In today’s briefing:
- JD Industrials IPO: The Bull Case
- ECM Weekly (28th May 2023) – HK Trip Notes, Rakuten, JD Ind, Horizon Const, Nippon Prologis, MINT
- Fidelity National Information Services Inc.: Is The Recurring Revenue Growth in Banking and Capital Markets Here To Stay? – Key Drivers
- Church & Dwight Co: Capacity Expansion Update & Other Drivers
- Rockwell Automation: The Strategic Partnership with Autonox Robotics Could Be A Game Changer – Key Drivers
- Sirius XM Holdings Inc.: Launch Of Sports-Focused Social Channels & Other Developments
- Snap Inc.: Acquisition Of Th3rd For 3D Scanning Capabilities & Other Drivers
JD Industrials IPO: The Bull Case
- JD Industrials (2231713D CH)/JDI, a leading industrial supply chain technology and service provider in China, has filed for a US$1bn IPO. JD.com Inc (ADR) (JD US) owns a 77.95% stake.
- JDI is the largest industrial supply chain technology and service provider in China in terms of GMV, customer coverage and SKU offerings in 2022, according to CIC.
- The key elements of the bull case rest on large addressable markets, market share gains, robust product revenue growth underpinned by key accounts, improving underlying margin and strong cash generation.
ECM Weekly (28th May 2023) – HK Trip Notes, Rakuten, JD Ind, Horizon Const, Nippon Prologis, MINT
- Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
- In the IPO space, HK market sentiment is likely to be put to test again with the upcoming listing for Growatt Technology.
- The REIT were once again at the front lines this week for placements, while Rakuten (4755 JP) has so far been holding up.
Fidelity National Information Services Inc.: Is The Recurring Revenue Growth in Banking and Capital Markets Here To Stay? – Key Drivers
- Fidelity National Info (FIS) had a successful start to 2023, surpassing Wall Street expectations in terms of revenues as well as earnings.
- FIS experienced significant recurring revenue growth in their banking and capital markets businesses and impressive organic growth in their e-commerce segment.
- We give Fidelity National Information Services a ‘Buy’ rating with a revised target price.
Church & Dwight Co: Capacity Expansion Update & Other Drivers
- Church & Dwight had a particularly robust Q1 as the company reported solid revenue growth of 10.2% and an all-around beat.
- The management exceeded its Q1 outlook with organic sales increasing by 5.7%, driven by more robust performance across multiple brands, including Hero, THERABREATH, ARM & HAMMER laundry, and ARM & HAMMER litter.
- With encouraging signs such as flat volume growth after a series of declines, the company’s team anticipates volume growth throughout the year.
Rockwell Automation: The Strategic Partnership with Autonox Robotics Could Be A Game Changer – Key Drivers
- It was a successful second quarter for Rockwell Automation, as the company outperformed market expectations in terms of both sales and earnings.
- The company’s strong execution, focus on business resiliency, and improved electronic component availability contributed to double-digit sales and margin growth.
- Despite the uncertain economic environment, Rockwell Automation’s differentiated offerings continued to experience robust demand, with organic sales surpassing expectations.
Sirius XM Holdings Inc.: Launch Of Sports-Focused Social Channels & Other Developments
- Sirius XM had a bad quarter and they failed to meet the revenue expectations as well as the earnings expectations of Wall Street.
- Their launch of @SIRIUSXMSPORTS also enhances their social media presence and helps them to remain connected with subscribers and reach new audiences on Instagram.
- We give Sirius XM Holdings a ‘Hold’ rating with a revised target price.
Snap Inc.: Acquisition Of Th3rd For 3D Scanning Capabilities & Other Drivers
- It was a challenging yet promising quarter for Snap as it failed to meet the revenue expectations of Wall Street but surprisingly managed to deliver a positive bottom-line.
- Despite a 7% year-over-year decrease in revenue, the company reached 383 million daily active users in Q1 and showcased the community’s continued growth.
- Snap introduced My AI, an AI-powered chatbot, and unveiled new features at the Snap Partner Summit, emphasizing their commitment to innovation.
💡 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
