Category

Daily Briefs

Oct 01
0

Daily Brief Industrials: Toshiba Corp, Toyo Construction, HEICO Corp and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Last Week in Event SPACE: Toshiba, CK Infra/Power Assets, Rakuten Bank, Haitong Int’l Sec
  • (Mostly) Asia-Pac Weekly Risk Arb Wrap: System Info, Keiyo, Invocare, Liontown, ENM, Toyo Const.
  • HEICO Corporation: Behind The Scenes Of The Recent Performance & The Wencor Acquisition! – Major Drivers

Last Week in Event SPACE: Toshiba, CK Infra/Power Assets, Rakuten Bank, Haitong Int’l Sec

By David Blennerhassett

(Mostly) Asia-Pac Weekly Risk Arb Wrap: System Info, Keiyo, Invocare, Liontown, ENM, Toyo Const.

By David Blennerhassett

HEICO Corporation: Behind The Scenes Of The Recent Performance & The Wencor Acquisition! – Major Drivers

By Baptista Research

  • HEICO Corporation managed to exceed the revenue and earnings expectations of Wall Street.
  • These results primarily represent a 12% quarterly consolidated organic net sales growth and the impact of acquisitions.
  • In the quarter, The Flight Support Group’s net sales grew 23% to $405 million, up from $330.3 million in the third quarter of fiscal 2022.

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Oct 01
0

Daily Brief Health Care: JMDC , Prodia, Huadong Medicine Co Ltd A, EMIS Group PLC and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • (Mostly) Asia M&A, Sept 2023: JMDC, Pact, Takisawa, Golden Eagle Energy, Dic Corp
  • Prodia (PRDA IJ) – Going Digital with Precision
  • China Healthcare Weekly (Sep.29) – Be Rational About Biotech Investment, R&D Team Layoffs, Huadong
  • EMIS Group – Final regulatory approval received for takeover

(Mostly) Asia M&A, Sept 2023: JMDC, Pact, Takisawa, Golden Eagle Energy, Dic Corp

By David Blennerhassett

  • For the month of September 2023, 8 new deals (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$2bn.
  • The average premium for the new deals announced (or first discussed) in September was 37%. The average YTD is 35%.
  • 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.

Prodia (PRDA IJ) – Going Digital with Precision

By Angus Mackintosh

  • Prodia is the leading diagnostics company in Indonesia, with over 40% market share as the most trusted brand in the country, given accreditation from the College of American Physicians.
  • The company was a huge beneficiary of all the testing over COVID with the result of a post-pandemic correction but sales should see a strong 2H2023 with more like-for-like comparisons.
  • Prodia (PRDA IJ) remains one of our top healthcare picks in Indonesia, with rising health consciousness driving higher demand for testing. Valuations are extremely attractive versus Indian peers. 

China Healthcare Weekly (Sep.29) – Be Rational About Biotech Investment, R&D Team Layoffs, Huadong

By Xinyao (Criss) Wang

  • We have discovered something interesting from the innovative drug evaluations disclosed by the NMPA over the years. It’s recommended to establish rational expectations for the investment return of biopharmaceutical industry.
  • We analyzed the different situations faced by Biotech in IPO/M&A process, so as to help investors make rational judgments. R&D team is likely to be cut regardless of the circumstances.
  • We updated views on Huadong. Its old businesses dragged down valuation. It may need to wait until Huadong delivers better-than-expected sales/profit growth in weight-loss management business before further boosting valuation.

EMIS Group – Final regulatory approval received for takeover

By Edison Investment Research

The Competition and Markets Authority (CMA) has given final approval to the takeover of EMIS by UnitedHealth. Subject to the scheme receiving the approval of the court at the sanction hearing on 25 October, the takeover is expected to complete on 27 October. On 23 October EMIS will pay the recently proposed interim dividend to shareholders on the register on 6 October without reducing the acquisition cash consideration.

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Oct 01
0

Daily Brief Financials: SBI Shinsei Bank, Kasumigaseki Capital, SGX and more

By | Daily Briefs, Financials

In today’s briefing:

  • Murakami-San’s Masterful Maneuvering to Stymy SBI’s Shysterish Shinsei Squeezeout
  • Kasumigaseki Capital (3498) Moving To TOPIX End-November
  • Singapore Exchange, Korea Exchange Lead Exchange-Owned ESG Indexer Growth

Murakami-San’s Masterful Maneuvering to Stymy SBI’s Shysterish Shinsei Squeezeout

By Travis Lundy

  • The SBI Holdings (8473 JP) takeout of SBI Shinsei Bank (8303 JP) was opportunistic – done at a price SBI Shinsei’s Board considered not reasonable. Until it changed its mind.
  • I had thought appraisal rights a great trade. I also thought it a good trade to own the back end, but that involved one holder putting ¥55bn on the table. 
  • Activist Murakami-san’s S Grant Corporation has done that. It will own one share of 8 post-consolidation on Monday. They are now equal shareholders with the govt entities.  Wow.

Kasumigaseki Capital (3498) Moving To TOPIX End-November

By Travis Lundy

  • Real estate consultant/developer/speculator Kasumigaseki Capital (3498 JP) announced Friday that it would move from TSE Growth to TSE Prime on 6 October. 
  • The stock was on the list of top potential candidates in TOPIX Inclusions: Who Is Ready (Sep 2023) (and has been for nearly a year). It’s a good list.
  • This event leads to a TOPIX inclusion on 29 November. Analysis below.

Singapore Exchange, Korea Exchange Lead Exchange-Owned ESG Indexer Growth

By Kyle Rudden

  • Absolute value of index-linked assets is the ultimate measure of market share, but it misses an important aspect of the ESG-related indexing market – i.e., relative market share growth.
  • A category of ESG index providers that leads vis-à-vis relative growth is exchange-owned ESG index providers, a group which currently accounts for US$46.3 billion in indexed assets.
  • Asian exchange-owned ESG indexers are the clear leaders in that subcategory, with Singapore Exchange (SGX SP) and Korea Exchange leading that cohort with double-digit growth.

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Oct 01
0

Daily Brief Consumer: Ford Motor Co, Thai Beverage, Vf Corp, Best Buy Co Inc and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Ford Halts Construction of U.S. EV Battery Plant Using CATL Technology
  • Index Rebalance & ETF Flow Recap: Thai Bev, Golden Agri, EcoPro Materials, Doosan Robotics, PCOMP
  • VF Corporation: Understanding the Dynamics Behind The Recent Financial Performance! – Major Drivers
  • Best Buy Co. Inc.: Unpacking the Strategies Yielding Profitability Gains in Membership Programs! – Major Drivers

Ford Halts Construction of U.S. EV Battery Plant Using CATL Technology

By Caixin Global

  • Ford Motor Co. said Monday it was suspending construction of its $3.5 billion electric-vehicle (EV) battery plant in the U.S. midwestern state of Michigan, where it had planned to manufacture batteries using technology licensed from Contemporary Amperex Technology Co. Ltd. (CATL) (300750.SZ -0.31%).
  • “We’re pausing work and limiting spending on construction on the Marshall project until we’re confident about our ability to competitively operate the plant,” Ford spokesperson T.R. Reid said in a statement emailed to Caixin.
  • “There are a number of considerations. We haven’t been specific about what they are, nor made any final decision about the planned investment there,” Reid said.

Index Rebalance & ETF Flow Recap: Thai Bev, Golden Agri, EcoPro Materials, Doosan Robotics, PCOMP

By Brian Freitas

VF Corporation: Understanding the Dynamics Behind The Recent Financial Performance! – Major Drivers

By Baptista Research

  • VF Corporation delivered a mixed result in the past quarter, with revenues above anticipations, but it failed to surpass the analyst consensus in terms of earnings.
  • While their on-time performance and in-stock percentages were both back in line with their expectations, lead times concluded the quarter at typical levels.
  • Vans experienced a 22% decline in the quarter and was significantly impacted by the brand’s expected 40% decline in wholesale sales in the Americas.

Best Buy Co. Inc.: Unpacking the Strategies Yielding Profitability Gains in Membership Programs! – Major Drivers

By Baptista Research

  • Best Buy delivered a positive result and managed an all-around beat last quarter.
  • While absorbing more significant incentive compensation costs than Best Buy saw last year, the company managed to maintain level SG&A costs.
  • In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

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Oct 01
0

Daily Brief Australia: Symbio Holdings and more

By | Australia, Daily Briefs

In today’s briefing:

  • Symbio (SYM AU): Aussie Broadband’s Superior Proposal

Symbio (SYM AU): Aussie Broadband’s Superior Proposal

By Arun George

  • Symbio Holdings (SYM AU)‘s indicative proposal from Aussie Broadband Pty Ltd (ABB AU) is A$2.36 + 0.192 ABB shares per SYM share, 10.6% premium to Superloop Ltd (SLC AU)’s offer.
  • The Board has declared ABB’s offer as the superior proposal and granted exclusive due diligence until 20 October. The Board intends to recommend a binding ABB proposal.
  • Superloop’s offer was the final offer in the absence of a superior proposal. If it chooses to enter a bidding war, Superloop will need a higher cash component. 

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Oct 01
0

Daily Brief South Korea: Cosmo AM&T, EcoPro Materials and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Target Cosmo AM&T as a Prime Candidate for KOSPI 200 Special Entry in December
  • Ecopro Materials IPO Valuation Analysis

Target Cosmo AM&T as a Prime Candidate for KOSPI 200 Special Entry in December

By Sanghyun Park

  • The introduction of float market cap is anticipated to apply not only to sector-based screening for the KOSPI 200 but also to special entry considerations.
  • Cosmo AM&T emerges as a direct beneficiary of this change. It currently ranks 52nd within the KOSPI, maintaining a tight gap with the borderline (50th).
  • Once it enters the KOSPI 200, it will also become a part of KOSPI 200 IT. As a result, the estimated flow size is approximately ₩230B, about 6x ADTV.

Ecopro Materials IPO Valuation Analysis

By Douglas Kim

  • Our base case valuation for Ecopro Materials is implied price per share of 40,325 won per share, which is within the IPO price range of 36,200 won to 46,000 won.
  • Given the lack of upside relative to the IPO price range, we have a negative view of this IPO. 
  • Ecopro Materials is engaged in the business of manufacturing and selling high-nickel precursors, one of the key materials for high-nickel anode materials for secondary batteries.

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Oct 01
0

Daily Brief Singapore: SGX, Thai Beverage and more

By | Daily Briefs, Singapore

In today’s briefing:

  • Singapore Exchange, Korea Exchange Lead Exchange-Owned ESG Indexer Growth
  • Index Rebalance & ETF Flow Recap: Thai Bev, Golden Agri, EcoPro Materials, Doosan Robotics, PCOMP

Singapore Exchange, Korea Exchange Lead Exchange-Owned ESG Indexer Growth

By Kyle Rudden

  • Absolute value of index-linked assets is the ultimate measure of market share, but it misses an important aspect of the ESG-related indexing market – i.e., relative market share growth.
  • A category of ESG index providers that leads vis-à-vis relative growth is exchange-owned ESG index providers, a group which currently accounts for US$46.3 billion in indexed assets.
  • Asian exchange-owned ESG indexers are the clear leaders in that subcategory, with Singapore Exchange (SGX SP) and Korea Exchange leading that cohort with double-digit growth.

Index Rebalance & ETF Flow Recap: Thai Bev, Golden Agri, EcoPro Materials, Doosan Robotics, PCOMP

By Brian Freitas

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Oct 01
0

Daily Brief United States: Ford Motor Co, NVIDIA Corp, Vf Corp, Emerald Holding , HEICO Corp, Pros Holdings, US Cellular, Best Buy Co Inc and more

By | Daily Briefs, United States

In today’s briefing:

  • Ford Halts Construction of U.S. EV Battery Plant Using CATL Technology
  • Taiwan AI Supply Chain Names: Four AI Plays to Short as Hedge Vs. An Nvidia Long
  • VF Corporation: Understanding the Dynamics Behind The Recent Financial Performance! – Major Drivers
  • Emerald Holding: Does Onex Exploring A Sale Imply That The Company Has A Limited Upside?
  • HEICO Corporation: Behind The Scenes Of The Recent Performance & The Wencor Acquisition! – Major Drivers
  • PROS Holdings Acquisition Alert: A Golden Opportunity or a Mirage for Investors?
  • UScellular’s Exploration of Sale: A Strategic Move Or A Desperate Measure?
  • Best Buy Co. Inc.: Unpacking the Strategies Yielding Profitability Gains in Membership Programs! – Major Drivers

Ford Halts Construction of U.S. EV Battery Plant Using CATL Technology

By Caixin Global

  • Ford Motor Co. said Monday it was suspending construction of its $3.5 billion electric-vehicle (EV) battery plant in the U.S. midwestern state of Michigan, where it had planned to manufacture batteries using technology licensed from Contemporary Amperex Technology Co. Ltd. (CATL) (300750.SZ -0.31%).
  • “We’re pausing work and limiting spending on construction on the Marshall project until we’re confident about our ability to competitively operate the plant,” Ford spokesperson T.R. Reid said in a statement emailed to Caixin.
  • “There are a number of considerations. We haven’t been specific about what they are, nor made any final decision about the planned investment there,” Reid said.

Taiwan AI Supply Chain Names: Four AI Plays to Short as Hedge Vs. An Nvidia Long

By Vincent Fernando, CFA

  • Taiwan’s AI supply chain names have fallen over the last month, yet many have still outperformed Nvidia by a wide margin over the last six months.
  • We don’t want to sell our Nvidia despite market risks — We believe a basket of Taiwan AI stocks can act as a Short to hedge a Long Nvidia position.
  • Shorting a basket of Wistron, Quanta, Gold Circuit, and Asia Vital Components can act as a hedge vs. a Long Nvidia position. Below we explain why.

VF Corporation: Understanding the Dynamics Behind The Recent Financial Performance! – Major Drivers

By Baptista Research

  • VF Corporation delivered a mixed result in the past quarter, with revenues above anticipations, but it failed to surpass the analyst consensus in terms of earnings.
  • While their on-time performance and in-stock percentages were both back in line with their expectations, lead times concluded the quarter at typical levels.
  • Vans experienced a 22% decline in the quarter and was significantly impacted by the brand’s expected 40% decline in wholesale sales in the Americas.

Emerald Holding: Does Onex Exploring A Sale Imply That The Company Has A Limited Upside?

By Baptista Research

  • This is a special one-time report on Emerald Holding that is creating ripples in the news circuit, courtesy of the exploration endeavors by its predominant shareholder, Onex.
  • Emerald Holding, though operating with a low profile, has been wielding a silent yet significant influence over the events sphere.
  • In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

HEICO Corporation: Behind The Scenes Of The Recent Performance & The Wencor Acquisition! – Major Drivers

By Baptista Research

  • HEICO Corporation managed to exceed the revenue and earnings expectations of Wall Street.
  • These results primarily represent a 12% quarterly consolidated organic net sales growth and the impact of acquisitions.
  • In the quarter, The Flight Support Group’s net sales grew 23% to $405 million, up from $330.3 million in the third quarter of fiscal 2022.

PROS Holdings Acquisition Alert: A Golden Opportunity or a Mirage for Investors?

By Baptista Research

  • This is a special one-time report on PROS Holdings which has garnered attention due to speculation around a potential sale, as noted in a Reuters report.
  • Despite its significant role and contributions to various industries, including airlines, PROS has encountered notable challenges, struggling to achieve profitability.
  • Thus, the pertinent questions that arise are related to the feasibility of an acquisition of PROS Holdings and the potential premium that early investors might garner from such a transaction.

UScellular’s Exploration of Sale: A Strategic Move Or A Desperate Measure?

By Baptista Research

  • This is a special one-time research report on United States Cellular Corporation (UScellular).
  • In light of recent announcements, the company emerges as a subject of intricate valuation and examination for potential investors and acquisition entities.
  • With the strategic review underway without a definitive completion timetable, it’s crucial for investors to understand the merits and demerits of UScellular as an acquisition target.

Best Buy Co. Inc.: Unpacking the Strategies Yielding Profitability Gains in Membership Programs! – Major Drivers

By Baptista Research

  • Best Buy delivered a positive result and managed an all-around beat last quarter.
  • While absorbing more significant incentive compensation costs than Best Buy saw last year, the company managed to maintain level SG&A costs.
  • In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

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

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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
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Oct 01
0

Daily Brief Indonesia: Prodia and more

By | Daily Briefs, Indonesia

In today’s briefing:

  • Prodia (PRDA IJ) – Going Digital with Precision

Prodia (PRDA IJ) – Going Digital with Precision

By Angus Mackintosh

  • Prodia is the leading diagnostics company in Indonesia, with over 40% market share as the most trusted brand in the country, given accreditation from the College of American Physicians.
  • The company was a huge beneficiary of all the testing over COVID with the result of a post-pandemic correction but sales should see a strong 2H2023 with more like-for-like comparisons.
  • Prodia (PRDA IJ) remains one of our top healthcare picks in Indonesia, with rising health consciousness driving higher demand for testing. Valuations are extremely attractive versus Indian peers. 

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

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  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
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Oct 01
0

Daily Brief China: Alibaba (ADR), Huadong Medicine Co Ltd A and more

By | China, Daily Briefs

In today’s briefing:

  • ECM Weekly (1st Oct 2023) – Cainiao, J&T, Kokusai, Seoul Guarantee, Ecopro, Leapmotor, Bajaj Finance
  • China Healthcare Weekly (Sep.29) – Be Rational About Biotech Investment, R&D Team Layoffs, Huadong

ECM Weekly (1st Oct 2023) – Cainiao, J&T, Kokusai, Seoul Guarantee, Ecopro, Leapmotor, Bajaj Finance

By Sumeet Singh

China Healthcare Weekly (Sep.29) – Be Rational About Biotech Investment, R&D Team Layoffs, Huadong

By Xinyao (Criss) Wang

  • We have discovered something interesting from the innovative drug evaluations disclosed by the NMPA over the years. It’s recommended to establish rational expectations for the investment return of biopharmaceutical industry.
  • We analyzed the different situations faced by Biotech in IPO/M&A process, so as to help investors make rational judgments. R&D team is likely to be cut regardless of the circumstances.
  • We updated views on Huadong. Its old businesses dragged down valuation. It may need to wait until Huadong delivers better-than-expected sales/profit growth in weight-loss management business before further boosting valuation.

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  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
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