Daily Brief Equity Bottom-Up: Tencent (700 HK) Earnings Preview: To Stop Decrease in 4Q22 and to Recover in 2023 and more

• We believe revenue will grow by 2.5% YoY in 4Q22 and 9% in 2023.
• We believe EPS will decrease by 62% YoY in 4Q22 and increase by 16% in 2023.
• We expect the stock has an upside of 42% for yearend 2023. Buy.

• Like all department stores, Iwataya in Fukuoka is keen to grow services for its wealthiest customers. 
• It already has special lounges for high spending customers and has now opened a new, invitation-only lounge for its top 300 clients, many of whom are under 40.
• Capturing more share of the wealth market is the only real hope department stores have to grow.

• Berli Jucker (BJC TB) released a strong set of 4Q2022 numbers reflecting the benefit of increasing tourism numbers in Thailand significantly positively impacting 25 of its stores. 
• The company strategically reduced its B2B business, whilst growing its Don Chai stores quite aggressively. Berli Jucker plans to increase its store numbers further in 2023.
• Berli Jucker‘s packaging supply chain business will see new aluminium can capacity this year in Thailand and should see a 2H2023 growth pick-up. Overall a more positive outlook for 2023.

• I was complaining recently that I couldn’t find any cheap stocks, but I will take that back!
• I got another one, Pagseguro (PAGS). A Brazilian payment processor and online bank and potential compounder. 
• PAGS trades at about 8x through earnings, has been growing quite rapidly and could see explosive short term earnings growth if they can bring down their financing costs.

• The slight dip in FY22 earnings for AviChina Industry & Technology H (2357 HK) is due to product restructuring at Avicopter (600038 CH) and higher impairment/fair value losses.
• It should return to growth track in the next two years, with rise in product demand, recovery in Avicopter, further restructuring and M&As being major drivers. 
• Share price has increased 15.9% YTD but it is just on 9.2x FY23 PER. Its market cap is at 58.5% discount to holdings in its four listed A-share subsidiaries. 

• Chinese solar wafer giant LONGi Green Energy Technology Co. Ltd. will partner with U.S. solar developer Invenergy to build a $600 million, 5-gigawatt solar panel assembly factory in Ohio
• The project will be LONGi’s first entrance into the U.S. manufacturing market.
• What will eventually be the largest crystalline silicon solar panel factory in the U.S. will create 850 jobs, and operations are expected to start by the end of 2023

• Giant Biogene has been added to Hong Kong Stock Connect.There’s also positive sentiment driven by the consumption recovery after China reopens. But the Company is overvalued if compared with peers.
• The subsequent product pipeline progress is relatively slow, with a gap of nearly two years in the middle. So, Giant Biogene’s stock price performance may be relatively weak after 2024.
• Due to various restrictions, the actual market space of collagen in the future may not be as large as expected. This is a point investors need to be aware of.

Oryzon Genomics has announced it has enrolled the first patient in its Phase Ib FRIDA study investigating iadademstat in combination with Astellas’ FDA-approved FLT3 inhibitor gilteritinib to treat FLT3+ relapsed/refractory (r/r) acute myeloid leukaemia (AML) patients. The FRIDA study is central to Oryzon’s overall strategy as management believes the second-line AML setting may represent a potentially quicker route to market for iadademstat, targeting an AML patient population with limited and sub-optimal treatment options. FRIDA will recruit up to 45 patients across 10–15 trial sites in the United States and, in our view, its initiation marks a significant clinical milestone for the company.

• Final funding for Project Dorothy is now secured, with energization scheduled for the first week of April, pending approval from ERCOT. 
• Soluna recently announced $7.5 million in funding from existing project investor Spring Lane Capital (SLC) that will be used to complete the final energization of Dorothy and support corporate expenses.
• SLC’s stake in the 25 MW Dorothy 1A increases to ~85% from 32%, but Soluna retains the right to 50% of 1A’s profits after SLC achieves an 18% IRR hurdle.

• CEO Matt Fisch’s first earnings call announced revenue of $1.1 million in 4Q22, in line with quarterly expectations.
• CFO Bob Brown announced that he is leaving the company effective March 31.
• Fisch said the company is “in the process of developing a strategic plan and timeline that builds on [our] significant achievements made to date.”