In today’s briefing:
- Renesas 1Q25: Cheap Stock That’s Bottoming Out
- Monthly Chinese Tourism Tracker | March and Q125 Demand Growth Weak Vs Trend (April 2025)
- Sumber Alfaria Trijaya (AMRT IJ) – Good Reason for Optimism
- BYD (1211 HK): Rev up by 36% in 1Q25, Scale to Bring 60% Upside
- Ramkrishna Forgings: Inventory Discrepancies Raise Concern Over Governance
- Sage Group Plc: Initiation of Coverage- Network Services and Automation Expansion Can Fuel A Revenue Surge Across Regions!
- Steel Dynamics: An Insight Into Its Shareholder Value & Strategic Capital Allocation!
- Intuitive Surgical: Procedure Growth & Market Expansion to Strengthen Its Market Position!
- NEXT Plc: Initiation of Coverage- Is the Zalando Alliance The Hidden Catalyst for International Growth?
- China Healthcare Weekly (Apr.27)- Flaws Behind BeiGene’s Breakeven, Fosun Increased Stake in Henlius
Renesas 1Q25: Cheap Stock That’s Bottoming Out
- Revenues are still declining by ~teens% YoY but margins shows signs of improvements as end-demand improves and utilization is low.
- Renesas doesn’t have an inventory problem and increasing revenues will lead to higher utilization and higher margins.
- As Renesas is showing signs of a bottom, the stock is very cheap, trading at -2 standard deviations or 11x 2025 EPS, 9x 2026 EPS.
Monthly Chinese Tourism Tracker | March and Q125 Demand Growth Weak Vs Trend (April 2025)
- March demand growth improved vs weak February, but Q125 showed clear slowdown vs trend
- Relatively strong demand growth for outbound travel is no longer lifting airline load factors
- Near-Term, we no longer view Chinese travel as attractive, as stocks appear to lack catalysts
Sumber Alfaria Trijaya (AMRT IJ) – Good Reason for Optimism
- Sumber Alfaria Trijaya booked a slower-than-expected finish to FY2024, with some compression to margins, but mainly due to the temporary impact of investment in the business and higher promotions.
- The company has seen a strong start to FY2025, with SSSG growing at a faster pace than FY2024, with a strong performance over the run-up to Ramadan.
- Alfamart will continues to expand its store network in 2025, with Lawson under AMRT to bring future synergy benefits. Valuations look attractive with a more positive outlook for earnings.
BYD (1211 HK): Rev up by 36% in 1Q25, Scale to Bring 60% Upside
- In 1Q25, BYD’s revenue increased by 36% YoY and sales volume increased by 60% YoY.
- We believe BYD’s scale advantage will help cashflow and the competition in the coming market concentration.
- The P/E band suggests an upside of 59% for the end of 2025.
Ramkrishna Forgings: Inventory Discrepancies Raise Concern Over Governance
- Ramkrishna Forgings (RK Forgings) recently reported discrepancies in its inventory during the annual physical verification for FY 2024.
- The company has engaged independent external agencies to conduct a joint fact-finding study, aiming to maintain transparency and accountability.
- Estimates suggest an adverse impact of 4-5% on the company’s net worth. While the impact on overall inventory is almost 10% of the total inventory, amounting to INR 120 crore
Sage Group Plc: Initiation of Coverage- Network Services and Automation Expansion Can Fuel A Revenue Surge Across Regions!
- Sage Group PLC recently reported a successful year, demonstrating notable growth and a solid financial performance.
- The company’s annual recurring revenue (ARR) increased for the third consecutive year, with a 11% rise to GBP 2.3 billion.
- This growth was balanced between new and existing customers, reflecting effective customer retention strategies and upsell accomplishments.
Steel Dynamics: An Insight Into Its Shareholder Value & Strategic Capital Allocation!
- Steel Dynamics, Inc. delivered a solid performance in the first quarter of 2025, demonstrating the company’s operational and financial stability amidst a challenging market environment.
- The company reported a net income of $217 million or $1.44 per diluted share, supported by adjusted EBITDA of $448 million.
- Total revenue rose to $4.4 billion, showing a 13% increase from the previous quarter, largely due to record steel shipments.
Intuitive Surgical: Procedure Growth & Market Expansion to Strengthen Its Market Position!
- Intuitive Surgical Inc.’s recent earnings reveal a mixed performance with both strengths and challenges.
- Positively, the company reported strong operational outcomes in the first quarter of 2025.
- Da Vinci procedures saw a substantial 17% growth, driven predominantly by robust performances in general surgery across the US and certain international markets, such as India and Korea.
NEXT Plc: Initiation of Coverage- Is the Zalando Alliance The Hidden Catalyst for International Growth?
- NEXT, a prominent UK-based retail company, has reported its latest financial results, demonstrating both strengths and challenges in its operations.
- This summary captures the core aspects of NEXT’s performance, the strategic decisions made, and the roadmap ahead as outlined in their recent earnings call.
- 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.
China Healthcare Weekly (Apr.27)- Flaws Behind BeiGene’s Breakeven, Fosun Increased Stake in Henlius
- The rise of innovative drugs in China is actually in line with the interests of large pharmaceutical companies and MNCs. The only ones get “hurt” are small overseas startups/small biotech.
- BeiGene’s turnaround from losses to profits has entered the countdown.However, investors may not be happy with the net profit margin brought by single revenue driver Brukinsa based on our calculation.
- Fosun has increased its stake in Henlius by acquiring additional shares at HK$24.6/share, bringing its total ownership to 63.43%.This sends positive signals. A falling stock price is a buying opportunity.
💡 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
