

In today’s briefing:

  • CSI300 Index Rebalance Preview: 14 Potential Changes in December
  • JF Wealth Lock-Up – At Least US$465m to Be Unlocked, Needs Some Selling to Improve Its Liquidity
  • Modern Dental Group (3600 HK): Stellar 1H23 Result- Volume Drives Revenue Growth; Net Profit Doubled
  • Budweiser APAC: Chinese Beer Makers Poised for a Breakout
  • [Luckin Coffee (LKNCY US, BUY, TP US$44) TP Change]: Moutai Latte Is Not Just a Blockbuster
  • APAC Insurers Series (#3): Initial Theses At Different Stages of Being Played Out
  • Pre-IPO Xiamen Yan Palace Bioengineering – Concerns About Profitability and Growth Sustainability

CSI300 Index Rebalance Preview: 14 Potential Changes in December

By Brian Freitas

  • Over 85% of the way through the review period, we see 14 potential index changes at the December rebalance that will be implemented at the close on 8 December.
  • We estimate a one-way turnover of 1.93% at the December rebalance leading to a one-way trade of CNY 6.93bn.
  • The huge inflow to passive trackers has led to the gap between the potential adds and deletes narrowing. That should reverse as passive will need to sell the deletes.

JF Wealth Lock-Up – At Least US$465m to Be Unlocked, Needs Some Selling to Improve Its Liquidity

By Clarence Chu

  • JF Wealth Holdings (9636 HK) was listed on 10th March 2023, its one-year lockup will expire on 9th Sept 2023.
  • The firm had raised around US$129m in its Hong Kong IPO, at the bottom end of its indicative price range.
  • JF Wealth (JFW) is an online investment decision-making solution provider in China, focusing on the online investor content services market.

Modern Dental Group (3600 HK): Stellar 1H23 Result- Volume Drives Revenue Growth; Net Profit Doubled

By Tina Banerjee

  • Modern Dental Group (3600 HK) reported strong 1H23 performance, with 12% YoY revenue growth to HK$1.6B, driven by increase in demand for its products from existing, returning, and new customers.
  • With increasing economies of scale resulting from China re-opening and global dental industry recovery and increase in the proportion of digital solution cases, net profit jumped 109% YoY to HK$210M.
  • Despite macroeconomic headwinds, the company is confident that the medium and long-term global demand for dental prosthetics is expected to continue due to key irreversible demographic factors and trends.

Budweiser APAC: Chinese Beer Makers Poised for a Breakout

By Oshadhi Kumarasiri

  • With shares trading near its all-time low since its listing on HKEX in 3Q19, we think it could be worthwhile taking another look at Budweiser Brewing APAC (1876 HK)’s valuation.
  • China’s beer industry and regional markets are expected to sustain growth momentum in Q3, driven by tourism’s impact on increased beer consumption.
  • We think it’s worth keeping an eye on Budweiser APAC, as we suspect that it could start to break out from the current downtrend in the near term.

[Luckin Coffee (LKNCY US, BUY, TP US$44) TP Change]: Moutai Latte Is Not Just a Blockbuster

By Shawn Yang

  • Luckin Coffee’s new blockbuster Moutai Latte achieved 5.42mn cup sold with RMB100mn GMV in first day. 
  • We think Luckin Coffee had effectively achieved two goals through the new premium product: 1) de facto price lifting; 2) extend potential customer base and step into the monetization stage.
  • We raised our 2023 revenue and non-GAAP NI on Luckin by 1.6%/4.4%. We maintain the stock as BUY rating and raise TP by US$1 to US$44/ADS.

APAC Insurers Series (#3): Initial Theses At Different Stages of Being Played Out

By Alec Tseung

  • PICC P&C’s thesis has materialized and played out well this year, with the stock being HK’s best-performing Chinese insurer.
  • Samsung Life’s share price recovered slightly since our last update as LT Korean government bond yields further increased.
  • Prudential’s thesis is slowly being played out, with its P/BV discount to AIA having narrowed; but still a long way to go. 

Pre-IPO Xiamen Yan Palace Bioengineering – Concerns About Profitability and Growth Sustainability

By Xinyao (Criss) Wang

  • Although Yan Palace prioritizes R&D capabilities in prospectus, its revenue growth and business model are mainly relied on large investment in marketing/promotion.The root cause is the efficacy problem of EBN.
  • Whether Yan Palace’s future performance growth can be sustained is a question mark if marketing/promotion cannot drive growth anymore. Net profit margin is low. EBN is not a profitable business.
  • Yan Palace’s products do not have core competitiveness or high moat. Compliance risks are also worth being vigilant about. The valuation of Yan Palace should be lower than Giant Biogene.

💡 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: AKR Corporindo, SPIE SA and more

By | Daily Briefs, Industrials

In today’s briefing:

  • AKR Corporindo (AKRA IJ) – Chemicals, Copper, Gold, and Silver
  • SPIE – ESG Report – Lucror Analytics

AKR Corporindo (AKRA IJ) – Chemicals, Copper, Gold, and Silver

By Angus Mackintosh

  • AKR Corporindo (AKRA IJ) has secured another major land plot sale at its JIIPE industrial estate in Gresik, with an area of 67 hectares to a Chinese chemical manufacturer.
  • The sale puts the company on track to exceed its full-year target sales for the estate. It has also been divulged that the Freeport Smelter is now 75% complete.
  • AKR Corporindo (AKRA IJ) remains a crucial proxy for the Indonesian economy through its fuel and chemical distribution business, with JIIPE targeting the EV Battery value chain as future tenants. 

SPIE – ESG Report – Lucror Analytics

By Charles Macgregor

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We view SPIE’s ESG as “Adequate”, given its Environmental and Governance scores. The company’s Social pillar is “Strong”. Controversies are “Immaterial” and Disclosure is “Strong”.

💡 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 TMT/Internet: ARM Holdings, NVIDIA Corp, Axiata Group, Empyrean Technology , Doosan Robotics, JF Wealth Holdings, VNG (VinaGame), Taiwan Semiconductor (TSMC) – ADR and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Arm IPO – Don’t Worry, It’ll Be Fine
  • When Giants Run Out of Gas; Some Among Super Seven Are Losing Steam
  • StubWorld: Axiata Is Coming Up Cheap
  • CSI300 Index Rebalance Preview: 14 Potential Changes in December
  • ARM Holdings IPO Valuation Analysis
  • Doosan Robotics: Bankers Provide Additional P/S Valuation and Surge in Price of Rainbow Robotics
  • JF Wealth Lock-Up – At Least US$465m to Be Unlocked, Needs Some Selling to Improve Its Liquidity
  • VNG IPO: The Bear Case
  • Taiwan Tech Weekly: TSMC to Decide on ARM This Week; Elan, Yageo, ChipMOS Flying; AI PC Wave Signals
  • VNG Pre-IPO –  Local Peers Comparison

Arm IPO – Don’t Worry, It’ll Be Fine

By Mio Kato

  • So the terms are out for Softbank’s attempt to list Arm. 
  • In typical sparkling form, Masayoshi Son has clocked a ~19% drawdown within weeks. 
  • Good thing all the bankers will easily get their $8bn loan paid back in full and aren’t subject to conflicting interests…?

When Giants Run Out of Gas; Some Among Super Seven Are Losing Steam

By Srinidhi Raghavendra

  • Super Seven are chiefly responsible for the rally in the S&P 500. >80% of the index gains this year were due in large part to the Super Seven.
  • Amazon, Apple, Google, Meta, Microsoft, Nvidia, & Tesla are referred to as Super Seven. S&P is market-cap weighted. Little wonder that Super Seven have an outsized impact on it.
  • Having strongly priced in expectations, investors wait for the Super Seven to deliver. Falling short can result in sharp price pullback. What next for the Super Seven?

StubWorld: Axiata Is Coming Up Cheap

By David Blennerhassett

  • Axiata Group (AXIATA MK)‘s NAV discount and implied stub are around their lows since the CelcomDigi (CDB MK) / Digi.com merger last November. 
  • Preceding my comments on Axiata are the current setup/unwind tables for Asia-Pacific Holdcos. 
  • These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

CSI300 Index Rebalance Preview: 14 Potential Changes in December

By Brian Freitas

  • Over 85% of the way through the review period, we see 14 potential index changes at the December rebalance that will be implemented at the close on 8 December.
  • We estimate a one-way turnover of 1.93% at the December rebalance leading to a one-way trade of CNY 6.93bn.
  • The huge inflow to passive trackers has led to the gap between the potential adds and deletes narrowing. That should reverse as passive will need to sell the deletes.

ARM Holdings IPO Valuation Analysis

By Douglas Kim

  • Our base case valuation of Arm Holdings is target price of US$36.3 per share, which represents 23% lower than the lower end of the IPO price range. 
  • We estimate Arm’s sales to reach US2,832 million in FY2024 (up 5.7% YoY) and US$3,038 million in FY 2025 (up 7.3% YoY). 
  • Given the lack of upside, we have a NEGATIVE view of Arm Holdings. Our valuation sensitivity analysis suggests implied price of US$29.4 to US$43.9 per share. 

Doosan Robotics: Bankers Provide Additional P/S Valuation and Surge in Price of Rainbow Robotics

By Douglas Kim

  • The bankers provided additional valuation framework using P/S basis for Doosan Robotics and based on this methodology, the IPO price range is from 19,000 won to 24,000 won. 
  • This does not mean that the bankers have actually lowered the IPO price range but rather they have provided another framework to value the company. 
  • We continue to have a Positive view of the Doosan Robotics IPO. 

JF Wealth Lock-Up – At Least US$465m to Be Unlocked, Needs Some Selling to Improve Its Liquidity

By Clarence Chu

  • JF Wealth Holdings (9636 HK) was listed on 10th March 2023, its one-year lockup will expire on 9th Sept 2023.
  • The firm had raised around US$129m in its Hong Kong IPO, at the bottom end of its indicative price range.
  • JF Wealth (JFW) is an online investment decision-making solution provider in China, focusing on the online investor content services market.

VNG IPO: The Bear Case

By Arun George

  • VNG (VinaGame) (VNG US) is Vietnam’s leading, homegrown digital ecosystem. VNG has filed for a Nasdaq listing to raise US$300 million.
  • In VNG IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
  • The bear case rests on the Communications and Media business’ faltering fundamentals, the Fintech business’ uncertain path to profitability and VNG’s underlying cash burn.

Taiwan Tech Weekly: TSMC to Decide on ARM This Week; Elan, Yageo, ChipMOS Flying; AI PC Wave Signals

By Vincent Fernando, CFA

  • ARM IPO — TSMC says will decide this week whether to participate. ARM is a company potentially without peers and enjoys support from Apple, Nvidia, AMD, and Samsung.
  • Elan, Yageo, ChipMOS top gainers in Taiwan — Three of our Longs have done well most recently on high volume and little new public news.
  • Recent Dell & HP results provide additional clarity on the coming AI PC wave.

VNG Pre-IPO –  Local Peers Comparison

By Sumeet Singh

  • VNG (VinaGame) (VNG US), Vietnam’s leading internet platform, aims to raise up to US$300m in its US IPO.
  • VNG is Vietnam’s leading homegrown digital ecosystem, as per the company, with diverse product offerings across games, communications and media, fintech and other opportunities
  • We looked at the company’s past performance in our earlier notes. In this note, we undertake a comparison versus its local competitors.

💡 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