In today’s briefing:
- Tokyo Electron. Betting Big On MAGIC Despite The Downturn
- KPIT Tech: Strong Q4FY23 and Upbeat FY24 Guidance
- Kazatomprom (KAP LI): Revelation Of A Silent Uranium Deal
- Krafton: India & Improving Shareholder Return Policy Likely to Lead to Further Outperformance
- China Healthcare Weekly (May.19) – “Hedge Logic” Of CXO, Beijing’s DRG+VBP Policy, Zylox-Tonbridge
Tokyo Electron. Betting Big On MAGIC Despite The Downturn
- Q1’23 revenues of ¥558.2 billion, up 19% sequentially and up 1% YoY
- FY24 outlook down 23% YoY with H2 showing a modest improvement compared to H1
- R&D & CapEx investment increasing significantly while YoY revenue set to decline by 23%
KPIT Tech: Strong Q4FY23 and Upbeat FY24 Guidance
- KPIT reported a strong Q4FY23 with 8.5% QoQ growth in CC (Constant Currency) terms. Q4FY23 EBITDA margin at 19.1% came in higher than 18.5%+ expected.
- Deal TCV came in highest ever helped by a mega deal of INR $250mm. Even excluding the mega deal, the deal TCV was healthy at $173mm vs $150mm+ typically.
- KPIT has guided for an upbeat FY24. FY24 revenue growth is guided to be 27-30% in CC terms. FY24 EBITDA margin is guided at 19-20% vs 18.9% in FY23.
Kazatomprom (KAP LI): Revelation Of A Silent Uranium Deal
- The Kazakh government silently allowed Russia to buy 49% stake in JV Budenovskoye sometime in 2021-H2.
- Kazatomprom owned 51% in the JV, but the deal was not properly disclosed in Kazatomprom reports.
- Many company officials resigned since the deal fearing breach of legal duty on disclosure.
Krafton: India & Improving Shareholder Return Policy Likely to Lead to Further Outperformance
- There is a high likelihood of the Indian authorities fully approving the BGMI game after three months of trial. Plus, it has a solid pipeline of new games under development.
- Krafton is improving its shareholder return policy. In addition, the consensus is likely to raise the company’s earnings estimates post its excellent results in 1Q 2023.
- We maintain our Positive view of Krafton and its shares are likely to continue to outperform the market this year.
China Healthcare Weekly (May.19) – “Hedge Logic” Of CXO, Beijing’s DRG+VBP Policy, Zylox-Tonbridge
- The Beijing Medical Insurance Bureau issued a notice soliciting opinions on the linkage program of DRG payment and VBP policy in the city, involving sports medicine, neuro-intervention, and electrophysiology.
- The basic logic of CXO is that there should be no significant fluctuations with the success or failure of a specific drug, unless this drug significantly increases total medical expenditure.
- Zylox-Tonbridge Medical Technology (2190 HK) achieved high performance growth in 2022, and is a beneficiary of centralized procurement policy at the current stage.However, it still has to face some challenges.
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