Category

Daily Briefs

Feb 07
0

Daily Brief Health Care: Japan Eyewear Holdings , Aarti Drugs Ltd, Zimmer Biomet Holdings , Allakos Inc, TuHURA Biosciences, Quest Diagnostics, Aardvark Therapeutics, Evaxion Biotech A/S, Sionna Therapeutics, SK Biopharmaceuticals and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • TOPIX Inclusions: Who Is Ready (Feb 2025)
  • The Beat Ideas: Aarti Drugs Revival
  • Paragon 28 Acquisition by Zimmer Biomet: Evaluating the Free CVR Opportunity and Growth Potential
  • Evaluating Allakos: Strategic Review, NOL Potential, and Kevin Tang’s Activist Stake Amidst Biopharma Challenges
  • TuHURA Biosciences, Inc. – Initiating an Immune Response
  • Quest Diagnostics: Enhanced Offerings In Cardiometabolic Testing & Autoimmune Disorders Catalyzing Growth!
  • Aardvark Therapeutics (AARD): Obesity Related Biotech Seeking $85m After Setting Terms for IPO
  • EVAX: Bolsters Balance Sheet
  • Sionna Therapeutics Inc. (SION): Biotech Guiding to High-End Pricing; Expecting Strong Outcome
  • SK Biopharmaceuticals (326030 KS): Records Maiden Profit in 2024; Momentum to Continue

TOPIX Inclusions: Who Is Ready (Feb 2025)

By Janaghan Jeyakumar, CFA

  • Quiddity’s “Who is Ready” series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
  • Japan Eyewear Holdings (5889 JP) and Core Concept Technologies Inc (4371 JP) continue to be in our watchlist of pre-event candidates for TOPIX Inclusions.
  • Separately, the TOPIX Liquidity factor removal event will take place in April 2025 and there could be some positive index flows for Tokyo Metro (9023 JP) during this event.

The Beat Ideas: Aarti Drugs Revival

By Sudarshan Bhandari

  • Received US FDA Approval for both Tarapur & Baddi Facility & moving to regulated market.
  • Increase in revenues & margins with the US FDA approvals & Many products are backward integration or import substitution which is expected to boost demand
  • US entry to allow product & bottomline expansion and would also focus on increasing market presence from semi-regulated markets along with regulated markets

Paragon 28 Acquisition by Zimmer Biomet: Evaluating the Free CVR Opportunity and Growth Potential

By Dalius Tauraitis

  • Paragon 28 is being acquired by Zimmer Biomet for $13/share in cash plus a non-transferable CVR tied to 2026 revenue.
  • The CVR pays up to $1/share if Paragon’s revenue reaches $361m, requiring a 19% CAGR over two years.
  • The merger is supported by management and faces minimal regulatory hurdles, with DaCosta incentivized to achieve CVR targets.

Evaluating Allakos: Strategic Review, NOL Potential, and Kevin Tang’s Activist Stake Amidst Biopharma Challenges

By Dalius Tauraitis

  • Kevin Tang holds a 10% stake in Allakos, valuing its cash balance and nearly $1 billion in federal NOLs.
  • Allakos estimates $35-$40 million cash by June 2025, with restructuring costs of $34-$38 million.
  • Potential reverse merger could value Allakos at $0.45-$0.5/share, considering NOLs and cash after expenses.

TuHURA Biosciences, Inc. – Initiating an Immune Response

By Zacks Small Cap Research

  • TuHURA is a clinical-stage, oncology-focused biotechnology company ad-vancing innate immune agonists, checkpoint inhibitors & antibody-drug conjugates (ADCs).
  • It offers the IFx platform technology featuring the IFx-2.0 tumoral injection delivery approach for Merkel cell carcinoma (MCC) & the IFx-3.0 intravenous delivery approach for lymphoma.
  • IFx encodes a bacterial protein to be expressed in cancer cells, activating the innate immune system and subsequent cascade that may eliminate the tumor.

Quest Diagnostics: Enhanced Offerings In Cardiometabolic Testing & Autoimmune Disorders Catalyzing Growth!

By Baptista Research

  • Quest Diagnostics Inc. reported strong financial performance for the fourth quarter and full year of 2024, driven primarily by revenue growth from acquisitions and robust organic growth.
  • Revenue for the fourth quarter increased by 14.5% to $2.62 billion, with organic revenue growth accounting for nearly 5%.
  • This growth was supported by the completion of eight acquisitions within the year, including LifeLabs in Canada and several hospital outreach lab businesses in the U.S. These acquisitions bolstered the company’s market position, particularly within the physician and hospital channels, and expanded its geographic reach.

Aardvark Therapeutics (AARD): Obesity Related Biotech Seeking $85m After Setting Terms for IPO

By IPO Boutique

  • The company set terms for an IPO on Thursday seeking up to $85m if the offering prices at the middle of the ($16-$18) range. 
  • Aardvark Therapeutics develops novel, small-molecule therapeutics to activate innate homeostatic pathways for the treatment of metabolic diseases.
  • Their lead product candidate is an oral gut-restricted small-molecule agonist of certain TAS2Rs expressed in the gut lumen and have initiated a Phase 3 trial for hyperphagia associated with PWS.

EVAX: Bolsters Balance Sheet

By Zacks Small Cap Research

  • EVAX is a clinical stage company that has proprietary AI models designed to more efficiently and more accurately target much-needed treatments.
  • The company has two streams of possible revenue: from the treatments themselves and from the licensing of the AI technology.
  • The company announced that it has close a public offering of almost four million American Depository Shares, resulting in an additional of over $10 million in cash to its balance sheet.

Sionna Therapeutics Inc. (SION): Biotech Guiding to High-End Pricing; Expecting Strong Outcome

By IPO Boutique

  • The current price guidance is pointing to the high-end of the prevailing $16-$18 range with allocations expected to be “cut-back”.
  • This biotech is extremely well-backed with RA Capital entering the IPO as the company’s largest shareholder (29.2% pre-IPO stake).
  • Clinical-Stage biopharmaceutical company on a mission to revolutionize the current treatment paradigm for cystic fibrosis (“CF”) patients is set to go public on Friday. 

SK Biopharmaceuticals (326030 KS): Records Maiden Profit in 2024; Momentum to Continue

By Tina Banerjee

  • SK Biopharmaceuticals (326030 KS) reported first-ever annual operating and net profit of KRW96B and KRW227B, respectively in 2024. In 2023, operating and net loss stood at KRW38B and KRW35B, respectively.
  • The company has turned profitable in 2024 driven by continued momentum of Xcopri in U.S. For 2024, Xcopri recorded revenue of $321.6M in the U.S., exceeding guidance of $300–320M.
  • For 2025, SKBP has guided for Xcopri U.S. revenue of $420–450M (~KRW570–610B), up 31–40% YoY. The company expects 2025 SG&A expenses will be KRW490B, up 20% YoY.

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Feb 07
0

Daily Brief Financials: Samsung Card Co, Copper Property CTL Pass Through Trust, Sino-Ocean Group, Housing and Urban Development Corporation Limited and more

By | Daily Briefs, Financials

In today’s briefing:

  • Making a Call on when Samsung’s Financial Arms Will Drop Their Value-Up Announcements
  • CPPTL Real Estate Trust Liquidation: Potential 28-45% Upside Amid Portfolio Sale
  • Lucror Analytics – Morning Views Asia
  • Hudco’s Tough Time: Lower Capex, PMAY

Making a Call on when Samsung’s Financial Arms Will Drop Their Value-Up Announcements

By Sanghyun Park

  • Samsung Life’s value-up disclosure: we should expect it with Q4 earnings on the 20th—every local desk and media outlet is eyeing that date.
  • Unlike Samsung Life, Samsung Securities is tight-lipped. Earnings are set for Feb 14, but expect the value-up announcement after Feb 20, likely before early March and AGM season.
  • Tomorrow’s unlikely for Samsung Card’s value-up disclosure. It’s holding off until the card fee recalculation is finalized—likely after February or before mid-March, ahead of AGM season.

CPPTL Real Estate Trust Liquidation: Potential 28-45% Upside Amid Portfolio Sale

By Dalius Tauraitis

  • CPPTL, a real estate trust, is liquidating 121 JC Penney-leased properties, potentially offering 28%-45% upside by 2025.
  • Major shareholders, primarily former JC Penney creditors, own 70% of CPPTL shares, indicating potential eagerness to exit.
  • CPPTL properties are marketed with Newmark; initial offers expected by February 26, targeting 7%-8% cap rates.

Lucror Analytics – Morning Views Asia

By Leonard Law, CFA

  • In today’s Morning Views publication we comment on developments of the following high yield issuers: Sino-Ocean
  • In the US, the ISM services index declined to 52.8 (54.0 e / 54.0 revised p) in January. This was driven by decreases in the new orders and prices paid components, albeit the employment component edged up to 52.3 (51.3 revised p). Separately, the January (final) S&P services PMI fell to 52.9 (56.8 p), with the composite PMI dropping to 52.7 (55.4 p).
  • Meanwhile, the trade deficit expanded to USD 98.4 bn (USD 96.8 bn e / USD 78.9 bn revised p), the second largest deficit on record. Exports decreased 2.6% m-o-m to USD 267 bn, while imports jumped 3.5% to a record high of USD 365 bn due to import front-loading ahead of expected new tariffs.

Hudco’s Tough Time: Lower Capex, PMAY

By Nimish Maheshwari

  • Government capex is revised to Rs. 10.2 lakh crore—8.3% below target—with significant PMAY allocation cuts amid revised funding for affordable housing projects.
  • Lower capex and reduced PMAY funds signal execution challenges in housing, potentially straining Housing and Urban Development Corporation Limited (HUDCO IN)’s growth targets despite its strong loan expansion plans.
  • Short-Term funding cuts create uncertainty, but HUDCO’s strategic focus on low-risk lending and ambitious loan targets suggests a promising long-term outlook.

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Feb 07
0

Daily Brief Consumer: Toyo Sugar Refining, Yamaha Corp, Englewood Lab, Whirlpool of India, Guming Holdings, Britannia Industries, BrainBees Solutions, Mercari , Euro Pratik Sales Ltd, Cavco Industries and more

By | Consumer, Daily Briefs

In today’s briefing:

  • WellNeo Sugar (2117) To Buy Toyo Sugar (2107) – Too Cheap, No Synergies Paid, but Too Small
  • Yamaha Corp (7951) BIG Buyback May Be Followed By More Later
  • A Partial Tender Offer of Englewood Lab by Cosmecca Korea
  • Whirlpool of India OFS Early Look – Another Large Selldown by Parent
  • Guming Holdings (Good Me) IPO Preview
  • NIFTY50 Index Rebalance Preview: Adds Secure; Tight Among the Deletes
  • Brainbees Solutions (FirstCry) – US$2bn IPO Lockup Expiry with Most Investors Still in the Money
  • Mercari (4385) | Profitability on the Rise with More Levers to Pull
  • Euro Pratik Sales Ltd Pre-IPO Tearsheet
  • Cavco Industries: Expanding Financial Services Segment to Help Tilt The Competitive Dynamics In Its Favor!

WellNeo Sugar (2117) To Buy Toyo Sugar (2107) – Too Cheap, No Synergies Paid, but Too Small

By Travis Lundy

  • WellNeo Sugar (2117) today announced a deal to buy Toyo Sugar Refining (2107 JP) at a 27% premium. This is a small ¥11bn deal where insiders own 45%. 
  • Normally I wouldn’t even talk about a deal this small but this one has something going for it. Two things actually. 
  • And readers will have to read all the way down to the conclusions to find out the key one, but the setup is that it is too cheap.

Yamaha Corp (7951) BIG Buyback May Be Followed By More Later

By Travis Lundy

A Partial Tender Offer of Englewood Lab by Cosmecca Korea

By Douglas Kim

  • On 6 February, Cosmecca Korea (241710 KS) launched a partial tender offer on Englewood Lab (950140 KS).
  • Cosmecca Korea announced that it plans to purchase 11% (2.185 million) of Englewood Lab’s outstanding shares at the tender offer price of 10,000 won. 
  • It appears that this partial tender offer is an attempt by Cosmecca Korea to increase its stake in Englewood Lab even further, capitalizing on the lower share price.

Whirlpool of India OFS Early Look – Another Large Selldown by Parent

By Akshat Shah

  • Whirlpool Corp (WHR US) is looking to raise about INR 46bn (US$530m) from selling a stake of about 31% in Whirlpool of India Limited (WHIRL).
  • In an announcement released on Jan 30, 2025, the firm mentioned its ultimate parent’s intention to sell down its interest in WHIRL from 51% to 20% by mid-to-late 2025.
  • In this note, we talk about the past deal performance and other deal dynamics.

Guming Holdings (Good Me) IPO Preview

By Douglas Kim

  • Guming Holdings (1364 HK) (Good Me) is getting ready to complete its IPO on the Hong Kong Exchange in February.
  • At the high end of the IPO price range, the listing will raise about HK$1.58 billion (US$220 million).  
  • Guming is a ready-to-drink beverage company specializing in freshly made tea beverages.

NIFTY50 Index Rebalance Preview: Adds Secure; Tight Among the Deletes

By Brian Freitas

Brainbees Solutions (FirstCry) – US$2bn IPO Lockup Expiry with Most Investors Still in the Money

By Sumeet Singh

  • BrainBees Solutions (FIRSTCRY IN) (FirstCry) raised around US$500m in its August 2024 India IPO. The lockup on its pre-IPO investors is set to expire soon.
  • In India, FirstCry sells Mothers’, Babies’ and Kids’ products through its online platform, company-owned modern stores, franchisee-owned modern stores and general trade retail distribution.
  • In this note, we will talk about the lockup dynamics and possible placement.

Mercari (4385) | Profitability on the Rise with More Levers to Pull

By Mark Chadwick

  • Record Margins: Q2 OP surged 82% YoY to ¥7.1b, with Japan profitability up and losses narrowing in Fintech and the US.
  • US Breakeven Play: Aggressive cost-cutting led to 12ppt margin improvement; if growth stalls, a sale or exit could boost margins by 200bps.
  • Fintech Upside: Losses peaked last year, with 16ppt OPM improvement; breaking even could add 400bps to group margins.

Euro Pratik Sales Ltd Pre-IPO Tearsheet

By Rosita Fernandes

  • Euro Pratik Sales Ltd (7778885Z IN) (EPS) is looking to raise about US$100m in its upcoming India IPO. The bookrunners for the deal are Axis, Dam Capital.
  • The company operates in the decorative wall panel and decorative laminates industry as a prominent seller and marketer of Decorative Wall Panels and Decorative Laminates. 
  • According to the Technopak Report, has established itself as one of the largest organized Wall Panel brands, with a market share of 15.87% by revenue.

Cavco Industries: Expanding Financial Services Segment to Help Tilt The Competitive Dynamics In Its Favor!

By Baptista Research

  • Cavco Industries, Inc. reported strong third-quarter results for fiscal year 2025, underscored by a combination of improved performance in its financial services and factory-built housing segments.
  • The company’s EPS rose significantly by 30% sequentially, reaching $6.90.
  • Notably, the Financial Services segment recorded its strongest quarterly profit in four years, attributable to more effective underwriting, higher insurance premiums, and favorable weather conditions leading to lower claims.

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Feb 07
0

Most Read: Shibaura Electronics, Shanghai Allist Pharmaceuticals, Hexaware Technologies, Japan Eyewear Holdings , Toyo Sugar Refining, Yamaha Corp, WH Group, Bharat Petroleum Corp, Englewood Lab, Samsung Card Co and more

By | Daily Briefs, Most Read

In today’s briefing:

  • Taiwan’s Yageo (2327 TT) Announces Hostile Tender on Shibaura Electronics (6957 JP) – I Have 🍿🍿
  • STAR50/STAR100 Index Rebalance Preview: One Is Meh; The Other Is👍
  • Hexaware Technologies IPO: Delisted in 2020; Now Looking to Raise US$1bn
  • TOPIX Inclusions: Who Is Ready (Feb 2025)
  • WellNeo Sugar (2117) To Buy Toyo Sugar (2107) – Too Cheap, No Synergies Paid, but Too Small
  • Yamaha Corp (7951) BIG Buyback May Be Followed By More Later
  • StubWorld: WH Group (288 HK) IPOs Smithfield (SFD US). Now What?
  • Quiddity Leaderboard NIFTY Mar 25: Final Expectations; Expected DELs Could Underperform Index
  • A Partial Tender Offer of Englewood Lab by Cosmecca Korea
  • Making a Call on when Samsung’s Financial Arms Will Drop Their Value-Up Announcements

Taiwan’s Yageo (2327 TT) Announces Hostile Tender on Shibaura Electronics (6957 JP) – I Have 🍿🍿

By Travis Lundy

  • Today, Taiwanese passive components maker Yageo Corporation (2327 TT) announced its Board had approved the launching of a Tender on Shibaura Electronics (6957 JP). 
  • It turns out YAGEO approached them in October, Shibaura stonewalled for 3mos, required an NDA to meet, and refused to budge. METI Corporate Takeover Guidelines were likely ignored.
  • This could set off a flurry of activity including competition, an auction, promises of dividends, and who knows what. It will be exciting but it’s not C&F.

STAR50/STAR100 Index Rebalance Preview: One Is Meh; The Other Is👍

By Brian Freitas

  • With the review period complete, we forecast 3 changes for the SSE STAR50 (STAR50 INDEX) and 8 changes for the STAR100 Index. There are a few migrations between the indices.
  • We estimate turnover of 3.8% for the SSE STAR50 (STAR50 INDEX) and 9.9% for the STAR100 Index. The estimated net round-trip trade is CNY 13bn (US$1.8bn).
  • The forecast adds to the STAR50 INDEX have underperformed the forecast deletes. For the STAR100 Index outright changes, the forecast adds have outperformed the forecast deletes by a lot.

Hexaware Technologies IPO: Delisted in 2020; Now Looking to Raise US$1bn

By Brian Freitas

  • In November 2020, HT Global IT Solutions acquired all the shares it did not own in Hexaware Technologies (HEXW IN) and delisted the stock from the NSE and BSE.
  • Now, Carlyle Group is looking to raise INR 87.5bn by selling stock at a price range of INR 674-708/share, valuing Hexaware Technologies (HEXW IN) at US$4.8bn.
  • The stock will not get Fast Entry to global indices. Inclusion at regular rebalances should take place in May and September, though the impact will be limited.

TOPIX Inclusions: Who Is Ready (Feb 2025)

By Janaghan Jeyakumar, CFA

  • Quiddity’s “Who is Ready” series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
  • Japan Eyewear Holdings (5889 JP) and Core Concept Technologies Inc (4371 JP) continue to be in our watchlist of pre-event candidates for TOPIX Inclusions.
  • Separately, the TOPIX Liquidity factor removal event will take place in April 2025 and there could be some positive index flows for Tokyo Metro (9023 JP) during this event.

WellNeo Sugar (2117) To Buy Toyo Sugar (2107) – Too Cheap, No Synergies Paid, but Too Small

By Travis Lundy

  • WellNeo Sugar (2117) today announced a deal to buy Toyo Sugar Refining (2107 JP) at a 27% premium. This is a small ¥11bn deal where insiders own 45%. 
  • Normally I wouldn’t even talk about a deal this small but this one has something going for it. Two things actually. 
  • And readers will have to read all the way down to the conclusions to find out the key one, but the setup is that it is too cheap.

Yamaha Corp (7951) BIG Buyback May Be Followed By More Later

By Travis Lundy

StubWorld: WH Group (288 HK) IPOs Smithfield (SFD US). Now What?

By David Blennerhassett

  • After reducing the IPO price, and the placement size, WH Group (288 HK) has now completed the spin-off of Smithfield Foods (SFD US).
  • Preceding my comments on the WH Group are the current setup/unwind tables for Asia-Pacific Holdcos.
  • These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

Quiddity Leaderboard NIFTY Mar 25: Final Expectations; Expected DELs Could Underperform Index

By Janaghan Jeyakumar, CFA

  • NIFTY 50 represents the 50 largest stocks listed in the National Stock Exchange (NSE) of India and the NIFTY Next 50 index tracks the next 50 largest names.
  • In this insight, we are presenting our final expectations for ADDs and DELs for the March 2025 index rebal event.
  • We see two changes for NIFTY 50 and four changes for NIFTY 100. We expect the results to be announced in the next few days.

A Partial Tender Offer of Englewood Lab by Cosmecca Korea

By Douglas Kim

  • On 6 February, Cosmecca Korea (241710 KS) launched a partial tender offer on Englewood Lab (950140 KS).
  • Cosmecca Korea announced that it plans to purchase 11% (2.185 million) of Englewood Lab’s outstanding shares at the tender offer price of 10,000 won. 
  • It appears that this partial tender offer is an attempt by Cosmecca Korea to increase its stake in Englewood Lab even further, capitalizing on the lower share price.

Making a Call on when Samsung’s Financial Arms Will Drop Their Value-Up Announcements

By Sanghyun Park

  • Samsung Life’s value-up disclosure: we should expect it with Q4 earnings on the 20th—every local desk and media outlet is eyeing that date.
  • Unlike Samsung Life, Samsung Securities is tight-lipped. Earnings are set for Feb 14, but expect the value-up announcement after Feb 20, likely before early March and AGM season.
  • Tomorrow’s unlikely for Samsung Card’s value-up disclosure. It’s holding off until the card fee recalculation is finalized—likely after February or before mid-March, ahead of AGM season.

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Feb 06
0

Daily Brief Quantitative Analysis: The Evolution of Portfolio Management: Bridging Traditional Models and Machine Learning and more

By | Daily Briefs, Quantitative Analysis

In today’s briefing:

  • The Evolution of Portfolio Management: Bridging Traditional Models and Machine Learning

The Evolution of Portfolio Management: Bridging Traditional Models and Machine Learning

By William Mann

  • Portfolio construction evolves from traditional Markowitz models to sophisticated machine learning approaches, integrating academic insights and practical implementation strategies.
  • Two primary methodological frameworks—thematic model grouping and consolidated alpha signal optimization—offer unique advantages in managing complex investment landscapes.
  • Research reveals sector-specific strategies can improve Sharpe ratios by 0.3-0.5, demonstrating the potential of advanced quantitative portfolio management techniques.

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Feb 06
0

Daily Brief ESG: “TSE’s Request” and Dissolution of Cross-Shareholdings Are Behind the Increase in Share Repurchases and more

By | Daily Briefs, ESG

In today’s briefing:

  • “TSE’s Request” and Dissolution of Cross-Shareholdings Are Behind the Increase in Share Repurchases

“TSE’s Request” and Dissolution of Cross-Shareholdings Are Behind the Increase in Share Repurchases

By Aki Matsumoto

  • Dividends are still the mainstay of shareholder returns, but shareholder returns, including share buybacks, became a standard “P/B raising measure,” which is why share buybacks increased on a company-by-company basis.
  • Share repurchases increased significantly this year as large cross-holding share dissolutions were undertaken through share repurchases. Share buybacks will continue increasing due to share repurchases for dissolution of cross-shareholdings.
  • Companies that have been reluctant to retire treasury stock are finally moving to do so. This is expected to be a change of the companies.

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Feb 06
0

Daily Brief Thematic (Sector/Industry): Japanese Megabanks – Time to Get Short? and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • Japanese Megabanks – Time to Get Short?
  • Ohayo Japan | Markets Rebound as Tech Stocks Diverge
  • #98 India Insight: Trump Delays Tariffs, India Eases FEMA Rules, New Tax Code from April
  • Episode 103: Earnings – MSFT, META, AAPL, INTC – The Custom ASIC Debate!
  • Singapore Market Roundup (05-Feb-2025): Singtel may raise FY2025 ebit growth guidance.
  • Japan Morning Connection: Tech Rebound Shine May Be Tarnished by Apple Suppliers After Market
  • What’s New(S) In Amsterdam – 4 February 2025 (ING | Fagron | TomTom | Bpostgroup)
  • Monthly Sales Overview of Indian Listed Tractor Companies (January 2025)

Japanese Megabanks – Time to Get Short?

By Rikki Malik

  • Revisiting a sector we have liked for the last 2 years
  • We discuss current sector dynamics and why they could be  a potential short
  • Recent positive earning surprises from the banks have not moved the stocks

Ohayo Japan | Markets Rebound as Tech Stocks Diverge

By Mark Chadwick

  • US stocks recovered, with the S&P 500 gaining 0.4% and Nasdaq rising 0.2%, led by a 5% surge in Nvidia.
  • Alphabet slumped 7% on weak cloud revenue, while AMD fell 6% after a disappointing data-centre forecast, fuelling AI investment concerns.
  • Japan’s Nikkei edged higher, supported by Toyota’s upbeat forecast, but a stronger yen capped gains amid rising expectations of a BOJ rate hike

#98 India Insight: Trump Delays Tariffs, India Eases FEMA Rules, New Tax Code from April

By Sudarshan Bhandari

  • Trump delays tariffs on Mexico and Canada for 30 days after border security deal; Mexico sends 10,000 National Guard troops.
  • India’s Finance Ministry and RBI to ease FEMA rules, attract foreign investments, modernize regulations, and review non-financial sectors.
  • The new direct tax code bill, effective from April, will simplify existing laws, without new taxes or rate changes.

Episode 103: Earnings – MSFT, META, AAPL, INTC – The Custom ASIC Debate!

By The Circuit

  • Microsoft’s focus on AI resulted in throwing themselves under the bus to keep the AI train going.
  • Microsoft’s decision to maintain CapEx numbers for AI semis may not align with street expectations.
  • Microsoft’s shift away from AI for small and medium businesses indicates uncertainty about the utility of AI for a large part of the customer base.

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

Singapore Market Roundup (05-Feb-2025): Singtel may raise FY2025 ebit growth guidance.

By Singapore Market Roundup

  • Singtel is considering raising their FY2025 ebit growth guidance to mid-to-high teens, attributed to successful cost cutting efforts according to CGSI.
  • IG forecast predicts OCBC stock may reach $19 and UOB may rise to $39.90. RHB increases Centurion’s target price and earnings due to higher rate assumptions.
  • CGSI maintains ‘add’ rating for Genting Singapore despite slow tourism recovery. However, DBS and RHB cut CDLHT’s target price due to Singapore hotel oversupply.

Japan Morning Connection: Tech Rebound Shine May Be Tarnished by Apple Suppliers After Market

By Andrew Jackson

  • SMCI and server cooling names higher on Blackwell rack announcement.
  • Pple suppliers Cirrus and Broadcom up in regular trading but Skyworks -23% and Qualcomm -4% after hours.
  • Signs that Minebea Mitsumi may be finally reaching a bottom? 

What’s New(S) In Amsterdam – 4 February 2025 (ING | Fagron | TomTom | Bpostgroup)

By The IDEA!

  • In an interview with Reuters, ING’s CEO Steven van Rijswijk said his bank is exploring acquisitions in major European markets, including Germany, Italy, and Spain, to expand its presence.
  • “We would be looking firstly at businesses that offer certain products, operate predominantly in geographical markets where we are already active and have a strong digital footprint,” the CEO told Reuters.
  • Van Rijswijk declined to name any potential targets.

Monthly Sales Overview of Indian Listed Tractor Companies (January 2025)

By Sreemant Dudhoria

  • Tractor volume continued to be strong in Jan’25. Favorable reservoir level, strong sowing for Rabi season and government support are expected to drive good demand for tractors in medium term.
  • We summarize the sales volume published by listed players Mahindra & Mahindra (MM IN) , and Escorts Kubota Limited (ESCORTS IN) in January 2025.
  • Positive management commentary augurs well for uptick in tractor OEM stocks and related auto ancillary companies like GNA Axles Ltd (GNA IN) in medium term.

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Feb 06
0

Daily Brief Credit: Lucror Analytics – Morning Views Asia and more

By | Credit, Daily Briefs

In today’s briefing:

  • Lucror Analytics – Morning Views Asia
  • U.S. Tariffs and Their Potential Impact on Cemex and Pemex

Lucror Analytics – Morning Views Asia

By Leonard Law, CFA

  • In today’s Morning Views publication we comment on developments of the following high yield issuers: Greentown China, Health and Happiness (H&H)
  • In the US, the December JOLTS job openings unexpectedly declined to 7.6 mn (8.0 mn e / 8.2 mn revised p). The JOLTS lay-off and quits rates were stable at 1.1% and 2.0%, respectively, in December.
  • Treasuries rallied yesterday, with yields declining 4-5 bps across the curve, on account of the weaker-than-expected JOLTS report.

U.S. Tariffs and Their Potential Impact on Cemex and Pemex

By Leandro Gubler

  • Given the scale of these trade flows, any imposition of tariffs by the U.S. could create significant ripple effects on Mexico’s economic growth, investment climate, and employment
  • In LTM September 2024, Cemex generated ~31% of its revenues in Mexico and 31% in the U.S., while 44% of its EBITDA came from Mexico and 29% from the U.S
  • The U.S. market represents a meaningful portion of Pemex’s crude exports. In 2024, the company exported 460 kbd, accounting for 57.1% of total exports and 26.5% of total production

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Feb 06
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Daily Brief ECM: Guming Holdings (1364 HK) IPO: Valuation Insights and more

By | Daily Briefs, ECM

In today’s briefing:

  • Guming Holdings (1364 HK) IPO: Valuation Insights
  • PegBio 派格生物 IPO: A (Supposedly) Straightforward GLP-1 Challenger Story
  • Karman Holdings Inc.(KRMN): Terms Set for Space & Defense IPO Valuing Company up to $2.6b
  • SK Finance Ltd Pre-IPO – Strong AUM Growth Driven by Vehicle Financing
  • Foshan Haitian Flavouring Pre-IPO: A Stable Breed
  • Pre-IPO Nanjing Leads Biolabs – The Future Prospects of the Pipeline Are Worth Looking Forward To
  • Karamtara Engineering Pre-IPO Tearsheet
  • Cloudbreak 拨康视云 IPO: Negative Readthrough from Underperforming Market Leader

Guming Holdings (1364 HK) IPO: Valuation Insights

By Arun George

PegBio 派格生物 IPO: A (Supposedly) Straightforward GLP-1 Challenger Story

By Ke Yan, CFA, FRM

  • PegBio is looking to raise at least USD 100m via its Hong Kong IPO.
  • In this note, we looked at the company’s fundamentals, particularly its core product PB-117.
  • We think the story might look simple as a straightforward GLP-1 challenger but there are quite a number of concerns as we dig into the company’s story.

Karman Holdings Inc.(KRMN): Terms Set for Space & Defense IPO Valuing Company up to $2.6b

By IPO Boutique

  • Private Equity backed Karman Holdings set terms for its IPO with a scheduled February 14th debut. 
  • The company will net $160m if the offering priced at the midpoint of the range and selling shareholders will obtain the remaining $240m in this $400m cash-raise total transaction. 
  • The valuation of this company came in lighter than expected. We will continue to dive into the metrics of this deal and provide additional research, color and commentary.

SK Finance Ltd Pre-IPO – Strong AUM Growth Driven by Vehicle Financing

By Rosita Fernandes

  • SK Finance Limited (0893736D IN)  is planning to raise about US$260m through its upcoming India IPO.
  • SK Finance Ltd (SFL) is a non-deposit non-banking finance company middle layer (NBFC ML) operating in two main verticals, vehicle financing and financing for micro, small and medium enterprises (MSMEs).
  • As per CRISIL Report, the company was the fastest growing player in the vehicle and MSME financing segment among its peers, based on AUM growth over FY21-23.

Foshan Haitian Flavouring Pre-IPO: A Stable Breed

By Osbert Tang, CFA

  • Foshan Haitian Flavouring & Food Company (FHF HK), the largest condiment company in China, is seeking an H-share IPO in Hong Kong. 
  • It has established brand recognition and leadership positions, product innovation and diversification, opportunities from industry consolidation, and steady earnings with net cash.
  • Assuming a 28% HA discount, the same as the HS Stock Connect, this implies an FY25 PER of 23.2x. Versus Kikkoman Corp (2801 JP)‘s 23.8x, this seems not attractive enough. 

Pre-IPO Nanjing Leads Biolabs – The Future Prospects of the Pipeline Are Worth Looking Forward To

By Xinyao (Criss) Wang

  • After PD-1/L1, we haven’t seen the next successful/reliable immune checkpoint emerges due to issues on efficacy/safety profile. So, for 4-1BB/LAG3, we’re worried about the druggability or future commercialization after approval.
  • In Leads Biolabs’ pipeline, we think the future highlight may still lie in CD3, since the mechanism by which TCR/CD3 is used to activate T cells is well validated.
  • After Series C+ Financing, the post investment valuation has exceeded RMB3 billion.If the pipeline development progresses smoothly, Leads Biolabs’ valuation would surpass peers in the future due to better outlook.

Karamtara Engineering Pre-IPO Tearsheet

By Akshat Shah

  • Karamtara Engineering Ltd (6589452Z IN) is looking to raise about US$200m in its upcoming India IPO. The deal will be run by ICICI, IIFL, JM Fin.
  • Karamtara Engineering Limited (KEL) is a backward integrated manufacturer of products for renewable energy and transmission lines sectors.
  • According to F&S, KEL was a leading manufacturer of solar mounting structures and tracker components in India and the largest in terms of installed capacity in FY24 and 1H25.

Cloudbreak 拨康视云 IPO: Negative Readthrough from Underperforming Market Leader

By Ke Yan, CFA, FRM

  • Cloudbreak re-filed for a Hong Kong listing in December 2024 to raise at least USD 100 million.
  • In this note, we look at updates to its product lines. The progress of core products is on track while there are significant delays observed for other products.
  • We have a negative readthrough from the leading competitor of its core product.

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Feb 06
0

Daily Brief Equity Bottom-Up: Taiwan Tech Weekly: TSMC’s Massive New 1nm GIGAFAB in Development; Can Japan Build the Next TSMC? and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Taiwan Tech Weekly: TSMC’s Massive New 1nm GIGAFAB in Development; Can Japan Build the Next TSMC?
  • Japan’s Semiconductor Gamble: Can Rapidus Challenge TSMC?
  • AMD Q424. Share Price Sinks As Data Center GPU Growth Stalls In H125. But Why?
  • Trane Technologies: Can HVAC Service Revenue Outweigh Market Cyclicality? – Major Drivers
  • AMD 4Q24 In-Line, Margins Improving. AI GPU Roadmap for 2025 Is Impressive and Accelerating. Buy.
  • Taiwan Dual-Listings Monitor: TSMC Rebounds to Strong Premium; ASE Near Parity
  • Acquittal of Lee Jae-Yong and Impact on Samsung C&T
  • Arras Minerals: Promising Exploration Results Drive Stock up +96% YTD
  • Alphabet 4Q’24 Update
  • All Eyes on Predictive’s Bankan

Taiwan Tech Weekly: TSMC’s Massive New 1nm GIGAFAB in Development; Can Japan Build the Next TSMC?

By Vincent Fernando, CFA

  • TSMC Expands 2nm & Advanced Packaging in Taiwan, Advances 1nm “GIGAFAB” in the South — Despite U.S. Tariff Risks
  • Japan’s Semiconductor Gamble: Can Rapidus Challenge TSMC? — Maintain Structural Long for TSMC.
  • Apple Supply Chain Monitor — Why Zhen Ding and Kinsus Interconnect Could Be in a Favorable Position Relative to Apple’s AI Trajectory

Japan’s Semiconductor Gamble: Can Rapidus Challenge TSMC?

By Vincent Fernando, CFA

  • Rapidus Corporation — The Japan-based semiconductor startup has emerged as a key part of the country’s ambition to reclaim a foothold in the advanced semiconductor manufacturing space.
  • How Rapidus Compares to TSMC — Rapidus’s challenge is not only in catching up with TSMC’s leading-edge process nodes but also in ensuring manufacturing maturity and cost competitiveness.
  • Maintain Structural Long rating for TSMC — Accumulate on market weakness. TSMC is partially insulated from U.S. tariff risks thanks to its position producing the most advanced chips.

AMD Q424. Share Price Sinks As Data Center GPU Growth Stalls In H125. But Why?

By William Keating

  • Q424 revenues of $7.7. billion, up 12% QoQ, up 27% YoY and $200 million above the guided midpoint. This marked the company’s highest ever quarterly revenue
  • AMD forecasted Q125 revenues of $7.1 billion at the midpoint, up 30% YoY but down ~7% sequentially. This caused the share price to decline by ~9% in after hours trading
  • H125 is a reset period for AMD’s Data Center GPU roadmap. ROCm simply isn’t mature enough to compete effectively with NVIDIA. AMD must do better, and I believe they will.

Trane Technologies: Can HVAC Service Revenue Outweigh Market Cyclicality? – Major Drivers

By Baptista Research

  • Trane Technologies reported robust financial results for the fourth quarter of 2024, reflecting strong execution across its business segments and demonstrating the benefits of its purpose-driven strategy focused on innovation and sustainability.
  • The company achieved 10% organic revenue growth, expanded adjusted EBITDA margins by 110 basis points, and increased adjusted earnings per share (EPS) by 20%.
  • For the full year, Trane Technologies reported 12% organic revenue growth and 24% adjusted EPS growth, affirming its ability to outperform peer groups in these critical financial metrics.

AMD 4Q24 In-Line, Margins Improving. AI GPU Roadmap for 2025 Is Impressive and Accelerating. Buy.

By Nicolas Baratte

  • 4Q24: just inline, flattish AI GPU revenue, recovery in Server and PC. Not impressive but ok. What matters is: accelerating GPU launch in 2025, the open-source software platform gains traction.
  • Please take this literally, from CEO: Data Center AI (revenue will increase) from US$5bn in 2024 to tens of billions of dollars of annual revenue over the coming years.
  • Stock has corrected by -32% since Oct-24. It’s trading at -1 standard deviation on forward EPS or 23x 2025EPS. Time to Buy.

Taiwan Dual-Listings Monitor: TSMC Rebounds to Strong Premium; ASE Near Parity

By Vincent Fernando, CFA

  • TSMC: +20.8% Premium; Wait for More Extreme Level vs. Relative Range; Comments from Morris Chang on Premium
  • ASE: +0.5% Premium; Good Level to Go Long the Premium
  • ChipMOS: 1.9% Premium; Can Consider Shorting Premium at Current Level

Acquittal of Lee Jae-Yong and Impact on Samsung C&T

By Douglas Kim

  • Now that Lee Jae-Yong’s legal problems appear to have finally have been resolved, it could positively impact Samsung C&T, Samsung Electronics, and Samsung Biologics.
  • Given the fact that Samsung Electronics and Samsung Biologics are the two most important drivers of Samsung C&T, this could positively benefit the valuation of Samsung C&T. 
  • Our NAV analysis of Samsung C&T suggests NAV of 38.7 trillion won or NAV per share of 217,747 won which is 84% higher from current levels.

Arras Minerals: Promising Exploration Results Drive Stock up +96% YTD

By Nicolas Van Broekhoven

  • Since the start of 2025, Arras has released two batches of drill results from its exploration activities in Kazakhstan. Early results look very promising and the stock has reacted accordingly.
  • 2025 is going to be a very busy year of newsflow for Arras with a lot of optionality to drive a further re-rating.
  • Arras remains a high risk/reward junior exploration company with a market cap of only 33M USD. Arras is targeting both copper and gold.

Alphabet 4Q’24 Update

By MBI Deep Dives

  • Alphabet maintained their low double digit revenue growth. For the 10th consecutive quarters, Google network’s revenue went down.
  • Cloud revenue growth decelerated from 35.0% YoY in 3Q’24 to 30.1% in 4Q’24.
  • I will note, however, that Google usually discloses every quarter that GCP grew at higher rate than overall Cloud, but in this call, they mentioned “GCP grew at a rate that was much higher than cloud overall”. 

All Eyes on Predictive’s Bankan

By Money of Mine

  • Predictive Discovery receives a strategic investment of $69 million from Lundeen and Zejin, leading to a 13% increase in stock price
  • The funds will be used for advancing the DFS at the Bankhan gold project in Guinea and other development activities
  • Predictive’s Bankan project has a 5.4 million ounce resource and a 3 million ounce reserve, with an average production profile of 269,000 ounces per annum over 12 years at an AISC of $1,100 per ounce

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

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