Daily Briefs

As discussed here in a piece about the Partial Tender Offer, Pasona Group (2168) has agreed to sell its controlling stake in Benefit One (2412) to M3 (2413).
That will leave Pasona Group with a fair chunk of cash and possibly a residual stake in Benefit One, depending on the results.
Though we don’t know what the future holds, Pasona now is the wrong price for its future.

Denso Offering, Buyback, and New Cross-Holding Reduction Policy – It WAS a Trap

15 minutes after I published what I thought was a considered analysis, Denso dumps the details. I thought it might be a trap. It looks like a trap.
A holistic view of the three different documents here suggests, indeed, “It was a trap”.
This giant offering is not bearish overhang but likely tilts bullish with greenshoe support, a large buyback, a new cross-holding reduction policy, and the follow-on effects from that.

Huge Denso (6902) Secondary Sale by Toyota Group – Admiral Ackbar Says “It’s A Trap!”

Yesterday, Reuters reported that multiple Toyota Group companies would sell ~10% of Denso Corp (6902 JP) worth ¥700bn in a secondary share sale by year-end.
The sellers would be Toyota, selling down to just over 20%, Toyota Industries (6201) (selling down a bit more than half, and Aisin Seiki (7259 JP) selling its 2% stake.
Denso would buy back shares. This whole thing is both interesting and complicated so I discuss the interesting complications below. It looks bigger than it probably is.

Denso (6902 JP): US$4.0 Billion Secondary Offering and US$1.4 Billion Buyback

By Arun George

Denso Corp (6902 JP) announced a secondary offering of up to 294.8 billion shares (including overallotment) and a buyback (maximum shares of 125 million or maximum value of JPY200 billion).
Denso also announced a cross-holding reduction policy. In an unspecified timeframe, it will sell part of its holdings in Toyota Industries (6201 JP) and Aisin (7259 JP).
Looking at recent large Japanese placements is instructive to understand the potential offer price. The pricing date will fall between 13 and 18 December (likely 13 December).

Japan – A Last Look at Shorts on Some Interesting Stocks & Positioning

By Brian Freitas

There should be liquidity events on Persol Holdings, Hakuhodo Dy Holdings, Welcia Holdings, GMO Payment Gateway, CyberAgent, Kobayashi Pharmaceutical, NGK Insulators, Lixil Group, Kurita Water Industries and Keio Corp tomorrow.
On average, the stocks have underperformed the Nikkei 225 Index over the last 2-3 months but there has been near-term outperformance.
There has been a big increase in shorts on the stocks over the last couple of months and positioning varies across stocks.

Denso – Thoughts On The Cross-Holdings Sell-Down

By Mio Kato

The trend of governance reform in Japan continues with Toyota, Toyota Industries and Aisin selling shares of Denso.
Denso is buffering some of the flow impact by repurchasing roughly half of the shares to be sold.
While the size of these moves is relatively large we believe their impact could be disproportionately large for the market as a whole.

Itoen Pref (25935 JP) – Big Discount, Big Buyback, No Big Governance Change

This is always a tough subject, but every now and then I throw myself on the mercy of the ho-humming crowd and write about the Ito En Prefs (25935 JP).
No strong catalyst. Limited capacity for strongly better governance. Even less apparent corporate interest in good governance.
But we have a mini-catalyst, and it has been a while, and I think there IS a good way to think about this stock, so here’s another crack at it.

Sapporo Holdings: Activist Investor 3D Investment Partners Assumes Majority Ownership

By Oshadhi Kumarasiri

Last week, activist investor 3D Investment Partners raised its stake in Sapporo Holdings (2501 JP) by an additional 13%, cementing its position as the majority shareholder in the business.
This suggests the activist investor is optimistic about successfully advancing their proposals.
If investment properties are sold or spun off, and Alcoholic Beverages and Food & Soft Drinks undergo the suggested turnaround, we anticipate an additional 80-100% upside in the near term.

Risks Ahead for Japanese Trading Companies. Marubeni, Mitsui, Sumitomo, Mitsubishi

By Rikki Malik

Headwinds are turning to tailwinds for the Japanese Trading companies.
Risks rising in the short term due to JPY strength, weakening commodity prices and the upcoming US recession.
Massive outperformance over the last two years, most recently due to multiple expansion

GAPack (468 HK): Unpacking XJF’s Move To Send The Board Packing

Back on the 27 January 2023, Jardine Matheson (JM SP) entered an agreement with Shandong Xinjufeng (301296 CH) (XJF) to sell its 28.22% stake in GAPack (468 HK).
That sale completed in September. Last week, XJF requisitioned an EGM to consider appointing five new (& friendly) directors, all-but taking control of the board.
CEO and founder Jeff Bi holds 9.65%. The question is: what are his options?

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Dec 01

Daily Brief Quantitative Analysis: ASX Short Interest Weekly (Nov 24th): CommBank and more

By Smartkarma Daily Briefs | Daily Briefs, Quantitative Analysis

In today’s briefing:

ASX Short Interest Weekly (Nov 24th): CommBank, Pilbara Minerals, Rio Tinto, Xero, NAB, Pro Medicus

ASX Short Interest Weekly (Nov 24th): CommBank, Pilbara Minerals, Rio Tinto, Xero, NAB, Pro Medicus

By Ke Yan, CFA, FRM

We analyzed the changes in short interest of ASX Stocks as of Nov 24th (reported today) which has an aggregated short interest worth USD19.8bn.
We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases & decreases in short value, short as multiple of ADT.
We highlight short interest changes in Commonw Bk Austr, Pilbara Minerals, Rio Tinto, Xero, NAB, Pro Medicus.

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Dec 01

Daily Brief Thematic (Sector/Industry): Risks Ahead for Japanese Trading Companies. Marubeni and more

By Smartkarma Daily Briefs | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

Risks Ahead for Japanese Trading Companies. Marubeni, Mitsui, Sumitomo, Mitsubishi
Ohayo Japan | Dow up 500 Points; EV Reliability Realities
Conbini Wars: Seven Vs Lawson Vs Familymart
Affordable Luxury: A Look Into Chinese Luxury (Part IV)
Restaurant & Retail Roundup – Takeaways from RFDC

Risks Ahead for Japanese Trading Companies. Marubeni, Mitsui, Sumitomo, Mitsubishi

By Rikki Malik

Headwinds are turning to tailwinds for the Japanese Trading companies.
Risks rising in the short term due to JPY strength, weakening commodity prices and the upcoming US recession.
Massive outperformance over the last two years, most recently due to multiple expansion

Ohayo Japan | Dow up 500 Points; EV Reliability Realities

By Mark Chadwick

Overseas: SPX +0.4%, Nasdaq -0.2%; Dow ends November with 9% gain; Salesforce shares up 9% on strong Q3 earnings
Today: NKY Futs+0.2% v cash. JPY 146.2; Japan’s ranking in digital competitiveness slumps; 7&I buys Aussie franchise for $1bn
JapanX: Japanese autos remain the most reliable – EVs far less reliable than conventional cars

Conbini Wars: Seven Vs Lawson Vs Familymart

By Michael Causton

The big 3 convenience stores in Japan control 90% of the sector and share will climb as they mop up some of the remaining chains and collaborate with the rest.
Seven Eleven is by far the best performer of the three but both Lawson and Familymart are innovating to create quite different retail operations.
All are seeing the benefits of digitisation of store and supply chain operations, which should enhance profitability, enhanced by new services and revenue streams like retail media.

Affordable Luxury: A Look Into Chinese Luxury (Part IV)

By Alexis Dwek

Thanks to the rapidly expanding middle class, increasing incomes, and a strong desire for luxury, Chinese consumers are often seen as the embodiment of the luxury industry’s promising future
However, the market has seen competition intensify: Not only are international brands competing against each other, but the rise of domestic brands has brought the competitive landscape to another level
Since this summer, investors have been concerned by a shifting Chinese landscape in the context of the current economic situation

Restaurant & Retail Roundup – Takeaways from RFDC

By Water Tower Research

Our monthly WTR restaurant and retail report focuses on stock performance, short interest, an outlook for restaurant commodity costs, our casual dining same-store sales (SSS) and traffic survey, and takeaways from the Restaurant Finance & Development Conference (RFDC) that occurred in mid-November.
Retailers outperform and restaurants underperform indexes on a MTD basis. For November 2023, the performance reversed, with retailers outperforming the restaurants by a wide margin.
On a month-to-date (MTD) basis, our equal-weighted index of restaurant stocks increased 6.2% following a decline of 4.2% in October, but below the S&P 500, which increased 8.6%.

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Dec 01

Daily Brief ECM: LS Materials IPO Bookbuilding Results Analysis and more

By Smartkarma Daily Briefs | Daily Briefs, ECM

In today’s briefing:

LS Materials IPO Bookbuilding Results Analysis
Sunho Biologics (盛禾) Pre-IPO: Testing the Unproven Targets

LS Materials IPO Bookbuilding Results Analysis

By Douglas Kim

LS Materials IPO price has been determined at 6,000 won per share, which is higher than the high end of the IPO price range (5,500 won).
A total 2,025 institutional investors participated in this IPO book building. The demand ratio was 396.8 to 1. The IPO offering amount is 87.8 billion won.
We believe that its share price is likely to trade higher than the high end of our valuation range (7,953 won per share) post IPO.

Sunho Biologics (盛禾) Pre-IPO: Testing the Unproven Targets

By Ke Yan, CFA, FRM

Sunho Biologics, a China-based clinical-stage biotechnology company, plans to raise up to US$100m via a Hong Kong listing.
In this note, we examine the company’s three core products, namely IAP0971, IAE0972, and IAH0968, which target malignancies.
A large part of the company’s pipeline is testing the unproven targets. We also think the management and pre-IPO investors are of mediocre quality.

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Dec 01

Daily Brief Credit: Morning Views Asia: Azure Power Global Ltd and more

By Smartkarma Daily Briefs | Credit, Daily Briefs

In today’s briefing:

Morning Views Asia: Azure Power Global Ltd, Powerlong Commercial Management Holdings

Morning Views Asia: Azure Power Global Ltd, Powerlong Commercial Management Holdings

By Charles Macgregor

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.

Azure Power Global Ltd
Powerlong Commercial Management Holdings
Road King Infrastructure
Yanlord Land

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Dec 01

Daily Brief Event-Driven: Itoen Pref (25935 JP) – Big Discount and more

By Smartkarma Daily Briefs | Daily Briefs, Event-Driven

In today’s briefing:

Itoen Pref (25935 JP) – Big Discount, Big Buyback, No Big Governance Change
Sapporo Holdings: Activist Investor 3D Investment Partners Assumes Majority Ownership
GAPack (468 HK): Unpacking XJF’s Move To Send The Board Packing
SET50 Index Rebalance Preview: KCE Could Replace TIDLOR
(Mostly) Asia M&A, Nov 2023: Taisho Pharma, CIMC Vehicle, CMIC, Japan Best Rescue, Shidax

Itoen Pref (25935 JP) – Big Discount, Big Buyback, No Big Governance Change

This is always a tough subject, but every now and then I throw myself on the mercy of the ho-humming crowd and write about the Ito En Prefs (25935 JP).
No strong catalyst. Limited capacity for strongly better governance. Even less apparent corporate interest in good governance.
But we have a mini-catalyst, and it has been a while, and I think there IS a good way to think about this stock, so here’s another crack at it.

Sapporo Holdings: Activist Investor 3D Investment Partners Assumes Majority Ownership

By Oshadhi Kumarasiri

Last week, activist investor 3D Investment Partners raised its stake in Sapporo Holdings (2501 JP) by an additional 13%, cementing its position as the majority shareholder in the business.
This suggests the activist investor is optimistic about successfully advancing their proposals.
If investment properties are sold or spun off, and Alcoholic Beverages and Food & Soft Drinks undergo the suggested turnaround, we anticipate an additional 80-100% upside in the near term.

GAPack (468 HK): Unpacking XJF’s Move To Send The Board Packing

Back on the 27 January 2023, Jardine Matheson (JM SP) entered an agreement with Shandong Xinjufeng (301296 CH) (XJF) to sell its 28.22% stake in GAPack (468 HK).
That sale completed in September. Last week, XJF requisitioned an EGM to consider appointing five new (& friendly) directors, all-but taking control of the board.
CEO and founder Jeff Bi holds 9.65%. The question is: what are his options?

SET50 Index Rebalance Preview: KCE Could Replace TIDLOR

By Brian Freitas

With the review period complete, KCE Electronics PCL (KCE TB) should replace Ngern Tid Lor (TIDLOR TB) in the SET50 INDEX at the December rebalance.
Liquidity is poor in Intouch Holdings (INTUCH TB) and Thai Life Insurance (TLI TB) but the stocks should be maintained in the index.
Passive trackers will need to buy 0.9x ADV (1.2% of float) of KCE Electronics PCL (KCE TB) and sell 0.8x ADV (1.6% of float) of Ngern Tid Lor (TIDLOR TB).

(Mostly) Asia M&A, Nov 2023: Taisho Pharma, CIMC Vehicle, CMIC, Japan Best Rescue, Shidax

By Shifara Samsudeen, ACMA, CGMA

For the month of November 2023, 16 new deals (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$13bn.
The average premium for the new deals announced (or first discussed) in November was 41%. The average YTD is 38% (97 deals).
This compares to the average premium for all deals in 2022 (106 deals), 2021 (165 deals), 2020 (158 deals), and 2019 (145 deals) of 41%, 33%, 31%, and 31% respectively.

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Dec 01

Daily Brief Equity Bottom-Up: Denso – Thoughts On The Cross-Holdings Sell-Down and more

By Smartkarma Daily Briefs | Daily Briefs, Equity Bottom-Up

In today’s briefing:

Denso – Thoughts On The Cross-Holdings Sell-Down
BYD (1211 HK) | Takeaways from India Showroom Visit | “Tata” Of China
Altman Allure at OpenAI: Where the Hunter Gets Hunted
Pinduoduo (PDD US): TEMU at Center Stage
2024 High Conviction: Meituan / MT (3690 HK) – Big Opportunity Emerging After Plunge
Memory Monitor: Micron Expects 2025E to Be Best-Ever for Memory; But Valuations Have Run Up a Lot
TSMC: Defensive AI Play in Long Upward Re-Rating Trend?
[Futu Holdings(FUTU US, SELL, TP US$46)Rating Change]: Run Out of Growth Momentum, Downgrade to SELL
OCBC – Market Capitalization Rising, Unlike Peers | Insurance Is Lack Luster | Credit Costs Seem Low
2024 High Conviction – CyberAgent: Worst Seems to Be Over

Denso – Thoughts On The Cross-Holdings Sell-Down

By Mio Kato

The trend of governance reform in Japan continues with Toyota, Toyota Industries and Aisin selling shares of Denso.
Denso is buffering some of the flow impact by repurchasing roughly half of the shares to be sold.
While the size of these moves is relatively large we believe their impact could be disproportionately large for the market as a whole.

BYD (1211 HK) | Takeaways from India Showroom Visit | “Tata” Of China

By Pranav Bhavsar

We recently visited a BYD (1211 HK) showroom in Ahmedabad, with the objective of understanding the preference for Electric Vehicles in India.
Pitched as the “Tata” of China, BYD offers 2 models ATTO 3 and e6 in India.
Considering Tesla Motors (TSLA US) India interest, and Mahindra & Mahindra (MM IN) big bet on EV, BYD’s current operations in India seem to be minuscule and may find little success.

Altman Allure at OpenAI: Where the Hunter Gets Hunted

By Pranay Yadav

Sam returned as the CEO of OpenAI days after his surprise removal. Its board was overhauled with new members – Larry Summers and Bret Taylor.
The surprise removal of Sam was driven by philosophical differences over AI safety. Fears of employee exodus to Microsoft is the primary driver of his return to OpenAI leadership.
Recent events have solidified Microsoft’s partnership with OpenAI and Sam. Outcome from fallout suggests Microsoft will have a larger role in shaping OpenAI’s future.

Pinduoduo (PDD US): TEMU at Center Stage

By Eric Chen

Stock rally on strong revenue growth suggests TEMU will be at center stage of the investment thesis for PDD down the road.
Besides soaring GMV, TEMU achieved blowout performance likely due to much higher-than-expected take-rate and disciplined marketing, resulting in narrower-than-expected losses.
We expect the company’s growth will even accelerate in 4Q23 and generate adjusted net profit of US$12 bn for FY24, with a target market cap of US$240 bn (20xPE).

2024 High Conviction: Meituan / MT (3690 HK) – Big Opportunity Emerging After Plunge

By Ming Lu

The stock has been declining for about three years and plummeted after the 3Q23 results.
However, we believe MT and its corporate clients have been recovering and MT’s profits will rise by 129% in 2024.
We set an upside of 132% and a price target of HK$209 for 2024. Buy.

Memory Monitor: Micron Expects 2025E to Be Best-Ever for Memory; But Valuations Have Run Up a Lot

By Vincent Fernando, CFA

Memory names have rallied strongly, with Nanya Tech outperforming since the start of November.
DRAM bottomed and NAND flash prices have jumped. Micron says that 2025E could be a record year for the Memory industry.
High valuations make near-term upside for Memory names uncertain. For Long/Shorts one can consider Long Micron vs. Short SK Hynix or Long Micron vs. Short Nanya Tech.

TSMC: Defensive AI Play in Long Upward Re-Rating Trend?

By Vincent Fernando, CFA

We believe TSMC represents defensive exposure to AI for investors concerned that many other AI-related stocks’ valuations may be too high.
While one may think TSMC seems too obvious as a play, we note that the stock is up only 4.5% over the last six months.
We view TSMC as trading at an inexpensive valuation; even a cheap valuation should our hypothesis that the stock is structurally re-rating upwards turn out to be true.

[Futu Holdings(FUTU US, SELL, TP US$46)Rating Change]: Run Out of Growth Momentum, Downgrade to SELL

By Eric Wen

We think FUTU is stepping into a stagnant phase in 2024. Japan is not a game changer.
Client asset inflow from overseas is not meaningful, and growth from mainland is frozen by regulation.
We downgrade the stock into SELL rating and cut TP to US$46/ADS, mainly due to slow progress in overseas expansion and difficulty in monetization.

OCBC – Market Capitalization Rising, Unlike Peers | Insurance Is Lack Luster | Credit Costs Seem Low

By Daniel Tabbush

OCBC has seen its mkt cap RISE by ~4% YTD. This is stark contrast to the ~6.5% lower mkt cap at DBS and around 10% lower mkt cap at UOB.
Net interest income had been strong, and this likely slows, a lot. Other areas are far from strong. Credit costs are up 103% YoY at 9M23.
Profit from insurance is down 12% YoY and down 16% QoQ, in 3Q23 (Great Eastern). Profit from associates is -1% YoY in the quarter and only +1% YoY

2024 High Conviction – CyberAgent: Worst Seems to Be Over

CyberAgent Inc (4751 JP) (CA) is a Japan-based media and entertainment company offering media, internet advertising, smart games and investment development businesses in Japan.
The gaming business of the company has collapsed with the slowdown of hit title UMA MUSUME while titles released after UMA MUSUME have failed to perform satisfactorily.
Profitability of Internet advertising and media are expected recover and seems that worst is over for the games business as several titles are slated for release in the near future.

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Dec 01

Daily Brief Macro: End of Mandatory Lock-Up Periods for 53 Companies in Korea in December 2023 and more

By Smartkarma Daily Briefs | Daily Briefs, Macro

In today’s briefing:

End of Mandatory Lock-Up Periods for 53 Companies in Korea in December 2023
Charting Beyond the Equity Market Headlines
EA: Inflation Slumps Into Trough
OPEC, EIA and Nat Gas Watch: A Lukewarm but Bullish Supply Cut
Philippines Economics: Marcos’ Investment Drive Starting to Show Results
Bond Investors Are Overdoing It!
CX Daily: Five Things to Know About Huawei’s New Smart Car Venture

End of Mandatory Lock-Up Periods for 53 Companies in Korea in December 2023

By Douglas Kim

We discuss the end of the mandatory lock-up periods for 53 stocks in Korea in December 2023, among which 6 are in KOSPI and 47 are in KOSDAQ.
These 53 stocks on average could be subject to further selling pressures in December and could underperform relative to the market.
Among these 53 stocks, top five market cap stocks include Doosan Robotics, Studio Dragon, Asicland, Manyo Factory, and Curocell.

Charting Beyond the Equity Market Headlines

By Thomas Lam

One common measure of global equity market valuation has hovered consistently below the US ratio over the last decade or so
Two different measures of valuation suggest that the US equity market appears to be fairly stretched
Over the next decade, the real return on US equities is likely to be lower than the last 10 years, perhaps with some risk of it being subzero on average

EA: Inflation Slumps Into Trough

By Phil Rush

EA inflation undershot expectations for the third consecutive month by falling by 49bps to 2.41% in Nov-23. That is 0.3pp under the consensus and 16bps less than we expected.
The downward bias in outcomes since the Oct-22 peak is substantial, even if half of that merely invalidates consistently exaggerated expectations for positive payback.
Base effects from German energy utility support are set to break the downtrend in Dec-23. Underlying inflation isn’t below the target, so ECB cuts should wait until 3Q24.

OPEC, EIA and Nat Gas Watch: A Lukewarm but Bullish Supply Cut

By Andreas Steno

After a load of speculations and postponements, the OPEC group finally delivered a press release, but there are still many uncertainties around the actual outcome of the meeting.
On the surface, the supply cut deal is intensive, but given early hints of non-compliance from a couple of the African members, the market is not overly convinced.
We disagree with the market take-away and see this as a strong supply message, but admittedly have to monitor the compliance on an ongoing basis in coming months.

Philippines Economics: Marcos’ Investment Drive Starting to Show Results

By Manu Bhaskaran

The administration’s ramp-up in investment spending, notably in transport and infrastructure, is supporting the short-run outlook and longer-run growth prospects.
Investment-Related metrics are on the up, including a notable rise in foreign investment approvals directed towards renewable energy. Regulatory reform is providing a boost.
Managing Manila-Beijing ties will continue to pose a tricky balancing act for Marcos.

Bond Investors Are Overdoing It!

By Jeroen Blokland

Our estimate of the fair value 10-year US Treasury yield currently stands at 4.63%.
With a difference of 38 basis points, the gap between the fair value estimate and the actual yield is historically large.
Hence, we adjust our portfolio and remove the overweight in Treasuries.

CX Daily: Five Things to Know About Huawei’s New Smart Car Venture

By Caixin Global

Huawei /: Five things to know about Huawei’s new smart car venture
Banking /: China’s Bank of Communications added to global too-big-to-fail banks list
Corruption /: Former Guangdong prison chief expelled from Party for graft

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Dec 01

Daily Brief Energy/Materials: Greatview Aseptic Packaging, Siemens Energy AG, Seadrill , Rajshree Polypack, Chevron Corp, Conocophillips, Albemarle Corp, Eog Resources, Cf Industries Holdings, Enterprise Products Partners and more

By Smartkarma Daily Briefs | Daily Briefs, Energy & Materials Sector

In today’s briefing:

GAPack (468 HK): Unpacking XJF’s Move To Send The Board Packing
Siemens Gamesa Still Poses High Risks
SDRL: Course for Free Cash Flow
RPPL: Climbing Up the Value Chain | All Set for a Strong FY25
Chevron Corporation: Will The Hess Acquisition Be A Game Changer? – Major Drivers
ConocoPhillips: A Deep Dive into the Oil Giant’s Strategic Successes and Global Footprint! – Major Drivers
Albemarle Corporation: Is The Liontown Acquisition A Potential Game Changer? – Major Drivers
EOG Resources Inc.: Powering the Future – How This Energy Leader is Defying Odds! – Major Drivers
CF Industries Holdings Inc.: How Aggressive Market Dynamics Are Shaping The Future! – Major Drivers
Enterprise Products Partners L.P.: Navigating Market Challenges with a Strong Strategy! – Major Drivers

GAPack (468 HK): Unpacking XJF’s Move To Send The Board Packing

Back on the 27 January 2023, Jardine Matheson (JM SP) entered an agreement with Shandong Xinjufeng (301296 CH) (XJF) to sell its 28.22% stake in GAPack (468 HK).
That sale completed in September. Last week, XJF requisitioned an EGM to consider appointing five new (& friendly) directors, all-but taking control of the board.
CEO and founder Jeff Bi holds 9.65%. The question is: what are his options?

Siemens Gamesa Still Poses High Risks

By Jesus Rodriguez Aguilar

Siemens Energy plans to bring back the wind business (Siemens Gamesa Renewable Energy) to profitability by fixing quality issues in onshore and driving ramp-up in offshore. Break-even is expected in 2006.
The restructuring process continues after four years of losses, €2 billion net loss is expected for FY 2024. The top Spanish financials institution have turned off the credit tap recently.
The visibility on the end of wind losses remains very limited with execution risk, so I would apply 0.9x P/BV and be short the stock, TP €9.76.

SDRL: Course for Free Cash Flow

By Hamed Khorsand

SDRL reported third quarter results exceeding expectations and announcing slight extensions to when near-term contracts would expire.
There had been minimal news from SDRL to expect contract extensions. SDRL’s peers had been reporting a slowing in contract activity.
The free cash flow SDRL is generating is being used for stock buy backs with the authorization doubled to a total of $500 million.

RPPL: Climbing Up the Value Chain | All Set for a Strong FY25

By Ankit Agrawal, CFA

RPPL reported decent Q2FY24 earnings, led by volume growth and margin expansion. Revenue growth was somewhat tepid due to decline in realization led by volatility in raw material prices.
RPPL is seeing good traction in exports with improving mix of value-added products and enhanced geographic reach. Revenue from exports is guided to triple to INR 30cr+.
RPPL has also entered into In-mold Labeling (IML) in rigid plastic injection molding products. This could be a game changer for RPPL in terms of growth and target market potential.

Chevron Corporation: Will The Hess Acquisition Be A Game Changer? – Major Drivers

Chevron Corporation delivered a mixed set of results for the previous quarter, with revenues above the analyst consensus.
The company unveiled a robust quarter marked by formidable earnings, cash flow, and ROCE.
Solid cash flow facilitated the realization of financial priorities, allowing for the repurchase of Chevron shares exceeding $3 billion, even amidst PDC transaction restrictions.

ConocoPhillips: A Deep Dive into the Oil Giant’s Strategic Successes and Global Footprint! – Major Drivers

ConocoPhillips delivered a mixed set of results in its most recent results, with revenues falling short of Wall Street expectations but above-par earnings.
In the recent quarter, ConocoPhillips witnessed robust performance, marked by significant achievements across its international portfolio.
Financially, the company demonstrated significant global and Lower 48 production in Q3, prompting an upward revision of full-year production guidance.

Albemarle Corporation: Is The Liontown Acquisition A Potential Game Changer? – Major Drivers

Albemarle’s results were a major disappointment as the company failed to meet Wall Street’s revenue and earnings expectations.
However, despite the surge in sales, Albemarle’s net income witnessed a significant decline of 66%, amounting to approximately $303 million, along with a parallel drop in diluted earnings per share (EPS) to $2.57.
In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

EOG Resources Inc.: Powering the Future – How This Energy Leader is Defying Odds! – Major Drivers

EOG Resources surpassed the revenue expectations as well as the earnings expectations of Wall Street.
The company has displayed a commendable trajectory, with a 33% increase in production, a 17% reduction in per unit operating costs, and the generation of substantial free cash flow and net income, surpassing $20 billion each.
These achievements have not only surpassed expectations in production volumes, capital expenditures, and per-unit operating costs but have also empowered EOG to enhance its full-year oil production guidance and diminish its full-year cash operating cost projections.

CF Industries Holdings Inc.: How Aggressive Market Dynamics Are Shaping The Future! – Major Drivers

CF Industries Holdings delivered a disappointing set of results as the company was unable to meet Wall Street’s revenue and earnings expectations.
In the third quarter, they experienced a departure from the typical pattern of softened demand and prices in North America.
This strong demand early in the quarter resulted in an upward trajectory for nitrogen prices, with urea barge prices in New Orleans rising from below $300 to over $400 per ton in early September.

Enterprise Products Partners L.P.: Navigating Market Challenges with a Strong Strategy! – Major Drivers