Category

Daily Briefs

Sep 29
0

Daily Brief Credit: Morning Views Asia: Vedanta Resources and more

By | Credit, Daily Briefs

In today’s briefing:

  • Morning Views Asia: Vedanta Resources

Morning Views Asia: Vedanta Resources

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.

💡 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 29
0

Daily Brief Macro: China Property – First Signs Of Improvement In Some Cities (Weekly New Home Sales To Sep 24) and more

By | Daily Briefs, Macro

In today’s briefing:

  • China Property – First Signs Of Improvement In Some Cities (Weekly New Home Sales To Sep 24)
  • CRE Debt Watch: The initiator or magnifier of financial crises
  • EA Slowdown Exaggerated in Summers
  • CX Daily: WHO’s New China Rep Says Tighten Disease Surveillance
  • EM by EM #23 Playing the Least Dirty Laundry Vs the Dirtiest
  • Out of the Box #20: Gas and Steepeners Brought to You by Muftis and Tsars

China Property – First Signs Of Improvement In Some Cities (Weekly New Home Sales To Sep 24)

By Robert Ciemniak

  • Weekly new home sales for a group of 15 major cities to the week ending Sep 24, continue to show deterioration in aggregate (YTD y/y, 4-week y/y, 52-week y/y) 
  • But some cities, including Beijing and Shanghai, saw a jump in new home sales reported for the last week (based on the underlying data from CREIS)
  • This is likely the first signs of impact from the latest policy easing measures that now start showing in the data

CRE Debt Watch: The initiator or magnifier of financial crises

By Andreas Steno

  • Historically, commercial real estate firms have posed significant risks to the financial system because of funding vulnerabilities and their impact on the broader economy.
  • Issues in the CRE market have often initiated or magnified financial crises.
  • This is largely because the CRE sector, being debt-financed and closely tied to the financial system, is sensitive to financial cycles.

EA Slowdown Exaggerated in Summers

By Phil Rush

  • PMIs place the Euro area as the global epicentre of current weakness, which is as bad as last year. Similarity may not be a coincidence: the trough may be imminent.
  • 2020’s crash appears to be polluting the seasonal adjustment of many datasets. The ESI fell less in lockdown and looks less distorted. Indeed, it has proven resilient recently. 
  • Monetary policy should be more sensitive to unemployment and inflation. We still expect no more ECB rate hikes and a final 25bp step from the BoE in November.

CX Daily: WHO’s New China Rep Says Tighten Disease Surveillance

By Caixin Global

  • WHO /: WHO’s new China Rep says tighten disease surveillance, expand primary care to tackle outbreaks
  • Electric cars /: China could resolve EV row with EU by ‘price undertaking’ talks, ex-WTO chief say
  • Esports /: China wins first ever esports gold medal at Asian Games

EM by EM #23 Playing the Least Dirty Laundry Vs the Dirtiest

By Emil Moller

  • Lately, we’ve been quite outspoken regarding the imminent threat posed by the USD/Oil dynamics, which has the potential to unleash turmoil within the emerging markets sphere.
  • While we typically don’t shy away from challenging prevailing opinions, it appears that, in this specific context, our perspective is slowly becoming the consensus view (which, I might add, is more lucrative than the opposite order).
  • But perhaps it is worthwhile to question and assess the fundamental drivers behind the current predicament-  and ask what does it take to turn things around?

Out of the Box #20: Gas and Steepeners Brought to You by Muftis and Tsars

By Andreas Steno

  • The risk/reward in going long Natural Gas is getting better by the week currently
  • The European and Japanese trade surplus/deficit is 100% under the control of energy prices, leaving JPY and EUR vulnerable to such a spike in Nat Gas prices
  • We are once again in the hands of Tsars and Muftis this Winter and we better hope that the wind blows..

💡 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 29
0

Daily Brief Equity Bottom-Up: Hengan/Vinda: Pulp Friction and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Hengan/Vinda: Pulp Friction
  • Warren Buffett’s Investments in Japanese Trading Firms: Impact on Korean Trading Companies
  • Seven Bank – Assets 39x Loans | Strong 7% Loan Growth | ATM Transactions +8% | Retail Accounts +9%
  • ICICI Securities Delisting: A Deja Vu of Troubles
  • Kalbe Farma (KLBF IJ) – Back to The Future
  • Micron Management Calls Memory Price Trough, Improving Pricing & Profitability Ahead
  • KYEC (2449.TT): Beneficiary of AI with Contribution of CoWoS Testing
  • IStyle Growth Following Amazon Shareholding
  • ARLO: Preview of the Discounted Value
  • Fresenius Medical Care (FME GR): Improved Guidance on Strong 1H23 Show; Turnaround Plan on Track

Hengan/Vinda: Pulp Friction

By David Blennerhassett

  • Hengan International Group (1044 HK) and Vinda International (3331 HK) are both market leaders in China’s personal care industry.
  • Hengan’s operations have greater exposure to sanitary napkins and diapers; whereas tissues account for 83% of Vinda’s revenue. Both companies have been impacted by an increase in wood pulp prices.
  • Hengan is trading cheap; but Vinda’s bottom line is forecast to return to its glory days. Plus rumours of a possible takeover of Vinda continue to do the rounds. 

Warren Buffett’s Investments in Japanese Trading Firms: Impact on Korean Trading Companies

By Douglas Kim

  • We believe that Warren Buffett’s investments in Japanese trading companies have also positively impacted several Korean trading companies in the past three years. 
  • We highlighted seven Korean trading companies three years ago including Posco International and their share prices are up more than 76% on average in this period. 
  • Despite their outstanding share price performance in the past three years, there could be some significant headwinds ahead, as evidenced by the steep inverted yield curve.

Seven Bank – Assets 39x Loans | Strong 7% Loan Growth | ATM Transactions +8% | Retail Accounts +9%

By Daniel Tabbush

  • Seven Bank Ltd (8410 JP) is the 7-11 convenience store bank, which focuses on ATM fees more than loans, so its cash is JPY952bn vs loans JPY35bn at FY23.
  • Loan growth in 1Q24 is 7% YoY, one of strongest in Japan and it is accelerating in recent periods, alongside 8-9% growth in ATM transactions, retail accounts
  • Exceptionally strong ATM transactions abroad at 92.4m in 1Q24 vs 66.5m in 1Q23, including US, Indonesia and Philippines.

ICICI Securities Delisting: A Deja Vu of Troubles

By Nimish Maheshwari

Kalbe Farma (KLBF IJ) – Back to The Future

By Angus Mackintosh

  • Kalbe Farma (KLBF IJ) is one of the key proxies for increasing healthcare penetration and health consciousness in Indonesia through prescription drugs, consumer health, and nutritional products.
  • The company saw a solid sales performance in 1H2023 driven by prescription drugs. There was some lingering margin pressure from higher materials but this should abate in 2H2023.
  • Kalbe Farma continues to develop its digital capabilities, as well as export markets helping to drive efficiencies and growth. Valuations remain below the historical average despite strong earnings recovery ahead.

Micron Management Calls Memory Price Trough, Improving Pricing & Profitability Ahead

By Vincent Fernando, CFA

  • Micron’s FY4Q23 results beat expectations. The company expects to return to a positive margin by FY2H24, however projected a higher FY1Q24 loss than consensus expected.
  • As suggested would be the case in our pre-results piece, the company said it sees memory prices bottoming and expects improving pricing and profitability ahead for the industry.
  • While next quarter’s guidance may be weaker than some expected, we believe the key take-away is that Micron is seeing a memory prices bottom.

KYEC (2449.TT): Beneficiary of AI with Contribution of CoWoS Testing

By Patrick Liao

IStyle Growth Following Amazon Shareholding

By Michael Causton

  • @Cosme continues to carve out a significant share of the cosmetics market, with record sales last year. 
  • @Cosme appeals to a wide cross section of the population but this is about to get even wider once it starts selling via Amazon, its biggest shareholder.
  • While there is debate about whether Amazon will increase its stake, what is certain is that Amazon will help drive iStyle’s sales growth.

ARLO: Preview of the Discounted Value

By Hamed Khorsand

  • ARLO reporting better than expected third quarter results would rely on paid subscriber additions remaining on their current trajectory
  • The pause in ARLO’s stock price creates greater upside potential as ARLO demonstrates its ability to generate positive earnings and free cash flow with each passing quarter
  • ARLO has released a new line up of Essential cameras. ARLO had previously indicated it would update its Essentials cameras this year ahead of the holidays

Fresenius Medical Care (FME GR): Improved Guidance on Strong 1H23 Show; Turnaround Plan on Track

By Tina Banerjee

  • Fresenius Medical Care & (FME GR) reported accelerated organic revenue growth of 6% YoY in 2Q23, driven by both operating segments including sequentially stable treatment volumes in the U.S.
  • Execution on turnaround plan translates into visible productivity improvements in care delivery segment achieving a Q2 margin at the lower end of the 2025 target margin band of 10–14%.
  • The company now expects 2023 operating income to remain flat or decline by up to a low-single-digit percentage (previous target: remain flat or decline by up to a high-single-digit percentage).

💡 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 29
0

Daily Brief South Korea: EcoPro Materials, Posco International Corporation, SK Inc, Seoul Guarantee Insurance and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Passive Flow Schedule Driven by Local Sector ETFs for Ecopro Materials
  • Ecopro Materials IPO – Pushing Ahead with Listing Despite the Controversies
  • Warren Buffett’s Investments in Japanese Trading Firms: Impact on Korean Trading Companies
  • Londian Wason Energy Tech: Planning an IPO in the US in 2024 (Impact on SK Inc)
  • Seoul Guarantee Insurance Pre-IPO Thoughts on Valuation – Needs a Discount to Its Larger Peers

Passive Flow Schedule Driven by Local Sector ETFs for Ecopro Materials

By Sanghyun Park

  • Ecopro Materials will benefit from passive flows generated by being a part of the battery-themed ETFs in the Korean local ETF market. And this will create noteworthy flow instances.
  • There will be a total of six flow events occurring consecutively from March to June next year. For all except for K-New Deal, there is a high likelihood of inclusion
  • In particular, it appears that we should target the rebalancing trading of the TIGER Secondary Cell ETF, which occurs on the second Thursday of April next year.

Ecopro Materials IPO – Pushing Ahead with Listing Despite the Controversies

By Ethan Aw

  • EcoPro Materials (ECO123 KS) is looking to raise up to US$500m in its Korean IPO. 
  • Ecopro Materials (EPM) manufactures and sells high-nickel precursors, one of the key materials for high-nickel cathode materials for secondary (rechargeable) batteries. 
  • Ecopro Materials’ revenue has grown by more than three times over the track record period.  However, its parent company Ecopro and sister company Ecopro BM have been mired in controversy.

Warren Buffett’s Investments in Japanese Trading Firms: Impact on Korean Trading Companies

By Douglas Kim

  • We believe that Warren Buffett’s investments in Japanese trading companies have also positively impacted several Korean trading companies in the past three years. 
  • We highlighted seven Korean trading companies three years ago including Posco International and their share prices are up more than 76% on average in this period. 
  • Despite their outstanding share price performance in the past three years, there could be some significant headwinds ahead, as evidenced by the steep inverted yield curve.

Londian Wason Energy Tech: Planning an IPO in the US in 2024 (Impact on SK Inc)

By Douglas Kim

  • According to SCMP, Londian Wason is getting ready for an IPO in the US in 2024. Londian Wason is planning to raise nearly US$500 million in pre-IPO funding and IPO.
  • SK Inc owns about 30% stake in Londian Wason, a leading copper foil maker in China. It is estimated that SK Inc’s stake is worth about US$1.1 billion. 
  • In 2022, Londian Wason generated sales of 1.47 trillion won. Since SK’s investment in Londian Wason in 2019, the company’s sales has been growing at more than 50% per annum.

Seoul Guarantee Insurance Pre-IPO Thoughts on Valuation – Needs a Discount to Its Larger Peers

By Clarence Chu

  • Seoul Guarantee Insurance (031210 KS) is looking to raise around US$270m in its Korean IPO.
  • Seoul Guarantee Insurance (SGI) is a guarantee insurance firm operating predominantly in Korea.
  • We have looked at the firm’s past performance and undertaken a peer comparison in earlier notes. In this note, we discuss our thoughts on valuation.

💡 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 29
0

Daily Brief India: ICICI Securities Ltd, Vedanta Resources and more

By | Daily Briefs, India

In today’s briefing:

  • ICICI Securities Delisting: A Deja Vu of Troubles
  • Morning Views Asia: Vedanta Resources

ICICI Securities Delisting: A Deja Vu of Troubles

By Nimish Maheshwari

Morning Views Asia: Vedanta Resources

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.

💡 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 29
0

Daily Brief Singapore: Marco Polo Marine and more

By | Daily Briefs, Singapore

In today’s briefing:

  • What’s Trending: Oil plays in spotlight as crude prices rise

What’s Trending: Oil plays in spotlight as crude prices rise

By Geoff Howie

  • What you need to know about the SG market #whatstrending feat. #whatstrending is a new series addressing some of the most trending questions/topics on the markets for investors.
  • Global oil demand growth expected to exceed supply growth in 2023 What are companies that have benefitted from higher oil prices?.

💡 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 29
0

Most Read: Lasertec Corp, Cainiao Smart Logistics, Toshiba Corp, Taiwan Cement, Power Grid Corporation Of India, Hengan International Group, EcoPro Materials and more

By | Daily Briefs, Most Read

In today’s briefing:

  • Nikkei 225 Rebal – Beating a Dead Horse
  • Cainiao Pre-IPO – The Postivies – Evolving into a Global Player, Decent Revenue Growth
  • Updated TOPIX Selldown and Index Flows This Week – Initial TOPIX Selldown of Toshiba NEXT Month
  • Taiwan Cement GDRs Early Look – While Momentum Is Not the Greatest, the Deal Is Very Well Flagged
  • NIFTY Family Index Rebalance: Flows at the Close Today + F&O Expiry
  • Full-Year Results for Alibaba’s CaiNiao: Reduced Losses, Slower Growth, and A (Likely) 2024 IPO
  • Hengan/Vinda: Pulp Friction
  • Passive Flow Schedule Driven by Local Sector ETFs for Ecopro Materials
  • Ohayo Japan: Stocks & SOX Higher; JapanX – Delayed UK Climate Plans Threaten Heat Pump Adoption
  • Ecopro Materials IPO – Pushing Ahead with Listing Despite the Controversies

Nikkei 225 Rebal – Beating a Dead Horse

By Travis Lundy

  • The September 2023 Nikkei 225 Rebalance is tomorrow at the close. This will engender a lot of buying of three names, and a lot of selling of 3 names.  
  • It will also engender a funding trade of nearly ¥460bn. 
  • I am going to beat the dead horse and warn about certain issues with this rebalance.

Cainiao Pre-IPO – The Postivies – Evolving into a Global Player, Decent Revenue Growth

By Sumeet Singh

  • Cainiao Smart Logistics ,  Alibaba Group Holding (9988 HK)’s logistics linked arm, is planning to raise at least US$1bn in its Hong Kong IPO.
  • Cainiao is the largest provider of cross-border e-commerce logistics services globally and a leader in China logistics services, according to CIC.
  • In this note, we talk about the positive aspects of the deal.

Updated TOPIX Selldown and Index Flows This Week – Initial TOPIX Selldown of Toshiba NEXT Month

By Travis Lundy

Taiwan Cement GDRs Early Look – While Momentum Is Not the Greatest, the Deal Is Very Well Flagged

By Clarence Chu

  • Taiwan Cement (1101 TT) is looking to raise US$400m in its upcoming global depository receipts (GDRs) offering. Included is another planned raising of US$500m via convertible bonds.
  • Similar to previous GDR listings, the deal is a long drawn out process with TC requiring multiple approvals, and thus providing ample time for investors to position for the raising. 
  • As of last close, the amount of shares to be offered under the equity component is around 388m shares, or 19.5 days of three month ADV. 

NIFTY Family Index Rebalance: Flows at the Close Today + F&O Expiry

By Brian Freitas

  • The rebalance of the NIFTY, Nifty Next 50, NSE Nifty Bank, CPSE ETF (CPSEBE IN) and a bunch of other indices will be implemented at the close of trading today.
  • Depending on the index, there are constituent changes, changes to the number of shares and free float, plus capping changes. Put together, there is a lot of flow and impact.
  • The round-trip trade will be in excess of US$1bn. Add in the futures & options expiry and volumes will be extremely high in the last 30 minutes of trading.

Full-Year Results for Alibaba’s CaiNiao: Reduced Losses, Slower Growth, and A (Likely) 2024 IPO

By Daniel Hellberg

  • Cainiao Smart Logistics (1437124D HK) ‘s March 2023 quarterly and full-year results can be found within Alibaba’s full-year earnings report, which was released on Thursday May 18
  • In both the March quarter and its fiscal year, CaiNiao showed improved Adjusted EBITDA results, though in both periods the tech-centric logistics network still reported losses
  • Revenue growth slowed to 18% Y/Y in the March quarter, and parent Alibaba (ADR) (BABA US) indicated CaiNiao will target an IPO in 2024, a bit later than some expected

Hengan/Vinda: Pulp Friction

By David Blennerhassett

  • Hengan International Group (1044 HK) and Vinda International (3331 HK) are both market leaders in China’s personal care industry.
  • Hengan’s operations have greater exposure to sanitary napkins and diapers; whereas tissues account for 83% of Vinda’s revenue. Both companies have been impacted by an increase in wood pulp prices.
  • Hengan is trading cheap; but Vinda’s bottom line is forecast to return to its glory days. Plus rumours of a possible takeover of Vinda continue to do the rounds. 

Passive Flow Schedule Driven by Local Sector ETFs for Ecopro Materials

By Sanghyun Park

  • Ecopro Materials will benefit from passive flows generated by being a part of the battery-themed ETFs in the Korean local ETF market. And this will create noteworthy flow instances.
  • There will be a total of six flow events occurring consecutively from March to June next year. For all except for K-New Deal, there is a high likelihood of inclusion
  • In particular, it appears that we should target the rebalancing trading of the TIGER Secondary Cell ETF, which occurs on the second Thursday of April next year.

Ohayo Japan: Stocks & SOX Higher; JapanX – Delayed UK Climate Plans Threaten Heat Pump Adoption

By Mark Chadwick

  • OVERSEAS: US stocks +0.6% – its all macro at the moment – higher interest rates, oil price volatility; US 30y mortgage rates now at 7.3%; Nike earnings beat 
  • JAPAN: NKY Futures +0.4% vs cash. Toyota Aug production +4%; EPCOs to lower residential electricity prices; Sony’s Game unit gets new interim boss. 
  • JAPAN X: Daikin’s concerns about the UK Government backtracking on its climate pledge highlight our concerns over heat pump adoption

Ecopro Materials IPO – Pushing Ahead with Listing Despite the Controversies

By Ethan Aw

  • EcoPro Materials (ECO123 KS) is looking to raise up to US$500m in its Korean IPO. 
  • Ecopro Materials (EPM) manufactures and sells high-nickel precursors, one of the key materials for high-nickel cathode materials for secondary (rechargeable) batteries. 
  • Ecopro Materials’ revenue has grown by more than three times over the track record period.  However, its parent company Ecopro and sister company Ecopro BM have been mired in controversy.

💡 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 Analytics and News
  • ✓ Events & Webinars
Sign Up for Free



Sep 29
0

Daily Brief Indonesia: Kalbe Farma and more

By | Daily Briefs, Indonesia

In today’s briefing:

  • Kalbe Farma (KLBF IJ) – Back to The Future

Kalbe Farma (KLBF IJ) – Back to The Future

By Angus Mackintosh

  • Kalbe Farma (KLBF IJ) is one of the key proxies for increasing healthcare penetration and health consciousness in Indonesia through prescription drugs, consumer health, and nutritional products.
  • The company saw a solid sales performance in 1H2023 driven by prescription drugs. There was some lingering margin pressure from higher materials but this should abate in 2H2023.
  • Kalbe Farma continues to develop its digital capabilities, as well as export markets helping to drive efficiencies and growth. Valuations remain below the historical average despite strong earnings recovery ahead.

💡 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 29
0

Daily Brief United States: Micron Technology, Arlo Technologies Inc, Square Inc, Take Two Interactive Software, Inc, Parker Hannifin, Royalty Pharma , Tyson Foods Inc Cl A, Bakkt, Davita Healthcare Partners, Henry Schein and more

By | Daily Briefs, United States

In today’s briefing:

  • Micron Management Calls Memory Price Trough, Improving Pricing & Profitability Ahead
  • ARLO: Preview of the Discounted Value
  • Block Inc.: Buy Now
  • Take-Two Interactive Software: The Games Driving Their Billion-Dollar Bookings! – Major Drivers
  • Parker-Hannifin Corporation: The Strategic Shift That Doubled Their Presence in Key Industries! – Major Drivers
  • Royalty Pharma plc: How Trelegy and Spinraza Are Changing The Game! – Major Drivers
  • Tyson Foods Inc.: Chicken’s Comeback and What That Means for the Market! – Major Drivers
  • Bakkt Holdings, Inc – Bakkt Highlights the Latest in Cryptocurrencies
  • DaVita Inc.: Improved Patient Care and Treatment Volumes Driving Growth! – Major Drivers
  • Henry Schein Inc.: The Global Growth Engine Driven by Cloud-Based Solutions! – Major Drivers

Micron Management Calls Memory Price Trough, Improving Pricing & Profitability Ahead

By Vincent Fernando, CFA

  • Micron’s FY4Q23 results beat expectations. The company expects to return to a positive margin by FY2H24, however projected a higher FY1Q24 loss than consensus expected.
  • As suggested would be the case in our pre-results piece, the company said it sees memory prices bottoming and expects improving pricing and profitability ahead for the industry.
  • While next quarter’s guidance may be weaker than some expected, we believe the key take-away is that Micron is seeing a memory prices bottom.

ARLO: Preview of the Discounted Value

By Hamed Khorsand

  • ARLO reporting better than expected third quarter results would rely on paid subscriber additions remaining on their current trajectory
  • The pause in ARLO’s stock price creates greater upside potential as ARLO demonstrates its ability to generate positive earnings and free cash flow with each passing quarter
  • ARLO has released a new line up of Essential cameras. ARLO had previously indicated it would update its Essentials cameras this year ahead of the holidays

Block Inc.: Buy Now

By Baptista Research

  • Block, Inc. managed to surpass analyst prospects in terms of revenue as well as earnings, with gross profit reaching $1.87 billion, marking a 27% increase year-over-year.
  • Turning to the performance of Square and Cash App, Square achieved $888 million in gross profit, reflecting an 18% increase year-over-year.
  • The Buy Now, Pay Later (BNPL) platform contributed $84 million of gross profit to both Square and Cash App in the second quarter, with GMV reaching $6.4 billion, a 22% year-over-year increase.

Take-Two Interactive Software: The Games Driving Their Billion-Dollar Bookings! – Major Drivers

By Baptista Research

  • Take-Two Interactive Software delivered a mixed set of results for the previous quarter with revenues above the analyst consensus.
  • Notable successes were observed in titles like Graft Theft Auto Online, Grand Theft Auto V, and NBA 2K23, surpassing projections.
  • The launch of San Andreas Mercenaries for Grand Theft Auto Online brought fresh content, including new missions, vehicles, and fan-requested improvements.

Parker-Hannifin Corporation: The Strategic Shift That Doubled Their Presence in Key Industries! – Major Drivers

By Baptista Research

  • In the fourth quarter, Parker-Hannifin achieved a decent performance across all aspects of its operations.
  • Safety remained a top priority, with a remarkable 20% reduction in recordable incidents, placing the company in the top quartile for safety.
  • Sales for the quarter reached a record-breaking $5.1 billion, marking a substantial 22% increase compared to the previous year, with organic growth contributing to 6% of this growth.

Royalty Pharma plc: How Trelegy and Spinraza Are Changing The Game! – Major Drivers

By Baptista Research

  • Royalty Pharma plc delivered a strong result and managed an all-around beat last quarter.
  • As a result, the company delivered adjusted EBITDA growth of 4% for the quarter, substantially in line with the team’s top-line growth.
  • The company’s total royalty receipts increased by 1%.

Tyson Foods Inc.: Chicken’s Comeback and What That Means for the Market! – Major Drivers

By Baptista Research

  • Tyson Foods, Inc. delivered disappointing results as the company could not meet the revenue and earnings expectations of Wall Street.
  • Lower profitability in their Beef and Chicken segments accounted for more than 90% of the reduction in adjusted operating profit.
  • In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Bakkt Holdings, Inc – Bakkt Highlights the Latest in Cryptocurrencies

By Water Tower Research

  • Founded in 2018, Bakkt builds solutions that enable its clients to grow with the crypto economy.

  • Through institutional-grade custody, trading, and on-ramp capabilities, its clients leverage technology that’s built for sustainable, long-term involvement in crypto.

  • Bakkt Chief Product Officer Dan O’Prey joined us on The Water Tower Hour podcast to discuss Bakkt’s crypto infrastructure business, its history as part of ICE, cryptocurrency differences, its custody focus, and why it is different. 

DaVita Inc.: Improved Patient Care and Treatment Volumes Driving Growth! – Major Drivers

By Baptista Research

  • DaVita Inc. exceeded analyst expectations in revenue and earnings, with $432 million in adjusted operating revenue and $2.08 in adjusted profits per share.
  • These outcomes were driven by advancements in their financial trinity of treatment volume, revenue per treatment, and patient care expenses.
  • In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Henry Schein Inc.: The Global Growth Engine Driven by Cloud-Based Solutions! – Major Drivers

By Baptista Research

  • Henry Schein delivered a mixed set of results in the recent quarter with revenues falling short of Wall Street expectations but above-par earnings.
  • Strong equipment sales and steady general merchandise sales, along with continued strength in technology and value-added services, implants, biomaterials, and endodontic products, have contributed to this performance.
  • The technology and value-added services business, including Henry Schein One, is experiencing global growth, driven by cloud-based practice management software and revenue cycle management services.

💡 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 29
0

Daily Brief China: Hengan International Group, Cainiao Smart Logistics and more

By | China, Daily Briefs

In today’s briefing:

  • Hengan/Vinda: Pulp Friction
  • Cainiao Pre-IPO – The Negatives – Growth Still Driven by China Ops, Pricing Pressure Persists

Hengan/Vinda: Pulp Friction

By David Blennerhassett

  • Hengan International Group (1044 HK) and Vinda International (3331 HK) are both market leaders in China’s personal care industry.
  • Hengan’s operations have greater exposure to sanitary napkins and diapers; whereas tissues account for 83% of Vinda’s revenue. Both companies have been impacted by an increase in wood pulp prices.
  • Hengan is trading cheap; but Vinda’s bottom line is forecast to return to its glory days. Plus rumours of a possible takeover of Vinda continue to do the rounds. 

Cainiao Pre-IPO – The Negatives – Growth Still Driven by China Ops, Pricing Pressure Persists

By Sumeet Singh

  • Cainiao Smart Logistics, Alibaba Group Holding (9988 HK)’s logistics linked arm, is planning to raise at least US$1bn in its Hong Kong IPO.
  • Cainiao is the largest provider of cross-border e-commerce logistics services globally and a leader in China logistics services, according to CIC.
  • In this note, we talk about the not-so-positive aspects of the deal.

💡 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