Daily Briefs

Memory stocks underperformed the market, falling sharply with the recent overall market rout and failing to rebound sufficiently with the latest market rally.
Leading Memory names Micron, SK Hynix, Samsung are all substantially below their 52-week highs after market reports of slowing memory demand from PC and mobile industries and inventory liquidation.
Taiwan names Nanya Tech, Silicon Motion, Phison are all we below their highs. Micron results on September 25th MT will provide a major outlook update for the market.

Memory Monitor: Micron Results Show Clear Signs of Memory Market Upswing; DRAM Growth Upgraded

By Small Cap Consumer Research

Micron’s latest results show a clear improvement in the Memory cycle. The company’s gross margin increased and guided for a further strong margin increase next quarter.
Micron increased its overall DRAM industry growth forecast while maintaining its NAND flash forecast. Micron reiterated expectations for FY2025E to deliver record revenue for the company, with improving profitability.
Positive news for fallen Memory industry shares — Within our Memory universe we have Structural Long ratings for Micron Technology (MU US), SK Hynix (000660 KS), and Silicon Motion Technology (SIMO US).

SPX Corporation – These Are The 4 Biggest Challenges In Its Path!

By Baptista Research

SPX Technologies has demonstrated robust growth and strategic execution in its Q2 2024 results, prompting an increase in full-year guidance.
The company’s business segments, particularly the HVAC (Heating, Ventilation, and Air Conditioning) and Detection & Measurement, have shown substantial growth and profitability improvements, driven primarily by increased operational efficiencies, strategic acquisitions, and strong demand in diverse markets such as data centers, health care, and industrial facilities.
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.

Elbit Systems Ltd –

By Zacks Small Cap Research

Zacks Small-Cap Research Note for Elbit Systems (ESLT)

LE: European Tour: Creating a New Vision; Reiterate Buy, $20 PT

We are reiterating our Buy rating, projections and $20 price target for Lands’ End after visiting the company’s European headquarters in Oakham, United Kingdom and meeting with management.
We believe, with operations overwhelmingly focused on the United Kingdom and German consumer, there remains multiple growth opportunities, from new categories, expansion into Europe-only looks, lower discounting and continuing to upgrade the customer mix to more lifestyle and features, rather than pricing, driven.
Further, with Europe taking the lead in terms of quicker buys and reacting/setting fashion trends, they will increasingly have a roll in setting the product pace for the United States operations.

Varex Imaging Corp (VREX US): No Near-Term Respite Visible From China Headwinds

By Tina Banerjee

Varex Imaging Corp (VREX US) reported 10% YoY drop in revenue and a squeeze in profits as well in Q3FY24, driven by weakness in Medical segment business.
China market softness continues to drag the operating performance of the company. The woes faced in China does not appear to subside quickly in the near foreseeable future.
The company has guided for Q4FY24 sales and EPS in the range of $190-210M and $0.00-0.15, respectively, representing significant drop from year-ago quarter.

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Sep 26

Daily Brief India: NTPC Ltd, Polycab India and more

By Smartkarma Daily Briefs | Daily Briefs, India

In today’s briefing:

NIFTY Indices: Flows (Post Capping) At the Close Tomorrow; Round-Trip US$3.3bn
Polycab India (POLYCAB IN) | Inventory, Demand Environment & Competition

NIFTY Indices: Flows (Post Capping) At the Close Tomorrow; Round-Trip US$3.3bn

By Brian Freitas

The NIFTY Index, Nifty Next 50 Index, NSE Nifty Bank Index, CNXIT Index, Nifty Midcap 150 Index, Nifty100 Low Volatility30 Index and the CPSE ETF rebalance at the close tomorrow.
The round-trip trade across the indices is US$3.3bn and there are 13 stocks with over 1 day of ADV to trade from passive trackers.
Stocks with the largest inflows are Trent, Bharat Electronics, Canara Bank, Bharat Heavy Electricals, Oil & Natural Gas Corp, Coal India, Hindustan Aeronautics and InterGlobe Aviation.

Polycab India (POLYCAB IN) | Inventory, Demand Environment & Competition

By Pranav Bhavsar

We spoke to cable distributors and industry experts to understand any concerns regarding industry-wide inventory levels and to gauge the current demand environment.
Stocks in focus include Polycab India (POLYCAB IN); KEI Industries (KEII IN) & R R Kabel (2333180Z IN).
Overall industry business momentum remains strong, project delays and competition warrant attention.

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Sep 26

Daily Brief China: Taste Gourmet, Eternal Beauty Holdings Limited, New World Development and more

By Smartkarma Daily Briefs | China, Daily Briefs

In today’s briefing:

Taste Gourmet (8371 HK): H1 FY25 Earnings Preview, 4.5x PE with 12% Yield
Pre-IPO Eternal Beauty Holdings – The Perfume Business in China May Not Be as Good as Expected
Morning Views Asia: New World Development

Taste Gourmet (8371 HK): H1 FY25 Earnings Preview, 4.5x PE with 12% Yield

By Sameer Taneja

Taste Gourmet (8371 HK) will report its H1 FY25 earnings in early November. The company isn’t reporting quarterly earnings because GEM board stocks are no longer required to do so.
We expect revenue and profit growth of 22% %/20% YoY, as the average number of HK restaurants has increased from 45 to 54, and most have ramped up.
Trading at 4.5x PE with a 12% dividend yield, 27% of the market cap in cash and a mainboard listing on the horizon there abundant catalysts for the future.

Pre-IPO Eternal Beauty Holdings – The Perfume Business in China May Not Be as Good as Expected

By Xinyao (Criss) Wang

The essence of Eternal Beauty’s business model is to earn a “price difference” of the brand and product portfolios, but this business model is difficult to generate high profit margins.
The situation and prospects of China’s perfume market are facing major changes. It‘s uncertain whether the perfume sales in the China market can maintain double-digit growth in the long term.
Eternal Beauty’s financial performance would face challenges due to changes in consumer preferences, shifts in China’s domestic policies, international trade disputes, geopolitical conflicts, etc. Valuation could be lower than peers.

Morning Views Asia: New World Development

By Leonard Law, CFA

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

New World Development

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Sep 26

Daily Brief Japan: Tohokushinsha Film, Tokyo Metro, Rigaku Holdings, ASICS Corp, Japan Metropolitan Fund Investment Corporation, TSE Tokyo Price Index TOPIX, Rakuten and more

By Smartkarma Daily Briefs | Daily Briefs, Japan

In today’s briefing:

Tohokushinsha (2329 JP) To 3D – “Not Today”; 3D May Go To The Mattresses
Tokyo Metro (9023 JP) IPO: The Bear Case
Rigaku Holdings IPO: Initial Thoughts
Asics (7936) | Q3 Preview; Revision of MTP
Rigaku IPO – The Positives – Catering to a Range of End Industries, and Track Record Has Been Strong
Japan Metropolitan Fund Placement – Relatively Small Deal to Digest
Tokyo Metro IPO – The Negatives – Hasn’t Recovered Fully but Div and Debt Have
Has the “Unit of Investment” Principle Spoiled the Companies?
Rakuten Mart Launching This Month

Tohokushinsha (2329 JP) To 3D – “Not Today”; 3D May Go To The Mattresses

By Travis Lundy

3D Investment Partners bought 5% of Tohokushinsha Film (2329 JP) by Mar-2023. A year later they had 17+%. 3D proposed changes. In July, 3D proposed a takeover, asking for DD.
Tohokushinsha responded to the proposals, then offered due diligence to 3D based on terms set by a Special Committee. 3D did not want those strict DD terms.
Yesterday, Tohokushinsha said “Fine.” The stock today fell 10% today. This is not a stalemate, but it means 3D may start to play harder.

Tokyo Metro (9023 JP) IPO: The Bear Case

By Shifara Samsudeen, ACMA, CGMA

Tokyo Metro (9023 JP), a mass transit operator, is seeking to raise up to US$2.3 billion. Pricing is on 15 October, and the listing is on 23 October.
In Tokyo Metro (9023 JP) IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
The bear case rests on mid-tier revenue growth, low revenue diversification, the highest leverage among peers and a sizeable post-IPO share overhang.

Rigaku Holdings IPO: Initial Thoughts

Rigaku Holdings (268A JP) provides cutting-edge analytical solutions centered on X-ray technology globally. The company is one of the largest players globally in X-ray diffraction instrument market.
The company has filed for an IPO on the Tokyo Stock Exchange and plans to raise proceeds of around US$900m from the IPO at a potential valuation of US$2bn.
In this insight, we discuss Rigaku’s business model, key drivers, financials and outlook for the company.

Asics (7936) | Q3 Preview; Revision of MTP

By Mark Chadwick

Asics is seeing robust D2C sales growth, now 40% of total sales, driving gross margins to 55.5% (+4.5 pp YoY) in 1H24.
High-Margin models and strong sales in Onitsuka Tiger and Sportsstyle categories support a forecasted 13% YoY sales increase in 2H24.
Asics’ strategic transformation, focusing on structural reforms and emerging markets, to drive upgraded MTP though FY26.

Rigaku IPO – The Positives – Catering to a Range of End Industries, and Track Record Has Been Strong

By Clarence Chu

Rigaku Holdings (268A JP) is looking to raise US$762m in its Japan IPO.
Rigaku engages in developing, manufacturing, sales and servicing scientific instruments specializing in X-ray technologies.
In this note, we will talk about the positive aspects of the deal.

Japan Metropolitan Fund Placement – Relatively Small Deal to Digest

Japan Metropolitan Fund Investment Corporation (8953 JP) aims to raise around US$140m to partly fund the acquisition of four assets.
The deal will be relatively small, in terms of ADV and dilution.
In this note, we will talk about the placement and run the deal through our ECM framework.

Tokyo Metro IPO – The Negatives – Hasn’t Recovered Fully but Div and Debt Have

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.
In this note, we talk about the not-so-positive aspects of the deal.

Has the “Unit of Investment” Principle Spoiled the Companies?

By Aki Matsumoto

The reason companies object to a reduction in the investment unit is the cost of shareholder relations, not the cost paid to the trust bank.
We should discuss whether it is better for the “unit of investment” principle to remain in place for the convenience of companies that want to pass company proposals smoothly.
It will be interesting to see if there will be a discussion on going back to basics and allowing single share holders to exercise their voting rights.

Rakuten Mart Launching This Month

By Michael Causton

Rakuten still gets a lot of flak for its mobile business but its core e-commerce operation continues to improve.
Rakuten will launch Rakuten Mart this month, an online supermarket but with Rakuten Ichiba vendors too.
Online food retailing is becoming a major source of competition with Amazon, Aeon and Seven & I all investing heavily but Rakuten is holding its own.

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Sep 26

Most Read: Shanghai Shenzhen CSI 300 Inde, Kioxia Holdings , Samsung Electronics, Huafa Property Services Group, Huchems Fine Chemical, Korea Zinc, Tokyo Metro, Tohokushinsha Film and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

China’s [Maybe] Biggish [Quasi?] Bazooka
Tech: Japan’s Biggest IPO in 6 Years, Kioxia, Is Off. Here Is the Likely Reason
Korea Exchange Announces The Korea Value Up Index
Huafa Props (982 HK): A Quick Word On Voting
Crunching Passive Impact Numbers for KRX Value-Up Index Names, Based on KRX’s Free-Float Rate Data
MBK Raises Tender Prices: ₩750,000 for Korea Zinc & ₩25,000 for Young Poong Precision
Tokyo Metro IPO – The Positives – Quasi-Monopoly Status
MBK Raises Tender Offer Price on Korea Zinc by 13.6% to 750,000 Won
Tohokushinsha (2329 JP) To 3D – “Not Today”; 3D May Go To The Mattresses
Tokyo Metro (9023 JP) IPO: The Bear Case

China’s [Maybe] Biggish [Quasi?] Bazooka

By Travis Lundy

Today, in a press conference held jointly by the Governor of the PBOC, the Director of the Financial Regulatory Bureau, and Chairman of the CSRC, China announced market stimulus measures.
The PBOC will cut RRR 50bp, the 7-day repo rate 20bp, guide effective mortgage rate cuts, and lower minimum down payments on second homes. There are other commercial RE measures.
Three major stock market measures were announced. A RMB500bn collateral swap programme, PBOC backing RMB300bn bank loans for corps to buy stocks, and a Plan to increase Central Huijin investments.

Tech: Japan’s Biggest IPO in 6 Years, Kioxia, Is Off. Here Is the Likely Reason

By Neil Campling

Significant peer price performance declines leaves IPO valuation stretched, the desired discount multiple to attract interest has suddenly become a premium
Investor interest in memory semiconductors, AI derivative stocks has cooled
Peer price sell-offs are extreme but could quickly change, reflecting the highly cyclical nature of the sector

Korea Exchange Announces The Korea Value Up Index

Korea Exchange announced the long awaited Korea Value Up Index (“K Value Up Index”) (composed of 100 stocks) today.
Korea Exchange used a 5-step screening process to select the 100 companies in this index including market cap, profitability, shareholder returns, market evaluation, and capital efficiency.
This Value Up index is part of the bigger “Corporate Value Up ” program in Korea. These efforts to improve Korea’s corporate governance policies is a marathon, not a sprint.

Huafa Props (982 HK): A Quick Word On Voting

By David Blennerhassett

Huafa Property (982 HK) shareholders overwhelmingly approved (99.52% [of shares present and/or via proxy] FOR; 0.48% AGAINST) the Scheme yesterday. This part was expected. The headcount test was less certain.
The final headcount tally, on a look-through basis into HKSCC Nominees by CCASS Participants, was 111 FOR, 14 AGAINST. Again, a pretty clear pass.
Normally a Scheme Vote, if approved, wouldn’t warrant a full note. But when the headcount test is involved, it is worthwhile understanding the mechanics.

Crunching Passive Impact Numbers for KRX Value-Up Index Names, Based on KRX’s Free-Float Rate Data

KRX 300 hit 1 trillion won AUM fast, but with local pensions more aggressive, the value-up’s early AUM could top 1 trillion, hitting up to 3 trillion in six months.
Hanjin KAL, S1 Corp, Hyundai Elevator, Nice Info, and Huchems are set for strong price action. The financial sector also stands out, seeing the biggest impact compared to other sectors.
Small caps under 1 trillion won see little passive impact, but solid plays exist under 3 trillion, so splitting large and small caps won’t limit target options much.

MBK Raises Tender Prices: ₩750,000 for Korea Zinc & ₩25,000 for Young Poong Precision

Hankyung reports MBK will raise Korea Zinc’s tender offer to ₩750,000 (14%) and Young Poong Precision’s to ₩25,000 (25%) before today’s market opens.
Hankyung and Maeil are top sources for market scoops, so it’s almost certain MBK leaked the tender price hike ahead of today’s trading.
MBK leaves Choi just five trading days to respond. Korea Zinc plans to raise ₩400 billion, but it’s still not enough for a counter-bid.

Tokyo Metro IPO – The Positives – Quasi-Monopoly Status

Tokyo Metro (9023 JP)‘s shareholders aim to raise up to US$2.3bn in its upcoming 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.
In this note, we talk about the positive aspects of the deal.

MBK Raises Tender Offer Price on Korea Zinc by 13.6% to 750,000 Won

MBK announced that it will raise the tender offer prices on Korea Zinc by 13.6% to 750,000 won and Young Poong Precision by 25% to 25,000 won.
If 100% of the 3,024,881 shares of Korea Zinc tender offer is completed, at the revised tender offer price of 750,000 won, this would be 2.27 trillion won in amount.
In term of probabilities, we would put a 80-85% probability that MBK/Jang family successfully completes the tender offers and takes over the controlling stakes of these two companies.

Tohokushinsha (2329 JP) To 3D – “Not Today”; 3D May Go To The Mattresses

By Travis Lundy

3D Investment Partners bought 5% of Tohokushinsha Film (2329 JP) by Mar-2023. A year later they had 17+%. 3D proposed changes. In July, 3D proposed a takeover, asking for DD.
Tohokushinsha responded to the proposals, then offered due diligence to 3D based on terms set by a Special Committee. 3D did not want those strict DD terms.
Yesterday, Tohokushinsha said “Fine.” The stock today fell 10% today. This is not a stalemate, but it means 3D may start to play harder.

Tokyo Metro (9023 JP) IPO: The Bear Case

Tokyo Metro (9023 JP), a mass transit operator, is seeking to raise up to US$2.3 billion. Pricing is on 15 October, and the listing is on 23 October.
In Tokyo Metro (9023 JP) IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
The bear case rests on mid-tier revenue growth, low revenue diversification, the highest leverage among peers and a sizeable post-IPO share overhang.

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Sep 26

Daily Brief Industrials: Tokyo Metro, Samsung C&T, Polycab India , Derichebourg SA, SPX Technologies , Elbit Systems and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Tokyo Metro (9023 JP) IPO: The Bear Case
NPS Sues Samsung’s Lee Jae-Yong
Tokyo Metro IPO – The Negatives – Hasn’t Recovered Fully but Div and Debt Have
Polycab India (POLYCAB IN) | Inventory, Demand Environment & Competition
Derichebourg – ESG Report – Lucror Analytics
SPX Corporation – These Are The 4 Biggest Challenges In Its Path!
Elbit Systems Ltd –

Tokyo Metro (9023 JP) IPO: The Bear Case

Tokyo Metro (9023 JP), a mass transit operator, is seeking to raise up to US$2.3 billion. Pricing is on 15 October, and the listing is on 23 October.
In Tokyo Metro (9023 JP) IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
The bear case rests on mid-tier revenue growth, low revenue diversification, the highest leverage among peers and a sizeable post-IPO share overhang.

NPS Sues Samsung’s Lee Jae-Yong

NPS has filed a lawsuit against Samsung Group Chairman Lee Jae-Yong and others involved in the merger of Samsung C&T (028260 KS) and Cheil Industries nearly nine years ago.
NPS is trying to recover damages estimated at up to 675 billion won.
If NPS is able to win in this lawsuit, it could result in other minority shareholders launching their own lawsuits which could further raise concerns on Samsung C&T.

Tokyo Metro IPO – The Negatives – Hasn’t Recovered Fully but Div and Debt Have

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.
In this note, we talk about the not-so-positive aspects of the deal.

Polycab India (POLYCAB IN) | Inventory, Demand Environment & Competition

By Pranav Bhavsar

We spoke to cable distributors and industry experts to understand any concerns regarding industry-wide inventory levels and to gauge the current demand environment.
Stocks in focus include Polycab India (POLYCAB IN); KEI Industries (KEII IN) & R R Kabel (2333180Z IN).
Overall industry business momentum remains strong, project delays and competition warrant attention.

Derichebourg – 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 Derichebourg’s ESG as “Adequate”, in line with the scores for the Environmental, Social and Governance pillars. Controversies are “Immaterial” and Disclosure is “Strong”.

We note that the company is active in the recycling industry, which is generally a positive driver.

SPX Corporation – These Are The 4 Biggest Challenges In Its Path!

By Baptista Research

SPX Technologies has demonstrated robust growth and strategic execution in its Q2 2024 results, prompting an increase in full-year guidance.
The company’s business segments, particularly the HVAC (Heating, Ventilation, and Air Conditioning) and Detection & Measurement, have shown substantial growth and profitability improvements, driven primarily by increased operational efficiencies, strategic acquisitions, and strong demand in diverse markets such as data centers, health care, and industrial facilities.
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.

Elbit Systems Ltd –

By Zacks Small Cap Research

Zacks Small-Cap Research Note for Elbit Systems (ESLT)

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Sep 26

Daily Brief Utilities: NTPC Ltd and more

By Smartkarma Daily Briefs | Daily Briefs, Utilities Sector

In today’s briefing:

NIFTY Indices: Flows (Post Capping) At the Close Tomorrow; Round-Trip US$3.3bn

NIFTY Indices: Flows (Post Capping) At the Close Tomorrow; Round-Trip US$3.3bn

By Brian Freitas

The NIFTY Index, Nifty Next 50 Index, NSE Nifty Bank Index, CNXIT Index, Nifty Midcap 150 Index, Nifty100 Low Volatility30 Index and the CPSE ETF rebalance at the close tomorrow.
The round-trip trade across the indices is US$3.3bn and there are 13 stocks with over 1 day of ADV to trade from passive trackers.
Stocks with the largest inflows are Trent, Bharat Electronics, Canara Bank, Bharat Heavy Electricals, Oil & Natural Gas Corp, Coal India, Hindustan Aeronautics and InterGlobe Aviation.

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Sep 26

Daily Brief Energy/Materials: Huchems Fine Chemical, Korea Zinc, Tocvan Ventures and more

By Smartkarma Daily Briefs | Daily Briefs, Energy & Materials Sector

In today’s briefing:

Crunching Passive Impact Numbers for KRX Value-Up Index Names, Based on KRX’s Free-Float Rate Data
MBK Raises Tender Prices: ₩750,000 for Korea Zinc & ₩25,000 for Young Poong Precision
MBK Raises Tender Offer Price on Korea Zinc by 13.6% to 750,000 Won
MBK Bumps Offers For Both Korea Zinc and Young Poong Precision
TOC: Strong Assets with a Near Term Path to Production

Crunching Passive Impact Numbers for KRX Value-Up Index Names, Based on KRX’s Free-Float Rate Data

KRX 300 hit 1 trillion won AUM fast, but with local pensions more aggressive, the value-up’s early AUM could top 1 trillion, hitting up to 3 trillion in six months.
Hanjin KAL, S1 Corp, Hyundai Elevator, Nice Info, and Huchems are set for strong price action. The financial sector also stands out, seeing the biggest impact compared to other sectors.
Small caps under 1 trillion won see little passive impact, but solid plays exist under 3 trillion, so splitting large and small caps won’t limit target options much.

MBK Raises Tender Prices: ₩750,000 for Korea Zinc & ₩25,000 for Young Poong Precision

Hankyung reports MBK will raise Korea Zinc’s tender offer to ₩750,000 (14%) and Young Poong Precision’s to ₩25,000 (25%) before today’s market opens.
Hankyung and Maeil are top sources for market scoops, so it’s almost certain MBK leaked the tender price hike ahead of today’s trading.
MBK leaves Choi just five trading days to respond. Korea Zinc plans to raise ₩400 billion, but it’s still not enough for a counter-bid.

MBK Raises Tender Offer Price on Korea Zinc by 13.6% to 750,000 Won

MBK announced that it will raise the tender offer prices on Korea Zinc by 13.6% to 750,000 won and Young Poong Precision by 25% to 25,000 won.
If 100% of the 3,024,881 shares of Korea Zinc tender offer is completed, at the revised tender offer price of 750,000 won, this would be 2.27 trillion won in amount.
In term of probabilities, we would put a 80-85% probability that MBK/Jang family successfully completes the tender offers and takes over the controlling stakes of these two companies.

MBK Bumps Offers For Both Korea Zinc and Young Poong Precision

By David Blennerhassett

MBK Partners has increased the Tender Offer prices for Korea Zinc (010130 KS) by 13.6% to ₩750,000 and Young Poong Precision (036560 KS) by 25% to ₩25,000.
All other terms remain the same. IF MBK secures the maximum 14.61% in KZ, this will be Korea’s largest-ever Tender Offer.
MBK made a public offering correction announcement today. The Choi family now has 5 business days in which to respond with a counteroffer.

TOC: Strong Assets with a Near Term Path to Production

By Atrium Research

Tocvan is centred around its clear and achievable objectives, looking to develop its flagship Gran Pilar Gold Project to near-term production.
Following a maiden resource this fall, a pilot plant is expected to be permitted, constructed, and producing gold as early as H1/25.
Beyond the pending resource estimate, the Gran Pilar Project shows significant growth potential across its 2,200ha+ land package.

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Sep 26

Daily Brief TMT/Internet: Micron Technology, United Microelectron Sp Adr, Dell Technologies , Esker SA and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

Memory Monitor: Upcoming Micron Results & Outlook Key Amid Reports of Inventory Liquidation
Memory Monitor: Micron Results Show Clear Signs of Memory Market Upswing; DRAM Growth Upgraded
United Microelectronics: Intel Foundry Should Take a Stake; Latest News Makes This More Likely
Tech Supply Chain Tracker (26-Sep-2024): Aug 2024 notebook shipment update
Esker – Proposed bid for the company confirmed

Memory Monitor: Upcoming Micron Results & Outlook Key Amid Reports of Inventory Liquidation

Memory stocks underperformed the market, falling sharply with the recent overall market rout and failing to rebound sufficiently with the latest market rally.
Leading Memory names Micron, SK Hynix, Samsung are all substantially below their 52-week highs after market reports of slowing memory demand from PC and mobile industries and inventory liquidation.
Taiwan names Nanya Tech, Silicon Motion, Phison are all we below their highs. Micron results on September 25th MT will provide a major outlook update for the market.

Memory Monitor: Micron Results Show Clear Signs of Memory Market Upswing; DRAM Growth Upgraded

Micron’s latest results show a clear improvement in the Memory cycle. The company’s gross margin increased and guided for a further strong margin increase next quarter.
Micron increased its overall DRAM industry growth forecast while maintaining its NAND flash forecast. Micron reiterated expectations for FY2025E to deliver record revenue for the company, with improving profitability.
Positive news for fallen Memory industry shares — Within our Memory universe we have Structural Long ratings for Micron Technology (MU US), SK Hynix (000660 KS), and Silicon Motion Technology (SIMO US).

United Microelectronics: Intel Foundry Should Take a Stake; Latest News Makes This More Likely

Given UMC’s partnership with Intel to produce chips using Intel’s 12nm fab capacity, we believe latest Intel developments increase the opportunity for Intel Foundry to take a stake in UMC.
Intel’s Foundry business makes a strong partner for UMC who has deep foundry experience and talent, but doesn’t have leading edge fabs nor the balance sheet to build them.
If Intel Foundry Services spins out or Intel strengthens its balance sheet through a deal with Qualcomm/Apollo, the potential for a deeper UMC-Intel Foundry partnership becomes even more compelling.

Tech Supply Chain Tracker (26-Sep-2024): Aug 2024 notebook shipment update

By Tech Supply Chain Tracker

Aug 2024 Notebook shipments on track for delivery with tracking information soon. Apple MR device facing possible upgrade to 1,500 PPI OLED display.
Automotive CIS tech set to advance by 2024. Taiwan offers permanent residence to address talent shortage in AI industry.
UK showcases compound semiconductor strength and collaboration with Taiwan. Henkel expands semiconductor focus in India for market growth.

Esker – Proposed bid for the company confirmed

By Edison Investment Research

Alongside its H124 results, Esker confirmed that Bridgepoint, in association with General Atlantic and management shareholders, is proposing a cash public tender offer for the company at €262 per share. This represents a 30% premium to the unaffected share price on 8 August. The supervisory board has welcomed the principle of the offer. If the tender offer is successful (ie 60% or more of shares are tendered), the deal is expected to complete in late Q424 or early Q125.

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Sep 26

Daily Brief Industrials: Tokyo Metro, Samsung C&T, Polycab India , Derichebourg SA, SPX Technologies , Elbit Systems and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Tokyo Metro (9023 JP) IPO: The Bear Case
NPS Sues Samsung’s Lee Jae-Yong
Tokyo Metro IPO – The Negatives – Hasn’t Recovered Fully but Div and Debt Have
Polycab India (POLYCAB IN) | Inventory, Demand Environment & Competition
Derichebourg – ESG Report – Lucror Analytics
SPX Corporation – These Are The 4 Biggest Challenges In Its Path!
Elbit Systems Ltd –

Tokyo Metro (9023 JP) IPO: The Bear Case

Tokyo Metro (9023 JP), a mass transit operator, is seeking to raise up to US$2.3 billion. Pricing is on 15 October, and the listing is on 23 October.
In Tokyo Metro (9023 JP) IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
The bear case rests on mid-tier revenue growth, low revenue diversification, the highest leverage among peers and a sizeable post-IPO share overhang.

NPS Sues Samsung’s Lee Jae-Yong

NPS has filed a lawsuit against Samsung Group Chairman Lee Jae-Yong and others involved in the merger of Samsung C&T (028260 KS) and Cheil Industries nearly nine years ago.
NPS is trying to recover damages estimated at up to 675 billion won.
If NPS is able to win in this lawsuit, it could result in other minority shareholders launching their own lawsuits which could further raise concerns on Samsung C&T.

Tokyo Metro IPO – The Negatives – Hasn’t Recovered Fully but Div and Debt Have