Category

Daily Briefs

Aug 31
0

Daily Brief Industrials: Doosan Robotics, Greenland Technologies Holdi and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Doosan Robotics IPO: The Bear Case
  • Greenland Technologies Holding Corp. – Strong 2Q Results as Transmission Business Accelerates

Doosan Robotics IPO: The Bear Case

By Arun George

  • Doosan Robotics (DOOSANROBO KS) is a global industrial and collaborative robotics leader. It has opened the books on an up to US$318 million IPO.  
  • In Doosan Robotics 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 business plan forecasts based on shaky assumptions, high cash burn, rising cash collection cycle and deteriorating balance sheet strength.

Greenland Technologies Holding Corp. – Strong 2Q Results as Transmission Business Accelerates

By Water Tower Research

  • Reported EPS of $0.18 on revenues of $3.6 million, up from $0.13 in 2Q22 and $0.11 in 1Q23.
  • The performance was driven by increased traction in the recovering China/Asian market and higher-margin products contributing more to the overall revenue mix.
  • Excluding the impact of FX headwinds, revenues would have been up 19% Y/Y.

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Aug 31
0

Daily Brief Industrials: Doosan Robotics, Greenland Technologies Holdi and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Doosan Robotics IPO: The Bear Case
  • Greenland Technologies Holding Corp. – Strong 2Q Results as Transmission Business Accelerates

Doosan Robotics IPO: The Bear Case

By Arun George

  • Doosan Robotics (DOOSANROBO KS) is a global industrial and collaborative robotics leader. It has opened the books on an up to US$318 million IPO.  
  • In Doosan Robotics 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 business plan forecasts based on shaky assumptions, high cash burn, rising cash collection cycle and deteriorating balance sheet strength.

Greenland Technologies Holding Corp. – Strong 2Q Results as Transmission Business Accelerates

By Water Tower Research

  • Reported EPS of $0.18 on revenues of $3.6 million, up from $0.13 in 2Q22 and $0.11 in 1Q23.
  • The performance was driven by increased traction in the recovering China/Asian market and higher-margin products contributing more to the overall revenue mix.
  • Excluding the impact of FX headwinds, revenues would have been up 19% Y/Y.

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Aug 31
0

Daily Brief TMT/Internet: Star CM Holdings , Telekomunikasi Indonesia, Taiwan Semiconductor (TSMC) – ADR, Yageo Corporation, VNG (VinaGame), Keep Inc, Kahoot! ASA, Elan Microelectronics, CHOYS and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • STAR CM (6698 HK): Grave Accusations
  • Telkom Indonesia (TLKM IJ) – Ring My Digital Bell
  • Taiwan Tech Weekly: New Huawei Phone Works Around U.S. Restrictions?; Taiwan AI Stocks Surging Again
  • Taiwan Dual Listings Monitor: TSMC, ASE Technology, and ChipMOS Opportunities
  • Yageo: Company Visit — Improving Revenue Quality & Cashed-Up Actively Looking For Acquisitions
  • VNG IPO: Scaling Up
  • Keep (3650): Mixed H123 and Slow Post-Pandemic Recovery. Will Growth Story Come To an End?
  • GS AM Consortium/​ Kahoot!: Extension of Acceptance Period, Spread
  • Elan Microelectronics: Positioned to Win from PC Upgrade Cycle; Massively Underheld by Institutions
  • Antler Joins SaaS Insurtech Platform CHOYS’s US$1.1M Seed Round

STAR CM (6698 HK): Grave Accusations

By David Blennerhassett

  • STAR CM Holdings (6698 HK), a variety program intellectual property creator and operator, was listed last December and promptly gained 475% by early August. All good so far.
  • Shares cratered on the 18 August (-23.4%) and are currently 76% adrift from its recent high. The reason? A viral clip from late pop diva Coco Lee discussing unfair treatment.
  • The music competition show, in which Coco appeared, pushed back on any impropriety; however, its broadcaster has temporarily suspended the program. This is no easy fix.

Telkom Indonesia (TLKM IJ) – Ring My Digital Bell

By Angus Mackintosh

  • Telkom Indonesia (TLKM IJ)‘s 1H2023 results looked solid but drilling down 2Q2023 looked a lot more encouraging in terms of growth and higher ARPUs for Telkomsel.  
  • Ongoing digital initiatives are yielding positive results and Indihome continues to register positive results, with its merger with Telkomsel underlining convergence strategy. Data centre consolidation looks like a future spin-off. 
  • Telkom continues to enrich its digital ecosystem with services and make it more accessible to less affluent subscribers. Valuations remain attractive at less than 5.0x forward EV/EBITDA

Taiwan Tech Weekly: New Huawei Phone Works Around U.S. Restrictions?; Taiwan AI Stocks Surging Again

By Vincent Fernando, CFA

  • Huawei’s new Mate 60 Pro phone has made many wonder if it has worked around U.S. technology restrictions to produce a 5G-capable chip domestically.
  • Nvidia hits new all-time highs… Taiwan AI-supply chain stocks are surging again.
  • Dell will report earnings — Look for PC upgrade cycle color and AI PC comments. SEMICON Taiwan is coming soon, we will attend.

Taiwan Dual Listings Monitor: TSMC, ASE Technology, and ChipMOS Opportunities

By Vincent Fernando, CFA

  • TSMC: 9.2% premium — Trending down, can consider shorting the ADR vs. the local.
  • ASE: 10.5% premium is historically high — Short the ADR vs. the local.
  • ChipMOS: -0.4% discount, ADRs have lagged Taiwan shares — Long ADR vs. local.

Yageo: Company Visit — Improving Revenue Quality & Cashed-Up Actively Looking For Acquisitions

By Vincent Fernando, CFA

  • We visited Yageo’s headquarters to learn more about the business and strategy. We expect revenue quality to improve, margins to rise through 2025E, and possible accretive acquisitions.
  • The company is a heavily shorted stock based on our short model — This implies short squeeze potential we believe. The company has over US$1.5bn of dry powder for acquisitions.
  • We rate Yageo as a Structural Long with a NT$690 target price. Potential upside catalysts outnumber downside catalysts in our view.

VNG IPO: Scaling Up

By Shifara Samsudeen, ACMA, CGMA

  • Vietnamese tech start-up VNG (VinaGame) (VNG US) has filed for an IPO in the US and according to news media outlets, the company plans to raise proceeds of around US$300-400m.
  • VNG’s business model resembles that of China’s Tencent (700 HK) with games accounting for most of VNG’s revenues. Other business segments are in early stages of monetisation.
  • Our analysis suggests that VNG’s businesses have strong potential and the company could further reduce its operating losses with scale and further financial discipline.

Keep (3650): Mixed H123 and Slow Post-Pandemic Recovery. Will Growth Story Come To an End?

By Andrei Zakharov

  • Keep Inc (3650 HK) , the largest online fitness platform in China, announced interim results for the six months ended Jun-23. The overall revenue growth is slowing down. 
  • The company completed its Hong Kong IPO of ~10.8M shares at HK$28.92 (bottom of the range) and raised ~HK$192M (~$25M) of net proceeds. CICC led the offering.
  • Keep appears well capitalized to outperform despite China’s temporary slowdown in fitness activities. I remain cautious on Keep stock after a downsized IPO, but I like the long-term fitness story. 

GS AM Consortium/​ Kahoot!: Extension of Acceptance Period, Spread

By Jesus Rodriguez Aguilar

  • It may take some time before shareholders can see how Kahoot’s significant investments in market share and business growth pay off in a positive bottom line.
  • GS AM already has c.59% and the current extension lasts until 8 September. Spread is 2.9%/15.4% (gross/annualised, assuming settlement by 13 November).
  • Taking a NOK 31.2 break, the last closing share price implies just 74% probability of deal completion, however I believe the spread will close following. I’d be long the shares.

Elan Microelectronics: Positioned to Win from PC Upgrade Cycle; Massively Underheld by Institutions

By Vincent Fernando, CFA

  • Elan is positioned to win from a coming PC upgrade cycle, which has been indicated by companies such as Micron, Microsoft, Intel, and Asustek among others.
  • Elan is one of the institutionally most-underheld shares in our universe based on our analysis. Windows 11 adoption has been rising and will accelerate with a PC upgrade cycle.
  • We’ve updated our Elan model, we continue to rate the shares Outperform and have a NT$142 target price. Moreover, the stock’s past all time remains 65% above current share price.

Antler Joins SaaS Insurtech Platform CHOYS’s US$1.1M Seed Round

By e27

  • CHOYS, a SaaS insurtech platform for corporate employees in Southeast Asia, has closed a US$1.1 million seed funding round with investors, including Wing Vasiksiri, Foremast, Antler, and Fintech Nation Fund. 
  • The company will use the money for its go-to-market strategy across Southeast Asia and to bolster its product development initiatives.
  • Founded by Sharon Li and Vanessa Chen, CHOYS aims to make work life more meaningful and humanised.

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Aug 31
0

Daily Brief Financials: Ichigo Inc, Digital Core REIT, Hopson Development, Ping An Insurance Group of, Greentown China, RE Royalties and more

By | Daily Briefs, Financials

In today’s briefing:

  • Ichigo (2337) Buyback – History and Shareholder Structure Give an Edge
  • REIT Pair Trade: Long DCREIT SP/ Short KDCREIT SP
  • Hopson Development – Earnings Flash – H1 FY 2023 Results – Lucror Analytics
  • Ping An Insurance – Weak Results, Net Asset Growth 5% From 9%, Profit Delta -Ve In Many Divisions
  • Greentown China (3900 HK):  Disciplined Market Share Gainer Amid Chaos
  • RE Royalties Ltd. – 2Q23 Results: Revenue Continues to Trend Higher

Ichigo (2337) Buyback – History and Shareholder Structure Give an Edge

By Travis Lundy

  • Today after the close, Ichigo Inc (2337 JP) announced a stock buyback to go through the next 6 months. It is ¥3bn, which is not huge, but not nothing.
  • It seems like a constant refrain, but shareholder structure matters. 
  • Ichigo has a history of doing buybacks (10% of shares out are in treasury), and the historical patterns are interesting when comparing announced intention and actual result. 

REIT Pair Trade: Long DCREIT SP/ Short KDCREIT SP

By Brian Freitas

Hopson Development – Earnings Flash – H1 FY 2023 Results – Lucror Analytics

By Charles Macgregor

Hopson’s H1/23 results were strong as expected, and will likely outperform those of many other POE developers. The top line grew 14% y-o-y to HKD 15.1 bn. Gross profit surged 75% to HKD 5.4 bn, with the gross margin rising by 12 ppts to 36%.

The company also managed to cut net debt by HKD 5 bn. We expect Hopson’s contracted sales and cash collection to be supported in the next 1-2 years by its high-quality land bank and CNY 47 bn of saleable resources. In addition, we believe the company faces low near-term repayment risk, given the limited ST bond maturities.

Our Credit Bias on Hopson is “Stable”. That said, we believe the bond price could be volatile amid the weak market sentiment and poor technicals. We maintain our “Hold” recommendation on the HPDLF curve.

Ping An Insurance – Weak Results, Net Asset Growth 5% From 9%, Profit Delta -Ve In Many Divisions

By Daniel Tabbush

  • Weak results at Ping An Insurance across many divisions, with banking most important
  • Life and Health negative insurance revenue delta, not offset by insurance cost delta
  • Net asset growth is now at 5% YoY, from 9% YoY last year, from ~29% avg for years

Greentown China (3900 HK):  Disciplined Market Share Gainer Amid Chaos

By Steve Zhou, CFA

  • Greentown China (3900 HK) is a high quality China property developer that is unfairly suppressed given the extreme pessimism of the sector. 
  • Even though the overall sales of China property industry will likely continue to decline, the market is large enough that some developers could stand to gain massive market share. 
  • The company trades at 2.5x 2024E PE, and 71% discount to NAV, with expected growth in net profit in 2023 and 2024. 

RE Royalties Ltd. – 2Q23 Results: Revenue Continues to Trend Higher

By Water Tower Research

  • RE Royalties reported 2Q23 revenue of C$3.4 million, up 291.0% Y/Y from C$0.9 million in 2Q22.

  • The company bought back the royalty from Teichos Energy and the loan repaid in the current quarter, driving a gain of $1.5 million in revenue.

  • The company’s finance income has seen a decrease as a result of the repayment of the Teichos loan in May 2023 and no additional loan was advanced during the quarter.

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Aug 31
0

Daily Brief Health Care: Malo Medical Management, Respiri Ltd and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Malo Medical Management Pre-IPO Tearsheet
  • Respiri – Early onset of synergies from Access acquisition

Malo Medical Management Pre-IPO Tearsheet

By Sumeet Singh

  • Malo Medical Management (MMM HK) (MMM) is looking to raise around US$100m (estimated) in its upcoming Hong Kong IPO. The deal will be run by Haitong.
  • MMM is a dental service provider in China. It ranked ninth among all private dental service providers and second among all premium dental service providers, as per F&S.
  • MMM provides dental services to patients through a widespread network of Malo Clinic-branded specialty dental clinics. As of Apr 2023, it owned 29 dental clinics in 13 cities in China.

Respiri – Early onset of synergies from Access acquisition

By Edison Investment Research

Leveraging the expanded scope of operations from its recent acquisition of Access Managed Services (AMS), Respiri has announced the signing of new remote patient monitoring (RPM) contracts with VDO Cardiology and Angelic Health Partners, along with an extended contract with Minnesota Lung Center (existing client) for a sponsored remote therapeutic monitoring (RTM) pilot study in patients with obstructive sleep apnea (OSA). These contracts will add a total of 600 patients to Respiri’s customer base, with a potential A$900k in annual revenues. The new contracts bode well for the company’s break even target of 9,000 patients by H2 CY24 and re-emphasise the contribution of the AMS deal in achieving this. They also broaden Respiri’s addressable RPM market beyond respiratory to cardiovascular, diabetes, asthma, obesity and sleep apnea-related treatments. As advanced discussions are underway with other healthcare organisations and payors according to management, we see incremental revenue expansion opportunities in the near term. We plan to revisit our assumptions post the AMS acquisition; therefore, we have placed our estimates and valuation under review.

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Aug 31
0

Daily Brief Consumer: FSN E-Commerce Ventures (Nykaa), PDD Holdings , Tokyo Stock Exchange Tokyo Price Index Topix, Organto Foods and more

By | Consumer, Daily Briefs

In today’s briefing:

  • NYKAA IN | Nykaa Fashion Appears to Be Mismanaged and in Need of a Change
  • Pinduoduo (PDD US): Don’t Fight with PDD
  • Higher P/E Is Driver for This Stock Rally. Profit Growth Is Necessary for Further Stock Rally
  • OGO: Light Q2 Revenue but Profitability Largely Improving
  • [PDD Holdings (PDD US, BUY, TP US$107)]: Raise TP for GMV, Take Rate, Temu and Kuaituantuan

NYKAA IN | Nykaa Fashion Appears to Be Mismanaged and in Need of a Change

By Pranav Bhavsar

  • As part of our Narrative and Numbers themed Annual Report insights, we shift our focus to FSN E-Commerce Ventures (Nykaa) (NYKAA IN).
  • We focus on Nykaa Fashion due to its financial significance in spite of not being a material subsidiary warranting the need for board review on materiality policy.
  • Notable issues demanding scrutiny include (1) Declining Financials, (2) Inconsistent Reporting, (3) Misleading Narrative, and (4) Elevated Executive Compensation.

Pinduoduo (PDD US): Don’t Fight with PDD

By Eric Chen

  • PDD reported blowout 2Q results with bottom line beating consensus by 40% thanks to stronger domestic marketplaces business, narrower losses incurred by TEMU and higher other income.
  • 2Q results cleared much of our concern around PDD’s bottom line growth and we now see 2Q as the low point of earnings growth in FY23.
  • We believe the company will report $9 billion net profit for FY23 and expect rounds of earnings revision by the street will further lift share price. US $120 price target.

Higher P/E Is Driver for This Stock Rally. Profit Growth Is Necessary for Further Stock Rally

By Aki Matsumoto

  • Despite disclosing “improvement measures,” many companies have yet to see their stock prices rise sufficiently, which is one reason why an increasing number of companies announce enhanced shareholder returns.
  • 2003 and 2013 were the starting point for monetary easing and excess liquidity helped raise P/B. Whether BOJ will head for the exit or continue easing is a major factor.
  • Since this stock price rally was brought about by an increase in P/E multiples, further stock price appreciation will require continued profit growth, i.e., an increase in ROE.

OGO: Light Q2 Revenue but Profitability Largely Improving

By Atrium Research

  • Organto reported Q2 financial results that missed our estimates on revenue but beat our estimates on gross margin and adjusted EBITDA.
  • Yesterday evening, Organto Foods (OGO:TSXV) reported Q2/23 financial results that were softer than our expectations on revenue but beat our estimates on profitability metrics.
  • Gross margin for the quarter came in at 9.0% compared to our estimate of 8.0% and 4.1% in Q2 last year.

[PDD Holdings (PDD US, BUY, TP US$107)]: Raise TP for GMV, Take Rate, Temu and Kuaituantuan

By Shawn Yang

  • PDD reported CY2Q23 top-line and non-GAAP net profit 28% and 58% vs. our est., and 21% and 44% vs. cons., respectively. 
  • We raised our 2H23 forecasts for PDD because: 1) GMV growth hasn’t been significantly impacted by the current competitive landscape; 2) take rate could maintain a high level due to 
  • Continuous optimization of ad products; and 3) new businesses such as Temu and Kuaituantuan (快团团) have fair growth. We maintain BUY and raise our TP to US$ 107.

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Aug 31
0

Most Read: Kenedix Office Investment Co, SBI Shinsei Bank, Prosus NV, Tcc Steel, East Buy Holding , Power Finance, Sinopharm Group Co Ltd H, Core Concept Technologies Inc, Star CM Holdings , Doosan Robotics and more

By | Daily Briefs, Most Read

In today’s briefing:

  • Kenedix Office/Resi/Commercial Three-Way Merger – Size Matters and Index Flows Do Too
  • SBI Shinsei Bank (8303) Calls Its EGM and Appraisal Rights Seekers Prepare for Battle
  • Prosus/Naspers – The ουροβóρος Is Dead! Long Live The Ouroboros!
  • KOSPI200 Index Rebalance Preview: Increasing Number of Changes in December
  • Final Hang Seng Index Flows for 1 Sep Rebal (AAC, EastBuy, BABA, Sinopharm, Trip.com)
  • AMFI Stock Reclassification Preview (Dec 2023): Overlap Between Active & Passive Flows
  • HSI, HSCEI, HSTECH: Rebalance Flows Post Capping (Sep 2023)
  • Core Concept Technologies (4371 JP) – A BIGLY 2ndary Offering (Re-IPO), and Eventual TOPIX Inclusion
  • STAR CM (6698 HK): Grave Accusations
  • Doosan Robotics IPO: The Bear Case

Kenedix Office/Resi/Commercial Three-Way Merger – Size Matters and Index Flows Do Too

By Travis Lundy

SBI Shinsei Bank (8303) Calls Its EGM and Appraisal Rights Seekers Prepare for Battle

By Travis Lundy

  • The SBI Holdings Tender Offer for SBI Shinsei Bank (8303 JP) was completed about four weeks ago, and in something of a surprise, only 3.7% of 26.98% minority holdings tendered.
  • The stock traded above terms every day during the Tender Offer Period. People accumulated in order to pursue their appraisal rights later. That is big. 
  • This week, SBI Shinsei announced the schedule of dates relating to the squeezeout EGM. The record date was early. The reverse stock split announced is as expected, possibly game-able.

Prosus/Naspers – The ουροβóρος Is Dead! Long Live The Ouroboros!

By Travis Lundy

  • Shareholders of Prosus NV (PRX NA) and Naspers (NPN SJ) approved AGM agenda items late last week to enable the two Capitalisation Issues and Naspers’ Share Consolidation to move forward.
  • What Will Happen: Prosus will issue new N shares to its shareholders and Naspers will reject them. Naspers will issue new shares to its shareholders, and Prosus will reject them.
  • Naspers will own ~42.9% of Prosus, Prosus will own 0.02% of Naspers. Sales of Tencent shares will continue. Share Buybacks too. But the ouroboros will have spit out its tail. 

KOSPI200 Index Rebalance Preview: Increasing Number of Changes in December

By Brian Freitas

  • Nearly two-thirds of the way through the review period, we see nine potential changes for the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX) at the December rebalance.
  • The potential adds are dominated by the Materials sector while the potential deletions are mainly from the Consumer Discretionary sector.
  • The impact on the potential inclusion ranges from 0.14-12 days of ADV while the impact on the potential deletions varies from 3.1-30 days of ADV.

Final Hang Seng Index Flows for 1 Sep Rebal (AAC, EastBuy, BABA, Sinopharm, Trip.com)

By Travis Lundy

  • The Hang Seng announces changes along with prospective flows 2wks before the actual change. Capping flows are calculated off the close three days before implementation. That was today.
  • There have been some minor movements in the rankings. Nothing major. There is still just over US$1bn to trade, one-way.
  • Enclosed are totals for each of the three major indices (Hang Seng, HSCEI, and HS Tech) and then netted flows. The biggest is US$470mm of BABA to sell. Spreadsheet attached.

AMFI Stock Reclassification Preview (Dec 2023): Overlap Between Active & Passive Flows

By Brian Freitas

  • We see 8 stocks moving from MidCap to LargeCap, 8 stocks moving from LargeCap to MidCap, 13 stocks from SmallCap to MidCap, and 13 stocks from MidCap to SmallCap.
  • The expected migrations from SmallCap to MidCap have outperformed the other potential migrations with all stocks moving higher over the last six month.
  • Active managers could continue to realign their portfolios. Some of the upward migrations will have passive flows in the next few days and over the next few months.

HSI, HSCEI, HSTECH: Rebalance Flows Post Capping (Sep 2023)

By Brian Freitas

Core Concept Technologies (4371 JP) – A BIGLY 2ndary Offering (Re-IPO), and Eventual TOPIX Inclusion

By Travis Lundy

  • Last week I wrote about another situation, noting Equity Offering Into TOPIX Inclusion is a standard construct. Here we have another. 
  • DX and HR Support company Core Concept Technologies Inc (4371 JP) today announced a large (it ups Real World Float by 64%, and is 33 days of ADV) secondary offering.
  • The “reason” for the offering mentions a desire to move to TSE Prime in future.

STAR CM (6698 HK): Grave Accusations

By David Blennerhassett

  • STAR CM Holdings (6698 HK), a variety program intellectual property creator and operator, was listed last December and promptly gained 475% by early August. All good so far.
  • Shares cratered on the 18 August (-23.4%) and are currently 76% adrift from its recent high. The reason? A viral clip from late pop diva Coco Lee discussing unfair treatment.
  • The music competition show, in which Coco appeared, pushed back on any impropriety; however, its broadcaster has temporarily suspended the program. This is no easy fix.

Doosan Robotics IPO: The Bear Case

By Arun George

  • Doosan Robotics (DOOSANROBO KS) is a global industrial and collaborative robotics leader. It has opened the books on an up to US$318 million IPO.  
  • In Doosan Robotics 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 business plan forecasts based on shaky assumptions, high cash burn, rising cash collection cycle and deteriorating balance sheet strength.

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Aug 30
0

Daily Brief Industrials: Doosan Robotics, First Trust Dj Internet Ind, Shenzhen International, ZTO Express Cayman , Braille Energy Systems and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Doosan Robotics IPO: The Bull Case
  • Doosan Robotics IPO – Peer Comparison – Has Niche Offerings but Doesn’t Lack Competition
  • Oversold Bounce Underway Amid Consolidation Phase; Buys in IT Consulting, Uranium, Technology
  • Shenzhen Intl (152 HK): Brighter Outlook in 2H23 Not to Be Overlooked
  • ZTO Express Q2 Results: Strong on Volume | Weak on Price | Margins Up in Q2, But H2 Much Tougher
  • BES: Mixed Q3 Financials; Long-Term Thesis Intact

Doosan Robotics IPO: The Bull Case

By Arun George

  • Doosan Robotics (DOOSANROBO KS) is a global industrial and collaborative robotics leader. It has opened the books on an up to US$318 million IPO.   
  • The international bookbuilding will run from 28 August to 15 September, while the domestic book will be open from 11 to 15 September. Pricing will be announced on 19 September.
  • The bull case rests on the market share gains, rapid forecasted growth, the industry’s largest product lineup, rapid expansion in sales channels and key accounts growth.

Doosan Robotics IPO – Peer Comparison – Has Niche Offerings but Doesn’t Lack Competition

By Ethan Aw

  • Doosan Robotics (DOOSANROBO KS) is looking to raise up to US$314m in its Korean IPO. 
  • Doosan Robotics (DR) manufactures and sells collaborative robots (Cobots). The firm’s product portfolio primarily includes different series of robot arms as well as its coffee module. 
  • In our previous notes, we talked about the company’s past performance. In this note, we undertake a peer comparison.

Oversold Bounce Underway Amid Consolidation Phase; Buys in IT Consulting, Uranium, Technology

By Joe Jasper

  • Last week (8/22/23) we discussed our expectations for an oversold bounce due to an overwhelming number of indexes/Sectors/industries testing multi-month supports, combined with Treasury yields and the DXY testing resistance.
  • The bounce has begun with the SPP ending higher last week for the first time in a month, and it is possible we have seen the lows for this pause/pullback.
  • A meaningful correction cannot happen if the SPX is above 4300-4325, but we would not be surprised to see another month or more of consolidation between 4300 and 4600.

Shenzhen Intl (152 HK): Brighter Outlook in 2H23 Not to Be Overlooked

By Osbert Tang, CFA

  • Poor 1H23 result at Shenzhen International (152 HK) should have been anticipated, and we believe there is good room for sharp earnings improvement in 2H23.
  • Completion of logistics projects, more asset value realisation (through REIT and private equity funds), contribution from Yicheng Qiwanli and lower finance costs should underpin outlook.
  • SZI is an asset play with significant upside and this is reflected in the undemanding 0.42x P/B. Against its historical average of 0.67x, such a level is almost -2SD below. 

ZTO Express Q2 Results: Strong on Volume | Weak on Price | Margins Up in Q2, But H2 Much Tougher

By Daniel Hellberg

  • Solid Q2 results from ZTO, with deep unit cost reductions offseting weak pricing
  • But ultimately, Q2/H1 results are merely in-line with guidance — not better, nor worse
  • In this environment, it’s difficult to see what will move ZTO out of recent trading range

BES: Mixed Q3 Financials; Long-Term Thesis Intact

By Atrium Research

  • Braille reported Q3/23 financial results that were mixed compared to our expectations. 
  • Braille Battery remains well positioned to expand internationally and return to its historical sales growth rate of ~15% while expanding gross margin in the process.
  • The results were mixed relative to our expectations, being in line for revenue and adjusted EBITDA but missing on gross margin.

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Aug 30
0

Daily Brief Energy/Materials: Posco Future M, Shougang Fushan Resources, Solar AI Technologies, Rent.com.au Ltd, Schoeller Allibert SA and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • Korea’s First Sector Inverse ETF: Discussing Flow Trading Impacts
  • Shougang Fushan Resources (639 HK): Partial Offer Is Unconditional
  • Singapore’s Rent-To-Own Solar Startup Solar AI Bags US$1.5M Seed Financing
  • Rent.com.au Ltd – FY23 Refocus Set to Benefit Future Revenue Generation
  • Schoeller Allibert – ESG Report – Lucror Analytics

Korea’s First Sector Inverse ETF: Discussing Flow Trading Impacts

By Sanghyun Park

  • KB Asset Management has announced the release of an inverse ETF, containing the top 10 core stocks in the secondary battery sector.
  • Given the substantial fluctuations in SSF trading volume in Korea, the flow increase of this ETF might temporarily lead to an unusually high level of backwardation.
  • Also, we may observe a phenomenon known as ‘wag-the-dog’ as the flow of this inverse ETF could act as a triggering factor for a temporary spark.

Shougang Fushan Resources (639 HK): Partial Offer Is Unconditional

By Arun George

  • Shougang Fushan Resources (639 HK) shareholders approved the partial offer to acquire a maximum of 125.0 million shares (2.47% of outstanding shares) at HK$2.40 per share and the whitewash waiver.
  • The partial offer is now unconditional and will close on 12 September. Considering the irrevocables not to tender, a 100% minority participation rate implies a minimum proration of 2.98%.
  • If the partial offer’s acceptance rate mirrors today’s general meeting minorities participation rate of 63.6%, it would imply a minimum proration of 4.69%. 

Singapore’s Rent-To-Own Solar Startup Solar AI Bags US$1.5M Seed Financing

By e27

  • Singapore-based solar-as-a-service startup Solar AI Technologies has secured US$1.5 million in a seed funding round led by Earth Venture Capital with participation from Undivided Ventures, Investible, and climate-tech angel investor David Pardo.
  • The funds will primarily be used to upscale its rent-to-own (RTO) solar programme in the island nation before embarking on regional expansion in the next 12 months.
  • Started in 2020 by Chew (CEO), Gérald Chablowski (CTO), and Luke Ong, Solar AI seeks to make rooftop solar accessible and hassle-free for smaller, underserved property owners by providing them with zero upfront cost.

Rent.com.au Ltd – FY23 Refocus Set to Benefit Future Revenue Generation

By Research as a Service (RaaS)

  • Rent.com.au Limited (ASX:RNT) is a purpose-led company seeking to empower home renters through its technology platform and a growing number of aligned transactional services.
  • The company has reported FY23 revenue of $2.77m, down 17.8% on the previous corresponding period (pcp) but in line with our expectations.
  • The EBITDA loss for the year was $2.48m, an increase of 55.5% on the pcp and a little higher than our forecast for a $2.3m EBITDA loss. 

Schoeller Allibert – 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 assess Schoeller Allibert’s ESG as “Adequate”, in line with its Environmental, Social and Governance scores. Controversies are “Immaterial” and Disclosure is “Adequate”.
  • Schoeller Allibert is a leading manufacturer of returnable transit packaging (RTP) products in Europe.

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Aug 30
0

Daily Brief Industrials: Doosan Robotics, First Trust Dj Internet Ind, Shenzhen International, ZTO Express Cayman , Braille Energy Systems and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Doosan Robotics IPO: The Bull Case
  • Doosan Robotics IPO – Peer Comparison – Has Niche Offerings but Doesn’t Lack Competition
  • Oversold Bounce Underway Amid Consolidation Phase; Buys in IT Consulting, Uranium, Technology
  • Shenzhen Intl (152 HK): Brighter Outlook in 2H23 Not to Be Overlooked
  • ZTO Express Q2 Results: Strong on Volume | Weak on Price | Margins Up in Q2, But H2 Much Tougher
  • BES: Mixed Q3 Financials; Long-Term Thesis Intact

Doosan Robotics IPO: The Bull Case

By Arun George

  • Doosan Robotics (DOOSANROBO KS) is a global industrial and collaborative robotics leader. It has opened the books on an up to US$318 million IPO.   
  • The international bookbuilding will run from 28 August to 15 September, while the domestic book will be open from 11 to 15 September. Pricing will be announced on 19 September.
  • The bull case rests on the market share gains, rapid forecasted growth, the industry’s largest product lineup, rapid expansion in sales channels and key accounts growth.

Doosan Robotics IPO – Peer Comparison – Has Niche Offerings but Doesn’t Lack Competition

By Ethan Aw

  • Doosan Robotics (DOOSANROBO KS) is looking to raise up to US$314m in its Korean IPO. 
  • Doosan Robotics (DR) manufactures and sells collaborative robots (Cobots). The firm’s product portfolio primarily includes different series of robot arms as well as its coffee module. 
  • In our previous notes, we talked about the company’s past performance. In this note, we undertake a peer comparison.

Oversold Bounce Underway Amid Consolidation Phase; Buys in IT Consulting, Uranium, Technology

By Joe Jasper

  • Last week (8/22/23) we discussed our expectations for an oversold bounce due to an overwhelming number of indexes/Sectors/industries testing multi-month supports, combined with Treasury yields and the DXY testing resistance.
  • The bounce has begun with the SPP ending higher last week for the first time in a month, and it is possible we have seen the lows for this pause/pullback.
  • A meaningful correction cannot happen if the SPX is above 4300-4325, but we would not be surprised to see another month or more of consolidation between 4300 and 4600.

Shenzhen Intl (152 HK): Brighter Outlook in 2H23 Not to Be Overlooked

By Osbert Tang, CFA

  • Poor 1H23 result at Shenzhen International (152 HK) should have been anticipated, and we believe there is good room for sharp earnings improvement in 2H23.
  • Completion of logistics projects, more asset value realisation (through REIT and private equity funds), contribution from Yicheng Qiwanli and lower finance costs should underpin outlook.
  • SZI is an asset play with significant upside and this is reflected in the undemanding 0.42x P/B. Against its historical average of 0.67x, such a level is almost -2SD below. 

ZTO Express Q2 Results: Strong on Volume | Weak on Price | Margins Up in Q2, But H2 Much Tougher

By Daniel Hellberg

  • Solid Q2 results from ZTO, with deep unit cost reductions offseting weak pricing
  • But ultimately, Q2/H1 results are merely in-line with guidance — not better, nor worse
  • In this environment, it’s difficult to see what will move ZTO out of recent trading range

BES: Mixed Q3 Financials; Long-Term Thesis Intact

By Atrium Research

  • Braille reported Q3/23 financial results that were mixed compared to our expectations. 
  • Braille Battery remains well positioned to expand internationally and return to its historical sales growth rate of ~15% while expanding gross margin in the process.
  • The results were mixed relative to our expectations, being in line for revenue and adjusted EBITDA but missing on gross margin.

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