In today’s briefing:
- Nickel Asia: Valuation Low On Cyclical Slump But Limited Catalysts
- Apple, Alibaba Join Forces to Bring AI to iPhones in China
- China Healthcare Weekly (Feb.16)-Update on CR Sanjiu’s Acquisition of Tasly, the Impact of US Tariff
- Otsuka Holdings (4578 JP): Soft Guidance for 2025; Reduction of Investment Units
Nickel Asia: Valuation Low On Cyclical Slump But Limited Catalysts
- Nickel Asia is market leader for Philippines nickel ore and will remain a top player with decades of reserves leaving it well-positioned for the country’s move up the value chain
- However, short-term its share price has slumped on continued weakness in nickel, from a global oversupply and weakening demand, but also its removal from the PSEi
- While the 2025E P/B at 0.85x on a 6.4% ROE is likely near cyclical lows and the valuation is inexpensive for such a major player, there are few immediate catalysts
Apple, Alibaba Join Forces to Bring AI to iPhones in China
Apple Inc. has teamed up with e-commerce giant Alibaba Group Holding Ltd. to develop artificial intelligence (AI) features for iPhones in China, sources familiar with the matter told Caixin.
The iPhone maker is intensifying its collaboration with Alibaba on AI large model technology, but it remains unclear whether Apple will work exclusively with a single company, according to three sources.
Apple and Alibaba haven’t replied to Caixin’s inquires.
China Healthcare Weekly (Feb.16)-Update on CR Sanjiu’s Acquisition of Tasly, the Impact of US Tariff
- In our view, China’s biotech companies have sold their core pipelines/products too early, resulting in the loss of opportunities to gain much greater benefits in the future.
- We summarized the impact of tariff policy implemented by the US on China’s healthcare industry. Short-term headwinds are inevitable, but in long term, it helps force the industry to upgrade.
- After Spring Festival, the acquisition progress of Tasly by CR Sanjiu has significantly accelerated – SASAC/SAMR approvals have been received. It’s possible for the deal to be completed in 25Q1.
Otsuka Holdings (4578 JP): Soft Guidance for 2025; Reduction of Investment Units
- For 2025, Otsuka Holdings (4578 JP) is looking for 2% YoY revenue growth to ¥2,380B. However, net profit is expected to decline 20% YoY to ¥275B.
- Even upon a massive impact from LoE of Jinarc/Jynarque, total revenue will grow in 2025. Excluding one-time of impact of the tax adjustments, 2025 net profit guidance implies 6% growth.
- Otsuka intends to reduce buyback to create a more investable environment, encourage individual investors to participate in the market, and revitalize the stock market.
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