Daily Briefs

• The sharp performance decline of China TCM in 2024 is actually in line with our expectation. The current valuation has not yet reached its lowest point. 
• China TCM can still achieve an average annual profit of RMB1 billion in the future. Together with the new management, we expect the Company to come out of the trough.
• Instead of betting on privatization again, it’s better to focus more on whether China TCM’s fundamentals would improve, which is the key factor that can support a sustainable valuation rebound.

• TSMC: +23.9% Premium; Fallen But Remains in Historically Extreme Territory
• UMC: -3.6% Discount; Good Level to Go Long the ADR Spread
• ASE: +0.3% Premium; Can Consider Going Long the Spread at Current Level

• Yatharth Hospital & Trauma Care Services (YATHARTH IN) successfully completed a QIP, raising Rs. 625 crore which was followed by the stock falling by nearly 26% in the following month.
• The company and its subsidiaries has recently been facing a significant challenge with an investigation by the Income Tax Department and the attachment of company assets.
• The document released on December 17, 2024 has confirmed the search and seizure operations conducted on October 19, 2023, targeting Yatharth and two of its subsidiaries.

• Sysmex America, Inc., a subsidiary of Sysmex Corp, recently announced plans to build a new reagent manufacturing, distribution, and service center in Brazil.
• In FY24, sales in the Americas region for Sysmex increased 12% YoY to ¥118.7B. Reagents drove the revenue growing 16%.
• Operating margins in the Americas have largely trodden on a volatile trajectory over the last few years hovering in the range of 4-6%, lowest among all the geographies.

• KTC has just released its 4Q24 results and presentation, with a stand out diagram on BOT debt relief measures
• With the several measures in place by the BOT, including lowering minimum card payment, lengthening loan term and lowering rate, there are clear stresses.
• ROA is under pressure, and part of this will be due to rising credit costs, which are up from 470bps to 610bps from FY22 to FY24

• HSBC Holdings plc reported a solid financial performance for the third quarter of 2024, reflecting the effectiveness of its ongoing strategic initiatives.
• Key points from the earnings call highlight the firm’s continued growth, strategic restructuring, and some external influences, creating a nuanced outlook for potential investors.
• On the financial front, HSBC posted a profit before tax of $8.5 billion, marking an 11% increase compared to the same period last year, on a constant currency basis.

• Sonos, a renowned name in the premium audio industry, has recently faced one of its most challenging years.
• The company, known for its seamless blend of hardware and software, suffered a significant setback due to a disastrous app update that disrupted the user experience for millions.
• Released in May 2024, the redesigned app, meant to accelerate innovation, instead turned functional speakers into non-operational devices.

• Finley translates unstructured credit agreements into code to streamline credit management processes
• Borrowers like RAMP and ANOVA rely on Finley for tracking and automation of reporting requirements
• Lenders like Trinity Capital Valley bank use Finley as a command center for debt capital data and analysis across transactions.

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• Japan System Techniques (hereafter, the Company) announced its H1 Key consolidated figures net sales of JPY 13,260 mn (+9.3% YoY), operating profit of JPY 1,045 mn (+4.2% YoY), ordinary profit of JPY 1,077 mn (+6.8% YoY), and profit attributable to owners o  parent (hereafter, net profit) of JPY 671 mn (+3.2% YoY).
• Higher sales and profits in the DX&SI business and Package business contributed in H1 earnings growth.
• For FY2025/3, the Company forecasts: net sales of JPY 28,570 mn (+9.1% YoY), operating profit of JPY 3,150 mn (+12.9% YoY), ordinary profit of JPY 3,200 mn (+11.8% YoY), and net profit of JPY 2,300 mn (+10.2%).

• Ultrajaya Milk remains one of Indonesia’s leading dairy companies with a leading 36% market share of the UHT milk market, with Indonesia being one of the lowest consumers in ASEAN.  
• The company has seen a strong recovery in its dairy business and will be a key beneficiary of the school meals program in Indonesia, launched this year by President Prabowo.
• Ultrajaya‘s new distribution centre in MM2100 is now operating with manufacturing to start in 3Q2025, helping to drive longer-term growth. Valuation is attractive versus peer Cimory with growth outlook improving.