Category

Daily Briefs

Aug 27
0

Daily Brief ECM: China Healthcare Weekly (Aug.25) – Anti Corruption Affects IPO and more

By | Daily Briefs, ECM

In today’s briefing:

  • China Healthcare Weekly (Aug.25) – Anti Corruption Affects IPO, TIGIT Revives Again? Neusoft Xikang
  • ECM Weekly (27th August 2023) – ARM, Integral, Doosan, Samhi, JSW, TVS, Zeekr, Coforge, APA

China Healthcare Weekly (Aug.25) – Anti Corruption Affects IPO, TIGIT Revives Again? Neusoft Xikang

By Xinyao (Criss) Wang

  • Anti-Corruption campaign has affected healthcare companies’ IPO. It’s crucial for companies to explain the compliance of selling expenses in IPO approval process. Investors need to be aware of potential risks.
  • Roche posts interim TIGIT OS data after “inadvertent disclosure”, which seems to give investors a glimmer of hope. But for now, we remain cautious about TIGIT based on our analysis.
  • We updated our views on Neusoft Xikang. We still hold a conservative view towards whether Xikang can successfully IPO this time, mainly due to some negative factors and gloomy outlook.

ECM Weekly (27th August 2023) – ARM, Integral, Doosan, Samhi, JSW, TVS, Zeekr, Coforge, APA

By Sumeet Singh

  • Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
  • ARM Holdings finally made its IPO filings public, while Doosan Robotics too kicked of its much awaited listing.
  • In the placement space, Union Bank Of India (UNBK IN) managed to upsize its offering, while APA Group (APA AU) pulled off a non-accretive acquisiton.

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Aug 27
0

Daily Brief Event-Driven: Medical Data Vision (3902) – SBI Upping Their Stake Means Opportunity and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • Medical Data Vision (3902) – SBI Upping Their Stake Means Opportunity
  • Lunit (Specializes in AI-Based Cancer Diagnosis and Treatment): Rights Offering of 202 Billion Won
  • Index Rebalance & ETF Flow Recap: HSCEI, HSI, HSTECH, Yuanta ETFs, China ETFs, REMX, KOSPI
  • (Mostly) Asia-Pac Weekly Risk Arb Wrap: SK Rent A Car, UMW, BPlant, E Guardian, EOflow, Oishi
  • Quiddity A/H Premium Monitor 🦄 (As of 25 Aug 2023)
  • Last Week In Event SPACE: JSR, Intouch/Thaksin, Softbank/ARM, M&A Research, Premier
  • Weekly Deals Digest (27 Aug) – Golden Eagle, Costa, Boustead, UMW, ARM, Integral, S.F. Holding

Medical Data Vision (3902) – SBI Upping Their Stake Means Opportunity

By Travis Lundy

  • On Friday after the close, SBI Holdings (8473 JP) – which currently owns 24.63% of Medical Data Vision (3902 JP) – announced it would buy another 2,043,200 shares.
  • This market purchase would lift them to just under 30% by year-end.
  • There have been similar trades done by others in the past and they were worth looking at.

Lunit (Specializes in AI-Based Cancer Diagnosis and Treatment): Rights Offering of 202 Billion Won

By Douglas Kim

  • On 24 August, Lunit announced a rights offering capital increase of 202 billion won. 
  • Lunit’s current share price is 155,700 won and its market cap is 1.9 trillion won. The expected rights offering price is 30% discount to current price.
  • We have a positive view of Lunit and its rights offering. Lunit is one of the leading companies in Korea that specializes in AI-based cancer diagnosis and treatment solutions.

Index Rebalance & ETF Flow Recap: HSCEI, HSI, HSTECH, Yuanta ETFs, China ETFs, REMX, KOSPI

By Brian Freitas

(Mostly) Asia-Pac Weekly Risk Arb Wrap: SK Rent A Car, UMW, BPlant, E Guardian, EOflow, Oishi

By David Blennerhassett

Quiddity A/H Premium Monitor 🦄 (As of 25 Aug 2023)

By Travis Lundy

  • This week it is changed from H/A Discount to A/H Premium, by popular demand. Some Northbound data is added. We kept the unicorn.
  • Last week saw a win/loss ratio of 21:13. Average recommended pair on the week earned 0.9% if Sunday recos executed Monday close, 1.35% if executed Monday VWAP. 
  • 6 Unwinds and 3 new trades recommended this week. As always, feedback desired to make this even better.

Last Week In Event SPACE: JSR, Intouch/Thaksin, Softbank/ARM, M&A Research, Premier

By David Blennerhassett

Weekly Deals Digest (27 Aug) – Golden Eagle, Costa, Boustead, UMW, ARM, Integral, S.F. Holding

By Arun George

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Aug 27
0

Daily Brief Equity Bottom-Up: Telix Pharmaceuticals (TLX AU): Strong 1H23 Result; Revenue Jumps 9x; 80% Reduction in Net Loss and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Telix Pharmaceuticals (TLX AU): Strong 1H23 Result; Revenue Jumps 9x; 80% Reduction in Net Loss
  • Activist Investor Stirs the Pot: Is Hanesbrands on the Brink of a Comeback? – Key Drivers
  • Marathon Oil Corporation: Projected Capital Program – Are They Aiming Too High? – Major Drivers
  • Occidental Petroleum: Tackling Challenges with Bold Operational Improvements! – Major Drivers
  • Gartner Inc.: Why Enterprise Leaders Can’t Get Enough of Gartner’s Insights! – Major Drivers
  • Stanley Black & Decker Inc.: Breaking Down the Reasons Behind Their Revenue Surge! – Major Drivers
  • Humana Inc.: Pushing the Envelope in Member Experiences! – Major Drivers
  • Exact Sciences Corporation: Cancer Research Through Collaborative Partnerships & Other Drivers
  • Phillips 66: How Strategic Moves Paint a Bright Future Amidst Mixed Results! – Major Drivers
  • Zimmer Biomet Holdings Inc.: Navigating Global Uncertainties with A Unique Growth Strategy! – Major Drivers

Telix Pharmaceuticals (TLX AU): Strong 1H23 Result; Revenue Jumps 9x; 80% Reduction in Net Loss

By Tina Banerjee

  • Telix Pharmaceuticals (TLX AU) reported 1H23 revenue of A$221M, a nine-fold increase on 1H22, reflecting continued growth in sales of its prostate cancer imaging agent, Illuccix.
  • Gross margin improved to 64% in 1H23 from 56% in 1H22. Telix has transitioned to positive earnings on an adjusted EBITDAR basis. Net loss decreased 80% YoY to A$14M.
  • With the increasing adoption in global PSMA PET imaging market, Illuccix has positive outlook. Telix is expected to launch two new products in 2024 for brain and kidney cancer imaging.

Activist Investor Stirs the Pot: Is Hanesbrands on the Brink of a Comeback? – Key Drivers

By Baptista Research

  • This is a special one-time report on Hanesbrands Inc, a company that is internationally recognized for its Hanes underwear and Champion sportswear and has recently garnered the attention of the New York-based hedge fund, Barington Capital Group LP.
  • With its acquisition of a stake in Hanesbrands, which is slightly below 1%, Barington has initiated active dialogues with the company’s board and management.
  • At the heart of their concerns is Hanesbrands’ subpar performance when placed side by side with its industry competitors and the wider market.

Marathon Oil Corporation: Projected Capital Program – Are They Aiming Too High? – Major Drivers

By Baptista Research

  • Marathon Oil delivered a mixed set of results for the previous quarter, with revenues below the analyst consensus.
  • The company reported a strong adjusted free cash flow of $531 million and returned $434 million to shareholders, marking a 10% increase in distributions compared to the previous quarter.
  • In the third quarter, Marathon Oil’s management team expects total company oil and oil equivalent production to either meet or surpass the upper limit of its annual guidance range.

Occidental Petroleum: Tackling Challenges with Bold Operational Improvements! – Major Drivers

By Baptista Research

  • Occidental Petroleum delivered a disappointing set of results as the company could not meet Wall Street’s revenue and earnings expectations.
  • The company’s adjusted profit of $0.68 per diluted share slightly exceeded the reported profit of $0.63.
  • Despite planned maintenance activities across their oil and gas businesses, the company generated over $1 billion of free cash flow for working capital.

Gartner Inc.: Why Enterprise Leaders Can’t Get Enough of Gartner’s Insights! – Major Drivers

By Baptista Research

  • Gartner delivered a strong result and managed an all-around beat in the last quarter, marked by double-digit growth in revenue, along with high single-digit growth in contract value.
  • Additionally, Gartner reported excellent free cash flow during the quarter.
  • The company’s focus on research as its primary revenue segment was highlighted, with significant growth in research revenue during the quarter.

Stanley Black & Decker Inc.: Breaking Down the Reasons Behind Their Revenue Surge! – Major Drivers

By Baptista Research

  • Stanley Black & Decker exceeded analyst expectations in terms of revenue and earnings.
  • Second-quarter revenue decreased from the previous year due to reduced consumer outdoor and DIY volume.
  • Global automotive and aerospace continue to show momentum across Stanley Black & Decker’s industrial end sectors.

Humana Inc.: Pushing the Envelope in Member Experiences! – Major Drivers

By Baptista Research

  • Humana Inc. delivered a solid result and managed an all-around beat in the last quarter, with adjusted earnings per share meeting expectations and positive results from all lines of business, supported by the growth in Medicare Advantage utilization.
  • The company has reaffirmed its full-year guidance, reflecting a significant increase in adjusted EPS over the previous year.
  • In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Exact Sciences Corporation: Cancer Research Through Collaborative Partnerships & Other Drivers

By Baptista Research

  • Exact Sciences Corporation exceeded Wall Street’s revenue and earnings expectations.
  • Revenue increased in the second quarter.
  • Exact Sciences continues to see widespread Cologuard acceptance and traction among health systems.

Phillips 66: How Strategic Moves Paint a Bright Future Amidst Mixed Results! – Major Drivers

By Baptista Research

  • Phillips 66 delivered a mixed set of results in its most recent result, with revenues falling short of Wall Street expectations but above-par earnings.
  • The last quarter was marked by strong operational performance and strategic execution, evident in its adjusted earnings of $1.8 billion.
  • In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Zimmer Biomet Holdings Inc.: Navigating Global Uncertainties with A Unique Growth Strategy! – Major Drivers

By Baptista Research

  • Zimmer Biomet Holdings delivered a strong result and managed an all-around beat last quarter.
  • The company reported increased GAAP diluted earnings per share due to higher revenues and effective cost management.
  • Moreover, the company’s strong operating cash flows and solid balance sheet position provide the strategic flexibility needed for future growth initiatives.

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Aug 27
0

Most Read: Sinopharm Group Co Ltd H, East Buy Holding , ZJLD Group , Trip.com Group , UMW Holdings, Soulbrain, Grab Holdings , iShares MSCI ACWI ETF, Medical Data Vision and more

By | Daily Briefs, Most Read

In today’s briefing:

  • Hang Seng Index Rebalance: Sinopharm (1099 HK) Added, Country Garden (2007 HK) Deleted
  • HSTECH Index Rebalance: East Buy (1797 HK) Replaces AAC Tech (2018 HK); Big Shorts on Both Stocks
  • HSCI Index Rebalance: 22 Adds, 27 Deletes & Changes to Southbound Stock Connect
  • HSCEI Index Rebalance: Trip.com (9961 HK) Replaces CG Services (6098 HK)
  • Sime Darby/UMW: It’s All About Scale
  • Overlooked by the Market: A Compelling Long Short Opportunity in Newly-Listed ETF Rebal in Korea
  • Grab Holdings (GRAB US) – Growth with Scale from a Stable Platform
  • Jackson Hole Nugget: Who cares about shelter? Powell does
  • Key Supports Holding Strong; 10-Year Treasury Yield Below Key Resistance; Buys in Non-Defensives
  • Medical Data Vision (3902) – SBI Upping Their Stake Means Opportunity

Hang Seng Index Rebalance: Sinopharm (1099 HK) Added, Country Garden (2007 HK) Deleted

By Brian Freitas

HSTECH Index Rebalance: East Buy (1797 HK) Replaces AAC Tech (2018 HK); Big Shorts on Both Stocks

By Brian Freitas

HSCI Index Rebalance: 22 Adds, 27 Deletes & Changes to Southbound Stock Connect

By Brian Freitas

  • There are 22 adds and 27 deletes for the Hang Seng Composite Index (HSCI) at the September rebalance to take the number of index constituents down to 518.
  • We expect all 22 inclusions to the HSCI will be added to Stock Connect, while 24 of the 27 HSCI deletions will be removed from Southbound Stock Connect.
  • Since the end of June, shares held though Southbound Connect have increased on 20 of the 27 HSCI deletions and there could be some unwinding in the next two weeks.

HSCEI Index Rebalance: Trip.com (9961 HK) Replaces CG Services (6098 HK)

By Brian Freitas

Sime Darby/UMW: It’s All About Scale

By David Blennerhassett

  • In one of the largest M&A transactions in Malaysia, Sime Darby (SIME MK) intends to acquire a 61.2% stake in UMW Holdings (UMWH MK) from Permodalan Nasional Bhd for RM3.57bn. 
  • Sime Darby is paying RM5/share, a token 9.9% premium to last close, but more like 25% when factoring in apparent news leakage.
  • Once the stake sale is completed, Sime Darby will launch an unconditional MGO for all remaining shares not held. This transaction is expected to be wrapped up in early 2024.

Overlooked by the Market: A Compelling Long Short Opportunity in Newly-Listed ETF Rebal in Korea

By Sanghyun Park

  • In the inaugural constituent selection, FnGuide revealed a noteworthy pattern. Given the smaller market capitalization of the electrolyte suppliers, FnGuide has included only the largest among them in this ETF.
  • SoulBrain, categorized by FnGuide as an electrolyte supplier like Chunbo, has significantly outperformed Chunbo. As a result, there is a considerable likelihood that SoulBrain will replace Chunbo in December.
  • The price impact from ETF rebalancing trading has disappeared substantially in Korea. We should focus on the first rebalancing of newly listed ETFs that haven’t yet established a learning effect.

Grab Holdings (GRAB US) – Growth with Scale from a Stable Platform

By Angus Mackintosh

  • Grab Holdings (GRAB US) released another set of positive results but this time the balance between profitability and growth was well-struck, as it reduced incentives yet increased its market share. 
  • Grab saw GMV growth in both deliveries more notably in mobility, with revenues growing at a faster pace and adjusted EBITDA surprising on the upside, bringing forward breakeven to 3Q2023. 
  • Prospects for 2H2023 look even better with Grab’s affordability initiatives gaining traction and improving retention and profitability.

Jackson Hole Nugget: Who cares about shelter? Powell does

By Andreas Steno

  • Our short and sweet observations from the Jackson Hole opening remarks from Jay Powell.
  • To us, hopes of an explicit pause have been postponed further down the road after this speech.
  • A few highlights:1) Data dependency is still the name of the game – NO promises for further meetings, meaning that consensus does not exist 2) Shelter costs are highlighted, which to me can be seen as a sign that Powell needs an excuse to hike further 3) The Fed is attentive to the risk of the economy running above trend still and monitors the housing rebound closely 4) The lack of spill-overs from the slide in job openings to the unemployment rate puzzles the Fed and they want more data.

Key Supports Holding Strong; 10-Year Treasury Yield Below Key Resistance; Buys in Non-Defensives

By Joe Jasper

  • Last week (Aug. 18) we discussed the 10-year Treasury yield and DXY testing respective resistance (4.3%-4.35% and $103.50-$103.70).
  • As long as no decisive breakouts in the 10-year yield or DXY, we were buyers on the pullback to $93 on MSCI ACWI (ACWI-US).
  • Outside of our overweight countries (Japan, India, Taiwan, Greece), defensive Sectors continue to lag. We highlight buys in Technology, Services, Consumer Discretionary, Industrials, Materials/Energy, and Financials.

Medical Data Vision (3902) – SBI Upping Their Stake Means Opportunity

By Travis Lundy

  • On Friday after the close, SBI Holdings (8473 JP) – which currently owns 24.63% of Medical Data Vision (3902 JP) – announced it would buy another 2,043,200 shares.
  • This market purchase would lift them to just under 30% by year-end.
  • There have been similar trades done by others in the past and they were worth looking at.

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Aug 27
0

Top 10 Highlights from the APAC PE, VC and Startup Ecosystem this Week – 27 Aug 2023

By | Private Markets, Smartkarma Newswire

Top ten highlights from the APAC PE, VC, and startup ecosystem this week:

  1. India’s ISRO Achieves Historic Soft Landing on the Moon – India’s national space agency, ISRO, successfully achieved a soft landing on the Moon’s south pole for the first time.
  2. Zepto Ends India’s Unicorn Drought – Quick delivery startup Zepto becomes India’s first unicorn in nearly three quarters, commanding a valuation of $1.4 billion in its latest funding round.
  3. Dunzo Struggles to Stay Afloat – Indian hyperlocal delivery startup Dunzo, facing financial difficulties, reaches out to investors to raise capital amid delayed salaries and legal notices from unpaid vendors.
  4. Startups Take Measures to Achieve Profitability – Indian startups like Zomato, Swiggy, Paytm, Delhivery, and PolicyBazaar implement cost-cutting measures, layoffs, and diversification of revenue streams to meet investor expectations and achieve profitability.
  5. Decline in Venture-Backed Indian Startup M&A Deals – The value of disclosed M&A deals involving venture-backed Indian startups tumbles by 87% to $323 million in January-July 2023.
  6. Grab Nears Break-Even as Losses Narrow – Southeast Asian super app Grab announces narrowing losses by 74% in Q2, putting the company on track to break even sooner.
  7. GoTo Divests Entertainment Businesses – Indonesian tech giant GoTo narrows net losses in Q2 and decides to divest its entertainment businesses to focus on sustainable growth.
  8. Exploring Indonesia’s Insurtech Sector – Despite its huge potential, the insurtech industry in Indonesia is yet to see a boom due to a lack of awareness and comprehensive product offerings.
  9. Survival Challenges for Vietnamese Social Commerce Startups – Vietnamese social commerce startups face survival challenges despite significant opportunities created by the TikTok boom.
  10. Landmark Family Office Awaits Ideal Time for PE-VC Investments – Family offices, including Landmark Family Office, are scouting for strategies with more manageable downsides before resuming PE-VC investments.

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