Category

Daily Briefs

Jan 30
0

Daily Brief Event-Driven: Event Driven: Vedanta Ltd: A Story of Wealth Creation Through Demerger and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • Event Driven: Vedanta Ltd: A Story of Wealth Creation Through Demerger
  • Play the Timing Sweet Spot Between KOSPI 200 Rebal and Short Selling Coming Back into Play
  • Sigma Healthcare (SIG AU): Shareholders Approve Merger; Passives Could Start Buying in Two Weeks
  • Dropsuite (DSE AU): NinjaOne’s Binding Offer a Done Deal

Event Driven: Vedanta Ltd: A Story of Wealth Creation Through Demerger

By Nimish Maheshwari

  • Vedanta Ltd (VEDL IN) plans a multi-segment demerger to unlock value by separating its aluminum, zinc, oil and gas, steel, and other core operations into standalone entities.
  • This restructuring aims to eliminate conglomerate discount, foster specialized leadership, and attract fresh capital, potentially enhancing overall valuations and fueling long-term growth across diversified segments.
  • Despite governance concerns and cyclical commodity risks, pure-play listings could catalyze re-ratings, offering heightened returns but requiring vigilance on execution and corporate transparency.

Play the Timing Sweet Spot Between KOSPI 200 Rebal and Short Selling Coming Back into Play

By Sanghyun Park

  • Short selling returns March 31, after 85% of the KOSPI 200’s rebalancing. Stocks set for removal will be prime short targets.
  • Stocks removed have solid liquidity, tight passive impact gaps between them, and with short selling restarting March 31, we could see intensified volume in the short basket.
  • With rebalance ahead, price action may start early. Market exposure means aggressive moves could happen before the end of March, so consider building futures positions before short selling resumes.

Sigma Healthcare (SIG AU): Shareholders Approve Merger; Passives Could Start Buying in Two Weeks

By Brian Freitas

  • Sigma Healthcare (SIG AU) and Chemist Warehouse (CWG) shareholders have approved the merger with 99.86% and 100% of the votes cast in favour.
  • The Second Court Hearing is on 3 February and the merger will be implemented on 12 February, which is when the passive buying could commence.
  • Sigma Healthcare has continued to trade higher on a record margin and sales expansion for CWG and expected passive buying that could top A$3bn over the next few months.

Dropsuite (DSE AU): NinjaOne’s Binding Offer a Done Deal

By Arun George

  • On 28 January, Dropsuite Ltd (DSE AU) entered a scheme implementation deed with NinjaOne at A$5.90 per share, a 34.1% premium to the undisturbed price of A$4.40 per share.
  • The offer is conditional on shareholder and FIRB approval. The vote is low-risk as the largest shareholder has provided an irrevocable. 
  • The offer is attractive and represents an all-time high. At the last close, for a 20 May payment, the gross/annualised spread was 3.0%/10.3%.

💡 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


Jan 30
0

Daily Brief Macro: Emergency or policy? Unpacking Trump’s take on US energy and metals and more

By | Daily Briefs, Macro

In today’s briefing:

  • Emergency or policy? Unpacking Trump’s take on US energy and metals
  • The Drill: The commoditization of AI is here
  • Asian Equities: Markets Recovering Selectively, but Keep the Seatbelts Tightened
  • Singapore: Early to Ease Amid Receding Inflation, Helped by Productivity Rebound
  • China’s Risk Aversion Hurdle
  • Sweden: 25bp Rate Cut to 2.25% (Consensus 2.25%) in Jan-25
  • Canada: 25bp Rate Cut To 3.0% (Consensus 3.0%) in Jan-25
  • UK: Political Policy Spectacle

Emergency or policy? Unpacking Trump’s take on US energy and metals

By Commodities Focus

  • Trump signed emergency declarations to address energy and minerals inadequacy in the US
  • Plans to impose tariffs on Mexico and Canada, pressure OPEC to lower prices
  • Unclear what powers these declarations unlock, potential impact on energy and metal projects

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

The Drill: The commoditization of AI is here

By Ulrik Simmelholt

  • Let’s start with DeepSeek.
  • The trajectory toward singularity may be accelerating faster than previously forecasted.
  • With barriers to entry for AI development rapidly lowering and efficiency gains fueling greater demand rather than less, it seems inevitable that this trend will reshape the AI landscape.

Asian Equities: Markets Recovering Selectively, but Keep the Seatbelts Tightened

By Manishi Raychaudhuri

  • Asia bottomed out in mid January and has been recovering on “Trump tariff” hesitation. But Deepseek’s LLM threatens to upend US AI superiority and has dented the AI investment theme.
  • We think the AI story is far from over; the hyperscalers’ investments should continue. We keep faith on the beneficiaries – TSMC and SK Hynix, and on Taiwan in particular.
  • Asian equities could run if foreign flows revive on USD moderation. But the earnings season underscores US earnings profile superiority. Asia seems pedestrian in comparison. Watch earnings estimate trajectories closely.

Singapore: Early to Ease Amid Receding Inflation, Helped by Productivity Rebound

By Prasenjit K. Basu

  • As we had forecast in Sep’24, the S$NEER has depreciated since the Oct’24 policy statement (despite officially unchanged policy). SS$NEER likely to depreciate further, with SGD reaching S$1.39/US$ by end-Mar’25. 
  • The productivity rebound, bolstered by 10%YoY growth in machinery investment in Q3/24, enabled ULCs to moderate, rising just 0.9%YoY economy-wide (slowest in 4 years), helping contain headline and core inflation.
  • We expect inflation to remain below 2%YoY in 2025, while real GDP grows 3.2% (above the government’s “1 to 3%” growth forecast), driven by investment and productivity growth in H1.

China’s Risk Aversion Hurdle

By Sharmila Whelan

  • We are underweight Chinese equities and the renminbi because our business cycle indicators show the economy is yet to bottom. 
  • Troublingly risk aversion among companies and households is becoming entrenched. Xi and the property market crisis are paralysing the private sector and killing entrepreneurial spirit.
  • We are  more concerned about the domestic economy and the government’s stance toward private enterprises than Trump’s trade war.

Sweden: 25bp Rate Cut to 2.25% (Consensus 2.25%) in Jan-25

By Heteronomics AI

  • The Riksbank cut its policy rate by 0.25pp to 2.25%, in line with the consensus forecast, citing weak economic activity and contained inflation risks.
  • Forward guidance suggests a cautious approach to future rate cuts, with policymakers closely monitoring the delayed impact of previous reductions on demand and inflation.
  • External risks, including geopolitical tensions and economic policy uncertainty in major economies, alongside domestic factors like the krona’s exchange rate, will be key in shaping the future interest rate trajectory.
This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Canada: 25bp Rate Cut To 3.0% (Consensus 3.0%) in Jan-25

By Heteronomics AI

  • The Bank of Canada reduced its policy rate by 25 basis points to 3% and announced the end of quantitative tightening, aligning with expectations, as inflation remains stable around 2%.
  • The economic outlook is clouded by external risks, particularly the threat of new US tariffs. Meanwhile, domestic conditions show a soft labour market, weak business investment, and moderate GDP growth projections of 1.8% in 2025 and 2026.
  • The Bank has signalled a cautious, data-dependent approach to future rate adjustments, monitoring inflation risks, trade policy developments, and the effectiveness of past monetary easing.
This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

UK: Political Policy Spectacle

By Phil Rush

  • Labour’s new long-term growth plans have merit but limited short-term impact, as infrastructure and investment projects take years to deliver economic benefits.
  • Despite policy rhetoric, the UK economy is structurally struggling, with GDP stagnation, persistent inflation, and fiscal constraints limiting immediate growth prospects.
  • Political motives overshadow immediate economic substance, as ambitious projections serve electoral strategy rather than offering near-term economic transformation.

💡 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


Jan 30
0

Daily Brief Australia: Sigma Healthcare, Dropsuite Ltd and more

By | Australia, Daily Briefs

In today’s briefing:

  • Sigma Healthcare (SIG AU): Shareholders Approve Merger; Passives Could Start Buying in Two Weeks
  • Dropsuite (DSE AU): NinjaOne’s Binding Offer a Done Deal
  • Sigma Healthcare (SIG AU): Shareholders Approves CWG Merger

Sigma Healthcare (SIG AU): Shareholders Approve Merger; Passives Could Start Buying in Two Weeks

By Brian Freitas

  • Sigma Healthcare (SIG AU) and Chemist Warehouse (CWG) shareholders have approved the merger with 99.86% and 100% of the votes cast in favour.
  • The Second Court Hearing is on 3 February and the merger will be implemented on 12 February, which is when the passive buying could commence.
  • Sigma Healthcare has continued to trade higher on a record margin and sales expansion for CWG and expected passive buying that could top A$3bn over the next few months.

Dropsuite (DSE AU): NinjaOne’s Binding Offer a Done Deal

By Arun George

  • On 28 January, Dropsuite Ltd (DSE AU) entered a scheme implementation deed with NinjaOne at A$5.90 per share, a 34.1% premium to the undisturbed price of A$4.40 per share.
  • The offer is conditional on shareholder and FIRB approval. The vote is low-risk as the largest shareholder has provided an irrevocable. 
  • The offer is attractive and represents an all-time high. At the last close, for a 20 May payment, the gross/annualised spread was 3.0%/10.3%.

Sigma Healthcare (SIG AU): Shareholders Approves CWG Merger

By Tina Banerjee

  • Sigma Healthcare (SIG AU) announced that more than 99% of the shareholders cast vote in favor of the merger with CWG. The merger now remains subject to court approval.
  • The court hearing is scheduled on February 3, 2025. If the Court approves the merger, it is expected that implementation of the merger scheme will occur on February 12, 2025.
  • CWG continued healthy performance, with double-digit like-for-like retail network sales growth and 400bps EBIT margin expansion in H1FY25. We are bullish on the long-term growth prospect of the merged entity.

💡 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


Jan 30
0

Daily Brief Thailand: Krung Thai Bank Pub and more

By | Daily Briefs, Thailand

In today’s briefing:

  • Thai Banks 4Q24 Screener; Krung Thai (KTB TB) Is in the Early Re-Rating Stages

Thai Banks 4Q24 Screener; Krung Thai (KTB TB) Is in the Early Re-Rating Stages

By Victor Galliano

  • Krung Thai remains our core value pick among the Thai banks driving its solid post-provision profitability higher, delivering double-digit ROE, a sound balance sheet and attractive PBV and PE ratios
  • Krung Thai has the highest core capital ratios as well as delivering the best ROE of the peer group, along with one of the best efficiency ratios versus its peers
  • Its share price performance has been strong, yet we believe that this positive momentum should continue as Krung Thai still has scope to narrow the valuation gap with SCBx

💡 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


Jan 30
0

Daily Brief South Korea: Iljin Hysolus, Seoul Guarantee Insurance, SK Hynix and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Play the Timing Sweet Spot Between KOSPI 200 Rebal and Short Selling Coming Back into Play
  • SGIC IPO Valuation Analysis
  • Did Hynix Meet Expectations ?

Play the Timing Sweet Spot Between KOSPI 200 Rebal and Short Selling Coming Back into Play

By Sanghyun Park

  • Short selling returns March 31, after 85% of the KOSPI 200’s rebalancing. Stocks set for removal will be prime short targets.
  • Stocks removed have solid liquidity, tight passive impact gaps between them, and with short selling restarting March 31, we could see intensified volume in the short basket.
  • With rebalance ahead, price action may start early. Market exposure means aggressive moves could happen before the end of March, so consider building futures positions before short selling resumes.

SGIC IPO Valuation Analysis

By Douglas Kim

  • Our base case valuation of Seoul Guarantee Insurance is target price of 32,463 won per share, which is 2.1% higher than the high end of the IPO price range. 
  • All in all, we are not particularly impressed with SGIC’s lack of top-line sales growth and worsening operating profit and margins in 1Q-3Q 2024. 
  • Despite the much lower IPO price range and a promise for higher shareholder returns, we remain Negative on this IPO. 

Did Hynix Meet Expectations ?

By Ken S. Kim

  • As we hit Chinese New Year break,  we want to examine if Hynix’s earnings and investor call met investor expectations
  • 6 key questions going in and where we are post SK Hynix (000660 KS) reporting and before Samsung Electronics (005930 KS) reports early February
  • The consensus is that the key questions were not answered.  Well, not all answered and some remains to be seen. 

💡 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


Jan 30
0

Daily Brief United States: Natural Gas, Infinity Natural Resources, Maze Therapeutics, Sailpoint Technologies Holdings, Metsera, Halliburton Co, Chevron Corp, Global Indemnity Group LLC, Alarm.Com Holdings and more

By | Daily Briefs, United States

In today’s briefing:

  • Emergency or policy? Unpacking Trump’s take on US energy and metals
  • Infinity Natural Resources (INR): Sector Sentiment Sours, Exercise Caution on IPO
  • Maze Therapeutics Inc. (MAZE): Kidney Disease Biotech IPO Garnering Attention from Sector Investors
  • SailPoint IPO Valuation Analysis: Paying Debt With IPO Proceeds and $1B+ ARR in FY26
  • Metsera Inc (MTSR): Obesity Drug Biotech Order Book Is “Hot”; Set for Friday IPO Debut
  • [Earnings Review] Halliburton Q4 Performance Impacted by North America Weakness
  • [Pre Earnings Options Flash] Chevron’s Options Activity Reflects Market Caution Ahead of Q4 Earnings
  • [Earnings Preview] Lower Oil Prices and Refining Margins to Weigh on Chevron’s Earnings
  • GBLI: Global Indemnity Group reorganizes its business under a new project called Project Manifest. These moves will create a more efficient and lateral structure.
  • Alarm.Com Holdings Inc (Alrm) (ALRM) – Wednesday, Oct 30, 2024

Emergency or policy? Unpacking Trump’s take on US energy and metals

By Commodities Focus

  • Trump signed emergency declarations to address energy and minerals inadequacy in the US
  • Plans to impose tariffs on Mexico and Canada, pressure OPEC to lower prices
  • Unclear what powers these declarations unlock, potential impact on energy and metal projects

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

Infinity Natural Resources (INR): Sector Sentiment Sours, Exercise Caution on IPO

By IPO Boutique

  • While this company is well-positioned in its sector and has a prudent growth strategy and balance-sheet flexibility, the short term “sector winds” are now blowing in a different direction.
  • Venture Global (VG) debuted last Friday with a major price cut and a more disappointing debut. 
  • Our sources state that the official message regarding the deal is that the offering is multiple-times oversubscribed from long-only and energy-dedicated funds. 

Maze Therapeutics Inc. (MAZE): Kidney Disease Biotech IPO Garnering Attention from Sector Investors

By IPO Boutique

  • The company is performing an abbreviated four-day roadshow and has gained momentum with interest from sector-dedicated investors. 
  • According to our sources, the deal was considered oversubscribed at launch from a mix of new and existing investors.
  • Typically, the biotech IPOs that are eager to come out of the gates in January have fared overwhelmingly better than those that trickle out later in the year.

SailPoint IPO Valuation Analysis: Paying Debt With IPO Proceeds and $1B+ ARR in FY26

By Andrei Zakharov

  • SailPoint, a founder-led provider of identity security for the modern enterprise, aims to raise up to $1B to pay off debt.
  • The company ended last quarter at $813M of implied ARR and I see a clear path to $1B+ ARR in FY26 ended Jan 30, 2026.
  • I believe SailPoint may consider IPO at valuation above take-private transaction of ~$6.9B in 2022. The company is expected to go public in February.

Metsera Inc (MTSR): Obesity Drug Biotech Order Book Is “Hot”; Set for Friday IPO Debut

By IPO Boutique

  • The GLP-1 market has experienced a recent boom and Metsera is capitalizing on this with a well-times IPO.
  • According to our sources, the deal is well-oversubscribed with the books closing Wednesday at 4pm for a Friday debut.
  • The company is seeking a mega valuation of$1.8b if priced at the high-end of the range. An IPO valuation at these levels would put the company in “rare-company”.

[Earnings Review] Halliburton Q4 Performance Impacted by North America Weakness

By Suhas Reddy

  • Halliburton’s Q4 revenue fell by 2.3% YoY and missed estimates by 0.4% due to weakness in North America. However, its EPS beat estimates by 0.7%.
  • Completion & Production revenue fell 4.2% YoY due to reduced activity in North and Latin America. Drilling & Evaluation revenue grew 0.4% YoY driven by growth in the Middle East.
  • In Q4, Halliburton repurchased USD 309 million in stock and generated USD 1.1 billion in free cash flow. Full-year repurchases totalled USD 1.6 billion.

[Pre Earnings Options Flash] Chevron’s Options Activity Reflects Market Caution Ahead of Q4 Earnings

By Suhas Reddy

  • Chevron to report its Q4 earnings on 31/Jan, with revenue and EPS projected to fall sequentially and annually. For 2024 also, revenue and EPS are expected to drop.
  • As of 29/Jan, Chevron’s implied volatility (IV) stands at 21.12%, with an IV rank of 43.95% and an IV percentile of 75%.
  • Chevron’s OI by strike for the 31/ Jan expiry shows calls concentrated at strikes 162.5, 165, and 167.5, while puts are prominent at strikes of 150, 152.5, and 155.

[Earnings Preview] Lower Oil Prices and Refining Margins to Weigh on Chevron’s Earnings

By Suhas Reddy

  • Chevron’s Q4 revenue and EPS are expected to drop 1.2% YoY and 38.8%, respectively. Similarly, its 2024 annual revenue and EPS are anticipated to fall by 2.5% and 22.5%.
  • Chevron expects restructuring and other charges to impact its Q4 2024 earnings by USD 1.1 billion to USD 1.5 billion.
  • Chevron set its 2025 organic capex at USD 14.5–15.5 billion and affiliate capex at USD 1.7–2.0 billion, marking a USD 2 billion decline from the previous year.

GBLI: Global Indemnity Group reorganizes its business under a new project called Project Manifest. These moves will create a more efficient and lateral structure.

By Zacks Small Cap Research

  • Global Indemnity Group, LLC, provides specialty and niche insurance products nationwide.
  • GBLI focuses on small market property and casualty business.
  • The company has made a concerted effort to reduce its property exposure.

Alarm.Com Holdings Inc (Alrm) (ALRM) – Wednesday, Oct 30, 2024

By Value Investors Club

  • Alarm.com has high dollar retention rates and is focused on diversifying revenue through growth initiatives, accounting for 30% of revenue and growing over 20% annually
  • The company has potential for improvement in EBITDA margins and could be a target for activists or a PE buyout due to its strong financial position
  • Founded in 2000 and incubated within MicroStrategy, Alarm.com has a history of innovation in the security products industry and is led by CEO Stephen Trundle

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.

💡 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


Jan 30
0

Daily Brief India: Vedanta Ltd, Ather Energy, Goodluck India and more

By | Daily Briefs, India

In today’s briefing:

  • Event Driven: Vedanta Ltd: A Story of Wealth Creation Through Demerger
  • Ather Energy Pre-IPO – The Negatives – Outpaced by Rivals
  • The Beat Ideas: Goodluck India Accelerating Margin Growth with Value-Added Products & Defence

Event Driven: Vedanta Ltd: A Story of Wealth Creation Through Demerger

By Nimish Maheshwari

  • Vedanta Ltd (VEDL IN) plans a multi-segment demerger to unlock value by separating its aluminum, zinc, oil and gas, steel, and other core operations into standalone entities.
  • This restructuring aims to eliminate conglomerate discount, foster specialized leadership, and attract fresh capital, potentially enhancing overall valuations and fueling long-term growth across diversified segments.
  • Despite governance concerns and cyclical commodity risks, pure-play listings could catalyze re-ratings, offering heightened returns but requiring vigilance on execution and corporate transparency.

Ather Energy Pre-IPO – The Negatives – Outpaced by Rivals

By Sumeet Singh

  • Ather Energy is looking to raise about US$536m in its upcoming India IPO.
  • Ather is a pure play electric vehicle company in India designing and developing E2Ws, battery packs, charging infrastructure, associated software and accessories, also manufacturing battery packs and assembling E2Ws in-house.
  • In this note, we talk about the not-so-positive aspects of the deal.

The Beat Ideas: Goodluck India Accelerating Margin Growth with Value-Added Products & Defence

By Sudarshan Bhandari

  • Goodluck India (GLIN IN) is expanding into high-value defense and precision tube segments, aiming to diversify beyond its low-margin steel products and capitalize on India’s growing domestic manufacturing push.
  • These strategic moves can enhance margins, reduce commodity price exposure, and capture rising demand from auto, defense, and infrastructure sectors, strengthening Goodluck’s long-term profitability.
  • Aiming for 2x revenue in next 3-4 years with margin expansion in all the segments apart from commodity segment. 

💡 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


Jan 30
0

Daily Brief Japan: Daihatsu Diesel Mfg, CyberAgent Inc, Makita Corp, Jafco Co Ltd, Canon Marketing Japan, Matsui Securities, Pca Corp, Carta Holdings, Inc., Entrust Inc and more

By | Daily Briefs, Japan

In today’s briefing:

  • Daihatsu Diesel’s (6023) Big Buyback and Quasi Change of Control
  • CyberAgent 1Q: Media Business Continues to Show Solid Growth
  • Makita (6586) | Powering Up
  • Jafco Co Ltd (8595 JP): Q3 FY03/25 flash update
  • Jafco- Continues to Perform
  • Canon Marketing Japan (8060 JP): Full-year FY12/24 flash update
  • Matsui Securities (8628 JP): Q3 FY03/25 flash update
  • Pca Corp (9629 JP): Q3 FY03/25 flash update
  • Carta Holdings (3688 JP) – Q3 FOLLOW-UP
  • Entrust Inc (7191 JP): Q3 FY03/25 flash update

Daihatsu Diesel’s (6023) Big Buyback and Quasi Change of Control

By Travis Lundy

  • Yesterday, Daihatsu Diesel Mfg (6023 JP) announced that it would buy back shares in a Tender Offer and that its controlling “parent” would also sell shares to a private company.
  • The accretion is significant, and the shareholder structure changes significantly. It is not quite an Exedy-like situation though. The register changes but it doesn’t clear. 
  • But the backdrop is considerably different than the MTMP, and that means this smallcap is worth a closer look.

CyberAgent 1Q: Media Business Continues to Show Solid Growth

By Shifara Samsudeen, ACMA, CGMA

  • CyberAgent Inc (4751 JP) reported 1QFY09/2025 results today. 1Q revenues beat consensus but reported OP fell below consensus due to weak gaming margins.
  • The key highlight of the quarter was the strong results of the Media business whose revenues saw strong growth with strengthened profitability.
  • Though game earnings were slightly weak during 1Q, we would not be too worried as app analysis data reveals that the segment is off to a strong start in 2QFY09/2025.

Makita (6586) | Powering Up

By Mark Chadwick

  • Margin recovery drives stock higher – Operating profit beat estimates, margins rebounded to 13.6%, and forex gains provided a boost despite weak sales.
  • European rebound offers upside – Makita, with 20% market share, is set to benefit from a forecasted 2025 construction sector recovery after two years of contraction.
  • Valuation remains attractive – With improving ROIC, inventory normalisation, and steady growth prospects, a DCF model suggests an 18% upside for the stock.

Jafco Co Ltd (8595 JP): Q3 FY03/25 flash update

By Shared Research

  • Revenue increased by 73.9% YoY to JPY25.4bn, with operating profit rising 149.6% YoY to JPY11.2bn.
  • Capital gains reached JPY10.9bn, with JPY7.6bn from IPO-related share sales and JPY3.4bn from unlisted shares.
  • Total investment executed in cumulative Q3 FY03/25 was JPY30.6bn, with JPY14.5bn for domestic VC investments.

Jafco- Continues to Perform

By Rikki Malik

  • The company has had good 2024 absolute and relative to Topix performance.
  • Will Jafco continue this winning streak into 2025 and beyond?
  • Results for the quarter ending December 2024 are encouraging with exit multiples increasing

Canon Marketing Japan (8060 JP): Full-year FY12/24 flash update

By Shared Research

  • Sales increased by 7.3% YoY to JPY653.9bn, driven by IT solutions and maintenance/operations services.
  • FY12/25 forecasts: Sales JPY680.0bn (+4.0% YoY), Operating profit JPY56.0bn (+5.4% YoY), Net income JPY39.5bn (+0.5% YoY).
  • IT solutions sales expected to grow YoY, with a 7% increase in SI services and 10% in outsourcing.

Matsui Securities (8628 JP): Q3 FY03/25 flash update

By Shared Research

  • Net operating revenue was JPY9.0bn, with a YoY increase of 4.5% and a QoQ decrease of 9.8%.
  • SG&A expenses rose to JPY5.4bn, up 6.8% YoY and 2.2% QoQ, with personnel expenses at JPY999mn.
  • Net trading profit reached JPY1.1bn, up 3.6% YoY and down 8.3% QoQ, primarily from FX transactions.

Pca Corp (9629 JP): Q3 FY03/25 flash update

By Shared Research

  • In Q3 FY03/25, the company reported revenue of JPY12.1bn, operating profit of JPY2.1bn, and net income of JPY1.4bn.
  • Revenue by product category showed cloud services increased 28.2% YoY, while conventional software decreased 53.3% YoY.
  • FY03/25 forecasts include revenue of JPY16.5bn, operating profit of JPY2.4bn, and a dividend of JPY83.00/share.

Carta Holdings (3688 JP) – Q3 FOLLOW-UP

By Sessa Investment Research

  • CARTA HOLDINGS (hereafter, the Company) announced its Q3 FY2024/12 results on November 13, 2024, which were in line with its upwardly revised forecasts disclosed with Q2 results.
  • The Company positioned FY2024/12 as the first year toward its sharp recovery following aggressive cost structure reforms in FY2023/12, and expects full- year operating profit to rise 53.7% YoY to JPY 2,000 mn as a signal to the start of its comeback.
  • Q4 is the Company’s busy season, and investors likely have a certain level of interest in where actual results come in.

Entrust Inc (7191 JP): Q3 FY03/25 flash update

By Shared Research

  • Revenue increased 17.9% YoY to JPY7.8bn, driven by growth in rent guarantee services; operating profit rose 11.0% YoY.
  • Total contracts in force reached 475,000 (+4.0% YoY), with Guarantee business contracts increasing 20.7% YoY to 349,000.
  • Solution business revenue declined 14.5% YoY as customers switched to guarantee contracts, reducing contracts in force by 24.7% YoY.

💡 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


Jan 30
0

Daily Brief China: DeepSeek and more

By | China, Daily Briefs

In today’s briefing:

  • Episode 102: Deeeeeepseeeeeeek!
  • The AI Model That Tanked the Stock Market

Episode 102: Deeeeeepseeeeeeek!

By The Circuit

  • Deepseek, formerly a quantitative hedge fund, has transitioned to building foundational AI models, causing a stir in the tech community
  • Their recent paper on transformer LLM models has sparked interest and confusion, particularly regarding training and inference costs
  • Despite claims of training on a small pool of GPUs, it is speculated that Deep Seq has access to tens of thousands of GPUs, challenging traditional notions of cost and capabilities in AI research.

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

The AI Model That Tanked the Stock Market

By Odd Lots

  • Market sees major losses in tech complex, catalyzed by introduction of Chinese AI model Deepseek
  • Concerns arise about cheap Chinese competitor impacting market heavily invested in AI companies
  • Zvi Moshevitz, AI expert, discusses Deepseek model’s training cost and optimization techniques

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


Jan 30
0

Daily Brief Industrials: Daihatsu Diesel Mfg, Iljin Hysolus, Makita Corp, Aker Carbon Capture ASA, Elis SA and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Daihatsu Diesel’s (6023) Big Buyback and Quasi Change of Control
  • Play the Timing Sweet Spot Between KOSPI 200 Rebal and Short Selling Coming Back into Play
  • Makita (6586) | Powering Up
  • Aker Carbon Capture (Acc:No) – Wednesday, Oct 30, 2024
  • Elis Sa (ELIS FP) – Wednesday, Oct 30, 2024

Daihatsu Diesel’s (6023) Big Buyback and Quasi Change of Control

By Travis Lundy

  • Yesterday, Daihatsu Diesel Mfg (6023 JP) announced that it would buy back shares in a Tender Offer and that its controlling “parent” would also sell shares to a private company.
  • The accretion is significant, and the shareholder structure changes significantly. It is not quite an Exedy-like situation though. The register changes but it doesn’t clear. 
  • But the backdrop is considerably different than the MTMP, and that means this smallcap is worth a closer look.

Play the Timing Sweet Spot Between KOSPI 200 Rebal and Short Selling Coming Back into Play

By Sanghyun Park

  • Short selling returns March 31, after 85% of the KOSPI 200’s rebalancing. Stocks set for removal will be prime short targets.
  • Stocks removed have solid liquidity, tight passive impact gaps between them, and with short selling restarting March 31, we could see intensified volume in the short basket.
  • With rebalance ahead, price action may start early. Market exposure means aggressive moves could happen before the end of March, so consider building futures positions before short selling resumes.

Makita (6586) | Powering Up

By Mark Chadwick

  • Margin recovery drives stock higher – Operating profit beat estimates, margins rebounded to 13.6%, and forex gains provided a boost despite weak sales.
  • European rebound offers upside – Makita, with 20% market share, is set to benefit from a forecasted 2025 construction sector recovery after two years of contraction.
  • Valuation remains attractive – With improving ROIC, inventory normalisation, and steady growth prospects, a DCF model suggests an 18% upside for the stock.

Aker Carbon Capture (Acc:No) – Wednesday, Oct 30, 2024

By Value Investors Club

  • Aker Carbon Capture sold 80% of their business to SLB for 4.5Bn NOK in cash with potential performance-based considerations.
  • Aker is now left as a shell company with negative EV and a 20% stake in the combined carbon capture business.
  • Aker’s modular approach to carbon capture technologies has helped them become a leader in the industry with growing revenue and a strong backlog of projects.

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.

Elis Sa (ELIS FP) – Wednesday, Oct 30, 2024

By Value Investors Club

  • Elis is a top multi-service provider in Europe, offering textile, hygiene, and facility service solutions to commercial clients
  • The company’s revenue growth outpaces GDP, reflecting the trend towards outsourcing essential services
  • Elis has maintained consistent performance and achieved growth in free cash flow despite challenges like the COVID pandemic and financial crises, showing significant growth in revenue, EBITDA, and EPS since 2018, with an undervalued share price.

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.

💡 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