Category

Daily Briefs

Sep 30
0

Daily Brief Industrials: Shinsegae Eng & Construction, Kawasaki Heavy Industries, Canvest Environmental Protection Group, Tokyo Metro, Srg Takamiya and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Emart’s Tender Offer for Shinsegae Construction: Arb Trading Angles
  • Best Outright and Pair Trades for an Ishiba-Led LDP
  • Merger Arb Mondays (30 Sep) – Canvest, Henlius, CPMC, Xingda, Fuji Soft, Capitol, Dyna-Mac
  • Tokyo Metro (9023 JP) IPO:  TPX Inclusion in November; Global Indices: One in October, One in Feb
  • Tender Offer and Taking Private of Shinsegae E&C by E Mart
  • Tokyo Metro IPO – Peer Comparison – Pre-COVID to 1Q25
  • Takamiya (2445 JP) – 1Q Follow-Up

Emart’s Tender Offer for Shinsegae Construction: Arb Trading Angles

By Sanghyun Park

  • E Mart Inc is launching a tender offer for 27.33% of Shinsegae Eng & Construction, offering ₩18,300 per share, a 14% premium, from September 30 to October 29.
  • This tender’s got zero cancellation or proration risk since they’re all in to buy every share tendered. That makes it a prime event for close spread tracking and trading opportunities.
  • Emart needs 95% of Shinsegae Construction’s shares to delist, requiring 22% of the remaining 27%. If they can’t get it, a stock swap with Emart shares is likely.

Best Outright and Pair Trades for an Ishiba-Led LDP

By Andrew Jackson

  • Expect continued buying in defense related, as well as banks and life insurance, renewable energy, rails, and medical IT plays with Shigeru Ishiba at the helm. 
  • The Market will be quick to rotate out of names which spiked into Friday’s close on expectation for a Sanae Takaichi win in the LDP election.  
  • Ishiba has been a vocal critic of Abenomics, and his potential policies aimed at higher taxes for investment incomes and capital gains are set to weigh on the Japanese market. 

Merger Arb Mondays (30 Sep) – Canvest, Henlius, CPMC, Xingda, Fuji Soft, Capitol, Dyna-Mac

By Arun George

Tokyo Metro (9023 JP) IPO:  TPX Inclusion in November; Global Indices: One in October, One in Feb

By Brian Freitas

  • Tokyo Metro (9023 JP)‘s listing has been approved by the JPX and the stock is expected to start trading on the Prime Market from 23 October.
  • At the reported indicative IPO price of JPY 1100/share, Tokyo Metro (9023 JP) will be valued at JPY 639.1bn (US$4.49bn).
  • The stock should be added to one global index on 29 October, to the TOPIX INDEX on 28 November, while another global index inclusion will need to wait till February.

Tender Offer and Taking Private of Shinsegae E&C by E Mart

By Douglas Kim

  • E Mart Inc (139480 KS) is conducting a tender offer of 27.33% of Shinsegae Eng & Construction (034300 KS) (2,126,611 shares) and trying to take the company private afterwards.
  • The tender offer price is 18,300 won, which is 14% higher than the closing price on Friday (27 September).
  • Tender offer is likely to result in higher price of Shinsegae E&C in the near term but it could be difficult for E Mart to take it private this year. 

Tokyo Metro IPO – Peer Comparison – Pre-COVID to 1Q25

By Sumeet Singh

  • Tokyo Metro (9023 JP)‘s  shareholders aim to raise up to US$2.3bn in its Japan IPO.
  • Tokyo Metro (TKM) is one of the two metro network operators in the Tokyo region. It operates nine subway lines with a total of 180 stations.
  • We have looked at the company’s past performance in our previous note. In this note, we will undertake a peer comparison.

Takamiya (2445 JP) – 1Q Follow-Up

By Sessa Investment Research

  • Takamiya (hereafter, the Company) reported its 1Q FY2025/3 sales of ¥9,745 mn (-1.5% YoY), operating profit of ¥262 mn (-35.8% YoY), ordinary profit of ¥344 mn (-44.1% YoY), and profit attributable to owners of parent (hereafter, net profit) of ¥195 mn (-53.2% YoY).
  • By segment, the Platform Business and Overseas Business saw increases in both sales and profit, while the Rental Business saw sales increase but profit decline, and the Sales Business saw declines in both sales and profit.

  • 1H 2025/3 and the full-year forecast remains unchanged from the initial forecast.

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Sep 30
0

Daily Brief Health Care: Shanghai Henlius Biotech , Global Health (Medanta), Pacific Smiles and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • China Healthcare Weekly (Sep29)- Henlius Privatization Update, NHSA Fee Control, Hansoh Is Exception
  • Global Health (MEDANTA IN): Margins Pressure To Continue; Possible Takeover Bid In Future
  • Pacific Smiles: Key Shareholders Reject Genesis’ Terms

China Healthcare Weekly (Sep29)- Henlius Privatization Update, NHSA Fee Control, Hansoh Is Exception

By Xinyao (Criss) Wang

  • The medical insurance statistics reflected that medical insurance funds are facing increasing pressure. If income/expenditure maintain average growth rates in recent years, there would be a deficit state in 2024.
  • Due to increasing pressure on medical insurance fund, the entire process of innovative drug evaluation/NRDL negotiation this year will be more strictly enforced, but Hansoh (3692 HK) is an exception.
  • For Henlius’ privatization, completing Pre-Conditions in 24Q4 looks tight. Considering Chinese New Year holiday, the privatization may not be completed until at least mid-to-late February 2025.The deal will get up.

Global Health (MEDANTA IN): Margins Pressure To Continue; Possible Takeover Bid In Future

By Tina Banerjee

  • Global Health (Medanta) (MEDANTA IN) reported double-digit growth in revenue in Q1FY25, while sluggish developing hospitals was a drag on the margins.
  • The company plans to add 1,000–1,500 beds in next 2–3 years, with most of the planned bed addition being at greenfield projects entailing higher capex per bed.
  • Medanta does offer synergy as a possible takeover candidate for a leading hospital operator.

Pacific Smiles: Key Shareholders Reject Genesis’ Terms

By David Blennerhassett

  • MA Financial (13.43% of shares out) and Alison Hughes (9.94%) said they will reject Genesis A$1.8675/share offer for Pacific Smiles (PSQ AU); therefore the 90% acceptance condition cannot be met.
  • Separately, PSQ’s board also rejected terms, as Genesis Offer is below NDC’s A$2.05/share Offer; plus terms are “opportunistic” as they do not account for PSQ’s recent strong financial improvement. 
  • What now? Genesis has the flexibility to bump. Expect that to occur. They won’t fold their tent in response to this latest development.

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Sep 30
0

Daily Brief Consumer: Tongcheng Travel Holdings , Pop Mart International Group L, China Resources Beverage, TSE Tokyo Price Index TOPIX, MercadoLibre , Tencent Music, Ricegrowers Ltd and more

By | Consumer, Daily Briefs

In today’s briefing:

  • BUY/SELL/HOLD: Hong Kong Stock Updates (September 28)
  • Weekly Consumer Tales: Pop Mart’s Unique Appeal-Miniso’s Yonghui Buy-China Stimulus-MTR’s Spicy IPO
  • CR Beverage IPO: Less Diversification, Falling Growth Rates and Inferior Margins Compared to Peers
  • Achieving the % of Female Board Members by Matching Numbers Doesn’t Achieve the Original Goal Either
  • MercadoLibre:  Entering the Global Stage
  • Tencent Music (TME): All Cheerful Data in Music, To Grow in Q3 After 3 Flat Years
  • ECM Weekly (30th Sep 2024) – Tokyo Metro, Rigaku, China Resources, K Bank, Mr DIY, Smartworks, IREDA
  • Ricegrowers Ltd – Moving valuation to FY25f consensus

BUY/SELL/HOLD: Hong Kong Stock Updates (September 28)

By David Mudd

Weekly Consumer Tales: Pop Mart’s Unique Appeal-Miniso’s Yonghui Buy-China Stimulus-MTR’s Spicy IPO

By Devi Subhakesan

  • Welcome to Consumer Tales & Trends, your weekly roundup of the latest corporate developments, investment reports and sector events in the consumer industry.
  • Despite weak consumer spending in China, there are a few bright spots—an example is Pop Mart International Group (9992 HK)’s strong sales growth partly driven by the “red lipstick effect.”
  • Miniso (MNSO US)’s stock plunged early last week but quickly recovered, reinforcing our view that its deal with Yonghui Superstores Co., (601933 CH) has some promise.

CR Beverage IPO: Less Diversification, Falling Growth Rates and Inferior Margins Compared to Peers

By Shifara Samsudeen, ACMA, CGMA

  • The Chinese drinking water and beverage maker, China Resources Beverage (CRB HK) has filed for an IPO on the HKEx to raise around US$1.0bn.
  • The company’s operations are heavily concentrated towards drinking water products where the market competition is intensifying leading into a price war.
  • CR Beverage’s margins are inferior compared to peer Nongfu Spring (9633 HK) who has diversified into other beverage products from drinking water to grow its financials.

Achieving the % of Female Board Members by Matching Numbers Doesn’t Achieve the Original Goal Either

By Aki Matsumoto

  • Since it’s difficult for all prime market companies to achieve the 30% female board members by 2030, the goal may be achieved by including non-statutory executive officers in board members.
  • Companies are stuck in matching numbers, and government is unwilling to address the fundamental issues. There’s risk that original objective of shifting to value-creating management through ensuring diversity is lost.
  • Policy changes to create environment where women don’t have to leave workforce for childbirth, childcare, etc., and to change people’s mindsets are impossible without the leadership of a non-diverse legislature.

MercadoLibre:  Entering the Global Stage

By Steven Holden

  • MercadoLibre continues its climb, hitting new highs in both Average Weight (0.4%) and Funds Invested (23.42%).
  • In the last six months, 4.2% of funds have added MercadoLibre to their portfolios, while key EM holdings HDFC Bank and AIA Group have seen declining ownership.
  • 20 new positions have been opened over the last 6-months, with Goldman Sachs Global Impact Opportunities and Fidelity Special Situations among the fresh buyers, against only 6 closures.

Tencent Music (TME): All Cheerful Data in Music, To Grow in Q3 After 3 Flat Years

By Ming Lu

  • The weak business, social entertainment, become insignificant in recent quarters.
  • All operating data in music is promising, including paying user base, ARPPU, and sublicensing revenue.
  • We set an upside of 20% and a price target of US$14.80 for the end of 2025.

ECM Weekly (30th Sep 2024) – Tokyo Metro, Rigaku, China Resources, K Bank, Mr DIY, Smartworks, IREDA

By Sumeet Singh

  • Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
  • On the IPO front,  it hasn’t been this busy for a while, with deals live in Japan and Korea, and possible launches in Hong Kong and India as well.
  • On the placements front, there were a few China ADR blocks and other placements across the region.

Ricegrowers Ltd – Moving valuation to FY25f consensus

By Research as a Service (RaaS)

  • RaaS has published an update report on agri-FMCG group Ricegrowers, trading as SunRice (ASX:SGLLV), updating our Sum of The Parts (SoTP) valuation as we move from FY24 estimates/consensus data to FY25.
  • In moving our consensus valuation year from FY24 to FY25, we look back on selected RaaS peer EPS growth trends over the past four years (FY23a-FY26f inclusive).
  • Only four stocks including SGLLV [the others (ASX:TWE), (ASX:RIC) and (SB:EBRO)] have not or are not forecast to have a down year during this period.

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Sep 30
0

Daily Brief Financials: Shin Kong Financial Holding, NIFTY Index, HKEX and more

By | Daily Briefs, Financials

In today’s briefing:

  • Shin Kong (2888 TT) Deal – Activism, Proxy Advice, Proxy Fight, Voting Risk, and Discounts
  • EQD / NSE Vol Update / Vols Bogged Down by Holiday Shortened Week in Spite of Upcoming Event Risks
  • HK Connect SOUTHBOUND Flows (To 27 Sep 2024); Everything Changed This Week

Shin Kong (2888 TT) Deal – Activism, Proxy Advice, Proxy Fight, Voting Risk, and Discounts

By Travis Lundy

EQD / NSE Vol Update / Vols Bogged Down by Holiday Shortened Week in Spite of Upcoming Event Risks

By Sankalp Singh

  • Nifty50 IVs have finally cracked below 11.0% levels – in spite of upcoming event-risks. Moves lower have been exacerbated by the holiday shortened week.   
  • Vol-Regime Model has switched to “Low & Down” vol-state in Nifty50. Tactical implications:  Short Vega exposure less favourable going forward.
  • Risk premia selloff has driven Vol Term-Structure deeper into Contango. Smile & Skew characteristics have compressed in congruence with lower IVs.

HK Connect SOUTHBOUND Flows (To 27 Sep 2024); Everything Changed This Week

By Travis Lundy

  • SOUTHBOUND was a net buyer this week. But who cares. They actually net sold US$2bn of everything which was not Alibaba Group Holding (9988 HK). 
  • Bigger news, of course, was China’s “Bazooka” which LOOKS exciting. Stocks are up 15-20% in four days. Lots of BIG numbers are being thrown around. Not everything is “real money.”
  • It takes a little sleuthing to figure out where the real money is. For that, I suggest reading China’s [Maybe] Biggish [Quasi?] Bazooka and more below.

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Sep 29
0

Daily Brief ESG: Trivium – ESG Report – Lucror Analytics and more

By | Daily Briefs, ESG

In today’s briefing:

  • Trivium – ESG Report – Lucror Analytics
  • Bubbles Group – ESG Report – Lucror Analytics

Trivium – ESG Report – Lucror Analytics

By Leonard Law, CFA

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Trivium’s ESG as “Strong”, in line with its Environmental and Social scores, while Governance is “Adequate”. Controversies are “Immaterial” and Disclosure is “Strong”.

In 2023, Trivium received EcoVadis’ Platinum rating for the third consecutive year, and earned an A rating from CDP for Climate.

Bubbles Group – ESG Report – Lucror Analytics

By Tanvi Arora

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Bubbles Group’s ESG as “Adequate”, in line with its Social and Governance scores, while the Environmental score is “Weak”. Controversies are “Immaterial” but Disclosure is “Weak”.

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Sep 29
0

Daily Brief Thematic (Sector/Industry): From Huawei with Vengeance: Huawei Alliance Took Shares in Chinese EV and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • From Huawei with Vengeance: Huawei Alliance Took Shares in Chinese EV

From Huawei with Vengeance: Huawei Alliance Took Shares in Chinese EV

By Eric Wen

  • Since the US started sanctioning Huawei in 2017, the China tech giant has maneuvered into many new fields. This time, its HIMA (Huawei Intelligent Mobility Alliance) is showing renewed momentum;
  • China is the greatest EV market in the world. But what is being masked in the robust growth is the divergence between BEV and PHEV, and Huawei’s role in PHEV;
  • We expect the trend to continue as Chery, JAC and BAIC will launch their HIMA models in 2025. Most importantly, these vendors gain share in the mid-to-high price segments.

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Sep 29
0

Daily Brief ECM: Kumyang’s Capital Raise Drop: Breaking It Down from an Arb Trading Play and more

By | Daily Briefs, ECM

In today’s briefing:

  • Kumyang’s Capital Raise Drop: Breaking It Down from an Arb Trading Play
  • Upstream Bio Valuation Summary, DCF Analysis Suggests U.S. Business (Ex. COPD) Is Worth ~$1.8B
  • Weekly Deals Digest (29 Sep) – Tokyo Metro, CR Beverage, K Bank, Fuji Soft, Sun Art, Xingda, Capitol

Kumyang’s Capital Raise Drop: Breaking It Down from an Arb Trading Play

By Sanghyun Park

  • Kumyang’s major shareholders are backing the capital raise, committing ₩160B of the ₩450B total. We’re also likely to see some robust price support for the stock rights in early phases.
  • Institutional investors still make up about 10% of the SO, with around 8% being active players. These guys could easily start dumping stock rights in bulk.
  • Retail holds nearly 50% of the SO, increasing volatility and boosting chances for arb spreads. Kumyang’s stock futures have solid liquidity, making it a prime arb trading setup.

Upstream Bio Valuation Summary, DCF Analysis Suggests U.S. Business (Ex. COPD) Is Worth ~$1.8B

By Andrei Zakharov

  • Upstream Bio, a biotech company focused on developing therapeutics that address severe asthma, CRSwNP and COPD, will price its IPO in October.
  • Upstream Bio has raised ~$400M to date. Their last round was a $200M Series B led by private equity firm Enavate Sciences and Venrock Healthcare Capital Partners.
  • My DCF analysis suggests that Upstream Bio’s core U.S. business (ex. COPD) may be worth ~$1.8B. The severe asthma and CRSwNP markets represent a potential $10B+ opportunity.

Weekly Deals Digest (29 Sep) – Tokyo Metro, CR Beverage, K Bank, Fuji Soft, Sun Art, Xingda, Capitol

By Arun George

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Sep 29
0

Daily Brief Event-Driven: (Mostly) Asia-Pac M&A: Dyna Mac and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • (Mostly) Asia-Pac M&A: Dyna Mac, Platinum Asset, Fuji Soft, JTower, Arvida, Korea Zinc, Sun Art
  • Sun Art Retail (6808 HK): Alibaba’s Stake Draws PE Interest
  • Last Week in Event SPACE: DFI/JD.com/Yonghui, Alibaba/Sun Art, New World Development, Austal
  • Kum Yang: Rights Offering Capital Raise of 450 Billion Won
  • Quiddity Leaderboard TDIV Dec 24: 5 ADDs/4 DELs Likely; US$1.38bn One-Way
  • Quiddity Leaderboard T50/​​​100 Dec 24: An Alternate Possibility for Formosa Sumco TDIV Deletion

(Mostly) Asia-Pac M&A: Dyna Mac, Platinum Asset, Fuji Soft, JTower, Arvida, Korea Zinc, Sun Art

By David Blennerhassett

Sun Art Retail (6808 HK): Alibaba’s Stake Draws PE Interest

By Arun George

  • Sun Art Retail (6808 HK) entered a trading halt under the Code on Takeovers and Mergers. Bloomberg suggests Alibaba Group Holding (BABA US)’s stake is attracting preliminary interest from PE.
  • Alibaba built its 78.70% stake through two purchases in 2017 (HK$6.50) and 2021 (HK$8.10). An exit would align with the strategy to focus on the core business segments. 
  • The recent Miniso-Yonghui transaction could have prompted PE to act. An offer at book value would imply HK$2.50, a 40% premium to the last close price. 

Last Week in Event SPACE: DFI/JD.com/Yonghui, Alibaba/Sun Art, New World Development, Austal

By David Blennerhassett

Kum Yang: Rights Offering Capital Raise of 450 Billion Won

By Douglas Kim

  • Kum Yang announced a rights offering capital raise of 450 billion won which will be used for facility investments and debt repayment. 
  • The estimated rights offering price is 38,950 won, which is 31% lower than current price (56,500 won). 
  • We remain negative on Kum Yang. Despite the sharply lower rights offering price relative to current price, we would avoid the rights offering. 

Quiddity Leaderboard TDIV Dec 24: 5 ADDs/4 DELs Likely; US$1.38bn One-Way

By Janaghan Jeyakumar, CFA

  • In this insight, we take look at Quiddity’s expectations for index changes and capping flows for the TDIV Index for the December 2024 index rebal event.
  • I currently see 5 ADDs and 4 DELs but there are several names close to the border and expectations could change before the base date as prices move around.
  • The current estimate for one-way flow in December 2024 is US$1.38bn.

Quiddity Leaderboard T50/​​​100 Dec 24: An Alternate Possibility for Formosa Sumco TDIV Deletion

By Janaghan Jeyakumar, CFA

  • The T50 index represents the top 50 largest stocks by market capitalization in the Taiwan Stock Exchange (TWSE). The T100 index represents the next 100 largest names (51-150 ranks).
  • In this insight, we take a look at the potential ADDs and DELs for the December 2024 index rebal event.
  • Currently, we see one change for T50 and one change for T100 but there are two more months to the base date and our expectations can change until then.

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Sep 29
0

Daily Brief Equity Bottom-Up: NWD 17 HK:  Kitchen Sink Results and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • NWD 17 HK:  Kitchen Sink Results, Overhang Removed, the BEST Stock to BUY in New Rate Cut Cycle
  • PT Catur Sentosa Adiprana – One-Stop Shop for Homemakers
  • ESDS Software Solution- Forensic Analysis
  • BlackBerry Limited: Strategic Business Growth & Focus on IoT and Cybersecurity Driving Our ‘Buy’ Rating! – Major Drivers
  • Uber to Partner With China’s WeRide for Autonomous Vehicles, Beginning in UAE
  • Appian Corporation: Dealing With Geographic Expansion Challenges & Other Roadblocks! – Major Drivers
  • PowerSchool Holdings: AI Integration and PowerBuddy Platform Can Really Catalyze Growth? – Major Drivers
  • Warner Bros. Discovery Inc.: Focus on Direct-To-Consumer (DTC) Initiatives & Leveraging Content Across Platforms To Drive Growth! – Major Drivers
  • Arthur J. Gallagher & Co.: Acquisition of Cornerstone Insurance to Strengthen Regional Expertise & Other Major Drivers
  • Conagra Brands Inc.: Revamping Marketing Strategies & Focusing On Product Innovation! – Major Drivers

NWD 17 HK:  Kitchen Sink Results, Overhang Removed, the BEST Stock to BUY in New Rate Cut Cycle

By Jacob Cheng

  • NWD reported HKD20bn loss attributable to shareholders.  There is no dividend declared.  However, we view this as kitchen sink.  The stock rallied 22% on Friday
  • CEO Adrian Cheng stepped down and COO Eric Ma, former Secretary for Development for HK, is the new CEO.  This represents a shift from family business to professional management
  • As Fed initiated new rate cut cycle, NWD will benefit most given high gearing.  With macro backdrop in U.S. and China, NWD is the Best stock to buy now

PT Catur Sentosa Adiprana – One-Stop Shop for Homemakers

By Angus Mackintosh

  • Catur Sentosa Adiprana (CSAP IJ) has grown rapidly from a building material distribution company into the leading retailer in building materials and home improvement through Mitra10 and shop-in-shop Atria. 
  • The company already has 52 Mitra10 superstores in Indonesia, with six distribution centres across the country, selling a range of home decoration products, with an increasing portion of private labels.
  • CSAP has seen a market improvement in margins for Mitra10 through more private label and scale benefits, and margins will continue to improve. Valuations are attractive with earnings growth accelerating. 

ESDS Software Solution- Forensic Analysis

By Nitin Mangal

  • In this insight, we briefly study forensics of Esds Software Solution (1603279D IN) , currently unlisted, had tried to float an IPO back in 2021 but it was later withdrawn.
  • The company offers managed cloud service and end to end multi-cloud requirements provider. Revenue growth has been moderate while margin erosion has been a concerning issue for the company.
  • Key forensic takeaways include nature of contingent liabilities, inability to generate cash and liquidity woes, quality of receivables, etc. 

BlackBerry Limited: Strategic Business Growth & Focus on IoT and Cybersecurity Driving Our ‘Buy’ Rating! – Major Drivers

By Baptista Research

  • BlackBerry, a software company specializing in security software and services, recently discussed its financial results for the first quarter of fiscal year 2025.
  • The company remains committed to its strategy, focusing on enhancing its Internet of Things (IoT) and cybersecurity divisions and driving cost efficiencies.
  • Despite facing industry headwinds and the challenge of elongated sales cycles, BlackBerry’s performance this quarter reflects a robust operational momentum and strategic execution.

Uber to Partner With China’s WeRide for Autonomous Vehicles, Beginning in UAE

By Caixin Global

  • Uber Technologies Inc. has entered into a partnership with Chinese autonomous driving startup WeRide Corp. to promote self-driving taxis on Uber’s global platform, with the first deployment set to take place in Abu Dhabi by the end of the year, the two companies said Wednesday.
  • Founded in 2017, WeRide develops autonomous driving technology and is testing or deploying it commercially in 30 cities in seven countries.

  • In July 2023, the company was granted the United Arab Emirates’ first and only national license for self-driving vehicles, enabling it to test and operate its autonomous vehicles on public roads across the entire country.

Appian Corporation: Dealing With Geographic Expansion Challenges & Other Roadblocks! – Major Drivers

By Baptista Research

  • Analyzing Appian Corporation’s Second Quarter 2024 financial results reveals a company actively balancing growth ambitions with operational efficiencies.
  • The financial performance of Appian Corporation this quarter exhibits significant adherence to its core growth strategies while maintaining a prudent eye towards profitability.
  • For the quarter, Appian reported a robust year-over-year revenue increase, with total revenue rising 15% to $146.5 million.

PowerSchool Holdings: AI Integration and PowerBuddy Platform Can Really Catalyze Growth? – Major Drivers

By Baptista Research

  • PowerSchool has reported its first quarter 2024 earnings with positive results, continuing its momentum with a strong performance across key financial metrics.
  • The company reported a total revenue of $185 million, marking a 16% year-over-year increase.
  • This was driven predominantly by subscription and support revenues, which grew 18% year-over-year to $167 million and constituted 90% of the total revenue.

Warner Bros. Discovery Inc.: Focus on Direct-To-Consumer (DTC) Initiatives & Leveraging Content Across Platforms To Drive Growth! – Major Drivers

By Baptista Research

  • Warner Bros. Discovery recently held its Q2 earnings call for 2024, an event of crucial importance for investors and industry observers alike.
  • The call encapsulated various dimensions of the business’s performance and strategic direction, touching on both high-performing areas and ongoing challenges.
  • A primary highlight from the call was the robust performance of Warner Bros. Discovery’s direct-to-consumer (DTC) segment, notably in the streaming realm.

Arthur J. Gallagher & Co.: Acquisition of Cornerstone Insurance to Strengthen Regional Expertise & Other Major Drivers

By Baptista Research

  • Arthur J.
  • Gallagher & Co. reported strong financial performance for Q2 2024, underpinned by significant growth in revenue and earnings.
  • The firm’s combined Brokerage and Risk Management segments saw a 14% increase in revenue and a 7.7% rise in organic growth, with an adjusted EBITDAC margin expansion of 102 basis points to 31.4%.

Conagra Brands Inc.: Revamping Marketing Strategies & Focusing On Product Innovation! – Major Drivers

By Baptista Research

  • Conagra Brands, in their Q4 and Fiscal Year 2024 earnings, presented a mixed set of results reflecting a transitional phase in consumer purchasing behavior and pricing adaptation.
  • CEO Sean Connolly emphasized the gradual normalization of the operating environment as consumers adjust to new price benchmarks, a process he described as ongoing rather than immediate.
  • Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

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Sep 29
0

Daily Brief Macro: Overview #10 -China Knocks It Out of the Park and more

By | Daily Briefs, Macro

In today’s briefing:

  • Overview #10 -China Knocks It Out of the Park
  • U.S. August Personal Income and Spending – Core PCE Prices Looking Subdued in Q3

Overview #10 -China Knocks It Out of the Park

By Rikki Malik

  • A review of recent events/data impacting our investment themes or outlook
  • China announces a barrage of  fiscal and monetary stimulus plans
  • New LDP leader and Japan Prime Minister impacts the markets

U.S. August Personal Income and Spending – Core PCE Prices Looking Subdued in Q3

By Alex Ng

  • August’s PCE price data, up 0.1% both overall and core (0.09% and 0.13% respectively before rounding) shows the core rate softer than expected, and well below the 0.3% core CPI.
  • Personal income and spending gains 0.2% and are both on the low side of expectations but a narrower August advance goods trade deficit of $94.3bn from $102.8bn leaves positive.
  • Yr/Yr PCE prices fell to 2.2% from 2.5%, weaker than expected, though the core rate at 2.7% from 2.6% is slightly stronger than expected.

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