Category

Daily Briefs

Apr 18
0

Daily Brief ECM: Jeil M&S IPO Bookbuilding Results Analysis and more

By | Daily Briefs, ECM

In today’s briefing:

  • Jeil M&S IPO Bookbuilding Results Analysis
  • Cloudchain Pre-IPO – The Negatives – But Still Not Convinced
  • Mao Geping Cosmetics Pre-IPO Tearsheet
  • Pre-IPO Belle Fashion Group – Performance Has Picked Up, but Not yet Reversed

Jeil M&S IPO Bookbuilding Results Analysis

By Douglas Kim

  • Jeil M&S reported excellent IPO bookbuilding results. Jeil M&S’s IPO price has been determined at 22,000 won per share (22% higher than the high end of the IPO price range).
  • A total of 2,164 institutional investors participated in this IPO book building. The demand ratio was 646 to 1. Samhyun will start trading on 30 April 2024. 
  • Our base case valuation of Jeil M&S is target price of 24,354 won per share, which is 11% higher than the IPO price.

Cloudchain Pre-IPO – The Negatives – But Still Not Convinced

By Ethan Aw

  • Cloudchain (CC CH) is looking to raise up to US$200m in its upcoming HK IPO. 
  • Cloudchain is an independent industry digital finance platform in China, serving anchor enterprises, chain-related enterprises, and financial institutions.
  • In this note, we will talk about the not-so-positive aspects of the deal.

Mao Geping Cosmetics Pre-IPO Tearsheet

By Clarence Chu

  • Mao Geping Cosmetics (1478187D CH) is looking to raise around US$300m in its upcoming Hong Kong IPO. The bookrunner on the deal is CICC.
  • Mao Geping Cosmetics (MGC) operates in the premium beauty segment. Operating via its two brands, MAOGEPING and Love Keeps, MGC offers a wide range of color cosmetics and skincare products.
  • As per F&S, MGC was the only domestic market player among the top ten premium beauty groups in China, ranking eighth by 2022 retail sales.

Pre-IPO Belle Fashion Group – Performance Has Picked Up, but Not yet Reversed

By Xinyao (Criss) Wang

  • The core of Belle’s transformation is to inject “digitalization” into existing massive store assets, with strategy of “omnichannel+multi brands”. Belle also devotes significant resources to online channels and online-to-offline integration.
  • Benefiting from the DTC retail model, Belle increases the probability of success when launching products. Licensing/acquisition are important ways to empower new brands and promote growth. Belle’s performance has rebounded.
  • However, the path of transformation hasn’t yet been completed. Belle still mainly relies on heavy asset mode and is exposed to inventory risks. There ‘s still room for further improvement.

💡 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


Apr 18
0

Daily Brief Thematic (Sector/Industry): Ohayo Japan | A Healthy Correction and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • Ohayo Japan | A Healthy Correction
  • [Blue Lotus Daily – TMT Update]:PDD US/3690 HK/Douyin/1797 HK/2618 HK/NTES US/TCOM US/ATAT US
  • [Blue Lotus Daily]:1810 HK/HTHT US/ATAT US/300750 SZ/9995 HK
  • Indian Hospitals on Expansion Spree; Sectoral Tailwinds and Financial Stability Provide Impetus
  • Episode 63: The Continued March of Custom Silicon, is it Sustainable?

Ohayo Japan | A Healthy Correction

By Mark Chadwick

  • The market is experiencing its first bout of volatility this year, with the S&P trading below 50-day moving average
  • Toshiba is considering cutting its domestic workforce by 5,000, approximately 7% of its total in Japan, in its latest move to accelerate restructuring
  • ASML’s Q1 orders fall short, reflecting chipmakers’ cautious stance on equipment purchases.

[Blue Lotus Daily – TMT Update]:PDD US/3690 HK/Douyin/1797 HK/2618 HK/NTES US/TCOM US/ATAT US

By Ying Pan

  • PDD US: Temu merchants report a new round of forced price reductions (+)
  • 3690 HK: Meituan Restructures Delivery Business to Boost Efficiency, Refine Operations Amid Slowing Order Growth(+)
  • Douyin/1797 HK/2618 HK/3690 HK: JD Logistics Partners with EastBuy to Launch “Delivery in hours” Service, Directly Competing with Meituan(+/-)

[Blue Lotus Daily]:1810 HK/HTHT US/ATAT US/300750 SZ/9995 HK

By Eric Wen

  • 1810 HK: Xiaomi SU7 confirmed order exceeded 60K, monetization means starting to emerge（/）
  • HTHT US/ATAT US: Orange Crystal Hotel will launch a new version with a goal of reach 750 hotels by 2025, intensifying competition with Atour.（-） 
  • 300750 SZ: GAC announced that its in-house all-solid-state batteries will be put into mass production in 2026（/）

Indian Hospitals on Expansion Spree; Sectoral Tailwinds and Financial Stability Provide Impetus

By Tina Banerjee

  • With long-term structural factors supporting growth, healthcare services market is expected to have a low double-digit CAGR over the next five years.
  • Most of the leading hospitals are operating with high occupancies, which justifies their aggressive plans. Profitable revenue growth and low leverage support their expansion plans.
  • With expanding scale, the players are well positioned to report faster revenue growth and better margins in coming years than their respective historical figures.

Episode 63: The Continued March of Custom Silicon, is it Sustainable?

By The Circuit

  • Google introduces Axion, their new CPU designed for cloud-based workloads
  • Facebook unveils second version of RiSC-V based processor for AI workloads
  • Marvell announces custom projects with another big hyperscaler, highlighting the trend towards custom silicon solutions for AI workloads

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

💡 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


Apr 18
0

Daily Brief Credit: Morning Views Asia: Meituan and more

By | Credit, Daily Briefs

In today’s briefing:

  • Morning Views Asia: Meituan

Morning Views Asia: Meituan

By Leonard Law, CFA

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


Apr 18
0

Daily Brief Equity Bottom-Up: 8802 Mitsubishi Estate – Another Play on Japan RE and Office – Chase the Rally and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • 8802 Mitsubishi Estate – Another Play on Japan RE and Office – Chase the Rally
  • [Miniso (MNSO US, BUY, TP US$34) Target Price Change]: IP Strategy Successfully Drove China Sales
  • Nexon (TSE:3659) – Wednesday, Jan 17, 2024
  • Canara Bank – Radically Lower NPLs and Sharply Expanding Net Profit
  • Regeneron Pharmaceuticals: Bolstering Cell Therapy Research with 2seventy Bio Acquisition! – Major Drivers
  • Pegasystems Inc: Generative AI
  • Las Vegas Sands Corp.: Intense Competition in the Premium Mass Segment & 3 Other Major Challenges In Its Path! – Key Drivers
  • Lumen Technologies: Its Digital Platform Is Harnessing Multibillion-Dollar Opportunity! – Major Drivers
  • SolarEdge Technologies Inc.: Expansion of Commercial Segment & Geographical Shift Changing The Game? – Major Drivers
  • The Sherwin-Williams Company: Can Its Dominant Market Position Last? – Major Drivers

8802 Mitsubishi Estate – Another Play on Japan RE and Office – Chase the Rally

By Jacob Cheng

  • In this insight, we explore Mitsubishi Estate, who is the second largest real estate company in terms of market cap
  • Mitsubishi Estate major business is in office (Tokyo CBD), residential/condo, as well as some retail and hotel
  • Japan stock market is upbeat and saw the largest inflow among Asia YTD.  8802 valuation is not demanding.

[Miniso (MNSO US, BUY, TP US$34) Target Price Change]: IP Strategy Successfully Drove China Sales

By Eric Wen

  • We expect Miniso’s revenue for C1Q/2Q24 to be 1.0%/2.7% higher than consensus due to adequate inventory and strong sales of the Chiikawa series. 
  • We believe Miniso has found a new competency in quickly turning around IP sales through economies of scale in supply chain and store network.
  • We maintain the stock as BUY and raise our TP by US$3 to US$34/ADS.

Nexon (TSE:3659) – Wednesday, Jan 17, 2024

By Value Investors Club

  • Nexon is a leader in the video game virtual worlds industry with an enterprise value of $11.4 billion
  • The company has consistently high EBIT margins and a robust portfolio of popular franchises that have generated billions in revenue
  • Despite being undervalued by the market compared to its peers, Nexon is poised for significant growth and offers potential for future success for investors

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Canara Bank – Radically Lower NPLs and Sharply Expanding Net Profit

By Daniel Tabbush

  • Canara Bank has seen stunning profit expansion over the past several years
  • Lower NPLs can drive lower credit costs to support profit expansion further
  • ROE moved from 11.7% to 17.3% over the past several years

Regeneron Pharmaceuticals: Bolstering Cell Therapy Research with 2seventy Bio Acquisition! – Major Drivers

By Baptista Research

  • Regeneron Pharmaceuticals Inc.’s latest earnings highlighted several critical developments and financial performance data that shape its investment appeal.
  • Among the company’s accomplishments in 2023 were the FDA approval and successful launch of its EYLEA HD, a promising treatment for patients with wet age-related macular degeneration and diabetic eye diseases, which had strong start despite initial delays.
  • Additionally, the company won a notable legal battle to preserve its intellectual property related to EYLEA, which deterred infringements from a biosimilar manufacturer, potentially deterring future biosimilar launches.

Pegasystems Inc: Generative AI

By Baptista Research

  • Pegasystems Inc. has noted robust cash flow growth and value delivered to its clients in Q4 of 2023.
  • The company has adopted a new go-to-market strategy that has been received well by the team, leading to strong customer relationships.
  • The company has focused on AI utilization to introduce industry-changing technologies, which has resulted in increased growth and cash flow.

Las Vegas Sands Corp.: Intense Competition in the Premium Mass Segment & 3 Other Major Challenges In Its Path! – Key Drivers

By Baptista Research

  • Las Vegas Sands Corp.
  • reported that Macao delivered $654 million of EBITDA for the quarter, a significant enhancement since the coronavirus pandemic’s end.
  • According to them, robust growth in both gaming and non-gaming revenues is anticipated, propelled by their substantial share in non rolling table win, rolling table win, and slot ETG win.

Lumen Technologies: Its Digital Platform Is Harnessing Multibillion-Dollar Opportunity! – Major Drivers

By Baptista Research

  • Lumen Technologies’ Fourth Quarter 2023 Earnings revealed significant progress in the company’s business transformation.
  • Led by the efforts of the new executive team under CEO Kathleen Johnson, Lumen indicated that it had met its 2023 EBITDA and free cash flow guidance and had made material progress in its strategic priorities.
  • To strengthen its balance sheet, Lumen entered into an agreement with a majority of its creditors that extends most debt maturities to 2029.

SolarEdge Technologies Inc.: Expansion of Commercial Segment & Geographical Shift Changing The Game? – Major Drivers

By Baptista Research

  • SolarEdge deemed its Q4 2023 and full-year results as clouded by adverse market dynamics and high inventory levels.
  • For Q4, SolarEdge reported revenues of about $316 million, split between $282 million in their solar business and $33 million in non-solar activities.
  • The company shipped 2.2 million power optimizers and 74,000 inverters during the quarter, along with 133-megawatt hours of batteries.

The Sherwin-Williams Company: Can Its Dominant Market Position Last? – Major Drivers

By Baptista Research

  • Sherwin-Williams Company, a global leader in the paint and coatings industry, reported a promising review of their fourth quarter 2023 results and outlook for the first quarter and full year of 2024.
  • The company has experienced positive growth, with sales growing 4.1% to $23.1 billion and adjusted earnings per share growing 18.6% to $10.35 a share.
  • Sherwin-Williams demonstrated robust financial performance during the fourth quarter that has resulted in a record year for the company.

💡 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


Apr 18
0

Daily Brief Event-Driven: Shinko Electric (6967) – Break/Gap Risk Update and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • Shinko Electric (6967) – Break/Gap Risk Update
  • JSR (4185) – Deal Done, Now Back End Arbs Need To Be Card Counters
  • Hang Lung Group: Thoughts On HLP’s Scrip Dividend
  • Hang Lung Properties (101 HK): Scrip Div Helps the Family to Chip Away at Minorities
  • Lynas (LYC AU): Gina’s Stake Revives MP Materials Merger
  • ChiNext/​​​ChiNext50 Index Rebalance Preview: Plenty of Overlap Between the Indices
  • Hollysys (HOLI US): This Is A Buy
  • Lock&Lock Tender Offer: Different Trading Angles Compared to Recent Ssangyong C&E Case
  • Lock & Lock: Affinity Equity Partners Offers a Tender Offer of a 30% Stake at 8,750 Won Per Share
  • Quiddity Leaderboard ASX Jun 24: A Couple of Intra-Review Changes Likely

Shinko Electric (6967) – Break/Gap Risk Update

By Travis Lundy

  • When this deal was announced, it was light. But the timing, JSR influence, large-ish float, ensured FUD would make this trade wide. It traded wider. 
  • 12wks ago, Shinko had much-underperformed peer Ibiden, meaning downside gap risk from undisturbed was negative as spreads were wide. I reco’d a buy. Then 5wks ago, reco’d trimming.
  • Shinko had outperformed Ibiden, and gross spreads had come in 5+% on JSR’s approval. Spreads are now 3% wider than their narrowest, but gap risk has widened as Shinko outperforms.

JSR (4185) – Deal Done, Now Back End Arbs Need To Be Card Counters

By Travis Lundy

  • Today after the close, the results of the JSR Corp (4185 JP) Tender Offer were announced. Bidco JICC-02 obtained 84.36% of the shares out in the Tender Offer. 
  • That means imminent index downweights, delayed index downweights, and theoretically another selldown on the last day of listed existence. 
  • News which came up since the start of the Tender Offer make this a little more difficult than it might have otherwise been. 

Hang Lung Group: Thoughts On HLP’s Scrip Dividend

By David Blennerhassett

  • And eagle-eyed reader spotted Hang Lung Properties (101 HK)‘s scrip dividend option for the FY23 final dividend. That’s the first time I’ve seen HLP provide this alternative. 
  • Over the years, the Chan family and Hang Lung (10 HK) have chipped away at HLG’s and HLP’s minorities. HLP and HLG are currently trading at all-time low P/Bs. 
  • This scrip dividend, which takes a page out of Jardine Matheson (JM SP)‘s playbook, would boost HLG’s stake in HLP to ~63% from 61.24% currently; if opting only for scrip.

Hang Lung Properties (101 HK): Scrip Div Helps the Family to Chip Away at Minorities

By Arun George

  • In its final results on 30 January, the Hang Lung Properties (101 HK) board declared a final dividend of HK$0.60 per share, which can be paid in cash or by scrip.
  • The Chan family’s share of outstanding shares has steadily increased from 53.15% in 2013 to 61.89%. The scrip dividend could increase the family to 63.57% of post-dividend outstanding shares. 
  • The Chan family have plenty of headroom to chip away at minorities before breaching the 25% public float requirements. HPL’s valuation is undemanding, but a privatisation offer is unlikely.

Lynas (LYC AU): Gina’s Stake Revives MP Materials Merger

By David Blennerhassett

  • Lynas Corp Ltd (LYC AU) is the proverbial Aussie battler. Post the 2018 general elections, the new Malaysian government put Lynas on notice it may halt it rare-earth operations. 
  • Since then, Lynas’ Malaysian facility, which cuts into China’s near-monopoly on processing elements for defense/aerospace/EV/electronics industries, has (mostly) operated without substantial disruptions. Profit peaked in FY22; but has since rolled-over.
  • Gina Rhinehart’s Hancock has now disclosed a 5.82% stake in Lynas; having disclosed a 5.3% stake in MP Materials (MP US) earlier this month. Lynas confirmed discussions with MPM in February.

ChiNext/​​​ChiNext50 Index Rebalance Preview: Plenty of Overlap Between the Indices

By Brian Freitas

  • Nearing the end of the review period, we forecast 8 changes for the ChiNext Index (SZ399006 INDEX) and 5 changes for the ChiNext 50 Index in June.
  • There are overlapping names for the two indices and some of the stocks will also have flows from the CSI Smallcap 500 Index – Shang (SH000905 INDEX) trackers.
  • The potential adds have outperformed the potential deletes between 9-10% for both indices over the last month with the deletes dropping a lot more than the adds.

Hollysys (HOLI US): This Is A Buy

By David Blennerhassett

  • On the 8th February 2024, 85% of Hollysys Automation (HOLI US) shareholders present and via proxy, voted for Ascendent Capital’s Offer. After three-plus years, the end was finally in sight.
  • Then crickets. The merger was to complete in the 1Q. On the 15th April, HOLI released an accountant resignation notice. No word on dissenters or regulatory approvals. Shares sold off. 
  • The accountant resignation is a nothing burger. HOLI should lift their game and provide more transparency on the outstanding merger conditions. Still, the spread is attractive. This is a buy. 

Lock&Lock Tender Offer: Different Trading Angles Compared to Recent Ssangyong C&E Case

By Sanghyun Park

  • The tendering price is ₩8,750, roughly 7% higher than the last close. However, Affinity’s commitment makes this event noteworthy.
  • Lock&Lock requires Affinity to target 30%. To reach 95%, securing 25% is needed, much higher than SsangYong C&E, indicating potential price volatility.
  • A second public offering is likely due to the widening gap between the ownership threshold and actual acquisition percentage in Lock&Lock. This could impact prices significantly during the tendering period.

Lock & Lock: Affinity Equity Partners Offers a Tender Offer of a 30% Stake at 8,750 Won Per Share

By Douglas Kim

  • On 17 April, Affinity Equity Partners offered a tender offer of a 30% stake in Lock & Lock at 8,750 won per share.
  • The tender offer period is from 18 April to 14 May.  The number of shares that are included in this tender offer is 13.14 million shares (30.33% of outstanding shares).  
  • Lock & Lock’s share price could trade higher close to the tender offer price of 8,750 won as the date as the end of the tender offer period approaches.

Quiddity Leaderboard ASX Jun 24: A Couple of Intra-Review Changes Likely

By Janaghan Jeyakumar, CFA

  • In this insight, we take a look at the potential index changes for ASX 200, 100, 50, and 20 in the run-up to the June 2024 index rebal event.
  • There are up to two intra-review changes possible between now and the June 2024 review which could triggered by the Silver Lake (SLR AU) and Boral (BLD AU) deals.
  • Separately, I see one ASX 20 change and two ASX 100 changes for the regular rebalance in June 2024.

💡 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


Apr 18
0

Daily Brief Macro: The Rally in Gold: Clear as Day and more

By | Daily Briefs, Macro

In today’s briefing:

  • The Rally in Gold: Clear as Day
  • EA Inflation Subdued Enough for the ECB
  • UK Stuck With High Services Inflation

The Rally in Gold: Clear as Day

By Jeroen Blokland

  • The massive rally in the price of gold coincided with Fed Governor Waller’s speech, in which he stated that he believes the Federal Reserve should buy more T-bills.
  • Many market pundits argue that changing narratives explain historical gold rallies.
  • But digging a bit deeper reveals that, especially since the Great Financial Crisis, the narrative behind gold’s strong performance has been the same and getting stronger.

EA Inflation Subdued Enough for the ECB

By Phil Rush

  • The final EA HICP inflation print confirmed the downside surprise to 2.4% from the flash release. Progress gets more challenging as energy and food base effects wear out.
  • Although services inflation is stuck at 4%, that is far better than the UK’s 6%, and the median inflationary impulse is broadly settling below the ECB’s target.
  • Labour costs might remain inflationary, but the ECB seems to have sufficient confidence to cut in June unless the data surprise significantly to the contrary.

UK Stuck With High Services Inflation

By Phil Rush

  • UK CPI inflation exceeded the consensus by 0.1pp as it only slowed to 3.2% in March, as we forecasted. Services inflation stuck at 6%, and high-frequency impulses increased.
  • Persistently high pay settlements sustain wage and underlying price inflation above target-consistent levels. We only see services slowing below 4.5% in September.
  • We expect the BoE to cut in November after the ECB and Fed. Further resilience in UK and global data could still cause all three to roll back even further.

💡 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


Apr 18
0

Daily Brief Utilities: Naturgy Energy Group SA and more

By | Daily Briefs, Utilities Sector

In today’s briefing:

  • TAQA/Naturgy: Takeover Interest

TAQA/Naturgy: Takeover Interest

By Jesus Rodriguez Aguilar

  • TAQA has admitted considering a full takeover of Naturgy Energy Group SA (NTGY SM) and discussions with CriteriaCaixa regarding a possible cooperation pact, with CriteriaCaixa remaining a shareholder.
  • GIP and CVC have exceeded the typical investment maturity period and may be willing to dispose of their stakes in Naturgy if presented with a good offer.
  • The possibility of corporate actions could bolster the stock from these levels. I assign a >50% probability to a full/partial takeover bid at around €25/26 per share actually materializing.

💡 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


Apr 18
0

Daily Brief Industrials: Jeil Machine & Solution, Old Dominion Freight Line, Severfield PLC, Singapore Post, Sunrun Inc and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Jeil M&S IPO Bookbuilding Results Analysis
  • Old Dominion Freight Line Inc.: Investing In Technology & Capacity For Expansion In 2024 & Beyond! – Major Drivers
  • Severfield – Multiple positives should excite investors
  • kopi-C with SingPost’s Group CFO: “We’re building a Singapore-branded global logistics company”
  • Sunrun Inc: Improved Demand & Storage Adoption Changing The Game! – Major Drivers

Jeil M&S IPO Bookbuilding Results Analysis

By Douglas Kim

  • Jeil M&S reported excellent IPO bookbuilding results. Jeil M&S’s IPO price has been determined at 22,000 won per share (22% higher than the high end of the IPO price range).
  • A total of 2,164 institutional investors participated in this IPO book building. The demand ratio was 646 to 1. Samhyun will start trading on 30 April 2024. 
  • Our base case valuation of Jeil M&S is target price of 24,354 won per share, which is 11% higher than the IPO price.

Old Dominion Freight Line Inc.: Investing In Technology & Capacity For Expansion In 2024 & Beyond! – Major Drivers

By Baptista Research

  • Old Dominion Freight Line released its fourth-quarter earnings.
  • In the quarter, the company saw a slowdown in the domestic economy which affected volume levels.
  • Despite this, the company saw a quarterly revenue and earnings per share increase for the first time in 2023, owing to an increase in the quality of its revenue.

Severfield – Multiple positives should excite investors

By Edison Investment Research

Severfield’s trading update indicates that FY23 results are expected to slightly exceed market expectations and the company ends the year with a record UK and Europe order book. Furthermore, with a positive trading outlook and net debt coming in lower than expected, Severfield has announced a £10m share buyback, highlighting the cash-generative nature of the company and management’s confidence in its position. The stock trades on an FY25 P/E of less than 6x and yields 7%, which we believe appears compelling.

kopi-C with SingPost’s Group CFO: “We’re building a Singapore-branded global logistics company”

By Geoff Howie

  • kopi-C with SingPost’s CFO: “We’re building a Singapore-branded global logistics company” Its Group Chief Financial Officer Vincent Yik explains its strategy.
  • With the decline in demand for postal services over the years, Singapore Post (SingPost), the country’s postal service provider, is pivoting to the logistics sector to survive and thrive, shares its Group Chief Financial Officer Vincent Yik.

Sunrun Inc: Improved Demand & Storage Adoption Changing The Game! – Major Drivers

By Baptista Research

  • Sunrun is a renewable energy company that had a strong fourth quarter and a full-year result in 2023.
  • The company exceeded its guidance on storage capacity installation and landed in its guidance range on installed solar capacity.
  • As a result, there were significant increases in its subscriber values, up 7% from Q3 and 18% year-over-year.

💡 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


Apr 18
0

Daily Brief TMT/Internet: Shinko Electric Industries, Hollysys Automation Technologies, Codan, Nexon, Cloudchain, Lumen Technologies, Pegasystems Inc, SolarEdge Technologies , Next 15 Group , Paychex Inc and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Shinko Electric (6967) – Break/Gap Risk Update
  • Hollysys (HOLI US): This Is A Buy
  • Quiddity Leaderboard ASX Jun 24: A Couple of Intra-Review Changes Likely
  • Nexon (TSE:3659) – Wednesday, Jan 17, 2024
  • Cloudchain Pre-IPO – The Negatives – But Still Not Convinced
  • Lumen Technologies: Its Digital Platform Is Harnessing Multibillion-Dollar Opportunity! – Major Drivers
  • Pegasystems Inc: Generative AI
  • SolarEdge Technologies Inc.: Expansion of Commercial Segment & Geographical Shift Changing The Game? – Major Drivers
  • Next 15 Group – Baked in AI opportunities
  • Paychex Inc.: Expanding Digital Capabilities & Macro Factors Influencing Its Growth! – Major Drivers

Shinko Electric (6967) – Break/Gap Risk Update

By Travis Lundy

  • When this deal was announced, it was light. But the timing, JSR influence, large-ish float, ensured FUD would make this trade wide. It traded wider. 
  • 12wks ago, Shinko had much-underperformed peer Ibiden, meaning downside gap risk from undisturbed was negative as spreads were wide. I reco’d a buy. Then 5wks ago, reco’d trimming.
  • Shinko had outperformed Ibiden, and gross spreads had come in 5+% on JSR’s approval. Spreads are now 3% wider than their narrowest, but gap risk has widened as Shinko outperforms.

Hollysys (HOLI US): This Is A Buy

By David Blennerhassett

  • On the 8th February 2024, 85% of Hollysys Automation (HOLI US) shareholders present and via proxy, voted for Ascendent Capital’s Offer. After three-plus years, the end was finally in sight.
  • Then crickets. The merger was to complete in the 1Q. On the 15th April, HOLI released an accountant resignation notice. No word on dissenters or regulatory approvals. Shares sold off. 
  • The accountant resignation is a nothing burger. HOLI should lift their game and provide more transparency on the outstanding merger conditions. Still, the spread is attractive. This is a buy. 

Quiddity Leaderboard ASX Jun 24: A Couple of Intra-Review Changes Likely

By Janaghan Jeyakumar, CFA

  • In this insight, we take a look at the potential index changes for ASX 200, 100, 50, and 20 in the run-up to the June 2024 index rebal event.
  • There are up to two intra-review changes possible between now and the June 2024 review which could triggered by the Silver Lake (SLR AU) and Boral (BLD AU) deals.
  • Separately, I see one ASX 20 change and two ASX 100 changes for the regular rebalance in June 2024.

Nexon (TSE:3659) – Wednesday, Jan 17, 2024

By Value Investors Club

  • Nexon is a leader in the video game virtual worlds industry with an enterprise value of $11.4 billion
  • The company has consistently high EBIT margins and a robust portfolio of popular franchises that have generated billions in revenue
  • Despite being undervalued by the market compared to its peers, Nexon is poised for significant growth and offers potential for future success for investors

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Cloudchain Pre-IPO – The Negatives – But Still Not Convinced

By Ethan Aw

  • Cloudchain (CC CH) is looking to raise up to US$200m in its upcoming HK IPO. 
  • Cloudchain is an independent industry digital finance platform in China, serving anchor enterprises, chain-related enterprises, and financial institutions.
  • In this note, we will talk about the not-so-positive aspects of the deal.

Lumen Technologies: Its Digital Platform Is Harnessing Multibillion-Dollar Opportunity! – Major Drivers

By Baptista Research

  • Lumen Technologies’ Fourth Quarter 2023 Earnings revealed significant progress in the company’s business transformation.
  • Led by the efforts of the new executive team under CEO Kathleen Johnson, Lumen indicated that it had met its 2023 EBITDA and free cash flow guidance and had made material progress in its strategic priorities.
  • To strengthen its balance sheet, Lumen entered into an agreement with a majority of its creditors that extends most debt maturities to 2029.

Pegasystems Inc: Generative AI

By Baptista Research

  • Pegasystems Inc. has noted robust cash flow growth and value delivered to its clients in Q4 of 2023.
  • The company has adopted a new go-to-market strategy that has been received well by the team, leading to strong customer relationships.
  • The company has focused on AI utilization to introduce industry-changing technologies, which has resulted in increased growth and cash flow.

SolarEdge Technologies Inc.: Expansion of Commercial Segment & Geographical Shift Changing The Game? – Major Drivers

By Baptista Research

  • SolarEdge deemed its Q4 2023 and full-year results as clouded by adverse market dynamics and high inventory levels.
  • For Q4, SolarEdge reported revenues of about $316 million, split between $282 million in their solar business and $33 million in non-solar activities.
  • The company shipped 2.2 million power optimizers and 74,000 inverters during the quarter, along with 133-megawatt hours of batteries.

Next 15 Group – Baked in AI opportunities

By Edison Investment Research

Next 15 Group’s net revenues grew 2.5% in the year to January, despite difficult markets. Adjusted operating margin rose from 20.2% to 21.0%, helped by head office cost savings. In common with much of the sector, spending by tech clients was soft, down 17% like-for-like. The group did well, though, in growing spend from non-tech clients, up 11%, making for a strong overall performance in a market beset by ongoing macro uncertainty. Next 15 has been building its AI capabilities for some time and this is now starting to show in efficiency and margin. It has the balance sheet strength to keep investing here, internally and through M&A, which should stand it in good stead as client confidence improves.

Paychex Inc.: Expanding Digital Capabilities & Macro Factors Influencing Its Growth! – Major Drivers

By Baptista Research

  • Paychex, in its third quarter, reported a total revenue growth of 4%, which was dampened by a lower contribution from its Employee Retention Tax Credit (ERTC) service, compared to the previous year.
  • However, the company stated that by eliminating this impact, the total revenue grew by 7% during the quarter.
  • Factors such as the winding down of the ERTC program, moderated employment growth within Paychex’s client base, and marginally lower realized rates resulted in stronger headwinds during this quarter than the company had anticipated.

💡 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


Apr 18
0

Daily Brief Energy/Materials: JSR Corp, Lynas Corp Ltd, Lock&Lock, Sherwin Williams Co, Rpm International, State Gas Ltd, Arcadium Lithium , TotalEnergies , Kinder Morgan, MPLX LP and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • JSR (4185) – Deal Done, Now Back End Arbs Need To Be Card Counters
  • Lynas (LYC AU): Gina’s Stake Revives MP Materials Merger
  • Lock&Lock Tender Offer: Different Trading Angles Compared to Recent Ssangyong C&E Case
  • The Sherwin-Williams Company: Can Its Dominant Market Position Last? – Major Drivers
  • RPM International: Investment In Asian Market & Economic Growth & 5 Fundamental Factors Driving Its Performance! – Financial Forecasts
  • State Gas – Completion Commissioning and a Contract
  • Arcadium Lithium – When one plus one equals three
  • TotalEnergies SE: Securing Drilling Costs Through Innovative Solutions! – Major Drivers
  • Kinder Morgan: Changing The Energy Infrastructure Game With The South Texas Midstream Assets Acquisition! – Major Drivers
  • MPLX LP: Strategic Asset Leverage & Competitive Positioning! – Major Drivers

JSR (4185) – Deal Done, Now Back End Arbs Need To Be Card Counters

By Travis Lundy

  • Today after the close, the results of the JSR Corp (4185 JP) Tender Offer were announced. Bidco JICC-02 obtained 84.36% of the shares out in the Tender Offer. 
  • That means imminent index downweights, delayed index downweights, and theoretically another selldown on the last day of listed existence. 
  • News which came up since the start of the Tender Offer make this a little more difficult than it might have otherwise been. 

Lynas (LYC AU): Gina’s Stake Revives MP Materials Merger

By David Blennerhassett

  • Lynas Corp Ltd (LYC AU) is the proverbial Aussie battler. Post the 2018 general elections, the new Malaysian government put Lynas on notice it may halt it rare-earth operations. 
  • Since then, Lynas’ Malaysian facility, which cuts into China’s near-monopoly on processing elements for defense/aerospace/EV/electronics industries, has (mostly) operated without substantial disruptions. Profit peaked in FY22; but has since rolled-over.
  • Gina Rhinehart’s Hancock has now disclosed a 5.82% stake in Lynas; having disclosed a 5.3% stake in MP Materials (MP US) earlier this month. Lynas confirmed discussions with MPM in February.

Lock&Lock Tender Offer: Different Trading Angles Compared to Recent Ssangyong C&E Case

By Sanghyun Park

  • The tendering price is ₩8,750, roughly 7% higher than the last close. However, Affinity’s commitment makes this event noteworthy.
  • Lock&Lock requires Affinity to target 30%. To reach 95%, securing 25% is needed, much higher than SsangYong C&E, indicating potential price volatility.
  • A second public offering is likely due to the widening gap between the ownership threshold and actual acquisition percentage in Lock&Lock. This could impact prices significantly during the tendering period.

The Sherwin-Williams Company: Can Its Dominant Market Position Last? – Major Drivers

By Baptista Research

  • Sherwin-Williams Company, a global leader in the paint and coatings industry, reported a promising review of their fourth quarter 2023 results and outlook for the first quarter and full year of 2024.
  • The company has experienced positive growth, with sales growing 4.1% to $23.1 billion and adjusted earnings per share growing 18.6% to $10.35 a share.
  • Sherwin-Williams demonstrated robust financial performance during the fourth quarter that has resulted in a record year for the company.

RPM International: Investment In Asian Market & Economic Growth & 5 Fundamental Factors Driving Its Performance! – Financial Forecasts

By Baptista Research

  • RPM International’s third-quarter fiscal 2024 results marked their ninth consecutive quarter of record sales and earnings before interest and taxes (EBIT) results, driven by the company’s operational improvement initiatives – the MAP 2025.
  • This positive momentum was achieved, notwithstanding lower sales volumes in the Consumer and Specialty Products segments.
  • Performance Coatings Group and Construction Products Group led sales growth, benefiting from strong demand from infrastructure and building projects.

State Gas – Completion Commissioning and a Contract

By Research as a Service (RaaS)

  • With completion, commissioning and a contract secured, first gas is just around the bend.
  • Critically, with the company on the cusp of first gas, it holds first mover advantage over peer group projects where first gas may well be 2026 or later.
  • We assign a NAV of $198m or $0.72/share (down from $0.74/share due to spot gas price adjustment) to GAS against a reference share price of $0.15/share.

Arcadium Lithium – When one plus one equals three

By Edison Investment Research

Alongside Albemarle and SQM, Arcadium Lithium is the third largest producer of downstream lithium chemicals outside China, capturing the full value chain from lithium resource to battery-grade lithium chemicals. The company has strong exposure to high value-add lithium products and boasts a pipeline of advanced development projects that could potentially more than triple its lithium capacity by 2030. Thanks to its established low-cost asset base and cash flow-generative business, Arcadium should be one of the main beneficiaries of the current cyclical lithium market downturn. Coupled with its strong growth profile, the company is well-positioned to capitalise on the inevitable recovery in lithium demand, driven by the secular decarbonisation trends.

TotalEnergies SE: Securing Drilling Costs Through Innovative Solutions! – Major Drivers

By Baptista Research

  • TotalEnergies’s latest earnings indicates a strong balance.
  • By executing their two-pillar strategy consistently, the firm has demonstrated a significant increase in cash flows compared to the previous year, offering a capacity for growth in energy production.
  • TotalEnergies recorded an adjusted net income shareholder share of $23 billion and an IFRS net income above $21 billion in 2023.

Kinder Morgan: Changing The Energy Infrastructure Game With The South Texas Midstream Assets Acquisition! – Major Drivers

By Baptista Research

  • Kinder Morgan’s fourth-quarter earnings conference call highlighted the company’s robust financial outlook for 2024.
  • Richard Kinder, Executive Chairman of Kinder Morgan, projected substantial growth in EBITDA, EPS, and DCF per share for the year ahead, supported by exceptional growth expected in natural gas production and demand, primarily driven by LNG exports and exports to Mexico.
  • The company’s strategic expansion of its Natural Gas segment through CapEx and acquisitions reportedly contributed significantly to its bottom-line performance.

MPLX LP: Strategic Asset Leverage & Competitive Positioning! – Major Drivers

By Baptista Research

  • MPLX revealed their fourth quarter results for fiscal 2023, accompanied by an updated outlook for 2024.
  • Moreover, the commentary also discussed recent growth executed in strategic priorities as well as minor potential acquisitions.
  • In terms of 2023 results, MPLX had a strong year throughout, successfully executing its strategic priorities.

💡 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